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Resolution 2000-74 . . RESOLUTION NO. 2000-74 A RESOLUTION OF INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT CITY OF GILROY Community Facilities District No. 2000-1 (Highway 152) RESOLVED, by the City Council (the" Council") of the City of Gilroy (the" City"), State of California that WHEREAS, under the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), O1.apter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code, this Council is authorized to establish a community facilities district and to act as the legislative body for a community facilities district; and WHEREAS, this Council, having received petitions from the owners of not less than 10% of the area of land proposed to be included in the proposed community facilities district, now desires to proceed with the establishment of a community facilities district in order to finance costs of public infrastructure necessary or incident to development in the areas adjoining the intersection of Highways 101 and 152 in the City. NOW, THEREFORE, IT IS ORDERED as follows: 1. Authority. This Council proposes to conduct proceedings to establish a community facilities district pursuant to the Act. 2. Name of CFD. The name proposed for the community facilities district is City of Gilroy Community Facilities District No. 2000-1 (Highway 152) (the" CFDH). 3. Boundaries Described. The proposed boundaries of the CFD are as shown on the map of it on file with the City Clerk, which boundaries are hereby prelirninarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, the map of the boundaries of the CFD in the office of the Santa Clara County Recorder within fifteen days of the date of adoption of this Resolution, but in any event at least fifteen days prior to the public hearing specified below. RESOLUTION NO. 2000-74 -1- , . . 4. Facilities. The type of public facilities and seroices proposed to be financed by the CFD and pursuant to the Act shall consist of those listed as facilities on Exhibit A hereto and hereby incorporated herein (the "Facilities"). The Council hereby determines that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring within the CFD. The Council hereby finds and determines that the public interest will not be served by allowing the property owners in the CFD to enter into a contract in accordance with Section 53329.5(a) of the Act. Notwithstanding the foregoin& the Council, on behaH of CFD, may enter into one or more contracts directly with any of the property owners with respect to the construction and! or acquisition of the any portion of the Facilities. 5. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities, the Services and! or the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and! or acquire the Facilities, a special tax (the "Special Tax") sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as this Councilor its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto and hereby incorporated herein. This Council hereby finds that the provisions of Section 53313.6,53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD. 6. Exempt Property. Except as may otherwise be provided by law or by the rate and method of apportionment of the Special Tax for the CFD, alI1ands owned by any public entity, including the United States, the State of California and!or the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax to be made to cover the costs and expenses of the Facilities and the CFD. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, this Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the rate and method of apportionment of the Special Tax. 7. Election. The levy of the Special Tax shall be subject to the approval of the qualified electors of the CFD at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the proposed CFD, with each owner having one vote for each acre or portion of an acre such owner owns in the CFD. 8. Special Tax Bonds. It is the intention of this Council, acting as the legislative body for the CFD, to cause bonds of the City to be issued for the CFD pursuant to the Act to finance in whole or in part the construction and! or acquisition of the Facilities. The bonds shall be in the aggregate principal amount of not to exceed $35,000,000, shall be issued in such series RESOLUTION NO. 2000-74 -2- . . and bear interest payable semi-annually or in such other manner as this Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. 9. CFO Report. The City's Community Development Director, as the officer having charge and control of the Facilities in and for the CFD, or the designee of such officer, is hereby directed to study said proposed Facilities and to make, or cause to be made, and file with the City Clerk a report in writing, (the" CFD Report") presenting the following: (a) A description of the Facilities by type which will be required to adequately meet the needs of the CFD. (b) An estimate of the fair and reasonable cost of the Facilities including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. The CFD Report shall be made a part of the record of the public hearing specified below. 