Resolution 2012-12RESOLUTION NO. 2012-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
OF FORMATION OF COMMUNITY FACILITIES DISTRICT
CITY OF GILROY
COMMUNITY FACILITIES DISTRICT NO. 2012-1
(Landscape Maintenance)
BE IT 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 (i) "City of Gilroy Community Facilities
District No. 2012 -1 (Landscape Maintenance)" (the "CFD ") and (ii) "City of Gilroy Community
Facilities District No. 2012 -1 (Landscape Maintenance) (Future Annexation Area)" (the "Future
Annexation Area ") pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with
Section 53311, of the California Government Code (the "Act ");
WHEREAS, the Resolution of Intention, incorporating a map of the proposed
boundaries of the CFD and the Future Annexation Area 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 and the Future
Annexation Area;
WHEREAS, at the hearing all interested persons desiring to be heard on all matters
pertaining to the formation of the CFD and the Future Annexation Area, the services to be
provided therein and the levy of such special tax were heard and a full and fair hearing was held;
RESOLUTION NO. 2012-12
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;
WHEREAS, written protests have not been filed with the City Clerk against the
proposed annexation of the Future Annexation Area to the CFD by (i) 50% of more of the
registered voters, or six registered voters, whichever is more, residing in the proposed boundaries
of the CFD, or (ii) 50% or more of the registered voters, or six registered voters, whichever is
more, residing in the Future Annexation Area, (iii) owners of one -half or more of the area of land
in the proposed CFD or (iv) owners of one -half or more of the area of land in the Future
Annexation Area.
NOW, THEREFORE, IT IS HEREBY ORDERED as follows:
1. Recitals Correct. The foregoing recitals are true and correct.
2. No Majority Protest. The proposed CFD, the proposed Future Annexation Area
and the proposed special tax to be levied within the CFD have not been precluded by majority
protest pursuant to section 53324 of the Act.
3. Prior Proceedings Valid. All prior proceedings taken by this City Council in
connection with the establishment of the CFD and the Future Annexation Area and the levy of
RESOLUTION NO. 2012-12
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 the CFD and the Future Annexation Area. The community facilities
district designated "City of Gilroy Community Facilities District No. 2012 -1 (Landscape
Maintenance)" of the City is hereby established pursuant to the Act. The future annexation area
designated "City of Gilroy Community Facilities District No. 2012 -1 (Landscape Maintenance)
(Future Annexation Area)" is hereby established pursuant to the Act.
5. Boundaries of CFD. The boundaries of the CFD and the Future Annexation
Area, as set forth in the map of the CFD heretofore recorded in the Santa Clara County
Recorder's Office on February 21, 2012, at 2:16 p.m., in Book 47 of Maps of Assessment and
Community Facilities Districts at Pages 29 -30, are hereby approved, are incorporated herein by
reference and shall be the boundaries of the CFD and the Future Annexation Area.
Parcels within the Future Annexation Area shall be annexed to the CFD only with the
unanimous approval (each, a "Unanimous Approval ") of the owner or owners of each parcel or
parcels at the time that parcel or those parcels are annexed, without any requirement for further
public hearings or additional proceedings.
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 "). The City intends to provide the Services on
an equal basis in the original territory of the CFD and, when it has been annexed to the CFD, the
Future Annexation Area.
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
RESOLUTION NO. 2012-12
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.
C. Territory in the Future Annexation Area will be annexed into the CFD and a
special tax will be levied on such territory only with the Unanimous Approval of the owner or
owners of each parcel or parcels at the time that parcel or those parcels are annexed into the
CFD. Except to the extent that funds are otherwise available to the CFD to pay for the Services, a
special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien
against all non - exempt real property in the Future Annexation Area, is intended to be levied
annually within the Future Annexation Area, and collected in the same manner as ordinary ad
valorem property taxes or in such other manner as may be prescribed by this City Council. As
required by Section 53339.3(d) of the Act, the Council hereby determines that the special tax
proposed to pay for Services to be supplied within the Future Annexation Area shall be equal to
any special tax levied to pay for the same Services in the existing CFD, except that a higher or
lower tax may be levied within the Future Annexation Area to the extent that the actual cost of
providing the Services in the Future Annexation Area is higher or lower than the cost of
providing those Services in the existing CFD. In so finding, the Council does not intend to limit
its ability to levy a special tax within the Future Annexation Area to provide new or additional
services beyond those supplied within the existing CFD.
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 and the Future Annexation Area. The Services are in
addition to those provided in the territory of the CFD and the Future Annexation Area as of the
date hereof and will not supplant services already available within the territory of the CFD and
the Future Annexation Area as of the date hereof.
