12-21-2004 -TO: Andrew G. Pasmant, City Manager/Executive Director
and City Council / CDC Governing Board
FROM: Shannon A. Yauchzee, Director/City Engineer
Christopher Chung, CDC Director
BY: Arnold M. Alvarez-Glasman, City Attorney
Matt Gorman, Deputy City Attorney
City of West Covina
Memorandum
AGENDA
ITEM NO. D-2
DATE December 21, 2004
SUBJECT: ESTABLISHMENT OF COASTAL SAGE AND SCRUB (CSS)
COMMUNITY FACILITIES DISTRICT (PER MELLO-ROOS
COMMUNITY FACILITIES ACT OF 1982) AND AUTHORIZING AN
ELECTION AND CDC VOTE ON THE LEVY OF SPECIAL TAXES
RELATED THERETO
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution formally establishing the
Coastal Sage and Scrub (CSS) Community Facilities District and setting an election to occur
immediately following adoption of the resolution:
OI
RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF WEST COVINA FORMING THE COASTAL SAGE
AND SCRUB (CSS) COMMUNITY FACILITIES DISTRICT AND
SETTING AN ELECTION FOR THE LEVY OF SPECIAL TAXES FOR
DECEMBER 21, 2004
In addition, it is recommended that the Community Development Commission adopt the
following resolution authorizing the CDC to vote in favor of the levy of special taxes by the CSS
Community Facilities District:
RESOLUTION NO. S-7 6. A RESOLUTION OF THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF WEST COVINA
VOTING IN FAVOR OF THE LEVY OF SPECIAL TAXES BY THE CSS
COMMUNITY FACILITIES DISTRICT AND WAIVING ALL TIME
LIMITS AND ELECTION REQUIREMENTS RELATING THERETO
DISCUSSION:
This public hearing item was opened and continued from the December 7, 2004 City Council
meeting. Pursuant to agreements with agencies such as the U.S. Fish & Wildlife Service and the
Army Corps of Engineers, the Community Development Commission must implement a habitat
restoration and maintenance program designed to protect the California gnatcatcher (Polioptila
califomica califomica), a federally threatened species under the provisions of Section 7 of the
Endangered Species Act of 1973 (16 U.S.C. § 1531, et seq.).
At its meeting on October 19, 2004, the City Council adopted Resolution No. 2004-83, declaring
its intent to form the "Coastal Sage and Scrub (CSS) Community Facilities District" in order to
provide a means for financing the habitat program. The District will be formed pursuant to the
Mello -Roos Community Facilities Act of 1982 (the "Mello -Roos Act"), which allows the District
to levy special taxes against properties located within the District's boundaries. The special tax
revenue would fund the habitat program.
The Mello -Roos Act requires two key proceedings prior to the final establishment of the District
and the levy of special taxes: (1) there must be a public hearing on formation of the District,
with an opportunity for landowners within the District to lodge objections; and (2) there must be
an election among the landowners approving the levy of special taxes against their property by a
two-thirds vote.
ZAAGENDA - 2004\CSS District - Council Report Re Formation Levy (draft 5)1.doc
•
0
Andrew G. Pasmant, City Manager
and City Council
Page 2 — December 21, 2004
Resolution No. 2004-83 established December 7, 2004 as the date for the public hearing (the
hearing was opened and held over to December 21, 2004). In addition, all landowners within the
proposed District have indicated their approval of the levying
of special taxes and have agreed to waive all time limits for conducting an election, as permitted
pursuant to the Mello -Roos Act. Thus, all prerequisites for the establishment of the District and
the levy of special taxes, are satisfied.
Because funds raised by Mello -Roos districts may be used to fund facilities and services related
to parks, open space, and related matters, formation .of a Mello -Roos community facilities district
is ideal in this case. In addition, because Mello -Roos districts levy special taxes rather than
assessments, the onerous requirements of assessment districts need not be followed.
Establishment of the CSS Community Facilities District
A Community Facilities District may not be established until a report is first filed with the City
Council concerning the proposed District and describing how it will operate and levy special
taxes. Such a report has been prepared and filed with the City by the City's consulting engineers,
Berryman & Henigar. A copy is attached hereto (Attachment No. 1).
In addition, the City Council must hold a public hearing on forming the District. If, at or before
the public hearing, one-half or more of all landowners subject to the proposed levy of special
taxes voice their protest over the formation of the District, no further proceedings are allowed for
one year.
There are currently only two landowners within the proposed District's boundaries: BKK
Corporation and the Community Development Commission. Each owns acreage within the
proposed boundaries, as follows:
BKK land: 425.2 total acres
CDC land: 231.2 total acres*
Total District Acreage: 656.4 total acres
* The CDC is in escrow with West Covina Heights S.C., LLC (a.k.a., "Eclipse
Development Group") for the sale of 43.7 of the CDC's 231.2 acres in within
the proposed District.
Because ' the CDC is the owner of three of 231.2 acres comprising the proposed District, and
because BKK is contractually bound to support the establishment of the District through its DDA
with the CDC, it is unlikely that protests against the formation of the District will be received. A
copy of BKK's contract provisions concerning its support of the District is attached as
Attachment No. 2.
If less than 50% of landowners protest, then following the public hearing the City Council may
vote to formally establish the District by adopting a "Resolution of Formation." The Mello -Roos
Act requires various matters to be stated in the Resolution, including the facilities and services
that will be funded by the District, the District's boundaries, the District's name, and the
maximum tax rate and basis for apportionment and collection.
ZA\AGENDA - 2004\CSS, District - Council Report Re Formation Levy (draft 5)1.doc
Andrew G. Pasmant, City Manager
and City Council
Page 3 — December 21 2004
All such matters are stated in the attached Resolution (Attachment No. 3). If adopted, the
Resolution would authorize a special tax against the BKK and City property within the District,
summarized as follows:
Property
Maximum Tax
Per Acre
Maximum Total
Tax Levy
BKK land
(APN's 8735-001-009, 8735-002-018,
and 8735-002-019)
$96.37
$40,975.00
CDC land Parcel 1:
$702.83
$11,948.11*
Parcel2:
$702.83
$13,002.36*
Parcel 3:
$702.83
$3,373.58*
Parcel 4:
$702.83
$1,194.81
Parcel 5:
.$702.83
$702.83*
Parcel 6:
$702.83
$491.98*
Parcel 7:
$1,396.67 (avg.)
$37,849.76
Parcel 8:
$1,726.41 (avg.)
$8,114.13
Parcel 9:
$1,726.41 (avg.)
$4,488.67
Parcel 11:
$1,218.07 (avg.)
$2,679.75
Parcel 12:
$1,726.4--
1 (avg_)---------
------------------
$1,069.05 (avg.)
$163,318.39------
$247,164.37
Total:
Total Acreage (656.4 acres):
$438.97 (avg.)
$288,139.36**
* Parcels 1 through 6 comprise a portion of land which West Covina Heights S.C., LLC .
(Eclipse Development Group) is currently in escrow with the CDC for purchase. Upon
the closing of escrow, any taxes levied on Parcels 1 through 6 (maximum of
$30,713.67) will become an obligation of Eclipse.
** One cent lost represents fractional amount rounded down for final figure.
The following is a summary of the other provisions of the draft Resolution of Formation required
by the Mello -Roos Act (Attachment No. 3):
• Name of District: "Community Facilities District One; Costal Sage and Scrub (CSS)
Community Facilities District."
• District Boundaries: The boundaries correspond with the parcels located in the BKK and
Eclipse development area.
• Facilities and Services to be Funded: The CSS Community Facilities District will fund
the habitat restoration and maintenance programs, as well as related open space
improvements and other matters authorized by the Mello -Roos Act.
• Tax Rate and Apportionment: Per CDC's agreement with BKK, a fixed 25% of "Habitat
Maintenance" costs will be levied as a special tax on the BKK parcels — APN's 8735-
001-009, 8735-002-018, and 8735-002-019 (Attachment No. 2). This averages to a tax
rate of $96.37 per acre. CDC property makes up the balance of District costs, and its
parcels average a tax rate of $1,069.05 per acre. Taxes will be apportioned as described
in Attachment 1.
ZA\AGENDA - 2004\CSS District - Council Report Re Formation Levy (draft 5)1.doc
Andrew G. Pasmant, City Manager
and City Council
Page 4 — December 21, 2004
• Collection of Special Taxes: Special taxes levied by the District will be placed on the
property tax rolls and collected by the Los Angeles County in conjunction with property
tax collection. The County will return to the City the special tax revenue, which can then
be placed in an account to fund the CSS District's activities.
Once the District is formed it may not levy special taxes until an election among landowners
within the District is held and at least two-thirds of all landowners vote in favor of the levying of
special taxes.