10. Public Hearing. December 18, 2000, at 7:00 p.m. or as soon as possible thereafter, in the Council Chambers, City Hall, 7351 Rosanna Street, Gilroy, California, are hereby fixed as the date, time and place when and where this Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the levy of the Special Tax. 11. Notice of Hearing. The City Oerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper published in the area of the CFD. The publication shall be completed at least seven days before the date of the public hearing specified above. The City Oerk shall also cause notice of the hearing to be given to each property owner within the CFD by first class mail, postage prepaid, to each such owner's addresses as it appears on the most recent tax records of Santa Clara County or as otherwise known to the City Oerk to be correct. Such mailing shall be completed not less than fifteen days before the date of the public hearing. Each of the notices shall be substantially in the form specified in Section 53322 of the Act, with the form summarizing the provisions hereof specifically approved. 12 Consultants. For purposes of the conduct of the proceedings for the CFD, the City Council hereby appoints the following consultants: David Taussig & Associates, Sacramento California, as special tax consultant; Northcross, Hill & Ach, San Francisco, California, as financial advisor; Jones Hall, A Professional Law Corporation, San Francisco, California, as bond counsel and Foley & Lardner, San Francisco, California, as disclosure counsel. The Director of Administrative Services shall cause suitable agreements to be executed with each of the foregoing consultants for their services. RESOLUTION NO. 2000-74 -3- . . ****** PASSED AND ADOPTED this 17th day of November, 2000, by the following vote: AYES: COUNCILMEMBERS:, MORALES, PINHEIRO, VELASCO, SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: G. ARELLANO, P. ARELLANO, SUDOL APPROVED: .~~ c-...-(J ~ Thomas W. Springer, Mltyor :;!1,. // .. .. 1'f1jifC~LCr-' Rhonda Pellin, City Clerk RESOLUTION NO. 2000-74 -4- . . EXHIBIT A CITY OF GILROY Community Facilities District No. 2000-1 (Highway 152) DESCRIPTION OF FACILITIES The Facilities shown below are to be financed by the above-designated community facilities district (the "CPO") of the City of Gilroy (the "City"). The Facilities shall include the attributable costs of engineering, design, planning, environmental approvals, plan checking and coordination, together with the expenses related to the issuance and sale of any spedal tax bonds, including financial advisory fees, underwriters' discount, appraisals, reserve fund, capitalized interest, bond counsel, special tax consultant, bond and official statement printing and all other expenses incidental thereto. The Facilities shall be constructed pursuant to plans and specifications approved by the City and the officials thereof, including the City Engineer and the Facilities may be constructed under one or more contracts, as approved by the City. The Fadlities shall also include, as required, demolition and removal of existing unusable improvements, clearing, grubbing, grading and the installation of monumentation, signs, signals, landscaping and related irrigation systems, and the making of conforming improvements to adjacent streets and other existing improvements. The Facilities consist generally of the Highway 152 Improvements and the Other Improvements, as follows: 1. The Highway 152 Improvements include interchange improvements at U.S. 101 and Highway 152, consisting generally of: a new south-bound loop off-ramp, overcrossing structure widening, modification of existing on-ramps; widening of Highway 152 to four lanes between the Highway 101 interchange and L1agas Creek; installation of traffic signals on Hwy 152 at the north-bound off-ramp to Highway 101, Camino Arroyo, Wellington Blvd. (named for identification only) and the employee parking lot entrance to Gilroy Foods; widening of the existing L1agas Creek Bridge and old creek bridges; and transitioning from four to two lanes east of the old creek bridge together with the construction and installation of pavement, curbs, gutters, sidewalks and storm drainage facilities and safety lighting. 2. The Other Improvements are those necessitated by development in the CFO and include additional frontage improvements within the proposed Highway 152 right-of-way between the Highway 101 interchange and the L1agas Creek bridge and public street and utility improvements for the properties within the CFO, consisting generally of: pavement widening; new street construction; traffic signals; curb, gutter, sidewalk; underground utility facilities; storm drainage, sanitary sewers and potable water facilities and; and street lighting. Exhibit A Page 1 . . EXHIBIT B CITY OF GILROY COMMUNITY FACILITIES DISTRICT No. 2000-1 (Highway 152) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor's Parcel in Community l"acilities District No. 2000-1 {Highway 152) [herein "CFD No. 2000-1"] shall be levied and collected according to the ta.,"C liability determined by the City Council of the City of Gilroy, through the application of the appropriate amount or rate for Tanble Property, as described. below , All of the property in CFD No. 2000-1, unless exempted by law or by the provisions of Section E below. shall be taxed for the puIPoses, to the extent, and in the manner herein provided, including property subsequently annexed to CFD No. 2000-1 unless a separate Rate and Method of Apportionment of Special Ta."