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HomeMy WebLinkAboutD-3 Staff Report - Resolution of Intention CFD 2005-1 AnnexationPUBLIC HEARING/SCHEDULED ITEM D-3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: NOVEMBER 6, 2023 SUBJECT: CONSIDERATION OF ADOPTION OF A RESOLUTION CALLING A SPECIAL ELECTION AND A RESOLUTION DECLARING ELECTION RESULTS RELATED TO IMPROVEMENT AREA NO. 3 OF THE COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE) OF THE CITY OF AZUSA BACKGROUND: The City Council previously formed the Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa (the “CFD”), all pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”). In connection therewith, the City Council called an election of the landowners within the territory of the CFD regarding the levy of special taxes therein. The landowners approved the formation of the CFD and levy of special taxes with over a two-thirds majority vote of the voters voting. The City Council received a written petition from Rosedale Land Partners II LLC, a Delaware limited liability company (the “Developer”), the owner of certain real property within the City, requesting that such property be annexed to the CFD in newly-designated Improvement Area No. 3 (“Improvement Area No. 3”) so that such property may receive the benefit of services that will be financed by the annual levy of special taxes on said property for the purpose of financing police protection, fire protection and suppression services, maintenance of park, parkways and open space, and any other services permitted to be financed pursuant to the Act (the “Services”); and agreeing to the annual levy of special taxes on said property sufficient to pay the costs of such Services and costs incidental thereto. On September 18, 2023 the City Council adopted Resolution No. 2023-C55, a resolution of intention to designate and annex territory to Improvement Area No. 3 of the CFD pursuant to Section 53339.2 of the California Government Code, determining that the public convenience and necessity require that certain property to be annexed to Improvement Area No. 3 of the CFD and containing all of the matters prescribed by Section 53339.3 of said Code, and fixing 7:30 p.m. on November 6, 2023 in the Azusa Civic Auditorium, 213 E. Foothill Blvd., Azusa, CA 91702 or via teleconference as directed by the City due to COVID-19 social distancing guidelines, as the time and place for a hearing upon said resolution. Approved City Council November 6, 2023 Calling Special Election and Election Results for IA3 of the CFD No. 2005-1 (Rosedale) November 6, 2023 Page 2 RECOMMENDATIONS: Staff recommends the City Council take the following actions: 1) Open the Public Hearing, receive public testimony, close the Public Hearing; 2) Adopt Resolution No. 2023-C64, calling a Special Election and Submitting to the Qualified Electors of Territory Proposed to be Annexed to the Designated Improvement Area No. 3 of Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa the Question of Levying Special Taxes within that Territory (Annexation No. 1); 3) Adopt a Resolution No. 2023-C65, declaring Election Results for the Annexation of Territory to the Designated Improvement Area No. 3 of Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa (Annexation No. 1); and 4) Waive further reading, read by title only, and introduce first reading of Ordinance No. 2023-06, authorizing the Levy of Special Taxes in a Community Facilities District, including Certain Annexation Territory identified as Annexation No 1, into Improvement Area No. 3 of the Community Facilities District No. 2005-1 (Rosedale). ANALYSIS: On November 6, 2023, this City Council will hold a public hearing regarding the annexation of territory into Improvement Area No. 3 of the CFD. If a majority of the landowners within the boundaries of Improvement Area No. 3 of the CFD do not register written or oral protests, then the City Council may consider adopting the following resolution: Resolution No. 2023-C64 (the “Resolution Calling Election”), schedules the elections for the annexation of territory into Improvement Area No. 3 of the CFD with respect to the annual levy of special taxes to pay for the Services. The City Clerk and the Developer have consented to hold the election on November 6, 2023. The County of Los Angeles Registrar of Voters has certified that there are no registered voters within the boundaries of the CFD. Following the adoption of the Resolution Calling Election, the City Clerk will conduct the election and declare the election results. Following the election, the City Council may adopt Resolution No. 2023-C65 (the “Resolution Declaring Results”) within the CFD, which declares the results of the election. If the results are in favor of annexing territory within Improvement Area No. 3 of the CFD, the City Council may waive the full reading of the Ordinance Levying Special Taxes (the “Ordinance”), which authorizes the levy of special taxes within the CFD in full and call for the first reading of such Ordinance by title only. Calling Special Election and Election Results for IA3 of the CFD No. 2005-1 (Rosedale) November 6, 2023 Page 3 FISCAL IMPACT: The annexation of the property to the CFD will allow for the levy of special taxes