AGENDA REPORT MEETING DATE:

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1 AGENDA REPORT MEETING DATE: March 25, 2014 SUBJECT: Annexation No. 116 to Community Facilities District No (Lighting, Landscaping, Open Space and Preserve Maintenance) ( CFD No ) Improvement Area F-53 and Future Annexation Areas Public Hearing. Recommendation Staff recommends the adoption of resolution making certain determinations pertaining to the annexation of certain territory to CFD No and Improvement Area F-53 thereto, designating Improvement Area F-53 to CFD No and authorizing the submittal of the Levy of the Special Tax to the qualified electors of such territory. Staff also recommends the adoption of resolution declaring the approval of the future annexation areas to Improvement Area F-53. Board or Commission Action The Planning Commission recommended approval of the General Plan, which created the mixed-use transitional zoning in this vicinity as well as the Palomar Station and Davia Village developments. The Traffic Commission has been briefed on transportation aspects including the proposed Palomar Station pedestrian bridge and Armorlite Drive complete street improvements. Relevant Council Strategic Theme Economic Development Good Governance Relevant Department Goal Not Applicable Introduction This is a public hearing for the annexation of property located adjacent to the Palomar College Sprinter station. These proceedings are intended to provide the public the ability to comment on the formation of such a district prior to Council authorizing the special tax. Discussion The City Council adopted a Resolution of Intention on February 11, 2014, to demonstrate its intent is to annex property to CFD and form Improvement Area F-53 pursuant to the Mello-Roos Community # 8.1

2 Facilities Act of 1982, as amended. Also, part of the Council s Actions on February 11, 2014, Council established its intent to include Future Annexation Areas of Improvement Area F-53. This public hearing will provide for public input on the core formation. The Future Annexation Areas will have a subsequent Public Hearing at this meeting to provide for public input for the areas being added to the Improvement Area in the future. Following Council approval of the Resolution of Intent for the Core Annexation Area, a mailed notice of this hearing was sent to all property owners within the area to be annexed. The Notice of Intention to annex territory to the CFD and authorization to levy the special tax was published in The Paper on March 17, The boundary of the territory to be annexed to the CFD, the public services proposed to be financed, and the rate and apportionment formula for the special tax are contained in the Special Tax Report. The Rate and Method of Apportionment ( RMA ) of Special Tax was adopted with the Resolution of Intent during the February 11, 2014 council meeting. The RMA establishes the means and methods by which the City administers the special tax. Subsequent to the adoption of the Resolution of Intent the Rate and Method has been amended. The changes to the RMA are provided in a strikeout copy of the original document. A final version of the RMA has also been attached to this report. The changes to the RMA are summarized below for clarity: Changes to the Rate and Method of Apportionment of Special Tax 1) The pavement maintenance allocation has changed from 100% allocation to the Improvement Area to 50% of the pavement maintenance allocation to the Improvement Area and 50% allocation to the City s Gas Tax (street maintenance) Fund. This allocation recognizes that traffic other than the mixed-use developments along Armorlite Drive will use the roadway. 2) The park maintenance allocation has changed from 100% allocation to the Improvement Area to 75% allocation to the Improvement Area and 25% allocation from the city-wide portion of parks. This change of allocation recognizes that there is a component of Citywide benefit from the small park that will be built between the Palomar Station and Davia Village projects. 3) The maximum rate assessable to the Palomar Station development will be set at predetermined percentages of the Maximum Tax Rate for the first five (5) years of the tax. The maximum amount assessable to the Palomar Station development will be 50% of the Maximum Tax at year 1, 60% of the Maximum Tax at year 2, 85% of the Maximum Tax at year 3, and 95% of the Maximum Tax for years 4 and 5. Should additional development come online during the initial five years of the special tax, the City will revert to administering the tax as it does for other improvement areas. This gradual increase recognizes that some public improvements to be maintained by the CFD, such as Armorlite Drive and the Palomar # 8.2

3 Station pedestrian bridge will not require maintenance until later in time and maintenance requirements will be minimal in the early years. 4) New verbiage has been added to describe the time period in which new properties must annex to the Improvement Area. All new annexations will be performed prior to issuance of first occupancy. If there is not a majority protest at this hearing, an election will be held by the property owners for the Core Annexation area. This election will be held by mail ballot on March 26, The results of the election will be reported to the City Council at the next City Council meeting and the City Council will be asked (a) to adopt a resolution declaring the results of such election and declaring the annexation of the Core Area to CFD No and IA F-53 thereto and (b) to introduce and waive the first reading of an ordinance authorizing the levy of the special taxes within IA F-53. As future development or redevelopment occurs within the boundary of the Future Annexation Area, the City will ballot the land owners for annexation into Improvement Area F-53. No existing development will be affected by this tax until such redevelopment creates a need to mitigate impacts. A summary of the properties to be annexed at this time, designated as the Core, and future parcels for annexation has been provided below. Summary of Parcels to be Annexed APN Development Name Status Use Core*/FA** Palomar Station Under Construction Commercial Core Palomar Station Under Construction Mixed Use Core Palomar Station Under Construction Mixed Use Core Palomar Station Under Construction Mixed Use Core Palomar Station Under Construction Mixed Use Core Davia Village Entitled Mixed Use FA Union Tribune Building Existing Development Industrial/Transitional MU-1 FA NCTD Park and Ride Existing Parking Industrial/Transitional MU-1 FA * Core Parcels forming the core district of the Special Improvement area. ** FA Parcel to be annexed at a future date. The Union Tribune site and a portion of the NCTD park and ride site can potentially be redeveloped per the new zoning designation. Fiscal Impact The CFD s provide ongoing funding for city services. The funds levied will fund the ongoing maintenance of various elements of City s infrastructure and provide critical revenues for ensuring a well maintained city making them consistent with the City Council Strategic themes of Economic Development and Good Governance. # 8.3