( is adopted for the annexation area. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre 0[" Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map, parcel map. or other recorded County parcel map. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311), Division 2 of Title 5 of the Government Code of the State of California. "Administrator" shall mean the person or firm designated by the City to administer the Special T a, according to this Rata and Mathod of Apportionment of Special Tax, "Assessor's Parcel" or "Parcel" !DI:aDS a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel nwnber. "Assesso["' s Parcel Map" means an official map of the County Assessor of the County of Santa Clara designating parcels by Assessor's Parcel Number, "City" means the City of Gilroy: "Council" means the City Council of the City of Gilroy, acting as the legislative body of CFD No. 2000-1. J . . "Development Trigger" means, for Improvement Area #4, that a Final Map has been recorded or a building permit for new constrUCtion has been issued that will result in a use within the Improvement Area other than food processing operations for Gilroy Fouds. "Final Map" means a fino! map or Parcel map approved pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots for which building permits may be issued. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "IDghway 152 Bonds" means bonds or other debt (as defIned in the Act), whether in one or more series, issued by CFD No. 2000-1 under the Act to pay for the con~trUCtion or acquisition of improvements to Highway 152. "IDghway 152 Specia1'"Tax Requirement" means the amount necessary in any Fiscal Year (i) to pay principal and interest on Highway 152 Bonds, (ii) to create or repleoish reserve funds established for Highway 152 1:30nds, (iii) to cure any delinquencies in the payment of principal or interest on Highway 152 Bonds which have occurred in the prior Fiscal Year or (based on deliDquencies in the pllyment of Special Taxes which have already taken place) are expected to occur in the Fiscal Year in which the tIDe will be collected, (iv) to pay administrative expenses of the CFD that are not associated with Supplemental Bonds, and (v) to pay construction expenses to be funded directly from Special Tax proceeds, as applicable. "JJnprovement Ana" means one of the eight mutually exclusive geographic areas defined below and identified in Attachment A of this Rate and Method of Apportionment of Special Tax. "Improvement Area #1" means the geographic area that, at the time of formation of CFD No. 2000-1, was: (i) identified by Assessor's Parcel numbers 841-17-80 and 841-17-04, (ii) identified on the eFD boundary map as the Lands of Wellington, and (iii) identified iD Attachment A oflhis Rate and Method of Apportionment of Special Tax as Improvement Area #1. "Improvement Area #2" means that geographic area that, at the time of formation of CPO No. 2000-1. was: (i) identified by Assessor's Parccl numbers 841-18-43 and 841-18-44, (ll) identified on the CFD boundary map as the Lands of Tenth Street Enterprises, and (ill) identified in Attachment A of this Rate and Method of Apportionment of Special Tax as Improvement Area #2. "Improvement Area #3" means that gcogn.phic arca that, at the time of formation of CFD No. 2000-1, was: (i) identified by Assessor's Parcel number 841-18-42, (ii) identified on the CPO boundary map a.~ the Lands of Machado, and (iii) identified in Attachment A of this Rate and Method of Apportionment of Special Tax as Improvement Area #3. "Improvement Area #4" means that geographic area that, at the time of formation of CFD No. 2000-1, was: (i) identified by Assessor's Pa=1 numbers 841-17-05, 841-17-75, 841-17-76, 841- 17-77, 841-17-78 and 841-17-79, (ll) identified on the cm boundary map as the Lands of 2 . . Conagra, Inc, and (ill) identified in Attachment A of this Rate and Method of Apporti~nment of Special Tax as Improvement Area #4. . "Improvement Area #5" means that geographic area that, at the time of formation of CFD No. 2000-1, was: (i) identified by Assessor's parcel number 841-67-23, (ll) identified on the CFD boundary map as the Lands of Baba, and (ill) identified in Attachment A of this Rate and Method of Apportionment of Special Tax as Improvement Area #5. In addition to the foregoing, any property which aIlDCxes into CFD No. 2000-1 after formation of the CFD shall be added as part of Improvement Area #5 and taxed pursuant to the procedure set forth in Section C.5 below. "Improvement Area #6" means that geographic area that, at the