RESOLUTION NO. 2012-12
9. Responsible Official. The Director of Finance of the City of Gilroy, City Hall,
7351 Rosanna Street, Gilroy, CA 95020, telephone number (408) 846 -0420, 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
of the 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 defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution,
of the CFD is hereby preliminarily established at $500,000 and such appropriations limit shall be
submitted to the voters of the CFD as hereafter provided. The proposition establishing such
annual appropriations limit shall 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.
RESOLUTION NO. 2012-12
PASSED AND ADOPTED by the City Council of the City of Gilroy this 19'' day of
March, 2012, by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, BRACCO, DILLON,
LEORE- MUNOZ, TUCKER, WOODWARD and PINHEIRO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
Albert Pinheiro, Mayor
RESOLUTION NO. 2012-12
EXHIBIT A
CITY OF GILROY
Community Facilities District No. 2012 -1
(Landscape Maintenance)
DESCRIPTION OF SERVICES
The captioned Community Facilities District will finance, in whole or in part, the
following landscape maintenance services ( "services" shall have the meaning given that term in
the Mello -Roos Community Facilities Act of 1982), including but not limited to:
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
Including all related administrative costs, expenses and related reserves for replacement of
vehicles, equipment and facilities.
RESOLUTION NO. 2012-12
EXHIBIT B
CITY OF GILROY
COMMUNITY FACILITIES DISTRICT N0.2012 -1
(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. 2012 -1 (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. 2012 -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. 2012 -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. 2012 -1,
or any designee thereof of complying with City, CFD No. 2012 -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. 2012 -1 for any other administrative purposes of CFD No. 2012 -1, including attorney's fees,
City of Gilroy CFD No. 2012 -1 1 January 9, 2012
costs associated with annexations to the CFD, 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. 2012 -1" means the City of Gilroy Community Facilities District No. 2012-
1 (Landscape Maintenance).
"CFD Formation" means the date on which the Resolution of Formation to form CFD No.
2012 -1 was adopted by the City Council.
"City" means the City of Gilroy.
"Council" means the City Council of the City of Gilroy, acting as the legislative body of
CFD No. 2012 -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 occupied by a residential or non - residential user 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.
City of Gilroy CFD No. 2012 -1 2 January 9, 2012
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with
Section C, that can be levied in any Fiscal Year.
"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 of CFD No. 2012 -1 that
are not exempt from the Special Tax pursuant to law or Section E below.
"Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be
levied pursuant to this RMA. All of the property within CFD No. 2012 -1 at the time of CFD
Formation is within Tax Zone 1. Additional Tax Zones may be created when property is
annexed to the CFD, and a separate Maximum Special Tax shall be identified for property within
the new Tax Zone at the time of such annexation. The Assessor's Parcels included within a new
Tax Zone established when such Parcels are annexed to the CFD shall be identified by
Assessor's Parcel Number in the Unanimous Approval Form that is signed by the owner(s) of the
Parcels at the time of annexation.
City of Gilroy CFD No. 2012 -1 3 January 9, 2012
"Unanimous Approval Form" means that form executed by the record owner of fee title to a
Parcel or Parcels annexed into the CFD that constitutes the property owner's approval and
unanimous vote in favor of annexing into the CFD and the levy of the Special Tax against his/her
Parcel or Parcels pursuant to this RMA.
"Undeveloped Property" means, in any Fiscal Year, all Parcels of Taxable Property in CFD
No. 2012 -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; (ii)
which Tax Zone each Assessor's Parcel is located in; and (iii) the Special Tax Requirement for
the then- current Fiscal Year.
In any Fiscal Year, if it is determined that (i) a Final Map or parcel map for a portion of property
in CFD No. 2012 -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 of the Final Map or parcel map.
C. MAXIMUM SPECIAL TAXES
1. Developed Property
The Maximum Special Tax for Fiscal Year 2012 -13 for all Parcels of Developed
Property within Tax Zone 1 shall be $91 per Residential Unit.
2. Undeveloped Property
The Maximum Special Tax for Fiscal Year 2012 -13 for all Parcels of
Undeveloped Property within Tax Zone 1 shall be $630 per Acre.
3. Escalation of Maximum Special Tax
On July 1, 2013, 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.
City of Gilroy CFD No. 2012 -1 4 January 9, 2012
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: 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,
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.
City of Gilroy CFD No. 2012 -1 5 January 9,20-12
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. 2012 -1 6 January 9, 2012
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2012 -12 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 19�h day of March, 2012, 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 27`x' day of March, 2012.
(Seal)