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Home My WebLink AboutPW The Village at Loch Lomond Marina - Mello-Roos District No. 2____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: July 15, 2024 Disposition: Resolution 15322 Agenda Item No: 4.m Meeting Date: July 15, 2024 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Public Works Prepared by: April Miller, Public Works Director Jonathan Schellin, Deputy Director City Manager Approval: ______________ TOPIC: THE VILLAGE AT LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2 SUBJECT: RESOLUTION SETTING THE SPECIAL TAX FOR CITY OF SAN RAFAEL COMMUNITY FACILITIES DISTRICT NO. 2 (THE VILLAGE AT LOCH LOMOND MARINA) FOR FISCAL YEAR 2024-25 RECOMMENDATION: Adopt a resolution setting the special tax rates for Fiscal Year 2024-25 for Community Facilities District No. 2 (The Village at Loch Lomond Marina). BACKGROUND: In August 2007, the City granted land use and subdivision approvals for the Village at Loch Lomond Marina development. The Loch Lomond development project is a mixed-use development which includes the construction of single-family homes, flats, townhomes, and commercial facilities and the existing marina. The project originally included the approval of 81 residential units, 17 of which were below-market units. In 2020, the developer and City reached an agreement on an in-lieu fee for six of the below-market units, leaving 11 below-market units in the district at present. As one condition of approving the project, the City required the developer, Marina Village Associates (MVA), to provide certain park and recreation improvements and to impose a special tax on homes in the development in order to pay for the maintenance of the landscaping, streets, sidewalks and wetland monitoring. By adoption of Resolution No. 13014 on July 19, 2010, the City Council officially formed the community facilities district, which included all the parcels within the Village at Loch Lomond Marina Subdivision, as “City of San Rafael Community Facilities District No. 2”, pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code sections 53311 - 53368.3). It should be noted that the residential Below Market Rate (BMR) units within the district are exempt from the annual special tax. The facilities to be maintained by the Loch Lomond #2 CFD include: •The marina green and boardwalk •Kayak launch •Park play equipment and area SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 • Pedestrian pathways along the west jetty/spit and east jetty/spit • Viewing areas along the west jetty/spit, east jetty/spit • Public restrooms (2), one on the east jetty/spit and one at the entrance to the breakwater • Fishing cleaning station located near the entrance to the breakwater • Park and informational signs within these areas • Lawn/turf, shrubs and ground cover, irrigation systems, storm water drainage inlets within the boundaries of the area, lighting pole standards, and fixtures above the foundation, benches, trash receptacles, and bicycle racks • Conservation/seasonal wetland area • Roadways and sidewalks While some of these facilities require regular maintenance (e.g., landscaping and restroom maintenance), others will need to build up reserves over a longer period of time in order to fund future repairs or reconstruction (e.g., playground structure, roads, pedestrian pathways). The special tax has two components: 1. Capital Reserve A portion of the annual assessment is set aside to fund larger, long-term capital improvements such as the eventual replacement of pavement, curb and gutter, roadway, and other improvements that were constructed as a part of the development. At the end of the useful life of these large-scale public improvements, enough funds need to have been accumulated to replace them – e.g., resurfacing the access road, etc. As of June 30, 2024, the Capital Reserve Fund is projected to have a fund balance of $587,124, and an additional $131,030 will be added this year. As shown in Part B of the Engineer’s Report, at the end of FY 2024-25, the fund balance is anticipated to be $718,154 before unforeseen distributions in FY 2024-25. 2. Annual Maintenance The other portion of the annual special tax is to fund the regular and annual maintenance activities required to maintain the district’s public facilities, such as landscaping of medians and pathways, garbage service, restroom maintenance, and the semi-annual monitoring of wetland habitats. This fiscal year, the District contracted with Forester and Kroeger to provide this service in a manner similar to the level of maintenance that is provided in other City parks. It has become apparent that the contracted level of maintenance for both the grounds and landscaping are less than what the residents desire. The owner of the marina, Safe Harbor Marinas, has continued to assist with the responsibility for the ground maintenance. During FY 2024-25, the City will have a new service provider for this maintenance and this should alleviate a majority of the current residents’ concerns. The budgets for FY 2024-25 indicated in Part B reflects an increased level of maintenance that has been requested by the residents. The special tax was first levied during the FY 2017-18, based on upon the progress being made on construction of the subdivision improvements. It was imperative that funds were available for annual maintenance once the public improvements were turned over to the City and to start funding the Capital Reserves since the improvements, while not accepted by the City, were being used by the residents and the public. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 However, various construction delays resulted in the developer, Marina Village Associates, LLC, not finishing the improvements that year as anticipated. Various punch-lists were provided to the developer and on February 15, 2022, the City accepted the landscaping and streets, drainage, and other facilities with the exception of the Central Jetty Park, adjacent parking and restroom and the Breakwater connector, adjacent parking, and restroom. Since then, the Breakwater Access Trail and East Jetty Park have been almost completed, and the restrooms have been opened. ANALYSIS: The fiscal year 2024-25 Engineer’s Report recommends the District assess properties in the District at an amount of $2,660.34 per residential unit. Since City maintenance of some of the public facilities has not yet begun, there is available fund balance to use towards the annual maintenance costs for FY 2024- 25 and therefore the maximum assessment does not need to be levied. However, an assessment that goes towards the capital reserve fund will be levied at the full amount since the facilities must be eventually replaced based on their anticipated useful life. The last five years of assessment include: Residential (per unit) Non- Residential (per sq ft) Marina (lump sum) FY 2020-21 Max. allowable $3,193 $1.51 $97,155 Actual $1,597 $0.75 $48,576 FY 2021-22 Max. allowable $3,193 $1.51 $97,155 Actual $1,597 $0.75 $48,576 FY 2022-23 Max. allowable $3,315 $1.57 $100,857 Actual $2,203.18 $1.04 $67,034.60 FY 2023-24 Max. allowable $3,611.99 $1.70 $109,899.14 Actual $2,533.66 $1.19 $77,089.80 FY 2024-25 (Proposed) Max. allowable $3,697.45 $1.74 $112,499.52 Actual (proposed) $2,660.34 $1.24 $80,943.46 Adjustments to Maximum Allowable Assessment reflect an increase in inflation from the base year of June 2010. The increases are based on the Consumer Price Index (CPI) for the San Francisco-Oakland- Hayward region. Based on prior year’s expenses and the estimated costs for the services currently out for bid, the Engineer recommends that the District increase the assessment for FY 2024-25 by 5% over the FY 2023-24 amount. The fiscal year 2024-25 assessment will generate $294,757.26 in revenues, of which $131,030 will be applied toward the Capital Reserve Fund, as consistent with the capital reserve set-aside policies in the Engineer’s Report. The remaining $163,727.26 will go towards the Annual Maintenance Fund and will be supplemented with contingency funds to cover the difference between expected revenue and the planned maintenance expenditures as follows: FY 2024-25 Projected Expenses Category Description Amount Maintenance Restroom Cleaning and Maintenance $25,000 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 Restroom Supplies $2,400 Pit Toilet Pumping Service $32,000 Litter/Garbage Removal (Combined with restroom cleaning services) Landscape Maintenance $55,000 Tree Care $12,000 Playground Equipment Inspection $1,600 Street Sweeping $800 City Staff Time (Maintenance, Oversight, etc.) $11,500 Utility Costs (Water, Sewer and Electrical) $38,000 County/City Administrative Fee $138 Total Estimated Fiscal Year 2024-2025 Expenses $178,438 Special Charges Signs $4,926 Bench Painting $2,000 Misc. Paver Repairs $1,500 Light Fixture Repairs $1,000 Slurry Seal $15,000 Total Special Charges Expenses $23,926 Total Maintenance and Special Charges $202,864 Annual Capital Reserve Fund Contribution $131,030 Total Loch Lomond CFD #2 FY 2024-25 Expenditures $333,894 The special tax is not term-based, nor does it sunset. The special tax will continue to be levied in perpetuity as specified in the formation documents. Staff prepared a resolution for the City Council to consider for adoption to impose the required special tax for fiscal year 2024-25. The special taxes will be included on the County property tax bills and will be collected by the County of Marin. FISCAL IMPACT: The fiscal year 2024-25 assessment will generate $294,757 in revenue required to support maintenance and capital reserves towards the new City facilities in Community Facilities District No. 2. All special tax revenues and expenditures related to the district will be maintained in the Loch Lomond Marina Assessment District Fund (fund no. 237). 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 Fiscal Year 2024-25. 2. Adopt the resolution with modifications. 3. Direct staff to return with more information. 4. Take no action. RECOMMENDED ACTION: Adopt a resolution setting the Mello-Roos Special Tax for City of San Rafael Community Facilities District No. 2 for Fiscal Year 2024-25. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 ATTACHMENTS: 1. Resolution Setting the Mello-Roos Special Tax for City of San Rafael Community Facilities District No. 2 for Fiscal Year 2024-25 2. Annual Engineers Report for Loch Lomond CFD No. 2 1 RESOLUTION NO. 15322 A RESOLUTION OF THE SAN RAFAEL CITY COUNCIL SETTING THE SPECIAL TAX FOR CITY OF SAN RAFAEL COMMUNITY FACILITIES DISTRICT NO. 2 (THE VILLAGE AT LOCH LOMOND MARINA) FOR FISCAL YEAR 2024-25 WHEREAS, on July 19, 2010, the San Rafael City Council by Resolution No. 13014 formed the City of San Rafael Community Facilities District No. 2 (hereafter “CFD No. 2); and WHEREAS, the landowners of CFD No. 2 voted in a mail ballot election called by the City Council by Resolution No. 13015, and unanimously approved the imposition of a special district tax; and WHEREAS, on August 