time of formation of CFD No. 2000-1, was: (i) identified by Assessor's Parcel number 841-67-24, (ii) identified on the CFD boundary map as the Lands of Headstart Nurseries, and (iii).identified in Attachment A of this Rate and Method of Apportionment of Special Tax as lInprovement Area #6. "hnprovement Area #7" means that geographic area that, at the time of formation of CFD No. 2000-1, was: (i) identified by Assessor's Parcel numbers 841-70-18, 841-70-19 and 841-70-21, (ii) identified on the CFD boundary map as the Lands of Berry, and (Hi) identified in Attachment A of this Rate and Method of Apportionment of Special Tax as Improvement Area #7. "Improvement Area #8" means that geographic area that, at the time of formation of CFD No. 2000-1, was: (i) identified by Assessor's Parcel number 841-67-20; (ii) identified on the C.FU bOUDdary map as the Lands of South COUDty Development, and (ill) identified in Attachment A of this Rate and Method of Apportionment of Special Tax as Improvement Area #8. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied in any Fiscal Year. "Public Property" means any property within the boundaries of CFD No. 2000-1 that is owned by the federal government, State of California or other local governments or public agencies. "Special Tax" means a Special Tax levied in any Fiscal Year to pay the Highway 152 Special Tax Requirement andlor the Supplemental Bonds Special Tax Requirement, "Subsequent Sale" means a sale of property within Improvement Area #2 which results in a recalculation of the Special Tax to pay Supplemental Bonds on property within lInprovement Area #2 pursuant to Section C.2 below. Only 01lC Subsequent Sale and one recalculation of the Maximum Special Tax shall be pennlttea within Improvemenl Area #2; no such recalculations shall occur within other Improvement Areas. "Supplemental Bonds" means any Bonds, the debt service of which are secured by the Supplemental Special Tax in Improvement Areas #1, #2, #3, #6, #7 or #8, that have been issued to pay for public facilities other than improvements to Highway 152. 3 . . "Supplemental Bonds Special Tax Requirement" Illeans the amount necessary in any fiscal Year (i) to pay principal and interest on Supplemental Bonds, (ii) to create or replenish reserve fimds established for Supplemental Bonds, (iii) to cure any de!iDqw::ucies in thc payment of principal or interest on Supplemental Bonds which have occurred in the prior Fiscal Year or (based on dclinquenQies in the payment of Special Taxes which have already taken place) arc: expected to occur in the Fiscal Year in which the tax will be collected, (iv) to pay adIninistrative expenses of the CFD that are not associated with the Highway 152 Bonds, and (v) to pay construction expenses to be funded directly from Special Tax proceeds, as applicable. "Taxable Property" means all of thl: Assessor's Parcel3 within the boundaries of CFD No. 2000- 1 wllli:h are not exempt from the Special Tax pursuant to law or Section E below. B. DATA FOR ANNlJAI, AnMlNIS1'RATION OF SPECIAL TAX On or about July 1 of each Fiscal Year, the Administrator shal1 identify the current Assessor's l:'arce1 numbers for Taxable Property within each Improvement Area. If it is determined that one or Illore Parcels include property in more than one !Illprovement Area, the Administrator shall determine the Acreage that falls within each Improvement Area for purposes of deteJmining the MaxiInum Special Tax pursuant to Section C below. On or about July 1 of each Fiscal Year, the Administrator shall also detennine: (1) whether a Supplemenml Bond Issue bas occurred for Improvement Areas #1, #2, #3, #6, #7 and/or #8, (ii) whether a SUbsequent Sale has occurred within Improvement Area #'2, and whether a Development Trigger has occurred on property in lInprovement Area #4. c. MAXIMUM: SPECIAL TAX 1. Improvement Area #1 The Maximum Special Tax in lInprovelllent Area #1 is $2,046 p.~r Acre until such time as a Supplemental Bond Issue takes place for public improvements within Improvement Area #1, at which time the MaximUD'l Special Tax shall increase to $15,262 per Acre. Notwithstanding the foregoing, the actual Special Tax ~ within Improvement Area #1 in any Fiscal Year to pay the Highway 152 Special'l'ax Requirement shall he the same per- Acre amount that is levied to pay the Highway 152 Special Tax Requirelllent in ImprovcDJCIIl Area #5. 