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Annotated agenda

Chula Vista City Council
July 28, 2026

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Annotated agenda
Meeting
July 28, 2026
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Chula Vista City Council
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504
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Text extracted from the city's file for reading and search. Open the original on pub-chulavista.escribemeetings.com. That file is the official record.

Date: Tuesday, July 28, 2026, 5:00 p.m.

Location: Council Chambers, 276 Fourth Avenue, Chula Vista, CA

REGULAR CITY COUNCIL MEETING
Watch live in English and Spanish: chulavistaca.gov/councilmeetings or Cox Ch. 24 (English only).

Free Spanish interpretation is available on-site.
_______________________________________________________________________________________ Watch the Meeting. City Council meetings may be viewed live or recorded in English or Spanish at chulavistaca.gov/councilmeetings. To view in Spanish, click "ES" at the bottom of the webpage. Closed captioning is available in both languages.

Register to Speak In Person or Remotely. Register to speak in person or remotely at https://publiccomment.chulavistaca.gov starting at 8:00 a.m. on Monday before the meeting. In-person speakers may also register at the meeting. Remote speakers must register using the same phone number they will use to call into the meeting; this phone number is used to identify and call on remote speakers during the meeting. Remote participants may call (619) 679-9952 to listen to the meeting and/or await their opportunity to speak. Requests to speak must be submitted before the close of the public comment period for the applicable agenda item or before the close of the general public comment period for non-agenda items.

Written Comments. Written comments may be submitted online at chulavistaca.gov/councilmeetings. Written comments may also be submitted by email to [email protected]. Written comments must be received no later than 12:00 p.m. on the day of a regular meeting or three hours before the start of a special meeting.

Time Allotted for Speaking. Speaker time is subject to change by the Presiding Officer or City Council.

Individuals using interpretation services will be allotted twice the time otherwise provided. - Consent Calendar, including one or more items: 3 minutes - Agenda Items not on the Consent Calendar: 3 minutes
- General Public Comment for matters not on the agenda: 3 minutes General Public Comment. The first seven registered speakers will be heard during the first general public comment period. If additional speakers are registered, they will be heard during the continued general public comment period. If all registered speakers address the City Council during the first general public comment period, there will be no continued period.

Agenda Packet and Meeting Materials. The agenda packet, including staff reports, draft resolutions and ordinances, and other backup materials, is available at chulavistaca.gov/councilmeetings and at the City Clerk's Office.

Accessibility, Translation, and Interpretation Assistance. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at [email protected] or (619) 691-5041. In accordance with applicable state law, the City will also provide reasonable assistance to members of the public who wish to translate the meeting into another language or receive interpretation provided by another member of the public. Providing at least 48 hours' notice will help ensure that reasonable arrangements can be made.

Gov. Code § 84308 Regulations. Government Code section 84308 is intended to promote transparency and fairness in governmental decision-making by limiting certain campaign contributions involving proceedings for a "license, permit, or other entitlement for use," as defined in the Political Reform Act. For agenda items subject to these regulations, parties to the proceeding must disclose any campaign contribution over $500, aggregated, made within the preceding 12 months by the party, their agent, or others whose contributions must be aggregated under Government Code section 82015.5. The disclosure must identify the contributor and the amount contributed. An agenda notation stating "G.C. § 84308 Regulations Apply: Yes" means the item is subject to these regulations.

Pages

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE

4. CONSENT CALENDAR (Items 4.1 through 4.8)
Consent calendar items are considered together and acted upon by one motion. There is no separate discussion of these items unless the Mayor or a City Councilmember removes the item from the consent calendar. Items removed from the consent calendar will be heard as action items.

RECOMMENDED ACTION:

City Council approve the recommended action on the below consent calendar items.

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4.1 Approve Meeting Minutes 9
RECOMMENDED ACTION:

Approve the minutes dated: July 14, 2026

4.2 Waive Reading of Text of Resolutions and Ordinances RECOMMENDED ACTION:

Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting.

4.3 Consider Requests for Excused Absences 19
RECOMMENDED ACTION:

Consider approving a request to excuse Councilmember Preciado from the July 14, 2026, City Council meeting.

4.4 Community Facilities District: Declare Intention to Form Community Facilities District No. 2025-1 (Village 8 East)
20 Report Number: 26-0184
Location: Located west of State Route 125 and southeast of the intersection of Rock Mountain Road and Magdalena Avenue, as shown on the boundary map Department: Development Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines.

Therefore, pursuant to CEQA Guidelines Section 15060(c)(3), no environmental review is required.

RECOMMENDED ACTION:

Adopt the following resolutions:

Approving the boundaries of proposed Community Facilities District No. 2025-1 (Village 8 East) (“CFD No. 2025-1”), declaring the intention of the City Council to authorize the formation of the proposed CFD No. 2025-1, levy a special tax, and set a time and place for the public hearing; and
A.

B. Declaring necessity to incur bonded indebtedness.

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4.5 Agreements: Approve an Agreement with Southern Counties Oil Co., a CA Limited Partnership DBA SC Fuels, and an Amendment to the Agreement with SC Commercial, LLC DBA SC Fuels for Fuel Supply and Delivery 129
Report Number: 25-0205
Location: No specific geographic location
Department: Public Works
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The proposed action is not a "Project" as defined under Section 15378 of the State California Environmental Quality Act (“CEQA”) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.

RECOMMENDED ACTION:

Adopt the following resolutions:

Approving an agreement with Southern Counties Oil Co., a CA Limited Partnership DBA SC Fuels (“SCOC”); and
A.

Approving an amended agreement with SC Commercial, LLC DBA SC Fuels (“SC Commercial”) to provide motor vehicle fuel supply and delivery.

B.

4.6 Active Transportation Program: Authorize the Submittal of a Cycle 8 Grant Application for Bayshore Bikeway - Lagoon Drive to H Street; and Confirm the City’s Assurance to Complete the Projects
163
Report Number: 26-0206
Location: Westerly and parallel to Bay Boulevard between Lagoon Drive and H Street within the inactive railroad corridor for the Coronado Branch Line Railroad Department: Engineering
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines.

Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.

RECOMMENDED ACTION:

Adopt a resolution authorizing the submittal of an application for the Active Transportation Program Cycle 8 grant for Bayshore Bikeway Segment 6B between Lagoon Drive and H Street and confirming the City’s commitment to complete this project and enhance the local transportation infrastructure.

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4.7 Agreement: Approve an Agreement with Chen Ryan Associates, Inc. to Perform Preliminary Engineering, Environmental Analysis, and Final Design Engineering Services for “F Street Promenade Phase 1” (CIP STL0464) 176
Report Number: 26-0129
Location: F Street corridor between Bay Boulevard and Broadway Department: Engineering
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines.

Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.

RECOMMENDED ACTION:

Adopt a resolution approving a professional services agreement with Chen Ryan Associates, Inc. to perform engineering consulting services for Federal Project ATPL-5203(055): City Project F Street Promenade Phase 1 (STL0464).

