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HomeMy WebLinkAboutCA Setting Mello-Roos Special TaxSAN RAFAEL THE CITY WITH A MISSION Agenda Item No: 5.c Meeting Date: June 19, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: CITY ATTORNEY DEPARTMENT OF PUBLIC WORKS Prepared by: Lisa Goldfien, Asst. City Attorney City Manager Approval: TOPIC: SPECIAL TAX ON PROPERTIES AT THE VILLAGE AT LOCH LOMOND MARINA SUBJECT: RESOLUTION SETTING THE MELLO-ROOS SPECIAL TAX FOR FISCAL YEAR 2017-2018 FOR COMMUNITY FACILITIES DISTRICT NO. 2 AT THE VILLAGE AT LOCH LOMOND MARINA RECOMMENDATION: Adopt the attached resolution setting the special tax rates for Fiscal Year 2017-2018 for Community Facilities District No. 2, for maintenance and operation of public facilities at the Village at Loch Lomond Marina. BACKGROUND: In August 2007, the City granted land use and subdivision approvals for the Village at Loch Lomond Marina Development. In approving the project, the City Council imposed a condition of approval requiring the formation of a community facilities district pursuant to the Mello -Roos Community Facilities Act of 1982 (Government Code sections 53311 - 53368.3), as a way to collect funds to assure the long-term maintenance of certain publicly -accessible park and conservation areas within the development. By adoption of Resolution No. 13014 on July 19, 2010, the City Council officially formed the required community facilities district, which includes all the parcels with the Village at Loch Lomond Marina Subdivision, as "City of San Rafael Community Facilities District No. 2" (hereafter "CFD No. 2"). The resolution also approved the levy of an annual special tax on the taxable parcels within the district, in an amount to be determined according to a specified method of calculation, the "Rate and Method of Apportionment of Special Taxes" (hereafter referred to as the "RMA"). A copy of Resolution No. 13014 is included with this staff report as Attachment 2, with the RMA attached as Exhibit B. The RMA explains how to calculate the amount of tax to be levied against each parcel and specifies a maximum tax that may be assessed against each type of parcel, depending upon whether it is a residential lot, a commercial lot, or Marina property. Under the terms of the RMA, no special tax will be charged to any of the below market rate units in the subdivision. FOR CITY CLERK ONLY File No.: 6-55 Council Meeting: 06/19/2017 Disposition: Tabled to 07/17/2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 As required by law, after adoption of Resolution No. 13014, the question whether or not to impose the special tax was submitted to a vote of the "eligible landowners" within the proposed district, and the tax was approved. On August 16, 2010, the City Council adopted Ordinance No. 1886, officially authorizing and levying the special taxes within CFD No. 2. (Attachment 3) A "Notice of Special Tax Lien" was recorded in the Office of the Marin County Recorder, giving notice of the tax assessment to all purchasers of property in the subdivision. (Attachment 4). ANALYSIS: Although the special tax was authorized in 2010, the taxes have not yet been levied on the properties in the district. The approved RMA specified that the tax is not to be levied until the fiscal year in which the subdivision improvements are completed and accepted by the City. The subdivision improvements have not yet been accepted by the City to date; however, a majority of the improvements have been constructed, and staff expects that all or most of the improvements to be maintained by CFD No. 2 will be accepted during fiscal year 2017-2018. Additionally, several of the properties have been sold and are currently occupied, with a significant portion of the remaining properties anticipated to be completed during fiscal year 2017-2018. Therefore, it is appropriate for the City to start to initiate collection of the taxes so that the funds are available for the maintenance activities to be performed by the district. The approved RMA sets forth how the annual special tax levy is to be calculated, based upon an estimate of how much the district will be required to spend during the fiscal year for maintenance, landscaping, utilities, reserve contributions (for eventual capital repairs/replacements) and administration of the district. Staff's consultant, Al Cornwell of CSW/Stuber-Stroeh Engineering Group, has performed the analysis to determine the amount of the proposed FY 2017-2018 taxes. As more fully explained in his May 1, 2017 memo to staff attached hereto as Attachment 5, Mr. Cornwell has calculated that CFD No. 2 will require collection of funds totaling $204,380.94 during FY 2017-2018. Using the method provided for in the RMA, Mr. Cornwell has determined the amount of tax to be imposed on each parcel in the subdivision. The table below shows the maximum amount of special taxes authorized to be levied annually within CFD No. 2, and the amount Mr. Cornwell and staff are proposing should be levied for FY 2017-2018: Parcel type Marina Non-residential (including mixed- use non-residential) Residential (64 Market Rate units) (including mixed-use residential) Residential (17 Below Market units) Maximum Tax $74,216.22 $1.15/sq ft $2,439.22/dwelling unit $0.00/dwelling unit FY 2017-2018 Proposed Tax $59,260.06 $0.92/sq ft=$20,470 total tax $1,947.67/dwelling unit (x 64 units=$124,650.88 total) $0.00/dwelling unit Staff has prepared a resolution for the Council to adopt to impose the required special tax for FY 2017- 2018. Exhibit A to the resolution shows the specific amount of tax to be charged against each Assessor's Parcel. The special taxes will be included on the County property tax bills and collected by the County. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 COMMUNITY OUTREACH: The subdivider presently still owns a majority of the parcels in the subdivision and has been consulted by Mr. Cornwell in the calculation of the special tax rates. There are approximately 25 privately owned residential properties, and Staff is informed that the subdivider has met with members of the homeowners' association to inform them that the special taxes will be charged on the upcoming property tax bills. FISCAL IMPACT: Adoption of the resolution will not result in costs to the City. Imposition of the special tax as recommended will ensure collection of sufficient taxes from the property owners within CFD No. 2 to fund the entire FY 2017-2018 budget for maintenance and operation of the public facilities within the Village at Loch Lomond Marina subdivision. OPTIONS: The City Council has the following options to consider on this matter: 1. Adopt the resolution as presented setting the special tax rates for FY 2017-2018. 2. Adopt the resolution with modifications. 3. Direct staff to return with more information. 4. Take no action. RECOMMENDED ACTION: Adopt the attached Resolution Setting the Mello -Roos Special Tax for City of San Rafael Community Facilities District No. 2 for Fiscal Year 2017-2018 ATTACHMENTS: 1. Resolution Setting the Mello -Roos Special Tax for City of San Rafael Community Facilities District No. 2 for Fiscal Year 2017-2018, with Exhibit A 2. Resolution No. 13014 3. Ordinance No. 1886 4. Notice of Special Tax Lien 5. Memorandum from Al Cornwell dated May 1, 2017 RESOLUTION NO. A RESOLUTION OF THE SAN RAFAEL CITY COUNCIL SETTING THE MELLO-ROOS SPECIAL TAX FOR CITY OF SAN RAFAEL COMMUNITY FACILITIES DISTRICT NO. 2 FOR FISCAL YEAR 2017-2018 WHEREAS, on June 7, 2010 the City Council adopted Resolution No. 12964, entitled "Resolution of the San Rafael City Council of Intention to Form a Community Facilities District and to Authorize the Levy of Special Taxes Pursuant to the Mello -Roos Community Facilities Act of 1982 for Maintenance of Public Park and Recreation Improvements at the Village at Loch Lomond Marina" (the "Resolution of Intention"), stating its intention to form Community Facilities District No. 2 ("CFD No. 2"), pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, on July 19, 2010, the City Council held a noticed public hearing as required by the Act to determine whether to proceed with the formation of CFD No. 2, and the rate and method of apportionment of the special tax to be levied