HomeMy WebLinkAboutPW The Village at Loch Lomond Marina - Mello-Roos District No. 2____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 06/23/2025
Disposition: Resolution 15432
Agenda Item No: 4.i
Meeting Date: June 23, 2025
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 2025-26
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution setting the special tax rates for Fiscal Year
(FY) 2025-26 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 that includes
the construction of single-family homes, flats, townhomes, 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 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”, according 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
•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
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
•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, stormwater 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 require a buildup of reserves over a longer period 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, 2025, the Capital Reserve Fund is projected to have a fund balance of $718,154,
and an additional $238,600 will be added this upcoming year. As shown in Part B of the Engineer’s
Report, at the end of FY 2025-26, the fund balance is anticipated to be $956,754 before
unforeseen distributions in FY 2025-26.
2.Annual Maintenance
To enhance the overall appearance of the marina and surrounding areas, the City procured new
landscaping services. Enhancements implemented during the reporting period included tree
pruning, removal of invasive French broom, and general vegetation management. Routine
irrigation improvements were also carried out, and annual turf aeration was added to the standard
scope of work. Landscape maintenance was conducted by the Gardeners’ Guild, with portions of
the tree pruning and planting work completed by West Coast Arborists.
Janitorial services were also addressed during the reporting period. Due to consistent
underperformance and resident complaints, the City terminated its agreement with the original
cleaning vendor. In collaboration with the Strand Home Owner Association and combined
representative group from local business owners and the HOA, a new contractor, Safe Harbor,
was selected to maintain restrooms and surrounding facilities at an appropriate service level. The
new contract emphasizes consistent service delivery, regular staff monitoring, and monthly
invoicing. Reporting is supported by both internal quality checks and community member input
submitted via SeeClickFix.
Additional maintenance accomplishments included refurbishing benches, repairing lights, and
repainting the restroom facilities following incidents of vandalism. Routine maintenance of the pit
toilet facilities also continued throughout FY 2024–25, with pumping services coordinated one to
two times per month based on direct notice from the Strand Homeowners’ Manager.
The special tax was first levied during FY 2017-18, based upon the progress being made on the
construction of the subdivision improvements. Funds needed to be available for annual maintenance
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
once the public improvements were turned over to the City and to start funding the Capital Reserves, as
the improvements, although not yet accepted by the City, were already being used by residents and the
public.
However, various construction delays resulted in Marina Village Associates, LLC, not completing 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 except
for 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 FY 2025-26 Engineer’s Report recommends the District assess properties in the District at an amount
of $2,660.34 per residential unit. However, an assessment that contributes to the capital reserve fund will
be levied at the full amount, as the facilities must be eventually replaced based on their anticipated useful
life.
This year, the Engineer recommends that the annual assessment stay flat while the District conducts a
capital reserve study to better assess the future reserve requirements for the District. Based on the
previous year’s expenses and the estimated costs for the services under contract, the Engineer
recommends that the District maintain the same assessment for FY 2025-26 from FY 2024-25 as
calculated in the Engineer Report. This will allow the District to assess if the required maintenance will
be covered by the current assessment level or if additional increases will be needed in the following
years.
Proposed Assessments for the year 2025-26:
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 Total Anticipated Revenue for the year 2025-26
The FY 2025-26 assessment will generate $294,757.26 in revenues. The amount of the Capital Reserve
currently stands at $718,154, and an additional $238,600 will be added next year. The District will budget
$222,244 towards the Annual Maintenance needs, which is supplemented with contingency funds to
cover the difference between expected revenue and the planned maintenance expenditures as follows:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
FY 2025-26 Projected Expenses
Janitorial Contract Services $27,700 Landscaping Contract Services $60,172 City Staff Time $30,000 County Administrative Fees $140 Utilities $38,000 Pit Toilet Pumping / Servicing $5,232 Island Enhancement / Renovation $30,000 Restroom Painting / Update $5,000 Upland Area Maintenance Work $8,000 Trash Receptacle Replacements $10,000 Capital Reserve Fund Study $5,000 Electrical Investigative Work for Lighting $3,000
Total District Expenditures: $222,244
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 imposing the required special tax for FY 2025-
26. The special taxes will be included on the County property tax bills and will be collected by the County
of Marin.
FISCAL IMPACT:
The FY 2025-26 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 2025-26.
2. Adopt the resolution with modifications.
3. Direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution setting the special tax rates for Fiscal Year
(FY) 2025-26 for Community Facilities District No. 2 (The Village at Loch Lomond Marina).