16, 2010, the City Council adopted Ordinance No. 1886 levying special taxes within CFD No. 2; and WHEREAS, on or about 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, at the request of the Director of Public Works, Joanna Kwok, City Engineer of San Rafael has prepared an Engineer’s Annual Report for Community Facilities District No. 2 for Fiscal Year 2024-25 recommending the amount of the special taxes to be assessed; 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 2024-25; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael hereby sets the amount of the special tax to be imposed on all nonexempt parcels within CFD No. 2 for Fiscal Year 2024-25, as set forth in the Engineer’s Annual Report for fiscal year 2024-25 on file with the City Clerk and incorporated herein by reference. I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 15th day of July 2024, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Kertz & Llorens Gulati NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Hill & Llorens Gulati LINDSAY LARA, City Clerk ENGINEER'S ANNUAL REPORT FOR COMMUNITY FACILITIES DISTRICT NO. 2 LOCH LOMOND MARINA AND THE STRAND 2024-2025 FOR THE CITY OF SAN RAFAEL CALIFORNIA COUNCIL MEETING JULY 15, 2024 Prepared By: City of San Rafael Page 1 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx ENGINEER'S ANNUAL REPORT 2024-2025 COMMUNITY FACILITIES DISTRICT NO. 2 LOCH LOMOND MARINA AND THE STRAND CITY OF SAN RAFAEL, MARIN COUNTY, CALIFORNIA (Mello-Roos Community Facilities Act of 1982) The undersigned respectfully submits the enclosed annual report as directed by the City Council. DATED: ____________, 2024. Engineer of Work By ______________________________________ Joanna Kwok, City of San Rafael, City Engineer I HEREBY CERTIFY that the enclosed Engineer's Annual Report, together with Assessment and Assessment Diagram thereto attached, was filed with me on the ____________________ day of ___________________, 2024. LINDSAY LARA, City Clerk, City of San Rafael, Marin County, California By ______________________________________ I HEREBY CERTIFY that the enclosed Engineer's Annual Report, together with Assessment and Assessment Diagram thereto attached, was approved on __________, 2023 and confirmed by the City Council of the City of San Rafael, Marin County, California, on the ___________________ day of ___________________, 2024. LINDSAY LARA, City Clerk, City of San Rafael, Marin County, California By ______________________________________ I HEREBY CERTIFY that the enclosed Engineer's Annual Report, together with Assessment and Assessment Diagram thereto attached, was filed with the County Auditor of the County of Marin on the ____________________ day of ____________________, 2024. LINDSAY LARA, City Clerk, City of San Rafael, Marin County, California Page 2 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx By ______________________________________ ENGINEER'S ANNUAL REPORT 2024-2025 COMMUNITY FACILITIES DISTRICT NO 2 LOCH LOMOND MARINA AND THE STRAND CITY OF SAN RAFAEL, MARIN COUNTY, CALIFORNIA (Mello-Roos Community Facilities Act of 1982) Joanna Kwok, Assistant Director of Public Works, Engineer of Work for the Community Facilities District Loch Lomond #2, City of San Rafael, Marin County, California, makes this annual report, as directed by the City Council, by its Resolution No. ___________, adopted ______________, 2024. The improvements which are the subject of this report are briefly described as follows: Maintenance of Improvements including streets, curbs, gutter, sidewalks, storm drain, storm inlets, street surfaces, Landscaping, street furniture, lighting, pathways, restrooms, park play equipment, picnic tables, fish cleaning stations, signage, and parking. The maintenance includes providing irrigation, paying water and utility bills as well as oversight. The improvements are also anticipated to need major capital funding in future years and a capital improvement allowance is included as part of the Community Finance District. This report consists of six parts, as follows: PART A – Plans for the improvements are filed with the City Clerk. Although separately bound, the plans and specifications are a part of this report and are included in it by reference. PART B - An Estimated Cost of the Assessment District. PART C - Assessment Roll - An assessment of the estimated cost of the improvement on each benefited parcel of land within the assessment district. PART D – Rate and Method of Apportionment of Special Taxes - A statement of the method by which the undersigned has determined the amount proposed to be assessed against each parcel. PART E - List of Property Owners - A list of the names and addresses of the owners of real property within this assessment district, as shown on the last equalized assessment roll for taxes, or as known to the Clerk. The list is keyed to Part "C" by assessment number. PART F - Assessment Diagram - A diagram showing all of the parcels of real property within this assessment district. The diagram is keyed to Part "C" by assessment number. Respectfully submitted, By ______________________________________ Page 3 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx Joanna Kwok, City of San Rafael, City Engineer PART A Page 4 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx INTRODUCTION AND BACKGROUND INFORMATION The Loch Lomond Project The Loch Lomond development project (the “Project”) is a mixed-use development which will include the construction of single-family homes, townhomes and commercial