within CFD No. 2 for the financing of the services specified in the Resolution of Intention; and WHEREAS, subsequent to the public hearing, the City Council adopted Resolution No. 13014 entitled "Resolution of the San Rafael City Council for Formation of the City of San Rafael Community Facilities District No. 2, Authorizing the Levy of a Special Tax Within the District, Preliminarily Establishing an Appropriations Limit for the District and Submitting Levy of the Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors of the District" (the "Resolution of Formation") and Resolution No. 13015 entitled "Resolution of the San Rafael City Council Calling a Special Election for the Levy of a Special Tax and the Establishment of an Appropriations Limit for City of San Rafael Community Facilities District No. 2", which resolutions, together, established CFD No. 2, authorized the levy of a special tax within CFD No. 2, called an election within CFD No. 2 on the proposition of levying a special tax, and established an appropriations limit within CFD No. 2; and WHEREAS, an election was held within CFD No. 2 in which the eligible landowner electors unanimously approved said measure; and WHEREAS, on August 16, 2010, the City of San Rafael prepared and caused to be recorded a "Notice of Special Tax Lien" for all of the parcels within CFD No. 2, which specified the facilities and services to be funded by the tax and the approved method for establishing a rate and calculating the apportionment of the tax; and WHEREAS, the City Council wishes to set the specific tax rate to be imposed on the parcels within CFD No. 2 in Fiscal Year 2017-2018; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael does hereby set the amount of the special tax to be imposed on all nonexempt parcels within CFD No. 2 for Fiscal Year 2017-2018, as set forth in Exhibit A attached hereto and incorporated herein by reference. I, ESTHER C. BEIRNE, City Clerk of the City of San Rafael, hereby certify that the foregoing Resolution No. was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 19th day of June, 2017, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 2 ESTHER C. BEIRNE, City Clerk LLM Phase 1 Loch Lomond # Assessor's Map Bk 16 - Pg 07 Mello Roos District Assessment Fiscal Year 2017-2018 Parcel # Assessors Parcel # Assessment LLM 1 - Lot 1 16-070-034 N/A LLM 1 -Lot 2 16-070-014 $11,748.38 LLM 1 - Lot 3 16-070-016 $12,342.87 LLM 1 -Lot 4 16-070-017 $2,221.76 LLM 1 - Lot 5 16-070-009 $59,260.06 LLM 1 -Lot A 16-070-012 $0.00 LLM 1 -Lot B 16-070-010 $0.00 LLM 1 - Lot C 16-070-013 $0.00 LLM 1 -Lot D 16-070-019 $0.00 LLM 1 - Lot E 16-070-015 $0.00 LLM 1 -Lot F 16-070-018 $0.00 LLM 1 - Lot G 16-070-021 $0.00 LLM 1 -Lot H 16-070-022 $0.00 LLM 1 - Lot I 16-070-020 $0.00 Exhibit A \\ .\D-NOV\VAP\4\4116111)\Mello Roos\21117-U4-28 Loch Lomond Mello Roos Mt-, Assessmem Phrase 1 (4.1161.10) LLM Phase 2 Loch Lomond # Assessor's Map Bk 16 - Pg 34 Mello Roos District Assessment Fiscal Year 2017-2018 Parcel # Assessors Parcel # Assessment LLM 2 - Lot 1 16-341-001 $0.00 LLM 2 - Lot 2 16-341-002 $1,947.67 LLM 2 - Lot 3 16-341-003 $0.00 LLM 2 - Lot 4 16-341-004 $0.00 LLM 2 - Lot 5 16-341-005 $1,947.67 LLM 2 - Lot 6 16-341-006 $0.00 LLM 2 - Lot 7 16-341-007 $1,947.67 LLM 2 - Lot 8 16-341-008 $1,947.67 f LLM 2 - Lot 9 16-341-009 $1,947.67 LLM 2 - Lot 10 16-341-010 $1,947.67 LLM 2 - Lot 11 16-341-011 $1,947.67 LLM 2 - Lot 12 16-341-012 $1,947.67 LLM 2 - Lot 13 16-341-013 $1,947.67 LLM 2 - Lot 14 16-341-014 $1,947.67 LLM 2 - Lot 15 16-341-015 $1,947.67 I.LM 2 - Lot 16 16-341-016 $1,947.67 LLM 2 - Lot 17 16-341-017 $1,947.67 LLM 2 - Lot 18 16-341-018 $1,947.67 LLM 2 - Lot 19 16-341-019 $1,947.67 LLM 2 - Lot 20 16-341-020 $1,947.67 LLM 2 - Lot 21 16-341-021 $1,947.67 LLM 2 - Lot 22 16-341-022 $1,947.67 LLM 2 - Lot 23 16-341-023 $1,947.67 LLM 2 - Lot 24 16-341-024 $1,947.67 1 LLM 2 - Lot 25 16-341-025 $1,947.67 LLM 2 - Lot 26 16-341-026 $1,947.67 LLM 2 - Lot 27 16-341-027 $1,947.67 LLM 2 - Lot 28 16-341-028 $1,947.67 LLM 2 - Lot 29 16-341-029 $1,947.67 LLM 2 - Lot 30 16-341-030 $1,947.67 LLM 2 - Lot 31 16-341-031 $1,947.67 LLM 2 - Lot 32 16-341-032 $1,947.67 LLM 2 -Lot 33 16-341-033 $1,947.67 LLM 2 - Lot 34 16-341-,034 $1,947.67 LLM 2 - Lot 35 16-341-035 $1,947.67 LLM 2 - Lot 36 16-341-036 $0.00 LLM 2 - Lot 37 16-341-037 $1,947.67 LLM 2 - Lot 38 16-341-038 $0.00 LLM 2 - Lot 39 16-341-039 $1,947.67 LLM 2 - Lot 40 16-341-040 $1,947.67 LLM 2 - Lot 41 16-341-041 $0.00 LLM 2 - Lot 42 16-341-042 $1,947.67 W:\AD-NOV\WP \4\4116110\Melo Roos\201?-04-28 Loch Lomond Mello Roos District Assessment Phase 2 (4.1161.10) LLM Phase 2 Loch Lomond # Assessor's Map Bk 16 - Pg 34 Mello Roos District Assessment Fiscal Year 2017-2018 Parcel # Assessors Parcel # Assessment LLM 2 - Lot 43 16-341-043 $0.00 LLM 2 - Lot 44 16-341-044 $1,947.67 LLM 2 - Lot 45 16-341-045 $1,947.67 LLM 2 - Lot 46 16-341-046 $0.00 LLM 2 - Lot 47 16-341-047 $1,947.67 LLM 2 - Lot 48 16-341-048 $0.00 LLM 2 - Lot 49 16-341-049 $1,947.67 LLM 2 - Lot 50 16-341-050 $1,947.67 LLM 2 - Lot 51 16-341-051 $0.00 LLM 2 - Lot 52 16-341-052 $1,947.67 LLM 2 - Lot 53 16-341-053 $1,947.67 LLM 2 - Lot 54 16-341-054 $1,947.67 LLM 2 - Lot 55 16-341-055 $1,947.67 LLM 2 - Lot 56 16-341-056 $1,947.67 LLM 2 - Lot 57 16-341-057 $0.00 LLM 2 - Lot 58 16-341-058 $1,947.67 ` LLM 2 - Lot 59 16-341-059 $1,947.67 LLM 2 - Lot 60 16-341-060 $0.00 LLM 2 - Lot 61 16-341-061 $1,947.67 LLM 2 - Lot 62 16-341-062 $1,947.67 LLM 2 - Lot 63 16-341-063 $1,947.67 LLM 2 - Lot 64 16-341-064 $1,947.67 LLM 2 - Lot 65 16-341-065 $1,947.67 LLM 2 - Lot 66 16-341-066 $1,947.67 LLM 2 - Lot 67 16-341-067 $1,947.67 LLM 2 - Lot 68 16-341-068 $0.00 LLM 2 - Lot 69 16-341-069 $1,947.67 LLM 2 - Lot 70 16-341-070 $1,947.67 LLM 2 - Lot 71 16-341-071 $1,947.67 LLM 2 - Lot 72 16-341-072 $1,947.67 LLM 2 - Lot 73 16-341-073 $1,947.67 LLM 2 - Lot 74 16-341-074 $1,947.67 LLM 2 - Lot 75 16-341-075 $0.00 LLM 2 - Lot 76 16-341-076 $1,947.67 LLM 2 - Lot K 16-341-077 $0.00 LLM 2 - Lot L 16-341-078 $0.00 LLM 2 - Lot M 16-341-079 $0.00 LLM 2 - Lot D 16-341-080 $0.00 LLM 2 - Lot N 16-341-081 $0.00 LLM 2 - Lot E 16-341-082 $0.00 LLM 2 - Lot O 16-341-083 $0.00 LLM 2 - Lot F 16-341-084 $0.00 W:\AD-NOV\WP\4\4116110\Melt Roos\2017-04-28 Loch Lomond Mello Roos District Assessment Phase 2 (4.1161.10) LLM Phase 2 Loch Lomond # Assessor's Map Bk 16 - Pg 34 Mello Roos District Assessment Fiscal Year 2017-2018 Parcel # Assessors Parcel # Assessment Ij LLM 2 - Lot P 16-341-085 $0.00 LLM 2 - Lot H 16-341-086 $0.00 LLM 2 - Lot A 16-341-087 $0.00 LLM 2 - Lot I 16-341-088 $0.00 LLM 2 - Lot B 16-341-089 $0.00 LLM 2 - Lot J 16-341-090 $0.00 LLM 2 - Lot C 16-341-091 $0.00 \G':\AD.LNOV\WP\4\4116110\Nlello Roos\2017-04-28 Loch Lomond Mello Roos District Assessment Phase 2 (4.1161.10) RESOLUTION NO. 13014 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL FOR FORMATION OF THE CITY OF SAN RAFAEL COMMUNITY FACILITIES DISTRICT NO. 2, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT, PRELIMINARILY ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT, AND SUBMITTING LEVY OF THE SPECIAL TAX AND THE ESTABLISHMENT OF THE APPROPRIATIONS LIMIT TO THE QUALIFIED ELECTORS OF THE DISTRICT (City of San Rafael Community Facilities District No. 2) WHEREAS, on June 7, 2010 the City Council adopted Resolution No. 12964, entitled Resolution of the San Rafael City Council of Intention to Form a Community Facilities District and to Authorize the Levy of Special Taxes Pursuant to the Mello -Roos Community Facilities Act of 1982 for Maintenance of Public Park and Recreation Improvements at the Village at Loch Lomond Marina (the "Resolution of Intention"), stating its intention to form Community Facilities District No. 2 ("CFD No. 2"), pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of CFD No. 2 and stating the services to be financed, and the rate and method of apportionment of the special tax to be levied within CFD No. 2 to pay the costs, is on file with the City Clerk, and the provisions thereof are incorporated herein by this reference as if fully set forth; and WHEREAS, on July 19, 2010 the Council held a public hearing regarding the formation of CFD No. 2; and WHEREAS, at that hearing all interested persons desiring to be heard on all matters pertaining to the