on the property. If levied at the maximum authorized rate, for FY 2024/25 the gross special tax amount for Improvement Area No. 3 will be $18,768 and in accordance with the Rate & Method of Apportionment (i.e. Special Tax Formula), this amount will increase two-percent (2%) annually until such time as it is determined that the levy of such special taxes is not required to fund services. The tax revenues offset the cost the City pays for services such as police protection, fire protection and suppression services, maintenance of park, parkways and open space, and any other allowable services. Prepared By: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: 1. Resolution No. 2023-C64 2. Resolution No. 2023-C65 3. Draft Ordinance No. 2023-06 RESOLUTION NO. 2023-C64 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, CALLING A SPECIAL ELECTION AND SUBMITTING TO THE QUALIFIED ELECTORS OF TERRITORY PROPOSED TO BE ANNEXED TO THE DESIGNATED IMPROVEMENT AREA NO. 3 OF COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE) OF THE CITY OF AZUSA THE QUESTION OF LEVYING SPECIAL TAXES WITHIN THAT TERRITORY (ANNEXATION NO. 1) WHEREAS, the City Council (the “City Council”) of the City of Azusa (the “City”) has heretofore conducted proceedings for the establishment of and has established Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa, County of Los Angeles, State of California (the “Community Facilities District”) and designated Improvement Area No. 1 and Improvement Area No. 2 therein for the purpose of, among other things, levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”) to annex territory to the Community Facilities District by complying with the procedures set forth in said Article 3.5; and WHEREAS, on September 18, 2023 the City Council adopted Resolution No. 2023-C55, a resolution of intention to designate and annex territory to Improvement Area No. 3 of the Community Facilities District (“Improvement Area No. 3”) pursuant to Section 53339.2 of the California Government Code, determining that the public convenience and necessity require that certain property to be annexed to Improvement Area No. 3 of the Community Facilities District and containing all of the matters prescribed by Section 53339.3 of said Code, and fixing 7:30 p.m. on November 6, 2023 in the Azusa Civic Auditorium, 213 E. Foothill Blvd., Azusa, CA 91702 or via teleconference as directed by the City due to COVID-19 social distancing guidelines, as the time and place for a hearing upon said resolution; and WHEREAS, pursuant to said resolution, the City Clerk has published and mailed notice of the time and place of said hearing as required by Section 53339.4 of said Code; and WHEREAS, on November 6, 2023, at the time and place of said hearing, the City Council afforded all interested persons for or against the annexation of said property to the Community Facilities District an opportunity to present testimony and to protest against the proposed annexation of said property to Improvement Area No. 3 of the Community Facilities District, and no protests, either oral or in writing, were received; and Attachment 1 WHEREAS, pursuant to Section 53339.7 of said Code, the City Council may now submit the question of levying a special tax within the territory proposed to be annexed to Improvement Area No. 3 of the Community Facilities District to the qualified electors within that territory. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Findings. The City Council finds that: (i) the foregoing recitals are correct; (ii) less than twelve (12) persons have been registered to vote within the territory proposed to be annexed to Improvement Area No. 3 of the Community Facilities District during the ninety (90) days preceding the close of the public hearing on November 6, 2023; (iii) pursuant to Section 53326 of the California Government Code, as a result of the findings set forth in clause (ii) above, the vote in the special election called by this resolution shall be by the landowners of the territory proposed to be annexed to Improvement Area No. 3 of the Community Facilities 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 (1) vote for each acre, or portion thereof, which he or she owns within the said territory which would be subject to the proposed special taxes if they were levied at the time of the election; and (iv) pursuant to said Section 53326, the special election must be held at least ninety (90) days, but not more than one hundred eighty (180) days following the date of the adoption of this resolution, unless such time periods are waived with the unanimous waiver of the qualified electors. All of the qualified electors in the territory to be annexed waived the time limits and election formalities of the special election. SECTION 2. Call of Election. The City Council hereby calls and schedules a special election for November 6, 2023 on the proposition with respect to the annual levy of special taxes within the territory proposed to be annexed to Improvement Area No. 3 of the Community Facilities District for paying the cost of the services to be provided within and for the benefit of the territory proposed to be annexed to Improvement Area No. 3 of the Community Facilities District. SECTION 