2. Tmprnvement Area #2 The Maximum Special Tax in Improvement Area #2 is $2,046 per Acre until such time as a Supplem.eIttal. Bond Issue takes place for public iInprovements within Improvement Area #2, at which time the Maximum Special Tax shall increase to $8,041 per Acre. Notwith!:t~nrling the foregoing, the actual Special Tax ~ within Improvement Area #2 4 . ~ . in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be tl>>.ume per- Acre amount that is levied to pay the Highway 152 Special Tax Rcquitement in Improvement Area #5. At such time as a Subsequent Sale takes place within Improvement Area #2. the property that remains under the ownership of Tenth Street Enterprises shall be subject to a Maximum Special Tax of $2,046 per Acre, and the property which is sold by Tenth Street Enterprises shall be subject to a Maximum Special Tax which is calculated as follows: Step 1: Based on an cngint:er's review of maps and development plans for the propertY which was sold, determine the net acreage of the property that was sold by red11C"ing the grn~s acreage of the propertY by the acreage expected to be deliicated for major roads and public facility sites. Step 2: Reduce the net acreage determined in Step I by ten percent (10%) 10 calculate the net UW1ble acreage. Step 3: Divide $4'11,044 (fiscal year 2002-03 dollars) by the net taxable acreage from Step 2 to calculate the Maximum Special Tax per Acre associated with Supplemental Bonds. Step 4: Add $2,046 per Acre to the amount determined in Step 3 to determine I1u:: total Maximum Special Tax for property sold by Tenth Street Enterprises through the Subsequent Sale. 3. Improvement Area #3 The Maximum Special Tax in Improvement Area #3 is $1,023 per Acre until such time as a Supplemental Bond Issue takes place for public improvements within Improvement Area #3, al which tiIm: !he; Maximum Special Tax shall increase to $11,596 per Acrc. Notwithstanding the foregoing, the acUJ.a1 Special Tax ~ within Improvement Area #3 in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be one-half of the pcr-acre amount that is levied to pay the Highway 152 Special Tax Requirement in Improvement Area #5. 4. Improvement Area #4 No Special Tax shall be levied within Improvement Area #4 until such time as a Development Trigger (as defined in Section A) occurs within Improvement Area #4, at which time the Maximum Special Tax within Improvement Area #4 shall be $2,046 per Acre. 5 . . 5. Improvemenr Area #5 The Maximum Special Tax in Improvement Area #5 is $2,046 per Acre. Notwithstanding the foregoing, the actual Special Tax ~ within Improvement Area #5 in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall he the same per-Acre amount that is levied to pay the Highway 152 Special Tax Requirement in Improvement Areas #1, H2, #6, H7 and #8. and within Improvement Area #4 after a Development Trigger takes place. 6. Improvemenr Area #6 Tbe Maximum. Spccial Tax in Improvement Area #6 is $2,046 per Acre until such time as a Supplemental Bond Issue takes place for public improvements within Improvement Area #6. at which time the Maximum Special Tax shall increase to $10.147 per Acre. Notwithstanding the foregoing, the actual Special Tax ~ within Improvement Area #0 in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be the same per- acre amount that is levied to pay the Highway 152 Special Tax Requirement in Improvement Area #5. 7. Improvement Area #7 The Maximum Special Tax in Improvement Area #7 is $2,046 per Acre until such time as a. Supplemental Bond Issue takes place for public improvements within Improvement Area #7, at which time the Maximum Special Tax shall increase to $8,730 per Acre. N otwitbstanding the foregoing, the actual Special Tax ~ within Improvement Area #7 in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall he the same per- acre amount that is levied to pay the Highway 152 Special Tax Requirement in Improvement Area #5. 8. Improvement Area #8 The Maximum Special Tax in Improvement Area #8 is $2,046 per Acre until such time as a Supplemental Bond Issue takes placc for public improvements within Tmprovement Area #8. at which time the Maximum Special Tax shal1 increase to $7 ,861 per Acre. Notwith8t.nc1ing the foregoing. the actual Special Tax ~ within Improvement Area #8 in any Fiscal Year to pay the Highway 152 Special Tax Requirement shall be the same per- acre amount that is levied to pay the Highway 152 Special Tax Requirement in Improvement Area #5. " On July 1, 2003 and on each July 1 thereafter, allfigures shown in Sections C.! through C.8 above shall be increased by an amounl equal to 2.0"'{' of the amount in effectfor the prior Fiscal Year. 6 . . D. METHOD OF I,EVY AND cor.r .F.cTION OF THE !WEn-AI, TAX 1. Highway 152 Special Tax Requirement Commencing with Fiscal Year 2002-03 and for each following Fiscal Year, the Administrator sball determine the Highway 152 Special Tax Itequircment to be collected in that Fiscal Year. A Special Tax shall then be levied according to the following steps: Step 1. Step 2. Step 3. Using the Acreage reflected on Assessor's Parcel Maps, add together the following: (i) Acreage of Taxable Property within Improvement Areas #1, #2, #5, #6, #7 and #8, (ii) one-half of the Acreage within Improvement Area #3, and (ill) if a Development Trigger has occurred within Improvement Area #4. the Acreage within Improvement Area #4. , . Divide the Highway 152 Special Tax Requirement for tile Fiscal Year by the Acreage calculated in Step 1 to determine a per-Acre special Tax. For Assessor's Parcels in Tmprovemenc Areas #1. #2, #5, #6, #7 and #8, multiply the per-Acre Special Tax determined in Step 2 by the Acreage of each Parcel to determine the Special Tax to be levied on each Parcel to pay the Highway 152 Improvement Special Tax Requirement (an additional Special Tax may be levied on Parcels in Improvement Areas #1, #2, #6, #7 aodIor #8 pur:mant to Section D.2 below). For Parcels within Improvement Area #3, multiply the Acrea.ge of each Parcel by nn,,-half of the per-Acre Special Tax determined in Step 2 to determine the Special Tax to be levied on each Parcel (an additional Special Tax may be levied on Parcels in Improvemcnc Area #3 pursuant to Section D.2 below). If a Development Trigger has occurred within Improvement Area #4, multiply lht: per-Acre Special Tax determined in Step 2 by the Acreage of each Parcel to determine the Special Tax to be levied on ea.ch Parcel. 