Election on -the Levy of Special Assessments
In order to expedite the election process, the Mello -Roos Act provides for a waiver of special tax
election requirements if all landowners consent. In such a case, it is common practice to conduct
an election on the levy of special taxes at the same city council meeting at which the District was
formed, immediately following the adoption of the Resolution of Formation.
The two landowners within the proposed District, the CDC and BKK, will have the right to vote.
The vote is counted on an acre -basis (one acre = one vote; fractional acreage counts as one vote).
Thus, the BKK will have 426 votes; the CDC will have 232 votes. A two-thirds vote is required
in order for .the District to levy the special taxes authorized by the Resolution of Formation (i.e.,
two-thirds of 658 = 439 votes).
City has contacted BKK and it has agreed to a waiver of election requirements so that the
election can be conducted immediately following the City Council's adoption of the Resolution
of Formation. BKK has also indicated its consent to the levy of special taxes in a manner
consistent with the draft Resolution of Formation, and to that end, has authorized the CDC to
cast its votes in favor of such levy.
In addition, the CDC is in escrow with West Covina Heights S.C., LLC (a.k.a., "Eclipse
Development Group"; hereafter, "Eclipse") for Eclipse's purchase of property comprising Parcels
1 through 6 proposed to be within the District (these Parcels total 43.7 acres in size). While not
currently a landowner, and thus has no voting rights, Eclipse will be a landowner in the future
and would be subject to special taxes levied for these properties (maximum taxes of $30,713.67;
see table above). Eclipse was thus contacted in the interest of good faith and has likewise
indicated its agreement to a waiver of election requirements and its support of the District.
Written confirmation of the consent by BKK and Eclipse is provided in their letters (Attachment
No. 4), whereby they expressly consent to an,election immediately following adoption of the
Resolution of Formation.
Because the CDC is a landowner within the District, it can waive election requirements so that
the levying process can be expedited. The attached resolution- (Attachment No. 5) provides for
the CDC's waiver of election requirements. It also provides for the CDC to vote in favor of the
levy of special taxes, and to cast BKK's votes in favor of such levy, as authorized by BKK in
their letter supporting formation of the District. If adopted, all landowners in the proposed
District will have waived election requirements such that the election on levying special taxes
could be held immediately following City Council/Governing Board action on these items.
ZAAGENDA - 2004\CSS District -Council Report Re Formation Levy (draft 5)1.doc
Andrew G. Pasmant, City Manager
and City Council
Page 5 — December 21 2004
CONCLUSION:
The Mello -Roos district is an ideal tool for funding the necessary habitat programs in the BKK
area. Accordingly, staff recommends that the City Council adopt the attached Resolution
forming the CSS Community Facilities District and establishing an election immediately
following its adoption for landowners to vote on the levy of special taxes by the District. Staff
further recommends that the Governing Board adopt the attached Resolution authorizing the City
Manager/Executive Director to cast all votes in favor of the levy of special taxes as outlined in
Attachment 1 as described herein.
FISCAL IMPACT:
Costs to the City and/or CDC equal the cost necessary to fund the District's activities, less the
BKK parcels' contribution to funding such costs (in the form of special taxes; $40,975); these
costs amount to $247,164.36. Upon the close of escrow with Eclipse, special taxes for Parcels 1
through 6 ($30,713.67) will not be a City/CDC obligation, thus reducing such costs to
$216,450.69. However, if the District is not formed, or levying of special taxes is not approved,
then the City and/or CDC will be solely responsible for funding 100% of the habitat mitigation
and monitoring costs required by the overseeing governmental agencies. This amounts to
$288,139.36 (see Attachment No. 1). This additional cost would have to be funded from the
project revenues and/or the General Fund.
Thus, the net fiscal impact is estimated to eventually be a $71,688.67 savings.
Prepared by: Matt Gorman Reviewed/Approve by: Shannon A. Yauchzee
Deputy City Attorney Director/City Engineer
Reviewed/Approved by:
CDC
Approved via telephone
City Attorney
Attachment No. 1— Berryman & Henigar Report on CSS Community Facilities District
Attachment No. 2 — Excerpts of BKK contract terms regarding the District
Attachment No. 3 — Resolution of Formation
Attachment No. 4 — BKK and Eclipse letters waiving election requirements, etc.
Attachment No. 5 — Resolution of CDC waiving election requirements and authorizing votes
ZAAGENDA - 2004\CSS District - Council Report Re Formation Levy (draft 5)1.doc
ATTACHMENT NO. 1
SPECIAL TAX REPORT
COMMUNITY FACILITIES DISTRICT NO. 1
COSTAL SAGE AND SCRUB (CSS)
FOR THE
CITY OF WEST COVINA
Prepared By
Berryman & Henigar
DECEMBER 7, 2004
COMMUNITY FACILITIES DISTRICT NO. 1
COSTAL SAGE AND SCRUB (CSS)
City of West Covina
TABLE OF CONTENTS
Introduction.............................................:... i
Descriptionof District.....................................................................................................1
Description of Facilities ............................................... 4
..............
CostEstimate ...............................................: 6
Rate and Method of Apportionment...............................................................................8
Community Facilities District No. 1 Special Tax Report
December 7, 2004
Page i
COSTAL SAGE AND SCRUB (CSS)
Community Facilities District No. 1
City of West Covina
INTRODUCTION
The City of West Covina (City) has been requested to initiate proceedings to establish a
Community Facilities District (District) for the purpose of restoring and maintaining
habitat areas as described in Costal Sage Scrub Conservation and Monitoring Plan
dated May 22, 2003. The District may also fund the maintenance of parkway
landscaping and lighting as described in this report.
The proposed District is located in the City of West Covina, County of Los Angeles,
State of California, as depicted on a reduced map of the boundaries thereof, Exhibit A,
Boundary Map, included herein.
On October 19, 2004, the City Council adopted a resolution entitled "Resolution of
Intention to Establish a Community Facilities District", Resolution No. 2004-83 declaring
its intention to form the District and ordered the preparation of a report describing the
proposed services to be financed by the District if it is formed. The proceedings are
being conducted in accordance with the provisions of the "Mello Roos Community,
Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5, commencing with
Section 53311, of the Government Code of the State of California (the Act). The report
has been prepared by, or under the direction of the Director of Public Works and other
such officers responsible for the providing of the services to be financed by the
proposed District. The report has been prepared in accordance with Section 53321.5 of
the Act and includes among other information:
a) A description of the habitat restoration and preservation services and other
maintenance services which are required to adequately meet the needs of the
District (Part II).
b) An estimate of the fair and reasonable cost 'of habitat restoration and
preservation maintenance services, and parkway maintenance and all other
related costs as provided in Section 53345.3 of the Act (Part III).
i
Community Facilities District No. 1 Special Tax Report
December 7, 2004
Page 1
Part I - Description of District
The proposed District (Preserve Maintenance District) Community Facilities District No.
1 as shown in Exhibit A includes the following Assessor's Parcel Numbers:
Assessor's Parcel
Number
8735 002 018
8753 002 019
8753 002 901
8735 002 902
8735 002 903
8735 001 900
8735 001 009
8735 001 901
8735 001 902
8735 001 903
Owner
BKK Company
BKK Company
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
BKK Company
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
The acreage for each parcel shall be as shown on the records of the County Assessor's
Office, County of Los Angeles.
A tentative parcel map has been filed with the City of West Covina, Map 60193, which
will facilitate the development of the parcels described above as shown in Exhibit B. It
is anticipated that this Parcel Map will have been recorded prior to the levy of the
Special Tax. The proposed ownership and acreage at the time of recording is shown
below, although the City has entered into agreements to sell certain of the parcels upon
recordation of the parcel map.
