Resolution 2011-09
RESOLUTION NO. 2011-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY OF INTENTION TO ESTABLISH A COMMUNITY
FACILITIES DISTRICT
CITY OF GILROY
COMMUNITY FACILITIES DISTRICT NO. 2011-1
(DEER PARK LANDSCAPE MAINTENANCE)
RESOLVED, by the City Council (the "Council") of the City of Gilroy (the "City"), County of
Santa Clara (the "County"), and State of California that:
WHEREAS, under the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of
Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the "Act"), this
Council is authorized to establish a community facilities district and to act as its legislative body; 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 such community facilities district to fmance costs of public safety services
required to meet the demands of development of lands 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. 2011-1 (Deer Park Landscape Maintenance)" (the "CFD").
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 preliminarily 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 County Recorder within 15 days of
the date of adoption of this Resolution.
RESOLUTION NO. 2011-09
4. Services. The type of services proposed to be financed by the CFD and pursuant to the
Act shall consist of those listed in Exhibit A hereto and hereby incorporated herein (the "Services"). The
Council hereby determines that the Services are necessary to meet increased demands for such services
placed upon local agencies as the result of development occurring within the area of the CFD. The
Services are in addition to those provided in the territory of the CFD as of the date hereof and will not
supplant services already available within the territory of the CFD as ofthe date hereof.
5. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay
for the Services, 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 (the "Rate and Method"). 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, all lands owned by any public entity, including
the United States, the State of California, the County 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 Services 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 annual expenses of the CFD, if any, subject to the provisions of
the rate and method of apportionment of the Special Tax.
7. Election and Unanimous Approval. The levy of the Special Tax in the CFD 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.
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8. CFD Report. The City Administrator (or deputy or designee thereof) is hereby directed
to study the proposed Services and to make, or cause to be made, and file with the City Clerk a report in
writing (the "CFD Report"), which shall be a part ofthe record of the public hearing hereinafter specified
and which report shall present the following:
(a)
of the CFD.
A description of the Services that will be required to adequately meet the needs
(b) An estimate of the fair and reasonable cost of the Services and incidental
expenses in connection therewith, and all other related costs.
9. Public Hearing. Will be held on Monday, March 28, 2011, at 6:00 p.m. or as soon as
possible thereafter, in the City Hall, Council Chambers, 7351 Rosanna Street, Gilroy, California, and the
same are hereby appointed and fixed as the 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.
10. Notice of Hearing. The City Clerk 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 7 days before the date ofthe public hearing specified above.
The City Clerk may 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 address as it appears on the most
recent tax records of the County or as otherwise known to the City Clerk to be correct. Such mailing shall
be completed not less than 15 days before the date ofthe public hearing.
The notice of the public hearing shall be substantially in the form specified in Section 53322 of
the Act, with the form summarizing the provisions hereof hereby specifically approved.
11. Deposit Agreement. The Deposit and Reimbursement Agreement (the "Deposit
Agreement"), in the form on file with the City Clerk, is hereby approved. The City Administrator is
hereby authorized and directed to accept the Initial Advance described in the Deposit Agreement and to
request subsequent Advances as necessary to pay Initial Costs, as such terms are defined in the Deposit
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Agreement, and to use the Advances in the manner contemplated by the Deposit Agreement. The City
Administrator is hereby authorized and directed to execute the Deposit Agreement for and on behalf of
the City, and to take all actions necessary to implement the Deposit Agreement.
12. Appointment of Legal Counsel; Financial Advisor; Special Tax Consultant. The
City Council hereby appoints (i) Jones Hall, A Professional Law Corporation, as legal counsel to the City
in connection with formation ofthe CFD, (ii) Northcross Hill & Ach, Inc., as financial advisor to the City
in connection with formation of the CFD and (iii) Goodwin Consulting Group, Inc., as special tax
consultant to the City in connection with formation of the CFD. The City Administrator is hereby
authorized to execute a legal services agreement with each of these firms in substantially the form and
substance of the agreement on file with the City Clerk.