facilities and will include the existing marina, which is located in San Francisco Bay. The Project is located in the City of San Rafael (“City”), off of Point San Pedro Road. It was approved by the San Rafael City Council (“City Council”) of the City in 2007, by means of a series of approvals, including Resolution 12332 (“the Approval Resolution”). As one condition of approving the Project, the City required the developer to provide certain park and recreation improvements and to provide for their maintenance by means of a special tax to be imposed by means of a Mello-Roos Community Facilities District (“CFD”). Since the approval of the Project, the developer has determined that it would be more beneficial to the property owners, and more cost-efficient if the maintenance of certain additional facilities, consisting of landscaping and street and sidewalk improvements, as well as wetland monitoring, could also be financed by means of the CFD. Collectively, the park and recreation improvements, landscaping, streets, and sidewalks and these additional facilities are referred to herein as the “Facilities.” On June 7, 2010, the City Council adopted a Resolution of Intention to form a CFD (the “Resolution of Intention”) in accordance with the Mello-Roos Community Facilities District Act of 1982 (the “Act”). The Resolution of Intention indicated that the maintenance of the Facilities would be financed by means of a special tax imposed pursuant to the Act. The Resolution of Intention requested the preparation of this Report, directing that the report describe the facilities to be maintained and an estimate of the cost of maintaining those facilities. For purposes of imposing a special tax to fund the maintenance of the Facilities, the development will be split into four tax categories: Residential; Non-residential; Mixed-use and Marina. As approved, the Project features 81 residential units, of which 76 units will be located in the Residential tax category and 5 units will be in the Mixed-use category, as they will be located above commercial space. Of these residential units, 11 will be below-market units, located in the residential category area. There is expected to be 22,500 square feet in the Non-residential category, which will be devoted to neighborhood commercial/retail businesses and marina-support facilities. The Marina category contains areas serving the existing marina area, including the yacht club. The Mello-Roos Community Facilities Act of 1982 In the Approval Resolution, the City Council determined that the Act would be an effective tool for funding the maintenance of the park and recreation improvements and conservation area. The Act provides substantial flexibility as to the range of facilities and services that can be funded and the method by which their cost can be allocated. As the financing mechanism is a special tax, and not an assessment, the costs can be allocated according to any method that is reasonable, without the need to make a specific finding of benefit to each property. The Act permits the City Council to form the CFD and allows for the owners of the property, if it is uninhabited, to vote to approve the special tax (which requires a two-thirds majority). Purpose of the CFD Report As directed in the Resolution of Intention, this CFD Report has been prepared and is being PART A Page 5 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx submitted pursuant to Section 53321.5 of the Act. The Act requires that this report describe the facilities to be maintained (see “Description of Facilities to be Maintained” below) Formation of the CFD On June 7, 2010, the City Council adopted the Resolution of Intention. A map identifying the boundaries is attached as Exhibit A to this work. On July 19, 2010 the City Council held a public hearing, as required by the Act, to hear any protests to the formation of the CFD and to consider this report. Following the public hearing, the Council adopted a Resolution of Formation and called an election to allow the qualified electors to consider the special tax to fund the services described herein. With at least two-thirds of the votes cast in favor of the special tax, the CFD was formed and the levy of the special tax was authorized. Description of Facilities to be Maintained The facilities to be maintained include those specifically described in Condition 45 of the Approval Resolution: • The Marina Green and Boardwalk • Kayak Launch • Park Play Equipment and Area • Pedestrian pathways along the west jetty/spit and east jetty/spit • Viewing areas along the west jetty/spit, east jetty/spit • Public restrooms (2), one on the east jetty/spit and one at the entrance to the breakwater • Fishing cleaning station located near the entrance to the breakwater • Park and informational signs within these areas • Lawn/turf, shrubs and ground cover, irrigation systems, storm water drainage inlets within the boundaries of the area, lighting pole standards, and fixtures above the foundation, benches, trash receptacles and bicycle racks • Conservation/seasonal wetland area • Roads, streets, sidewalks, and stormwater infrastructure In addition, the CFD will also maintain the common access road shown on the map attached as Exhibit D, its landscaping, lighting and sidewalk areas. In July 2017, the San Rafael City Council approved levying the first assessment for Community Facilities District No. 2 (“CFD-2”) at the Village at Loch Lomond Marina. The CFD activity during Fiscal Year 2017-2018 was very minimal. After