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HomeMy WebLinkAbout35-City Administrator CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Fred Wilson, City Administrator Subject: Resolution of the Mayor and Common Council of the City of San Bernardino declaring and establishing the formation of a Community Facilities District, authorizing submittal of levy of special taxes to the qualified electors, making certain preliminary findings and overruling protests (CFD NO. 1033). MeetingDate: 6/21/2004 Dept: City Administrator Date: May 13,20040R\G\NAL Synopsis of Previous Council Action: 04/19/04 - the Mayor and Common Council approved several items as follows: . Resolution approving Goals and Policies for the Use of Community Facilities Districts . Resolution Declaring Intention to Establish a Community Facilities District for New Development for the Ongoing Operation and maintenance of a fire station for the Verdemont Area and to levy a special tax, setting a public hearing, and authorizing the publication and Mailing of Notice Thereof (CFD No. 1033), and repealing Resolution No. 2003-361. . Resolution approving agreement with special legal counsel regarding CFD No. 1033. . A Resolution directing the preparation ofa map and an engineer's report for CFD No. 1033. . Resolution approving Form of Mitigation Agreement in the Verdemont fire station service area and authorizing execution of the final Form of Mitigation Agreements with participating developers (CFD No. 1033) Recommended motion: Adopt Resolution. Contact person: Teri Baker Phone: 5122 Supporting data attached: Staff Report & Resolution Ward: 5 FUNDING REQUIREMENTS: Amount: None Source: (Ace!. No.) (Ace!. Description) Finance: Council Notes: ~~ ~7l'C'A-ZH\ Agenda Item No. 3S-. 0/:2 ,/O Y CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Subiect: Public Hearing and Resolution of the Mayor and Common Council of the City of San Bernardino Declaring and Establishing the Formation of a Community Facilities District, Authorizing Submittal of Levy of Special Taxes to the Qualified Electors, Making Certain Preliminary Findings and Overruling Protests (CFD No.1 033) Backefound: On April 19, 2004, the Mayor and Common Council approved and adopted a Resolution Number 2004-104 (Resolution of Intention), which authorized the initiation of proceedings for the formation of a Community Facilities District for the payment of a portion of the operations and maintenance costs of the Verdemont Fire Station ("CFD No. 1033"). Pursuant to the requirements of the "Mello-Roos Community Facilities Act of 1982" (commencing with Govermnent Code Section 53311, the "Act"), the previously adopted Resolution of Intention set the public hearing on the formation of CFD No.1 033 for the June 7, 2004 meeting of the Mayor and Common Council. A Notice of a June 7, 2004 public hearing was published on May 26, 2004 in the SUN Newspaper. However, the meeting was continued until June 21, 2004. The Resolution of Intention also, among other matters, called for the preparation of an Engineer's Report ("Report") concerning the operations and maintenance of the fire station facilities, and a map of the proposed boundaries of CFD No. 1033 ("Map") to be recorded with the County of San Bernardino Auditor/Controller-Recorder's Office. The Map and the Report (copies of which have been made available at the City Clerk's office) would be approved after the public hearing as part of the formation proceedings for CFD No. 1033. Assuming that there is no majority protest by the affected property owners within the boundaries ofCFD No. 1033, the Mayor and the Common Council may proceed with the adoption of the above-referenced Resolution of Formation, which formally establishes the existence of CFD No. 1033. The Resolution of Formation (which also includes information contained in the Resolution of Intention, including the Rate and Method of Apportiomnent of Special Tax) makes findings regarding the Report and the Map, and also includes the findings that the proposed special tax levy has not been precluded by majority protest and that all proceedings regarding the formation of CFD No. 1033 have been conducted in conformity with the requirements of the Act. In addition to formally establishing CFD No. 1033, the Resolution of Formation calls for an election of the qualified electors, namely, the owners of land within CFD No. 1033, to approve the levy of the Special Tax. The Resolution of Formation also describes the procedure for conducting such election, in this case by mailed-ballot election to be conducted by the City, wherein such landowners would have one vote for each acre of land he or she owns within the boundaries ofCFD No. 1033. Since the Act requires that the special landowner election be held at least ninety (90) days after the public hearing (unless unanimously waived by all of the affected property 4816-7527-0144.1 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT owners, in which event the election may be held at an earlier date), the Resolution of Formation sets such special landowners election for the meeting of September 20, 2004, and calls for all ballots to be received at a specified time prior to the meeting. If two- thirds of the ballots approve the levy and collection of the Special Tax within CFD No. 1033, then the Mayor and Common Council will be presented a resolution canvassing the results of the election and an ordinance (for first reading) imposing the special tax levy on the property owners within CFD No. 1033, at the September 20,2004 meeting of the Mayor and Common Council. Fiscal Impact: The City has approved the form of the Mitigation Agreement for CFD No. 1033, which provides that participating property owners agree to pay for the formation expenses incurred by the City relative to the establishment of CFD No. 1033. Accordingly, the costs associated with the formation of CFD No. 1033 will be borne by participation landowners. Recommendation: Open public hearing on formation of CFD No. 1033, take public comment, close hearing and adopt Resolution of Formation. 4816-7527-0144.1 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) WHEREAS, the City of San Bernardino, California (the "City"), is a municipal corporation and charter city, duly organized and existing pursuant to the provisions of the Constitution of the State of California; and WHEREAS, the Mayor and Common Council of the City have previously adopted Resolution No.2004-104 (the "Resolution ofIntention") to create Community Facilities District No. 1033 ("CFD No. 1033") pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," as amended (the "Act"), Chapter 2.5 of Part I of Division 2 (commencing with Section 53311) of the California Government Code; and WHEREAS, the Mayor and Common Council have declared their intention that a portion of the operations and maintenance of the Verdemont Fire Station, necessary to provide a continued fire protection service within the Verdemont Area as new development continues to occur in areas northerly of existing fire station service areas, be paid through the levy of a special tax; and WHEREAS, the Mayor and Common Council have directed the Staff of the City to prepare appropriate boundary maps for territory which may be included within the boundaries of CFD No. 1033 (the "Map") and the Map has been presented to the Mayor and Common Council and has been made a part of the record of the hearing on the Resolution of Intention to establish CFD No. 1033; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) WHEREAS, notice of a public hearing relating to the establishment of CFD No. 1033, the extent of CFD No. 1033, the furnishing of certain facilities and services, the rate and method of apportionment of the special tax, and all other related matters have been duly given, and a report ("Engineer's Report") as ordered by the Mayor and Common Council has been presented to the Mayor and Common Council and has been made a part of the record of the hearing on the Resolution ofIntention to establish CFD No. 1033; and WHEREAS, the Mayor and Common Council have determined that there are less than twelve (12) registered voters residing within the territory of CFD No. 1033, and have been for each of at least ninety (90) days preceding the date of said hearing, and that the facilities and services to be financed by CFD No. 1033 are necessary to meet increased demands placed upon the City as result of new development occurring in CFD No. 1033; and WHEREAS, the Mayor and Common Council intend to submit the levy of the required special tax to the landowners ofCFD No. 1033, said landowners being the qualified electors as authorized by law; and WHEREAS, the Mayor and Common Council have determined that written protests of fifty percent (50%) or more of the registered voters, or six (6) registered voters, whichever is greater, residing within the boundaries of the proposed District, or of owners representing one- half (y,) or more of the area of land proposed to be included in CFD No. 1033, were not filed with the City Clerk on or before the time fixed for said public hearing; and WHEREAS, a public hearing was convened by the Mayor and Common Council on June 21, 2004, at the hour of 4:00 p.m., at the regular meeting place of the Mayor and Common S:\MelloRoos\ 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) Council, being the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California 92418, at which hearing the Mayor and Common Council considered the establishment of CFD No. 1033, the proposed rate and method of apportionment of the special tax therein, and all other matters as set forth in the Report; and WHEREAS, all written protests and other written communications, if any, were publicly read at said hearing and all persons desiring to be heard were fully heard, and all such protests and communications have been considered by the Mayor and Common Council, and at this time the Mayor and Common Council are desirous to proceed with the establishment of CFD NO.1 033; and WHEREAS, at this time all steps and procedures relating to the formation of CFD No. 1033 have been accomplished; and WHEREAS, the Mayor and Common Council intend at this time to order the establishment of CFD No. 1033. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE MA YOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Section 1. Recitals The above recitals are all true and correct. Section 2. Establishment of Formation ofCFD No. 1033 S:\MelloRoos\ , ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) The Mayor and Common Council hereby establish and declare the formation of the Community Facilities District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 1033". Section 3. District Boundaries The boundaries and parcels of land in which the public facilities are to be provided and on which special taxes will be levied in order to pay the costs and expenses for said public facilities are generally described as follows: All property within the boundaries of Community Facilities District No. 1033, as shown on a map as previously approved by the Mayor and Common Council, said map designated by the name ofCFD No. 1033. a copy of which is on file in the office of the City Clerk. Secti on 4. Description of Public Facilities A general description of the public facilities and services which the Mayor and Common Council have determined shall be provided within CFD No. 1033, and of the incidental expenses in connection therewith, is as follows: The continued operation and maintenance of the Verdemont Fire Station, including but not limited to payment of compensation of employees, including salaries and benefits, maintenance and operation of fire safety vehicles and the fire station structures, any other expenses required to keep the such equipment and improvements in fit operating condition and any incidental expenses (collectively, the "O&M Expenses"), and all necessary administrative expenses of the City. The descriptions contained herein are general in nature and do not necessarily include all related and appurtenant costs and expenses necessary for the proposed facilities and services. For a full and complete description of said facilities, reference is made to the Engineer's S:\MelloRoos\ 4 .' c c c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 to occur in areas northerly of existing fire station service areas, be paid through the levy of a 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) WHEREAS. the City of San Bernardino, California (the "City"). is a municipal corporation and charter city, duly organized and existing pursuant to the provisions of the Constitution of the State of California; and WHEREAS, the Mayor and Common Council of the City have previously adopted Resolution No. 2004-104 (the "Resolution of Intention") to create Community Facilities District No. 1033 ("CFD No. 1033") pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," as amended (the "Act"), Chapter 2.5 of Part I of Division 2 (commencing with Section 53311) of the California Government Code; and WHEREAS, the Mayor and Common Council have declared their intention that a portion of the operations and maintenance of the V erdemont Fire Station, necessary to provide a continued fire protection service within the Verdemont Area as new development continues special tax; and WHEREAS, the Mayor and Common Council have directed the Staff of the City to prepare appropriate boundary maps for territory which may be included within the boundaries of CFD No. 1033 (the "Map") and the Map has been presented to the Mayor and Common Council and has been made a part of the record of the hearing on the Resolution of Intention to establish CFD No. 1033; and ilD.