4 The maximum special tax for Special Improvement Area F-53 for fiscal year 2014, inclusive of citywide assessments and dormant items, will be $ per EDU ( Equivalent Dwelling Unit ). The anticipated maximum special tax of the entire district at build-out will be $447, in 2014 dollars. The anticipated maximum tax for the developments is summarized in the table below. The maximum tax is defined as the maximum tax that can be assessed in any given tax year and escalated every fiscal year based on the Consumer Price Index ( CPI ). Max Tax Citywide Max Tax F-Zone Max Tax Dormant Maximum Tax by Development in 2014 Dollars Palomar Station Davia Union Tribune Building NCTD Park and Ride $84, $93, $17, $11, $81, $89, $16, $11, $17, $18, $3, $2, Total $183, $202, $37, $25, Details and the break-down of assessments have been provided within the Amended Rate and Method of Apportionment attached to this Report. Attachment(s) Vicinity Map Boundary Map Future Annexation Boundary Map Resolution No Resolution No Amended Rate and Method of Apportionment Strikeout version of Rate and Method of Apportionment. Special Tax Report # 8.4

5 Prepared by: Reviewed by: Isaac Etchamendy, P.E. Associate Civil Engineer I \ Peter Kuey, P.E. Principal Civil Engineer Submitted by: Approved by: Mike Edwards, P.E. City Engineer/Public Works Director Jack Griffin, City Manager # 8.5

6 U:\Development Services Users\Engineering\Engineering\CFD Lighting and Landscape\CURRENT ANNEX\Annex 116 F-53 (Business Industrial - Armorlite Corridor)\F-53 Future Annexation Boundary.mxd 1/22/ :58:37 AM Armorlite Armorlite Dr Armorlite Dr Descanso Ave Via Via Vera Vera Cruz Cruz N Las Posas Rd Rd Palm Los Vallecitos Blvd Newport Dr Grand Ave AȨ Armorlite Dr Comet Comet Cir Cir W Mission Rd Transit Center Private Rd Private Rd Bingham Bingham Dr Bailey Ct " Every efort ha s been ma detoa ssurethea ccura cy of thema p s a n dda ta p rovided;how ever,somein forma tion ma y n ot bea ccura teor curren t.thecity ofsa n Ma rcos a ssumes n oresp on sibility a risin gfrom useofthis in forma tion a n din corp ora tes by referen ceits discla imer rega rdin gthela ckofa n y w a rra n ties,w hether exp ressed or imp lied,con cern in gtheuseofthesa me.for a ddition a lin forma tion seethediscla imer on thecity s w ebsite. Vicinity Map Core Annexation Area Future Annexation Area Feet 1in ch=400feet CREATED BY: City ofsa n Ma rcos GIS SOURCESOFDATA: Sa n GIS,12/12 # 8.6

7 BOUNDARY MAP COMMUNITY FACILITIES DISTRICT No LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA ANNEXATION No. 116 SPECIAL IMPROVEMENT AREA F-53 EXHIBIT "B" <7a7<<o3oo!Q ((!Q " & qj & & { " t-.;; (if cv & (if t-.;; cv & Y <by t-.;; cv & (if t-.;; cv t-.;; cv & (if t-.;; cv & t-.;; cv cv & t-.;; 219t634aoo 'fri!jt?sft Center & <by t-.;; cv.! JY <t 2ta16to3oo <by t-.;; cv & & t-.;; cv N 1 inch = 150 feet -.3 I' 0 I (1 FILED IN THE OFFICE OF THE CITY CLERK THIS? '"\ DAY OF vm '-/ PHILLIP SC CITY CLERK CITY OF SAN MARCOS, STATE OF CALIFORNIA THE ORIGINAL OF THIS DOCUMEI\IT WAS RECORDED ON FEB DOCUMENT NUMBER Ernest J Dronenburg. Jr. COUNTI' RECORDER SAl' DIEGO COUNTY RECORDER'S OFFICE TIME: 2.53 PM I HERBY CERTIFY THAT THE MAP SHOWING BOUNDARIES AND TERRITORIES TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT98-02, CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS AT A REGULAR MEETING THEREOF HELD ON THE \ \ DAY OF, 2014 BY ITS RESOLUTION NO ?f'd PHILLIP SCQLIK CITY CLERK CITY OF SAN MARCOS, STATE OF CALIFORNIA FILE NO FILED THIS DAY OF, 2014AT O'CLOCK IN BOOK...., PAGE OF MAPS OF ASSESSMENT AND COMMUNITY DISTRICTS IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. ERNEST J. DRONENBURG, JR. COUNTY RECORDER LEGEND ::r ANNEXATION BOUNDARY BY: DEPUTY COUNTY RECORDER 219-XXX-XX ASSESSOR'S PARCEL NUMBE # 8.7 SHEET 1 OF 1 CITY OF SAN MARCOS ;' co BOOK 1./l/ PG '