4.8 Agreement Amendment: Approve an Amendment to Consultant Services Agreement with I-GSD Management Inc. for Project Management/City Representative Services
313
Report Number: 26-0235
Location: 1775 Millenia Avenue
Department: City Manager
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The Project is adequately covered in a previously certified Final Second Tier Environmental Impact Report (EIR-07-01; SCH #2007041074, Millenia/Eastern Urban Center, dated September 15, 2009), and incorporated by reference in Resolution No. 2009-223 on September 15, 2009.

RECOMMENDED ACTION:

Adopt a resolution approving an amendment to a consultant services agreement with I-GSD Management Inc. for project management/city representative services that 1) increases the initial contract (through September 30, 2026) amount by $53,400; and 2) exercises the one-year extension option through September 30, 2027 at $300,000, for a total not-to-exceed amount of $703,400.

5. PUBLIC COMMENTS 321
Twenty-one minutes are scheduled for the public to address the City Council for three minutes each on any matter within the jurisdiction of the City Council that is not on the agenda. The remaining speakers, if any, will be heard during the continued Public Comment period.

6. BOARD AND COMMISSION REPORTS
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6.1 Hear a Presentation from the Board of Ethics Regarding Its Recommendation to Implement an Ex Parte Communication Policy
329
Report Number: 26-0176
Location: No specific geographic location
G.C. § 84308 Regulations Apply: No
Environmental Notice: The proposed action is not a "Project" as defined under Section 15378 of the State California Environmental Quality Act (“CEQA”) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.

RECOMMENDED ACTION:

The Board of Ethics recommends that the City Council hear the presentation and provide feedback, as appropriate.

7. PUBLIC HEARINGS

7.1 Gaming Operations: Amend Chula Vista Municipal Code Chapter 5.20 “Gambling” Incorporating Chula Vista Gaming Plan Provisions in Accordance with State Law
343
Report Number: 26-0228
Location: No specific geographic location
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities).

RECOMMENDED ACTION:

Place an ordinance on first reading amending Chula Vista Municipal Code Chapter 5.20 “Gambling” incorporating the Chula Vista Gaming Plan as an appendix in accordance with State law. (First Reading)

8. ACTION ITEMS

8.1 Consider Items Removed From the Consent Calendar, if Any Consider items removed from the consent calendar by the Mayor or a City Councilmember, if any. If no items were removed from the consent calendar, this item will be withdrawn.

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8.2 Surplus Land Declaration: Declare a Portion of City-Owned Property Surplus Land
401
Report Number: 26-0234
Location: Rancho Robinhood Unit 3, Open Space District
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines.

Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.

RECOMMENDED ACTION:

Adopt a resolution declaring City-owned property “Surplus Land” under California Government Code Section 54221(b)(1).

8.3 City Council Referrals: Presentation on City Council Referrals Related to Events and Associated Policies
411
Report Number: 26-0240
Location: No specific geographic location
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines.

Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.

RECOMMENDED ACTION:

Receive the staff presentation on recent City Council referrals related to events and associated policies, provide direction to staff, and, as appropriate, direct staff to return with policy recommendations for City Council consideration and adoption.

9. PUBLIC COMMENTS (CONTINUED)
There will be no continued Public Comment period if all speakers present at the first Public Comment period are heard.

10. CITY MANAGER’S REPORTS

11. MAYOR’S REPORTS

12. COUNCILMEMBERS’ REPORTS

13. CITY CLERK'S REPORTS

14. CITY ATTORNEY'S REPORTS
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15. ADJOURNMENT
to the regular City Council meeting on August 11, 2026, at 5:00 p.m. in the Council Chambers.

Materials provided to the City Council related to an open session item on this agenda are available for public review, please contact the Office of the City Clerk at [email protected]
or (619) 691-5041.

We encourage community participation - sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online.

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City of Chula Vista
Regular City Council Meeting

MINUTES
Date:

Location:

July 14, 2026, 5:00 p.m.

Council Chambers, 276 Fourth Avenue, Chula Vista, CA

Present: Councilmember Chavez, Deputy Mayor Fernandez, Councilmember Inzunza, Mayor McCann

Absent: Councilmember Preciado (Excused absence pending City Council approval) Also Present: City Attorney Verdugo, City Clerk Bigelow, Deputy Director of City Clerk Services Turner, City Manager Allen
Minutes are prepared and ordered to correspond to the agenda. _____________________________________________________________________

1. CALL TO ORDER
The meeting was called to order at 5:00 p.m.

2. ROLL CALL
City Clerk Bigelow called the roll.

3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Led by the Chula Vista Police Officers Association President, Sergeant David Martinez.

4. SPECIAL ORDERS OF THE DAY

4.1 Presentation of a Proclamation Proclaiming July 2026, as Parks and Recreation Month in the City of Chula Vista
The proclamation was presented.

5. CONSENT CALENDAR (Items 5.1 through 5.9)
Mayor McCann and Councilmember Inzunza announced they would abstain from voting on Items 5.6.B and 5.6.C, respectively, due to potential property-related conflicts of interest.

The following members of the public spoke regarding various topics related to the consent calendar:
 John Acosta, Chula Vista resident
 Robert
Item 5.4 was removed from the consent calendar at the request of Councilmember Inzunza.

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City of Chula Vista - City Council
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2026-07-28 Regular City Council Meeting Minutes
2 Moved by Mayor McCann
Seconded by Councilmember Chavez
To approve the recommended actions appearing below consent calendar Items 5.1 through 5.3, Item 5.5, Item 5.6A, and Items 5.7 through 5.9. The headings were read, text waived. The motion was carried by the following vote:

Yes (4): Councilmember Chavez, Deputy Mayor Fernandez, Councilmember Inzunza, and Mayor McCann
Result, Carried (4 to 0)
Moved by Mayor McCann
Seconded by Councilmember Chavez
To approve the recommended action appearing below consent calendar Item 5.6B. The heading was read, text waived. The motion was carried by the following vote:

Yes (3): Councilmember Chavez, Deputy Mayor Fernandez, and Councilmember Inzunza
Abstain (1): Mayor McCann
Result, Carried (3 to 0)
Moved by Mayor McCann
Seconded by Councilmember Chavez
To approve the recommended action appearing below consent calendar Item 5.6C. The heading was read, text waived. The motion was carried by the following vote:

Yes (3): Councilmember Chavez, Deputy Mayor Fernandez, and Mayor McCann Abstain (1): Councilmember Inzunza
Result, Carried (3 to 0)

5.1 Approve Meeting Minutes
Approve the minutes dated: June 16, 2026

5.2 Waive Reading of Text of Resolutions and Ordinances Approve a motion to read only the title and waive the reading of the text of all resolutions and ordinances at this meeting.