~~ 61z/~ Ie c c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) WHEREAS. notice of a public hearing relating to the establishment of CFD No. 1033, the extent of CFD No. 1033, the furnishing of certain facilities and services, the rate and method of apportionment of the special tax, and all other related matters have been duly given, and a report ("Engineer's Report") as ordered by the Mayor and Common Council has been presented to the Mayor and Common Council and has been made a part of the record of the hearing on the Resolution ofIntention to establish CFD No. 1033; and WHEREAS, the Mayor and Common Council have determined that there are less than twelve (12) registered voters residing within the territory of CFD No. 1033, and have been for each of at least ninety (90) days preceding the date of said hearing, and that the facilities and services to be financed by CFD No. 1033 are necessary to meet increased demands placed upon the City as result of new development occurring in CFD No. 1033; and WHEREAS, the Mayor and Common Council intend to submit the levy of the required special tax to the landowners of CFD No. 1033, said landowners being the qualified electors as authorized by law; and WHEREAS, the Mayor and Common Council have determined that written protests of fifty percent (50%) or more of the registered voters, or six (6) registered voters, whichever is greater, residing within the boundaries of the proposed District, or of owners representing one- half (\I,) or more of the area ofland proposed to be included in CFD No. 1033, were not filed with the City Clerk on or before the time fixed for said public hearing; and III III 4833-0718-15681 2 c o c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMOl'l COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMA TIO)\' OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) WHEREAS, a public hearing was convened by the Ma~or and Common Council on June 7, 2004, at the hour of 4:00 p.m., then continued to and reconvened on June 21, 2004, at the hour of 4:00 p.m., at the regular meeting place of the Mayor and Common Council, being the Council Chambers, City Hall, 300 North "0" Street, San Bernardino, California, 92418, at which hearing the Mayor and Common Council considered the establishment of CFO No. 1033, the proposed rate and method of apportionment of the special tax therein, and all other matters as set forth in the Engineer's Report; and WHEREAS, all written protests and other written communications, if any, were publicly read at said hearing and all persons desiring to be heard were fully heard, and all such protests and communications have been considered by the Mayor and Common Council, and at this time the Mayor and Common Council are desirous to proceed with the establishment of CFO No. 1033; and WHEREAS, at this time all steps and procedures relating to the formation of CFO No. 1033 have been accomplished; and WHEREAS, the Mayor and Common Council intend at this time to order the establishment ofCFO No. 1033. III III III III III Ii' .,/ 4833-0718-] 568.] 3 c o c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE MA YOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Section I. Rec i tal s The above recitals are all true and correct. Establishment of Formation of CFD No. 1033 Section 2. The Mayor and Common Council hereby establish and declare the formation of the Community Facilities District known and designated as "COMMUNITY FACILITIES DISTRICT NO.1 033". Section 3. District Boundaries The boundaries and parcels of land in which the public facilities are to be provided and on which special taxes will be levied in order to pay the costs and expenses for said public facilities are generally described as follows: All property within the boundaries of Community Facilities District No. 1033, as shown on a map as previously approved by the Mayor and Common Council, said map designated by the name of CFD No. 1033, a copy of which is on file in the office of the City Clerk, and as set forth in the Book of Maps of Assessments and Community Facilities Districts in the in the San Bernardino County Recorder's Office, as previuusly recorded pursuant to Section 3111 of the Streets and Highways Code. III III III 4833-0718-15681 4 o o c 1 2 3 4 5 6 7 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATI01\; OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) Section 4. Description of Public Capital Facilities A general description of the public capital facilities which the Mayor and Common Council have determined shall be provided within CFD No. 1033, and of the incidental expenses in connection therewith, is as follows: The continued operation and maintenance of 8 the Verdemont Fire Station, including but not limited to payment of compensation of 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 employees, including salaries and benefits, maintenance and operation of fire safety vehicles and the fire station structures, any other expenses required to keep the such equipment and improvements in fit operating condition and any incidental expenses (collectively, the "O&M Expenses"), and all necessary administrative expenses of the City. The descriptions contained herein are general in nature and do not necessarily include all related and appurtenant costs and .expenses necessary for the proposed facilities and services.. For a full and complete description of said facilities, reference is made to the Engineer's Report, which is entitled "Engineer's Report, Special Tax District, CFD No. 1033, Verdemont Fire Station Service Area", which is attached hereto and incorporated herein hy this reference as Exhibit "A", and which Engineer's Report is on file in the office of the City Clerk. III III III III III III 48)),0718,15681 5 c o c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMA TIO:\" OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) Section 5. Special Tax Authorized That a special tax, except where funds are otherwise available, is hereby authorized. subject to voter approval, to be levied annually within the boundaries of CFD No. 1033. For particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit "B" (the "Rate and Method") which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed District to clearly estimate the annual amount that said person will have to pay for said facilities and services. Said special tax shall be utilized to pay for the 0 & M Expenses. Section 6. Preparation of Special Tax Roll The office which will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act is the City Clerk, who is hereby further directed to establish procedures to promptly respond to inquiries concerning current and future tax liability. Section 7. Special Tax Lien Upon recordation ofa notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California (the "Code"), a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in CFD No. 1033 and this lien shall continue in force and effect until the special tax obligation is canceled in accordance with law or until collection of the tax by the Mayor and Common Council ceases in accordance with the Rate and Method of Apportionment of such special tax. 4833-0718-1568.1 6 c o c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) Section 8. Certification of Map The City Clerk is hereby authorized and directed to endorse the Certificate on the Map evidencing the date and adoption of this Resolution, and is further authorized and directed to file said Map with the County Recorder of the County of San Bernardino within 10 days after the approval of the Map, which shall be within 10 days of the adoption hereof. Section 9. No Maioritv Protest That protests against the establishment of CFD No. 1033, the extent of CFD No. 1033, the furnishing of said facilities and services, the rate and method of appol1ionment of the special tax, the estimates of the costs thereof, or other related matters, were not signed and duly filed with the City Clerk at or before the time set for said hearing by fifty percent (50%) or more of the registered voters, or six (6) registered voters, whichever is greater, or by propel1y 15 16 17 18 19 20 21 22 23 24 25 III 26 III 27 28 owners of more than one-half (\12) of the area ofland within the proposed District. Section 10. Protests Overruled and Denied Any protests, and each of them, are hereby overruled and denied. Section I ] . Approval of Engineer's Report The Engineer's Report, as now submitted and attached hereto as Exhibit "A", is hereby approved and is made a part of the record of the hearing, and is ordered to be kept on file in the City Clerks's Office and open for public inspection, III 4833.0718.1568.1 7 o o c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) Section 12. Approval of Map The Map, as now submitted and attached hereto as Exhibit "C", is hereby approved and is made a part of the record of the hearing, and is ordered to be kept on file with the transcript of these proceedings and open for public inspection. Section 13. Landowners to Vote on Levv of Special Tax Since there are fewer than 12 registered voters within CFD No. 1033, the levy of the special tax shall be submitted to the landowners, as the qualified electors of CFD No. 1033 with each acre or portion thereof representing one vote. The ballots for the special election shall be distributed by personal or mailed delivery to each of the landowners within CFD No. 1033. Each landowner shall have one vote for each acre or portion thereof that he, she or it owns within CFD No. 1033, as provided in Section 53326 of the Act. Section 14. City Clerk Designated Election Official The City Clerk is hereby designated as the election official for the purposes of conducting the election in CFD No. 1031 and is hereby requested to take all steps necessary to hold the election in accordance with the Act and these specifications. Section 15. Submission of Ouest ion of Lev v of Special Tax The Mayor and Common Council hereby submit the question of levying such special tax for CFD No. 1033 to the qualified electors within CFD No. 1033, at an election to be held on Monday, September 20, 2004 at 4:00 p.m.. with each landowner having one (I) vote for each acre or portion thereof of land which he or she owns within CFD No. 1033, with all ballots to be submitted to the City Clerk before 12:00 p.m. on September 20, 2004, all in accordance with and subject to the Act, the terms of which shall be applicable to such election. 4833-0718-1568.1 8 o o c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) Section 16. Canvass of Returns The City Clerk as the election official is authorized to canvass the returns of the election pursuant to Section 23306 of the Elections Code. and the Mayor and Common Council are thereafter authorized to certify the results of the election. Section 17. Levy ofSoecial Tax Following Election If two-thirds (2/3) of the votes cast upon the question of levying such special tax are cast in favor of levying that tax, as determined by the Mayor and Common Council after the canvass of the returns of such consolidated election, the Mayor and Common Council may levy such special tax within the territory of CFD No. 1033 under the Act in the amount and for the purposes as specified in this resolution. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in this Resolution, subject to the Act, except that such special tax may be levied at a rate lower than specified therein. Such special tax may be levied only so long as it is needed to pay for the O&M Expenses, together with administrative and other expenses ofCFD No. 1033, incurred by the City and CFD No. 1033. Section 18. Necessity of Services and Facilities The Mayor and Common Council hereby determine that the O&M Expenses to be financed by CFD No. ] 033, as described above in said Engineer's Report, are necessary to meet increased demands placed upon the City and other local agencies having jurisdiction within CFD No. 1033, as a result of development occurring in CFD No. 1033 and that the qualified electors ofCFD No. 1033 shall be the landowners ofCFD No. 1033. III 4833-0718.] 568.1 9 o o c A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 III 24 III 25 III 26 III 27 28 Section 19. Declaration of Conformitv with Legal Requirements The Mayor and Common Council hereby determines that all proceedings prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Act, and that this determination is made pursuant to the provisions and authorization of Section 53325.1 of the California Government Code. Section 20. Effective Date This Resolution shall take effect upon adoption. Section 21. Certification The City Clerk shall certify to the passage and adoption of this resolution, enter the same in the book for original Resolutions of the City, and make a minute of passage and adoption thereof in the records of the proceedings of the Mayor and Common Council of the City. in the minutes of the meeting at which this resolution is passed and adopted. .III III III III III 4833-0718-15681 ]0 o o c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING AND ESTABLISHING THE FORMATION OF A COMMUNITY FACILITIES DISTRICT, AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS, MAKING CERTAIN PRELIMINARY FINDINGS AND OVERRULING PROTESTS (CFD NO. 1033) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting day of , 2004, by the following vote, to wit: thereof, held on the Navs Abstain Absent Council Members: Aves ESTRADA LONGVILLE MCGINNIS DERRY KELLEY JOHNSON MC CAMMACK 15 16 17 18 19 20 21 22 23 24 By: 25 26 27 28 Rachel G. Clark, City Clerk The foregoing resolution is hereby approved this day of 2004. Judith Valles, Mayor City of San Bernardino Approved as to Form and Legal Content: .l es F. Penman ity Attorney 4833-0718-1568.1 11 o o c EXHIBIT A ENGINEER'S REPORT SPECIAL TAX DISTRICT CFD No. 1033 VERDEMONT FIRE ST A nON SERVICE AREA June 21,2004 Prepared by David Evans and Associates, Inc. And the Development Services Department City Engineer City of San Bernardino, California Prepared For City of San Bernardino, California Community Facilities District No. 1033 4837- 7301-2480. I o I. INTRODUCTION AND PURPOSE o c On April 19, 2004, the Mayor and Common Council of the City of San Bernardino ("City") approved and adopted "A Resolution of the Mayor and Common Council of the City of San Bernardino declaring Intention to Establish a Community Facilities District for New Development for the Ongoing Operation and Maintenance of a Fire Station for the Verdemont Fire Station Service Area and to Levy a Special Tax within said Community Facilities District, Setting a Public Hearing Thereon and Authorizing the Publication and Mailing of Notice Thereof (Community Facilities District No. 1033)" (the "Resolution of Intention"), pursuant to the provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part I, Division 2, Title 5 of the Government Code (commencing with Section 53311, the "Act"), and specifically Section 53321.5 thereof. The Resolution of Intention expressly ordered the filing of a v,Titten Engineer's Report of proposed Community Facilities District No. 1033 ("CFD No. 1033"), and directed that said Engineer's Report include the following: I) A brief description of the services, maintenance and operating costs of public facilities which will be provided within CFD No. 1033, i.e., the estimated operations and maintenance expenses of the Verdemont Fire Station, Station No. 232 at 6055 Palm Avenue, San Bernardino, California ("Station"). including but not limited to payment of compensation of employees, including salaries and benefits, maintenance and operation of fire safety vehicles and the fire station structures, any other expenses required to keep the such equipment and improvements in fit operating condition and any incidental expenses (collectively, the "O&M Expenses"). which will be incurred as a result of providing the services and which will in the opinion of the preparer of the Engineer's Report, be required to adequately meet the needs of CFD No. 1033 for the next five (5) years; and Il An estimate of the cost of providing for the O&M Expenses for the first five (5) years for each zone within CFD No. 1033, including a brief explanation justifying the amount of the Special Tax for each zone type and any increase or decrease thereof in subsequent years as well as the estimated In-Lieu Fee that may be generated for each zone for all years evaluated in the Engineer's Report. Accordingly, the authorized representatives of the City have caused this Engineer's Report of CFD No. 1033 to be prepared by David Evans & Associates, Inc., pursuant to the provisions of the Act and the Resolution of Intention. This Engineer's Report is intended to provide background information and factual data to enable the Mayor and Common Council to take appropriate actions to impose the requirements upon new development within the Verdemont Fire Station Service Area for funding of a portion of the O&M Expenses to serve operations and maintenance of the Station. 4822-7426-96961 [I).doc Engmeer's Repon CFD No 1031 6-14-04 o II. BACKGROUND (a) It is appropriate and desirable for the City to institute a partial funding source (i.e. the proposed CFO No. 1033) in order to offset the costs of the norma! operating expenses of the Station that would otherwise be required to be paid in total by the City General Fund. (b) Existing residential structures will not be included in the proposed CFO No. 1033. Special taxes of CFO No. 1033 will be imposed only on new residential, commercial, office, and industrial development within the Verdemont Fire Station Service Area. o The City has the legal ability during the environmental review of proposed development within the Area that would require the owner (or the owner's designee) to participate in CFO No. 1033 and pay a "Special Tax" for a portion of the O&M Expenses, (or, in the alternative, prior to the issuance of each certificate of occupancy for residential development, pay an "In-Lieu Fee" in the amount [for the Initial Fiscal Year 2004-2005] of $6,349.88 per dwelling unit, whether for a single family or a multi-family unit, and prior to the issuance of each certificate of occupancy for commerciallretail/office/industrial zoning classifications pay an in-lieu fee in the amount of $44,350.4 7 per acre of development as set forth on a site plan of development). The Special Tax shall be increased by an amount not to exceed 2 % of the amount in effect for the previous Fiscal Year, up to the Fiscal Year commencing July 1,2033. The Special Tax shall terminate as to such Assessor's Parcel at the close of the thirtieth (30tl1) Fiscal Year following the beginning of the Initial Fiscal Year 2004-2005, i.e., the Special Tax shall terminate as of June 30, 2034. See Exhibit "A", "Calculation and assumptions for final Verdemont Fire Station CFO special tax". This requirement would apply only to new residential, commercial. retail and industrial development within the Verdemont Fire Station Service Area. (c) On April 19, 2004, the Mayor and Common Council approved and adopted the Resolution of Intention, which authorized the initiation of proceedings for the formation of CFO No. 1033. The Resolution ofInteriiion set the public hearing on the formation of CFO No. 1033 for the June 7, 2004 meeting of the Mayor and Common Council, which hereby was continued to June 21, 2004. Notice of the June 7, 2004 public hearing was published on May 26, 2004, and notice was republished regarding the hearing's continuance to June 21,2004. (d). The Resolution of Intention also called for the preparation and the recordation of a map of the proposed boundaries of CFO No.1 033 ("Map") to be recorded with the County of San Bernardino Auditor/Controller-Recorder's Office. A copy of the Map is attached hereto as Exhibit "C". The Map and this Engineer's Report (copies of which have been made available at the City Clerk's office) would be approved after the public hearing as part of the formation proceedings for CFO No. 1033. c (e) Assuming that there is no majority protest by the affected property owners within the boundaries of CFO No. 1033, the Mayor and the Common Council may approve a "Resolution of Formation", which formally establishes the existence of CFO No. 1033. The Resolution of Formation (which includes information contained in the Resolution of 4822.7426.9696 I [I Jdoc E"~"'~t.t ; Repel'-: (TD "0 1'.J3.> t'.14-'.'~ 2 o o c Intention and attaches the Rate and Method of Apportionment of Special Tax for CFD No. 1033as an exhibit) makes findings regarding the Report and the Map, including the findings that the proposed special tax levy has not been precluded by majority protest and that all proceedings regarding the formation of CFD No. 1033 have been conducted in conformity with the requirements of the Act. (f) In addition to formally establishing CFD No. 1033, the Resolution of Formation calls for an election of the qualified electors. The City has determined that there are less than twelve (12) residents within the proposed boundaries ofCFD No. 1033, meaning that the qualified electors are the owners of land within CFD No. 1033, to approve the levy of the Special Tax. The Act requires that the special landowner election be held at leas! ninety (90) days after the public hearing (unless unanimously waived by all of the affected property owners, in which event the election may be held at an earlier date), the Resolution of Formation sets such special landowners election for the meeting of September 20. 2004, and calls for all ballots to be received at a specified time prior to the meeting. If two-thirds (2/3) of the ballots approve the levy and collection of the special tax within CFD No. 1033, then the Mayor and Common Council will be presented a resolution canvassing the results of the election and an ordinance (for first reading) imposing the special tax levy on the property owners within CFD No. ] 033, at the September 20, 2004 meeting of the Mayor and Common Council. The Resolution of F ormation also describes the procedure for conducting such an election, in this case by mailed-ballot election to be conducted by the City, wherein such landowners would have one vote for each acre ofland he or she owns within the boundary ofCFD No. 1033. (g) The City has concurrently with the adoption of the Resolution of Intention approved the form of the Mitigation Agreement for CFD No. ] 033. which provides that participating property owners agree to pay for the formation expenses incurred by the City relative to the establishment of CFD No. 1033. Accordingly. the costs associated with the formation ofCFD No. ]033 will be borne by participating landowners. III. NECESSITY FOR AN ADDITIONAL FIRE STATION IN VERDEMONT FIRE STATION SERVICE AREA In ] 998, City Fire Department administrative staff requested that a process be developed io study and adopt emergency service delivery management and planning standards. This was prompted in part by the need to consider the addition of a fire station to serve the Verdemont Fire Station Service Area. Without planning standards, the Verdemont Station concept could not be evaluated objectively. Subsequently, the Mayor and Common Council approved the establishment of a Fire Department Planning Standards Ad Hoc Committee (the "Committee") on September 21, 1998. In November of 1998, the Committee began meeting to study and analyze topics relevant to establishing emergency service delivery standards. On March 28, 2000, the Committee agreed upon certain standards to recommend to the Mayor and Common Council for adoption. The standards and other recommendations are listed below. 