formation and extent of CFD No. 2, the services to be provided therein, and the levy of a special tax, were heard and a full and fair hearing was held; and WHEREAS, at that hearing evidence was presented to the Council on the matters before it, including a "Community Services District Report for the City of San Rafael Community Facilities District No. 2", submitted by the Director of Public Works, describing the services to be provided through the District and the costs thereof, a copy of which report is on file with the City Clerk, and the Council at the conclusion of said hearing was fully advised with respect to the basis of the costs to be borne by CFD No. 2; and WHEREAS, written protests with respect to the formation of CFD No. 2, the furnishing of specified types of services, and the rate and method of apportionment of the special taxes have not been filed with the City by fifty percent (50%) or more of the registered voters residing within the territory of the CFD No. 2 or by property owners of one-half (1;/2) or more of the area of land within the CFD No. 2 and not exempt from the special tax, and WHEREAS, the special tax proposed to be levied in CFD No. 2 to pay for the proposed services to be provided therein, as set forth in Exhibit B to the Resolution of Intention, has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the CFD No. 2 or by the owners of one-half (1/2) or more of the area of land within the CFD No. 2 and not exempt from the special tax. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael as follows: The foregoing recitals are true and correct. 2. The Council hereby accepts the "Community Services District Report for the City of San Rafael Community Facilities District No. 2" submitted by the Director of Public Works. 3. The proposed special tax to be levied within CFD No. 2 has not been precluded by majority protest pursuant to Section 53324 of the Act. 4. All prior proceedings taken by the Council in connection with the establishment of CFD No. 2 and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act. 5. The community facilities district designated "City of San Rafael Community Facilities District No. 2" is hereby established pursuant to the Act. 6. The boundaries of the District, as set forth in the map of CFD No. 2 heretofore recorded in the Marin County Recorder's Office in Book and Page AD 2010-99 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD No. 2. 7. The type of public services proposed to be financed by CFD No. 2 and pursuant to the Act (the "Services") shall consist of those items described in the Resolution of Intention and by this reference incorporated herein. 8. Except to the extent that funds are otherwise available to CFD No. 2 to pay for the Services, a special tax sufficient to pay the costs thereof, secured by a continuing lien against all non-exempt real property in the CFD No. 2, will be levied annually within the CFD No. 2, and collected in the same manner as ordinary ad valorem property taxes (or, with respect to any levy on a leasehold or possessory interest, on the County unsecured roll), or in such other manner as the City Council may direct. The proposed rate and method of apportionment of the special tax among the parcels of real property within the CFD No. 2, in sufficient detail to allow each landowner within the proposed CFD No. 2 to estimate the probable maximum amount such owner will have to pay, are described in Exhibit B attached to the Resolution of Intention and by this reference incorporated herein. 9. It is hereby found and determined that the Services are necessary to meet increased demands as the result of development occurring in CFD No. 2 19 10. The Public Works Director of the City of San Rafael, 111 Morphew Street, San Rafael, California 94901, Telephone No. (415) 485-3355, is the officer responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and who will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act. 11. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the CFD No. 2 and this lien shall continue in force and effect until canceled. 12. In accordance with section 53325.7 of the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, of the CFD No. 2 is hereby preliminarily established at $5,000,000 and said appropriations limits shall be submitted to the voters of CFD No. 2 as hereafter provided. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of Section 53325.7 of the Act. 13. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of CFD No. 2 at an election, the time, place and conditions of which shall be as specified by a separate resolution of the Council. 1, ESTHER C. BEIRNE, City Clerk of the City of San Rafael, hereby certify that the foregoing Resolution No, 13014 was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 19th day of July, 2010, by the following vote, to wit: AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Levine & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ESTHER C. BEIRNE, City Clerk CLERK'S CERTIFICATE I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, and Ex -Officio Clerk of the Council of said City, do hereby certify that the foregoing Charter Ordinance No. 1886 entitled: AN ORDINANCE OF THE CITY OF SAN RAFAEL LEVYING SPECIALTAXES WITHIN SAN RAFAEL COMMUNITY FACILITIES DISTRICT NO. 2 is a true and correct copy of an Ordinance of said City and was introduced at a REGULAR meeting of the City Council of the City of San Rafael, held on the 2nd day of August, 2010, was published as required by City Charter in the MARIN INDEPENDENT JOURNAL, a newspaper published in the City of San Rafael, and passed and adopted as an Ordinance of said City at a REGULAR meeting of the City Council of said City, held on the 16`h day of August, 2010 by the following vote, to wit: AYES COUNCILMEMBERS: Brockbank, Connolly, Heller, Levine & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None WITNESS my hand and the official seal of the City of San Rafael this 18`h day of August, 2010 �s� �'• &,.,A.o(Seal) ESTHER C. BEIRNE City Clerk ORDINANCE NO. 1886 AN ORDINANCE OF THE CITY OF SAN RAFAEL LEVYING SPECIAL TAXES WITHIN SAN RAFAEL COMMUNITY FACILITIES DISTRICT NO. 2 THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. Findings. 1. On June 7, 2010, the City Council adopted Resolution 12964 entitled "Resolution of the San Rafael City Council of Intention to Form a Community Facilities District and to Authorize the Levy of Special Taxes Pursuant to the Mello -Roos Community Facilities Act of 1982 for Maintenance of Public Park and Recreation Improvements at the Village at Loch Lomond Marina" (the "Resolution of Intention"), stating its intention to establish the City of San Rafael Community Facilities District No. 2 ("CFD No. 2") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act"), to finance certain services. A copy of the Resolution of Intention is hereby incorporated by reference. 2. Notice was published as required by the Act relative to the intention of this Council to form CFD No. 2 and to provide for the financing of the services specified in the Resolution of Intention (the "Services"). 3. On July 19, 2010, the City Council held a noticed public hearing as required by the Act relative to the determination to proceed with the formation of CFD No. 2 and the rate and method of apportionment of the special tax to be levied within CFD No. 2 to finance a portion of the costs of the Services. 4. At said hearing all persons desiring to be heard on all matters pertaining to the formation of CFD No. 2 and the levy of said special taxes were heard, substantial evidence was presented and considered by the City Council and a full and fair hearing was held. 5. Subsequent to said hearing, this Council adopted Resolution No. 13014 entitled "Resolution of the San Rafael City Council for Formation of the City of San Rafael Community Facilities District No. 2, Authorizing the Levy of a Special Tax Within the District, Preliminarily Establishing an Appropriations Limit for the District and Submitting Levy of the Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors of the District" (the "Resolution of Formation") and Resolution No. 13015 entitled "Resolution of the San Rafael City Council Calling a Special Election for the Levy of a Special Tax and the Establishment of an Appropriations Limit for City of San Rafael Community Facilities District No. 2", which resolutions established CFD No. 2, authorized the levy of a special tax within CFD No. 2, and called an election within CFD No. 2, on the propositions of levying a special tax, and establishing an appropriations limit within CFD No. 2, respectively. 