Resolution 2011-15
RESOLUTION NO. 2011-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
OF FORMATION OF 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, State of California, that:
WHEREAS, this Council adopted a resolution entitled "A Resolution of the City Council of the
City of Gilroy of Intention to Establish Community Facilities District" (the "Resolution of Intention"),
stating its intention to form "City of Gilroy Community Facilities District No. 2011-1 (Deer Park
Landscape Maintenance)" (the "CFD") pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5,
commencing with Section 53311, ofthe California Government Code (the "Act");
WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the
CFD and stating the services to be provided and the rate and method of apportionment of the special tax
to be levied within the CFD to pay for the services, is on file with the City Clerk and the provisions
thereof are incorporated herein by this reference as if fully set forth herein;
WHEREAS, on this date, this Council held a noticed public hearing as required by the Act and
the Resolution of Intention relative to the proposed formation of the CFD;
WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to
the formation of the CFD, the services to be provided therein and the levy of such special tax were heard
and a full and fair hearing was held;
WHEREAS, at the hearing evidence was presented to this Council on such matters before it,
including a special report (the "Report") as to the services to be provided through the CFD and the costs
thereof, a copy of which is on file with the City Clerk, and this Council at the conclusion of said hearing
is fully advised in the premises;
WHEREAS, written protests with respect to the formation of the CFD, the furnishing of
specified types of services and the rate and method of apportionment of the special taxes have not been
filed with the City Clerk by 50% or more of the registered voters residing within the territory of the CFD
or property owners of one-half or more of the area of land within the CFD and not exempt from the
proposed special taxes.
NOW, THEREFORE, IT IS HEREBY ORDERED as follows:
1. Recitals Correct. The foregoing recitals are true and correct.
2. No Majority Protest. The proposed special tax to be levied within the CFD has not been
precluded by majority protest pursuant to section 53324 ofthe Act.
RESOLUTION NO. 2011-15
3. Prior Proceedings Valid. All prior proceedings taken by this City Council in connection
with the establishment of the CFD and the levy of the special tax have been duly considered and are
hereby found and determined to be valid and in conformity with the Act.
4. Name of CFD. The community facilities district designated "City of Gilroy Community
Facilities District No. 2011-1 (Deer Park Landscape Maintenance)" of the City is hereby established
pursuant to the Act.
5. Boundaries of CFD. The boundaries of the CFD, as set forth in the map of the CFD
heretofore recorded in the Santa Clara County Recorder's Office on February 17, 2011, at 11:32 a.m., in
Book 46 of Maps of Assessment and Community Facilities Districts at Page 33, are hereby approved, are
incorporated herein by reference and shall be the boundaries of the CFD.
6. Description of Services. The type of public services proposed to be financed by the
CFD and pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference
incorporated herein (the "Services").
7. Special Tax.
a. 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 the recordation of a
continuing lien against all non-exempt real property in the CFD, is intended to be levied annually within
the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner
as may be prescribed by this Council.
b. 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 shown in Exhibit B attached hereto and
hereby incorporated herein.
8. Increased Demands. It is hereby found and determined that the Services are necessary
to meet increased demands placed upon local agencies, including the City, as the result of development
occurring in 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 of the date
hereof.
9. Responsible Official. The City Administrator of the City of Gilroy, City Hall, 7351
Rosanna Street, Gilroy, CA 95020, telephone number (408) 846-0400, is the officer of the City who will
be responsible for preparing annually a current roll of the levy of the Special Tax obligations by
assessor's parcel number and who will be responsible for estimating future levies ofthe Special Tax.
10. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of
the California Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall
attach to all nonexempt real property in the CFD and this lien shall continue in force and effect until the
Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law
or until collection of the Special Tax by the City ceases.
11. Appropriations Limit. In accordance with the Act, the annual appropriations limit, as
defmed by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the CFD is
hereby preliminarily established at $25,000 and such appropriations limit shall be submitted to the voters
of the CFD as hereafter provided. The proposition establishing such annual appropriations limit shall
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become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance
with the applicable provisions of the Act and the Constitution.
12. Election. Pursuant to the provisions of the Act, the proposition of the levy of the Special
Tax and the proposition of the establishment of the appropriations limit specified above shall be
submitted to the qualified electors of the CFD at an election the time, place and conditions of which
election shall be as specified by a separate resolution of this Council.
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 28th day of March,
2011, by the following vote:
AYES:
COUNCILMEMBERS: ARELLANO, DILLON, LEROE-MUNOZ, TUCKER,
WOODWARD and PINHEIRO
NOES:
COUNCILMEMBERS: BRACCO
ABSENT:
COUNCILMEMBERS: NONE
APPROVED:
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e inheiro, Mayor
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EXHIBIT A
CITY OF GILROY
Community Facilities District 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 Trimming
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 Pruning
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. Irrigation 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 Electricity
All costs and expenses for water and electricity used to irrigate and light the landscaping.
Exhibit A
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-
I, 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 ofthe 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 of CFD 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 ofthe 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: 0) 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. DATAFORANNUALTAXLEVY
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, ifit 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 of Gilroy CFD No. 2011-1
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January 19, 2011
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. 2011-15 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 28th day of March, 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 29th day of March, 2011.
(Seal)