a number of assurances in 2017, the developer, TH Loch Lomond, LLC (“MVA”) did not finish the work to a point where the City could accept a portion of the improvements as anticipated in the beginning of Fiscal Year 2017-2018. On June 1, 2018, the City received a letter from MVA requesting an extension of the Subdivision Improvement Agreements through December 31, 2019 and, by implication, acceptance of a portion of the improvements. The City answered this letter on June 20, 2018, including a final punch list which the letter directed the developer to complete prior to August 1, 2018. The successful completion of the punch list would set the process in motion to accept the improvements, begin the warranty period, and provide a partial reduction in bond amount for the improvements. PART A Page 6 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx Prior Status and Actions For previous year’s status reports consult 2023-2024 and earlier Engineer’s Reports. June 2024 Status and Actions The Village Master Association and Strand Homeowners Association continue to request the City for a more active role advising the District. The Associations have concerns with the maintenance of the landscape and some of the infrastructure, as well as the master developer’s inability to complete the project. As noted in previous years, the residents and business owners face a particular challenge in that the District was formed to maintain property owned by the Village Association with public easements allowing all San Rafael residents and others to use the property. The City and representatives of the Associations have continued to work to determine the level of maintenance that can be sustained by the District once the developer(s) complete their work on the public property and the remaining housing. New requests for proposals for landscaping and janitorial services are currently in progress and services are anticipated to be in effect by the beginning of the FY2024-25. This is expected to improve the general maintenance and upkeep of the District and alleviate a majority of the resident’s current concerns. The 2024-25 budget includes monies that have been allocated to maintain the district facilities at an improved level of service, including routine janitorial and landscaping services. Since the District has not been able to maintain the full facilities (due to the incomplete work by the developer), there is no past actual costs to guide the budget. It appears that the level of maintenance desired by the community is not sustainable at the current funding levels. Nonetheless, the 2024-2025 budget will carry these numbers and be re-evaluated in the 2025-2026 report. The repairs to the Breakwater Access Trail and East Jetty Park have been completed. The City is currently waiting for the developer to request final acceptance from the City. In turn, the Developer is waiting on final acceptance from BCDC, since that is necessary before the City can consider final acceptance. The activities of the past year include the continued landscape maintenance by Forester and Kroger. The City has received bids for future maintenance of the landscaping in FY2024-25, and will begin with a new service provider in FY 2024-25. The City has continued with its weekly pumping of the pit toilet and will continue to directly manage this service in FY2024-25. As provided in the District formation documents, the Engineer recommends that the annual assessment be increased to cover continued cost escalation for maintenance and utilities as well as the additional costs to provide an improved level of landscape, restroom, and restroom maintenance than is currently performed. The District formation documents allow an annual increase of up to 3% or the Consumer Price Index for the San Francisco/Oakland/Hayward region, whichever is greater. The CPI as of February 2024 is 345.151. The base year index (2010) is 227.27. This allows a 52% increase since the District’s formation. The maximum assessments would be as follows: Residential $3,697.45 per residential unit PART A Page 7 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx Non-Residential $1.74 per square foot of non-residential floor area Marina $112,499.52 Lump Sum The Engineer has previously suggested increasing the assessments so the District participants experience a graduated “bump” in assessments to attain a rate that will better cover the expenses needed to maintain the district once the City accepts the improvements from the developer. Based on prior year’s expenses and the estimated costs for the services currently out for bid, the Engineer recommends that the District increase the assessment for 2024-2025 by 5% over the 2023-2024 FY as calculated in Part D and noted below. This will allow the District to assess if the newly contracted services will be covered by the current assessment level, or if additional increases will be needed in following years. Proposed Assessments for the year 2024-2025: Residential $2,660.34 per residential unit (70 residential units: 70 x $2,660.34 = $186,223.80) Non-Residential $1.24 per square foot of non-residential floor area (22,250 ft2 non-residential: 22,250 x $1.24 = $27,590 Marina $80,943.46 Lump Sum $294,757.26 Total Anticipated Revenue for the year 2024-2025 The District collects assessments to cover three areas of funding: Capital Reserve Fund, Annual Maintenance Fund and a Contingency. The 2024 status of these funds are discussed below. Capital Reserve Fund: The Capital Reserve Fund needs to be