8 BOUNDARY MAP COMMUNITY FACILITIES DISTRICT No LIGHTINGJ LANDSCAPINGJ OPEN SPACE AND PRESERVE MAINTENANCE CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA FUTURE ANNEXATION AREA SPECIAL IMPROVEMENT AREA F-53 EXHIBIT "B" &!:> R rv df " /J " rv " rv <r976jssoo " rv & t /J " rv " rv &!li " rv " rv & ro o.>.a 76'.>. v 6J>oo N 1 inch = 200 feet "' C) ' & /J " rv <r9r6j<t<oo <r9r6j"joo & /J " rv <r976jj"oo <r91;><<6oo...- 0)...- N FILED IN THE OFFICE OF THE CITY CLERK THIS 2'{ DAY OF AfY'j THE ORIGIN.A.l OF THIS DOCUMENT WAS RECORDED ON FEB DOCUMENT NUMBER Ernest J. Dronenburg. Jr._ COUNTY RECORDER SAN DIEGO COUNTY RECORDER'S OFFICE TIME: 253 PM PHILLIP S(lOLLICK CITY CLERK CITY OF SAN MARCOS, STATE OF CALIFORNIA I HERBY CERTIFY THAT THE MAP SHOWING BOUNDARIES AND TERRITORIES TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT98-02, CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS AT A REGULAR MEETING THEREOF HELD ON THE i l 0 DAY OF (, 2014 BY ITS RESOLUTION NO ? 3. :::t- PHILLIP SOOL[I CITY CLERK CITY OF SAN MARCOS, STATE OF CALIFORNIA Cl. FILE NO # 8.8 FILED THIS DAY OF., 2014 AT O'CLOCK IN BOOK, PAGE OF MAPS OF ASSESSMENT AND COMMUNITY DISTRICTS IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. BOOK ERNEST J. DRONENBURG, JR. COUNTY RECORDER BY: DEPUTY COUNTY RECORDER SHEET 1 OF 1 LEGEND I I B2J 219-XXX-XX CORE ANNEXATION AREA BOUNDARY c FUTURE ANNEXATION AREA BOUNDARY ASSESSOR'S PARCEL NUMBER :.._ CITY OF SAN MARCOS ::::,... :::rlc co

9 RESOLUTION NO RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO (LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE), ANNEXATION OF TERRITORY TO SUCH COMMUNITY FACILITIES DISTRICT, DESIGNATING IMPROVEMENT AREA F-53 THERETO AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF SUCH TERRITORY ANNEXATION NO. 116, IMPROVEMENT AREA F-53 (A.P.N , , AND ) WHEREAS, the City Council of the City of San Marcos (the City Council ) has previously declared its intention and held and conducted proceedings relating to the annexation of territory as a separate improvement area therein pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof (the Act ) and the City of San Marcos Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of San Marcos under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the Ordinance ) (the Act and the Ordinance may be referred to collectively as the Community Facilities District Law ). The existing Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO (LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE) (the District ) and the proposed improvement area has been designated as IMPROVEMENT AREA F-53 ( IA F-53 ); and WHEREAS, notice of a public hearing relating to the annexation of territory to the existing District and IA F-53, the designation of IA F-53, the extent of the territory to be # 8.9

10 Resolution No Page 2 annexed, the furnishing of certain public services, minor amendments to the rate and method of apportionment of special tax and all other related matters has been given, and a Special Tax Report pertaining to the proposed annexation, as ordered by this City Council, has been presented and considered; and WHEREAS, the area proposed to be annexed is known and designated as COMMUNITY FACILITIES DISTRICT NO (LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE), ANNEXATION NO. 114, IMPROVEMENT AREA F-53 (the Annexed Territory ); and WHEREAS, subsequent to the adoption on February 11, 2014 by the City Council of Resolution No (the Resolution of Intention ) declaring the intention to annex the Annexed Territory to the District and IA F-53 and to authorize the levy of special taxes within the Annexed Territory pursuant to the rate and method of apportionment of special taxes as set forth in such resolution (the Original Rate and Method ), the City staff, in collaboration with the owner of the Annexed Territory, determined to recommend that the Resolution of Intention be amended by changing the Original Rate and Method so as to read as set forth in the modified rate and method of apportionment of the special taxes as set forth in Exhibit A attached hereto and incorporated herein by this reference (the Amended Rate and Method ); and WHEREAS, the modification of the Original Rate and Method to read as set forth in the Amended Rate and Method will not increase the probable special tax to be paid by the owner of any lot or parcel within the Annexed Territory; and WHEREAS, it has now been determined that written protests have not been received by fifty percent (50%) or more of the registered voters residing either within the # 8.10