2. Supplemental Bonds Spedal Tax Requirement Commencing with Fiscal Year 2002-03 and for each.. following Fiscal Year, the Administrator sball determine tile SupplcmClllal Bonds Special Tax Requirement to be collected in that Fiscal Year within Improvemenc Areas #1, #2, #3, #6, #7 and/or #8 if Supplemental BoDdg have been iSRued for some or all of the Improvement Areas. Supplemental Bonds sold to fund improvements within an Improvement Area shall be secured solely by Special Taxes collected within that Improvement Area. No Special Tax shall be levied in any Impnnement Area to pay debt serPice on Supplemental Bonds sold to fund improvements in another Improvement Area. 7 . . Once the Administrator has determined the separate SupplelIlCntal Bonds Special Tax . Requirement for Improvement Areas #1, f/2, #3, #6, #7 and/or #8 (as applicable), a Special Tax shall then be levied, in addition to the Special Tax levied for Highway 152 improvements pursuant to Section D.l above, according to t1te following steps: Step 1. Step 2. Step 3. E. EXEMPTIONS Using the Acreage reflected on Assessor's Parcel Maps, determine the Acreage of Taxable Property within Improvement Areas on behalf of which Supplemental Bonds have been sold. If a Subsequent Sale has occurr.,d within Improvern<:nt Area #2, only the Acreage of the property which was sold by Tenth Street Enterprises shall be used for purposes of this Step 1. Separately for each Improvement Area for which Supplemental Bonds have been sold, divide the applicable Supplemental130nds Special Tax Requirement for the then current Fiscal Year by the respective Acreages as calculaU:ll in Step 1 to determine a separate per-Acre Special Tax for each Improvement Area on behalf of which Supplemental Bonds have been is>med. For each Assessor's Parcel within Improvement Areas for which Supplemental Booos have been sold, multiply the per-Acre Special Tax determined in Step 2 by the Acreage of each Parcel to delennine me Special Tax LO be levied on each Parcel to pay the Supplemental Bonds Special Tax Requirement. The Special Tax determined pursuant to this Step 3 shall be levied in addition to the Special Tax determined for these Parcels in Section D.l above. Notwithstanding any other provision of this Rate and Method of Apportionment of Special Ta'<., no Special Ta.x sball be levied on Parcels that have been conveyed to a Public Agency, except as otherwise provided in the Act. F. PREP4.YMENT OF SPECIAL TAX The following definitions apply to this Section F: "Rem"inine Facilities Costs" means the Public Facilities Requirements minus public facility costs funded by OutstJmding Bonds. developer equity and/or any other source of funding. Facility costs funded by Supplemental Bonds within Improvement Areas #1, #2, #3, #6, #7 or #8 sball be subtracted only from the Public Facilities Requirements for that Improvement Area for purpOllCS of determining llr.m1\;n;ng Facilities Costs. 8 . . "Outstanding Bonds" means all Previously Issued Bonds which remain outstanding, with the following exception: if a Special Tax has been levied against, or already paid by, an Assessor's Parcel making a prepayment, and a ponton uf the Special Tax will be used to pay a portion of the neltt principal payment on the Bonds that remain outstanding (as delerminc:d by the Administrator), that nelCt principal payment~shall be subtracted from the total Bond principal that remains outstanding, and the difference shall be used as the amount of "Outstanding Bonds" for purposes of this prepayment formula. "Previously Issued Bonds" means, for Improvement Areas #4 and #5, all Highway 152 Bonds that have been issued prior to the date of prepayment. For Improvemen1 Areas #1. #2, #3, #6, #7 and #8, Previously Issued Bonds means all Highway 152 Bonds and all Supplem=lal Bonds that have been issued on behalf of the Improvement Area prior to the date of prepayment. "Public Facilities Requirements" means, for Improvement Areas #4 and #5, either $5,500,000 in 2002 dollars, which shall increase by three percent (3%) on January I, 2003, and on each January 1 thereafter, or such lower number as shall be detennincd by the City as sufficient to fund improvements to Highway 152 that are authorized to be funded by eFD No. 2000-1. For Improvement Area #1, "Public Facilities Requirement" means either $16,000,000 in 2002 dollars, which shall increase by three percent (3%) on January 1. 