collected annually in order for the District to have funds available to replace pavements, curb and gutter and other improvements in the future as the infrastructure approaches the end of its useful life. The amount of the Capital Reserve currently stands at $587,124 and an additional $131,030 (2.37% increase) will be added this year. As shown below the Capital Reserve Fund, June 30, 2025, is anticipated to be $718,154 before unforeseen distributions in 2024-2025. Annual Maintenance: Since the Maintenance portion has only been partially tapped, this fund had continued to build during the current fiscal year. Nevertheless, and based on the level of maintenance expected by the residents, the Engineer recommends the District continue to assess properties in the District. Currently the District is carrying $260,702.23 in un-allocated maintenance since the City has only recently accepted the improvements. As noted above this will be evaluated during FY 2024-2025 to determine what portion of Contingency might be allocated to the maintenance or Capital Reserve funds. It should be noted that future increases may need to be made to bring the assessment funding in line with the max assessments allowed in the District formation documents. At that point, further increases would be only based on the index allowed for the District. PART A Page 8 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx The District will be assuming all costs from the developer upon final acceptance. Since the District will be accepting infrastructure that is several years old, the Engineer recommends that any monies not used in District maintenance be allocated for future repairs of infrastructure under the Capital Reserve Fund. Contingency: As noted in the financial summary in Part B, the District carries a contingency for unforeseen circumstances. The contingency remains relatively large in anticipation of the District assuming the maintenance responsibilities and determining the acceptable level of maintenance to meet the residents expectations as well as covering deferred maintenance of completed improvements such as resealing the asphalt pavement and repairing damaged fixtures and furniture. Reconcile 2023-24 Assessment distributions for commercial properties: After the 2023-24 Engineers Report was approved and filed, a discrepancy was found in the levying of assessments to the commercial properties Lots 2, 3, and 4 (Assessment Nos. 2, 3, and 4, APNs 016-070-14, -16, and -17). While the total commercial assessment is correct, the allocation between the three commercial properties was off due to a misallocation of commercial space area between the three lots. The chart below explains the discrepancy: Parcel no 2023-2024 Area Correct Area Lot 2 11,478.47 6,344.29 Lot 3 9,059.36 13,377.44 Lot 4 1,712.17 2,528.27 The discrepancy resulted in an overpayment by Lot 2 and under payment by Lots 3 and 4. The charged assessments and corrected assessments are shown in the following chart: Parcel no 2023-2024 Assessment Corrected Assessment delta Lot 2 $26,236.68 $20,281.00 ($6,109.68) Lot 3 $10,780.64 $15,919.16 $5,138.52 Lot 4 $ 2,037.50 $ 3,008.64 $ 971.14 To correct the over and under payments, the Assessments for Lots 2, 3, and 4 will be adjusted for the 2024-2025 year as follows: 2024-2025 Assessment Parcel no 2024-2025 Assessment Adjustment To be paid Lot 2 $21,168.62 ($6,109.68) $15,058.94 Lot 3 $16,588.04 $5,138.52 $21,726.56 Lot 4 $3,135.06 $ 971.14 $4,106.20 These adjustments will bring all assessments for the commercial areas to parity over the past two years. END OF PART A PART B ESTIMATE OF COSTS Page 9 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx Total estimated Available Funds June 30, 2023: $ 861,292 Adjustment to match City Funds to Actual City Records $ 35,663 Actual Available Funds on July 1, 2023 $ 896,955 2023-2024 (PROJECTED) EXPENSES County of Marin Fee $ 138 Landscaping Services (July, 2023 to April, 2024) $ 41,626 Water Expense through February, 2024 $ 20,388 Landscaping Monthly fee May - June, 2024 $ 8,000 Water Estimate March to June, 2024 $ 18,000 Engineer’s Report Estimate $ 4,000 City Staff Time $ 13,700 FY 2023-2024 Estimated Expense Total $ 105,852 Assessment Proceeds 2023-2024 $ 266,877 Interest $ 11,505 Total Anticipated Funds, June 30, 2024 $ 1,069,485 FY 2024-2025 Estimated Expenses Restroom Cleaning and Maintenance $ 25,000 Restroom Supplies $ 2,400 Pit Toilet Pumping Service $ 32,000 Litter/Garbage Removal - (Combined with restroom cleaning services) Landscape Maintenance $ 55,000 Tree Care $ 12,000 Playground Equipment Inspection $ 1,600 Street Sweeping $ 800 City Staff Time (Maintenance, Oversight, etc.) $ 11,500 Utility Costs (Water, Sewer and Electrical) $ 38,000 County/City Administrative Fee $ 138 Total Estimated Fiscal Year 2024-2025 Expenses $ 178,438 Special Charges Signs $ 4,926 Bench Painting $ 2,000 Misc. Paver Repairs $ 1,500 Light Fixture Repairs $ 1,000 Slurry Seal $ 15,000 Total estimated 2024-2025 Expenses $ 202,864 Capital Reserve Fund (Held 2023-2024) $ 587,124 Capital Reserve Contribution Fiscal Year 2024-2025 $ 131,030 Anticipated Capital Reserve Fund June 30, 2024 $ 718,154 Total Allocated Funds 2024-2025 $ 995,882 PART B ESTIMATE OF COSTS Page 10 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx Contingencies (Future Additional Capital Reserve and Maintenance Takeover Costs) $ 165,496 TOTAL ANTICIPATED FY 2024-2025 YEAR EXPENSES AND ALLOCATIONS: $ 1,161,378 FY 2024-2025 ASSESSMENT FUNDING $ 294,757 Total available funds