ATTACHMENTS:
1. Resolution Setting the Mello-Roos Special Tax for City of San Rafael Community Facilities
District No. 2 for Fiscal Year 2025-26
2. Annual Engineers Report for Loch Lomond CFD No. 2
3. Annual Engineers Report Part C: Assessment Roll
4. Annual Engineers Report Part E: Owners List
1
RESOLUTION NO. 15432
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 2025-26
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 2025-26 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 2025-26.
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 2025-26, as set forth in the Engineer’s Annual Report for Fiscal Year
2025-26 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 special meeting of the City
Council of said City held on Monday, the 23rd day of June 2025, by the following vote, to wit:
AYES: Councilmembers: Bushey, Hill, Kertz & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Llorens Gulati
________________________
LINDSAY LARA, City Clerk
ENGINEER'S ANNUAL REPORT
FOR
COMMUNITY FACILITIES DISTRICT NO. 2
LOCH LOMOND MARINA AND THE STRAND
2025-2026
FOR THE CITY OF SAN RAFAEL
CALIFORNIA
COUNCIL MEETING
June 23, 2025
Prepared By:
City of San Rafael
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ENGINEER'S ANNUAL REPORT
2025-2026
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: ____________, 2025.
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
___________________, 2025.
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 __________, 2024 and confirmed by the
City Council of the City of San Rafael, Marin County, California, on the ___________________ day
of ___________________, 2025.
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 ____________________, 2025.
LINDSAY LARA, City Clerk, City of San Rafael, Marin County,
California
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By ______________________________________
ENGINEER'S ANNUAL REPORT
2025-2026
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 ______________, 2025.
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 ______________________________________
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Joanna Kwok, City of San Rafael, City Engineer
PART A
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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
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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
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Prior Status and Actions
For previous year’s status reports consult 2024-2025 and earlier Engineer’s Reports.
June 2025 Status and Actions
In FY2024–25, the City continued its maintenance operations within the Assessment District while
initiating key service improvements aimed at addressing long-standing concerns related to landscape
conditions, facility cleanliness, and infrastructure upkeep. The Village Master Association and Strand
Homeowners Association have remained actively engaged, with both groups expressing interest in
taking a more participatory advisory role in guiding the City’s work within the District.
To enhance the overall appearance of the marina and surrounding areas, the City procured new
landscaping services. Enhancements implemented during the reporting period included tree pruning,
removal of invasive French broom, and general vegetation management. Routine irrigation
improvements were also carried out, and annual turf aeration was added to the standard scope of
work. Landscape maintenance was conducted by Gardeners’ Guild, with portions of the tree
pruning and planting work completed by West Coast Arborists.
Janitorial services were also addressed during the reporting period. Due to consistent
underperformance and resident complaints, the City terminated its agreement with the original
cleaning vendor. In collaboration with the Associations, a new contractor, Safe Harbor, was selected
to maintain restrooms and surrounding facilities at an appropriate level of service. The new contract
emphasizes consistent service delivery, regular staff monitoring, and monthly invoicing. Reporting is
supported by both internal quality checks and community member input submitted via SeeClickFix.
Additional maintenance accomplishments included refurbishing benches, repairing lights, and
repainting the restroom facilities following incidents of vandalism. Routine maintenance of the pit
toilet facilities also continued throughout FY2024–25, with pumping services coordinated one to
two times per month based on direct notice from the Strand Homeowners’ Manager.
To improve service tracking and responsiveness, the City implemented enhancements to how
maintenance activities are documented and monitored. This has improved the City’s ability to align
field operations with community feedback and service needs more effectively.
These improvements represent a shift toward a more proactive and transparent maintenance model.
The City has prioritized consistent service provision and deeper engagement with District
stakeholders to ensure operations align with evolving needs and expectations. While fiscal
constraints remain, particularly due to the incomplete infrastructure turnover from the original
developer, the progress made in FY2024–25 lays a strong foundation for more consistent and
accountable maintenance practices in FY2025–26 and beyond.
While additional work has been completed, it appears that the level of maintenance desired by the
community continues to grow and may not be sustainable at current funding levels. Requests for
additional services will need to be evaluated in the context of available resources. City staff will
PART A
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continue to work closely with the Associations to discuss service priorities and determine what
additional work, if any, the City can realistically commit to going forward.
This year the Engineer recommends that the annual assessment stay flat while the District conducts
a capital reserve study to better assess the future reserve requirements for the District. Based on
prior year’s expenses and the estimated costs for the services under contract, the Engineer
recommends that the District maintain the same assessment for 2025-2026 by from the 2024-2025
FY as calculated in Part D and noted below. This will allow the District to assess if the required
maintenance will be covered by the current assessment level, or if additional increases will be needed
in following years.