6. An election was held within CFD No. 2 in which the eligible landowner electors unanimously approved said measure. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 2. 1. By the passage of this Ordinance, the City Council hereby authorizes and levies special taxes within CFD No. 2 pursuant to California Government Code Sections 53328 and 53340, at the rate and in accordance with the formula set forth in Exhibit A attached hereto and incorporated herein (the "Rate and Method of Apportionment of Special Taxes"), which exhibit was also attached as an exhibit to the Resolution of Intention and incorporated by reference into the Resolution of Formation. The special taxes are hereby levied commencing in fiscal year 2011-2012 and in each fiscal year thereafter to provide the Services and all costs of administering the CFD No. 2. 2. The Public Works Director is hereby authorized and directed each fiscal year to implement the special tax rate and determine the amount to be levied for the next ensuing fiscal year for each parcel of taxable property within CFD No. 2, in the manner and as provided in the Rate and Method of Apportionment of Special Taxes. 3. Properties or entities of the State or local governments shall be exempt from any levy of the special taxes to the extent set forth in the Rate and Method of Apportionment of Special Taxes; provided that, pursuant to Section 53340.1 of the Act and the Resolution of Formation, the special taxes shall be levied on any leasehold or possessory interests of nonexempt persons or entities in such properties. In no event shall the special taxes be levied on any parcel within the CFD No. 2 in excess of the maximum tax specified in the Rate and Method of Apportionment of Special Taxes. 4. All of the collections of the special tax shall be used as provided for in the Act and in the Resolution of Formation including, but not limited to, the payment of the costs of the City in administering CFD No. 2, the payment of the costs of the Services and the costs of collecting and administering the special tax. 5. The special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided that any levies on leasehold or possessory interests shall be made on the unsecured County roll. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. The Finance Director is hereby authorized and directed to provide all necessary information to the appropriate officials of the County of Marin ("County") in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured (or unsecured, as applicable) real property tax roll of the County for fiscal year 2011- 2012 and for each fiscal year thereafter. 2 Notwithstanding the foregoing, the Finance Director may collect the special taxes by means of district billing of the owners of land or interests therein subject to the levy of the special tax if the Finance Director, in her or his sole discretion, determines that said method of collection will be more efficient and/or better serve the financial needs of the City and CFD No. 2. If any special taxes are collected by means of direct billing of the owners of land or interests therein, any such special taxes shall be delinquent if not paid when due as stated in such billing. 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within CFD No. 2, by a Court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within CFD No. 2 shall not be affected. DIVISION 3: This Ordinance shall be published once in full before its final passage in a newspaper of general circulation, published, and circulated in the City of San Rafael, and shall be in full force and effect thirty (30) days after its final passage. ALBERT J. RO, Mayor ATTEST: ESTHER BEIRNE, City Clerk The foregoing Ordinance No. 1886 was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the 2 d day of August, 2010 and ordered passed to print by the following vote, to wit: AYES: Councilmembers: Brockbank, Connolly, Heller, Levine & Mayor Boro NOES: Councilmembers: None ABSENT: Councilmembers: None and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the 16th day of August, 2010. ESTHER BEIRNE, City Clerk 3 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES City of San Rafael Community Facilities District No. 2 (Park and Recreation Area Maintenance) I. INTRODUCTION A special tax authorized under the Mello -Roos Community Facilities Act of 1982, as amended ("Act") shall be levied on each Parcel of land within Community Facilities District No. 2 of the City of San Rafael ("CFD No. 2 "), and collected according to the Special Tax Liability determined by the City, the City of San Rafael ("City"), through the application of the following procedures. The Special Tax is being levied for the purpose of providing and guaranteeing long-term funding and maintenance of park and recreation improvements that are approved for public use, and an adjacent conservation area (seasonal wetland) as more particularly described in the Approval Resolution, as well as appurtenant roadways, sidewalk and landscaping areas. All of the property within CFD No. 2, unless otherwise exempted by law or the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below. It is intended that all special taxes applicable to Parcels be collected in the same manner and at the saine time as ordinary ad valorem property taxes, and that special taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes. II. DEFINITIONS Act means the Mello -Roos Community Facilities Act of 1982, as amended, Sections 53311 et seq. of the California Government Code. Approval Resolution means Resolution No. 12332, adopted on August 6, 2007 by the City Council of the City of San Rafael. Area of Use means the area falling within a single tax category of a Parcel devoted to multiple uses. Base Year means the Fiscal Year commencing July 1, 2011 BMR Unit means a Dwelling Unit that is classified as "low or moderate income housing" pursuant to that certain agreement among San Rafael Marina, LLC, the City of San Rafael, and the Housing Authority of the County of Marin, dated July 1, 2008 and recorded as document 2008-0038363 in the Official Records of the County of Marin on August 14, 2008. Building Floor Area means a measurement of the area contained within the perimeter of each non-residential structure on a given Parcel, which can be or has been developed on that Parcel based on a building permit. If a building permit is not available, the amount shall be based on the Master Use Permit, or other planning approval. This figure shall be determined in accordance with the standard practice of the City in calculating structural parameters. The figure includes the square footage of each floor of any multi -floor building. CFD No. 2 means the Community Facilities District No. 2 of the City of San Rafael. City means the City of San Rafael. Dwelling Unit means each separate building, or housing unit within a common building, used to provide living accommodations which are intended, designed or legally required to be occupied by a single family unit. For Parcels which have not yet been subdivided into the number of lots shown on the Tentative Map, the number of Dwelling Units shall be the number of lots shown on the Tentative Map within the limits of that Parcel. BMR Units do not count as Dwelling Units. For Parcels with mixed uses, the number of Dwelling Units shall be the number of residential units allowed under the Master Use Permit, not counting any BMR Units. Fiscal Year means the period starting on July 1, and ending the following June 30. Master Use Permit means that certain Master Use Permit as approved by the City Council of the City of San Rafael by means of Resolution No. 12332, adopted on August 6, 2007. Maximum Special Tax means the greatest amount of Special Tax that can be levied against a Parcel in any Fiscal Year. The Maximum Special Tax for each Category of Taxable Property is established in Section III. Parcel