1 Public Hearing – Formation of Community Facilities District No. 2017-1 (Public Services).

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MEETING DATE: April 17, 2018

 

STAFF REPORT

AGENDA ITEM: PUBLIC HEARJNG- FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SERVICES).

MEETING DATE: April 17, 2018

PREPARED BY: Willdan Financial Services

Randy Hatch, Contract City Planner

REVIEWED BY: Jose Antonio Ramirez, City Manager

RECOMMENDATION:

Staff recommends that the City Council open the public hearing for the purpose of receiving public testimony and property owner protests regarding the formation of the proposed CFD for public services. Once the public hearing has been closed, staff recommends that the City Council adopt two resolutions.

It is recommended that the City Council:

1. Open the public hearing and receive public testimony and property owner protests for the proposed formation of Community Facilities District No. 2017-1 (Public Services) and the authorization to levy a special tax within the territory proposed to be included in CFD 2017-1.

2. Adopt Resolution No. , “RESOLUTION OF FORMATION OF THE CITY COUNCIL OF

THE CITY OF LIVINGSTON TO ESTABLISH CITY OF LIVINGSTON COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SERVICES), TO ESTABLISH AN APPROPRIATIONS LIMIT THEREFOR, TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN, AND TO SUBMIT THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT AND THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS THEREOF.”

3. Adopt Resolution No. , “RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LIVINGSTON CALLING A SPECIAL ELECTION AND SUBMITTING TO THE QUALIFIED ELECTORS OF CITY OF LIVINGSTON COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SERVICES) PROPOSITIONS REGARDING THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT AND THE ANNUAL LEVY OF A SPECIAL TAX WITHIN THE COMMUNITY FACILITIES DISTRICT.”

The adoption of the resolutions are prerequisites to submitting the ballots to the property owners on the question of whether to levy the annual special tax within the proposed CFD.

BACKGROUND:

On October 3, 2017, the City Council adopted a resolution declaring its intention to establish a CFD and authorizing the imposition of a special tax to finance the impact of new development on Police Protection, Fire Suppression, and Paramedic Services, Park and Landscaping Services, and Street and Drainage Maintenance Services. In addition, the City Council set November 21, 2017, or as soon thereafter as practical, as the public hearing date to receive public testimony and protests over the formation of the proposed CFD. Due to the complexity of the proposed CFD, City staff postponed the public hearing to April 17, 2018, which is within six months of the originally proposed date, as provided in the Act. After

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receiving public testimony, the City Council will consider (1) adopting a Resolution of Formation to establish CFD 2017-1 and (2) calling a special election and submitting to the qualified electors propositions regarding the establishment of an appropriations limit and the annual levy of special tax within the proposed CFD.

Amendment of the Proposed Boundary

After the October 3, 2017, adoption of the resolution of intention to establish the subject CFD, City staff met to discuss and evaluate the comments offered by the property owner of the Lupita’s vehicle sales business located at 2235 F Street, Livingston, CA, (the northeast corner of the intersection of F Street and Hammatt Avenue). This business recently obtained (June 6, 2017) Site Plan and Design Review approval from the City Council to remodel and expand the sales office. As a condition of that approval, a requirement to annex into a new CFD the City was planning to form to pay for the costs of new development was included. The business and property owner noted that his remodeled and expanded sales office was not a “new” business requiring an increase in police, fire, or street/ drainage services from the City as his current sales office receives all those services and the remodel / expansion was relatively minor. He, therefore, felt his property should not be included in the new CFD. City staff felt the argument had merit, agreeing with the owner, and now does not recommend that the property be included within the CFD. Accordingly, the proposed boundary of the CFD needs to be amended and the attached Resolution amends the Boundary established by the October 3, 2017, Resolution of Intent.

Willdan Financial Services has prepared a CFD Report. This report provides a brief description of the Public Services, which will be required to adequately maintain the level of service in the City due to new development and the estimates of costs of providing those public services. In addition, the report includes a map showing the boundaries of the proposed CFD.

DISCUSSION:

After the adoption of the resolutions forming the proposed CFD and calling a special election, the City shall publish a notice of election in the newspaper, including a synopsis of the special tax measure. The notice shall state that the last day to submit arguments for or against the measure is within 10 days of the publication of the impartial analysis and that arguments are limited to 300 words. The impartial analysis and any arguments and rebuttals shall also be published in the newspaper, shall be made available for public inspection and shall be mailed, along with the ballots, to the property owners within the proposed CFD. The resolution declaring election results shall be adopted at the July 17, 2018, Council meeting and, if the ballot measure passes, an ordinance authorizing the levy of special taxes shall be adopted.

FISCAL IMP ACT:

None to City; costs are borne by property owners within the proposed CFD.