Ownership
Parcel 1
Parcel 2
Parcel 3
Parcel 4
Parcel 5
Parcel 6
Parcel 7
Parcel 8
Parcel 9
Parcel 10
Parcel 11
Parcel 12
8735 001 009
8735 002 018
8735 002 019
Owner
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
Redevelopment Agency of West Covina
BKK Company
BKK Company
BKK Company
Community Facilities District No. 1
December 7, 2004
Paae 2
I
Special Tax Report
i
Exhibit A
Boundary Map
1;W 1'IISI I: HIIIINDA121 S I I
CCMMUAITY FACILITIES DISTRICT NO, ONE
COAS I AL SAGL AND SCRUB (CSS) 40MMUN1 Y F ACILI I =S DIS I RIC I
:;[TY 7= WES— COV=N(%
CCUNTY OF _OS ANGELES, S—A—E OF Ci'L=FORNI/\
j1_•,rw.: ns ceo scf ��,••
a7�-ao:-vx •.fi�� ,�••
�� .•,` ._,_ _�-._ ~•arm.000
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L6 L61Jll
rwcL.rnr LIL f>YT M • - cnurY. LnS ,.v 21U .tiYf 00[ 1 7.1- Jrf ILTIRC;
r,1r a YII1 �vu mfYr• u to ura� frr.r r< _str»ro� v/t raffavrf Lv vc tc-•
. ����� rrtavntcz acu,owQr � cafnv,)rr rn-:urtrs
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tw t
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Community Facilities District No. 1
December 7, 2004
Paae 3
T
3
Exhibit B
Tentative Parcel Map No. 60193
M
SCALE; 1" 0 750'
0 750 1500 2250
Special Tax Report
PARCEL 12
Tentative Parcel
map No.60193
Proposed
Zouln
Size (Acres)
Parcel l
«Service Commercial"
17.0
Parcel 2
'"Service Commercial"
18.5
Parcel 3
`'Service Commercial"
4.8
Parcel 4
"Service Commercial"
1.7
Parcel S
"Service Commercial"
1.0
Parcel 6
'<Serincc Commercial"
0.7
Parcel 7
ace"
27.I
Me, 8
« en space,
4.7
Parcel 9
"Service Co —crew"
2.6
Parcel 10
"Open Space"
26
Parcel I 1
"O en S aco"
2.2
Parcel 12I
"S eciSe plan No. IS"
94.6
Parcel 13"S
ec c Plan No. IS"
24.6
Parcels A —
N/A
S.7
13
r AREA
Note: For BKK Parcel (APN No's 8735-001-009, 8735-002-018 and 8735-002-019)
refer to'Boundary Map shown in Exhibit A.
•
Community Facilities District No. 1
December 7, 2004
Paqe 4
Part II - Description of Facilities/Services
Special Tax Report
The proposed services include all direct, administrative and incidental annual costs and
expenses related to the maintenance, operation and management of public or private
property required by the Costal Sage Scrub Habitat Conservation and Monitoring Plan
(the "Plan') dated May 22, 2003 or as may be amended.
The Plan describes the habitat maintenance and monitoring that may, be funded through
land secured financing including this CFD. The proposed services to be funded by the
District shall not include the initial habitat creation or establishment within the project
open space areas. Revenues from this CFD may be used for habitat maintenance,
biota monitoring, and preserve security including ordinary and necessary administrative
expenses and reserve fund requirements. Such services shall include the following:
A. Habitat Maintenance
1. Maintenance activities as described in the "Conceptual Coastal Sage Scrub
Conservation and Monitoring Plan' (the "CSS Plan') submitted to the U.S. Army
Corps of Engineers and the U.S. Fish & Wildlife Service. In general, the
maintenance services required under the CSS Plan are as follows:
a. On -going maintenance and monitoring for the approximately 23 acres of
coastal sage scrub to be established by the City within disturbed and non-
native annual grassland portions. of open space and manufactured slopes
of the District;
b. Maintenance and protection of native plant species, weed removal, soil
treatments, and maintenance of irrigation systems or other improvements
as required under the plan;
c. Other services as needed for the protection of the site area, including
erosion control, maintenance of signage, weed control, trash removal,
pest control, and cowbird monitoring and trapping:
d. On -going monitoring and site inspection and assessment of CSS Plan
progress and success;
e. Site status documentation, including preparation , of an installation
summary report, progress reports, and annual status reports.
2. Maintenance of such other conservation measures as are or may be required by
the U.S. Fish & Wildlife Service, the U.S. Army Corps of Engineers, the California
Department of Fish & Game, or other regulatory agency exercising jurisdiction
over lands within the District ("Conservation Measures"). Full and complete
copies of documents concerning such Conservation Measures are on file at the
offices of the City Clerk. In general, the maintenance services required by the
Conservation Measures are as follows:
a. Maintenance of a 24 acre coastal sage scrub conservation area, for
preservation and management of existing coastal sage scrub (the
"Conservation Area" );
b. Preparation and recording of a conservation easement over the CSS Plan
and Conservation Area lands;
Community Facilities District No. 1
December 7, 2004
Paae 5
Special Tax Report
C. Monitoring the Conservation Area as required by the Conservation
Measures;
d. Maintenance of fencing and flagging within the Conservation Area to
mitigate the impact of construction or other human activities;
e. Salvaging native topsoil and grubbed plant material, and spreading, as
required by the Conservation Measures, as required by maintenance ;
f. Maintenance of lighting shields on lighting within public rights -of -way or
easements as required in the Shielded Lighting Plan for the CSS Plan and
Conservation Area lands, the maintenance of lighting shields on lighting
located on private property shall be the responsibility of the property
owner and District funds may not be used to maintain lighting shields for
lighting installed on private property;
g. Maintenance of the brown -headed cowbird monitoring plan for the CSS
Plan and Conservation Area lands;
h. Maintenance of policies prohibiting landscaping with plants identified by
the California Exotic Pest Plan Council as an invasive risk in southern
California;
i. 'Maintenance of policies regarding dumping of trash and maintenance of
. fencing adjacent to CSS Plan and Conservation Area lands.
B. Resource Monitoring Program
1. Resource monitoring includes on -going activities related to the annual biota
monitoring and reporting program consistent with the CSS to identify changes in the
quality and quantity of preserve resources including wildlife species, sensitive plants
and sensitive habitat types.
C. Parkway Maintenance
1. Parkway Maintenance includes the maintenance of roadway medians and parkways,
operation and maintenance of roadway lighting, and maintenance and servicing of
landscaping within the public rights -of way including all utilities required to provide or
maintenance these services.
Community Facilities District No. 1 Special Tax Report
December 7, 2004
Page 6
Part III - Cost Estimate
The estimate of the fair and reasonable cost of the proposed services for Habitat
Maintenance and Monitoring and all other related costs is deemed to be not greater
than $163,900 if all services and facilities were required for the fiscal year ending June
30, 2006 as shown below. In addition, the City may recover the costs of district
formation and preparation of the Habitat Mitigation and Monitoring Plan including the
botanical and wildlife surveys required. for the preparation of the plan. These costs
shall be recovered during the first five years on a pro-rata basis form parcels in
Improvement Area A
Category 1 - Habitat Maintenance and Monitoring
Habitat Maintenance Budget
Maintenance of 47 acres
$33,500
Cowbird Monitoring and_Trapping
.......... ........ ......... _ _...
Preserve Administration
$19 500
- -° - -...
$12,000
_
Maintenance Reserve_ _
$10,500
--
Operating Reserve _.__. _... __ _. __
. _._.. _._ ......._.._.._.....--....._......_..........._-_........._...._.___...._
Allocable Portion of District Administration
$28 000
--
$3,500
Subtotal Maintenance Budget
$107 000
Monitoring Budget
Annualized Costs ___
$35,000
-�_ _
Contract Administration
_.__.._._..._.._....____....___________.__._.____.._.__....__.___._..
Monitoring Reserve
Operating Reserve_
. $4,400
$7,000
$18,000
Allocable Portion of District Administration _
_Subtotal Monitoring -Budget
$2,500
$56,900
_
Total Budget for Habitat Maintenance and Monitoring
$163,900
Category 2 Parkway
Maintenance
-District
Improvement
Area A
Improvement
Area B
Improvement
Area C
Formation and Cost
Reimbursement (First five
$25,000
N/A
N/A
ears onl
Annualized Maintenance
$45,100
$18,000
$27,000
Costs
__Contract Administration
$5,000
$3,540
$4,800
Allocable Portion of District
$2,500
$1,500
$1,800
Administra. ...._._._..... ............ .... _... ........._..................... _...._
......._..........................__
Total Budget for Parkway
........ .......... _... _.... _.._
$67,600
...... _.... ...._..... _.............. _........ ...... ..........
$23,040
... _-._..--...._....__._.-- ...__..
$33,600
Maintenance
Community Facilities District No. 1
December 7, 2004
Paae 7
Special Tax Report
Each Fiscal Year thereafter, the City shall cause to be prepared annually a budget
showing the estimate of cost for Category I -Habitat Maintenance, Resource Monitoring,
and Category 2 - Parkway Maintenance for the coming year for Improvement Areas A,
B, and C of the District. The budget for each Fiscal Year may show the proportional
cost `of those maintenance and/or monitoring activities which occur less frequently than
on an annual basis.
Parcels included within Improvement Area A shall include Parcels 7, 8, 9, 11 and 12 as
shown on the Tentative Parcel Map 60193. Parcels included within Improvement Area
B shall include Parcels 7, 8, 9, and 12 as shown on the Tentative Parcel Map 60193.