11 Resolution No Page 3 Annexed Territory or the original District and/or property owners representing more than one-half (1/2) or more of the area of land proposed to be annexed to said District or within the original District; and WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote within the Annexed Territory for each of the ninety (90) preceding days, this legislative body desires to submit the levy of the required special tax to the landowners of the Annexed Territory, said landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. DETERMINATIONS It is determined by this City Council that: A. All proceedings prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Community Facilities District Law, and this finding is made pursuant to the provisions and authorization of Section of the Government Code of the State of California; B. The annexation of the Annexed Territory to the District and IA F-53 as proposed conform with the City of San Marcos Statement of Interim Goals and Policies regarding the establishment of Community Facilities Districts; C. Less than twelve (12) registered voters have resided within the Annexed Territory for each of the ninety (90) days preceding the close of the public hearing and, consequently, the qualified electors shall be the landowners of the Annexed Territory and each landowner who is the owner of record as of the close of the public hearing, or the authorized representative # 8.11

12 Resolution No Page 4 thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the Annexed Territory; D. The time limit specified by the Community Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified electors of the Annexed Territory and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Annexed Territory; E. The City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution annexing the Annexed Territory to the District and IA F-53; F. The proposed public services are necessary to meet increased demands placed upon the City as a result of development and/or rehabilitation occurring in the Annexed Territory; and G. The modification of the Resolution of Intention to amend the Original Rate and Method to read as set forth in the Amended Rate and Method will not increase the probable special tax to be paid by the owner of any lot or parcel and, therefore, the City Council is not required to direct that a report be prepared that includes a brief analysis of the impact of the proposed modifications the probable special tax to be paid by the owners of lots or parcels within the Annexed Territory.. 2. BOUNDARIES OF ANNEXED AREA The boundaries and parcels of land of the Annexed Territory and in which the public services are to be provided and on # 8.12

13 Resolution No Page 5 which special taxes will be levied in order to pay the costs and expenses for such public services are generally described as follows: All that property and territory proposed to be annexed to the District, as said property is shown on a map as previously approved by this legislative body, said map designated BOUNDARY MAP Community Facilities District No (Lighting, Landscaping, Open Space and Preserve Maintenance), City of San Marcos, County of San Diego, State of California, Annexation No. 116, Special Improvement Area F-53, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. 4. ESTABLISHMENT OF IMPROVEMENT AREA Pursuant to the provisions of the Community Facilities District Law, this City Council hereby designates Improvement Area F-53 which improvement area shall include the Annexed Territory. All proceedings for purposes of levying the special taxes within such improvement area shall apply only to such improvement area. 5. DESCRIPTION OF SERVICES The types of services provided in the District are generally described as follows: The maintenance, operation and management of the following types of facilities and properties: A. Public lighting and appurtenant facilities, including, but not limited to street lighting and traffic signals; B. Median landscaping and appurtenant facilities; # 8.13

14 Resolution No Page 6 C. Parkway landscaping and appurtenant facilities; D. Public or private property required by the City of San Marcos to be maintained as passive open space areas, including, but not limited to, passive open space areas, habitat preservation areas, slope areas and earthen/natural drainage channels and appurtenances; and E. Active open space areas including parks and trails and appurtenances. The services to be provided in the Annexed Territory shall include the foregoing citywide services as well as the maintenance, operation and management of the following facilities, to be provided solely to the Annexed Territory: A. Landscaping; B. Pavement; C. Pedestrian Lights;; D. Sidewalks; E. Signage F. Pedestrian Bridge G. Park Maintenance H. Street Furniture I. Dormant Hydromodification J. Dormant Bioswale; and K. Dormant Turf Block. For a full and complete description of the public services, reference is made to the final Special Tax Report for the District and the Special Tax Report for the Annexed Territory, a copy of each are on file in the Office of the City Clerk. # 8.14

15 Resolution No Page 7 6. SPECIAL TAX Except where funds are otherwise available, a special tax sufficient to pay for such services to be provided in the Annexed Territory, secured by recordation of a continuing lien against all non-exempt real property in the Annexed Territory will be levied annually within the boundaries of the Annexed Territory. For particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the Amended Rate and Method which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the Annexed Territory to clearly estimate the maximum amount of the special tax that such person will have to pay. The special taxes shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this City Council may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of San Marcos, acting for and on behalf of the District. 7. ELECTION The proposition related to the levy of the special tax shall be submitted to the qualified electors of the Annexed Territory, said electors being the landowners, with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within said Annexed Territory. The special election shall be held on the 26th day of March, 2014, and said election shall be a special election to be conducted by the City Clerk (hereinafter Election # 8.15