means any County Assessor's Parcel or that portion thereof that is within the boundaries of CFD No. 2 based on the equalized tax rolls of the County as of March 1 of each Fiscal Year. Parcels referred to by a specific number indicate the parcels shown on the Tentative Map. Service Annual Cost(s) means for each Fiscal Year, the total of 1) the estimated cost of providing and guaranteeing long -terns finding and maintenance of park and recreation 2 improvements that are approved for public use and an adjacent conservation area (seasonal wetland) as more particularly described in Vesting Tentative Map Condition No. 45 in the Approval Resolution (the "Improvements"); 2) the estimate costs of providing additional landscaping and maintenance costs; and 3) any amounts needed to cure actual or estimated delinquencies in Special Taxes for the current or previous Fiscal Year. Special Tax Escalation Factor means the annual percentage increase in the Consumer Price Index for the San Francisco -Oakland -San Jose area as published in "Consumer Price Indexes - Pacific Cities and U.S. City Average" from the U.S. Department of Labor, Bureau of Labor Statistics or, in the event such index ceases to be published, by a comparable index designated by the City Council. Tax Categories are those categories set forth in the body hereof. Taxable Property means Parcels that are not in public ownership, but excludes privately -held Parcels used solely for vehicular and pedestrian access, utilities, or as common areas. Such areas include Parcels A through W, inclusive, as shown on the Tentative Map. However, Taxable Properties that are acquired by a public agency after the CFD is formed or subsequent Final Subdivision Maps are recorded will remain subject to the applicable Special Tax. Tentative Map means that certain tentative map as approved by the City Council of the City of San Rafael by means of Resolution No. 12332, adopted on August 6, 2007. III. CATEGORIES OF SPECIAL TAX AND DESIGNATION OF MAXIMUM SPECIAL TAX A. RESIDENTIAL CATEGORY: The Residential Category includes each Parcel of developed Taxable Property within CFD No. 2 that is zoned or permitted to be used for residential purposes. This consists of Parcels 1 through 76, inclusive, as well as the second floor residential use permitted on Parcel 78, all as shown on the Tentative Map. The Maximum Special Tax that may be levied annually on Taxable Property within the Residential Category during the Base Year is $2,439.22 per Dwelling Unit. B. MARINA CATEGORY: The Marina includes that Parcel of Taxable Property within CFD No. 2 that is designated as Parcels 80 and 82 on the Tentative Map. The Maximum Special Tax that may be levied annually on Taxable Property within the Marina Category during the Base Year is $74,216.22. In the event that Parcel 80 is subdivided, the Maximum Special Tax shall be allocated to the subdivided Parcels in proportion to the number of marina slips contained in each subdivided Parcel within the Marina Category. In the event that Parcel 82 is subdivided from the other property within the Marina Category, it shall be taxed on the same rate 3 and basis (per square foot) as property within the Non -Residential Category and the Maximum Special Tax for the remainder of the Marina Category shall be the amount calculated above, less the tax for Parcel 82. C. NON-RESIDENTIAL CATEGORY: The Non -Residential Category includes each Parcel of developed Taxable Property within CFD No. 2 which has been zoned or is pernlitted to be used for non-residential uses (including office, retail, industrial and other commercial uses) but not property within the Marina Category. These Parcels consist of Parcels 79, and 81 shown on the Tentative Map, as well as the portions of Lot 78 devoted to Non -Residential Uses. The Maximum Special Tax that may be levied annually on Taxable Property within the Non - Residential Category during the Base Year is $1.15 per square foot of Building Floor Area. D. MIXED USE CATEGORY: Parcels within CFD No. 2 which are zoned or permitted to be used for uses which fall in more than one of the above Categories shall be taxed for each category of use. The calculation of the Maximum Special Tax shall be performed separately for each Area of Use. For example, the Special Tax Liability for a Parcel featuring two Dwelling Units and 10,000 square feet of Non -Residential Use shall be the sum of the Special Tax for the two Dwelling Units at the rate applied to all Dwelling Units in the CFD and for the Non -Residential tax rate per square foot times 10,000. The Maximum Special Tax for Parcels in the Mixed Use Category shall be calculated accordingly. E. ADJUSTMENTS TO MAXIMUM SPECIAL TAX: The Maximum Special Tax for all Categories shall increase each Fiscal Year as determined annually by the City Council by the Consumer Price Index for the San Francisco -Oakland -San Jose area, All Urban Consumers/All Items, as published by the U.S. Department of Labor, Bureau of Labor Statistics, or, in the event such index ceases to be published, by a comparable index designated by the City Council. IV. SETTING THE ANNUAL SPECIAL TAX LIABILITY FOR TAXABLE PROPERTIES On or about July 1 of each year, but in any event in sufficient time to include the levy of the special taxes on the County's secured tax roll, the City shall determine the Category or Categories representing each Parcel of land within CFD No. 2. Parcels subject to levy and their respective Tax Category shall be determined based upon the records of the County Assessor as of the March 1 preceding such July. For each Fiscal Year, the City shall determine the Special Tax Liability for each Parcel for the Fiscal Year. The City shall make available for review by the general public information regarding the Category to which each Parcel is assigned and the inforniation used to calculate the Special Tax Liability for each Parcel. 4 Attachment 1 shows the Base Year Maximum Special Tax rates. Each Fiscal Year following the Base Year, the Maximum Special Tax rates shall be increased in accordance with the Special Tax Escalation Factor. To determine the Maximum Special Tax in each Fiscal Year, multiply the number of Dwelling Units for each residential Parcel or the number of square feet of Building Floor Area for each non-residential Parcel times the applicable Maximum Special Tax rates shown in Attachment 1 as adjusted by the Special Tax Escalation Factor. For the Mixed Use Category, take the sum of those two products. The City shall calculate the Special Tax Liability for each Taxable Property for each fiscal year as follows: A. STEP ONE: Determine if the Improvements have been inspected and accepted by the City. If not, the Special Tax Liability shall be zero for that fiscal year. B. STEP TWO: Compute the Service Annual Costs. C. STEP THREE: Calculate the Special Tax Liability for each Parcel of Taxable Property by the following steps: Step 1: Compute the potential Maximum Special Tax revenue for all Parcels in the CFD by summing the Maximum Special Tax assigned to each Parcel for that Fiscal Year. Step 2: Compare the Service Annual Costs with the potential Maximum Special Tax revenue calculated in the previous step. Step 3: If the Service Annual Costs are less than the Maximum Special Tax revenue from Step 1, decrease proportionately the Maximum Special Tax amount for each Parcel until the total Special Tax revenue equals the Service Annual Cost. These amounts will be that year's Special Tax Liability for each Parcel. Step 4: If the Service Annual Costs are greater than or equal to the potential Maximum Special Tax revenue calculated in Step 1, the amount of the Special Tax Liability for each Taxable Property shall be the Maximum Special Tax assigned to each Parcel in II above. D. STEP FOUR: After the Special Tax Liability for each Parcel has been calculated, consult Section V of this Rate and Method in order to prepare the Tax Collection Schedule. V. PREPARATION OF TAX COLLECTION SCHEDULE Prepare the Tax Collection Schedule listing the Special Tax Liability for each Parcel of Taxable Property and send it to the County Auditor, requesting that it be placed on the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule shall not be sent later than the date required by