Parcels included in Improvement Area C shall include Parcels 8, 9, and 12 as shown on
the Tentative Parcel Map 60193.
t
Community Facilities District No. 1
December 7, 2004
Page 8
Part IV - Rate and Method of Apportionment of Special Taxes -
ANNUALTAX
Special Tax Report
A Special Tax shall be levied annually on each Parcel of land within the Maintenance
District, Community Facilities District No.1 of the City of West Covina (the "District"), and
collected according to the Special Tax Liability determined by the City of West Covina
(the "City") through the application of the following procedures. All of the property within
the District, unless otherwise exempted by law or the express provisions of the rate and
method of apportionment expressed below, shall be taxed to the extent and in the
manner provided below.
All Special Taxes applicable to Parcels shall be collected in the same manner and at the
same time as ordinary ad valorem property taxes, and Special Taxes so levied will be
subject to the same penalties and procedures, sale and. lien priority in case of
delinquency as is provided for ad valorem taxes.
DEFINITIONS
Acre or Acreage means the area of a Parcel as shown on the latest maps of the
Assessor of the County of Los Angeles, or if the area of such Parcel is not shown on
such Assessor's maps, the area as shown on a current recorded subdivision map,
parcel map, _ record of survey or other recorded document creating or describing the
Parcel. If the preceding maps are not available, the area shall be determined by the
City Engineer.
Administrative Expenses means the direct and indirect expenses incurred by the City
in carrying out its duties with respect to the District (including, but not limited to, the levy
and collection of the special taxes) including the fees and expenses of its counsel, any
fees of the County related to the District or the collection of special taxes, an allocable
share of the salaries of City staff directly related thereto and a proportionate amount of
the City's general administrative overhead related thereto, any amounts paid by the City
from its general fund with respect to the District, and all other costs and expenses of the
City related to the administration of the District.
City means the City of West Covina.
Development Parcel means the following parcels as shown on Tentative Parcel Map
No. 60193 including any subsequent segregation or consolidation of parcels (Parcels 1,
2, 3, 4, 5, 6, 7, 8, 9, 11 and 12) and Assessor parcel 8735,001-009, 8735 002 018 and
8735 002 019.
District means Community Facilities District No. 1 of the City of West Covina.
Fiscal Year means the period starting on July 1 and ending the following June 30.
•
Community Facilities District No. 1
December 7, 2004
Paae 9
Special Tax Report
Maximum Special Tax means the maximum special tax that can be levied within CFD
No. 1 by the City Council in any Fiscal Year for each Development Parcel.
Parcel means any Los Angeles County Assessor's Parcel or portion thereof that is
within the boundaries of the District designated on a map of the Los Angeles County
Assessor and which has been assigned a discrete identifying number on the equalized
tax rolls of the County.
Operating Fund means a fund that shall be maintained for any Fiscal Year to pay for
services within each budget category as defined herein including Administrative
Expenses and shall include a Reserve Fund for the category.
Operating Fund Balance means the amount of funds in the Operating Fund at the end
of the preceding Fiscal Year.
Operating Fund Requirement means for any Fiscal Year an amount equal to the
Operating Fund Requirement plus Reserve Fund Requirement by category for the
current Fiscal Year in which Special Taxes are levied.
Services means those activities, including the cost of contract management and
administration, defined as follows:
1. Maintenance activities as described in the "Conceptual Coastal Sage Scrub
Conservation and Monitoring Plan" (the "CSS Plan") submitted to the U.S. Army
Corps of Engineers and the U.S: Fish & Wildlife Service. In general, the
maintenance services required under the CSS Plan are as follows:
a. On -going maintenance and monitoring for the approximately 23 acres of
coastal sage scrub to be established by the City within disturbed and non-
native annual grassland portions of open space and manufactured slopes
of the District;
b. Maintenance and protection of native plant species, weed removal, soil
treatments, and maintenance of irrigation systems or other improvements
as required under the plan;
c. Other services as needed for the protection of the site area, including
erosion control, maintenance of signage, weed control, trash removal,
pest control, and cowbird monitoring and trapping:
d. On -going monitoring and site inspection and assessment of CSS Plan
progress and success;
e. Site status documentation, including preparation of an installation
summary report, progress reports, and annual status reports.
2. Maintenance of such other conservation measures as are or may be required by
the U.S. Fish & Wildlife Service, the U.S. Army Corps of Engineers, the California
Department of Fish & Game, or other regulatory agency exercising jurisdiction
over lands within the District ("Conservation Measures"). Full and complete
copies of documents concerning such Conservation Measures are on file at the
i
.to
Community Facilities District No. 1
December 7, 2004
Page 10
Special Tax Report
offices of the City Clerk. In general, the maintenance services required by the
Conservation Measures are as follows:
a.
Maintenance of a 24 acre coastal sage scrub conservation area, for
.
preservation and management of existing coastal sage scrub (the
"Conservation Area");
b.
Preparation and recording of a conservation easement over the CSS Plan
and Conservation Area lands;
c.
Monitoring the Conservation Area as required by the Conservation
Measures;
d.
Maintenance of fencing and flagging within the Conservation Area to
mitigate the impact of construction or other human activities;
" e.
Salvaging native topsoil and grubbed plant material, and spreading, as
required by the Conservation Measures, as required by maintenance ;
f.
Maintenance of lighting shields on lighting within public rights -of -way or
easements as required in the Shielded Lighting Plan for the CSS Plan and
Conservation Area lands, the maintenance of lighting shields on lighting
located on private property shall be the responsibility of the property
,#
owner and District funds may not be used to maintain lighting shields for
lighting installed on private property;
i g.
Maintenance of the brown -headed cowbird monitoring plan for the CSS
Plan and Conservation Area lands;
h.
Maintenance of policies prohibiting landscaping with plants identified by
-
the California Exotic Pest Plan Council as an invasive risk in southern
California;
i.
Maintenance of policies regarding dumping of trash and maintenance of
fencing adjacent to CSS Plan and Conservation Area lands.
" j.
Maintenance of roadway medians and parkways, operation and
maintenance of roadway lighting, and maintenance of landscaping within
the public rights -of way including all utilities required to provide or
maintenance these services.
Reserve Fund means a fund that shall be maintained to provide necessary cash flow
for the first six months of each Fiscal Year, working capital to cover monitoring,
maintenance and services cost overruns and delinquencies that may arise in connection
with the collection.of'Special Taxes and a reasonable buffer against large variations in
annual special tax amounts.
Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of
the preceding Fiscal Year.
Reserve Fund Requirement means an amount equal to up to 100% of the Operating
Fund Requirement for any Fiscal Year.
Special Tax means the special tax or special taxes actually levied within CFD No. 1
each Fiscal Year.
Community Facilities District No. 1 Special Tax Report
December 7, 2004
Page 11
Special Tax Liability for any Fiscal Year is an amount sufficient to pay the costs within
the District equal to: (i) the Maintenance Fund Requirement, less the Operating Fund
Balance, and (ii) the Reserve Fund Requirement, less the Reserve Fund Balance.
Tax Categories are those Categories I and II described in the body hereof.
Taxable Property is all real property or Parcels within the boundaries of the District
which are not exempt from the Special Tax pursuant to the law or which are not
classified or assigned to the Exempt Category as'defined herein.
Categories of Special Taxes
Category I — Habitat Maintenance and Monitoring
The Maximum Special Tax for Category I - Habitat Maintenance and Monitoring that
may be levied for Fiscal Year 2005/06 on each .Development Parcel shall be at the rates
set forth in Table 1 below. The Special Tax shall be levied based on Acreage. The
Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a
factor which is the lesser of the annual percentage change in the January to January
Los Angeles Metropolitan Area All Urban Consumer Price Index (All Items) or the
annual percentage change in the estimated California Fourth Quarter Per Capita
Personal Income as contained in the Governor's budget published every January.
TABLE 1
Maximum Special Tax
I — Habitat Maintenance and Monitoring
Maximum of $702.83 per Acre for Development
Monitoring & Parcels 1, 2, 3,4,5,6,7,8 9, 11 and 12
Maintenance Maximum of $40,975 in aggregate for 8735-001-009,
8735-002-018, and 8736-002-019 prorated on acreage
Category II — Parkway Maintenance
The Maximum Special Tax for Category II- Parkway Maintenance that may be levied for
Fiscal Year 2005/06 on each Development Parcel within Improvement Areas A, B and
C, as shown on Exhibit 3, shall be at the rates set forth in Table 2 below (said amount to
be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be
increased or decreased each Fiscal Year thereafter by a factor which is the lesser of the
annual percentage change in the January to January Los Angeles Metropolitan Area All
Urban Consumer Price Index (All Items) or the annual percentage change in the
estimated California Fourth Quarter Per Capita Personal Income as contained in the
Governor's budget published every January.