ATTACHMENTS:

1. Resolution 2018-

2. Resolution 2018-

3. CFD Report

RESOLUTION NO. 2018-

RESOLUTION OF FORMATION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON TO ESTABLISH CITY OF LIVINGSTON COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SERVICES), TO ESTABLISH AN APPROPRIATIONS LIMIT THEREFOR, TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN, AND TO SUBMIT THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT AND THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS THEREOF

WHEREAS, on October 3, 2017, the City Council adopted a resolution entitled “A Resolution of the City Council of the City of Livingston Declaring Its Intention to Establish a City of Livingston Community Facilities District No. 2017-1 (Public Services) and to authorize the levy of a special tax within City of Livingston Community Facilities District No. 2017-1 (Public Services)” (the “Resolution of Intention”), stating its intention to form Community Facilities District No. 2017-1 (Public Services) (the “CFD”), of the City 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”) to finance certain services to serve the CFD (the “Services”); and

WHEREAS, the Resolution of Intention, setting forth a description of the proposed boundaries of the CFD, Services to be financed by the CFD, including incidental expenses, and the rate and method of apportionment (the “Rate and Method”) of the special tax (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, the City Council has since amended the proposed boundaries; and

WHEREAS, the Resolution of Intention set November 21, 2017, or as soon thereafter as practical, as the date for a public hearing on the establishment of the CFD, the extent of the CFD, the furnishing of the Services within the CFD, and the proposed Rate and Method, and due to the complexity of the proposed CFD, the City postponed the public hearing to April 17, 2018, which is within six months of the originally proposed date, as provided in the Act; and

WHEREAS, a notice of the public hearing to be held on April 17, 2018 was published and mailed to the property owners within the CFD in accordance with the Act; and

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

WHEREAS, at the hearing all interested persons desiring to be heard for or against the establishment of the CFD, the extent of the CFD, the furnishing of the Services and the Rate and Method were heard and a full and fair hearing was held; and

WHEREAS, at the hearing evidence was presented to this Council on such matters before it, including a special report (the “CFD 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; and

WHEREAS, written protests with respect to the formation of the CFD, the furnishing of specified types of services and the Rate and Method have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the CFD or property owners of one-half (1/2) or more of the area of land within the CFD and not exempt from the proposed special taxes; and

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WHEREAS, the Special Tax proposed to be levied in the CFD to pay for the proposed services has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the CFD or the owners of one-half (1/2) or more of the area of land within the CFD and not exempt from the special taxes; and

WHEREAS, City Staff reviewed the proposed CFD formation and determined that forming the CFD and financing the Services, as described in Section 7 of this Resolution, does not constitute a project for purposes of the California Environmental Quality Act, commencing with Section 21000 of the California Public Resources Code and the California Environmental Quality Act Guidelines, Article 5 of Chapter 3 of Division 6 of Title 14 of the California Code of Regulations, (collectively “CEQA”). CEQA Guidelines Section 15378 specifically state that the term “project” for CEQA purposes does not include “continuing administrative or maintenance activities” or “[t]he creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.” (CEQA Guidelines §§ 15378 (b)(2) and (b)(4).); and

WHEREAS, the CFD is intended to fund police and fire protection services, parks, landscaping and lighting services, and drainage, streetlights, and street maintenance services attributable to new growth within the City; and

WHEREAS, in addition to the foregoing, because the project is a financing mechanism to fund ongoing administrative and maintenance operations, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, and therefore is exempt from CEQA’s provisions. (CEQA Guidelines §15061(b)(3).)

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LIVINGSTON HEREBY RESOLVES AS FOLLOWS:

1. Recitals Correct. The foregoing recitals are true and correct.

2. Public Hearing. On this date, pursuant to notice thereof duly given as provided by law, the City Council held a public hearing with respect to the establishment of the CFD and the annual levying of the Special Tax within the CFD to pay for the Services.

3. No Majority Protest. The proposed Special Tax to be levied within the CFD has not been precluded by majority protest pursuant to section 53324 of the Act.

4. Prior Proceedings Valid. All prior proceedings taken by this City Council in connection with the establishment of the CFD and the levy of the Special Tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act.

5. Name of the District. The community facilities district designated “City of Livingston Community Facilities District No. 2017-1 (Public Services) of the City is hereby established pursuant to the Act.

6. Boundaries of the District. The Resolution of Intention provides the boundaries of the territory proposed for inclusion in the CFD, as set forth in the map of the CFD heretofore recorded in the Merced County Recorder’s Office on October 10, 2017, in Book 14 at Page 35 as Instrument No. 2017032977 of Maps of Assessment and Community Facilities Districts. The City Council finds it necessary to amend the proposed boundaries as shown on the map now on file in the office of the City Clerk entitled “Amended

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Proposed Boundary of CFD 2017-1 (Public Services)” and is set forth in Exhibit “C” and directs the city clerk to record the amended proposed boundaries with the Merced County Recorder.