Proposed Assessments for the year 2025-2026:
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 Total Anticipated Revenue for the year 2025-2026
The District collects assessments to cover three areas of funding: Capital Reserve Fund, Annual
Maintenance Fund and a Contingency. The 2025 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 $718,154 and an additional $238,600 will be added next year.
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 $521,481 in un-allocated maintenance since the City has only
recently accepted the improvements. As noted above, this will be evaluated during FY 2025-2026 to
determine what portion of Contingency might be allocated to the maintenance or Capital Reserve
funds. The Engineer recommends allocating more funds into the Capital Reserve Fund and reducing
the unallocated fund amount as shown in Part B.
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.
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
PART A
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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.
END OF PART A
PART B
ESTIMATE OF COSTS
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District Status: Total Estimated Fund Balance June 30, 2024 (per 2024-25 report) $1,069,485 Adjustment to match Estimated funds to Actual City Records $23,225 Actual Available Funds on July 1, 2024 $1,092,710 ASSESSMENT DISTRICT ACTIVITY 2024-2025: Assessment District Revenues: Assessment District Proceeds $294,757
Interest $34,796
Total District Revenues: $329,553
Assessment District Expenditures through March 31: Janitorial Contract Services $32,344 Landscaping Contract Services $55,000 Utilities $18,649 Pit Toilet Pumping / Servicing $5,232 City Staff Time $19,265 Estimated Assessment District Expenditures April 1 - June 30: Janitorial Contract Services $7,300
Landscaping Contract Services $14,043
City Staff Time $10,000
Utilities $20,000
Pit Toilet Pumping / Servicing $654
County Administrative Fees $140
Total District Expenditures: $182,627 Total Projected Available Funds on July 1, 2025 $1,239,635 PROJECTED ASSESSMENT DISTRICT ACTIVITY 2025-2026: Assessment District Revenues: Assessment District Proceeds $294,757
Interest $35,839
Total District Revenue: $330,596 Assessment District Expenditures: Janitorial Contract Services $27,700 Landscaping Contract Services $60,172 City Staff Time $30,000 County Administrative Fees $140
PART B
ESTIMATE OF COSTS
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Utilities $38,000 Pit Toilet Pumping / Servicing $5,232 Island Enhancement / Renovation $30,000 Restroom Painting / Update $5,000 Upland Area Maintenance Work $8,000 Trash Receptacle Replacements $10,000 Capital Reserve Fund Study $5,000 Electrical Investigative Work for Lighting $3,000
Total District Expenditures: $222,244 Assessment District Fund Balances:
Capital Reserve Fund Balance on July 1, 2024 $718,154
Capital Reserve Fund Contribution FY 2025-2026 $238,600
Estimated Capital Reserve Fund Balance June 30, 2025 $956,754
Contingency Funds Balance on July 1, 2024 $521,481
Contingency Fund Change for FY 2025-2026 -$130,248
Estimated Unallocated Funds Balance June 30, 2025 $391,234
Total Projected Available Funds on June 30, 2026: $1,347,988
END OF PART B
PART C
ASSESSMENT ROLL
(Please Refer to Part D – Method of Apportionment of Assessment
for a Summary of Changes to Part C – Assessment Roll)
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See attachment titled “Part C – Assessment Roll.”
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
METHOD OF APPORTIONMENT OF ASSESSMENT
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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
METHOD OF APPORTIONMENT OF ASSESSMENT
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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
METHOD OF APPORTIONMENT OF ASSESSMENT
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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
METHOD OF APPORTIONMENT OF ASSESSMENT
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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 inspected and accepted by
the City. If not, the Special Tax Liability shall be zero for that fiscal year.
B. STEP TWO: 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 2025 is 354.43. The base year index
(2010) is 227.27. This allows a 55.95% increase since the District’s formation. The
maximum assessments would be as follows:
Residential $3,803.99 per residential unit
Non-Residential $1.79 per square foot of non-residential floor area
Marina $115,740.99 Lump Sum
PART D
METHOD OF APPORTIONMENT OF ASSESSMENT
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C. Since the District (and the City) have not accepted all the improvements for the CFD
to maintain, not all available funding is required at this time. The Engineer
recommends recategorizing excess contingency funds as Capital Reserves funds in
anticipation of accepting the improvements. With healthy reserves no increase in the
assessment is recommended until after a full reserve fund analysis is completed,
yielding the following assessments for 2025-2026:
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 2025-2026 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
METHOD OF APPORTIONMENT OF ASSESSMENT
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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
LIST OF PROPERTY OWNERS
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See attachment titled “Part E – List of Property Owner.”