the Auditor for such inclusion. The City shall make every effort to correctly calculate the Special Tax Liability for each Parcel. It shall be the burden of the taxpayer to correct any errors in the determination of the Parcels subject to the tax and the Special Tax Liability assigned to them. The City will maintain a file available for public inspection of each current County Assessor's Parcel Number within the CFD, its Maximum Special Tax, and the Maximum Special Tax for all Parcels within the CFD. Gr4f- 20 1 0-00�'34 338 Recorded RECORDING REQUESTED BY AND Official Records WHEN RECORDED RETURN TO: County of Marin JOAN C. THAYER Assessor -Recorder CITY CLERK CITY OF SAN RAFAEL 12:110 16 -Aug -2010 City Hall, Room 209 1400 Fifth Avenue San Rafael, CA 94901 [SPACE ABOVE THIS LINE FOR RECORDER'S USE] This instrument is exempt from recording fees (Gov't Code §27383) Ri C rEE 0� 00 a Page 1 of 9 APNs: 016-070-020; 016-070-030; 016-070-040; 016-070-050; and 016-070-060 NOTICE OF SPECIAL TAX LIEN Pursuant to the requirements of Section 3114.5 of the Streets and Highways Code and Section 53328.3 of the Government Code, the undersigned clerk of the legislative body of the City of San Rafael, State of California, hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City of San Rafael, County of Marin, State of California. The special tax secured by this lien is authorized to be levied for the purpose of maintaining public recreation facilities and common access roadways, sidewalks, lighting and landscaping. The special tax is authorized to be levied within Community Facilities District No. 2 that has now been officially formed and the lien of the special tax is a continuing lien that shall secure each annual levy of the special tax and that shall continue in force and effect until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. The rate, method of apportionment, and manner of collection of the authorized special tax is as described in Exhibit A, attached hereto and incorporated herein by this reference. There are no provisions for the obligation to pay the special tax to be prepaid and permanently satisfied and the lien of the special tax canceled. Notice is further given that upon the recording of this notice in the office of the county recorder, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within Community Facilities District No. 2 in accordance with Section 3115.5 of the Streets and Highways Code. The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within this community facilities district, as shown on the 2009-2010 Assessment Roll, County of Marin, and not exempt from the special tax are as follows: 016-070-020 San Rafael Marina, LLC 016-070-030 San Rafael Marina, LLC 016-070-040 San Rafael Marina, LLC 016-070-050 San Rafael Marina, LLC 016-070-060 San Rafael Marina, LLC - 1 - Reference is made to the boundary map (or the amended boundary, map) of the community facilities district recorded at Book and Page AD 2010-99, Maps of Assessment and Communities Facilities Districts, in the office of the County Recorder for the County of Marin, State of California which map is now the final boundary map of the community facilities district. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Public Works Department, City of San Rafael, City Hall, 1400 Fifth Avenue, San Rafael, CA 94901, telephone number (415) 485-3355. Date: 4 U&O S'T /3J -zc t c, ESTHER C. BEIRNE, City Clerk -2- EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES City of San Rafael Community Facilities District No. 2 (Park and Recreation Area Maintenance) I. INTRODUCTION A special tax authorized under the Mello -Roos Community Facilities Act of 1982, as amended ("Act") shall be levied on each Parcel of land within Community Facilities District No. 2 of the City of San Rafael ("CFD No. 2 "), and collected according to the Special Tax Liability determined by the City, the City of San Rafael ("City"), through the application of the following procedures. The Special Tax is being levied for the purpose of providing and guaranteeing long-term funding and maintenance of park and recreation improvements that are approved for public use, and an adjacent conservation area (seasonal wetland) as more particularly described in the Approval Resolution, as well as appurtenant roadways, sidewalk and landscaping areas. All of the property within CFD No. 2, unless otherwise exempted by law or the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below. It is intended that all special taxes applicable to Parcels be collected in the same manner and at the same time as ordinary ad valorem property taxes, and that special taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes. H. DEFINITIONS Act means the Mello -Roos Community Facilities Act of 1982, as amended, Sections 53311 et seq. of the California Government Code. Approval Resolution means Resolution No. 12332, adopted on August 6, 2007 by the City Council of the City of San Rafael. Area of Use means the area falling within a single tax category of a Parcel devoted to multiple uses. Base Year means the Fiscal Year commencing July 1, 2011 - 1 - BMR Unit means a Dwelling Unit that is classified as "low or moderate income housing" pursuant to that certain agreement among San Rafael Marina, LLC, the City of San Rafael, and the Housing Authority of the County of Marin, dated July 1, 2008 and recorded as document 2008-0038363 in the Official Records of the County of Marin on August 14, 2008. Building Floor Area means a measurement of the area contained within the perimeter of each non-residential structure on a given Parcel, which can be or has been developed on that Parcel based on a building permit. If a building permit is not available, the amount shall be based on the Master Use Permit, or other planning approval. This figure shall be determined in accordance with the standard practice of the City in calculating structural parameters. The figure includes the square footage of each floor of any multi -floor building. CFD No. 2 means the Community Facilities District No. 2 of the City of San Rafael. City means the City of San Rafael. Dwelling Unit means each separate building, or housing unit within a common building, used to provide living accommodations which are intended, designed or legally required to be occupied by a single family unit. For Parcels which have not yet been subdivided into the number of lots shown on the Tentative Map, the number of Dwelling Units shall be the number of lots shown on the Tentative Map within the limits of that Parcel. BMR Units do not count as Dwelling Units. For Parcels with mixed uses, the number of Dwelling Units shall be the number of residential units allowed under the Master Use Permit, not counting any BMR Units. Fiscal Year means the period starting on July 1, and ending the following June 30. Master Use Permit means that certain Master Use Permit as approved by the City Council of the City of San Rafael by means of Resolution No. 12332, adopted on August 6, 2007. Maximum Special Tax means the greatest amount of Special Tax that can be levied against a Parcel in any Fiscal Year. The Maximum Special Tax for each Category of Taxable Property is established in Section III. Parcel means any County Assessor's Parcel or that portion thereof that is within the boundaries of CFD No. 2 based on the equalized tax rolls of the County as of March 1 of each Fiscal Year. Parcels referred to by a specific number indicate the parcels shown on the Tentative Map. Service Annual Cost(s) means for each Fiscal Year, the total of 1) the estimated cost of providing and guaranteeing long-term funding and maintenance of park and recreation 2 improvements that are approved for public use and an adjacent conservation area (seasonal wetland) as more particularly described in Vesting Tentative Map Condition No. 45 in the Approval Resolution (the "Improvements"); 2) the estimate costs of providing additional landscaping and maintenance costs; and 3) any amounts needed to cure actual or estimated delinquencies in Special Taxes for the current or previous Fiscal Year. Special Tax Escalation Factor means the annual percentage increase in the Consumer Price Index for the San Francisco -Oakland -San Jose area as published in "Consumer