4822- 7426-96961 [1 I.doc En~Hlee,s Report CFO 1\0 1033 6.14.04 3 o o c A. Recommended Standards . Dispatch processing time shall be sixty (60) seconds or less for 90% of Calls for Service (CFS). . Turnout time shall be 60 seconds or less for 90% of CFS. . Drive time from fire station to arrival on-scene at incidents shall be five (5) minutes or less for 90% of CFS. B. Other Recommended Actions . Automate the emergency medical pre-arrival and priority dispatching system. . Adopt a fire station siting plan that is consistent with the 5-minute drive time standard. . Study and analyze issues pertinent to the City's relatively high emergency incident call volume. An analysis of calendar year 2002 CFS to the Verdemont Fire Station Service Area showed that the 5 minute drive time standard was met for about 45% of 245 CFS. This quantified the need for a fire station to serve the Verdemont Fire Station Service Area. IV. STRUCTURE OF THE SPECIAL TAX (a) This Report and the proposal contained herein deal solely with the levy of the Special Tax for the payment of certain operating and maintenance costs of the Station, not the debt service or other capital outlay and replacement costs associated with any public facility. Section IV.(d) below sets forth the items that are deemed to be the "Included Items" and the "Excluded Items" of those which are eligible for payment by the City from the Special Tax levied within the CFD No. 1033. CFD No. 1033 will be limited solely to the payment of those Included Items related to the operation and maintenance of the Station. The City will impose an annual Special Tax lien upon all property within tbe CFD No. 1033 and the City will ensure that the Special Taxes are paid by each property owner in the same manner as the general property taxes are paid to the County of San Bernardino. The City reserves the right to enforce any and all unpaid Special Taxes and the liens thereof, including interest and penalties and collection costs, in the manner authorized by the Act through a separate legal action to be filed by the City separate and apart from any tax collection proceedings initiated by the County of San Bernardino for the payment of defaulted general property taxes. (b) The Special Tax shall be levied in conformance with the Rate and Method of Apportionment of Special Tax - Community Facilities District NO.1 033, City of San Bernardino ("Rate and Method") (the Rate and Method is set forth as Exhibit "B" hereto). (c) All of the property located within CFD No. 1033, unless exempted by law or by the Rate and Method, shall be subject to the Special Tax. Each year the Special Tax shall be levied subject to the methodology and Maximum Special Tax limits of the Rate and Method. The Special Tax imposed is a "special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property", pursuant to Section 53325.3 of the Act. The Special Tax may be "on or based on a benefit received by 4822- 7426-9696.1 [11.doc E"gmee(s Report CFD No IO~., 6. i4.0~ 4 o parcels of real property, the cost of making facilities or authorized services available to each parcel, or some other reasonable basis as determined by the legislative body"; however, the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. (d) The costs of the annual O&M Expenses of the Station shall only include the following described Included Items and shall specifically exclude the Excluded Items from payment through the CFD No. 1033: (i) Included Items: Personnel costs, salaries, benefits, administrative charges, bookkeeping and accounting incurred by the Fire Department (or other related City Departments); repair and maintenance of all buildings, facilities, personal equipment and fire fighting equipment exclusive of the acquisition costs of any vehicles of any nature but including the repair and maintenance, oil, fuel, tires, insurance, and upkeep of all such vehicles; uniforms, firefighting protective equipment and clothing; hoses, ladders, and other fuefighting and life safety and protective equipment and first aid and CPR equipment; utilities, furnishings, food, paper products, office products and office equipment and supplies, communications equipment, radios, computers and telephones; building maintenance and upkeep, landscape maintenance and supplies, painting of buildings, replacement of worn or broken building components that are typically accounted by the City as expense items and not as capital improvement items. o (ii) Excluded Items: Excluded items are all items that are not for the direct operation and/or maintenance of the Station. These include but are not limited to the following: construction of the fire station, purchase or lease of any fire truck, pick-up truck, ambulances or any other motorized vehicles; and/or the replacement or upgrade of any component of the Station that has a useful life of more than 10 years. (e) Since 2002 there has been an increased interest in development within the Verdemont Fire Station Service Area, and there are potentially 382 single family residential housing units that could be constructed within the initial boundaries of the CFD No. 1033 within the next ten (10) years. Such new construction activity will exacerbate the need for the Station and particularly as development trends in the Verdemont Fire Station Service Area extend northerly towards Little League Drive and northerly from Little League Drive into the Devore area of the City. The third property acquired by the EDA in 1999, known as the "Bice" property (Parcell), is severely impacted by the lack of a suitable final tract map, the designation of the "Bice" property as critical habitat for the San Bernardino Kangaroo Rat, and the requirement for numerous flood control and street realignment projects as a condition of development. The Bice property is located northerly of Little League Drive and in the area most impacted by the present lack of a fire station in the Verdemont Fire Station Service Area. o (f) Several developers representing the vacant land holdings, eXlstmg developers with projects in the area, and other interested parties have once again contacted the City to express interests to initiate development activities within the Verdemont Fire Station Service Area. Based upon improvements in the general real estate market for single-family residential development within the City and the availability of low interest rate mortgage financing at this time, the City anticipates that additional demands will be placed upon the infrastructure needs 4822-7426.9696.1 [lldoc Engineer'sRepol1CFDNo 10336-14-04 5 ~~~~~ It 3& fp/~II()'1 within the Verdemont Fire Station Service Area upon the development of the presently proposed o projects. (g) A May 2004 estimate of the projected number of residential housing units comprises four "parcels" within the Verdemont Fire Station Service Area identified as Nos. 1-4 on the Proposed Community Facilities District No. 1033 Map. Parcell (Century Village Homes, Alternative "C", formerly the Bice property) is projected to contain 275 housing lots. Parcel 2 is owned by the City and currently there are 19 housing units planned. Parcel 3 is Tentative Tract No. 15940, owned by Monica Morrow, et ai, and currently shows 41 housing lots. Parcel 4 is Tentative Tract No. 16457, owned by Covenant/Oasis San Bernardino LLC, and contains 47 housing lots. The following chart sets forth the assumptions that can be utilized for purposes of determining the cost per unit of the Verdemont Special Tax District and the burden that may be experienced by the City in connection with the operation and maintenance of the Verdemont Fire Station. Housing Units Exempt from Special Tax: o Housing Units to be built: 382 Average square footage of houses to be built: 2,000 Square footage of commercial/retail to be built o c Square footage of industrial to be built o (h) The expected future build-out of 382 homes will raise $133,700.00 at the Initial Fiscal Year (2004-2005) CFD No. 1033 Special Tax rate of $350.00 per housing unit. These figures represent about 9.9% of the estimated Initial Fiscal Year operations and maintenance costs for the Station. The City would need to raise an additional $1,216,300.00, or about 90.1 % of the above referenced budget, to meet the expected initial fiscal year costs. These numbers are based upon the core community facilities district, consisting of four (4) parcels, not including any additional properties to be annexed to CFD No. 1033. It is anticipated that there will be future development, including non-residential development, within the Verdemont Fire Station Service Area. This development, when annexed to CFD No. 1033, will provide additional funds. (i) Future annexation of properties in the Verdemont Fire Station Service Area as new development continues will be accomplished in conformance with the Act and will be subject to all conditions and obligations ofCFD No. 1033. (j) No bonds shall be issued in relation to CFD No. 1033. V. CONCLUSION o 6 C:~h: b~ 'f..t1 /? oi2ffrt~eltt"llJr ~tr'f #;?~ 6(.:lIlo 1 4822.7426.9696.1 [ll.doc Engineer's Report CFD No 1033 0-14-04 o o c It is the intent of the City to continue to stimulate development within its boundaries. However, it is necessary to provide for all necessary public services for such new development, it is anticipated that this can be accomplished within the Verdemont Station Service Area both with the imposition of CFD No. 1033 to pay for ongoing operation and maintenance of the Station. With CFD No. 1033, the City should have an enhanced ability to meet its planning standards and provide adequate fire protection service to the areas which are presently outside of the existing fire station service areas. The imposition of CFD No. 1033 special taxes will provide the City with the funding for a portion of the annual operation and maintenance costs of the Station. 4822,7426-96961 [I ).doc Englllcer's Repon CFD No 103:; 6_14.04 7 o o c EXHIBIT "8" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 1033 CITY OF SAN BERNARDINO This Rate and Method of Apportionment of this Special Tax sets forth the special tax applicable to each Assessor's Parcel within Community Facilities District No. 1033 ("CFD No. ] 033") of the City of San Bernardino ("City") to be levied and collected according to the special tax liability determined by the Common Council of the City, acting as the Legislative Body of CFD No. ]033. The applicable Special Tax shall be determined pursuant to the application of the appropriate amount or rate as described below. All Taxable Property within CFD No. 1033, unless exempted by law, or the provisions of Section E, below, shall be subject to the applicable Special Tax levied and collected to the extent and in the manner herein provided. This Rate and Method of Apportionment also is provided as an explanation to allow landowners or residents within CFD No. ]033 to estimate the Special Tax to be annually levied and collected, or prepaid, as the case may be, with regard to property within CFD No, ]033, A. Definitions "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 533] 1) of Division 2 of Title 5 of the California Government Code. "Administrative Expense" means any costs incurred by the City on behalf of CFD No. 1033 related to the determination of the amount of the annual levy of the Special Tax, the collection of the Special Tax, and the other costs incurred in order to carry out the authorized purposes ofCFD No. 1033. "Special Tax" means the special tax to be levied in each Fiscal Year pursuant to Sections C. and D. on each Assessor's Parcel for a period not to exceed 30 years including the Initial Fiscal Year. "Assessor's Parcel" means a parcel of land as designated on an official map of the San ,Bernardino County Assessor which has been assigned a discrete identifying parcel number. "Commercial/Retail/Office/lndustrial Property" means property zoned for commercial, retail. office or industrial uses or other non-residential uses. "Common Council" means the Common Council of the City of San Bernardino. 