5.3 City Election: Recite the Fact of the Primary Municipal Election Held on June 2, 2026, and Declare the Results, Call a General Municipal Election on November 3, 2026, and Adopt Candidate Statement Regulations Adopt the following resolutions:

A. Reciting the fact of the primary municipal election held on June 2, 2026, declaring the results thereof, and other related matters

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City of Chula Vista - City Council
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2026-07-28 Regular City Council Meeting Minutes
3 B. Calling a general municipal election to be held on Tuesday, November 3, 2026, to elect a Mayor, a City Attorney, and two City Councilmembers, representing Districts 1 and 2, consolidating the election with the statewide election, and requesting the County of San Diego Board of Supervisors to permit the Registrar of Voters to perform certain services for the conduct of the election
C. Adopting regulations for candidate statements of qualifications Item 5.3 headings:

A. RESOLUTION NO. 2026-134 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA RECITING THE FACT OF THE PRIMARY MUNICIPAL

ELECTION FOR MAYOR, AND TWO CITY COUNCILMEMBERS,
REPRESENTING DISTRICTS 1 AND 2 HELD IN THIS CITY ON
TUESDAY, JUNE 2, 2026, DECLARING THE RESULTS THEREOF, AND

OTHER MATTERS AS ARE PROVIDED BY LAW
B. RESOLUTION NO. 2026-135 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA CALLING A GENERAL MUNICIPAL ELECTION FOR

MAYOR, TWO CITY COUNCILMEMBERS TO REPRESENT DISTRICTS
1 AND 2, AND CITY ATTORNEY, TO BE HELD ON TUESDAY,
NOVEMBER 3, 2026; AND REQUESTING THE COUNTY OF SAN

DIEGO BOARD OF SUPERVISORS TO PERMIT THE REGISTRAR OF

VOTERS TO PERFORM CERTAIN SERVICES FOR THE CONDUCT OF

THE ELECTION
C. RESOLUTION NO. 2026-136 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA ADOPTING REGULATIONS FOR CANDIDATES FOR

ELECTIVE OFFICE PERTAINING TO MATERIALS SUBMITTED TO THE

ELECTORATE AT THE MUNICIPAL ELECTION TO BE HELD TUESDAY, NOVEMBER 3, 2026

5.5 Employee Compensation and Positions: Amended Classification and Compensation Plan; Authorized Position Counts; Enhanced Lateral Incentive Pay for Peace Officers; Revised Compensation Schedule; Budget Amendments; and Updated Conflict of Interest Code
Adopt the following resolutions and place the ordinance on first reading:

A. Resolution amending the Classification Plan, Compensation Schedule and authorized position count in the Public Works Department B. Resolution approving the revised Fiscal Year 2026-27 Compensation Schedule effective July 24, 2026, as required by California Code of Regulations, Title 2, Section 570.5
C. Resolution approving an extension to the Enhanced Lateral Incentive Pay for new lateral Peace Officer hires
D. Resolution amending the fiscal year 2026-27 budget to appropriate funds, accordingly (4/5 Vote Required)
E. Resolution modifying the appendix to the local Conflict of Interest Code to revise the list of designated employees who are required to file

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City of Chula Vista - City Council
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2026-07-28 Regular City Council Meeting Minutes
4 Statements of Economic Interest (Form 700) and designating the filers as “Local Agency Officials,” requiring them to complete state-mandated Ethics and Fiscal and Financial Training
F. Ordinance amending Chula Vista Municipal Code Section 2.05.010 adding the unclassified position title of Deputy Director of Public Works and deleting the unclassified position title of Public Works Superintendent (First Reading) (4/5 Vote Required)
Item 5.5 headings:

A. RESOLUTION NO. 2026-138 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA AMENDING THE CLASSIFICATION PLAN,

COMPENSATION SCHEDULE AND AUTHORIZED POSITION COUNT

IN IN THE PUBLIC WORKS DEPARTMENT
B. RESOLUTION NO. 2026-139 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2026-27
COMPENSATION SCHEDULE EFFECTIVE JULY 24, 2026, AS
REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2,
SECTION 570.5
C. RESOLUTION NO. 2026-140 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA APPROVING AN EXTENSION TO THE ENHANCED

LATERAL INCENTIVE PAY FOR NEW LATERAL PEACE OFFICER
HIRES
D. RESOLUTION NO. 2026-141 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL
YEAR 2026-27 BUDGET AND APPROPRIATING FUNDS THEREFOR
(4/5 VOTE REQUIRED)
E. RESOLUTION NO. 2026-142 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA MODIFYING THE APPENDIX TO THE LOCAL CONFLICT

OF INTEREST CODE TO AMEND THE LIST OF DESIGNATED FILERS

AND ASSOCIATED DISCLOSURE CATEGORIES, AND DESIGNATING

THE FILERS AS LOCAL AGENCY OFFICIALS, THEREBY REQUIRING

THEM TO COMPLETE STATE-MANDATED ETHICS AND FISCAL AND

FINANCIAL TRAINING
F. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA
VISTA MUNICIPAL CODE SECTION 2.05.010 ADDING THE POSITION

TITLE OF DEPUTY DIRECTOR OF PUBLIC WORKS AND DELETING

THE UNCLASSIFIED POSITION TITLE OF PUBLIC WORKS
SUPERINTENDENT (FIRST READING) (4/5 VOTE REQUIRED)

5.6 Community Facilities Districts: Approve the Levy of Special Taxes and Collectibles for Fiscal Year 2026-27
Adopt the following resolutions:

A. Levying special taxes to be collected to pay the costs of facilities and services for Community Facilities Districts 97-3, 98-3, 99-2, 2000-1, 2001- 1, 2001-2, 2024-1, 2024-2, 07-I, 08-I, 08-M, 09-M, 11-M, 12-I, 12-M, 13-I, 13-M, 14-M, 14-M2, 16-I, 16M, 18-M and 19-M within the City of Chula

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City of Chula Vista - City Council
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2026-07-28 Regular City Council Meeting Minutes
5 Vista (“City”) and designating the Director of Finance to file a list of taxes to be levied on each parcel with the County auditor each year.

B. Levying special taxes to be collected to pay the cost of facilities and services for Community Facilities Districts 06-I and 07-M within the City of Chula Vista and designating the Director of Finance to file a list of taxes to be levied on each parcel with the County auditor each year.

C. Levying special taxes to be collected to pay the cost of facilities and services for Community Facilities Districts 97-1, 97-2, and 99-1 within the City of Chula Vista and designating the Director of Finance to file a list of taxes to be levied on each parcel with the County auditor each year.