13. Effective Date. This resolution shall take effect upon its adoption.
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***********
PASSED AND ADOPTED by the City Council of the City of Gilroy this 7th day of
February, 2011, by the following vote:
AYES: COUNCILMEMBERS:
ARELLANO, DILLON, LEROE-
MUNOZ, TUCKER, WOODWARD
and PINHEIRO
NOES: COUNCILMEMBERS:
BRACCO
ABSENT: COUNCILMEMBERS:
NONE
APPROVED:
~~
bertPinheiro,Mayor
-
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EXHIBIT A
CITY OF GILROY
Community Facilities CFD No. 2011-1
(Deer Park Landscape Maintenance)
DESCRIPTION OF SERVICES
The captioned Community Facilities District will finance, in whole or in part, the following
services ("services" shall have the meaning given that term in the Mello-Roos Community
Facilities Act of 1982), including all related administrative costs, expenses and related reserves
for replacement of vehicles, equipment and facilities, relating to Parcel B of Tract 9966,
constituting 32,927 square feet fronting Santa Theresa Blvd. between Sunrise Drive and the
right-of-way in favor of the Santa Clara Valley Water District:
1. Turf and Plant Maintenance
Sufficient water, fertilizer, and other nutrients shall be provided, and sufficient insect and
disease control shall be applied, to turf and other plants to maintain them in a healthy and
thriving condition.
2. Turf and Plant Trimmina
Plants shall be trimmed by removing dead wood from trees and shrubs, trimming back
foliage which has exceeded the landscape boundaries and shaping plants as necessary,
and keeping turf mowed to a height of between one and a half to two inches and
trimmed back from edges of hardscape.
3. Tree and Shrub Prunina
Trees and shrubs shall be pruned and trimmed, as necessary, in such a manner as to
prevent interference with sight clearance for pedestrian, bicycle, and vehicle traffic on
adjacent roadways, walkways, and rights of way.
4. Irriaation System
The irrigation system serving the landscaping shall be maintained, repaired, and replaced
as needed, and all legally required permits with respect to such work shall be obtained.
5. Weeds. Trash. and Debris
All weeds, trash, and debris shall be removed regularly from the landscaped area.
6. Plant Replacement
All plants which have died back or have become unsightly shall be replaced on no less than
a monthly basis.
7. Water and Electricitv
All costs and expenses for water and electricity used to irrigate and light the landscaping.
Exhibit A
Page 1
EXHIBIT B
CITY OF GILROY
Community Facilities CFD No. 2011-1
(Deer Park Landscape Maintenance)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
Exhibit B
Page 1
EXHmIT B
CITY OF GILROY
COMMUNITY FACILITIES DISTRICT No. 2011-1
(DEER PARK LANDSCAPE MAINTENANCE)
RATE AND METHOD OF ApPORTIONMENT OF SPECIAL TAX
Special Taxes applicable to each Assessor's Parcel in the City of Gilroy Community Facilities
District No. 2011-1 (Deer Park Landscape Maintenance) shall be levied and collected according
to the tax liability determined by the Administrator through the application of the appropriate
amount or rate for Taxable Property, as described below. All of the property in CFD No. 2011-
1, unless exempted by law or by the provisions of Section E below, shall be taxed for the
purposes, to the extent, and in the manner herein provided, including property subsequently
annexed to the CFD, unless a separate Rate and Method of Apportionment of Special Tax is
adopted for the annexation area.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Accessory Unit" means a second residential unit of limited size (e.g., granny cottage, second
unit) that shares a Parcel with a single-family detached unit.
"Acre" or "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 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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly
related to the administration of CFD No. 2011-1: the costs of computing the Special Tax and
preparing the annual Special Tax collection schedules (whether by the City or any designee
thereof or both); the costs of collecting the Special Taxes; the costs to the City, CFD No. 2011-1,
or any designee thereof of complying with City, CFD No. 2011-1, or obligated persons
disclosure requirements associated with the Act; the costs associated with preparing Special Tax
disclosure statements and responding to public inquiries, protests, or appeals regarding the
Special Taxes; and the City's annual administration fees and third party expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD
No. 2011-1 for any other administrative purposes ofCFD No. 2011-1, including attorney's fees
City of Gilroy CFD No. 2011-1
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January 19, 2011
and other costs related to commencing and pursuing to completion any foreclosure of delinquent
Special Taxes.