482\-4005-\968\ o o c "Residential Property" means for any Fiscal year all Taxable Property for which a foundation building permit for single family or multi-family units was issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied. "Facilities" means the Fire Station Services as may be identified in the Community Facilities District Engineer's Report prepared for CFD NO.1 033 on file in the Office of the City Clerk, or the continued operation and maintenance of the Verdemont Fire Station, including but not limited to payment of compensation of employees, including salaries and benefits, maintenance and operation of fire safety vehicles and the fire station structures. any other expenses required to keep the such equipment and improvements in fit operating condition and any incidental expenses (collectively, the "O&M Expenses") to be financed by CFD No. 1033 pursuant to the Act. "Fiscal Year" means the period starting on July I st and ending the following June 30th. "In-Lieu Fee" means a one-time fee. which fee shall be deposited into an interest bearing reserve account for future O&M Expenses in the following amounts and for which a further explanation of the In-Lieu Fee will be described in an estimated cost report: Residential Zone $6.349.88 per residential dwelling unit as an In- Lieu Fee Commercial, Retail, Office Zone $44.358.47 per acre of dcvelopment as set forth on a site plan of development as an In-Lieu Fee Industrial Zone $44.358.47 per acre of development as set forth on a site plan of development as an In-Lieu Fee "Land Use Class" means any of the classes of Property listed in Table I and Table 2, below. "Project" means any project undertaken for the purpose of development involving the approval or issuance of any permit or entitlement for use by any governmental agency and includes all such permits and entitlements for use whether classified as quasi- legislative, quasi-judicial or ministerial in nature. including, but not limited to, the adoption, amendment, approval or issuance of any general plan, specific plan, master plan, zoning ordinance, tentative subdivision map, tentative parcel map, final subdivision map, final parcel map, variance, conditional use permit, site plan, plot plan, development plan, annexation, public utility connection, building permit and certificate of occupancy. 'Taxable Property" means all Assessor's Parcels within the boundaries of CFD No. 1033 which are not exempt from the Special Tax pursuant to the Act and the provisions of Section E. herein. 4821-400;-1968.1 o o c B. Assignment to Land Use Classes As soon as practicable, as of May I for the next succeeding Fiscal Year, all Taxable Property within CFD No. 1033 shall be categorized as Residential Property or either Commercial/Retail/Office/lndustrial Zone Property. Taxable Property shall be subject to a Special Tax pursuantto Sections C. and D. below. C. Special Tax I. Residential Proper!)' The Special Tax for each Assessor's Parcel classified as Residential Property shall be the amount determined by reference to Table I and the paragraphs that follow Table I. Table I Special Tax Rates for Residential Property (For the Initial Fiscal Year 2004-05) Land Use Class Land Use Description Special Tax Per Unit (2004-05) I 2 Single Family Detached Unit Multi-Family Unit/Attached Dwelling Unit $350.00 $350.00 In determining the Special Tax which may be levied in any Fiscal Year, on July 1,2005, and on each July 1 thereafter, the Special Tax shall be increased by an amount not to exceed 2 % of the amount in effect for the previous Fiscal Year, up to the Fiscal Year commencing July 1,2033. The Special Tax shall terminate as to such Assessor"s Parcel at the close of the thirtieth (30th) Fiscal Year following the beginning of the Initial Fiscal Year 2004-2005, i.e., the Special Tax shall terminate as of June 30, 2034. 2. Commercial/Retail/Office/lndustrial Zone Proper!)' The Special Tax for each Assessor's Parcel classified as either Commercial, Retail, Office, or Industrial Zone Property shall be the amount determined by reference to Table 2 and the paragraphs that follow Table 2. Table 2 Special Tax Rates for Commercial/RetaiIlOffice/lndustrial Zone Property (For the Initial Fiscal Year 2004-05) Land Use Class Special Tax Per Acre (2004-05) Land Use Description , ~ 4 5 6 Commercial Retail Office Industrial $2,445.00 $2,445.00 $2.445.00 $2,445,00 482] .4005.] 968] o o c In determining the Special Tax which may be levied in any Fiscal Year, on July 1,2005, and on each July 1 thereafter, the Special Tax shall be increased by an amount not to exceed 2 % of the amount in effect for the previous Fiscal Year, up to the Fiscal Year commencing July 1,2033. The Special Tax shall terminate as to such Assessor's Parcel at the close of the thirtieth (30Ih) Fiscal Year following the beginning of the Initial Fiscal Year 2004-2005, i.e., the Special Tax shall terminate as of June 30, 2034. D. Method of Apportionment of the Special Tax Commencing with Fiscal year 2004-05, and each Fiscal Year thereafter, the Council shall determine the Special Tax to be collected from Taxable Property in CFD No. 1m3. The Council may levy the Special Tax on all Assessor's Parcels of Development Property by levying the Special Tax for Land Use Classes 1,2,3,4,5 and 6. E. Limitations The Council shall not levy a Special Tax on properties owned by the State of California, federal or other local governments, except as otherwise provided in Sections 533] 7.3 and 53317.5 of the Act. Property which becomes the property of the State of California, the federal government or other public agency is liable for the Special Tax levied in the Fiscal Year during which such transfer occurs and will be subject to the Special Tax in each Fiscal Year thereafter under the original Land Use Class for such Assessor's Parcel. Such Assessor's Parcel may be exempted, at the direction, and in the discretion, of the Council in any Fiscal Year. F. Prepayment of the Special Tax Any owner of property within CFD No.1 033 may discharge the Special Tax obligation in full or in part, by making payment pursuant to the applicable Sections F. I. or F. 2 as follows: 1. Upon the Approval of a Tentative or Parcel Map At the time of approval of a tentative or parcel map, the owner of such residential unit may prepay the Special Tax in full or in part by making a cash payment to CFD No. 1033, in which case the Special Tax for the Initial Fiscal Year, and each Fiscal Year thereafter, shall be reduced according to the following steps: a. Determine the maximum prepayment if the owner were to prepay the Special Tax in entirety. For example, for Projects approved prior to July I, 2005, the maximum prepayment for each residential unit is $6,439.88 and for each acre of development as set forth on a site plan of development for Commercial/Retail/Office or Industrial zone property is $44,358.47. b. Determine the property's revised Special Tax by multiplying the property's applicable Special Tax for the Initial Fiscal Year determined 4821-400;-1968.1 c o c pursuant to Section C. 1. by one minus the quotient obtained by dividing the cash payment made by the owner pursuant to this Section F. I .b. by the maximum prepayment obligation determined pursuant to Section F. I .a. The property's revised Special Tax for the Initial Fiscal Year, and each Fiscal Year thereafter, shall be the Special Tax for the applicable land use designation (Residential or Commercial/Retail/Office/lndustrial zone Property) for purposes of Sections C. and D. herein. 2. After the Approval of the Tentative Map/Parcel Map After the time a tentative or parcel map has been approved, and prior to May I for the next succeeding Fiscal Year, the owner of such parcel may prepay the Special Tax in full or in part by making a cash payment to CFD No. 1033, in which case the Special Tax for the applicable Fiscal Year, and each Fiscal Year thereafter, shall be reduced according to the following steps: a. Compute the present value of the Special Tax using a period equal to the lesser of the remaining term for which the Special Tax may be levied on such parcel; then b. Multiply the amount determined in Section F.2.a; above, by the owner's desired prepayment percentage (which shall be a minimum of twenty percent (20%) of the present value of the total Special Tax) to determine the prepayment amount subject to additional adjustments as specified below: then c. Add the following to the result of Section F.2.b.: i) Unpaid special taxes, interest and penalties, if any, which have been entered on the Assessor's tax roll: and iv) a $75 administrative charge per Assessor Parcel. d. The Special Tax applicable to property utilizing a prepayment percentage less than 100% shall be revised inthe Fiscal Year following the date of prepayment by multiplying such property's Special Tax by the prepayment percentage actually determined in Section F.2.b. Such property's revised Special Tax for the Fiscal Year following the date of prepayment, and each Fiscal Year thereafter, shall be the Special Tax for such property for purposes of Sections C. and D. herein. In no event shall the In-Lieu Fee be increased by more than 2% per year nor shall the Tax be increased by more than 2% per year, based upon a cost inflation formula to be continued in the Estimated Cost Report and the Engineer's Report and made a part of the formation documents for the District, from the previous year for any property located within the District that was previously assessed and charged with the Tax in the immediately preceding year. The 4821-4005-19681 o o c Special Tax and the In-Lieu Fee shall be recalculated annually to reflect (i) any changes in the O&M Expenses, (ii) the annexation of additional property into the District, (iii) the payment of the O&M Expenses, or any portion thereof, with funds other than the Tax, (iv) the amount of In- Lieu Fees available to be applied for the applicable for which the calculation is being made, and (v) any other changes which may affect the estimated O&M Expenses for such year. G, Manner of Collection The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem real property taxes. The Special Tax shall be subject to the same penalties and the same procedure, sale and lien priority in case of a delinquency as provided for with ad valorem taxes. The collection of the Special Tax shall otherwise be subject to the provisions of the Act. The Common Council reserves the power to provide for alternative means of collection of special taxes as permitted by the Act. H. Termination of Special Tax Levy Provided that Special Taxes previously levied on an Assessor's Parcel are not delinquent, the lien of special taxes ofCFD No. 1033 shall terminate as to such Assessor's Parcel at the close of the thirtieth (30) Fiscal Year following the beginning of the Initial Fiscal Year for such Assessor's Parcel. Furthermore, provided an owner within CFD No. 1033 fully and completely discharges their special tax obligation pursuant to Sections F.I and/or F.2, the lien of special taxes of CFD No. 1033 shall terminate. Pursuant to Section 53330.5 of the Act, the Common Council shall, upon written request, cause to be recorded in the official records of San Bernardino County a Notice of Cessation of Special Tax Lien for each Assessor's Parcel upon termination of the lien on such Assessor's Parcel. I. Review/Appeal Board The Council shall establish, as part of the proceedings and administration of CFD No. 1033, a special Review/Appeal Board. Any landowner who feels that the amount of the Special Tax, as to their Assessor's Parcel, is in error may file a notice with the Review/Appeal Board appealing the amount of the levy. The Review/Appeal Board shall interpret this Rate and Method of Apportionment of the Special Tax and make determinations relative to the annual administration of the special tax and any landowner appeals, as herein specified. 4821,400;,19681 o EXHIBIT "e" COMMUNITY FACILITIES DISTRICT NO. 1033 VERDEMONT FIRE STATION SERVICE AREA IN THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA SHEET 1 or 3 PARCEL NO OJ [I) m TENTATIVE TRACT 15940 [II TENTATIVE TRACT 16457 OWNfR REDEVELOPMENT AGENCY or THE CITY or SAN BERNARDINO CITY Of SAN BERNARDINO MONtCA MORROW, ET AL COVENANT/OASIS SAN BERNARDINO. lLC I I I I rr------------l I I SHEET 3 I I I I I I I I I I .f I I /1 I I S I I I , I I ... w:N1Y ..... - o Ii ------------l .~~n... SHEET 2 c I I I . I ~ 'f- L_____________J ___~anrc.o. FILED AT R[QO(Sl or CITY CLERI( ..---....-- -- ...._.._.1 - . ...... .........11. OC""'....._ ....._11I"1 'CIO.ecll1lF._.....____D_S. _n'AOI."IUMw.t'tC!'OllOlloC C>1'<1lIS-_ .u..or t.III..-....._o.. "'l ..._ ___C_.' ,"""''' 11(1)_ _....CUI..._..._..'..IItSCllU_""_ . DAVID .vANI _A..OCIAT.. ....,. ------ --..... --..- ,-- --~...--. -.-- onQ.," ""'.""'....- . ---- ~ ~.... 13 ---- -1--- -------- EXHIBIT "c" COMMUNITY FACILITIES DISTRICT NO. 1033 VERDEMONT FIRE STATION SERVICE AREA IN THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA SH[[T 2 or J o ! ~ c <') '" '" "" c #' 1$ . DAVID avAH. _A..oeIAT........ -----... -_..,.. -....