3. Propositions. The propositions to be submitted to the voters of Improvement Area No. 3 of the Community Facilities District at such special election shall be as follows: PROPOSITION A Shall Proposition A authorizing the annual levy of special taxes on taxable property in the territory proposed to be designated and annexed to Improvement Area No. 3 of Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa, County of Los Angeles, State of California, to pay for costs and services described in Resolution No. 2023-C55 and to pay costs associated with the determination of the amount of and the levy and collection of the special taxes at the special tax rates as set forth in Exhibit “B” to Resolution No. 2023-C55 be approved? SECTION 4. Conduct of Election. Except as otherwise provided in Section 5 hereof, said election shall be conducted by the City Clerk of the City pursuant to the California Elections Code governing mail ballot elections of cities, and in particular, the provisions of Division 4 (commencing with Section 4000) of said Code, insofar as they may be applicable. SECTION 5. Election Procedures. The procedures to be followed in conducting the special election on the levy of Special Taxes to pay the annual costs of the services to the qualified electors of the territory to be annexed to Improvement Area No. 3 of the Community Facilities District (the “Special Election”) shall be as follows: (a) Pursuant to said Section 53326 of the California Government Code, ballots for the special election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (b) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in the form attached hereto as Exhibit “A,” and shall also mail or deliver 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 Resolution No. 2023-C55; provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners. (c) The official ballot to be mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter 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-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter 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-voter's land ownership within the territory proposed to be annexed to Improvement Area No. 3 of the Community Facilities District. (d) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter 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 City Clerk. (e) The instruction to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City 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 by 5:00 p.m. on November 6, 2023. (f) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City 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. PASSED, APPROVED AND ADOPTED this 6th day of November, 2023, by the following vote: By: Robert Gonzales, Mayor I HEREBY CERTIFY that the foregoing Resolution No. ____ was duly adopted by the City Council of the City of Azusa at a regular meeting held on the 6th day of November 2023, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Jeffrey Lawrence Cornejo Jr., City Clerk 45635.01442\41659715.2 A-1 EXHIBIT “A” OFFICIAL BALLOT SPECIAL ELECTION NUMBER OF VOTES ENTITLED TO BE CAST: 6 IMPROVEMENT AREA NO. 3 OF THE COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE) OF THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA (ANNEXATION NO. 1) November 6, 2023 OFFICIAL BALLOT To vote on any measure, fill in the voting square before the word “YES” or before the word “NO” following each proposition. If you tear or deface this ballot, call Daniella V. Hernandez at 951- 826-8306 to obtain a replacement ballot. ______________________________________________________________________________ PROPOSITION A Shall Proposition A authorizing the annual levy of special taxes on taxable property in the territory proposed to be designated and annexed to Improvement Area No. 3 of Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa, County of Los Angeles, State of California, to pay for costs and services described in Resolution No. 2023-C55 and to pay costs associated with the determination of the amount of and the levy and collection of the special taxes at the special tax rates as set forth in Exhibit “B” to Resolution No. 2023-C55 be approved? □ YES □ NO RESOLUTION NO. 2023-C65 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DECLARING ELECTION RESULTS FOR THE ANNEXATION OF TERRITORY TO THE DESIGNATED IMPROVEMENT AREA NO. 3 OF COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE) OF THE CITY OF AZUSA (ANNEXATION NO. 1) WHEREAS, the City Council (the “City Council”) of the City of Azusa (the “City”) has established the Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa, County of Los Angeles, State of California (the “District”) and designated Improvement Area No. 1 and Improvement Area No. 2 therein for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing, among other things, certain services that are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS, by Resolution No. 2023-C55 adopted on September 18, 2023, the City Council of the City has heretofore conducted proceedings for the annexation of territory to the newly-designated Improvement Area No. 3 (“Improvement Area No. 3”) of the District including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for November 6, 2023, and submitting