7. Description of Services. The 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.

8. Special Tax.

a. 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 CFD, is intended to be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this Council.

b. The proposed Rate and Method, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, is shown in Exhibit “B” attached hereto and hereby incorporated herein.

9. CFD Report. The CFD Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the CFD, and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings.

10. Increased Demands. It is hereby found and determined that the Services are necessary to meet increased demands placed upon the City, as the result of development occurring in the CFD.

11. Responsible Official. The City Manager, or his or her designee, of the City of Livingston, located at City Hall 1416 “C” St, Livingston, CA 95334, telephone number 209-398-1721, 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.

12. 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 CFD ceases.

13. Description of Voting Procedures. The voting procedures to be followed in conducting the special election (the “Special Election”) on the proposition of the annual levy of the Special Tax and on the proposition to establish an appropriations limit for the CFD, if the CFD is established, shall be as follows:

a. If at least 12 persons have been registered to vote within the territory of the CFD for each of the 90 days preceding the close of the public or protest hearing (the “protest hearing”), the vote in the Special Election shall be by the registered voters of the CFD with each voter having one vote. In that event, the Special Election shall be conducted by the City Clerk, and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the Act and pursuant to the provisions of the California Elections Code governing elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots for the Special Election shall be distributed to the qualified electors of the CFD by mail with return postage prepaid or by personal service, and the Special Election shall be conducted as a mail ballot election.

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b. If 12 persons have not been registered to vote within the territory of the CFD for each of the 90 days preceding the close of the protest hearing, the vote in the Special Election is to be by the landowners of the CFD, with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns within the CFD, the Special Election shall be conducted by the City Clerk pursuant to Section 53326 of the Act as follows:

(i) The Special Election shall be held on the earliest date, following the adoption by the City Council of this Resolution and a resolution calling the Special Election, to submit to the qualified electors of the CFD the propositions with respect to: (i) the levy of Special Tax to finance the Services and (ii) the establishment of an appropriations limit for the CFD.

(ii) Pursuant to said Section 53326, the Special Election may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the CFD waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent and the Clerk concurs in such earlier election date as shall be consented to by the qualified electors.

(iii) Pursuant to said Section 53326, ballots for the Special Election shall be distributed to the qualified electors by the Clerk by mail with return postage prepaid, or by personal service.

(iv) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, the City Clerk shall mail (or deliver) to each qualified elector an official ballot and shall also mail to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of this Resolution and the exhibits hereto; provided, however, that analysis and arguments regarding the ballot measure may be waived with the unanimous consent of all the landowners, and in such event a finding regarding such waivers shall be made in the resolution adopted by the City Council calling the Special Election.

(v) The official ballot to be mailed (or delivered) by the Clerk to each landowner shall have printed or typed thereon the name of the landowner and the number of votes to be voted by the landowner and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner is other than a natural person, that he or she is an officer of or other person affiliated with the landowner entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner, that in voting such official ballot it was his or her intent, as well as the intent of the landowner, to vote all votes to which the landowner is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner’s· land ownership within the CFD.

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(vi) The return identification envelope delivered by the Clerk to each landowner shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the Clerk.

(vii) The instruction to voter form to be mailed by the Clerk to the landowners shall inform them that the official ballots shall be returned to the Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted no later than 6:00 p.m. on the date of the Special Election, or immediately after the Resolution Calling the Special Election is adopted.

(viii) Upon receipt of the return identification envelopes, which are returned prior to the voting deadline on the date of the Special Election, the Clerk shall canvass the votes cast in the Special Election, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot.

14. Annexation Territory. Other property within the boundaries of the City may be annexed into the CFD pursuant to Article 3.5 of the Act.

15. Exempt Property. Except as provided in Section 53340.1 of the Act and except for properties that a local agency is a landowner of within the meaning of subdivision (f) of Section 53317 of the Act, pursuant to Section 53340 of the Act, properties of entities of the state, federal and local governments shall be exempt from the levy of the Special Tax. Reference is hereby made to the Rate and Method for a description of other properties or entities that are expressly exempted from the levy of the Special Tax.

16. Appropriations Limit. An appropriations limit for the CFD is hereby established, subject to voter approval, as an amount equal to all the proceeds of the Special Tax collected annually within such CFD and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population.

17. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby establishes the following accountability measures pertaining to the levy by the CFD of the Special Tax described in Section 8 above:

a. The Special Tax shall be levied for the specific purposes set forth in Section 7 hereof.

b. The proceeds of the levy of the Special Tax shall be applied only to the specific purposes set forth in Section 7 hereof.

c. The CFD shall establish an account or accounts into which the proceeds of such Special Tax shall be deposited.

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d. The City Manager, or his or her designee, acting for and on behalf of the CFD, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3.

18. CEQA. The City Council hereby finds that the CFD formation involves creation of a funding mechanism for certain ongoing service and maintenance activities that do not have any potential for significantly impacting the environment. Further, the City Council hereby finds that it can be seen with certainty that the proposed financing mechanism and services funded thereby have no possibility of resulting in a significant effect on the environment. Therefore, the City Council, in its independent judgment, finds that the project is exempt from CEQA, and hereby directs City Staff to prepare and file a Notice of Exemption with the County Clerk within five days of adoption of this Resolution pursuant to Section 21152 of the California Public Resources Code and Section 15062 of the CEQA Guidelines.

19. Effective Date. This resolution shall take effect upon its adoption.

The City Clerk shall certify to the adoption of this Resolution by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Jim Soria, Mayor

of the City of Livingston

ATTEST:

I, hereby certify that the foregoing Resolution was regularly introduced, passed, and adopted at a regular meeting of the City Council of the City of Livingston, this 17th day of April 2018.

Antonio Silva, City Clerk of the City of Livingston

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EXHIBIT A

CITY OF LIVINGSTON COMMUNITY FACILITIES DISTRICT NO. 2017-1

(PUBLIC SERVICES) DESCRIPTION OF SERVICES

The services (the “Services”) described below are proposed to be financed by Community Facilities District No. 2017-1 (Public Services) (the “CFD”) of the City of Livingston (the “City”). The Services are in addition to those provided in the territory of the CFD before establishing the CFD. The Services do not supplant services already available within the territory of the CFD before establishing the CFD. Services are:

111 Police Protection, Fire Suppression, and Paramedic Services

• Park and Landscaping Services

• Street and Drainage Maintenance Services

Police Protection, Fire Suppression, and Paramedic Services means the estimated and reasonable costs of providing Police, Fire and Paramedic services, including but not limited to (i) the costs of contracting for police, fire and paramedics, (ii) the salaries and benefits of City staff, if the City directly provides Police, Fire and/or Paramedic Services, (iii) the expense related to equipment, apparatus, and supplies related to these services and authorized by the Act, and (iv) City overhead costs associated with providing such services within the CFD.

Park and Landscaping Services means the labor, material, administration, personnel, equipment, contract services, and utilities (i.e., water and power) necessary to maintain landscaping improvements within, and associated with, the CFD, including trees, turf, ground cover, shrubs, weed removal, irrigation systems, sidewalk, drainage facilities, lighting, signs, monuments, graffiti removal, walkways, and associated appurtenant facilities located within, or associated with, the CFD and reasonable costs of providing park maintenance, including but not limited to (i) the costs of contracting for park maintenance services, including trees, plant material, restrooms, irrigation systems, sidewalks, drainage facilities, weed control, lighting, and parking lot maintenance, (ii) the salaries and benefits of City staff, including maintenance staff, that directly provide park maintenance services, (iii) the expense related to equipment, apparatus, and supplies related to these services and authorized by the Act, (iv) utility costs such as water, sewer, lighting and power and (v) City overhead costs associated with providing such services within the CFD.

Street and Drainage Maintenance Services means the labor, material, administration, personnel, equipment and utilities necessary to maintain streets, streetlights, drainage, storm systems, and associated appurtenant facilities within, and associated with, the CFD, including City overhead costs associated with providing such services within the CFD.

The cost of the Services shall include incidental expenses, including the costs associated with forming the CFD, determination of the amount of the Special Taxes, collection of the Special Taxes, payment of the Special Taxes, costs incurred in order to carry out the authorized purposes of the CFD.

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EXHIBITB

City of Livingston Community Facilities District No. 2017-1

(Public Services)

Rate and Method of Apportionment

A Special Tax of City of Livingston Community Facilities District No. 2017-1 (Public Services) (“CFD”) shall be levied on all Assessor’s Parcels within the CFD and collected each Fiscal Year commencing in Fiscal Year 2018-19 in an amount determined by the Special Tax Administrator through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

“Act” means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California, as amended.

“Administrative Expenses” means the following actual or reasonably estimated costs incurred by the City as administrator of the CFD, provided that such costs are directly related to administration of the CFD: costs to determine, levy and collect the Special Taxes, including an allocable share of the salaries and benefits of City employees, the fees of consultants, and legal counsel; the costs of collecting installments of the Special Taxes upon the general tax rolls, including any charges levied by County departments; and the preparation of required reports and any other costs required to administer the CFD in accordance with the Act, as determined by the City.