- c o c EXHIBIT "c" COMMUNITY FACILITIES DISTRICT NO. 1033 VERDEMONT FIRE STATION SERVICE AREA IN THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA SHt:ET :3 or J . DAVID ~AN. _A..OC.AT.. _. ------ -~..,., --....... !Ill Iill !Ill iii m I I I I I I I D a I I I I I I I 4837-7301-2480.1 ENGINEER'S REPORT SPECIAL TAX DISTRICT CFDNo.1033 VERDEMONT FIRE STATION SERVICE AREA June 21, 2004 Prepared by David Evans and Associates, Inc. And the Development Services Department City Engineer City of San Bernardino, California Prepared For City of San Bernardino, California Community Facilities District No. 1033 '" .. . I I ~ I I I I I m I I I I I I I I I. INTRODUCTION AND PURPOSE On April 19, 2004, the Mayor and Common Council of the City of San Bernardino ("City") approved and adopted "A Resolution of the Mayor and Common Council of the City of San Bernardino declaring Intention to Establish a Community Facilities District for New Development for the Ongoing Operation and Maintenance of a Fire Station for the Verdernont Fire Station Service Area and to Levy a Special Tax within said Community Facilities District, Setting a Public Hearing Thereon and Authorizing the Publication and Mailing of Notice Thereof (Community Facilities District No. 1033)" (the "Resolution of Intention"), pursuant to the provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part I, Division 2, Title 5 of the Govemment Code (commencing with Section 53311, the "Act"), and specifically Section 53321.5 thereof. The Resolution of Intention expressly ordered the filing of a written Engineer's Report of proposed Community Facilities District No. 1033 ("CFD No. 1033"), and directed that said Engineer's Report include the following: I) A brief description of the services, maintenance and operating costs of public facilities which will be provided within CFD No. 1033, i.e., the estimated operations and maintenance expenses of the Verdemont Fire Station, Station No. 232 at 6055 Palm Avenue, San Bernardino, California ("Station"), including but not limited to payment of compensation of employees, including salaries and benefits, maintenance and operation of fire safety vehicles and the fire station structures, any other expenses required to keep the such equipment and improvements in fit operating condition and any incidental expenses (collectively, the "O&M Expenses"), which will be incurred as a result of providing the services and which will in the opinion of the preparer of the Engineer's Report, be required to adequately meet the needs of CFD No. 1033 for the next five (5) years; and 2} An estimate of the cost of providing for the O&M Expenses for the first five (5) years for each zone within CFD No. 1033, including a brief explanation justifying the amount of the Special Tax for each zone type and any increase or decrease thereof in subsequent years as well as the estimated In-Lieu Fee that may be generated for each zone for all years evaluated in the Engineer's Report. Accordingly, the authorized representatives of the City have caused this Engineer's Report of CFD No. 1033 to be prepared by David Evans & Associates, Inc., pursuant to the provisions of the Act and the Resolution of Intention. This Engineer's Report is intended to provide background information and factual data to enable the Mayor and Common Council to take appropriate actions to impose the requirements upon new development within the Verdemont Fire Station Service Area for funding of a portion of the O&M Expenses to serve operations and maintenance of the Station. 4822.7426-9696.1 [ll.doc ENGINEER'S REPOIlT6-17-04.doc I JIll III I I a I I I I I I E E I I I I I I I II. BACKGROUND (a) It is appropriate and desirable for the City to institute a partial funding source (i.e. the proposed CFD No. 1033) in order to offset the costs of the normal operating expenses of the Station that would otherwise be required to be paid in total by the City General Fund. (b) Existing residential structures will not be included in the proposed CFD No. 1033. Special taxes of CFD No. 1033 will be imposed only on new residential, commercial, office, and industrial development within the Verdemont Fire Station Service Area. The City has the legal ability during the environmental review of proposed development within the Area that would require the owner (or the owner's designee) to participate in CFD No. 1033 and pay a "Special Tax" for a portion of the O&M Expenses, (or, in the alternative, prior to the issuance of each certificate of occupancy for residential development, pay an "In-Lieu Fee" in the amount [for the Initial Fiscal Year 2004-2005] of $6,349.88 per dwelling unit, whether for a single family or a multi-family unit, and prior to the issuance of each certificate of occupancy for commercial/retailloffice/industrial zoning classifications pay an in-lieu fee in the amount of $44,350.47 per acre of development as set forth on a site plan of development). The Special Tax shall be increased by an amount not to exceed 2 % of the amount in effect for the previous Fiscal Year, up to the Fiscal Year commencing July 1,2033. The Special Tax shall terminate as to such Assessor's Parcel at the close of the thirtieth (30th) Fiscal Year following the beginning of the Initial Fiscal Year 2004-2005, i.e., the Special Tax shall terminate as of June 30, 2034. See Exhibit "A", "Calculation and assumptions for final Verdemont Fire Station CFD special tax". This requirement would apply only to new residential, commercial, retail and industrial development within the Verdemont Fire Station Service Area. (c) On April 19, 2004, the Mayor and Common Council approved and adopted the Resolution of Intention, which authorized the initiation of proceedings for the formation of CFD No. 1033. The Resolution of Intention set the public hearing on the formation of CFD No. 1033 for the June 7, 2004 meeting of the Mayor and Common Council, which hereby was continued to June 21, 2004. Notice of the June 7, 2004 public hearing was published on May 26, 2004, and notice was republished regarding the hearing's continuance to June 21,2004. (d) The Resolution of Intention also called for the preparation and the recordation of a map of the proposed boundaries ofCFD No. 1033 ("Map") to be recorded with the County of San Bernardino Auditor/Controller-Recorder's Office. A copy of the Map is attached hereto as Exhibit "C". The Map and this Engineer's Report (copies of which have been made available at the City Clerk's office) would be approved after the public hearing as part of the formation proceedings for CFD No. 1033. (e) Assuming that there is no majority protest by the affected property owners within the boundaries of CFD No. 1033, the Mayor and the Common Council may approve a "Resolution of Formation", which formally establishes the existence of CFD No. 1033. The Resolution of Formation (which includes information contained in the Resolution of 4822-7426-9696.1 Il].doc ENGINEER'S REPORT6-17-04.doc 2 ... .. t I I I I I I I I D I a E m I I I I Intention and attaches the Rate and Method of Apportionment of Special Tax for CFD No. 1033as an exhibit) makes findings regarding the Report and the Map, including the findings that the proposed special tax levy has not been precluded by majority protest and that all proceedings regarding the formation of CFD No. 1033 have been conducted in conformity with the requirements of the Act. (f) In addition to formally establishing CFD No. 1033, the Resolution of Formation calls for an election of the qualified electors. The City has determined that there are less than twelve (12) residents within the proposed boundaries ofCFD No. 1033, meaning that the qualified electors are the owners ofland within CFD No. 1033, to approve the levy of the Special Tax. The Act requires that the special landowner election be held at least ninety (90) days after the public hearing (unless unanimously waived by all of the affected property owners, in which event the election may be held at an earlier date), the Resolution of Formation sets such special landowners election for the meeting of September 7, 2004, and calls for all ballots to be received at a specified time prior to the meeting. If two-thirds (2/3) of the ballots approve the levy and collection of the special tax within CFD No. 1033, then the Mayor and Common Council will be presented a resolution canvassing the results of the election and an ordinance (for first reading) imposing the special tax levy on the property owners within CFD No. 1033, at the September 20, 2004 meeting of the Mayor and Common Council. The Resolution of Formation also describes the procedure for conducting such an election, in this case by mailed-ballot election to be conducted by the City, wherein such landowners would have one vote for each acre of land he or she owns within the boundary of CFD No. 1033. (g) The City has concurrently with the adoption of the Resolution of Intention approved the form of the Mitigation Agreement for CFD No. 1033, which provides that participating property owners agree to pay for the formation expenses incurred by the City relative to the establishment ofCFD No. 1033. Accordingly, the costs associated with the formation of CFD No. 1033 will be borne by participating landowners. III. NECESSITY FOR AN ADDITIONAL FIRE STATION IN VERDEMONT FIRE STATION SERVICE AREA In {998, City Fire Department administrative staff requested that a process be developed to study and adopt emergency service delivery management and planning standards. This was prompted in part by the need to consider the addition of a fire station to serve the Verdemont Fire Station Service Area. Without planning standards, the Verdemont Station concept could not be evaluated objectively. Subsequently, the Mayor and Common Council approved the establishment of a Fire Department Planning Standards Ad Hoc Committee (the "Committee") on September 21,1998. In November of 1998, the Committee began meeting to study and analyze topics relevant to establishing emergency service delivery standards. On March 28, 2000, the Committee agreed upon certain standards to recommend to the Mayor and Common Council for adoption. The standards and other recommendations are listed below. 4822-7426-9696.1 [I).doc ENGINEER'S REPORT6-17-04.doc 3 .. .. I I . I I I I I I I I o I I I I I I A. Recommended Standards . Dispatch processing time shall be sixty (60) seconds or less for 90% of Calls for Service (CFS). . Turnout time shall be 60 seconds or less for 90% ofCFS. . Drive time from fire station to arrival on-scene at incidents shall be five (5) minutes or less for 90% of CFS. B. Other Recommended Actions · Automate the emergency medical pre-arrival and priority dispatching system. . Adopt a fire station siting plan that is consistent with the 5-minute drive time standard. . Study and analyze issues pertinent to the City's relatively high emergency incident call volume. An analysis of calendar year 2002 CFS to the Verdemont Fire Station Service Area showed that the 5 minute drive time standard was met for about 45% of 245 CFS. This quantified the need for a fire station to serve the Verdemont Fire Station Service Area. IV. STRUCTURE OF THE SPECIAL TAX (a) This Report and the proposal contained herein deal solely with the levy of the Special Tax for the payment of certain operating and maintenance costs of the Station, not the debt service or other capital outlay and replacement costs associated with any public facility. Section IV.