Item 5.6 headings:

A. RESOLUTION NO. 2026-143 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY

THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY
FACILITIES DISTRICTS 97-3, 98-3, 99-2, 2000-1, 2001-1, 2001-2, 2024- 1, 2024-2, 07-I, 08-I, 08-M, 09-M, 11-M, 12-I, 12-M, 13-I, 13-M, 14-M, 14- M2, 16-I, 16M, 18-M, AND 19-M WITHIN THE CITY OF CHULA VISTA

AND DESIGNATING THE DIRECTOR OF FINANCE TO FILE A LIST OF

TAXES TO BE LEVIED ON EACH PARCEL WITH THE COUNTY

AUDITOR EACH YEAR
B. RESOLUTION NO. 2026-144 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY

THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY
FACILITIES DISTRICTS 06-I AND 07-M WITHIN THE CITY OF CHULA

VISTA AND DESIGNATING THE DIRECTOR OF FINANCE TO FILE A

LIST OF TAXES TO BE LEVIED ON EACH PARCEL WITH THE

COUNTY AUDITOR EACH YEAR
C. RESOLUTION NO. 2026-145 OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY

THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY
FACILITIES DISTRICTS 97-1, 97-2, AND 99-1 WITHIN THE CITY OF

CHULA VISTA AND DESIGNATING THE DIRECTOR OF FINANCE TO

FILE A LIST OF TAXES TO BE LEVIED ON EACH PARCEL WITH THE

COUNTY AUDITOR EACH YEAR

5.7 Used Oil Recycling Program Participation: Authorize Submittal of an Oil Payment Program Application to CalRecycle as the Regional Lead Participant for the South Bay/East County Used Oil Program
Adopt a resolution approving the submittal of a regional Oil Payment Program application to CalRecycle as the regional lead participant for the South Bay/East County Used Oil Program.

Item 5.7 heading:

RESOLUTION NO. 2026-146 OF THE CITY COUNCIL OF THE CITY OF CHULA

VISTA AUTHORIZING SUBMITTAL OF A REGIONAL APPLICATION ON BEHALF

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6 OF ITSELF AS LEAD PARTICIPANT AND ALL NON-LEAD PARTICIPANTS FOR

THE CALRECYCLE USED OIL PAYMENT PROGRAM

5.8 Purchase Agreements: Accept Bids from Miwall Corporation and San Diego Police Equipment Co., Inc. and Approve Agreements to Purchase Ammunition for the Police Department
Adopt a resolution accepting bids from Miwall Corporation and San Diego Police Equipment Co., Inc., and approving agreements with each for the purchase of ammunition for the Police Department.

Item 5.8 heading:

RESOLUTION NO. 2026-147 OF THE CITY COUNCIL OF THE CITY OF CHULA

VISTA ACCEPTING BIDS FROM MIWALL CORPORATION AND SAN DIEGO POLICE EQUIPMENT CO., INC. TO PURCHASE AMMUNITION FOR THE

POLICE DEPARTMENT

5.9 Agreement: Award a Cooperative Agreement to West Coast Arborist, Inc for Citywide Tree Maintenance Services
Adopt a resolution awarding a cooperative agreement for tree maintenance services to West Coast Arborist, Inc.

Item 5.9 heading:

RESOLUTION NO. 2026-148 OF THE CITY COUNCIL OF THE CITY OF CHULA

VISTA APPROVING A COOPERATIVE PURCHASING AGREEMENT FOR TREE

MAINTENANCE SERVICES BETWEEN THE CITY AND WEST COAST
ARBORIST, INC.

ITEMS REMOVED FROM THE CONSENT CALENDAR

5.4 CIP Appropriation: Amend the Fiscal Year 2026-27 CIP Program by Appropriating Funds from the Available Fund Balance of the Public Facilities Development Impact Fees Fund to the Fire Station 11 Project (GGV0273) Robert spoke regarding the item.

Moved by Councilmember Inzunza
Seconded by Mayor McCann
To adopt Resolution No. 2026-137, the heading was read, text waived. The motion was carried by the following vote:

Yes (4): Councilmember Chavez, Deputy Mayor Fernandez, Councilmember Inzunza, and Mayor McCann
Result, Carried (4 to 0)
Item 5.4 heading:

RESOLUTION NO. 2026-137 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2026-27 CAPITAL IMPROVEMENT

PROGRAM BUDGET BY APPROPRIATING PUBLIC FACILITIES
DEVELOPMENT IMPACT FEES FUNDS TO FIRE STATION 11 (CIP NO.

GGV0273) FOR ADDITIONAL CONSTRUCTION COSTS (4/5 VOTE REQUIRED)

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City of Chula Vista - City Council
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2026-07-28 Regular City Council Meeting Minutes
7 6. PUBLIC COMMENTS
The following members of the public spoke regarding various topics:
 John Acosta, Chula Vista resident
 Obviously Robert O
Richard Dohman spoke regarding access point to the Eastlake Storage company on Germain Road.

Angelica Martinez, Chula Vista resident, expressed concerns regarding Council meeting discussions and the use of meeting time.

The following members of the public spoke in support of establishing a committee on golf courses:
 Bob Strahl, Chula Vista resident
 Liz Lebron, Chula Vista resident
 Mark Liuag, Chula Vista resident
Thomas submitted written comments regarding matters related to transparency and public accountability.

7. PUBLIC HEARINGS

7.1 Community Facilities District Annexation: Public Hearing and Election Regarding Annexation of Eastlake Self Storage into Community Facilities District No. 97-2
Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice.

Deputy City Manager/Director of Development Services Sapa'u and Deputy Director of Development Services Bridgeford gave a presentation on the item.

Mayor McCann opened the public hearing.

The following members of the public spoke in opposition to the item:
 Amanda Alba, Chula Vista resident
 Cynthia Garcia, Chula Vista resident
 William Hauck, Chula Vista resident
 Cynthia Castillo, Chula Vista resident
 Adam Zamora, Chula Vista resident
 Paul Echeverria, Chula Vista resident
 Steve Limber, Chula Vista resident
 Taylor Bond, Chula Vista resident
 Evette G., Chula Vista resident
 Lanea Hauck, Chula Vista resident
 Jose Avalos, Chula Vista resident
Robert O spoke, expressing a neutral position on the item.

Delia Dominguez Cervantes submitted written comments in opposition to the item.

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City of Chula Vista - City Council
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2026-07-28 Regular City Council Meeting Minutes
8 At the request of Mayor McCann, there was a consensus of the City Council to make a referral to the City Manager to verify that the road would provide emergency access and investigate what the City could do to protect the citizens.

There being no further members of the public who wished to speak, Mayor McCann closed the public hearing.

Moved by Mayor McCann
Seconded by Councilmember Chavez
To continue the public hearing to the August 11, 2026, City Council meeting. The motion carried by the following vote:

Yes (4): Councilmember Chavez, Deputy Mayor Fernandez, Councilmember Inzunza, and Mayor McCann
Result, Carried (4 to 0)
The meeting was recessed at 6:55 p.m. and reconvened at 7:20 p.m.

7.2 Open Space Maintenance Districts: Approve Levying the Assessments and Collectibles for Fiscal Year 2026-27
Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice.

Mayor McCann announced that, due to conflicts related to the item, it would be continued to the July 21, 2026, City Council meeting.

Mayor McCann opened the public hearing.

Obviously Robert in person test spoke regarding speaking on a pulled item.