16 Resolution No Page 8 Official ). If the proposition for the levy of the special tax receives the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax may be levied as provided for in this Resolution. 8. BALLOT The ballot proposal to be submitted to the qualified voters at the election shall generally be as follows: PROPOSITION A CITY OF SAN MARCOS COMMUNITY FACILITIES DISTRICT NO ANNEXATION NO. 116, IMPROVEMENT AREA F-53 AUTHORIZATION FOR SPECIAL TAX LEVY Shall Community Facilities District No (Lighting, Landscaping, Open Space And Preserve Maintenance) of the City of San Marcos be authorized to levy special taxes within the territory identified as Improvement Area F-53 thereof pursuant to the rate and method of apportionment of special taxes (the Amended Rate and Method ) set forth in Resolution No to finance the authorized services and administrative expenses and to fund and replenish a reserve fund, all as provided for in the Amended Rate and Method? 9. VOTE The appropriate mark placed in the voting square after the word YES shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word NO in the manner as authorized, shall be counted against the adoption of said proposition. 10. ELECTION PROCEDURE The Election Official is hereby authorized to take any and all steps necessary for the holding of said election. Said Election Official shall perform and render all services and proceedings incidental to and # 8.16

17 Resolution No Page 9 connected with the conduct of said election, and said services shall include, but not be limited to the following: A. Prepare and furnish to the election officers necessary election supplies for the conduct of the election. B. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. C. Furnish and address official ballots for the qualified electors of the Annexed Territory. D. Cause the official ballots to be mailed and/or delivered, as required by law. E. Receive the returns of the election. F. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. G. Canvass the returns of the election. H. Furnish a tabulation of the number of votes given in the election. I. Make all arrangements and take the necessary steps to pay all costs of the election incurred as a result of services performed by the District and pay costs and expenses of all election officials. J. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. PASSED, APPROVED and ADOPTED this 25th day of March, 2014, by the following roll call vote: AYES: NOES: COUNCIL MEMBERS: COUNCIL MEMBERS: # 8.17

18 Resolution No Page 10 ABSENT: COUNCIL MEMBERS: James M. Desmond, Mayor City of San Marcos ATTEST: Phillip Scollick, City Clerk City of San Marcos # 8.18

19 RESOLUTION NO RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO (LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE) OF THE CITY OF SAN MARCOS, AUTHORIZING THE ANNEXATION OF TERRITORY IN THE FUTURE TO SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA F-53 THERETO WHEREAS, the CITY COUNCIL of the CITY OF SAN MARCOS, CALIFORNIA (the City Council ), has declared its intention, conducted proceedings and held a public hearing relating to the authorization to annex territory in the future to Community Facilities District No (Lighting, Landscaping, Open Space and Preserve Maintenance) of the City of San Marcos ( CFD No ) and Improvement Area F-53 ( IA F-53) thereto pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof and the City of San Marcos Community Facilities District Procedural Ordinance enacted pursuant to the powers reserved by the City of San Marcos under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"); and WHEREAS, notice of such public hearing was given in the form and manner as required by the Community Facilities District Law; and WHEREAS, all communications relating to the authorization to annex territory in the future were presented at such public hearing, and it has further been determined that a majority protest as defined by Government Code Section has not been # 8.19

20 Resolution No Page 2 of 8 received against the proposed annexation in the future to CFD No and IA F-53 thereto; and WHEREAS, in adopting the resolution establishing future annexation areas of CFD No and IA F-53 thereto, the City Council approved an amended rate and method of apportionment of the special tax authorized to be levied within CFD No and IA F-53 thereto (the Amended Rate and Method ), a copy of which is attached as Exhibit A hereto and incorporated herein by this reference, and the City Council, acting as the legislative body of CFD No , desires to make the same revisions to the special tax to be authorized to be levied within the territory proposed to be annexed in the future to CFD No IA F-53; and WHEREAS, it has now been determined to be within the best public interest and convenience to establish a procedure to allow and provide for future annexations to CFD No and IA F-53 thereto and further to specify the amount of special taxes that would be levied in any future annexation area, as well as setting forth the terms and conditions for certification of any annexation in the future; and WHEREAS, the area proposed to be annexed in the future shall be known and designated as FUTURE ANNEXATION AREA, COMMUNITY FACILITIES DISTRICT NO (LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE) IMPROVEMENT AREA F-53 (the Future Annexation Area ), and a map showing the territory of the area proposed to be annexed in the future has been submitted, which said map was previously approved by this City Council on February 11, 2014 and a copy of said map shall be kept on file with the transcript of these proceedings. # 8.20

21 Resolution No Page 3 of 8 NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: Section 1. Section 2. Recitals. The above recitals are all true and correct. Determinations. It is hereby determined by this City Council as follows: A. All prior proceedings pertaining to the annexation of the Future Annexation Area to CFD No and IA F-53 thereto in the future were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Act, and that this finding and determination is made pursuant to the provisions of Government Code Section B. Approval of the Amended Rate and Method will not result in an increase in the probable Special Tax to be paid by the owners of lots or parcels within the Future Annexation Area upon annexation to CFD No and IA F- 53 thereto. C. The written protests against the annexation of the Future Annexation Area to CFD No and IA F-53 thereto received, if any, do not represent a majority protest as defined by the Government Code Section and, therefore, the annexation of the Future Annexation Area to CFD No and IA F-53 thereto in the future has not been precluded by majority protest pursuant to Government Code Section D. The public convenience and necessity require a procedure to authorize and provide for territory to be annexed in the future to CFD No and IA F-53 thereto in order to finance the costs and expenses necessary to provide the public services and public facilities described below made # 8.21