(d) below sets forth the items that are deemed to be the "Included Items" and the "Excluded Items" of those which are eligible for payment by the City from the Special Tax levied within the CFD No. 1033. CFD No. 1033 will be limited solely to the payment of those Included Items related to the operation and maintenance of the Station. The City will impose an annual Special Tax lien upon all property within the CFD No. 1033 and the City will ensure that the Special Taxes are paid by each property owner in the same manner as the general property taxes are paid to the County of San Bernardino. The City reserves the right to enforce any and all unpaid Special Taxes and the liens thereof, including interest and penalties and collection costs, in the manner authorized by the Act through a separate legal action to be filed by the City separate and apart from any tax collection proceedings initiated by the County of San Bernardino for the payment of defaulted general property taxes. (b) The Special Tax shall be levied in conformance with the Rate and Method of Apportionment of Special Tax - Community Facilities District No.1 033, City of San Bernardino ("Rate and Method") (the Rate and Method is set forth as Exhibit "B" hereto). (c) All of the property located within CFD No. 1033, unless exempted by law or by the Rate and Method, shall be subject to the Special Tax. Each year the Special Tax shall be levied subject to the methodology and Maximum Special Tax limits of the Rate and Method. The Special Tax imposed is a "special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property", pursuant to Section 53325.3 of the Act. The Special Tax may be "on or based on a benefit received by 4822-7426-9696.1 [1].doc ENGINEER'S REPOR.T6-17-G4.doc 4 ~ .. ; I I I I I I m I m I I I I I I I I parcels of real property, the cost of making facilities or authorized services available to each parcel, or some other reasonable basis as determined by the legislative body"; however, the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. (d) The costs of the annual O&M Expenses of the Station shall only include the following described Included Items and shall specifically exclude the Excluded Items from payment through the CFD No. 1033: (i) IneIuded Items: Personnel costs, salaries, benefits, administrative charges, bookkeeping and accounting incurred by the Fire Department (or other related City Departments); repair and maintenance of all buildings, facilities, personal equipment and firefighting equipment exclusive of the acquisition costs of any vehicles of any nature but including the repair and maintenance, oil, fuel, tires, insurance, and upkeep of all such vehicles; uniforms, firefighting protective equipment and clothing; hoses, ladders, and other firefighting and life safety and protective equipment and first aid and CPR equipment; utilities, furnishings, food, paper products, office products and office equipment and supplies, communications equipment, radios, computers and telephones; building maintenance and upkeep, landscape maintenance and supplies, painting of buildings, replacement of wom or broken building components that are typically accounted by the City as expense items and not as capital improvement items. (ii) Excluded Items: Excluded items are all items that are not for the direct operation and/or maintenance of the Station. These include but are not limited to the following: construction of the fire station, purchase or lease of any fire truck, pick-up truck, ambulances or any other motorized vehicles; and/or the replacement or upgrade of any component of the Station that has a useful life of more than 10 years. (e) Since 2002 there has been an increased interest in development within the Verdemont Fire Station Service Area, and there are potentially 382 single family residential housing units that could be constructed within the initial boundaries of CFD No. 1033 within the next ten (10) years. Such new construction activity will exacerbate the need for the Station and particularly as development trends in the Verdemont Fire Station Service Area extend northerly towards Little League Drive and northerly from Little League Drive into the Devore area of the City. The third property acquired by the EDA in 1999, known as the "Bice" property (Parcell), is severely impacted by the lack of a suitable final tract map, the designation of the "Bice" property as critical habitat for the San Bemardino Kangaroo Rat, and the requirement for numerous flood control and street realigrunent projects as a condition of development. The Bice property is located northerly of Little League Drive and in the area most impacted by the present lack of a fire station in the Verdemont Fire Station Service Area. (f) Several developers representing the vacant land holdings, existing developers with projects in the area, and other interested parties have once again contacted the City to express interests to initiate development activities within the Verdemont Fire Station Service Area. Based upon improvements in the general real estate market for single-family residential development within the City and the availability of low interest rate mortgage fmancing at this time, the City anticipates that additional demands will be placed upon the infrastructure needs 4822-7426-9696.1 ENGINE-I.DOC 5 "" .. m I I m I I D D D D D D D D D I I I within the Verdemont Fire Station Service Area upon the development of the presently proposed projects. (g) A May 2004 estimate of the projected number of residential housing units comprises four "parcels" within the Verdemont Fire Station Service Area identified as Nos. 1-4 on the Proposed Community Facilities District No. 1033 Map. Parcell (Century Village Homes, Alternative "C", formerly the Bice property) is projected to contain 275 housing lots. Parcel 2 is owned by the City and currently there are 19 housing units planned. Parcel 3 is Tentative Tract No. 15940, owned by Monica Morrow, et al, and currently shows 41 housing lots. Parcel 4 is Tentative Tract No. 16457, owned by Covenant/Oasis San Bernardino LLC, and contains 47 housing lots. The following chart sets forth the assumptions that can be utilized for purposes of determining the cost per unit of the Verdemont Special Tax District and the burden that may be experienced by the City in connection with the operation and maintenance of the Verdemont Fire Station. Housing Units Exempt from Special Tax: o Housing Units to be built: 382 Average square footage of houses to be built: 2,000 Square footage of commercial/retail to be built o Square footage of industrial to be built o (h) The expected future build-out of 382 homes will raise $133,700.00 at the Initial Fiscal Year (2004-2005) CFD No. 1033 Special Tax rate of $350.00 per housing unit. These figures represent about 9.9% of the estimated Initial Fiscal Year operations and maintenance costs for the Station. The City would need to raise an additional $1,216,300.00, or about 90.1% of the above referenced budget, to meet the expected initial fiscal year costs. These numbers are based upon the core community facilities district, consisting of four (4) parcels, not including any additional properties to be annexed to CFD No. 1033. It is anticipated that there will be future development, including non-residential development, within the Verdemont Fire Station Service Area. This development, when annexed to CFD No. 1033, will provide additional funds. (i) Future annexation of properties in the Verdemont Fire Station Service Area as new development continues will be accomplished in conformance with the Act and will be subject to all conditions and obligations ofCFD No. 1033. G) No bonds shall be issued in relation to CFD No. 1033. V. CONCLUSION It is the intent of the City to continue to stimulate development within its boundaries. However, it is necessary to provide for all necessary public services for such new development, it is anticipated that this can be accomplished within the Verdemont Station Service Area both with 4822-7426-9696.1 ENGINE-I ,DOC 6 lI'I iIII m I I I I I I I I I I D E D I I I I It is the intent of the City to continue to stimulate development within its boundaries. However, it is necessary to provide for all necessary public services for such new development, it is anticipated that this can be accomplished within the Verdemont Station Service Area both with the imposition of CFD No. 1033 to pay for ongoing operation and maintenance of the Station. With CFD No. 1033, the City should have an enhanced ability to meet its planning standards and provide adequate fire protection service to the areas which are presently outside of the existing fire station service areas. The imposition of CFD No. 1033 special taxes will provide the City with the funding for a portion of the annual operation and maintenance costs of the Station. 4822-7426-9696.1 [I).doc ENGINEER'S REPOI.T6-17-04.doc 7 .. ... EXHIBIT "A" I Calculation and assumptions for final Verdmont Fire Station CFD special tax I I. Residential Calculation and Assumotlons I average size house 2200.00 assumed rate/sq. It $ 0.16 Tax Rate $ 352.00 I II. Commercial. Industrial and Retail Assumotlons m coverage factor/acre 33% land area of an acre 43,560.00 assumed net land 14,374.80 I assumed rate/sq. It $ 0.17 Tax Rate 2443.72 I Calculation of Inflator Increases and Preoavments of Mitiaatlon Fee Res Tax 6.00% ~ Period Calendar rate with PV factor PV of each Number Year 2% Inflator to 12/31 annual amt 1 2004 $ 350.00 1 $ 350.00 ~ 2 2005 $ 357.00 0.943396 $ 336.79 3 2006 $ 364.14 0.889996 $ 324.08 4 2007 $ 371.42 0.839619 $ 311.85 5 2008 $ 378.85 0.792094 $ 300.09 D 6 2009 $ 386.43 0.747258 $ 288.76 7 2010 $ 394.16 0.704961 $ 277.87 8 2011 $ 402.04 0.665057 $ 267.38 D 9 2012 $ 410.08 0.627412 $ 257.29 10 2013 $ 418.28 0.591898 $ 247.58 11 2014 $ 426.65 0.558395 $ 238.24 12 2015 $ 435.18 0.526788 $ 229.25 D 13 2016 $ 443.88 0.496969 $ 220.60 14 2017 $ 452.76 0.468839 $ 212.27 15 2018 $ 461.82 0.442301 $ 204.26 D 16 2019 $ 471.05 0.417265 $ 196.55 17 2020 $ 480.47 0.393646 $ 189.14 18 2021 $ 490.08 0.371364 $ 182.00 D 19 2022 $ 499.89 0.350344 $ 175.13 20 2023 $ 509.88 0.330513 $ 168.52 $ 4,977.66 21 2024 $ 520.08 0.311805 $ 162.16 22 2025 $ 530.48 0.294155 $ 156.04 I 23 2026 $ 541.09 0.277505 $ 150.16 24 2027 $ 551.91 0.261797 $ 144.49 25 2028 $ 562.95 0.246979 $ 139.04 I 36 2029 $ 574.21 0.232999 $ 133.79 27 2030 $ 585.70 0.219810 $ 128.74 28 2031 $ 597.41 0.207368 $ 123.88 I 29 2032 $ 609.36 0.195630 $ 119.21 30 2033 $ 621.55 0.184557 $ 114.71 $ 6,349.88 per house E II" Ii. m I I ~ I E D D D D D D D C D D D D Com, Ind Retl Tax 6.00% Period Calendar rate with PV factor PV of each Number Year 2% Inflator to 12/31 annual amt 1 2004 $ 2,445.00 1 $ 2,445.00 2 2005 $ 2,493.90 0.943396 $ 2,352.74 3 2006 $ 2,543.78 0.889996 $ 2,263.95 4 2007 $ 2,594.65 0.839619 $ 2,178.52 5 2008 $ 2,646.55 0.792094 $ 2,096.31 6 2009 $ 2,699.48 0.747258 $ 2,017.21 7 2010 $ 2,753.47 0.704961 $ 1,941.09 8 2011 $ 2,808.54 0.665057 $ 1,867.84 9 2012 $ 2,864.71 0.627412 $ 1,797.35 10 2013 $ 2,922.00 0.591898 $ 1,729.53 11 2014 $ 2,980.44 0.558395 $ 1,664.26 12 2015 $ 3,040.05 0.526788 $ 1,601.46 13 2016 $ 3,100.85 0.496969 $ 1,541.03 14 2017 $ 3,162.87 0.468839 $ 1,482.88 15 2018 $ 3,226.13 0.442301 $ 1,426.92 16 2019 $ 3,290.65 0.417265 $ 1,373.07 17 2020 $ 3,356.46 0.393646 $ 1,321.26 18 2021 $ 3,423.59 0.371364 $ 1,271.40 19 2022 $ 3,492.06 0.350344 $ 1,223.42 20 2023 $ 3,561.90 0.330513 $ 1,177.26 21 2024 $ 3,633.14 0.311805 $ 1,132.83 22 2025 $ 3,705.80 0.294155 $ 1,090.08 23 2026 $ 3,779.92 0.277505 $ 1,048.95 24 2027 $ 3,855.52 0.261797 $ 1,009.36 25 2028 $ 3,932.63 0.246979 $ 971.28 36 2029 $ 4,011.28 0.232999 $ 934.62 27 2030 $ 4,091.51 0.219810 $ 899.35 28 2031 $ 4,173.34 0.207368 $ 865.42 29 2032 $ 4,256.80 0.195630 $ 832.76 30 2033 $ 4,341.94 0.184557 $ 801.33 $ 44,358.47 $ 34,772.49 per acre ... .. I I I I I D I I I I m I E D E D D D EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 1033 CITY OF SAN BERNARDINO This Rate and Method of Apportionment of this Special Tax sets forth the special tax applicable to each Assessor's Parcel within Community Facilities District No. 1033 ("CFD No. 1033") of the City of San Bernardino ("City") to be levied and collected according to the special tax liability determined by the Common Council of the City, acting as the Legislative Body of CFD No. 1033. The applicable Special Tax shall be determined pursuant to the application of the appropriate amount or rate as described below. All Taxable Property within CFD No. 1033, unless exempted by law, or the provisions of Section E, below, shall be subject to the applicable Special Tax levied and collected to the extent and in the manner herein provided. This Rate and Method of Apportionment also is provided as an explanation to allow landowners or residents within CFD No. 1033 to estimate the Special Tax to be annually levied and collected, or prepaid, as the case may be, with regard to property within CFD No. 1033. A. Definitions "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Division 2 of Title 5 of the California Government Code. "Administrative Expense" means any costs incurred by the City on behalf of CFD No. 1033 related to the determination of the amount of the annual levy of the Special Tax, the collection of the Special Tax, and the other costs incurred in order to carry out the authorized purposes ofCFD No. 1033. "Special Tax" means the special tax to be levied in each Fiscal Year pursuant to Sections C. and D. on each Assessor's Parcel for a period not to exceed 30 years including the Initial Fiscal Year. "Assessor's Parcel" means a parcel of land as designated on an official map of the San Bernardino County Assessor which has been assigned a discrete identifying parcel number. "Commercial/Retail/OfficelIndustrial Property" means property zoned for commercial, retail, office or industrial uses or other non-residential uses. . "Common Council" means the Common Council of the City of San Bernardino. 