FY 2024-2025: $ 1,161,378 PART C ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part C – Assessment Roll Page 11 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx SPECIAL ASSESSMENT NUMBER AMOUNT OF ASSESSMENT Fiscal Year 2023-2024 PROPERTY DESCRIPTION Loch Lomond ASSESSOR'S PARCEL NUMBER 2 $15,058.94 Lot 2 016-070-14 3 $21,726.56 Lot 3 016-070-16 4 $4,106.20 Lot 4 016-070-17 5 $80,943.46 Lot 5 016-070-09 A $0.00 Lot A 016-070-12 B $0.00 Lot B 016-070-10 C $0.00 Lot C 016-070-13 D $0.00 Lot D 016-070-19 E $0.00 Lot E 016-070-15 F $0.00 Lot F 016-070-18 G $0.00 Lot G 016-070-21 H $0.00 Lot H 016-070-22 I $0.00 Lot I 016-070-20 1-1 $0.00 1 016-341-01 1-2 $2,660.34 2 016-341-02 1-3 $0.00 3 016-341-03 1-4 $2,660.34 4 016-341-04 1-5 $2,660.34 5 016-341-05 1-6 $2,660.34 6 016-341-06 1-7 $2,660.34 7 016-341-07 1-8 $2,660.34 8 016-341-08 1-9 $2,660.34 9 016-341-09 1-10 $2,660.34 10 016-341-10 1-11 $2,660.34 11 016-341-11 1-12 $2,660.34 12 016-341-12 1-13 $2,660.34 13 016-341-13 PART C ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part C – Assessment Roll Page 12 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx SPECIAL ASSESSMENT NUMBER AMOUNT OF ASSESSMENT Fiscal Year 2023-2024 PROPERTY DESCRIPTION Loch Lomond ASSESSOR'S PARCEL NUMBER 1-14 $2,660.34 14 016-341-14 1-15 $2,660.34 15 016-341-15 1-16 $2,660.34 16 016-341-16 1-17 $2,660.34 17 016-341-17 1-18 $2,660.34 18 016-341-18 1-19 $2,660.34 19 016-341-19 1-20 $2,660.34 20 016-341-20 1-21 $2,660.34 21 016-341-21 1-22 $2,660.34 22 016-341-22 1-23 $2,660.34 23 016-341-23 1-24 $2,660.34 24 016-341-24 1-25 $2,660.34 25 016-341-25 1-26 $2,660.34 26 016-341-26 1-27 $2,660.34 27 016-341-27 1-28 $2,660.34 28 016-341-28 1-29 $2,660.34 29 016-341-29 1-30 $2,660.34 30 016-341-30 1-31 $2,660.34 31 016-341-31 1-32 $2,660.34 32 016-341-32 1-33 $2,660.34 33 016-341-33 1-34 $2,660.34 34 016-341-34 1-35 $2,660.34 35 016-341-35 1-36 $0.00 36 016-341-36 1-37 $2,660.34 37 016-341-37 1-38 $0.00 38 016-341-38 1-39 $2,660.34 39 016-341-39 PART C ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part C – Assessment Roll Page 13 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx SPECIAL ASSESSMENT NUMBER AMOUNT OF ASSESSMENT Fiscal Year 2023-2024 PROPERTY DESCRIPTION Loch Lomond ASSESSOR'S PARCEL NUMBER 1-40 $2,660.34 40 016-341-40 1-41 $0.00 41 016-341-41 1-42 $2,660.34 42 016-341-42 1-43 $0.00 43 016-341-43 1-44 $2,660.34 44 016-341-44 1-45 $2,660.34 45 016-341-45 1-46 $0.00 46 016-341-46 1-47 $2,660.34 47 016-341-47 1-48 $0.00 48 016-341-48 1-49 $2,660.34 49 016-341-49 1-50 $2,660.34 50 016-341-50 1-51 $0.00 51 016-341-51 1-52 $2,660.34 52 016-341-52 1-53 $2,660.34 53 016-341-53 1-54 $2,660.34 54 016-341-54 1-55 $2,660.34 55 016-341-55 1-56 $2,660.34 56 016-341-56 1-57 $0.00 57 016-341-57 1-58 $2,660.34 58 016-341-58 1-59 $2,660.34 59 016-341-59 1-60 $0.00 60 016-341-60 1-61 $2,660.34 61 016-341-61 1-62 $2,660.34 62 016-341-62 1-63 $2,660.34 63 016-341-63 1-64 $2,660.34 64 016-341-64 1-65 $2,660.34 65 016-341-65 PART C ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part C – Assessment Roll Page 14 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx SPECIAL ASSESSMENT NUMBER AMOUNT OF ASSESSMENT Fiscal Year 2023-2024 PROPERTY DESCRIPTION Loch Lomond ASSESSOR'S PARCEL NUMBER 1-66 $2,660.34 66 016-341-66 1-67 $2,660.34 67 016-341-67 1-68 $2,660.34 68 016-341-68 1-69 $2,660.34 69 016-341-69 1-70 $2,660.34 70 016-341-70 1-71 $2,660.34 71 016-341-71 1-72 $2,660.34 72 016-341-72 1-73 $2,660.34 73 016-341-73 1-74 $2,660.34 74 016-341-74 1-75 $2,660.34 75 016-341-75 1-76 $2,660.34 76 016-341-76 K $0.00 K 016-341-77 L $0.00 L 016-341-78 M $0.00 M 016-341-79 D $0.00 D 016-341-80 N $0.00 N 016-341-81 E $0.00 E 016-341-82 O $0.00 O 016-341-83 F $0.00 F 016-341-84 P $0.00 P 016-341-85 H $0.00 H 016-341-86 A $0.00 A 016-341-87 I $0.00 I 016-341-88 B $0.00 B 016-341-89 J $0.00 J 016-341-90 C $0.00 C 016-341-91 PART C ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part C – Assessment Roll Page 15 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx SPECIAL ASSESSMENT NUMBER AMOUNT OF ASSESSMENT Fiscal Year 2023-2024 PROPERTY DESCRIPTION Loch Lomond ASSESSOR'S PARCEL NUMBER G $0.00 G 016-341-92 TOTAL ASSESSMENT $294,757.28 (For 2024-2025 Fiscal Year) The lines and dimensions of each parcel are as shown on the maps of the County Assessor of the County of Marin. Property descriptions are lot or parcel numbers as shown on the recorded final maps of Loch Lomond, recorded: PART D RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Page 16 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 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. 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, 2088 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. PART D RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Page 17 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 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, design, 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 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. PART D RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Page 18 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx Tentative Map means that certain tentative map as approved by the City Council of the City of San Rafael by means of Resolution 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 2 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 portions of Lot 78 devoted to Non-Residential Uses. The Maximum Special Tax that may be levied annually