22 Resolution No Page 4 of 8 necessary by the development or redevelopment of the Future Annexation Area. E. The annexation of the Future Annexation Area to CFD No and IA F-53 thereto in the future as proposed conforms with the City of San Marcos statement of goals and policies regarding the establishment of community facilities districts. F. The provision for the annexation of the Future Annexation Area to CFD No and IA F-53 thereto in the future and the authorization to levy special taxes within the Future Annexation Area upon the annexation thereof to CFD No and IA F-53 thereto to finance the public services described below does not constitute a commitment to finance any specific project which may result in a potentially significant physical impact on the environment. Such annexation and such authorization to levy special taxes constitutes the creation of a government funding mechanism which does not involve the commitment to any specific project which may result in a potentially significant physical impact on the environment. Therefore, the provision for the annexation of the Future Annexation Area to CFD No and IA F-53 thereto in the future and the authorization to levy special taxes within the Future Annexation Area upon the annexation thereof to CFD No and IA F-53 thereto does not constitute a project which is subject to the provisions of the California Environmental Quality Act (California Public Resources Code Section and following). # 8.22

23 Resolution No Page 5 of 8 Section 3. Annexation Authority. This legislative body does hereby authorize for the annexation of the Future Annexation Area to CFD No and IA F-53 thereto in the future pursuant to the provisions and authorization of Article 3.5 of the Act. Section 4. Description of the Future Annexation Area. A description of the Future Annexation Area is as follows: All that property and territory proposed to be annexed in the future to CFD No and IA F-53 thereto, as said property is shown on a map as previously approved by this legislative body, said map designated as Future Annexation Area, Community Facilities District No (Lighting, Landscaping, Open Space and Preserve Maintenance), Improvement Area F-53, City of San Marcos, County of San Diego, State of California and further designated as the Future Annexation Area, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. Section 5. Description of Types of Services and Facilities. The types of public services to be financed from the levy of special taxes in IA F-53, including the Future Annexation Area, are those described as follows: A. Public lighting and appurtenant facilities, including, but not limited to street lighting and traffic signals; B. Median landscaping and appurtenant facilities; C. Parkway landscaping and appurtenant facilities; # 8.23

24 Resolution No Page 6 of 8 D. Public or private property required by the City of San Marcos to be maintained as passive open space areas, including, but not limited to, passive open space areas, habitat preservation areas, slope areas and earthen/natural drainage channels and appurtenances; and E. Active open space areas including parks and trails and appurtenances. F. Landscaping; G. Pavement; H. Pedestrian Lights;; I. Sidewalks; J. Signage K. Pedestrian Bridge L. Park Maintenance M. Street Furniture N. Dormant Hydromodification O. Dormant Bioswale; and P. Dormant Turf Block. The public services and public facilities shall to the maximum extent practicable, taking into account budgetary and operational demands of the City of San Marcos, be provided in common within IA F-53 and the Future Annexation Area. Section 6. Special Taxes. It is the intention of this legislative body that, except where funds are otherwise available, a special tax sufficient to pay for such services to # 8.24

25 Resolution No Page 7 of 8 be provided in the Future Annexation Area, secured by recordation of a continuing lien against all non-exempt real property in the Future Annexation Area, will be levied annually within the boundaries of the Future Annexation Area pursuant to the Modified Rate and Method. The special taxes shall be those as originally authorized through the designation of IA F-53 and adopted by Ordinance of this legislative body, and no changes or modifications are proposed in the special taxes from those as originally set forth and made applicable to IA F-53. For particulars as to the rate and method of apportionment of the proposed special tax reference is made to the Modified Rate and Method which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the Future Annexation Area to clearly estimate the maximum annual amount that said person will have to pay on said special tax. The proposed special taxes shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; however, as applicable, this legislative body may establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by CFD No Section 7. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section , this City Council hereby establishes the following accountability measures pertaining to the levy by CFD No of the special taxes described in Section 5 above: # 8.25

26 Resolution No Page 8 of 8 A. Each such special tax shall be levied for the specific purposes set forth in Section 5 above. B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 5 above. C. CFD No shall establish a separate account into which the proceeds of each such special tax shall be deposited. D. The City Manager or his or her designee, acting for and on behalf of CFD No , shall annually file a report with the City Council as required pursuant to Government Code Section Section 8. Annexation Effective Date. Annexation of territory in the Future Annexation Area to CFD No and IA F-53 thereto in the future shall be effective only upon the unanimous approval of the owner or owners of each parcel or parcels to the annexation of such parcel or parcels and the election by such owner or owners to subject such parcel or parcels to the levy of the special tax at the time that any parcel is proposed for annexation. Upon receipt of the written consent and the election by such owner or owners, no further public hearings will be required to effectuate the annexation of such parcel or parcels to CFD No and IA F-53 thereto. Section 9. Effective Date of Resolution. This resolution shall become effective upon its adoption. PASSED, APPROVED AND ADOPTED by the Council of the City of San Marcos, California, this 25th day of March, 2014, by the following vote: AYES: COUNCILMEMBERS: # 8.26

27 Resolution No Page 9 of 8 NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: James M. Desmond, Mayor, City of San Marcos ATTEST: Phillip Scollick, City Clerk, City of San Marcos # 8.27