4821-4005-1968.1 ,. ... I I I I I I I m I E m I E D E D D D "Residential Property" means for any Fiscal year all Taxable Property for which a foundation building permit for single family or multi-family units was issued prior to May I preceding the Fiscal Year in which the Special Tax is being levied. "Facilities" means the Fire Station Services as may be identified in the Community Facilities District Engineer's Report prepared for CFD No. 1033 on file in the Office of the City Clerk, or the continued operation and maintenance of the Verdemont Fire Station, including but not limited to payment of compensation of employees, including salaries and benefits, maintenance and operation of fire safety vehicles and the fire station structures, any other expenses required to keep the such equipment and improvements in fit operating condition and any incidental expenses (collectively, the "O&M Expenses") to be financed by CFD No. 1033 pursuant to the Act. "Fiscal Year" means the period starting on July 1st and ending the following June 30th. "In-Lieu Fee" means a one-time fee, which fee shall be deposited into an interest bearing reserve account for future O&M Expenses in the following amounts and for which a further explanation of the In-Lieu Fee will be described in an estimated cost report: Residential Zone $6,349.88 per residential dwelling unit as an In- Lieu Fee Commercial, Retail, Office Zone $44,358.47 per acre of development as set forth on a site plan of development as an In-Lieu Fee Industrial Zone $44,358.47 per acre of development as set forth on a site plan of development as an In-Lieu Fee "Land Use Class" means any of the classes of Property listed in Table I and Table 2, below. "Project" means any project undertaken for the purpose of development involving the approval or issuance of any permit or entitlement for use by any govemmental agency an<i includes all such permits and entitlements for use whether classified as quasi- legislative, quasi-judicial or ministerial in nature, including, but not limited to, the adoption, amendment, approval or issuance of any general plan, specific plan, master plan, zoning ordinance, tentative subdivision map, tentative parcel map, fmal subdivision map, final parcel map, variance, conditional use permit, site plan, plot plan, development plan, annexation, public utility connection, building permit and certificate of occupancy. "Taxable Property" means all Assessor's Parcels within the boundaries ofCFD No. 1033 which are not exempt from the Special Tax pursuant to the Act and the provisions of Section E. herein. 4821-4005-1968.1 "" .. I I I I I I D E ~ D D D E C D D D D B. Assignment to Land Use Classes As soon as practicable, as of May 1 for the next succeeding Fiscal Year, all Taxable Property within CFD No. 1033 shall be categorized as Residential Property or either Commercial/Retail/Office/Industrial Zone Property. Taxable Property shall be subject to a Special Tax pursuant to Sections C. and D. below. C. Special Tax 1. Residential Property The Special Tax for each Assessor's Parcel classified as Residential Property shall be the amount determined by reference to Table 1 and the paragraphs that follow Table 1. Table 1 Special Tax Rates for Residential Property (For the Initial Fiscal Year 2004-05) Land Use Class Land Use DescriDtion Special Tax Per Unit (2004-05) 1 2 Single Family Detached Unit Multi-Family Unit/Attached Dwelling Unit $350.00 $350.00 In determining the Special Tax which may be levied in any Fiscal Year, on July 1,2005, and on each July 1 thereafter, the Special Tax shall be increased by an amount not to exceed 2 % of the amount in effect for the previous Fiscal Year, up to the Fiscal Year commencing July 1,2033. The Special Tax shall terminate as to such Assessor's Parcel at the close of the thirtieth (30th) Fiscal Year following the beginning of the Initial Fiscal Year 2004-2005, Le., the Special Tax shall terminate as of June 30, 2034. 2. CommerciallRetaillOmce/Industrial Zone Property The Special Tax for each Assessor's Parcel classified as either Commercial, Retail, Office, or Industrial Zone Property shall be the amount determined by reference to Table 2 and the paragraphs that follow Table 2. Table 2 Special Tax Rates for Commercial/Retail/OfficelIndustrial Zone Property (For the Initial Fiscal Year 2004-05) Land Use Class Land Use DescriDtion Special Tax Per Acre (2004-05) 3 4 5 6 Commercial Retail Office Industrial $2,445.00 $2,445.00 $2,445.00 $2,445.00 4821-4005-1968.1 "" .. m I I I I E I E ~ [J D I ~ [ D C C ~ In determining the Special Tax which may be levied in any Fiscal Year, on July 1,2005, and on each July I thereafter, the Special Tax shall be increased by an amount not to exceed 2 % of the amount in effect for the previous Fiscal Year, up to the Fiscal Year commencing July 1,2033. The Special Tax shall terminate as to such Assessor's Parcel at the close of the thirtieth (30th) Fiscal Year following the beginning of the Initial Fiscal Year 2004-2005, i.e., the Special Tax shall terminate as of June 30, 2034. D. Method of Apportionment ofthe Special Tax Commencing with Fiscal year 2004-05, and each Fiscal Year thereafter, the Council shall determine the Special Tax to be collected from Taxable Property in CFD No. 1033. The Council may levy the Special Tax on all Assessor's Parcels of Development Property by levying the Special Tax for Land Use Classes 1,2,3,4,5 and 6. E. Limitations The Council shall not levy a Special Tax on properties owned by the State of California, federal or other local govemments, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act. Property which becomes the property of the State of California, the federal govemment or other public agency is liable for the Special Tax levied in the Fiscal Year during which such transfer occurs and will be subject to the Special Tax in each Fiscal Year thereafter under the original Land Use Class for such Assessor's Parcel. Such Assessor's Parcel may be exempted, at the direction, and in the discretion, of the Council in any Fiscal Year. F. Prepayment of the Special Tax Any owner of property within CFD No. 1033 may discharge the Special Tax obligation in full or in part, by making payment pursuant to the applicable Sections F. 1. or F. 2 as follows: 1. Upon the Approval of a Tentative or Parcel Map At the time of approval of a tentative or parcel map, the owner of such residential unit may prepay the Special Tax in full or in part by making a cash payment to CFD No. 1033, in which case the Special Tax for the Initial Fiscal Year, and each Fiscal Year thereafter, shall be reduced according to the following steps: a. Determine the maximum prepayment if the owner were to prepay the Special Tax in entirety. For example, for Projects approved prior to July I, 2005, the maximum prepayment for each residential unit is $6,439.88 and for each acre of development as set forth on a site plan of development for CommerciallRetaiVOffice or Industrial zone property is $44,358.47. b. Determine the property's revised Special Tax by multiplying the property's applicable Special Tax for the Initial Fiscal Year determined 4821-4005.1968.1 - .. II'" IiIII pursuant to Section C. I. by one minus the quotient obtained by dividing the cash payment made by the owner pursuant to this Section F. I .b. by the maximum prepayment obligation determined pursuant to Section F. I .a. The property's revised Special Tax for the Initial Fiscal Year, and each Fiscal Year thereafter, shall be the Special Tax for the applicable land use designation (Residential or Commercia1/Retail/Office/Industrial zone Property) for purposes of Sections C. and D. herein. m m I E ~ D t C [ 2. After the Approval of the Tentative MaplParcel Map After the time a tentative or parcel map has been approved, and prior to May I for the next succeeding Fiscal Year, the owner of such parcel may prepay the Special Tax in full or in part by making a cash payment to CFD No. 1033, in which case the Special Tax for the applicable Fiscal Year, and each Fiscal Year thereafter, shall be reduced according to the following steps: a. Compute the present value of the Special Tax using a period equal to the lesser of the remaining term for which the Special Tax may be levied on such parcel; then b. Multiply the amount determined in Section F.2.a; above, by the owner's desired prepayment percentage (which shall be a minimum of twenty percent (20%) of the present value of the total Special Tax) to determine the prepayment amount subject to additional adjustments as specified below; then c. Add the following to the result of Section F.2.b.: I!II! ~ i) Unpaid special taxes, interest and penalties, if any, which have been entered on the Assessor's tax roll; and D D C C C iv) a $75 administrative charge per Assessor Parcel. d. The Special Tax applicable to property utilizing a prepayment percentage less than 100% shall be revised in the Fiscal Year following the date of prepayment by multiplying such property's Special Tax by the prepayment percentage actually determined in Section F.2.b. Such property's revised Special Tax for the Fiscal Year following the date of prepayment, and each Fiscal Year thereafter, shall be the Special Tax for such property for purposes of Sections C. and D. herein. In no event shall the In-Lieu Fee be increased by more than 2% per year nor shall the Tax be increased by more than 2% per year, based upon a cost inflation formula to be continued in the Estimated Cost Report and the Engineer's Report and made a part of the formation documents for the District, from the previous year for any property located within the District that was previously assessed and charged with the Tax in the immediately preceding year. The II'" j ... ... I .. 4821-4005-1%8.1 ~ , ". c Special Tax and the In-Lieu Fee shall be recalculated annually to reflect (i) any changes in the O&M Expenses, (ii) the annexation of additional property into the District, (iii) the payment of the O&M Expenses, or any portion thereof, with funds other than the Tax, (iv) the amount of In- Lieu Fees available to be applied for the applicable for which the calculation is being made, and (v) any other changes which may affect the estimated O&M Expenses for such year. .. ".. .. G. Manner of Collection m ~ C [ The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem real property taxes. The Special Tax shall be subject to the same penalties and the same procedure, sale and lien priority in case of a delinquency as provided for with ad valorem taxes. The collection of the Special Tax shall otherwise be subject to the provisions of the Act. The Common Council reserves the power to provide for alternative means of collection of special taxes as permitted by the Act. H. Termination of Special Tax Levy '" I. Provided that Special Taxes previously levied on an Assessor's Parcel are not delinquent, the lien of special taxes of CFD No. 1033 shall terminate as to such Assessor's Parcel at the close of the thirtieth (30) Fiscal Year following the beginning of the Initial Fiscal Year for such Assessor's Parcel. Furthermore, provided an owner within CFD No. 1033 fully and completely discharges their special tax obligation pursuant to Sections F.l and/or F.2, the lien of special taxes of CFD No.1 033 shall terminate. c C t ~ t Pursuant to Section 53330.5 of the Act, the Common Council shall, upon written request, cause to be recorded in the official records of San Bernardino County a Notice of Cessation of Special Tax Lien for each Assessor's Parcel upon termination of the lien on such Assessor's Parcel. I. Review/Appeal Board "" L. The Council shall establish, as part of the proceedings and administration of CFD No. 1033, a special Review/Appeal Board. Any landowner who feels that the amount of the Special Tax, as to their Assessor's Parcel, is in error may file a notice with the Review/Appeal Board appealing the amount of the levy. The Review/Appeal Board shall interpret this Rate and Method of Apportionment of the Special Tax and make determinations relative to the annual administration of the special tax and any landowner appeals, as herein specified. "" I iIIIl c "" L. 4821-4005-1968.1 "" . , ... - .. Ill" . [ I I I D ~ m I C I m E l1li liJ ~ .. " IIIi ,D I :0 EXHIBIT "c" COMMUNITY FACILITIES DISTRICT NO. 1033 VERDEMONT FIRE STATION SERVICE AREA IN THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA SHEET 1 OF 3 PARCH NO. m III rn II] OWNFR REDEVELOPMENT AGENCY OF THE CITY Of' SAN BERNARDINO CITY OF SAN BERNARDINO MONICA lAORRDW. ET Al COVENANT/OASIS SAN BERNARDINO, lLC ~ TENTATIVE TRACT 15940 TENTATIVE TRACT 16457 -----------l .-..~-~..... SHEET 2 I I I I rr------------l I I SHEET 3 I I I I I I I I I I .~ I I .,Ii I I S' I I I I I ... \'ICIIIYUAP - I I I I I L___________ $101_______ rILED AT REQUEST Of CITY CLERI( -----....- -- ___.__.1 .ILl! . ....- ,""--. .cm..._ 11111[_.... .-......-,..-------. _'__"'__.In'l'___SUl'. ___.....W...___~1~___ _..1GD0Il_"'-'1'I'1Q~1lO.----, . DAVID IIVAM. _....aoCI...T.. _ ..----- --.... --- -- -- -......- -- ClTOI"___ ft -- I I I I I I I I I I I I I I I I I I I