on Taxable Property inti nth 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. PART D RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Page 19 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 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 an 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. Attachment 1 shows the Base Year Maximum Special Tax rates. Each Fiscal Year following the Base Year, the Maximum Special Tax rate 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 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 inspect and accepted by the City. If not, the Special Tax Liability shall be zero for that fiscal year. B. STEP TWO: As noted above the District is allowed to increase assessments based on the CPI for the San Francisco-Oakland Hayward region. The CPI as of February, 2024 is 345.151. The base year index (2010) is 227.27. This allows a 52% increase since the District’s formation. The maximum assessments would be as follows: Residential $3,697.45 per residential unit Non-Residential $1.74 per square foot of non-residential floor area Marina $112,499.52 Lump Sum PART D RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Page 20 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx C. Since the District (and the City) have not accepted all the improvements for the CFD to maintain, not all of this funding is required at this time. Nevertheless, the Engineer recommends an increase in funding in anticipation of accepting the improvements and recognizing that due to the age of the improvements and the use to which they have been subject since opening to the public. A 5% increase is recommended, yielding the following assessments for 2024-2025: Residential $2.660.34 per residential unit Non-Residential $1.24 per square foot of non-residential area Marina $80,943.46 Lump Sum Setting the amount in 2024-2025 does not preclude future increases in future years to the maximum allowable assessment based on the CPI. D. 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 great 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. E. 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 PART D RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES Page 21 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 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. PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 22 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx ASSESSMENT ASSESSOR'S NUMBER PARCEL NAME AND ADDRESS NUMBER 2 016-070-14 3 016-070-16 4 016-070-17 5 016-070-09 A 016-070-12 B 016-070-10 C 016-070-13 D 016-070-19 E 016-070-15 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 23 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx F 016-070-18 G 016-070-21 H 016-070-22 I 016-070-20 1-1 016-341-01 1-2 016-341-02 1-3 016-341-03 1-4 016-341-04 1-5 016-341-05 1-6 016-341-06 1-7 016-341-07 1-8 016-341-08 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 24 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 1-9 016-341-09 1-10 016-341-10 1-11 016-341-11 1-12 016-341-12 1-13 016-341-13 1-14 016-341-14 1-15 016-341-15 1-16 016-341-16 1-17 016-341-17 1-18 016-341-18 1-19 016-341-19 1-20 016-341-20 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 25 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 1-21 016-341-21 1-22 016-341-22 1-23 016-341-23 1-24 016-341-24 1-25 016-341-25 1-26 016-341-26 1-27 016-341-27 1-28 016-341-28 1-29 016-341-29 1-30 016-341-30 1-31 016-341-31 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 26 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 1-32 016-341-32 1-33 016-341-33 1-34 016-341-34 1-35 016-341-35 1-36 016-341-36 1-37 016-341-37 1-38 016-341-38 1-39 016-341-39 1-40 016-341-40 1-41 016-341-41 1-42 016-341-42 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 27 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 1-43 016-341-43 1-44 016-341-44 1-45 016-341-45 1-46 016-341-46 1-47 016-341-47 1-48 016-341-48 1-49 016-341-49 1-50 016-341-50 1-51 016-341-51 1-52 016-341-52 1-53 016-341-53 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 28 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 1-54 016-341-54 1-55 016-341-55 1-56 016-341-56 1-57 016-341-57 1-58 016-341-58 1-59 016-341-59 1-60 016-341-60 1-61 016-341-61 1-62 016-341-62 1-63 016-341-63 1-64 016-341-64 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 29 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 1-65 016-341-65 1-66 016-341-66 1-67 016-341-67 1-68 016-341-68 1-69 016-341-69 1-70 016-341-70 1-71 016-341-71 1-72 016-341-72 1-73 016-341-73 1-74 016-341-74 1-75 016-341-75 1-76 016-341-76 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 30 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 1-77 016-341-77 1-78 016-341-78 1-79 016-341-79 1-80 016-341-80 1-81 016-341-81 1-82 016-341-82 1-83 016-341-83 1-84 016-341-84 1-85 016-341-85 1-86 016-341-86 1-87 016-341-87 PART E ASSESSMENT ROLL (Please Refer to Part D – Method of Apportionment of Assessment for a Summary of Changes to Part E – Assessment Roll) Page 31 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx 1-88 016-341-88 1-89 016-341-89 1-90 016-341-90 1-91 016-341-91 1-92 016-341-92 PART F ASSESSMENT DIAGRAM Page 32 https://cityofsanrafael.sharepoint.com/sites/CityCouncilMeetings/Shared Documents/General/__Agenda Item Approval Process/2024-07-15/PW - LOCH LOMOND MARINA – MELLO-ROOS DISTRICT NO. 2/2. Loch Lomond CFD #2 Annual Engineer's Report 2024-25.docx See sheets 1 through 2 in attached packet.