“Annual Escalation Factor” means the greater of (i) two percent (2%) or (ii) the annual percentage increase in the Consumer Price Index for All Urban Consumers for San Francisco-Oakland-Hayward Area as determined by the Bureau of Labor Statistics for the twelve months ending the previous December. If said index is discontinued, then an alternative index may be used as determined by the Special Tax Administrator.

“Assessor’s Parcel” means a Lot or parcel of land shown on an Assessor’s Parcel Map with a parcel number assigned by the Assessor of the County that corresponds to a number shown on the County Assessor’s roll.

“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel number.

“Attached Residential” means an Assessor’s Parcel within the CFD for which a

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Building Permit has been issued for purposes of constructing a residential structure or structures sharing common walls and/or common spaces, qualified as Attached Residential at the City’s discretion, consisting of two or more Dwelling Units, including, but not limited to duplexes, triplexes, and apartment units, as of May 1st preceding the Fiscal Year in which the Special Tax is being levied.

“Base Year” means Fiscal Year ending June 30, 2019.

“Building Permit” means a permit issued for new construction of a residential or non­ residential structure. For purposes of this definition, “Building Permit” shall not include permits issued solely for grading, utility improvements, or other such improvements that are constructed and installed and are not intended for human occupancy.

“CFD” means City of Livingston Community Facilities District No. 2017-1 (Public Services).

“City” means the City of Livingston.

“City Clerk” means the City Clerk for the City or his or her designee.

“City Engineer” means the City Engineer for the City or his or her designee.

“Commercial Property” means an Assessor’s Parcel of Developed Property for which a building permit(s) has been issued for purposes of constructing non-residential property for any commercial use, including related parking, including hotels, motels, and Office Property, and all other property considered commercial, as coded by the County’s assessor or as determined by the City, as of May 1st preceding the Fiscal Year in which the Special Tax is being levied.

“Council” means the City Council of the City, acting as the legislative body of the CFD.

“County” means the County of Merced, California.

“Detached Residential” means an Assessors’ Parcel within the CFD for which a Building Permit has been issued for purposes of constructing a residential structure consisting of one single-family detached Dwelling Unit, including Mobile Homes, as of May 1st preceding the Fiscal Year in which the Special Tax is being levied.

“Developed Property” means, for Detached Residential, Attached Residential, Commercial Property, or Industrial/Business Park/Agricultural Processing Property, an Assessor’s Parcel within the CFD for which a Building Permit was issued on or prior to May 1st preceding the Fiscal Year in which the Special Tax is being levied, based on the number of Dwelling Units or Lot Area, as applicable, per City or County records for that Assessor’s Parcel. “Developed Property means”, for Farm Property, an Assessor’s Parcel within the CFD for which the City has granted permission to allow farming operations or for which Land Use Class of Farm Property is designated at the City’s

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discretion on or prior to May 1st preceding the Fiscal Year in which the Special Tax is being levied, based on the Lot Area, as applicable, per City or County records for that Assessor’s Parcel.

“Dwelling Unit” means each separate residential unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential units, in which a person or persons may live, which comprises an independent facility and is not considered to be for non-residential use only, and as defined in the City of Livingston’s Municipal Code.

“Exempt Property” means for each Fiscal Year, an Assessor’s Parcel within the CFD not subject to the Special Tax. Exempt Property includes: (i) Public Property, (ii) Property Owner Association Property, (iii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement such as railroad parcels, roads and landscape lots, (iv) Undeveloped Property and (v) property reasonably designated by the City or Special Tax Administrator as Exempt Property due to deed restrictions, conservation easement, or similar factors that may make development of such property impractical for human occupancy.

“Farm Property” means property used to grow crops or raise animals, which county use code starts with 07 or the City designates as Farm Property.

“Final Map” means an Assessor’s Parcel Map, a Final Subdivision Map, parcel map, condominium plan, or any other map functionally considered to be an equivalent development map that has been recorded in the Office of the County Recorder.

“Fiscal Year” means the period starting July 1 and ending on the following June 30.

“Industrial/ Institutional/ Agricultural Processing Property” means an Assessor’s Parcel of Developed Property for which a building permit(s) has been issued for purposes of constructing non-residential property for any allowable industrial, institutional, or agricultural use, including related parking, and all other property considered industrial or institutional, including Medical Property, private schools and daycares, or used for agricultural processing, which is not a Commercial Property or Office Property, as coded by the County’s assessor or as determined by the City, as of May pt preceding the Fiscal Year in which the Special Tax is being levied.

“Land Use Class” means any of the classes listed in Table 1 and defined herein. “Lot” means an individual legal lot created by an Assessor’s Parcel Map or Final Map. “Lot Area” means the gross horizontal area of the Lot or Assessor’s Parcel.