"Administrator" means an official of the City, or any designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Tax.
"Assessor's Parcel" or "Parcel" means a lot or parcel shown on an Assessor's Parcel Map with
an assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the County Assessor designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" or "APN" means a unique number assigned to an Assessor's
Parcel by the County Assessor for purposes of identifying a property.
"Authorized Services" means the public services authorized to be funded by the CFD as set
forth in the documents adopted by the Council when the CFD was formed.
"CFD" or "CFD No. 2011-1" means the City of Gilroy Community Facilities District No. 2011-
1 (Deer Park Landscape Maintenance).
"City" means the City of Gilroy.
"Council" means the City Council of the City of Gilroy, acting as the legislative body of
CFD No. 2011-1.
"County" means the County of Santa Clara.
"Developed Property" means, in any Fiscal Year, all Parcels of Taxable Property for which a
final building permit inspection was conducted or a certificate of occupancy was issued by the
City on or prior to June 30 of the preceding Fiscal Year. In the absence of a final building permit
inspection or certificate of occupancy, any Parcel of Taxable Property shall be classified as
Developed Property if it has been purchased and occupied by a homeowner on or prior to June
30 of the preceding fiscal year.
"Final Map" means a final map approved by the City pursuant to the Subdivision Map Act
(California Government Code Section 66410, et seq.) that creates individual lots on which a
building permit can be issued for construction of residential units without further subdivision of
the lots.
"Fiscal Year" means the period starting on July 1 and ending on the following June 30.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with
Section C, that can be levied in any Fiscal Year.
City of Gilroy CFD No. 2011-1
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January 19, 2011
"Proportionately" means, for Developed Property, that the ratio of the actual annual Special
Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal
Year is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property,
"Proportionately" means that the ratio of the actual annual Special Tax levied in any Fiscal Year
to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all
Assessor's Parcels of Undeveloped Property.
"Public Property" means, for each Fiscal Year: (i) any property within the boundaries of the
CFD that is owned by or irrevocably offered for dedication to the federal government, the State
of California, the City or any other public agency; provided, however, that any property leased
by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act
(as such section may be amended or replaced) shall be taxed and classified in accordance with its
use; or (ii) any property within the boundaries of the CFD that is encumbered by an unmanned
utility easement making impractical its utilization for other than the purpose set forth in the
easement.
"Residential Unit" means an individual single-family detached unit, an individual residential
unit within a duplex, halfplex, triplex, fourplex, townhome, live/work or condominium structure,
or an individual apartment unit. An Accessory Unit that shares a Parcel with a single-family
detached unit shall not be considered a separate Residential Unit for purposes of this RMA.
"RMA" means this Rate and Method of Apportionment of Special Tax.
"Special Tax" means any tax levied within the CFD to pay the Special Tax Requirement.
"Special Tax Requirement" means the amount of revenue needed in any Fiscal Year to pay for
the following: (i) Authorized Services; (ii) Administrative Expenses; and (iii) amounts needed to
cure any delinquencies in the payment of Special Taxes which have occurred or, based on
delinquency rates in prior years, may be expected to occur in the Fiscal Year in which the
Special Tax will be collected.
"Taxable Property" means all Assessor's Parcels within the boundaries ofCFD No. 2011-1 that
are not exempt from the Special Tax pursuant to law or Section E below.
"Undeveloped Property" means, in any Fiscal Year, all Parcels of Taxable Property in CFD
No. 2011-1 that are not Developed Property.
B. DATA FOR ANNUAL TAX LEVY
Each Fiscal Year, the Administrator shall identify the current Assessor's Parcel Numbers for all
Parcels of Taxable Property within the CFD. The Administrator shall also determine: (i) whether
each Assessor's Parcel of Taxable Property is Developed Property or Undeveloped Property; and
(ii) the Special Tax Requirement for the then current Fiscal Year.