Community Facilities District No. 1
December 7, 2004
Paqe 12
Special Tax Report
TABLE 2
Maximum Special Tax
Category If — Parkway Maintenance
Parkway Maintenance
Improvement
Area A
Improvement
Area B
Improvement
Area C
$515.24 per
$178.50 per
$329.74 per
Acre
Acre
Acre
Exempt Category
The Exempt Category includes each property owned, conveyed or irrevocably offered
for dedication to a public agency, or land which is in the public right-of-way, unmanned
utility easements which make utilization for other than the purpose set forth in the
easement impractical, common areas, private streets and parks, and open space lots
("Exempt Category").
Levy and Apportionment of Special Taxes
Category I — Habitat Maintenance and Monitoring
The City shall determine the Special Tax Liability in each Fiscal Year on or about every
July 1. Special Taxes shall then be levied on each Development Parcel in the District in
the following order of priority:
Step 1: Assign the Maximum Special Tax to Parcels 8735-001-009, 8735-002-018 and
8735-002-019 prorated on acreage. Except, that the maximum Special Tax that
may be assigned in each of the first five (5) years shall be limited to 25% of the
estimated costs of complying with Condition 11 of the Biological Opinion
regarding the monitoring and, if necessary, the trapping of cowbirds in the CSS
area as shown in the annual budget for the Operating Fund of the District,
including a pro-rata share of the District's Administrative Expenses, less 25% of
the fund balance from the prior year attributable to those services.
Step 2: Assign the Maximum Special Tax per Acre for the remaining parcels within the
District based upon acreage.
Step 3: If the total revenue as calculated above is greater than the estimated Special
Tax Liability :for Parcels within the District, reduce the Special Tax for each
Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal
to the Special Tax Liability for the Fiscal Year. Except, that for the first five (5)
years the Special Tax Liability shall not be reduced for Parcels 8735-001-009,
8735-002-018 and 8735-002-019 as defined in Step 1.
Step 4: Add to the Special Tax as calculated above for Parcels 8735-001-009, 8735-
002-018 and 8735-002-019 twenty-five percent (25%) of the costs of district
formation which is included in the Category II Annual Budget for Improvement
Area A. This cost shall be prorated on an acreage basis to each parcel.
Community Facilities District No. 1 Special Tax Report
December 7, 2004
.Page 13
Category II — Parkway Maintenance
The City shall determine the Special Tax Liability in each Fiscal Year on or about every
July 1. Special Taxes shall then be levied on Development Parcels in Improvement
Areas A, B and C in the following order of priority:
Step 1: Determine the revenue which could be could be generated by Parcels assigned
to Improvement Areas A, B and C, as described in Part III -Cost Estimate, by
multiplying the acreage of Parcels within each Improvement Area by the
Maximum Special Tax per Acre shown for Category II.
Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special
Tax Liability for each Improvement Area, reduce the Special Tax for each
Development Parcel in the Improvement Area proportionately so that the
Special Tax levy for the Fiscal, Year is equal to the Special Tax Liability for the
Fiscal Year.
Collection of the Special Tax
Each year, the City's Finance Department will coordinate with the Los Angeles County
Tax Collector's office to have the Special Tax for each applicable Assessor Parcel
placed on the secured property tax roll. A summary of the Maximum Special Tax which
could be levied in Year 1 is shown in Appendix A.
Appendix A
Summary of Annual Maximum Special Tax Levy
Habitat Maintenance
Maintenance Area A
Maintenacne Area B
Maintenance Area C
Cost Sumamry
Parcel No.
Porposed Zoning
Acreage
Maximum
Maximum
Maximum
Maximum
Cost/Acre
Maximum Tax
Cost/Acre
Tax
Cost/Acre
Tax
Cost/Acre
Tax
Total Cost
Tax
1
Service Commercial
17.0
$ 702.83
$ 11,948.11
N/A
N/A
N/A
N/A
N/A
N/A
$ .11,948.11
$ 702.83
2
Service Commercial
18.5
.$ 702.83
$ 13,002.36
N/A
N/A
N/A
N/A
N/A
N/A
$ .13,002.36
$ 702.83
3
Service Commercial
4.8
$ 702.83
$ 3,373.58
N/A
N/A
N/A
N/A
N/A
N/A
$ 3,373.58
$ 702.83
4
Service Commercial
1.7
$ 702.83
$ 1,194.81
N/A
N/A
N/A
N/A
N/A
N/A
$ 1,194.81
$ 702.83
5
Service Commercial
1.0
$ 702.83
$ 702.83
N/A
N/A
N/A
N/A
N/A
N/A
$ 702.83
$ 702.83
6
Service Commercial
0.7
$ 702.83
$ 491.98
N/A
N/A
N/A
N/A
N/A
N/A
$ 491.98
$ 702.83
7
Open Space
27.1
$ 702.83
$ 19,046.69
$ 515.24
$ 13,963.00
$ 178.60
$ 4,840.06
N/A
N/A
$ 37,849.76
$ 1,396.67
8
Open Space
4.7
$ 702.83
$ 3,303.30
$ 515.24
$ 2,421.63
$ 178.60
$ 839.42
$ 329.74
$ 1,549.78
$ 8,114.13
$ 1,726.41
9
Service Commercial
2.6
$ 702.83
$ 1,827.36
$ 515.24
$ 1,339.62
$ 178.60
$ 464.36
$ 329:74
$ 857.32
$ 4,488.67
$ 1,726.41
10
Open Space
26.0
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
11
Open Space
2.2
$ 702.83
$ 1,546.23
$ 515.24
$ 1,133.53
N/A
N/A
N/A
N/A
$ 2,679.75
$ 1,218.07
12
Specific Plan No. 15
94.6
$ 702.83
$ 66,487.72
$ 515.24
$ 48,741.70
$ 178.60
$ 16,895.56
$ 329.74
$ 31,193.40
$ 163,318.39
$ 1,726.41
13
Specific Plan No. 15
24.6
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
A-E
Public Use
5.7
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
BKK (see
Specific Plan No. 15
N/A
N/A
$40,975.00
N/A
N/A
N/A
N/A'
N/A
N/A
$40,975.00
N/A
note 1)
not
Totals
$ 163,899.97
1
$ 67,599.49 1
1
$ 23,039.40
1
$ 33,600.51 1
$ 288,139.36
NIA=No special tax may be levied on this parcel.
Note 1 = This is the maximum special tax that may be levied after year 5, however the the special tax for any year shall not exceed 25% of the Special Tax Liability for the coming year for Category I,
prior to year 5 the maximum special tax is limited to 25% of the costs of district formation and costs, if any, of trapping of cow birds in CSS area less 25% of the fund balance attibutable to those
items.
u
ATTACHMENT NO.2
the disapproved bid documents. In such event, Buyer's share of the costs of construction shall
not exceed one-half (1/2) of the total amount of the foregoing disapproved bid.
"(iii) The party constructing the Storm Drain Inlet shall deliver its invoice for
costs and expenses to the other parry, together With such documentation as may be reasonably
requested, and the other party shall pay same within thirty (30) days following the delivery of
said invoice and documentation.
"(iv) Buyer shall have the right to assign its obligations to construct the Storm
Drain Inlet to a successor owner or developer of all or any portion of the Fee Property.
"(v) Seller shall and hereby does grant to Buyer such licenses and easements as
may be necessary for Buyer to design and construct the Storm Drain Inlet as shown on Exhibit
`D' attached to the Sixth Amendment, which licenses and easements shall be on those portions of
real property owned by Seller as Buyer may deem reasonably necessary for such design and
construction.
"(i) Consulting Fees. Buyer and Seller acknowledge that Buyer has retained Vandermost
Consulting Services, Inc. (`Vandermost') to assist in the processing and approval of the
Outstanding Matter described at Item 7 of Exhibit `A' attached to the Fourth Amendment
(regarding the transfer of the SAA by California Fish and Game). Buyer and Seller shall equally
share all costs and expenses of Vandermost incurred between May 12, 2003 and May 31, 2003,
inclusive, in connection with said Item 7. Vandermost shall invoice Buyer and Seller separately.
CCO) Maintenance District. Buyer and Seller acknowledge and agree that the City of West
Covina (the `City') shall cause to, be formed a maintenance district or other financing mechanism
(such as by means of assessment or Mello -Roos special tax) (the `District') following close of
Escrow. The District shall be primarily responsible for allocating the costs of maintenance and
monitoring of the restored and preserved CSS area (as defined in the Biological Opinion) located
on Parcels 1 and 2 and.Lot 5 and any other related obligations as set forth in and pursuant to (A)
the terms of that certain 3iological/Conference Opinion, dated as of June 5, 2003, from the
United States Department of the Interior, Fish and Wildlife Service (the `USFWS'), to the U.S.
Army Corps of Engineers (the `Biological Opinion'), and (B) the terms of a Conservation
Revised Sixth Amendment 5
J
Easement Deed, to be granted by Buyer in favor of the City pursuant to the requirements of
USFWS and the Biological Opinion. Buyer and Seller further agree as follows:
"(i) Seller's real property lying within the boundaries of the District shall be
assessed in an amount equal to said 25% of the total amount assessed by the District, subject to
the terms and provisions of this Section 20).