PART F
ASSESSMENT DIAGRAM
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See sheets 1 through 2 in attachment titled “Part F – Assessment Diagram”
SPECIAL
ASSESSMENT
NUMBER
AMOUNT OF
ASSESSMENT
PROPERTY
DESCRIPTION
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
2-1 $2,660.34 2 016-341-02
3-1 $0.00 3 016-341-03
4-1 $2,660.34 4 016-341-04
5-1 $2,660.34 5 016-341-05
6-1 $2,660.34 6 016-341-06
7-1 $2,660.34 7 016-341-07
8-1 $2,660.34 8 016-341-08
9-1 $2,660.34 9 016-341-09
10-1 $2,660.34 10 016-341-10
11-1 $2,660.34 11 016-341-11
12-1 $2,660.34 12 016-341-12
13-1 $2,660.34 13 016-341-13
14-1 $2,660.34 14 016-341-14
15-1 $2,660.34 15 016-341-15
16-1 $2,660.34 16 016-341-16
17-1 $2,660.34 17 016-341-17
18-1 $2,660.34 18 016-341-18
19-1 $2,660.34 19 016-341-19
20-1 $2,660.34 20 016-341-20
21-1 $2,660.34 21 016-341-21
22-1 $2,660.34 22 016-341-22
23-1 $2,660.34 23 016-341-23
24-1 $2,660.34 24 016-341-24
PART C
ASSESSMENT ROLL
SPECIAL
ASSESSMENT
NUMBER
AMOUNT OF
ASSESSMENT
PROPERTY
DESCRIPTION
ASSESSOR'S PARCEL
NUMBER
25-1 $2,660.34 25 016-341-25
26-1 $2,660.34 26 016-341-26
27-1 $2,660.34 27 016-341-27
28-1 $2,660.34 28 016-341-28
29-1 $2,660.34 29 016-341-29
30-1 $2,660.34 30 016-341-30
31-1 $2,660.34 31 016-341-31
32-1 $2,660.34 32 016-341-32
33-1 $2,660.34 33 016-341-33
34-1 $2,660.34 34 016-341-34
35-1 $2,660.34 35 016-341-35
36-1 $0.00 36 016-341-36
37-1 $2,660.34 37 016-341-37
38-1 $0.00 38 016-341-38
39-1 $2,660.34 39 016-341-39
40-1 $2,660.34 40 016-341-40
41-1 $0.00 41 016-341-41
42-1 $2,660.34 42 016-341-42
43-1 $0.00 43 016-341-43
44-1 $2,660.34 44 016-341-44
45-1 $2,660.34 45 016-341-45
46-1 $0.00 46 016-341-46
47-1 $2,660.34 47 016-341-47
48-1 $0.00 48 016-341-48
49-1 $2,660.34 49 016-341-49
50-1 $2,660.34 50 016-341-50
51-1 $0.00 51 016-341-51
52-1 $2,660.34 52 016-341-52
53-1 $2,660.34 53 016-341-53
54-1 $2,660.34 54 016-341-54
55-1 $2,660.34 55 016-341-55
56-1 $2,660.34 56 016-341-56
57-1 $0.00 57 016-341-57
58-1 $2,660.34 58 016-341-58
59-1 $2,660.34 59 016-341-59
60-1 $0.00 60 016-341-60
61-1 $2,660.34 61 016-341-61
62-1 $2,660.34 62 016-341-62
63-1 $2,660.34 63 016-341-63
SPECIAL
ASSESSMENT
NUMBER
AMOUNT OF
ASSESSMENT
PROPERTY
DESCRIPTION
ASSESSOR'S PARCEL
NUMBER
64-1 $2,660.34 64 016-341-64
65-1 $2,660.34 65 016-341-65
66-1 $2,660.34 66 016-341-66
67-1 $2,660.34 67 016-341-67
68-1 $2,660.34 68 016-341-68
69-1 $2,660.34 69 016-341-69
70-1 $2,660.34 70 016-341-70
71-1 $2,660.34 71 016-341-71
72-1 $2,660.34 72 016-341-72
73-1 $2,660.34 73 016-341-73
74-1 $2,660.34 74 016-341-74
75-1 $2,660.34 75 016-341-75
76-1 $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
G $0.00 G 016-341-92