City of Gilroy CFD No. 2011-1
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January 19, 2011
In any Fiscal Year, if it is determined that (i) a Final Map or parcel map for a portion of property
in CFD No. 2011-1 was recorded after the last date upon which the Assessor will incorporate the
newly-created Parcels into the then current tax roll, (ii) because of the date the Final Map or
parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the
Final Map or parcel map, and (iii) one or more of the newly-created Parcels meets the definition
of Developed Property, the Administrator shall calculate the Special Tax for the property
affected by recordation of the Final Map or parcel map by determining the Special Tax that
applies separately to each newly-created Parcel, then applying the sum of the individual Special
Taxes to the Parcel that was subdivided by recordation ofthe Final Map or parcel map.
C. MAXIMUM SPECIAL TAXES
1. Developed Property
The Maximum Special Tax for Fiscal Year 2011-12 for all Parcels of Developed
Property within CFD No. 2011-1 shall be $121 per Residential Unit.
2. Undeveloped Property
The Maximum Special Tax for Fiscal Year 2011-12 for all Parcels of
Undeveloped Property within CFD No. 2011-1 shall be $676 per Acre.
3. Escalation of Maximum Special Tax
On July 1, 2012, and each July 1 thereafter, the Maximum Special Tax for
Developed Property and Undeveloped Property shall be increased by an amount
equal to 4.0% of the Maximum Special Tax in effect in the prior Fiscal Year.
D. METHOD OF LEVY AND COLLECTION OF SPECIAL TAXES
Each Fiscal Year, the Administrator shall determine the Special Tax Requirement for that Fiscal
Year and levy the Special Tax on all Parcels of Taxable Property as follows:
Step 1:
The Special Tax shall be levied Proportionately on each Parcel of
Developed Property up to 100% of the Maximum Special Tax for each
Parcel for such Fiscal Year until the amount levied is equal to the Special
Tax Requirement plus a reasonable reserve as determined by the
Administrator;
Step 2:
Beginning in Fiscal Year 2013-14 and each following Fiscal Year, if
additional revenue is needed after Step 1, the Special Tax shall be levied
Proportionately on each Parcel of Undeveloped Property up to 100% of
the Maximum Special Tax for each Parcel for such Fiscal Year until the
amount levied, when combined with the amount levied pursuant to Step 1,
City ofGUroy CFD No. 1011-1
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January 19, 1011
is equal to the Special Tax Requirement plus a reasonable reserve as
determined by the Administrator.
The Special Tax for the CFD shall be collected at the same time and in the same manner as
ordinary ad valorem property taxes provided, however, that the City may (under the authority of
Government Code Section 53340) collect Special Taxes at a different time or in a different
manner if necessary to meet the financial obligations of the CFD, and the Special Tax shall be
equally subject to foreclosure if delinquent.
E. EXEMPTIONS
Notwithstanding any other provision of this RMA, no Special Tax shall be levied on Parcels of
Public Property, except as otherwise provided in the Act.
F. INTERPRETATION OF SPECIAL TAX FORMULA
The City reserves the right to make minor administrative and technical changes to this document
that 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 resolution of the Council for purposes of
clarifying any vagueness or ambiguity in this RMA.
G. TERM OF THE SPECIAL TAX
The Special Tax shall be levied in perpetuity as necessary to pay the Special Tax Requirement.
H. REPEAL OF THE SPECIAL TAX
If the levy of the Special Tax is repealed by initiative or any other action participated in by the
owners of Parcels in the CFD, the City shall cease to levy the Special Tax and shall cease to be
obligated to provide the Authorized Services for which the Special Tax was levied. The
obligations to provide the Authorized Services previously funded by the repealed Special Tax
shall become the obligations of any property owners association established within the CFD, and
if there is no such association, they shall become the joint obligations of the property owners of
Parcels within the CFD in proportion to the number of Parcels owned by each such owner to the
total number of Parcels within the CFD.
City of Gilroy CFD No. 2011-1
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January 19,2011
I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2011-09 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 7th day of February, 2011, 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 8th day of February, 2011.
(Seal)