28 Exhibit A Amended Rate and Method of Apportionment A - 1 # 8.28

29 COMMUNITY FACILITIES DISTRICT NO (LIGHTING, LANDSCAPING, OPEN SPACE AND PRESERVE MAINTENANCE) IMPROVEMENT AREA NO. F-53 Exhibit A AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Section 1. Introduction Special Taxes shall be annually levied on all Assessor's Parcels (as hereinafter defined) in that territory included within Improvement Area No. F-53 (the "Territory") of Community Facilities District No of the City of San Marcos, County of San Diego, State of California (the "District"), in accordance with this Rate and Method of Apportionment of Special Tax (the "RMA") hereinafter set forth. All of the property within the Territory, unless otherwise exempted by law or the express provisions of the RMA, shall be taxed to the extent and in the manner provided below. Proceedings for the establishment of the Territory shall be completed prior to the first occupancy following July 26, 2011 for the property included in such proceedings (i.e., proceedings in connection with Annexation No. 116 to the District"). Proceedings for any annexation to the Territory shall be completed no later than the first occupancy following July 26, 2011 for the property that is the subject of such annexation to the Territory. Section 2. Definitions Acreage: The area of an Assessor's Parcel as shown on the latest map of the County Assessor of the County of San Diego, or if the area of an Assessor's Parcel is not shown on such a map, the area shown on a current recorded subdivision map, parcel map, record of survey or other recorded document creating or describing the Assessor's Parcel. If the preceding maps are not available, the area shall be determined by the City Engineer. An Acre means 43,560 square feet of land. The Acreage attributable to the commercial portion of a mixed-use building, with mixed-use meaning both residential and commercial uses located within the same building, shall be the lesser of (i) the Acreage for the Assessor's Parcel on which such building is or is to be located or (ii) the commercial building square footage multiplied by three and then divided by 43,560. If such commercial building square footage is subdivided into one or more Condominiums pursuant to a Condominium Plan, then the Acreage for each such Condominium for purposes of (i) above shall be equal to the Acreage of the common interest property for such Condominium as determined by the City Engineer. Active Improvement Area Special Tax: The maximum special tax that can be levied on A-1 # 8.29

30 any Assessor's Parcel in any Fiscal Year to pay for the Active Improvement Area Services. Administrative Cost: Any ordinary and necessary expense incurred by the City or the District in the administration of the District allocable to the Territory including but not limited to the levy and collection of the Special Tax within the Territory. Approved Property: Assessor's Parcels for which a final subdivision map has been recorded and/or conditional use permit or other development permit, but not a building permit, has been issued by the City prior to March 1 preceding any Fiscal Year which would permit development of such Assessor's Parcel or portion of such Assessor's Parcel without the necessity to obtain further discretionary land use entitlements. Assessor's Parcel: A parcel of land or Condominium in the Territory designated and assigned a discrete identifying number on an Assessor's Parcel Map of the County Assessor of the County of San Diego. Assessor's Parcel Map: An official map of the County Assessor of the County of San Diego designating parcels by Assessor's Parcel number. Authorized Services: Citywide services including Zone A Street Lighting, Zone B Traffic Signals, Zone C Street Medians, Zone D Citywide Parks and Zone E Citywide Trails, ("Citywide Services") as described in the "Special Tax Report Community Facilities District No City of San Marcos Mello-Roos Community Facilities Act of 1982 Citywide Landscaping and Lighting" dated August 25, 1998 and those active and dormant Improvement Area No. F-53 services (individually, the "Active and Dormant Improvement Area Services" and together the "Improvement Area Services") as described in the "Special Tax Report Community Facilities District No , Improvement Area F-53, City of San Marcos Mello-Roos Community Facilities Act of 1982 Citywide Landscaping and Lighting." City: The City of San Marcos. Citywide Special Tax: The maximum special tax that can be levied on any Assessor's Parcel in any Fiscal Year to pay for the Citywide Services. Condominium: means a condominium as defined in California Civil Code Section Condominium Plan: means a condominium plan pursuant to Civil Code Sections 4120 and District: Community Facilities District No (Lighting, Landscaping, Open Space and Preserve Maintenance) of the City. Developed Property: Any Assessor's Parcel for which a building permit has been issued A-2 # 8.30