There being no members of the public who wished to speak, Mayor McCann closed the public hearing.

8. ACTION ITEMS

8.1 Consider Items Removed From the Consent Calendar, if Any For action on this item, refer to the section, Items Removed from the Consent Calendar, above.

8.2 Ballot Measure: Consider Placing a Charter Amendment Measure on the Nov. 2026 Ballot Related to Term Limits, Elected Official Compensation, Council Committees, Salary Setting & City Ethics Commissions, Public Contracting, Lobbying, & Binding Arbitration
City Manager Allen gave a presentation on the item.

Brigette Browning spoke, expressing a neutral position on the item.

Kelvin Barrios spoke in support of the item.

At 7:47 p.m., the meeting was briefly recessed due to a disruption in the remote public access service. Staff and the City's technology support team conducted troubleshooting and restored service. The meeting reconvened at 7:49 p.m. with public access restored.

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9 The following members of the public spoke in opposition to the item:
 Obviously Robert Test in person
 Angelica Martinez
 Norma Toothman
 Greg Martinez
 David Stucky
 Crystal Irving, representing SEIU Local 221
 Delia Dominguez-Cervantes
Jerome O. Torres submitted written communications in opposition to the item.

City Attorney Verdugo stated that, due to a potential conflict of interest, outside counsel would advise on portions of the measure affecting the City Attorney's salary if necessary.

At the request of Councilmember Chavez there was a consensus of the City Council to direct the City Attorney's Office to explore the possibility of including additional bargaining units in the proposed measure related to binding arbitration.

There was a consensus of a majority of the City Council to designate Deputy Mayor Fernandez to author the ballot argument in favor of the proposed measure.

9. PUBLIC COMMENTS (CONTINUED)
Brandon Claypool spoke regarding various topics.

Heidi Paola spoke regarding matters related to homelessness.

Becky Rapp spoke regarding matters related to cannabis access and use.

10. CITY MANAGER’S REPORTS
There were none.

11. MAYOR’S REPORTS
Mayor McCann reported on attendance at recent events and made community announcements.

12. COUNCILMEMBERS’ REPORTS
Councilmembers reported on attendance at recent events and made community announcements.

At the request of Councilmember Chavez, there was a consensus of the City Council to direct the City Manager to return with an update on the master planning efforts for the north side of Otay Ranch Community Park, including potential public facilities and options for a senior center in eastern Chula Vista.

Councilmember Chavez gave a report on the recent SANDAG meeting.

13. CITY CLERK'S REPORTS
There was none.

14. CITY ATTORNEY'S REPORTS

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10 There were none.

15. CLOSED SESSION
Pursuant to Resolution No. 13706 and City Council Policy No. 346-03, the City Attorney maintains official minutes and records of action taken during closed session.

City Attorney Verdugo announced that the City Council would convene in closed session to discuss the items listed below.

The meeting was recessed at 9:05 p.m. and reconvened in closed session at 9:13 p.m. with all members present.

15.1 Conference with Labor Negotiators Pursuant to Government Code Section 54957.6
Robert spoke regarding the item.

Agency-designated representatives: Tiffany Allen, Courtney Chase, Tanya Tomlinson, and Marco Verdugo
Employee organization: NS-IAFF and IAFF
Action: No reportable action.

16. ADJOURNMENT
The meeting was adjourned at 9:53 p.m.

Minutes prepared by: Tyshar Turner, Deputy Director, City Clerk Services _________________________
Kerry K. Bigelow, MMC, City Clerk

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EMORANDUM

COUNCILMEMBER JOSE PRECIADO
276 Fourth Ave. Chula Vista, CA 91910 | 619.585.5713 | [email protected] DATE: July 17, 2026
TO: Kerry Bigelow, City Clerk
CC: Honorable Mayor and Councilmembers, City Manager and City Attorney FROM: Councilmember Jose Preciado
RE : Request for Excuse d Absence from Regular City Council Meeting Dear City Clerk,
I respectfully request an excused absence from the Regular City Council Meeting of July 14, 2026, due to medical concerns.

Thank you for your consideration and understanding. I remain committed to serving the residents of Chula Vista and will continue to stay informed on Council business.

Respectfully,
Jose Preciado
Councilmember, District 2

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July 28, 2026

ITEM TITLE
Community Facilities District: Declare Intention to Form Community Facilities District No. 2025-1 (Village 8 East)
Report Number: 26-0184
Location: Located west of State Route 125 and southeast of the intersection of Rock Mountain Road and Magdalena Avenue, as shown on the boundary map
Department: Development Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines. Therefore, pursuant to CEQA Guidelines Section 15060(c)(3), no environmental review is required.

Recommended Actions
Adopt the following resolutions:

A. Approving the boundaries of proposed Community Facilities District No. 2025-1 (Village 8 East) (“CFD No. 2025-1”), declaring the intention of the City Council to authorize the formation of the proposed CFD No. 2025-1, levy a special tax, and set a time and place for the public hearing; and B. Declaring necessity to incur bonded indebtedness.

SUMMARY
The developer/owner of Village 8 East, HomeFed Corporation, requested formation of a Community Facilities District (CFD) to finance the construction of certain public facilities and payment of Development Impact Fees (DIFs). This action initiates the formation of the CFD.

ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with CEQA and determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the

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environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.

BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable

DISCUSSION
The Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) authorizes local agencies to establish Community Facilities Districts (CFD) as a financing mechanism for eligible public facilities, public services, and related financing costs. Consistent with this authority, the City Council adopted City Council Policy 505-04 (Statement of Goals and Policies Regarding Establishment of Community Facilities Districts) and codified implementing procedures in Chula Vista Municipal Code (CVMC) Chapter 3.60 (Community Facilities Districts – General). The proposed CFD No. 2025-1 is consistent with the Mellow-Roos Act, City Council Policy 505-04, and CVMC Chapter 3.60.

Consistent with these authorities, the proposed Village 8 East development includes public infrastructure and facilities that are appropriate for financing through the formation of CFD No. 2025-1. The Village 8 East project includes up to 3,276 residential units consisting of for-sale, affordable, age-qualified, and multi-family housing, along with a mixed-use Village Core featuring retail/commercial uses, an elementary school site, a

7.3-acre neighborhood park, and a future pedestrian bridge connecting Village 8 East to Village 9. The project also provides substantial open space and recreational amenities, including 253.6 acres of Preserve Open Space, a 22.6-acre active recreation site, improvements to the Otay Ranch Community Park South, and regional water quality infrastructure.

HomeFed Corporation requested the formation of proposed CFD No. 2025-1, Improvement Areas 1 and 2, to finance the acquisition and construction of public infrastructure and facilities associated with the Village 8 East development. The proposed financing program totals approximately $213 million and includes approximately $101 million for public infrastructure improvements, including extensions to Main Street and La Media Road, other backbone public streets and utilities, parkland acquisition, and other eligible public improvements. The financing program also includes approximately $112 million for eligible City development impact and capacity fees, including Park Acquisition and Development (PAD) fees, Public Facilities Development Impact Fees (PFDIF), sewer capacity fees, Salt Creek Sewer Basin fees, Eastern Transportation Development Impact Fees (ETDIF) which, if the Transportation and Roadway Infrastructure Program (TRIP) is adopted, would extend to future TRIP fees, and future pedestrian bridge fees.