“Maximum Special Tax” means the maximum Special Tax, determined in accordance with Section C below, that can be levied by the CFD in any Fiscal Year on any Assessor’s Parcel.

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“Medical Property” means an Assessor’s Parcel of Developed Property for which a building permit(s) has been issued for purposes of constructing non-residential property for any medical use, including related parking, including hospitals, convalescent homes, medical property, dental property, clinics, medical offices, and dental offices, and all other property used for medical purposes, which is not a Commercial Property or Office Property, as coded by the County’s assessor or as determined by the City, as of May 1st preceding the Fiscal Year in which the Special Tax is being levied,

“Mixed-Use Property” means an Assessor’s Parcel of Developed Property containing or planned for containing a structure or structures that consists of one or more Dwelling Units, but also has dedicated space for Non-Residential use.

“Mobile Home” means a vehicle designed and equipped for human habitation as defined by the California Health & Safety Code§ 18008.

“Non-Residential” means an Assessor’s Parcel of Taxable Property within the CFD for which a Building Permit has been or could be issued for a non-residential use, including Commercial Property and Industrial/ Institutional/ Agricultural Processing Property or which the City may designate as Farm Property.

“Office Property” means an Assessor’s Parcel of Developed Property for which a building permit(s) has been issued for purposes of constructing non-residential property for office use other than Medical Property, including related parking, including savings and loans property, property for legal assistance, and other office buildings, as determined by the City, as of May 1^st preceding the Fiscal Year in which the Special Tax is being levied.

“Park” means a public park, open space, trail, dog park dedicated to and/or managed by the City of Livingston.

“Park and Landscaping Maintenance” means the labor, material, administration, personnel, equipment, contract services, and utilities (i.e., water and power) necessary to maintain landscaping improvements within, and associated with, the CFD, including trees, turf, ground cover, shrubs, weed removal, irrigation systems, sidewalk, drainage facilities, lighting, signs, monuments, graffiti removal, walkways, and associated appurtenant facilities located within, or associated with, the CFD and reasonable costs of providing park maintenance, including but not limited to (i) the costs of contracting for park maintenance services, including trees, plant material, restrooms, irrigation systems, sidewalks, drainage facilities, weed control, lighting, and parking lot maintenance, (ii) the salaries and benefits of City staff, including maintenance staff, that directly provide park maintenance services, (iii) the expense related to equipment, apparatus, and supplies related to these services and authorized by the Act, (iv) utility costs such as water, sewer, lighting and power and (v) City overhead costs associated with providing such services within the CFD.

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“Park and Landscaping Maintenance Requirement” means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Park and Landscaping Maintenance applicable to the CFD for such Fiscal Year.

“Police, Fire, and/or Paramedic Services” means the estimated and reasonable costs of providing Police Services, Fire Suppression Services, and/or Paramedic services including but not limited to (i) the costs of contracting for police, :firefighters, and paramedics, (ii) the salaries and benefits of City staff, if the City directly provides Police Services, (iii) the expense related to equipment, apparatus, and supplies related to these services and authorized by the Act, and (iv) City overhead costs associated with providing such services within the CFD.

“Police, Fire, and/or Paramedic Services Requirement” means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Police, Fire, and/or Paramedic Services applicable to the CFD for such Fiscal Year.

“Property Owner Association Property” means for each Fiscal Year any property within the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder, to a property owner association, including any master or sub-association, which consists of property owned in common by owners of surrounding properties and it is intended for use for community purposes.

“Proportionately” means, for Taxable Property, that the ratio of the actual Special Tax levied per Assessor’s Parcel of Taxable Property to the Maximum Special Tax per Assessor’s Parcel of Taxable Property is equal for all Assessor’s Parcels of Taxable Property.

“Public Property” means for each Fiscal Year any property within the CFD that is, or is expected to be, used for rights-of-way, parks, public schools or any other public purpose determined by the Special Tax Administrator or is owned by or irrevocably offered for dedication to the federal government, the State, the County, the City or any other public agency.

“Reserve Fund” means a fund that shall be created and maintained for the CFD for each Fiscal Year to provide necessary cash flow to cover maintenance and operational cost overruns, and delinquencies in the payment of Special Taxes.

“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement, and shall include Special Taxes levied or to be levied under Sections C and D, below.

“Special Tax Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.

“Special Tax Requirement” means that amount required in any Fiscal Year for the CFD

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to pay for (i) the Park and Landscaping Maintenance Requirement, (ii) the Police, Fire, and/or Paramedic Services Requirement, (iii) the Street and Drainage Maintenance Requirement, (iv) Administrative Expenses of the CFD, and (v) and any amounts required to establish or replenish a Reserve Fund for that Fiscal Year.