31 by the City after July 26, 2011 but prior to the March 1 preceding the Fiscal Year for which the Special Tax is being levied. Dormant Improvement Area Services Provider(s): The property owner or owners and/or, if applicable, the association(s), including any master or sub-association(s), responsible for the provision of the Dormant Improvement Area Services. Dormant Improvement Area Special Tax: The maximum special tax rate that can be levied on any Assessor's Parcel in any Fiscal Year to pay for the Dormant Improvement Area Services. Exempt Property: Property owned by, conveyed, dedicated, or irrevocably offered for dedication to a public agency; land that is in the public right-of-way; and utility easements which are not occupied on a regular basis by employees of the benefiting utility which make utilization of the property encumbered by such easement for purposes other than that set forth in the grant of such easement impractical; privately owned, common area property, streets and parks, and open space lots including, but not limited to, such property owned by a property owners association; property zoned as open space; property used as a golf course, other than clubhouse facilities. However, property owned by a public agency but leased to an end user for purposes other than public use will not be classified as exempt. Extraordinary Special Tax: That special tax levied pursuant to the provisions of Section 7 below. Fiscal Year: The period beginning on July 1 and ending on the following June 30. Index: The Consumer Price Index for the San Diego Region as published by the United States Department of Commerce. Maximum Annual Special Tax: The maximum special tax that can be levied on any Assessor's Parcel in any Fiscal Year. Maximum Annual Special Tax Rate: The maximum annual special tax rate or rates as set forth in Section 4 of the RMA. Property Classification: A classification of property specified below. Reserve Fund: A fund established initially with the annexation of the Territory to the District and funded as needed from year to year with proceeds from the Special Taxes. If there are less than 500 EDUs within the Territory, the Reserve Fund shall be funded in an amount equal to $128, for the Citywide Services and $147, for the Improvement Area Services (the "Reserve Fund Requirement"). If there are 500 or more EDUs within the Territory, the Reserve Fund shall be funded in an amount equal to $314, for the Citywide Services and $360, for the Improvement Area A-3 # 8.31

32 Services. The preceding dollar amounts shall be increased each Fiscal Year commencing with Fiscal Year by the percentage change in the Index. Special Tax: The special tax levied on each Assessor's Parcel pursuant to this RMA for any Fiscal Year to meet the Special Tax Requirement. Special Tax Requirement: The amount sufficient (i) to pay the Territory's proportional share of direct costs to the City, the District and their contractors, agents or assigns associated with providing the Authorized Services, (ii) to pay for the Administrative Costs allocable to the Territory and associated with providing the Authorized Services, and (iii) to establish and replenish the Reserve Fund balance to the Reserve Fund Requirement. Taxable Assessor's Parcel: An Assessor's Parcel classified as Developed, Approved or Undeveloped Property and which is not Exempt Property. Undeveloped Property: An Assessor's Parcel not classified as Developed Property, Approved Property or Exempt Property. Zone: An area consisting of a group of Assessor's Parcels, which may or may not be contiguous, which will participate in the cost of providing a particular facility or service. Section 3. Property Classification The Property Classifications to which Assessor's Parcels in the Territory shall be assigned are: Developed Property Approved Property Undeveloped Property Exempt Property As of July 1 of each Fiscal Year, commencing with July 1, 2014, using the definitions above, the District shall cause each Assessor's Parcel to be classified into one of the Property Classifications noted above. Section 4. Maximum Annual Special Tax Rates The Maximum Annual Special Tax Rates are specified in Tables 1 and 2 on the following page. The Maximum Annual Special Tax for any Assessor's Parcel shall be the sum of the applicable Citywide Special Tax, Active Improvement Area Special Tax, and Dormant Improvement Area Special Tax. The Citywide Special Tax for an Assessor's Parcel shall be computed by multiplying the equivalent dwelling units ("EDUs") applicable to such Assessor's Parcel as determined from Table 1 below by the corresponding City Services Special Tax rates determined from Table 2 below. The Active Improvement Area Special Tax and the Dormant Improvement Area Special Tax A-4 # 8.32

33 for an Assessor's Parcel shall similarly be computed by multiplying the equivalent dwelling units ("EDUs") applicable to such Assessor's Parcel as determined from Table 1 below by the corresponding Active Improvement Area Special Tax rate and Dormant Improvement Area Special Tax rate set forth in Table 2 below. Notwithstanding the assignment of an Assessor's Parcel to one of the four Property Classifications above, each Assessor's Parcel may be comprised of residential as well as commercial land uses in which case the Maximum Annual Special Tax for the Assessor's Parcel shall be the sum of the Maximum Annual Special Taxes for both land uses. PROPERTY CLASSIFICATION Developed Property Residential TABLE 1 EQUIVALENT DWELLING UNITS CITYWIDE SERVICES ZONES A, D, AND E CITYWIDE SERVICES ZONE B IMPROVEMENT AREA SERVICES 1 EDU/Residential Unit 1 EDU/Residential Unit 1 EDU/Residential Unit Commercial 2.65 EDU/Acre EDU/Acre 2.65 EDU/Acre Approved Property EDU/Acre EDU/Acre EDU/Acre Undeveloped Property NA NA EDU/Acre Exempt Property NA NA NA AUTHORIZED SERVICE Citywide Services TABLE 2 MAXIMUM ANNUAL SPECIAL TAX RATES PER EDU FISCAL YEAR BENEFIT UNIT MAXIMUM ANNUAL SPECIAL TAX RATE Zone A Street Lighting EDU $ Zone B Traffic Signals EDU $9.818 Zone D Park Maintenance EDU $ Zone E Trail Maintenance EDU $9.665 Total Citywide Services EDU $ Active Improvement Area Services EDU $ Dormant Improvement Area Services EDU $ TOTAL EDU $ Assignment of Maximum Annual Special Tax: A Maximum Annual Special Tax will be assigned to all Assessor's Parcels classified as Developed Property, Approved Property or Undeveloped Property as of July 1 of the Fiscal Year in which such classification occurs. All Assessor's Parcels of Developed Property A-5 # 8.33