"(d) Buyer agrees to use its commercially reasonable best efforts to perform its
E , obligations to revegetate and maintain the CSS area (as defined in the Biological Opinion) as
required by the terms of the Biological Opinion.
"(iii) The following provisions shall apply during that period of time
commencing with the formation of the District through the date which is five (5) years following
Buyer's completion of the revegetation of the CSS area (as defined in and pursuant to the
Biological Opinion) (the `Maintenance and Monitoring Period"); provided, however, that in the
event that Seller is able to prove to the reasonable satisfaction of Buyer or a trier of fact, as the
case may be, that Buyer has failed to perform its obligations to revegetate the CSS area as
required by the terms of the Biological Opinion solely due to the negligence of Buyer or the
intentional failure of Buyer to perform such obligations, then the Maintenance and Monitoring
Period shall be extended through and including the date on which Final Agency Approval (as
defined in the Biological Opinion) is obtained by Buyer from USFWS. During the Maintenance
and Monitoring Period, the costs to be assessed by the District shall be limited to (A) actual costs
of formation of the District, and (B) costs, if any, of complying with Condition 11 of the
Biological Opinion, regarding the monitoring and if necessa
ry, trapping of cowbirds in a CSS
area. Notwithstanding anything to the contrary contained herein, the District shall not incur or
assess the costs of establishing the CSS or habitat areas within the Maintenance and Monitoring
Period, as same may be extended.
"(iv) Following the Maintenance and Monitoring Period, the costs which may be
assessed by the District shall be those costs described at subsection 0) above.
"The covenants contained in subsections (g), (h), (i) and 0) above, together with those
described and in subsections (d), (e) and (f) above, shall survive close of Escrow."
Revised Sixth Amendment 6
0
O�TACHMENT NO.3
RESOLUTION NO.2004-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA ESTABLISHING THE COASTAL
SAGE AND SCRUB (CSS) COMMUNITY FACILITIES
DISTRICT AND SETTING AN ELECTION ON THE LEVY
OF SPECIAL TAXES BY SAID DISTRICT FOR
DECEMBER 21, 2004
WHEREAS, the area within the City limits commonly known as the. BKK landfill is
currently being developed for the benefit of the City and its residents (the `BKK
developments");
WHEREAS, portions of the BKK developments, and adjacent and surrounding areas, are
comprised of environmentally -sensitive habitat, including habitat for endangered species such as
the California gnatcatcher (Polioptila californica californica);
WHEREAS, the City of West Covina Community Development Commission has entered
into certain agreements with State and/or federal agencies concerning the restoration and
,maintenance of sensitive environmental, habitat generally within the area of the BKK
developments;
WHEREAS, the City desires to establish a mechanism to fund the restoration,
maintenance, and preservation of sensitive environmental habitat within the area of the BKK
developments, and to fund the establishment and maintenance of related open space and other
facilities and services;
WHEREAS, in order to accomplish the foregoing, the City desires to form a community
facilities district pursuant to the Mello -Roos Community Facilities Act of 1982 (Gov't Code §
53311, et seq.; the "Act"), and to levy a special tax on all property within the district for legal -
permitted facilities and services;
WHEREAS, on October 19, 2004, the City Council adopted a Resolution of Intent
(Resolution No. 2004-83) to form a community facilities district under the Act, identified as the
"Community Facilities District No. One, Coastal Sage and Scrub (CSS) Community Facilities
District," and directed staff to implement the Act's requirements for formation of said District;
WHEREAS, subsequent to the adoption of the Resolution of Intent, staff implemented all
prerequisites to the establishment of the CSS Community Facilities District, including but not
limited to the preparation and filing of an engineering report for said District (the "Special Tax
Report; Community Facilities District No. 1; Coastal Sage and Scrub (CSS)," referenced
hereinbelow); the publication of notice for a public hearing on formation of the proposed
District; the delivery of notice of the public hearing to all landowners owning property within the
proposed District's boundaries;
WHEREAS, on December 7, 2004, the City Council opened a public hearing on the
formation of the proposed District and voted to continue said hearing to December 21, 2004;
WHEREAS, the City Council now wishes to establish the Community Facilities District
as provided herein, and all protests against formation of the proposed District are insufficient to
prevent its formation;
WHEREAS, the City Council has received notice of all landowners owning property
within the proposed District of their consent to a waiver of all election requirements' for the levy
of special taxes by the District and for the holding of an election thereon at a time immediately
following the adoption of this Resolution, and the City Council also now wishes to set such
election on the levy of special taxes by the proposed District, to occur on December 21, 2004
immediately following the adoption of this Resolution; and
WHEREAS, the City Council exercising independent judgment has determined that the
project meets the criteria for a Class 7, Section 15307 Categorical Exemption, a Class 8, Section
project meets the criteria for a Class 7, Section 15307 Categorical Exemption, a Class 8, Section
15308 Categorical Exemption, pursuant to the guidelines for implementation of the California
Environmental Quality Act ("CEQA" [Public Resources Code § 21000, et seq.]; "CEQA
Guidelines" [Title 14, Div. 6, Chapt. 3 of the Cal. Code of Regulations]), and that the proposed
project will not have a significant adverse impact on the environment.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of West Covina as
follows:
SECTION 1. The City Council hereby affirms the accuracy of the foregoing recitals.
SECTION 2. In support of Class 7 and 8 Categorical Exemptions for this action (14
CCR §§ 15307, 15308), the City Council hereby adopts the following findings:
. A. The project will facilitate the establishment, maintenance, restoration and
enhancement of a natural resource, in that the project seeks to establish a community
facilities district which will impose a special tax for the purpose of funding habitat
restoration and maintenance programs pursuant to agreements reached with the U.S.
Fish & Wildlife Service and other federal and State agencies.
B. The formation of a community facilities district for such purpose is authorized by the
Mello -Roos Community Facilities Act of 1982 (Gov't Code § 53311, et seq.), and the
habitat restoration and maintenance programs have been approved by all requisite
federal and State authorities, and by the City Council of the City of West Covina.
SECTION 3. Pursuant to the Mello -Roos Community Facilities Act of 1982 (Gov't
Code § 53311, et seq.), the City Council hereby establishes a community facilities district, and
determines the following:
A. The District is hereby formed pursuant to Chapter 2.5 of Division 2, Part 1, of Title 5
of the California Government Code;
B. The boundaries of the District are as indicated on the map attached hereto as "Exhibit
A" and incorporated herein by reference;
C. The name for the District is "Community Facilities District No. One, Coastal Sage
and Scrub (CSS) Community Facilities District" (hereafter, the "District");
D. The public facilities and services to be financed by the District are the following:
" 1. Maintenance for parks, parkways, and open space;
2. Implementation of the "Conceptual Coastal Sage Scrub Conservation and
Monitoring Plan" (the "CSS Plan") submitted to the U.S. Army Corps of
Engineers and the U.S. Fish & Wildlife Service. A full and complete copy of the
CSS Plan is on file at the offices of the City Clerk and shall be made available to
the public- upon request. In general, the facilities and services required under the
CSS Plan are as summarized in the "Special Tax Report; Community Facilities
District No. 1; Coastal Sage and Scrub (CSS)," attached to this resolution as
"Exhibit B" and further summarized follows:
a. Establishment of approximately 23 acres of coastal sage scrub within
disturbed and non-native annual grassland portions of open space and
manufactured slopes of the District;
b. Monitoring site preparation activities, native seed mix application, CSS Plan
implementation, and overall site performance. Site preparation activities
include protection of existing native plan species, weed removal, soil
treatments, ripping, auguring, inoculation, irrigation installation, and seed mix
application;
c. Performing all site preparation procedures, irrigation system installation,
application of native seed mix to designated areas, maintenance tasks, and
i
CSS District - Reso re Formation of District (draft 3)
facilitating compliance with all site performance standards. Maintenance
tasks include a three to five-year maintenance program providing for
protection of the site area, erosion control, signage installation, weed control,
replacement, trash removal, pest control, and cowbird monitoring and
trapping. Maintenance tasks may include extended maintenance beyond the
three to five-year program period;
d. Implementation and monitoring, including site inspection and assessment of
CSS Plan progress and success, site monitoring and evaluation;
1
e. Site status documentation, including preparation of an installation summary
report, progress reports, and annual status reports.