“State” means the State of California.

“Street and Drainage Maintenance” means the labor, material, administration, personnel, equipment and utilities necessary to maintain streets, streetlights, drainage, storm systems, and associated appurtenant facilities within, and associated with, the CFD, including City overhead costs associated with providing such services within the CFD.

“Street and Drainage Maintenance Requirement” means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Street and Drainage Maintenance applicable to the CFD for such Fiscal Year.

“Taxable Property” means all Assessor’s Parcels of Developed Property within the CFD that are not Exempt from the Special Tax pursuant to law or as defined herein.

“Undeveloped Property” means, for each Fiscal Year, an Assessor’s Parcel within the CFD for which a Building Permit has not been issued, or the City has not designated as Farm Property, on or prior to May 1st preceding the Fiscal Year in which the Special Tax is being levied and is not classified as Property Owner Association Property or Public Property, including an Assessor’s Parcel that is designated as a remainder parcel by any final documents and/or maps available to the Special Tax Administrator.

B. ASSIGNMENT TO LAND USE CATEGORIES

For each Fiscal Year, commencing with Fiscal Year 2018-19, using the definitions above, each Assessor’s Parcel within the CFD shall be classified as Taxable Property or Exempt Property. In addition, each Fiscal Year, beginning with Fiscal Year 2018-19, Taxable Property shall be further classified as Attached Residential, Detached Residential, Mixed­ Use Property, Commercial Property, or Industrial/ Institutional/ Agricultural Processing Property.

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C. MAXIMUM SPECIAL TAX RATE

1. Developed Property

Table 1

Maximum Special Tax for Developed Property Community Facilities District No. 2017-1 (Public Services) Fiscal Year 2018-19

Land Use Class	Description	Maximum Special Tax
1	Detached Residential	$869.00 per Dwelling Unit
2	Attached Residential	$651.00 per Dwelling Unit
3	Mixed-Use Property	Sum of Maximum Special Tax for each applicable Land Use Class
4	Commercial Property	$0.154 per square foot of Lot Area
5	Industrial/ Institutional/ Agricultural Processing	$0.110 per square foot of Lot Area
6	Farm Property	$0.008 per square foot of Lot Area
7	Medical Property	$0.110 per square foot of Lot Area
8	Office Property	$0.154 per square foot of Lot Area

For each Fiscal Year following the Base Year, the Maximum Special Tax rates in Table 1 shall be increased by the Annual Escalation Factor. A different Maximum Special Tax may be added to the CFD as a result of future annexations or if future annexations involve a new Land Use Class.

2. Exempt Property

No Special Tax shall be levied on Exempt Property as defined in Section A.

For each Fiscal Year, if the use or ownership of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in Section A, therefore making such Assessor’s Parcel no longer eligible to be classified as Exempt Property, such Assessor’s Parcel shall be deemed to be Taxable Property and shall be taxed pursuant to the provisions of Section C.l.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing with Fiscal Year 2018-19, and for each subsequent Fiscal Year, the Special Tax Administrator shall calculate the Special Tax Requirement based on the definitions in Section A and levy the Special Tax as follows until the amount of the Special Tax levied equals the Special Tax Requirement:

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The Special Tax shall be Proportionately levied each Fiscal Year on each Assessor’s Parcel of Developed Property up to 100% of the applicable Maximum Special Tax. The applicable Maximum Special Tax shall be based on the Developed Property’s classification as Detached Residential, Attached Residential, Mixed-Use Property, Commercial, Industrial/ Institutional/ Agricultural Processing Property, or Farm Property.

E. APPEALS

Any landowner who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor’s Parcel is in error shall first consult with the Special Tax Administrator regarding such error. If following such consultation, the Special Tax Administrator determines that an error has occurred, the Special Tax Administrator may amend the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any, the landowner believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor’s Parcel. Upon the receipt of any such written notice, the City Clerk shall forward a copy of such notice to the City Finance Director, who shall either

(1) refer the matter to the City’s existing hearing board for administrative appeals; or

(2) establish as part of the proceedings and administration of the CFD, a special three­ member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The hearing board or Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner appeals, as herein specified. The decision of the hearing board or Review/Appeal Committee shall be final and binding as to all persons.

F. MANNER OF COLLECTION

Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided however that (i) the CFD may directly bill the Special Tax, and (ii) the CFD may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the City Council.

G. TERM OF SPECIAL TAX

Taxable Property in the CFD shall remain subject to the Special Tax in perpetuity or until the City Council takes appropriate actions to terminate the Special Tax pursuant to the Act.