to the qualified electors of the territory to be annexed to Improvement Area No. 3 of the District the question of levying special taxes within that territory to pay the costs of certain services and the costs associated with the determination of the amount of and levy and collection of special taxes which will be levied to provide the services and costs otherwise incurred in order to carry out the authorized purposes of the District (the "Election Resolution"). WHEREAS, the City Council has received a statement from the City Clerk (the "City Clerk"), who pursuant to the Election Resolution was authorized to conduct such special election and act as the election official therefor, with respect to the canvass of the ballots returned in and the results of said special election, certifying that at least two-thirds of the votes cast upon the proposition submitted to the qualified electors in said special election were in favor of such proposition. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Findings. The City Council finds that: (i) there are no registered voters residing within the territory proposed to be annexed to Improvement Area No. 3 of the District (the "Territory") at the time of the close of the public hearing on November 6, 2023 and pursuant Attachment 2 to Section 53326 of the Government Code, the vote in said special election was, therefore, to be by the landowners owning land within the Territory, with each landowner having one vote for each acre or portion thereof of land that he or she owned within the Territory; (ii) pursuant to said Section 53326 and the Election Resolution, the City Clerk caused to be delivered an official ballot for the special election to the owner of the land within the Territory, with return postage prepaid; (iii)said special election has been properly conducted in accordance with all statutory requirements and the provisions of the Election Resolution; (iv) pursuant to said Section 53326, ROSEDALE LAND PARTNERS II, LLC, the owner of all the land within the Territory, was entitled to 5.6308 six (6) votes; (v) said landowner returned its ballot to the City Clerk prior to the time set by the City Clerk for the close of the election on November 6, 2023; (vi) the ballot returned to the City Clerk by said landowner voted all votes of said landowner in favor of the proposition set forth therein; (vii) at least two-thirds of the votes cast in such special election on said proposition were in favor thereof, and pursuant to Sections 53328 and 53329 of the Government Code, said proposition carried; (ix) pursuant to Section 53339.8 of the Government Code, the City Council is authorized to determine that the Territory to be annexed has been added to and become a part of Improvement Area No. 3 of the District with full legal effect; and (x) the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the Territory to pay the costs of the services to be provided by the District. SECTION 3. Declaration of Results. At least two-thirds of the votes voted in the special election on the proposition of the annual levy of special taxes within the Territory to pay the costs of the services to be provided by the District were voted in favor thereof, and such proposition carried. SECTION 4. Annexation. The Territory is annexed and added to and is a part of Improvement Area No. 3 of the District with full legal effect, and the City Council shall annually levy special taxes within the Territory at the rates as specified in Resolution No. 2023-C55, adopted by the City Council on September 18, 2023, to pay costs of certain services to be provided by the District. The boundaries of the Territory are shown on the map entitled, “Annexation Boundary Map of Improvement Area No. 3 of Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa, County of Los Angeles, State of California” which was recorded on September 21, 2023 in the office of the County Recorder of the County of Los Angeles as Instrument No. 20230635421. SECTION 5. Notice. Pursuant to Section 53339.8 of the Government Code and Section 3114.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of Los Angeles a notice of special tax lien creating the lien of special taxes for Improvement Area No. 3 of the District. SECTION 6. Entry of the Election Results in the Minutes. The City Clerk is hereby directed, pursuant to the provisions of the Elections Code of the State of California, to enter in the minutes the results of the election as set forth in said Certificate of Election Official. SECTION 7. Certification. The City Clerk shall certify the passage and adoption of this resolution. PASSED, APPROVED AND ADOPTED this 6th day of November, 2023, by the following vote: By: Robert Gonzales, Mayor I HEREBY CERTIFY that the foregoing Resolution No. ____ was duly adopted by the City Council of the City of Azusa at a regular meeting held on the 6th day of November, 2023, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Jeffrey Lawrence Cornejo Jr., City Clerk A-1 EXHIBIT “A” CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF AZUSA ) The undersigned, ELECTION OFFICIAL OF THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the IMPROVEMENT AREA NO. 3 OF COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE) OF THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA SPECIAL ELECTION (ANNEXATION NO. 1) in said City, held November 6, 2023. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in the territory to be annexed to Improvement Area No. 3 of the District in such City, and the whole number of votes cast for the Proposition in the territory to be annexed to the Improvement Area No. 3 of the District in said City, and the totals of the respective columns and the total as shown for the Proposition is full, true and correct. 1. VOTES CAST ON PROPOSITION A: YES 6 NO 0 WITNESS my hand this ________ day of __________________, 20__. CITY CLERK ELECTION OFFICIAL CITY OF AZUSA STATE OF CALIFORNIA 1 ORDINANCE NO. 2023-06 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN A COMMUNITY FACILITIES DISTRICT, INCLUDING CERTAIN ANNEXATION TERRITORY IDENTIFIED AS ANNEXATION NO 1, INTO IMPROVEMENT AREA NO. 3 OF THE COMMUNITY FACILITIES DISTRICT NO. 2005-1 (ROSEDALE) WHEREAS, the City Council (the “City Council”) of the City of Azusa (the “City”) has established Community Facilities District No. 2005-1 (Rosedale) of the City of Azusa, County of Los Angeles, State of California (the “District”) and designated Improvement Area No. 1 and Improvement Area No. 2 therein for the purpose of levying, among other things, special taxes on parcels of taxable property therein for the purpose of providing certain services, which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and WHEREAS the City has conducted proceedings to designate Improvement Area No. 3 of the District (“Improvement Area No. 3”) and to annex territory into Improvement Area No. 3 of the District; and WHEREAS, following an election of the qualified electors in the territory proposed for annexation (the “Annexation Territory”) into Improvement Area No. 3, the City Council, on November 6, 2023, adopted a Resolution which declared the results of the special election and determined that the territory proposed to be annexed is added to and part of Improvement Area No. 3 of the District; and WHEREAS, the rate and method of apportionment of special tax for Improvement Area No. 3 of the District (the “Rate and Method”) is set forth in Exhibit “B” to the City Council Resolution No. 2023-C55, which was adopted on September 18, 2023 (the “Resolution”). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct. SECTION 2. By the passage of this Ordinance, the City Council hereby authorizes and levies the special tax within Improvement Area No. 3 of the District pursuant to Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982,” (the “Act”), at the rate and in accordance with the Rate and Method, which Rate and Method is by this reference incorporated herein. The special tax for Improvement Area No. 3 is hereby levied commencing in Fiscal Year 2024-25, and in each fiscal year thereafter to pay for the services for the District and the costs of administering the District. Attachment 3 2 SECTION 3. The City Manager of the City or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific special tax to be levied for the next ensuing fiscal year for each parcel of real property within Improvement Area No. 3 of the District in the manner and as provided in the Rate and Method. SECTION 4. Exemptions from the levy of the special tax shall be as provided in the Rate and Method and the applicable provisions of the Act. In no event shall the special tax be levied on any parcel within Improvement Area No. 3 of the District in excess of the maximum special tax specified in the Rate and Method. SECTION 5. All of the collections of the special tax shall be used as provided in the Act and in the Resolution, including, but not limited to, the payment of the costs of the services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the special tax. SECTION 6. The special tax shall be collected in the same manner and at the same time as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the District may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. The City Manager of the City, or his or her designee, is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Los Angeles in order to effect proper billing and collection of the special tax for Improvement Area No. 3, so that the special tax shall be included on the secured property tax roll of the County of Los Angeles for Fiscal Year 2024-25 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City. SECTION 7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax for Improvement Area No. 3 is found inapplicable to any particular parcel within Improvement Area No. 3 of the District by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within Improvement Area No. 3 of the District shall not be affected. SECTION 8. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance, or a summary of it, to be published in a newspaper of general circulation in the City. 3 The foregoing ordinance was introduced and the title thereof read at the regular meeting of the City Council the 6th day of November, 2023 and by unanimous vote of the City Council members present, further reading was waived. PASSED, APPROVED AND ADOPTED this ___ day of November, 2023, by the following vote: By: Robert Gonzales, Mayor Jeffrey Lawrence Cornejo Jr., City Clerk