Price Indexes - Pacific Cities and U.S. City Average" from the U.S. Department of Labor, Bureau of Labor Statistics or, in the event such index ceases to be published, by a comparable index designated by the City Council. Tax Categories are those categories set forth in the body hereof. Taxable Property means Parcels that are not in public ownership, but excludes privately -held Parcels used solely for vehicular and pedestrian access, utilities, or as common areas. Such areas include Parcels A through W, inclusive, as shown on the Tentative Map. However, Taxable Properties that are acquired by a public agency after the CFD is formed or subsequent Final Subdivision Maps are recorded will remain subject to the applicable Special Tax. Tentative Map means that certain tentative map as approved by the City Council of the City of San Rafael by means of Resolution No. 12332, adopted on August 6, 2007. III. CATEGORIES OF SPECIAL TAX AND DESIGNATION OF MAXIMUM SPECIAL TAX A. RESIDENTIAL CATEGORY: The Residential Category includes each Parcel of developed Taxable Property within CFD No. 2 that is zoned or permitted to be used for residential purposes. This consists of Parcels I through 76, inclusive, as well as the second floor residential use permitted on Parcel 78, all as shown on the Tentative Map. The Maximum Special Tax that may be levied annually on Taxable Property within the Residential Category during the Base Year is $2,439.22 per Dwelling Unit. B. MARINA CATEGORY: The Marina includes that Parcel of Taxable Property within CFD No. 2 that is designated as Parcels 80 and 82 on the Tentative Map. The Maximum Special Tax that may be levied annually on Taxable Property within the Marina Category during the Base Year is $74,216.22. In the event that Parcel 80 is subdivided, the Maximum Special Tax shall be allocated to the subdivided Parcels in proportion to the number of marina slips contained in each subdivided Parcel within the Marina Category. In the event that Parcel 82 is subdivided from the other property within the Marina Category, it shall be taxed on the same rate and basis (per square foot) as property within the Non -Residential Category and the Maximum Special Tax for the remainder of the Marina Category shall be the amount calculated above, less the tax for Parcel 82. C. NON-RESIDENTIAL CATEGORY: The Non -Residential Category includes each Parcel of developed Taxable Property within CFD No. 2 which has been zoned or is permitted to be used for non-residential uses (including office, retail, industrial and other commercial uses) but not property within the Marina Category. These Parcels consist of Parcels 79, and 81 shown on the Tentative Map, as well as the portions of Lot 78 devoted to Non -Residential Uses. The Maximum Special Tax that may be levied annually on Taxable Property within the Non - Residential Category during the Base Year is $1.15 per square foot of Building Floor Area. D. MIXED USE CATEGORY: Parcels within CFD No. 2 which are zoned or permitted to be used for uses which fall in more than one of the above Categories shall be taxed for each category of use. The calculation of the Maximum Special Tax shall be performed separately for each Area of Use. For example, the Special Tax Liability for a Parcel featuring two Dwelling Units and 10,000 square feet of Non -Residential Use shall be the sum of the Special Tax for the two Dwelling Units at the rate applied to all Dwelling Units in the CFD and for the Non -Residential tax rate per square foot times 10,000. The Maximum Special Tax for Parcels in the Mixed Use Category shall be calculated accordingly. E. ADJUSTMENTS TO MAXIMUM SPECIAL TAX: The Maximum Special Tax for all Categories shall increase each Fiscal Year as determined annually by the City Council by the Consumer Price Index for the San Francisco -Oakland -San Jose area, All Urban Consumers/All Items, as published by the U.S. Department of Labor, Bureau of Labor Statistics, or, in the event such index ceases to be published, by a comparable index designated by the City Council. IV. SETTING THE ANNUAL SPECIAL TAX LIABILITY FOR TAXABLE PROPERTIES On or about July 1 of each year, but in any event in sufficient time to include the levy of the special taxes on the County's secured tax roll, the City shall determine the Category or Categories representing each Parcel of land within CFD No. 2. Parcels subject to levy and their respective Tax Category shall be determined based upon the records of the County Assessor as of the March 1 preceding such July. For each Fiscal Year, the City shall determine the Special Tax Liability for each Parcel for the Fiscal Year. The City shall make available for review by the general public information regarding the Category to which each Parcel is assigned and the information used to calculate the Special Tax Liability for each Parcel. 4 Attachment 1 shows the Base Year Maximum Special Tax rates. Each Fiscal Year following the Base Year, the Maximum Special Tax rates shall be increased in accordance with the Special Tax Escalation Factor. To determine the Maximum Special Tax in each Fiscal Year, multiply the number of Dwelling Units for each residential Parcel or the number of square feet of Building Floor Area for each non-residential Parcel times the applicable Maximum Special Tax rates shown in Attachment 1 as adjusted by the Special Tax Escalation Factor. For the Mixed Use Category, take the sum of those two products. The City shall calculate the Special Tax Liability for each Taxable Property for each fiscal year as follows: A. STEP ONE: Determine if the Improvements have been inspected and accepted by the City. If not, the Special Tax Liability shall be zero for that fiscal year. B. STEP TWO: Compute the Service Annual Costs. C. STEP THREE: Calculate the Special Tax Liability for each Parcel of Taxable Property by the following steps: Step 1: Compute the potential Maximum Special Tax revenue for all Parcels in the CFD by summing the Maximum Special Tax assigned to each Parcel for that Fiscal Year. Step 2: Compare the Service Annual Costs with the potential Maximum Special Tax revenue calculated in the previous step. Step 3: If the Service Annual Costs are less than the Maximum Special Tax revenue from Step 1, decrease proportionately the Maximum Special Tax amount for each Parcel until the total Special Tax revenue equals the Service Annual Cost. These amounts will be that year's Special Tax Liability for each Parcel. Step 4: If the Service Annual Costs are greater than or equal to the potential Maximum Special Tax revenue calculated in Step 1, the amount of the Special Tax Liability for each Taxable Property shall be the Maximum Special Tax assigned to each Parcel in II above. D. STEP FOUR: After the Special Tax Liability for each Parcel has been calculated, consult Section V of this Rate and Method in order to prepare the Tax Collection Schedule. V. PREPARATION OF TAX COLLECTION SCHEDULE Prepare the Tax Collection Schedule listing the Special Tax Liability for each Parcel of Taxable Property and send it to the County Auditor, requesting that it be placed on the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule shall not be sent later than the date required by the Auditor for such inclusion. The City shall make every effort to correctly calculate the Special Tax Liability for each Parcel. It shall be the burden of the taxpayer to correct any errors in the determination of the Parcels subject to the tax and the Special Tax Liability assigned to them. The City will maintain a file available for public inspection of each current County Assessor's Parcel Number within the CFD, its Maximum Special Tax, and the Maximum Special Tax for all Parcels within the CFD. H V 'o, ' O N N f4 .5 �+ cq.