2003, and on each January 1 thereafter, or such lower number as shall be determined by the City as sufficient to fund Highway 152 improvements and additional improvements within Improvement Area #1 that are authorized to be funded by CFD No. 2000-1. For Improvement Area #2, "Public pacilities ReqWrt:mem" means either $10,000,000 in 2002 dollars, which shall increase by three percent (3%) on January I, 2003, and on each January 1 thereafter, or such lower number as shall be detennined by the City as sufficient to fund Highway 152 improvements and additional improvements within Improvement Area #2 that are authorized to be funded by CFD No. 2000-1. For Improvement Area #3, "Public Facilities Requirement~ means either $11 ,500,000 in 2002 dollars, which sball increase by three pe=m (3%) un January 1.2003, and on caeh January 1 thereafter, or such lower number as shall be determined by the City as sufficiem to fund Highway 152 improvements and additional improvements within Improvement AIea #3 that are authorized to be funded by CFD No. 2000-1. For Improvement Area #6, "Public Facilities Requirement" means either $7,325,000 in 2002 dollars, which shall increase by three percent (3%) on January I, 2003, and on each January 1 thereafter, or such lower number as shall be determiDed by the City as sufficient to fund Highway 152 improvements and ad<1itiona1 improvemems witllin Improvement Area #6 that are authorized to be funded by CFD No. 2000-1. For Improvement Area #7, "Public Facilities Requirement" means either $7 ,500,000 in 2002 dollars, which shall increase by three percent (3 %) on January 1, 2003, and on each January 1 thereafter, or such lower number as shall be determined by the City as sufficient to fund Highway 152 improvements and additional improvements within Improvement 9 . . Area #7 that are authorized to be funded by CFD No. 2000-1. For Improvement Area #8, "Public Facilities RequirementB means either $7,000,000 in 2002 dollars, which shall increase by three percent (3%) on January 1,2003, and on each January 1 thereafter, or such lower number as shall be detennined by the City as sufficient to fund Highway 152 impl'Ovemcnts and additional iInprovements within Improvement Area #8 that are authorized to be funded by CPD No. 2000-1. The Special Tax obligation applicable to an Assessor's ParccI in CFD No. 2000-1 may be prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described lu:rein, provided that a prepayment may be made only if l11cre arc no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an A.ll~cssor's Parcel intending to prepay the Special Tax obligation shall provide the City with written notice of intent to prepay. Within 30 days of receipt oLsuch written notice, the City or its designee shall notify such owner of the prepayment amount for such Assessor's Parcel. Prepayment must be made not less than 75 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows: (capitalized terms as defined below): Bond Redemption Amount plUS Remaining Facilities Amount plus Redemption Premium plus Defeasance plus Administrative Fees and Expenses m Reserve Flinn Credit equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps: Step 1. Compute the total Maximum Special Tax that could be collected from the Assessor's Parcel prepaying the Special Tax in the Fiscal Year in which prepayment would be received by the City. Stell 2. For Improvement Areas #4 and #5, divide the Maximum Special Tax computed pursuant to Step 1 for such Assessor's Parcel by the Maximum Special Taxes that can be collected within the entire CFD in the Fiscal Year in which prepayment would be received by the Cil)' using only that portion of the Maximum Special Tax within all other Improvement Areas that is committed to the Highway 152 Bonds (as determined by the Administrator). For Improvement Areas #1, #2, #3, #6, #7 and #8, the denominator for purposes of this Step 2 shall be the sum of the following: (i) the Maximum Special Tax revenues that can be collected within Improvement Areas #4 and #5 in the Fiscal Year in which prepayment 10 Step 3. Step 4_ Step 5. Step 6. Step 7. Step 8. Step 9. Step 10. Step 11. . . would be received, (ii) the Maximum Special Tax that could be collected in all other hnprovement Areas by applying the portion of the Maximum Special Tax that is reserved for the Highway 152 Bonds, and (ill) the Maximum Special Tax revenues that can be collected within the ImprovCtnent Area within which the Parcel prepaying the Special Tax is located in the Fiscal Year in which the prepayment would be received by the City by applying the full Maximum Special Tax to all Parcels within the Improvement Area. Multiply the quotient computed pursuant to Step 2 by the Outst"ntiing Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption .4mount"). Compute the current Remaining Facilities Costs (if any). Multiply the quotient computed pursuant to Step 2 by the amount determined pursuant to Step 4 to compute the lIIIlOUllt of Remaining Facilities Costs to be prepaid (the "Rerruzining Facilities Amount"). Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). Compute the amount needed to pay interest on Ihc Bond Redemption Amount from the last date on which interest was paid on the Outstanding Bonds until the earliest redemption date for the Outstanding Ronds. Compute the minimum amount the Administrator reasonably expects to derive from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the redemption date for the Outstanding Bonds that the Administrator expects to be redeemed with Ihc prepayment. Take the amount computed pursuant to Step 7 and subtract the amount computed pursuant to Step 8 (the "Defeasance"). The administrative fees and expenses of CFD No. 2000-1 are as calculated by the Administrator and include the costs of computation of the prepayment, the costs of redeeming BonU:., and the costs ofrccording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses "). If and to the extent so provided in the Indenture pursuant to which the Outstanding Bonds to be redeemed were issued, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding 11 . . Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). Step 12. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 5, 6, 9, and 10, less the atp.ount compl.lled pursuant to Step 11 (the "Prepayment Amount "). A partial prepayment may be made in an amount equal to any percentage of full prepayment desired by the party m~1cing a partial prepayment. The Maximum Special Tax that can be levied on a Parcel after a partial prepay=nt is madc is equal to thc Maximum Special Tax that could have been ievied prior to the prepayment, reduced by the percentage of the full prepayment that the partial prepayment represents, all a.~ determined by or at the direction of the Administrator. G. ANNEXATION CATCH-UP TAX If additional property proposes annexation into CFD No. 2000-1 in any future Fiscal Year, such property shall be subject to an "Annexation Catch-up Tax" that shall become due and payable after a successful election has taken place pursuant to Section 53339.7 of the Act. Notwithstanding the foregoing, the Annexation Catch-up Tax that is levied against the property that W~, al the timc of formation of CFD No. 2000-1: (i) owned by the Obata family, (ii) within unincorporated Santa Clara Cuunty, IDll! (iii) identified by Assessor's Parcel numbers &41-17-073 and &41-17-074 shall include only the "Missed Special Tax Payments" calculated pursuant to (1) below and llil1 the "Interest Carry" calculated pursuant to (2) below. Proceeds from collection of an Annexation Catch-up Tax shall be used to call Highway 152 Bonds and reduce the Special Tax being levied to pay debt service on Highway 152 Bonds. The Annexation Catch-up Tax shall be equal to the sum of the following: (1) Missed Special Tax Pavments - the total Special Tax amount that would have been levied on the prope'rty proposing annexation had the properly been included in CFD No. 2000-1 at the time the CFD was formed, as determined by the Administrator. Only Special Tax payments that would have been made through the first ten years after the CFD was formed or up to the time of annexation, whichever is less, shall be included. Such amount shall be det.ermim:u by evaluating tho amount that would hllVC been levied in each prior Fiscal Year on property in Improvement Area #5. (2) TnterestCarry -the annual amounts calculated in (1) above shall be increased each year at a 10% interest rate from the first Fiscal Year in which Special Taxes were levied on behalf of CFD No. 2000-1 through and including the Fiscal Year in which the Annexation Catch-up Tax is being calculated (unless the annexing Parcel is to be included on the tax roll for the Fiscal Year in which the Annexation Catch-up Tax is being calculated) or up to a maximum often years. whichever is less. 12 . . . In addition to the Annexation Ca1ch-up TlIJC, any party requesting annexation into CFD No. 2000-1 shall pay all costs associated with the annexation process, including the cost of City staff time, consultant fees, recording costs, lIDd any other costS deemed appropriate by the City. H. INTERPRRTATION OF SPECIAL TAX FORMULA The City reserves the right to make minor administrative and techni<:al changcs to this document tha.t do not materially affect the rate and method of apportioning Special Taxes. In addition. the interpretation and application of any section of this document shall be left to the City's discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. S:\FlLBS\WPWIN\OI!.ROY\l\MAJ,IOO 13 . ~. "tI :0 ~~ s:> mo z:r: -;s: >m :oz ~-; en> s: > "tI n o s: s: c z ~ " ~>n :r:n- Gi;==<! :r:~o :Em" >enG) -<0;= --:0 (Jteno N-; ~:o-< n -; Z' 9 N o o o . ~ I :!I!~I ljli ~ I'S - ". :l n . . 0 I fl /1 /./ ~ ~ '-. ~~UCJlESSl, I I vmu 9~ \ \ ~ I ...."......,........~ CD "'l Clll 01 .. CoO tlO .... "a ~~I~~lm ! . . . . I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No, 2000-74 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 17th day of November, 2000, at which meeting a quorum was present, IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 5th day ofJanuary, 2001. L- CityC (Seal)