Proposed Special Tax
The Rate and Method of Apportionment of Special Tax (RMA) (Attachments 1 & 2) establishes how the Annual Special Tax Requirement is determined each fiscal year and apportioned among the taxable properties within CFD No. 2025-1 based on land use classifications and building square footage categories.

The Annual Special Tax Requirement includes amounts necessary to pay debt service, administrative expenses, reserve requirements, and anticipated delinquencies. The special tax is levied first on residential property for which a building permit is issued prior to June 30 of the preceding fiscal year. If additional monies are needed to satisfy the Annual Special Tax Requirement after the first step has been completed, an

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amount will be levied on each parcel of undeveloped property in accordance with the RMA. In no event shall the tax be levied on any parcel in an amount higher than the Maximum Special Tax.

Tables 1-4 below detail the Assigned Special Tax Rates for fiscal year 2026-2027 for each zone in Improvement Area 1.

Table 1 – Improvement Area 1 Zone 1
Assigned Special Tax Rates for Developed Property
Land Use Class Land Use Type Building Square
Footage
Assigned Special Tax (per
Residential Unit)
1 Single Family Residential
Property
<= 1,400 $3,021
2 Single Family Residential
Property
1,401 – 1,700 $3,112
3 Single Family Residential
Property
1,701 – 2,000 $3,374
4 Single Family Residential
Property
>= 2,001 $4,181
5 Non-Residential Property n/a $0
Table 2 – Improvement Area 1 Zone 2
Assigned Special Tax Rates for Developed Property
Land Use Class Land Use Type Building Square
Footage
Assigned Special Tax
(per Residential Unit)
1 Single Family Residential
Property
<= 1,600 $3,240
2 Single Family Residential
Property
>= 1,601 $3,287
3 Non-Residential Property n/a $0
Table 3 – Improvement Area 1 Zone 3
Assigned Special Tax Rates for Developed Property
Land Use Class Land Use Type Building Square
Footage
Assigned Special Tax (per
Residential Unit)
1 Single Family Residential
Property
<= 1,500 $3,150
2 Single Family Residential
Property
1,501 – 1,715 $3,323
3 Single Family Residential
Property
1,716 – 1,930 $3,743
4 Single Family Residential
Property
1,931 – 2,145 $3,925
5 Single Family Residential
Property
2,146 – 2,360 $4,276
6 Single Family Residential
Property
2,361 – 2,575 $4,445
7 Single Family Residential
Property
>= 2,576 $4,815
8 Non-Residential Property n/a $0

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Table 4 – Improvement Area 1 Zone 4
Assigned Special Tax Rates for Developed Property
Land Use Class Land Use Type Building Square
Footage
Assigned Special Tax
(per Residential Unit)
1 Affordable Residential
Property
n/a $40
2 Multifamily Residential
Property
n/a $40
3 Non-Residential Property n/a $40
Tables 5-7 below detail the Assigned Special Tax Rates for fiscal year 2026-2027 for each zone in Improvement Area 2.

Table 5 – Improvement Area 2 Zone 1
Assigned Special Tax Rates for Developed Property
Land Use Class Land Use Type Building Square
Footage
Assigned Special Tax (per
Residential Unit)
1 Single Family Residential
Property
<= 1,400 $3,021
2 Single Family Residential
Property
1,401 – 1,700 $3,112
3 Single Family Residential
Property
1,701 – 2,000 $3,374
4 Single Family Residential
Property
>= 2,001 $4,181
5 Non-Residential Property n/a $0
Table 6 – Improvement Area 2 Zone 2
Assigned Special Tax Rates for Developed Property
Land Use Class Land Use Type Building Square
Footage
Assigned Special Tax
(per Residential Unit)
1 Single Family Residential
Property
<= 1,800 $3,323
2 Single Family Residential
Property
1,801 – 2,000 $3,743
3 Single Family Residential
Property
2,001 – 2,200 $3,925
4 Single Family Residential
Property
2,201 – 2,400 $4,276
5 Single Family Residential
Property
2,401 – 2,600 $4,445
6 Single Family Residential
Property
> 2,601 $4,815
7 Non-Residential Property n/a $0

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Table 7 – Improvement Area 2 Zone 3
Assigned Special Tax Rates for Developed Property
Land Use Class Land Use Type Building Square
Footage
Assigned Special Tax
(per Residential Unit)
1 Affordable Residential
Property
n/a $40
2 Multifamily Residential
Property
n/a $40
3 Non-Residential Property n/a $40
On each July 1st commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax for Developed Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior fiscal year.

Acquisition-Financing Agreement
An Acquisition-Financing Agreement, which describes the facilities and DIF that may be financed with the bonds and establishes the terms and conditions for acquiring and financing the public improvements, will be presented to the City Council for approval at a future meeting.

Resolutions and Future Action
One of the resolutions associated with this action is known as the Resolution of Intention, which declares the City Council’s intent to establish the proposed CFD No. 2025-1, describes the boundaries of the proposed CFD, approves the RMA, authorizes the levy of a special tax, sets the time and place for the public hearing, and directs the preparation of a CFD Report. The CFD Report is a separate report that describes the public facilities and eligible development impact fees proposed to be financed, provides estimated financing costs, and identifies related incidental expenses, including bond issuance and administrative costs. The boundary map (Attachment 3) will be recorded within fifteen (15) days of approval of the Resolution of Intention.

The second resolution associated with this action is the Resolution Determining the Necessity to Incur Bonded Indebtedness, which declares the City’s intent for the proposed CFD to issue bonds to finance eligible public facilities and development impact fees, establishes the maximum principal amount of bonded indebtedness that may be issued, and calls for a public hearing on the proposed bonded indebtedness. The resolution establishes a not-to-exceed principal amount of $50,000,000 for Improvement Area 1 and $75,000,000 for Improvement Area 2.

If both Resolution of Intention and the Resolution Determining the Necessity to Incur Bonded Indebtedness are adopted, consolidated public hearings on the proposed formation of CFD No. 2025-1 and the proposed bonded indebtedness will be held at the City Council meeting on September 1, 2026, at 5:00 p.m. At that meeting, the City Council will consider resolutions forming and establishing CFD No. 2025-1 authorizing the incurrence of bonded indebtedness, and submission of the authorization for the levy of special taxes to the qualified electors, which in this case is the Developer.

DECISION-MAKER CONFLICT
Staff reviewed the property holdings of the City Council members and found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does

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not present a disqualifying real property-related financial conflict of interest under California Code of Regulations title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware of nor has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.