�-� r) W O �p Cd U N P, a� ra cd 'j, a" O � z �+00 s9 �O N b N N N O w .mob ���� N CO CID �x AMM � �CIS � Cdd 0 O � x O 0�DCd "C' w �b�b Cd y b o 0 rA zz NO U z 00 00 l l� O� —o\O [� oo p A w cn 00 U N N cd� O � z �+00 O N z �O N A a � ``' 00 ON r. o0 0 Um cd a �..' M 00 u c x ., 03 ccd C U 64 W P -i 0 z cdC13w � NO 45 Leveroni Court 415.883.9850 Novato �S 4 Novato, CA 94949 Fax: 415,883.9835 Petaluma a� 1 www.cswst2.com Sacramento Redwood City CSWIStuber-5troeh Engineering Group, Inc. Engineers I Land Planners I Surveyors I Landscape Architects MEMORANDUM DATE: May 1, 2017 FILE: 4.116110 TO: Lisa Goldfien, Bill Guren, Paul Jensen FROM: Al Cornwell RE: Loch Lomond Community Facilities District The following is an update to my memo of February 17, 2017. We met with the Developer (MVA) and reviewed the history of expenditures and contracts MVA has used to maintain the landscaping and pay utilities for the CFD as various portions of the project have been completed. Upon review of the actual contracts and costs, some reduction in the first year assessment is warranted. As you will recall, The Beatty Report divided the annual fees into 5 parts with these stated budgets: 1. Maintenance $45,110.00 2. Landscaping $81,230.00 3. Utilities $45,381.00 4. Reserve Contributions $44,650.00 5. City Administrative Fee $21.642.00 Total $238,063.00 In the February 17`h Memo, we had escalated these budgets by the allowable special escalation factor. Since February 17`' MVA has supplied additional information and documented actual costs as well as shared contract items in the Landscaping and Utilities sections_ Using this information we have reduced the budgets as follows: 1. Maintenance: No change; escalated budgets are used 2. Landscaping: MVA has provide contracts for the wetlands monitoring and maintenance (WRA) as well as the contract with Pacific Site Management for landscape maintenance. The budget has been adjusted to reflect those contracts and no escalation was used since the contracts are current 3. Utilities: MVA provided actually monthly and bimonthly invoices for electrical and water service. These amounts were converted to annual numbers for the purposes of these budgets and no escalation factor was used since the contracts are current. The refuse collection was escalated since no other information was available. In addition MVA noted that there was no \N�\ADmNCA WF\a\+iit11a\ourpi.g\2017-4-2scFodmfr Mr—{+.�ia1.iu).duc Lisa Goldfien, Bill Guren, and Paul Jensen May 1, 2017 Page 2 item to pump the restroom which drains to a holding tank. MVA provided a one-time cost for this service and an annual budget was added by multiplying this charge by 12. 4. Reserve Contribution: No change; escalated budget is used. 5. City Administration Fee: The city has historically not added administration fees to assessment districts. We reduced this amount in half, since the City will have to develop plans and specifications for the on-going maintenance after the improvements are accepted. In the future this fee will also need to cover the annual engineer's report that is required under state statute. This latter item can be included in the first annual Engineer Report in 2018. As we noted in February, we have not added any contingencies for 2017-2018 with the exception to balance individual assessments with the total. Contingencies will need to be added in future years as the CFD has records to support appropriate expenditures. Applying the modifications to each section yields the following budgets: 1. Maintenance $52,611.79 2. Landscaping $52,840.00 3. Utilities $34,194.06 4. Reserve Contributions $52,075.30 5. City Administrative Fee 512.620.53 $204,341.68 Contingencies $ 39.26 Total $204,380.94 Spreading this to the three use categories yields the following tax levies (I have a spread sheet to back this up if there are questions): Residential $ 1,947.67/unit (64 units)* Total $124,650.88 Non -Residential $ 0.92/sf (22,250.00) Total $ 20,470.00 Marina S 59.260.06 (1 LS) Total S 59.260.06 $204,380.94 * Note that 3 of these units are within the mixed use parcel and will be included in the assessment of that parcel in addition to the assessment for non-residential. Let me know if you would like the backup information for the City's records. I will also put together a separate assessment roll with the levy for each parcel for the staff report. Attached is a spread sheet which goes through the numbers and calculations. Should you have any questions, please let me know. W:\AD-NOV\WF\4\4116110\Outgoing\2017-4-28 CFD draft Memo (4.1161.10).do CFD 2017 proposed assessment CPlfactor Units Maintenance Landscaping Utilities Reserve Contribution City Administrative Fee Totals allocation 2010 17.63% 45,110.00 31.76% 81,280.00 17.73% 45,381.00 17.45% 44,650.00 8.46% 21,642.00 93.02% 238,063.00 Loch Lomond Marina Development Initial Assessment for 2017-2018 year Trial 16.63% Assessments 2017-2018 2016 52,611.79 94,796.86 52,927.86 52,075.30 25,241.06 277,652.88 comments After review and discussion with Daryl Cruze (MVA) 52,611.79 No change required escalate values from orginal Annual Operating Budget 52,840.00 no escalation using 16/17 amounts from contracts 34,194.06 no escalation except as noted, using 16/17 expenditures extrapolated to 12 months 52,075.30 no change required escalate values from orginal Annual Operating Budget 12,620.53 Used 1/2 amount based on City History of not charging heavily for administration fee and allowing a budget to prepare specifications for City administered contract for maintenance after acceptance 204,341.68 Revised comments Assessments 2017-2018 After review and discussion with Daryl Cruze (MVA) 52,611.79 No change required escalate values from orginal Annual Operating Budget 52,840.00 no escalation using 16/17 amounts from contracts 34,194.06 no escalation except as noted, using 16/17 expenditures extrapolated to 12 months 52,075.30 no change required escalate values from orginal Annual Operating Budget 12,620.53 Used 1/2 amount based on City History of not charging heavily for administration fee and allowing a budget to prepare specifications for City administered contract for maintenance after acceptance 204,341.68 Project 4116110 Z:\TEMP\AGC\MiscJobs\Lochlomand\2017-2-17 2017 assessment allocation spread sheet.xlsx Prepared 4/28/2017 Contingencies used to balance individual assessments with We will start to add contingencies in engineers total. Full contingencies will be added in engineers report for Contingency 6.98% 17,855.00 0 0.00 report for 2018-2019 39.26 2018-2019 grand total 100.00% 255,918.00 277,652.88 204,341.68 204,380.94 levy per unit levy per unit levy per unit Residential (EA) 64 156,110.08 61.00% 2,439.22 169,371.14 2,646.42 124,650.55 1,947.66 124,650.88 1,947.67 non-residential (SF) 22,250 25,587.50 10.00% 1.15 27,761.08 1.25 20,431.07 0.92 20,470.00 0.92 marina (LS) 1 74,216.22 29.00% 74,216.22 80,520.66 80,520.66 59,260.06 59,260.06 59,260.06 59,260.06 255,913.80 277,652.88 204,341.68 204,380.94 Landscape Costs 2010 2016/2017 1 Landscape Services Contract --Parks 32,400 33,540 2 Landscape Services Contract --Other 27,000 included Landscape Services Annual (Maintenance) 11,880 3,000 3 Wetlands Maintenance (including monitoring) 10,000 16,300 4 Totals 81,280 52,840 1 As reported and verified with MVA 2 Contract from Pacific Site Management includes Park and Other 3 Based on $250/month allocation for misc repairs (mostly irrigation) 4 Based on WRA Change Order dated 8/17/16 Utilities 2010 2016/2017 Comments Electricity 15,604.00 6,072.96 PGE does not charge for lights, cost is the most recent monthly meter reading on the lift station extrapolated to 12 months Water and Sewer 26,777.00 21,922.20 From August - September 2016 water bill extrapolated to 12 months Refuse Collection 3,000.00 3,498.90 no recent costs, escalated costs from 2010 report Restroom pump -out 0.00 2,700.00 From recent roto rooter bill in January 2017 extrapolated to 12 months Totals 45,381.00 34,194.06 Project 4116110 Z:\TEMP\AGC\MiscJobs\Lochlomand\2017-2-17 2017 assessment allocation spread sheet.xlsx Prepared 4/28/2017 ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 6/19/2017 From: Lisa Goldfien, Assistant City Attorney Department: City Attorney Date: 6/12/2017 Topic: MELLO-ROOS SPECIAL TAX ON PROPERTIES AT THE VILLAGE AT LOCH LOMOND MARINA Subject: RESOLUTION OF THE SAN RAFAEL CITY COUNCIL SETTING THE MELLO-ROOS SPECIAL TAX FOR CITY OF SAN RAFAEL COMMUNITY FACILITIES DISTRICT NO. 2 FOR FISCAL YEAR 2017-2018 Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: APPROVALS ® Finance Director Remarks: MM - approved 6/12/17 ® City Attorney Remarks: LG -Approved 6/12/17 ® Author, review and accept City Attorney / Finance changes Remarks: LG 6/13/17 ® City Manager Remarks: