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HomeMy WebLinkAboutCA Setting Mello-Roos CFD No. 2 TaxSAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 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: This item was considered by the City Council at its June 19, 2017 meeting, but after concerns were expressed during public comment on this item from two members of the public who own residential properties in the Village at Loch Lomond Marina subdivision, the Council continued the matter to the July 17th meeting and directed staff to obtain more detailed information about what steps have been taken to advise purchasers/homeowners of the special tax obligation. At the present time, the subdivider (developer) 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. However, 25-30 of the residential units have been sold and are occupied by private owners. The private owners that have purchased new homes in "The Strand" residential development were informed of the special tax assessment through various means including the following major milestones: 1. The initial contract between the potential buyer and the developer includes a disclosure of the Community Facilities District. The potential buyer is given three days to review the initial contract and information, including access to the specifics of the special tax. The purchase agreement is signed following this three-day review period. A sample of the initial contract has been provided to City staff which confirms this information. 2. During the escrow phase of the purchase, the potential buyer is provided a Property Tax Disclosure Report, which is required by the State of California. The disclosure report specifically lists the Community Facilities District in the inventory of special assessments and taxes. A sample disclosure report was provided to City staff, which includes an estimate on tax charges (for residential lots, an estimated annual levy amount of $2,665.37 is disclosed). (See Attachment 6, especially pp. 1, 2, 4 and 8) 3. During the escrow phase of the purchase, the potential buyer is provided a copy of any recorded CC & Rs (Declaration of Covenants, Conditions and Restrictions), which is required by the State of California. The potential buyer is required to acknowledge that they have reviewed the CC & Rs as part of the close of escrow process. The Strand development is covered by two recorded CC & Rs that govern the Village at Loch Lomond Marina development: a) the Master CC & Rs covering the entire marina development; and b) The Strand CC & Rs which are specific to the residential community. The Master CC & Rs clearly acknowledge the special assessment district including the voting and assessment allocations and a map of the "District Maintained Areas." In addition to the above, on May 15, 2017, the first annual meeting of The Strand Homeowner's Association (HOA) was held. This meeting was attended by over 20 new residents of The Strand, including the two property owners that attended and spoke at the June 19 City Council meeting. City staff received a list of the "talking points" from this HOA meeting, which included the subject Community Facilities District. The Strand property managers reported to the residents that the property tax bills issued this November will include the special tax charge of "approximately $2,000 to cover public access improvements." At the June 19 City Council meeting, the two residents of The Strand asked several questions, which warrant response. First, the special tax is not term -based nor does it sunset. The special tax will continue to be levied in perpetuity as its purpose is to cover on-going and long-term maintenance of the publicly -accessible park (including marina green, boardwalk, playground), main access road (Loch Lomond Drive), and the on-site seasonal wetland. Second, when the Community Facilities District was formed, the residential BMR units were exempt from the special tax. Therefore, the 17 BMR units owners in the marina development are exempt from this special tax. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 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 6. Sample California Property Tax Disclosure Report RESOLUTION NO. 14370 A RESOLUTION OF THE SAN RAFAEL CITY COUNCIL SETTING THE 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. 14370 was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 17th day of July, 2017, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 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 1 016-070-34 N/A LLM 1 - Lot 2 016-070-14 $11,748.38 LLM 1 - Lot 3 016-070-16 $12,342.87 LLM 1 - Lot 4 016-070-17 $2,221.76 LLM 1 - Lot 5 016-070-09 $59,260.06 LLM 1 -Lot A 016-070-12 $0.00 LLM 1 -Lot B 016-070-10 $0.00 LLM 1 - Lot C 016-070-13 $0.00 LLM 1 -Lot D 016-070-19 $0.00 LLM 1 - Lot E 016-070-15 $0.00 LLM 1 -Lot F 016-070-18 $0.00 LLM 1 - Lot G 016-070-21 $0.00 LLM 1 -Lot H 016-070-22 $0.00 LLM 1 - Lot I 016-070-20 $0.00 W:\AD-NOV\WP\4\4116110\Mello Roos\2017-06-21 Loch Lomond Mello Roos District Assessment Phase 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 1 016-341-01 $0.00 LLM 2 - Lot 2 016-341-02 $1,947.67 LLM 2 - Lot 3 016-341-03 $0.00 LLM 2 - Lot 4 016-341-04 $0.00 LLM 2 - Lot 5 016-341-05 $1,947.67 LLM 2 - Lot 6 016-341-06 $0.00 LLM 2 - Lot 7 016-341-07 $1,947.67 LLM 2 - Lot 8 016-341-08 $1,947.67 LLM 2 - Lot 9 016-341-09 $1,947.67 LLM 2 - Lot 10 016-341-10 $1,947.67 LLM 2 - Lot 11 016-341-11 $1,947.67 LLM 2 - Lot 12 016-341-12 $1,947.67 LLM 2 - Lot 13 016-341-13 $1,947.67 LLM 2 - Lot 14 016-341-14 $1,947.67 LLM 2 - Lot 15 016-341-15 $1,947.67 LLM 2 - Lot 16 016-341-16 $1,947.67 LLM 2 - Lot 17 016-341-17 $1,947.67 LLM 2 - Lot 18 016-341-18 $1,947.67 LLM 2 - Lot 19 016-341-19 $1,947.67 LLM 2 - Lot 20 016-341-20 $1,947.67 LLM 2 - Lot 21 016-341-21 $1,947.67 LLM 2 - Lot 22 016-341-22 $1,947.67 LLM 2 - Lot 23 016-341-23 $1,947.67 LLM 2 - Lot 24 016-341-24 $1,947.67 LLM 2 - Lot 25 016-341-25 $1,947.67 LLM 2 - Lot 26 016-341-26 $1,947.67 LLM 2 - Lot 27 016-341-27 $1,947.67 LLM 2 - Lot 28 016-341-28 $1,947.67 LLM 2 - Lot 29 016-341-29 $1,947.67 LLM 2 - Lot 30 016-341-30 $1,947.67 LLM 2 - Lot 31 016-341-31 $1,947.67 LLM 2 - Lot 32 016-341-32 $1,947.67 LLM 2 - Lot 33 016-341-33 $1,947.67 LLM 2 - Lot 34 016-341-34 $1,947.67 LLM 2 - Lot 35 016-341-35 $1,947.67 LLM 2 - Lot 36 016-341-36 $0.00 LLM 2 - Lot 37 016-341-37 $1,947.67 LLM 2 - Lot 38 016-341-38 $0.00 LLM 2 - Lot 39 016-341-39 $1,947.67 LLM 2 - Lot 40 016-341-40 $1,947.67 LLM 2 - Lot 41 016-341-41 $0.00 LLM 2 - Lot 42 016-341-42 $1,947.67 W:\AD-NOV\WP\4\4116110\Mello Roos\2017-06-21 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 43 016-341-43 $0.00 LLM 2 - Lot 44 016-341-44 $1,947.67 LLM 2 - Lot 45 016-341-45 $1,947.67 LLM 2 - Lot 46 016-341-46 $0.00 LLM 2 - Lot 47 016-341-47 $1,947.67 LLM 2 - Lot 48 016-341-48 $0.00 LLM 2 - Lot 49 016-341-49 $1,947.67 LLM 2 - Lot 50 016-341-50 $1,947.67 LLM 2 - Lot 51 016-341-51 $0.00 LLM 2 - Lot 52 016-341-52 $1,947.67 LLM 2 - Lot 53 016-341-53 $1,947.67 LLM 2 - Lot 54 016-341-54 $1,947.67 LLM 2 - Lot 55 016-341-55 $1,947.67 LLM 2 - Lot 56 016-341-56 $1,947.67 LLM 2 - Lot 57 016-341-57 $0.00 LLM 2 - Lot 58 016-341-58 $1,947.67 LLM 2 - Lot 59 016-341-59 $1,947.67 LLM 2 - Lot 60 016-341-60 $0.00 LLM 2 - Lot 61 016-341-61 $1,947.67 LLM 2 - Lot 62 016-341-62 $1,947.67 LLM 2 - Lot 63 016-341-63 $1,947.67 LLM 2 - Lot 64 016-341-64 $1,947.67 LLM 2 - Lot 65 016-341-65 $1,947.67 LLM 2 - Lot 66 016-341-66 $1,947.67 LLM 2 - Lot 67 016-341-67 $1,947.67 LLM 2 - Lot 68 016-341-68 $0.00 LLM 2 - Lot 69 016-341-69 $1,947.67 LLM 2 - Lot 70 016-341-70 $1,947.67 LLM 2 - Lot 71 016-341-71 $1,947.67 LLM 2 - Lot 72 016-341-72 $1,947.67 LLM 2 - Lot 73 016-341-73 $1,947.67 LLM 2 - Lot 74 016-341-74 $1,947.67 LLM 2 - Lot 75 016-341-75 $0.00 LLM 2 - Lot 76 016-341-76 $1,947.67 LLM 2 - Lot K 016-341-77 $0.00 LLM 2 - Lot L 016-341-78 $0.00 LLM 2 - Lot M 016-341-79 $0.00 LLM 2 - Lot D 016-341-80 $0.00 LLM 2 - Lot N 016-341-81 $0.00 LLM 2 - Lot E 016-341-82 $0.00 LLM 2 - Lot O 016-341-83 $0.00 LLM 2 - Lot F 016-341-84 $0.00 W:\AD-NOV\WP\4\4116110\Mello Roos\2017-06-21 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 P 016-341-85 $0.00 LLM 2 - Lot H 016-341-86 $0.00 LLM 2 - Lot A 016-341-87 $0.00 LLM 2 - Lot I 016-341-88 $0.00 LLM 2 - Lot B 016-341-89 $0.00 LLM 2 - Lot J 016-341-90 $0.00 LLM 2 - Lot C 016-341-91 $0.00 W:\AD-NOV\WP\4\4116110\Mello Roos\2017-06-21 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 S C A MER I C ♦� r California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 Report Number: 1781713 This Property Tax Disclosure Report satisfies Seller's obligations to disclose (a) Mello -Roos and 1915 Bond Act Assessments applicable to the Residential Property pursuant to California Government Code Section 53341.5 and Civil Code Section 1102.6b, and (b) Supplemental Taxes as required by California Civil Code Section 1102.6c. First American Professional Real Estate Services, Inc. operating through its First American Natural Hazard Disclosures division ("FANHD") has prepared this Report for the owner of the Residential Property on the Report Date ("Seller"), the buyer of the Residential Property under a contract of sale as of the Report Date ("Buyer") and their respective licensed real estate agents ("Agents"). Seller, Buyer and the Agents are sometimes referred to herein as "Party" or "Parties." PROPERTY INFORMATION COMMUNITY NAME: LOCH LOMOND SELLER: POLARIS PACIFIC LEGAL DESCRIPTION: MARIN COUNTY / THE VILLAGE AT LOCH LOMOND MARINA PHASE 2 / LOT 1 RESIDENTIAL PROPERTY: - _ 7 " DETERMINATION SUMMARY The Residential Property: A. ISI X IS NOT Subject to one or more Mello -Roos Community Facilities Districts B. is.X� IS NOT Subject to one or more 1915 Bond Act Assessment Districts C. IS _X 1 IS NOT u Subject to other direct assessments D. IS _ IS NOT LX . Subject to SRA Fire Prevention Fee Part 1: Special Tax and Assessment Summary *Notice of Special Tax/ Assessment (SIGNATURE REQUIRED) Part 2: Accelerated Foreclosure Information Part 3: Estimated Property Tax Charges Part 4: Supplemental Tax Information *Notice of Supplemental Tax Bill (SIGNATURE REQUIRED) Part 5: State Responsibility Area Fire Prevention Fee Part 6: Terms and Conditions BUYER'S / TRANSFEREE'S ACKNOWLEDGEMENT Buyer/Transferee acknowledges receipt of this Report. Buyer/Transferee acknowledges that this is a Report product and not any insurance policy and is subject to the Terms and Conditions attached hereto and incorporated herein. Buyer/Transferee Signature: Buyer/Transferee Signature: Page 1 Date: 20 Date: 20 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S t A M E R I C r California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 PART 1. SPECIAL TAX AND ASSESSMENT SUMMARY Report Number: 1781713 TO THE PROSPECTIVE PURCHASER OF THE RESIDENTIAL PROPERTY LEGALLY DESCRIBED AS: LEGAL DESCRIPTION: MARIN COUNTY / THE VILLAGE AT LOCH LOMOND MARINA PHASE 2/ LOT 1 A. Mello -Roos Community Facilities Districts: If the Residential Property is within a Mello -Roos Community Facilities District (CFD), it will be subject to a special tax that will appear on the property tax bill. This special tax is in addition to the ad valorem property taxes and any other charges and benefit assessments that will be itemized on the property tax bill and the proceeds of this tax or assessment are used to provide public facilities or services that are likely to particularly benefit the real property. This special tax may not be imposed on all parcels within the city or county where the property is located. If the Residential Property is within a CFD, the current tax rate, maximum tax rate, the maximum tax rate escalator, and the authorized facilities which are being paid for by the special taxes, and any authorized services will be indicated below. THE BUYER SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE PUBLIC FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THE RESIDENTIAL PROPERTY. This property IS SUBJECT TO Mello -Roos Community Facilities Districts Mello -Roos Community Facilities Districts Applicable to the Residential Property 1.1 Agency Improvements and/or Services Start Date Maximum Tax Amount Maturity Date Twin Cities Police To finance the cost of certain 2009/2010 $109.00 Authority CFD No. 2008-1 public facilities and acquisition of 2048/2049 (See Notice of Special Tax) (Public Safety, Police & equipment, furniture and fixtures Emergency Response and certain services Facilities and Services) Max. Tax Escalator Contact Phone Number Accelerated Foreclosure (yes or no) 0% NBS Govt. Finance Group (800) 676-7516 Yes (See Part 2 below) 1.2 Agency Improvements and/or Services Start Date Maximum Tax Amount Maturity Date City of San Rafael CFD To finance the maintenance of 2011/2012 $2,665.37 No. 2 (Park and park and recreation Levied in (See Notice of Special Tax) Recreation Area improvements, as well as Perpetuity Maintenance) appurtenant roadways, sidewalk and landscaping areas Max. Tax Escalator Contact Phone Number Accelerated Foreclosure (yes or no) Percentage increase in the City of San Rafael (415) 485-3066 No (See Part 2 below) San Francisco -Oakland - San Jose Consumer Price Index (2) Notices of Special Tax (Signature Required) follow. Page 2 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S t AM ERI r SI California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 Report Number: 1781713 NOTICE OF SPECIAL TAX TWIN CITIES POLICE AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 2008-1 (PUBLIC SAFETY, POLICE & EMERGENCY RESPONSE FACILITIES AND SERVICES) COUNTY OF MARIN, CALIFORNIA TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: THE VILLAGE AT LOCH LOMOND MARINA PHASE 2 / LOT 1 THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE. (1) This property is subject to a Special Tax, which is in addition to the regular property taxes and any other charges, fees, Special Taxes and benefit assessments on the parcel. It is imposed on this property because it is a new development, and may not be imposed generally upon property outside of this new development. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. (2) The property you are purchasing (the "Property") is within Twin Cities Police Authority Community Facilities District No. 2008-1 for Public Safety, Police and Emergency Response Facilities and Services, (the "CFD") and is subject to Annual Special Taxes levied pursuant to the Notice of Special Tax Lien of the CFD which is recorded against the Property. The Maximum Special Tax which may be levied by the CFD against the Property to pay for Public Facilities and/or Services is $109.00 per Developed Residential Unit and Residential Undeveloped Parcel. The Special Tax shall be levied each year but not later than the 2048-2049 Fiscal Year. (3) The authorized facilities which are being paid for by the Special Taxes, and the money received from the sale of bonds which are being repaid by the Special Taxes, include but are not limited to the acquisition, construction and equipping of an energy efficient, earthquake safe, police/emergency operations center, acquisition of mobile technology, 911 GPS mapping equipment and other related emergency communication systems and acquisition of automatic external defibrillators, acquisition of furniture, fixtures and equipment and administrative expenses as well as all costs related to the sale of the bonds and the formation and administration of the CFD. These facilities may not yet have all been constructed or acquired and it is possible that some may never be constructed or acquired. The authorized services which may be paid for by the Special Taxes, include all or a portion of the costs of a school officer to work with local schools, services in connection with a special driver education program at a local high school, self- defense program to develop skills for children, including personal safety skills, bicycle patrol services to patrol pathways surrounding local elementary and secondary schools, services related to an Alzheimer's community program, including home visits, data collection and retention, crisis intervention services, including suicide prevention services. YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH AUTHORIZED CREATION OF THE CFD, AND WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM NBS GOVT FINANCE GROUP BY CALLING (800) 676-7516. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF PROVIDING THE DOCUMENT. I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE - REFERENCED PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS NOTICE IN PERSON, OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL, BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER, SUBDIVIDER, OR AGENT SELLING THE PROPERTY. Buyer/Transferee Signature. Buyer/Transferee Signature: Page 3 Date: , 20 Date: , 20 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) ti 1-S A M E R I C '1 J California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 Report Number: 1781713 NOTICE OF SPECIAL TAX CITY OF SAN RAFAEL COMMUNITY FACILITIES DISTRICT NO. 2 (PARK AND RECREATION AREA MAINTENANCE) COUNTY OF MARIN, CALIFORNIA TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: THE VILLAGE AT LOCH LOMOND MARINA PHASE 2 / LOT 1 THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE. (1) This property is subject to a Special Tax, which is in addition to the regular property taxes and any other charges, fees, Special Taxes and benefit assessments on the parcel. It is imposed on this property because it is a new development, and may not be imposed generally upon property outside of this new development. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. (2) The property you are purchasing (the "Property") is within the City of San Rafael Community Facilities District No. 2 (Park and Recreation Area Maintenance), (the "CFD") and is subject to Annual Special Taxes levied pursuant to the Notice of Special Tax Lien of the CFD which is recorded against the Property. The Maximum Special Tax which may be levied by the CFD against the Property to pay for Public Facilities and/or Services is $2,665.37 per Market Rate Dwelling Unit. The Special Tax shall be levied in perpetuity. (3) The authorized services which may be paid for by the Special Taxes, include all or a portion of the costs of maintaining public recreation facilities and common access roadways, sidewalks, lighting and landscaping. YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH AUTHORIZED CREATION OF THE CFD, AND WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM THE CITY OF SAN RAFAEL BY CALLING (415) 485-3066. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF PROVIDING THE DOCUMENT. I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE - REFERENCED PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS NOTICE IN PERSON, OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL, BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER, SUBDIVIDER, OR AGENT SELLING THE PROPERTY. Buyer/Transferee Signature: Buyer/Transferee Signature: Page 4 Date: 20 Date: 20 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S S A M E R I e -1 California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 B. 1915 Bond Act Assessment Districts: Report Number: 1781713 If the Residential Property is within a 1915 Bond Act Assessment District, this Assessment District will have issued bonds to finance the acquisition or construction of certain public improvements that are of direct and special benefit to all real property within the Assessment District. The bonds will be repaid from annual assessment installments against all the properties within the Assessment District. Annual assessment installments of such an Assessment District will appear on the real property tax bills and are in addition to the ad valorem property taxes and any other charges and levies that will be itemized on the property tax bill. If the assessment installments are not paid when due each year, the Residential Property may be foreclosed upon and sold. If the Residential Property is within a 1915 Bond Act Assessment District, the annual assessment installment against the Residential Property and the public facilities that are being financed by the proceeds from the sale of bonds that are being repaid by the assessments will be indicated below. THE BUYER SHOULD TAKE ANY ASSESSMENT(S) AND THE BENEFITS FROM THE PUBLIC FACILITIES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THE RESIDENTIAL PROPERTY. This property IS SUBJECT TO 1915 Bond Act Assessment Districts 1915 Bond Assessment Districts Applicable to the Residential Property Agency Improvements Maturity Date Estimated Assessment Amount City of San Rafael Pt. San To finance the construction of, installation, 35 years after the $79.48 Pedro Road Median enhancement, renovation and rehabilitation issuance of bonds (See Notice of Special Landscaping Assessment of the landscaping and related facilities Assessment) District Contact Phone Number Accelerated Foreclosure Willdan Financial Services (866) 807-6864 No Notice of Special Assessment (Signature Required) follows: Page 5 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S A M ERI r 1 California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 Report Number: 1781713 NOTICE OF SPECIAL ASSESSMENT CITY OF SAN RAFAEL PT. SAN PEDRO ROAD MEDIAN LANDSCAPING ASSESSMENT DISTRICT COUNTY OF LOS ANGELES, CALIFORNIA TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: THE VILLAGE AT LOCH LOMOND MARINA PHASE 2 / LOT 1 THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO PURCHASE THIS PROPERTY. THIS PROPERTY IS SUBJECT TO AN ANNUAL SPECIAL ASSESSMENT, WHICH IS IN ADDITION TO THE REGULAR PROPERTY TAXES AND ANY OTHER CHARGES, FEES, SPECIAL TAXES AND BENEFIT ASSESSMENTS ON THE PARCEL. THE ASSESSMENT IS USED TO PROVIDE PUBLIC SERVICES THAT ARE LIKELY TO PARTICULARLY BENEFIT THE PROPERTY. YOU SHOULD TAKE THIS ASSESSMENT AND THE BENEFITS FROM THE FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. The property you are purchasing (the 'Property") is within the City of San Rafael Pt. San Pedro Road Median Landscaping assessment District (the "AD") and is subject to annual special assessments levied on behalf of the AD. The Authorized Maximum Annual Rate per Equivalent Benefit Unit (EBU) which may be levied against the Property by the AD during Fiscal Year 2015-2016 shall be $84.41. This Fiscal Year 2015-2016 Maximum Assessment rate shall be adjusted annually, by the greater of (i) three percent (3%), or (ii) the percentage increase of the Local Consumer Price Index (CPI). The amount of the annual assessment of the AD which shall be effective in each Fiscal Year subsequent to Fiscal Year 2015-2016 shall be specified in the Engineers Report filed with the AD. The annual assessment may be levied against the Property until 35 years after the issuance of Bonds. The authorized improvements and services which are being paid for by the Annual Assessment include but are not limited to construction, installation, enhancement, renovation and rehabilitation of the landscaping and related facilities; as well as ongoing operation, maintenance, and servicing of those improvements including administration and other incidental expenses. YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH AUTHORIZED CREATION OF THE ASSESSMENT DISTRICT OR THE ENGINEERS REPORT BY CONTACTING WILLDAN FINANCIAL SERVICES AT (866) 807-6864. I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE - REFERENCED PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS NOTICE IN PERSON, OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL, BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER, SUBDIVIDER, OR AGENT SELLING THE PROPERTY. Buyer/Transferee Signature: Date: 20 Buyer/Transferee Signature: Date: , 20 Page 6 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) A M E R! a C California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 Report Number: 1781713 PART 2. ACCELERATED FORECLOSURE INFORMATION Certain assessment or bond issues may contain the right to accelerated foreclosure as part of the security for the obligation. The right to accelerated foreclosure may provide priority over other real property taxes. The issuers of such bonds are contractually required to monitor and collect delinquent assessments quickly. Accordingly these assessments are not subject to the five (5) year waiting period applicable to the foreclosure of ad valorem real property taxes. If a parcel of real property is subject to such an assessment and the taxes are not paid promptly, the real property may be foreclosed upon and sold at public auction on an expedited basis. Therefore, it is extremely important that the real property tax bill be paid on time to prevent accelerated foreclosure of any such assessment. If the Residential Property is subject to an assessment or bond issue with an accelerated foreclosure lien, the detailed information is disclosed below. A. Mello -Roos Community Facilities Districts This property IS SUBJECT TO Mello -Roos Community Facilities Districts containing an accelerated foreclosure provision. Agency Twin Cities Police Authority CFD No - 2008 -1 (Public Safety, Police & Emergency Response Facilities and Services) B. 1915 Bond Act Assessment Districts Maximum Tax Amount End Year $109.00 2048/2049 (See Notice of Special Tax for details) This property IS NOT SUBJECT TO a 1915 Bond Act Assessment District Tax containing an accelerated foreclosure provision. Page 7 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) ST AM ERIC. t� 1 California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 PART 3. ESTIMATED PROPERTY TAX CHARGES Report Number: 1781713 The following information is provided as an overview of charges related to the property tax bill for the Residential Property. A property tax bill consists of various taxes, levies and assessments. Ad valorem taxes are based on a properties assessed value while fixed levies and special assessments are based on set amounts or benefit to the property. This information can change as a result of future voter approved legislation. Upon sale of the property, the assessor will reappraise the property which will result in a change to the properties assessed value and ad valorem tax amount. See Part 38 for estimating property taxes after sale. A. Estimated Subject Property Tax Rate: THE VILLAGE AT LOCH LOMOND MARINA PHASE 2 / LOT 1 The following is a listing of various levies and assessments that will appear on the tax bill for the Residential Property. The information provided is based on county records for the 2015/2016 tax year. Property is located in Tax Rate Area 008-000 AGENCY TYPE TAX RATE (% OF PROJECTED SALES PRICE) AD VALOREM TAX ASSESSMENTS (a) GENERAL 1% COUNTY TAX General Tax Rate 1.0000% (b) SAN RAFAEL ELEM SCHOOL -200213- B-11/02 School Bond 0.0205% (c) SAN RAFAEL ELEM SCHOOL -2002C- B-11/02 School Bond 0.0047% (d) SAN RAFAEL ELEM SCHOOL -2011 REFUNDING School Bond 0.0210% (e) MARIN COM COLLEGE 2004-4 C-11/04 College Bond 0.0066% (f) MARIN COM COLLEGE2004-2 C-11/04 College Bond 0.0046% (g) MARIN COM COLLEGE2004-3 C-11/04 College Bond 0.0035% (h) SAN RAFAEL HIGH SCHOOL -2011 REFUNDING School Bond 0.0266% f (i) MARIN COM COLLEGE 2015 REFUNDING College Bond 0.0018% Jf (j) MARIN HEALTHCARE -MEASURE F 11/5/13 Debt Service 0.0235% TOTAL AD VALOREM TAX RATE (FY 2015-16) 1.1128% DIRECT LEVIES (SPECIAL TAXES & ASSESSMENTS, FIXED CHARGES, ETC.) ESTIMATED LEVY AMOUNT (k) TWIN CITIES POLICE AUTHORITY CFD 2008-1 Mello Roos CFD $109.00 CITY OF SAN RAFAEL CFD NO. 2 (PARK AND (I) Mello Roos CFD RECREATION AREA MAINTENANCE) $2,665.37 CITY OF SAN RAFAEL PT. SAN PEDRO ROAD (m) MEDIAN LANDSCAPING ASSESSMENT DISTRICT 1915 Bond $79.48* (n) CITY OF SAN RAFAEL-RUNOFF CHARGE City Runoff $28.00 (o) MMWD-FIREFLOW Fire Protection $75.00 (p) MS MOSQUITO #1 Vector Control $12.86 (q) SAN RAFAEL CITY PARAMEDIC Emergency Svc $89.00 (r) SAN RAFAEL SANITARY DISTRICT Sewer Service $788.16 (s) SAN RAFAEL ELEMENTARY SCHOOLS School Parcel Tax $224.60 (t) SAN RAFAEL HIGH SCHOOLS School Parcel Tax $153.38 (u) SAN RAFAEL LIBRARY Library Tax $49.00 TOTAL ESTIMATED DIRECT LEVIES (FY 2015-16) $4,273.85 *District levying less than Authorized Maximum Annual Rate. See Notice of Special Assessment on Page 6 for additional information. Page 8 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) QHS C AMER7 r. t ••1 4 California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 Report Number: 1781713 Footnotes: (a) Represents the general tax levy of 1% of assessed value (usually based on the sale price of the property) (b) Represents the 2015-2016 annual assessment for debt service and repayment of San Rafael Elementary School 2002B election 11/2002 voter approved bonds (c) Represents the 2015-2016 annual assessment for debt service and repayment of San Rafael Elementary School 2002C election 11/2002 voter approved bonds (d) Represents the 2015-2016 annual assessment for debt service and repayment of San Rafael Elementary School 2011 refunding voter approved bonds (e) Represents the 2015-2016 annual assessment for debt service and repayment of Marin Community College 2004-4, election 11/2004 voter approved bonds series C (f) Represents the 2015-2016 annual assessment for debt service and repayment of Marin Community College 2004-2, election 11/2004 voter approved bonds series C (g) Represents the 2015-2016 annual assessment for debt service and repayment of Marin Community College 2004-3, election 11/2004 voter approved bonds series C (h) Represents the 2015-2016 annual assessment for debt service and repayment of San Rafael High School 2011 refunding voter approved bonds (1) Represents the 2015-2016 annual assessment for debt service and repayment of Marin Community College 2015 refunding voter approved bonds (j) Represents the 2015-2016 annual assessment for debt service and repayment of Marin Healthcare Measure F, election 11/2013 voter approved bonds (k) Represents the projected 2015-2016 annual Special Tax Assessment for Twin Cities Police Authority Community Facilities District No. 2008-1 Public Safety, Police and Emergency Response Facilities and Services (see Notice of Special Tax for additional information) (1) Represents the projected 2015-2016 annual Special Tax Assessment for the City of San Rafael Community Facilities District No. 2 (Park and Recreation Area Maintenance (see Notice of Special Tax for additional information) (m) Represents the projected 2015-2016 annual Special Assessment for the City of San Rafael Pt. San Pedro Road Median Landscaping Assessment District (see Notice of Special Assessment for additional information) (n) Represents the projected 2015-2016 annual assessment for the City of San Rafael runoff charge (o) Represents the projected 2015-2016 annual assessment for the Marin Municipal Water District — Fire Flow to pay for water system improvements such as replacement of inadequate pipe and seismic stabilization/retrofits at pump stations and pipe bridges (p) Represents the projected 2015-2016 annual assessment of the Marin/Sonoma Mosquito & Vector Control District #1 (q) Represents the projected 2015-2016 annual assessment of the San Rafael Paramedic fee for emergency services (r) Represents the projected 2015-2016 annual assessment of the San Rafael Sanitary District (s) Represents the projected 2015-2016 annual assessment for the San Rafael Elementary School District Parcel Tax (t) Represents the projected 2015-2016 annual assessment for the San Rafael Union High School District Parcel Tax (u) Represents the projected 2015-2016 annual assessment for the San Rafael Library parcel Page 9 0 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S.0 AMERI 1� C xr California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 B. Calculating Ad Valorem Taxes After Sale (Estimate Only) Property Tax Estimator Report Number: 1781713 The following calculation method is provided to assist Buyer in ESTIMATING the approximate amount of future property tax charges that may be levied against the property based on the assessed valuation being equal to the sales price. The amount derived is only an estimate and is not a substitute for a tax bill from the County, nor does it anticipate new property tax charges, fees or other changes in the property tax rates for the new tax year. Please see Section D below for general information about Ad Valorem Taxes. 1 Estimated Sales Price ............................. 2 Estimated Ad Valorem Tax Rate ............. 3 Multiply line 1 by line 2. This is your Estimated Ad Valorem Tax ...................... ............. I ....... ........ 0 1 $ ..................... 2 0.01112800 ......................... • 3 $ 4 Special Assessments........................................................... • 4 $4,273.85 5 Add lines 3 and 4. Total Estimated Annual Tax Amount After Sale.......................................................... 5 The information in this Section B is an estimate only. The purpose of this "ESTIMATOR" is to assist Buyer in planning for ad valorem taxes which will be applicable after the Sale Date. This "ESTIMATOR" requires the Buyer's projection of the purchase price of the Residential Property. Please note that potential exemptions and exclusions are not reflected in this estimate. FANHD is not responsible or liable for any losses, liabilities or damages resulting from use of this Property Tax Estimator. C. Exemptions & Exclusions To Ad Valorem Taxes California law provides certain exemptions from reassessments. The following is a list of common exemptions which may be available: Homeowner exemption (California Constitution Art XIII, §3 & R&T Code §218) Honorably discharged veterans (California Constitution Art XIII, §3 & R&T Code §205) Disabled veterans(California Constitution Art XIII, §4 & R&T Code §205) California law also provides certain exclusions from reassessment. The following is a list of common exclusions which may be available: ■ Persons over 55 years of age (R&T Code § 69.5) ■ Severely and permanently disable persons (R&T Code § 69.5(a)) ■ Transfers between parents and children and grandparents and grandchildren (R&T Code § 63.1) ■ Transfers into revocable trusts (R&T Code § 62) ■ Interspousal transfers (R&T Code § 63) ■ Improvements for seismic retrofitting (R&T Code § 74.5) ■ Improvements for disabled access (R&T Code § 74.3) • Replacement of property damaged or destroyed by disaster (R&T Code § 69) In order to determine if Buyer may qualify for any exemptions or exclusions or to obtain a comprehensive list of available exemptions and exclusions, please contact the county tax assessor's office (415) 473-7215 or visit the county website at httc):/1www.vco.marin.ca.us/deotsIAR/Main/index.cfm. Additional information is also available on the website for the California Board of Equalization at www.boe.ca.aov. Page 10 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S t A M E R I ti� C 1 { 1 California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 D. General Information Regarding Ad Valorem Taxes Report Number: 1781713 County assessors must value property in accordance with the California Constitution and the California Revenue & Taxation Code and related laws and regulations. "Full cash value", also known as "market value" or "fair market value," means the amount of cash or its equivalent which property would bring if exposed for sale in the open market. A property's "base year value," for real property assessed under Proposition 13, is the property's full cash value as of the date of the latest change in ownership or completion of new construction. An "adjusted base year value" (sometimes also referred to as the "factored base year value") is the property's base year value adjusted by an annual inflation factor, not to exceed two percent (2%) per year. "Taxable value" is the value upon which the base property taxes are calculated. For most real property, this is the adjusted base year value or the property's current market value, whichever is lower. The assessment roll is the official list of all assessable property in the county. The lien date is the date of valuation for all property. Annually, the taxable status and value of property is determined as of 12:01 a.m. on January 1. The fiscal tax year runs from July 1 to June 30. Proposition 13 limits the general property tax rate to one percent (1%) of the assessed value, plus an amount for the debt service on any bonds approved by popular vote. The tax rate will vary depending upon where the property is located. Page 11 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S f A M E R 7 C California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 PART 4. SUPPLEMENTAL TAX INFORMATION A. General Information Regarding Supplemental Taxes Report Number: 1781713 California law mandates the county assessor to reappraise real property upon a change in ownership or completion of new construction. The assessor's office issues a supplemental assessment which reflects the difference between the prior assessed value and the new assessment. This value is prorated based on the number of months remaining in the fiscal tax year which ends June 30. Notices of the supplemental assessment are mailed out to the property owner prior to the issuance of either (a) the supplemental tax bill, or (b) the refund if the value is reduced. Any supplemental taxes are amounts due in addition to the regular annual tax bill. Any supplemental taxes will be due from the current owner in addition to the regular tax assessment. For the first year of ownership, Buyer should plan for this additional payment. B. Supplemental Tax Disclosure The following notice is mandated by California Civil Code Section 1102.6c: NOTICE OF YOUR `SUPPLEMENTAL' PROPERTY TAX BILL THE VILLAGE AT LOCH LOMOND MARINA PHASE 2 / LOT 1 "California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes. The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the Tax Collector. If you have any questions concerning this matter, please call your local Tax Assessor's Office at: Tax Assessor: Marin County Assessor's Office Address: 3501 Civic Center Drive, Suite 208, San Rafael CA 94903 Phone Number: 415-473-7215 Website: httr)://www.co.marin.ca.us/dents/AR/Main/index.cfm THE PURCHASER OF THE ABOVE REFERENCED PROPERTY HEREBY ACKNOWLEDGES THAT PURCHASER HAS READ, UNDERSTOOD AND RECEIVED THIS NOTICE. Buyer/Transferee Signature: Date: 20 Buyer/Transferee Signature: Date: 20 Page 12 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S T A M E R I 4 'd California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 Report Number: 1781713 PART 5. STATE RESPONSIBILITY AREA FIRE PREVENTION FEE Pursuant to Chapter 1.5 (commencing with Section 4210) to Part 2 of Division 4 of the Public Resources Code, the State of California shall charge an annual "Fire Prevention Benefit Fee" ("Benefit Fee") on each eligible habitable structure on a parcel that is within a State Responsibility Area ("SRA") as defined in Section 4102 of the Public Resources Code, commencing with the 2011-2012 fiscal year. For an explanation of the SRA, refer to the Wildland Fire Area Section of the Natural Hazard Disclosure Report, under "Wildland Fire Area (State Responsibility Area)".The Fee Amount and a Fee Exemption (explained below) were implemented in an emergency regulation adopted January 23, 2012 by the State Board of Forestry and Fire Protection ("Board"). Fee Amount: A Benefit Fee of one hundred fifty-two dollars and thirty-three cents ($152.33) shall be charged on each habitable structure within an SRA, including single-family homes, multi -dwelling structures, mobile and manufactured homes, and condominiums. This is not a "per parcel" fee, but a levy on each structure (if any) on the parcel within an SRA which the State determines to be habitable. Fee Exemption: Property owners of habitable structures within a SRA and also within the boundaries of a local agency that provides fire protection services shall receive a fee reduction of thirty-five dollars ($35) per habitable structure. Date Due and Late Payment Penalties The fee shall be collected annually by the State Board of Equalization ("BOE"), and is due and payable 30 days from the date of assessment by the BOE. If not paid when due and payable, a penalty of twenty Dercent (20%) of the fee determined to be due shall be added to the amount due and payable for EACH 30-dav period in which the fee remains unpaid. The fees collected, other than that retained by the BOE necessary for payment of refunds and expenses incurred in the collection of the fee, shall be deposited into the State Responsibility Area Fire Prevention Fund in the State Treasury. This Fund shall be used by the Board and the Department of Forestry and Fire Protection ("CalFire") to finance the cost of specified fire prevention activities that will benefit the owners within the SRA who are required to pay the fee, including such activities as public education programs and local fire prevention projects to reduce fire risk in SRAs. On July 1, 2013, and annually thereafter, the Board shall adjust the annual amount of the Fire Prevention Fee to reflect the percentage of change in the average annual value of a specified standard price index as reported by the Department of Finance. Commencing with the 2012-13 fiscal year, if there are sufficient amounts of moneys in the SRA Fire Prevention Fund to finance the costs of specified fire prevention activities for a fiscal year, the BOE would be prohibited from collecting the fee for that fiscal year. Appeals Process: A person from whom the Benefit Fee is to be due may petition for a redetermination of whether this fee requirement applies to the Property. To appeal, the owner must submit within 30 days after the date of service of the determination a written petition stating the specific grounds upon which the appeal is founded and include supporting documentation. The petition must be sent to the address indicated by CalFire which may be the address of CalFire's Designated Fee Administrator. Database Date: March 2016 This property IS NOT located in a State Responsibility Area. Page 13 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) .is t AMEBIC tel, California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 PART 6: TERMS AND CONDITIONS Report Number: 1781713 ACCEPTANCE OR USE OF THIS REPORT, CONSTITUTES APPROVAL AND ACCEPTANCE OF THE TERMS, CONDITIONS, AND LIMITATIONS STATED HEREIN. A. No Third Partv Reliance on this Reoort A contract is formed with FANHD, only upon receipt by FANHD of payment of the full price of the Report. This Report cannot be relied upon (a) by any persons or entities other than the Parties, (b) for any other real property, or (c) for any future transactions involving the Property. The price paid for the Report does not include any amounts for protection of such other parties. B. Limitations on FANHD'S Liability FANHD is not responsible for: • Any inaccuracies or incompleteness of the information in the Public Records. • Inaccurate address information provided for the Property. • Any other information not contained in the Public Records as of the Report Date. • Any special taxes or assessments that have not been formed as of the Report Date. • Any information which would be disclosed by a physical inspection of the Property. • Any information known by one of the Parties. Except as otherwise expressly set forth in these Terms and Conditions, FANHD's total liability and responsibility to all Parties collectively for any and all liabilities, causes of action, claim or claims, including but not limited to claims for breach of contract or negligence, shall be for actual proven damages only caused directly by FANHD's error up to a maximum of $10,000. FANHD expressly disclaims any liability for Parties indirect, incidental and/or consequential damages, including without limitation lost profits even if such damages are foreseeable. In the event of any error, omission or inaccuracy in the FANHD Report for which FANHD is liable, FANHD shall have no duty to defend or pay any attorneys' fees, costs or expenses incurred by the Parties, or any of them. The Parties, and each of them, expressly waive the benefits of California Civil Code Section 2778. C. FISCAL TAX YEAR INFORMATION. The Ad Valorem Tax Rates and the Direct Levies and/or Assessments included in this report are based on the fiscal year or tax year indicated in Part 3 of the report. Ad Valorem Tax Rates and Direct Levy Amounts may increase or decrease in future tax years. Additionally, new Ad Valorem Taxes or Direct Levies and/or Assessments that are formed or authorized after the report date are not included in this report unless specifically noted in Part 3. D. SELLER AND SELLER'S AGENT'S RESPONSIBILITY OF FULL DISCLOSURE Sellers of real property and their Agents should always fully disclose all material facts regarding the real property which they are selling. Regardless of the information in this Report, if Seller or Seller's Agent has any actual knowledge of tax information potentially affecting the Residential Property, that information should be promptly disclosed in writing to the Buyer and the Buyer's Agent. E. Governina Law. The Report shall be governed by, and construed in accordance with, the laws of the State of California. F. Small Claims or Arbitration. The arbitration will take place in the same county in which the property covered by the Report is located. This provision constitutes an agreement to arbitrate disputes on an individual basis. Any party may bring an individual action in small claims court instead of pursuing arbitration. All disputes and claims arising out of or relating to the Report must be resolved by binding arbitration. This Report to arbitrate includes, but is not limited to, all disputes and claims between FANHD, Transferor(s) and Transferee(s) and claims that arose prior to purchase of the Report. This agreement to arbitrate applies to Transferor(s) and Transferee(s) successors in interest, assigns, heirs, spouses, and children. As noted above, a party may elect to bring an individual action in small claims court instead of arbitration, so long as the dispute falls within the jurisdictional requirements of small claims court. Any arbitration must take place on an individual basis, FANHD, Transferor(s) and Transferee(s) agree that they are waiving any right to a jury trial and to bring or participate in a class, representative, or private attorney general action, and further agree that the arbitrator lacks the power to consider claims for injunctive or declaratory relief, or to grant relief effecting anyone other than the individual claimant. Page 14 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016) S C A M E R I California Property Tax Disclosure Report For New Construction/New Homes Report Date: 4/22/2016 Report Number: 1781713 The arbitration is governed by the Commercial Arbitration Rules and the Supplementary Procedures for Consumer Related Disputes the "AAA Rules") of the American Arbitration Association ("AAA"), as modified by this Agreement, and will be administered by the AAA. Company will pay all AAA filing, administration and arbitrator fees for any arbitration it initiates and for any arbitration initiated by another party for which the value of the claims is $75,000 or less, unless an arbitrator determines that the claims have been brought in bad faith or for an improper purpose, in which case the payment of AAA fees will be governed by the AAA Rules. A COPY OF THESE RULES IS AVAILABLE FROM THE AAA's WEB SITE AT WWW.ADR.ORG OR ON REQUEST FROM THE COMPANY. THE ARBITRATION AWARD MAY INCLUDE ATTORNEY'S FEES IF ALLOWED BY FEDERAL, STATE, OR OTHER APPLICABLE LAW AND MAY BE ENTERED AS A JUDGMENT IN ANY COURT OF PROPER JURISDICTION. The arbitration will take place in the same county in which the property covered by the Report is located. The Federal Arbitration Act will govern the interpretation, applicability and enforcement of this arbitration agreement. This arbitration agreement will survive the termination of this Report. G. Severability. If any provision of the Terms and Conditions to this Report is determined to be invalid or unenforceable for any reason, then such provision shall be treated as severed from the remainder of the Terms and Conditions, and shall not affect the validity and enforceability of all of the other provisions of the Terms and Conditions. H. Other Aareements. This Report sets forth the complete, integrated agreement between FANHD and the Parties. Evidence of prior or contemporaneous statements, representations, promises or agreements shall not be admissible to vary the terms of this written agreement. This agreement may not be changed or amended except by a written document signed by an authorized representative of FANHD and the Parties. In the event that any dispute arises between FANHD and any Parties arising out of or relating to this Report or its subject matter, or any act or omission of FANHD, the prevailing party shall be entitled to recover his, her or its reasonable costs, including attorneys' fees, from the losing party. If any provision of this Report, or its application to any circumstance, is held to be invalid, unenforceable, or void, the remainder of this Report shall remain in full force and effect and enforced to the fullest extent possible. END OF REPORT Page 15 © 2016 First American Professional Real Estate Services, Inc. All rights reserved (2016)