RESOLUTION NO. 2018-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON CALLING A SPECIAL ELECTION AND SUBMITTING TO THE QUALIFIED ELECTORS OF CITY OF LIVINGSTON COMMUNITY FACILITIES DISTRICT NO. 2017-1 (PUBLIC SERVICES) PROPOSITIONS REGARDING THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT AND THE ANNUAL LEVY OF A SPECIAL TAX WITHIN THE COMMUNITY FACILITIES DISTRICT

WHEREAS, on April 17, 2018, the City Council (the “City Council”) of the City of Livingston (the “City”) held a public hearing (the “Public Hearing”) on the establishment of Community Facilities District No. 2017- 1 (Public Services) (the “District”); and

WHEREAS, following the Public Hearing, the City Council adopted a resolution entitled “Resolution of Formation of the City Council of the City of Livingston to Establish City of Livingston Community Facilities District No. 2017-1 (Public Services), to Establish an Appropriations Limit therefor, to Authorize the Levy of a Special Tax therein, and to Submit the Establishment of an Appropriations Limit and the Levy of Special Taxes to the Qualified Electors Thereof’ (the “Resolution of Formation”) ordering the formation of the District, and subject to approval of the qualified electors of the District, authorizing the levy of a special tax (the “Special Tax”) on property within the District and establishing an appropriations limit for the District, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the “Act”); and

WHEREAS, pursuant to the Resolution of Formation, the propositions relating to the levy of the Special Tax and the establishment of an appropriations limit will be submitted to the qualified electors of the District as required by the Act; and

WHEREAS, the City Clerk has advised the City Council that he has received a statement from the Registrar of Voters of the County of Merced that less than twelve (12) persons are registered to vote in the territory of the District; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LIVINGSTON HEREBY RESOLVES AS FOLLOWS:

SECTION 1. Recitals. The above recitals are all true and correct.

SECTION 2. Call of Election. The City Council hereby calls and schedules a special election for July 17, 2018, to consider the proposition described in Section 3 below.

SECTION 3. Proposition.

a. Pursuant to Sections 53325.7, 53326 and 53353.5 of the Act, the proposition relating to the levy of the Special Tax and the proposition relating to the establishment of the appropriations limit shall be combined into one ballot proposition and shall be submitted to the qualified electors of the District as required by the Act.

b. If the combined proposition for the levy of the Special Tax and the establishment of the appropriations limit receives the approval of more than two-thirds of the votes cast on the

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proposition, the Special Tax may be levied and the appropriations limit may be established as provided for in the Resolution of Formation.

c. The amount, method of collection and purpose of the Special Tax are specified in the Resolution of Formation, on file in the office of the City Clerk and by this reference incorporated herein.

d. The proposition to be submitted to the voters of the District at such special election shall be as follows:

MEASURE: Shall special taxes with a rate and method of apportionment as set forth in Exhibit “B” to the resolution entitled “Resolution of Formation of the City Council of the City of Livingston to Establish City of Livingston Community Facilities District No. 2017-1 (Public Services), to Establish an Appropriations Limit therefor, to Authorize the Levy of a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and the Levy of Special Taxes to the Qualified Electors Thereof’ (the “Resolution of Formation”) be levied annually on taxable property within City of Livingston Community Facilities District No. 2017-1 (Public Services), to pay for police and fire protection services, parks, lighting, and landscaping maintenance, and streets and drainage maintenance, and incidental expenses related thereto, and shall the appropriations limit be established, all as set forth in the Resolution of Formation.

SECTION 4. Electors Determined. The City Council finds that 12 persons have not been registered to vote within the territory of the District for each of the 90 days preceding the close of the Public Hearing and that pursuant to Section 53326 of the Act, the vote in the special election called by this Resolution shall be by the landowners of the District whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within the District which would be subject to the proposed special taxes if they were levied at the time of the election.

SECTION 5. Conduct of Election. Except as otherwise provided in Section 6 hereof, the special election shall be conducted by the City Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, and in particular the provisions of Division 4 (commencing with Section 4000), of that Code, insofar as they may be applicable.

SECTION 6. Election Procedures.

a. The procedures to be followed in conducting the special election on the proposition described in Section 3 shall be as provided in the Resolution of Formation. It is hereby acknowledged that the City Clerk has on file a copy of the Resolution of Formation.

SECTION 7. Effective Date. This resolution shall take effect upon its adoption.

The City Clerk shall certify to the adoption of this Resolution by the following vote: AYES:

NOES:

ABSENT:

ABSTAIN:

Jim Soria, Mayor

of the City of Livingston

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I, hereby certify that the foregoing Resolution was regularly introduced, passed, and adopted at a regular meeting of the City Council of the City of Livingston, this 17th day of April 2018.

Antonio Silva, City Clerk of the City of Livingston