CURRENT-YEAR FISCAL IMPACT
All costs associated with the formation of the CFD are borne by the applicant; therefore, these actions will have no current-year fiscal impact on the General Fund or Development Services Fund.

ONGOING FISCAL IMPACT
This action has no ongoing fiscal impact to the General Fund or Development Services Fund as result of these actions. Upon formation of CFD No. 2025-1, the annual administrative costs associated with the CFD will be funded through the levy of special taxes in accordance with the RMA.

ATTACHMENTS

1. Rate and Method of Apportionment Improvement Area 1

2. Rate and Method of Apportionment Improvement Area 2

3. Proposed Boundary Map of CFD No. 2025-1
Staff Contact: Alyssa Moreno, Senior Management Analyst, Development Services Rebecca Bridgeford, Deputy Director, Development Services Roy Sapa’u, Deputy City Manager/Director of Development Services

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RESOLUTION NO. 2026-_________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA, DECLARING INTENTION TO ESTABLISH
PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1
(VILLAGE 8 EAST) OF THE CITY OF CHULA VISTA,

COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,

INCLUDING IMPROVEMENT AREAS THEREIN, AND

TAKING OTHER ACTIONS RELATING THERETO
WHEREAS, the City Council of the City of Chula Vista, California (“City”), at this time desires to initiate proceedings to create community facilities district pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (commencing with Section 53311) (“Act”) and the City of Chula Vista Community Facilities District Ordinance No. 2730, as amended, enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (“Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”); and WHEREAS, the proposed community facilities district shall hereinafter be referred to as Community Facilities District No. 2025-1 (Village 8 East) of the City of Chula Vista, County of San Diego, State of California (“District”); and
WHEREAS, the City has received a petition from HomeFed Corporation, the owner of certain property within the City (“Owner”), requesting the City Council institute proceedings for the formation of the District pursuant to the Community Facilities District Law; and WHEREAS, the Owner has requested that in establishing the proposed District, the City Council designate two (2) separate improvement areas (each an “Improvement Area” and, collectively, the “Improvement Areas”) over portions of the property to be included therein so that separate series of the bonds of the proposed District may be issued on behalf of each Improvement Area to finance the Facilities (as defined herein) secured by the levy of special taxes within each applicable Improvement Area; and
WHEREAS, pursuant to Section 53350 of the California Government Code, the City Council may, by resolution, designate a portion or portions of a community facilities district as one of more Improvement Areas for the financing of, or contribution to the financing of, specified public facilities and which will be subject to the levy and payment of special taxes to pay the principal of and interest on the bonds of the community facilities district which may be issued and sold to finance the design, construction, and acquisition of such public facilities; and WHEREAS, upon the designation of each Improvement Area, all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds shall apply only to the applicable Improvement Area; and

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WHEREAS, it is, therefore, necessary and desirable that separate Improvement Areas be designated to include specific portions of the property to be included in the proposed District so that the property included in each such Improvement Area will be responsible only for the payment of special taxes which will be levied to pay principal of and interest on the bonds secured by such special taxes of the proposed District which will be issued and sold to finance the design, construction, and acquisition of the Facilities; and
WHEREAS, this City Council desires to proceed to adopt its Resolution of Intention to initiate the proceedings to consider the establishment of such District, and the Improvement Areas therein, to set forth the proposed boundaries for such District, to describe the public facilities proposed to be financed by such District, to indicate the proposed rate and apportionment of a special tax sufficient to finance the acquisition or construction of such facilities and the administration of the District and any indebtedness incurred by the District and to fix a time and place for a public hearing on the establishment of such District; and WHEREAS, the Community Facilities District Law provides that the City Council may initiate proceedings to establish a community facilities district only if it has first considered and adopted local goals and policies concerning the use of the Community Facilities District Law; and WHEREAS, the City Council has adopted local goals and policies as required pursuant to the Community Facilities District Law; and
WHEREAS, this City Council desires to declare its intention to consider the establishment of such proposed District; and
WHEREAS, this City Council further desires to direct, pursuant to the provisions of Section 53321.5 of the Government Code, the preparation of a report to provide more detailed information relating to the proposed District, and the Improvement Areas therein, the proposed facilities to be financed through the District, and estimate of the cost of providing such facilities (the “Community Facilities District Report”).

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, is declaring its intention to establish proposed Community Facilities District No. 2025-1 (Village 8 East) of the City of Chula Vista, County of San Diego, State of California, including improvement areas therein, and taking other actions relating thereto under the provisions of the Act.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the foregoing recitals are correct and are incorporated herein by this reference.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that pursuant to Section 53350 of the Act, the City Council proposes to designate the following improvement areas within the proposed District: “Improvement Area No. 1 of Community Facilities District No. 2025-1 (Village 8 East), City of Chula Vista, County of San Diego, State of California” and “Improvement Area No. 2 of Community Facilities District No. 2025-1 (Village 8 East), City of Chula Vista, County of San Diego, State of California.” BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the boundaries of the proposed District and each Improvement Area are described and shown on the

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map entitled “Proposed Boundary of Community Facilities District No. 2025-1 (Village 8 East), City of Chula Vista, County of San Diego, State of California,” which is attached hereto as Exhibit “A” and is on file with the City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map in their office, and not later than 15 days prior to the date of the public hearing set forth herein, shall file a copy of said map with the County Recorder of the County of San Diego.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, it is the intention of this City Council to finance the acquisition or construction of certain facilities authorized to be acquired or constructed pursuant to the provisions of the Act, and to pay debt service on outstanding debt in connection with such facilities for each Improvement Area. A general description of the facilities proposed to be authorized to be acquired or constructed for each Improvement Area is set forth in Exhibit “B” attached hereto and incorporated herein by this reference (“Facilities”).

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that, except where funds are otherwise available, a special tax sufficient to finance the acquisition or construction of certain facilities and related incidental expenses including the payment of debt service (“Special Taxes”) secured by the recordation of a continuing lien against all taxable or nonexempt property in each Improvement Area of the proposed District, shall be annually levied within each Improvement Area of the proposed District.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, under no circumstances will Special Taxes levied in each Improvement Area in any fiscal year against any parcel used for private residential purposes be increased as consequence of delinquency or default by the owner of any other parcel or parcels within each Improvement Area of the proposed District by more than 10 percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. A parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, for further particulars as to the rate and method of apportionment of the Special Taxes to be levied on parcels of taxable property in each Improvement Area of the proposed District, reference is made to the attached and incorporated Exhibit “C” and Exhibit “D” (each a “Rate and Method”), which sets forth in sufficient detail the rate and method of apportionment of the Special Taxes for each Improvement Area for the Facilities proposed for each Improvement Area to allow each landowner or resident within each Improvement Area of the proposed District to clearly estimate the maximum amount that such person will have to pay.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, pursuant to Section 53340 of the Act, said Special Taxes of each Improvement Area shall be collected in the same manner and at the same time as ordinary ad valorem property 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, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act.