3. Implementation of such other conservation measures summarized in the Special
Tax Report attached hereto as "Exhibit B" or as may be required by the U.S. Fish
& Wildlife Service, the U.S. Army Corps of Engineers, the California Department
of Fish & Game, or other regulatory agency exercising jurisdiction over lands
within the District ("Conservation Measures"). Full and complete copies of
documents concerning such Conservation Measures are on file at the offices of
the City Clerk and shall be made available to the public upon request. In general,
the facilities and services required by the Conservation Measures are as follows:
a. Establishment of a twenty-four acre coastal sage scrub conservation area, for
preservation and management of existing coastal sage scrub (the
"Conservation Area");
b. Establishment of a conservation easement over the CSS Plan and
Conservation Area lands, and implementation of all requirements relating
thereto;
c. Monitoring the Conservation Area as required by the Conservation Measures;
d. Fencing and flagging the Conservation Area to mitigate the impact of
construction or other human activities;
e. Salvaging native topsoil and grubbed plant material, and spreading, as
required by the Conservation Measures;
f. Preparation of a shielded lighting plan for the CSS Plan and Conservation
Area lands, and implementation and maintenance of any final approved
shielded lighting plan for such lands;
g. Implementation and maintenance of a fencing plan as required by the
Conservation Measures;
h. Preparation of a brown=headed cowbird monitoring plan for the CSS Plan and
Conservation Area lands, and implementation and maintenance of any final
approved monitoring plan for such lands;
i. Implementation and maintenance of policies prohibiting landscaping with
plants identified by the California Exotic Pest Plan Council as an'invasive risk
in southern California;
j. Implementation and maintenance of policies regarding dumping of trash and
maintenance of fencing adjacent to CSS Plan and Conservation Area lands.
E. Except where funds are otherwise available, a special tax sufficient to pay for all
facilities and services, secured by recordation of a continuing lien against all
nonexempt real property in the District, will be annually levied within the area. The
rate, method of apportionment, and manner of collection of the special tax will be as
follows:
1. All property within the District shall be subject to a special tax rate no greater
CSS District - Reso re Formation of District (draft 3)
than that described in the Special Tax Report attached hereto as "Exhibit B." In
general, such maximum special tax rate amounts to: (1) an average special tax
rate of $1,069.05 per acre for all property within the District's boundaries except
:.; those parcels identified as the "BKK Parcels" (APN's 8735-001-009, 8735-002-
018, and 8735-002-019); and (2) an average special tax rate of $96.37 per acre for
said BKK Parcels (actual taxes for the BKK Parcels is based on a flat 25% figure,
as described in the Special Tax Report, "Exhibit B"). A complete description of
the special tax rate, method of apportionment, and related matters required by the
Mello -Roos Act are provided in the Special Tax Report, "Exhibit B," attached
hereto;
2: The special tax to be levied against each property within the District shall be
computed and presented to the Los Angeles County Auditor/Controller
commencing with Fiscal Year 2005/06. The County Auditor/Controller shall enter
on the County Tax Roll opposite each parcel of land the amount of levy, and such
levies shall be collected at the same time and in the same manner as the County
property taxes are collected. After collection by the County, the net amount of the
levy shall be paid to the City.
F. No special tax shall be levied within the District against any parcel that is
subsequently used for private residential purposes;
G. There shall be no adjustment in property taxation to pay prior indebtedness for the
District.
H. Voting procedure on the election for levying of special taxes by the District shall be
as follows:
1. The City Council hereby sets an election on the proposed levy of special taxes by
the District, and for the canvass of returns, for December 21, 2004, to commence
immediately following the City Council's adoption of this Resolution.
2. Unless waived by landowners owning property within the District, all election
requirements provided in the Resolution of Intent shall govern the election.
3. Prior to the close of the hearing, the City Council shall direct a canvass of returns
and shall declare and certify the results thereof. In the event that landowners
owning property within the District have . waived election requirements, and/or
designated other entities to cast their votes on their behalf, such votes may be cast
(verbally or otherwise) at the election by any person or body so designated, and
all votes so cast shall be counted by the City Clerk in determining the final vote.
4. In the even that two-thirds or more of the votes cast favor the levying of the
special tax, the City Council may thereupon levy the special tax.
SECTION 4. Pursuant to Section 53325.1(a) of the California Government Code, the
City Council hereby affirms the following:
A. The proposed special tax to be levied within the District has not been precluded by
majority protest pursuant to Government Code Section 53324.
B. The facilities and services proposed to be funded with the special tax shall be those
described in subdivision D. of Section 3 of this Resolution, above.
C. The name, address, and telephone number of the office which will be responsible for
preparing annually a current role of special tax levy obligation by assessor's parcel
number and which will be responsible for estimating future special tax levies pursuant
to Government Code Section 53340.1 is: City of West Covina City Engineer, 1444
W. Garvey Avenue, West Covina, CA 91790, (626) 939-8425; or his/her designee.
D. Upon recordation of a notice of special tax lien pursuant to Section 33114.5 of the
' Streets & Highways Code, a continuing lien to secure each levy of the special tax
shall attach to all nonexempt real property in the District and this lien shall continued
CSS District - Reso re Formation of District (draft 3)
in force and effect until the special tax obligation is prepaid and permanently satisfied
and the lien is canceled in accordance with law or until collection of the tax by the
legislative body ceases.
E. The boundary map of the proposed District is recorded in Los Angeles County, book
190, page 51, in the Book of Maps of Assessments and Community Facilities
Districts, maintained in the Los Angeles County Recorder's Office.
SECTION 5. The City Council hereby determines that all proceedings for the formation
of the District were valid and in conformity with the requirements of Chapter 2.5 of Division 2,
Part 1, of Title 5 of the California Government Code.
APPROVED AND ADOPTED this 21St day of December 2004.
Mayor
ATTEST:
City Clerk
I, Sue Rush, Acting City Clerk of the City of West Covina, California, do hereby certify
that the foregoing Resolution was approved and adopted by the City Council at a regular meeting
held on the December 21, 2004.
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk
APPROVED AS TO FORM:
City Attorney
Attachments: Exhibits A and B
CSS District - Reso re Formation of District (draft 3)
EXHIBIT A
PROPOSED B❑UNDARIES OF
COMMUNITY FACILITIES DISTRICT NO. ONE
COASTAL SAGE AND SCRUB (CSS) COMMUNITY FACILITIES DISTRICT
CITY OF WEST C❑VINA
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA
/'�•,` 8735-001-901 •�••'
l ,
8735-001-900 �•�•.` •,��•'
- 8735-002 902 .0100 • '
•�••_•• -..000 8735-002-901
8735-001-903 ••��•• '
1 8735-001-902 .........
f8735 002-903 i
i
C- 8735-002-018 '
B735-001-009
Fri ;
8735-002-019
LEGEND
•��•• PROPOSED BOUNDARIES OF COMMUNITY FACILITIES
DISTRICT NO, ONE, COASTAL SAGE. AND SCRUB (CSS)
COMMUNITY FACILITIES DISTRICT
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF VEST COVINA ON OCTOBER 19, 2004
1 HEREBY CERTIFY THAT THE WITHIN MAP SHOVING THE PROPOSED BOUNDARIES OF THE COMMUNITY
FACILITIES DISTRICT NO. ONE, COASTAL SAGE AND SCRUB (CSS) COMMUNITY FACILITIES DISTRICT,
CITY OF VEST COVINA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY
COUNCIL OF THE CITY OF VEST COVINA AT A REGULAR MEETING THEREOF, HELD ON THE _ DAY
OF 2004, BY ITS RESOLUTION NO.
CITY CLERK
CITY OF VEST COVINA, CALIFORNIA
FILED THIS DAY OF 2004 AT THE HOUR OF _ O'CLOCK
—M. IN BOOK OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS
AT PAGE IN THE OFFICE OF THE COUNTY RECORDER IN THE COUNTY OF
LOS ANGELES, STATE OF CALIFORNIA,
FEE
NO.,
COUNTY RECORDER
COUNTY OF LOSA ANGELES, CALIFORNIA
r� •
REFERENCE THE LOS ANGELES COON
SHEET 1 OF 1
bWNDARY.DVG CAS 11/22/04
r
EXHIBIT B
"EXHIBIT B"
SPECIAL TAX REPORT: COMMUNITY FACILITIES DISTRICT NO. 1
COASTAL SAGE AND SCRUB (CSS.)
(Refer to Attachment No. 1)
ATTACHMENT NO.4
December 2, 2004
Shannon Yauchzee, Public Works Director/City Engineer
City of West Covina
1444 W. Garvey Ave.
P.O. Box 1440
West Covina, CA 91793
Re: CSS Community Facilities District
Dear Mr: Yauchzee:
This letter is submitted to the City of West Covina on behalf of BKK Corporation, in support of the
proposed Coastal Sage & Scrub (CSS) Community Facilities District.
Pursuant to BKK's Sixth Amendment to Purchase and Sale Agreement with the West Covina
Community Development Commission (the "Agreement"), BKK has agreed to support the formation of
a district according to the terms outlined in the Agreement. BKK staff has had the opportunity to
review the draft report on the proposed CSS Community Facilities District prepared by the City's_
consulting engineers, Berryman & Henigar, (the "Report") as well as the City's draft Resolution of
Formation for the proposed District (the "Resolution"), and we have determined that the proposed
CSS District is in conformance with the requirements of the Agreement. In the event of any future
discrepancies or disagreements between either the Report or the Resolution and the Agreement, the
Agreement will continue as the controlling document.
Thus, BKK hereby lodges its full support for the proposed CSS Community Facilities District.
Formation of this District will establish a means to finance habitat restoration and maintenance in and
around BKK's property in the City of West Covina. This habitat is important for preserving the
character of the hillside area for the benefit of our patrons and for residents of the City. The habitat is
also important for compliance with State and federal requirements which could otherwise disrupt our
business due the presence of the protected species.
To facilitate formation of the District and the levy of special taxes, BKK hereby waives any and all
requirements relating to an the election on levying of special taxes by the CSS Community Services
District, including but not limited to requirements for election time limits, analysis, and arguments, as
permitted by Sections 53326(a) and 53327(b) of the California Government Code. BKK hereby
consents to the holding of a special election on December 7, 2004, immediately following the City
Council's anticipated formation of the CSS District.
In addition, in lieu of having a BKK representative appear and vote at the December 7, 2004 election,
BKK hereby authorizes the Community Development Commission to cast all of BKK's votes in favor
of the levy of special taxes, provided that such levy is consistent with the descriptions provided in the
Berryman & Henigar report and as outlined in the draft Resolution of Formation for the CSS
Community Facilities District.
v/trulyours,
Kris L. nan
Treasurer
L1EST CO VIVA HEIGHTa7 . Cis l
17$42,SkMark Circle, Suite 200• Irvine C 9 651• Tel 1 949 2.51.8555, Fax..1.949.251.92M
December 2, 2004
Shannon Yauchzee, Public Works Director/City Engineer
City of West Covina
1444 W. Garvey Ave.
P.O. Box 1440
West Covina, CA 91793
Re: CSS Community Facilities District
Dear Mr. Yauchzee:
This letter is submitted to the City of West Covina can behalf of West Covina
Heights S.C,, LI_C, in support of the proposed Coastal Sage & Scrub (CSS)
Community Facilities District.
As you know, West Covina Heights S.C., LLC, is in escrow with the West Covina
Community Development Commission (the "CDC") for the sale of CDC property
located within the proposed CSS District area. While West Covina Heights S.C.,
LLC, is not yet the record owner of that property, we are nevertheless interested
in the establishment of the CSS District because we will be an owner following
the closing of escrow. In addition, pursuant to the Disposition and Development
Agreement between West Covina Heights S.C., LLC, and the CDC (the "DDA"),
West Covina Heights S.C., LLC, has agreed to support the formation of a district,
according to the terms outlined therein.
West Covina Heights S.C., LLC, staff have reviewed the report on the proposed
CSS Community Facilities District prepared by the City's consulting engineers,
Berryman & Henigar, dated December 7, 2004, as well as the City's draft
Resolution of Formation for the proposed District, and discussed same with the
CDC and we have determined that the proposed CSS District, as discussed, is in
conformance with the requirements of the DDA.
Thus, West Covina Heights S.C., LLC, hereby supports the proposed CSS
Community Facilities District. Formation of this District will help finance habitat
restoration and maintenance near the property that West Covina Heights S.C.,
LLC, is purchasing from the CDC, and West Covina Heights S.C., LLC, will
participate financially in its maintenance as provided for therein and consistent
with the DDA.
In addition, while West Covina Heights S.C., LLC, is not yet the record owner of
property within the proposed District's boundaries, West Covina Heights S.C.,
LLC, is interested in expediting the formation of the District, and thus supports in
principle not only its establishment, but also the levy of special taxes at rates
described in the Berryman & Henigar report and in the City's draft Resolution of
Formation, West Covina Heights S.C., LLC, also supports the waiving of all
requirements relating to an election on the levy of special taxes by the District,
and to the holding of the special election on December 7, 2004, immediately
following the City Council's anticipated formation of the CSS District.
Thank you.
Sincerely,
West Covina Heights S.C., LLC
D. ugl�s Gra , ident
ATTACHMENT 5
RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF WEST COVINA VOTING IN
FAVOR OF THE LEVY OF SPECIAL TAXES BY THE CSS
COMMUNITY FACILITIES DISTRICT AND WAIVING ALL
TIME LIMITS AND ELECTION REQUIREMENTS RELATING
THERETO
WHEREAS, on December 21, 2004, the City of West Covina adopted a Resolution of
Formation establishing a community facilities district known as the "Coastal Sage and Scrub
(CSS) Community Facilities District," pursuant to the Mello -Roos Community Facilities Act of
1982 (Gov't Code § 53311, et seq.);
WHEREAS, the Resolution of Formation set an election on the levy of special taxes by
the CSS Community Facilities District for December 21, 2004; and
WHEREAS, the Community Development Commission is the record owner of certain
real property within the proposed boundaries of the CSS Community Facilities District;
WHEREAS, the Governing Board of the Community Development Commission has
determined that it is in the Commission's interest that the CSS Community Facilities District
levy a special tax in order to finance the facilities and services proposed for said District;
WHEREAS, the Governing Board desires that the CSS Community Facilities District
levy of special taxes in the manner specified in the City Council's Resolution of Formation;
WHEREAS, BKK Corporation (`BKK") is also a landowner owning property within the
proposed boundaries of the CSS Community Facilities District, and has waived all election
requirements relating to the levy of special taxes by the District, and has authorized the
Community Development Commission to cast all of its votes in favor of such levy;
WHEREAS, the Governing Board, exercising independent judgment, has determined
that the project meets the criteria for a Class 7, Section 15307 Categorical Exemption, a Class 8,
Section 15308 Categorical Exemption, pursuant to the guidelines for implementation of the
California Environmental Quality Act ("CEQA" [Public Resources Code § 21000, et seq.];
"CEQA Guidelines" [Title 14, Div. 6, Chapt. 3 of the Cal. Code of Regulations]), and that the
proposed project will not have a significant adverse impact on the environment.
NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the Community
Development Commission of the City of West Covina as follows:
SECTION 1. The Community Development Commission hereby affirms the accuracy of
the foregoing recitals.,
SECTION 2. In support of Class 7 and 8 Categorical Exemptions for this action (14
CCR §§ 15307, 15308), the Governing Board hereby adopts the following findings:
A. The project will facilitate the establishment, maintenance, restoration and
enhancement of a natural resource, in that the project seeks to establish a community
facilities district which will impose a special tax for the purpose of funding habitat
restoration and maintenance programs pursuant to agreements reached with the U.S.
Fish & Wildlife Service and other federal and State agencies.
B. The formation of a community facilities district for such purpose is authorized by the
Mello -Roos Community Facilities Act of 1982 (Gov't Code § 53311, et seq.), and the
habitat restoration and maintenance programs have been approved by all requisite
federal and State authorities, and by the City Council of the City of West Covina.
SECTION 3. The Community Development Commission hereby waives any and all
requirements for notice and the conduct of the election on levying of special taxes by the CSS
Community Services District, including but not limited to requirements for election time limits,
ZARESOLUTION - 2004\CSS District - CDC Reso re Voting on District (CDC BKK).doc
11
analysis and arguments, as permitted by Sections 53326(a) and 53327(b) of the California
Government Code.
SECTION 4. The Community Development Commission hereby votes in favor of the
levying of special taxes by the CSS Community Facilities District (in the manner, specified in the
Resolution of Formation adopted by the West Covina City Council on December 21, 2004). The
Executive Director is directed to cast all such votes in favor of the levying of special taxes at this
or any subsequent proceeding, provided that any such votes shall be consistent with the
Resolution of Formation adopted by the West Covina City Council on December 21, 2004.
SECTION 5. The Community Development Commission hereby casts all votes of BKK
Corporation in favor of the levying of special taxes by the CSS Community Facilities District (in
the manner specified in the Resolution of Formation adopted by the West Covina City Council
on December 21, 2004). The Executive Director is directed to cast all such votes in favor of the
levying of special taxes at this or any subsequent proceeding, provided that any such vote shall
be consistent with the Resolution of Formation adopted by the West Covina City Council on
December 21, 2004.
APPROVED, PASSED AND ADOPTED this 21st day of December 2004.
ATTEST:
Commission Secretary
APPROVED AS TO FORM:
Commission Counsel
CITY OF WEST COVINA COMMUNITY
DEVELOPMENT COMMISSION
Chairman
ZARESOLUTION - 2004\CSS District - CDC Reso re Voting on District (CDC BKK).doc