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BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, upon recordation of a notice of special tax lien for each Improvement Area pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Taxes shall attach to all non-exempt real property within the applicable Improvement Area of the proposed District, and that lien shall continue in full force and effect.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, the special tax obligation for any parcel may be prepaid and permanently satisfied in whole or in part pursuant to the provisions therefor contained in the Rate and Method.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that, pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of Special Taxes. Additionally, and as describe more fully in Section 53340 of the Act, properties receiving a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall be exempt from the Special Tax.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Council finds that the Facilities described herein are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of each Improvement Area of the proposed District.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that, pursuant to Section 53314.9 of the Act, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating the proposed District, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that each Improvement Area of the proposed District shall have its own bonded indebtedness authorization.

The maximum aggregate principal amount of bonded indebtedness for each Improvement Area shall be $50,000,000 for Improvement Area No. 1, and $75,000,000 for Improvement Area No. 2.

Pursuant to Section 53350 of the California Government Code, all proceedings for purposes of a bond election with respect to the portion of the bonded indebtedness allocated above to each of the proposed Improvement Areas and for the purpose of levying special taxes for the payment of the principal of and interest on the bonds which may be issued and sold to represent such bonded indebtedness and to finance the design, construction, and acquisition of Facilities shall apply only to the applicable Improvement Area.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that pursuant to Section 53329.5 of the Act, the City Council finds that the public interest will not be served by allowing the owners of property within the proposed District to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect

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to perform the work and enter into a written contract with the City for the construction of the Facilities pursuant to said Section 53329.5.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that a public hearing on the formation of the proposed District, the designation of the Improvement Areas therein, and the levy of special taxes pursuant to the applicable Rate and Method within each Improvement Area shall be held at a regular meeting at 5:00 p.m. on September 1, 2026, in the Council Chambers located at 276 Fourth Avenue, Chula Vista, California 91910.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the Act, and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the boundaries of the Improvement Areas of the proposed District, as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least fifteen (15) days before the date of the hearing and shall contain the information required by said Section 53322.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the officers of the City who will be responsible for providing the proposed Facilities to be provided within and financed by the proposed District, if it is established, shall study the proposed District, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the Facilities by type which will in their opinion be required to adequately meet the needs of the proposed District and their estimate of the fair and reasonable cost of providing the Facilities and the related incidental expenses to be incurred in connection therewith.

All such reports shall be made a part of the record of the hearing to be held pursuant to this Resolution.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the voting procedures to be followed within each Improvement Area shall be pursuant to Section 53326 of the Act and pursuant to the applicable provisions of the California Election Code.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that the City Council finds this Resolution is not subject to the California Environmental Quality Act (“CEQA”) in that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that if any provision of this Resolution or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications, and to this end, the provisions of this Resolution are declared to be severable.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that this Resolution shall become effective immediately.

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60297.00089\45137212.2
Presented by Approved as to form by
Roy Sapa’u Marco A. Verdugo
Deputy City Manager/Director of City Attorney
Development Services
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 28th day of July 2026 by the following vote:

AYES: Councilmembers:

NAYS: Councilmembers:

ABSENT: Councilmembers:

John McCann, Mayor
ATTEST:

STATE OF CALIFORNIA )

COUNTY OF SAN DIEGO )

CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2026-____ was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 28th day of July 2026.

Executed this 28
th day of July 2026.

Kerry K. Bigelow, MMC, City Clerk

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A-1
EXHIBIT “A”

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EXHIBIT “B”

DESCRIPTION OF PUBLIC FACILITIES
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST)

CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA The public facilities (the “Facilities”) authorized to be financed by the levy of special taxes within each Improvement Area of the proposed Community Facilities District No. 2025-1 (Village 8 East) (the “District”) include but are not limited to:
(a) Street and transportation improvements including parking, rights of way, curbs and gutters, and other improvements relating thereto; park acquisition and improvements; sewer improvements, including collection, transportation, treatment and sewer disposal; and general civic facilities such as civic center, police, fire suppression, library, corporation yard, and public recreation; and
(b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed District, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed District, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities.

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EXHIBIT “C”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST)
IMPROVEMENT AREA NO. 1 OF THE CITY OF CHULA VISTA, COUNTY OF SAN

DIEGO, STATE OF CALIFORNIA
[Attached]

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RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) IMPROVEMENT AREA 1

OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2025-1 (Village 8 East) Improvement Area 1 (“CFD No. 2025-1 IA 1” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD No. 2025- 1 IA 1, unless exempted by law or by the provisions of Section 5 hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

1. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of 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 related to the administration of CFD No. 2025-1 IA 1 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2025-1 IA 1, associated with applicable federal and State laws (including CDIAC); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses.

Administrative Expenses shall also include (1) amounts for Special Tax delinquency monitoring and (2) the estimated amounts or amounts advanced by the City or CFD No. 2025-1 IA 1, if any, for any other administrative purposes of CFD No. 2025-1 IA 1, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Affordable Residential Property” means all Parcels of Developed Property that consists of a home or Residential Unit in the CFD that has legally recorded affordability restrictions, including but not limited to deed restrictions, regulatory agreements, or other recorded instruments that limit rent for lower‐ income households. The determination of whether an Assessor’s Parcel qualifies as Affordable Residential Property shall be made by the CFD Administrator based on a review of applicable recorded

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documents and any supporting information provided to the City. “Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification.
“Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2025-1 IA 1 issued or incurred whether in one or more series, secured by the levy of Special Taxes.
“Boundary Map” means a recorded map which indicates the boundaries of CFD No. 2025-1 IA 1. “Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
“Building Square Footage” means the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax.
“CFD No. 2025-1 IA 1” and “CFD” means the City of Chula Vista Community Facilities District No. 2025- 1 Improvement Area 1.
“City” means the City of Chula Vista, California.
“City Council” means the City Council of the City acting as the legislative body of CFD No. 2025-1 IA 1 under the Act.

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“County” means the County of San Diego, California.
“Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Class” means any of the classes listed in Tables 1-4 set forth in Section 3A below.

Note: Land Uses Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map.
“Master Developer” means Home Fed Village 8E, LLC, a Delaware limited liability company or its successors or assignees.
“Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C. and 3.D. below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property.
“Multifamily Residential Property” means all Parcels of Developed Property that consists of a building or buildings comprised of Residential Units available for rent by the general public, not for sale to an end user, and under common management.

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“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement.
“Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8.A below.
“Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2025-1 IA 1 owned in fee by a property owner association, including any master orsub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below.
“Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2025-1 IA 1, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance (sale) or rental, separate from adjacent residential dwelling units, whether a Single Family Property, Multifamily Residential Property, or Affordable Residential Property. “Single Family Residential Property” means all Parcels of Developed Property initially available for sale that consists of a residential dwelling unit designed for occupancy by a single household for which a Building Permit has been issued for the construction of a Residential Unit excluding Multifamily Residential Property or Affordable Residential Property. “Special Tax” means any special tax levied within CFD No. 2025-1 IA 1 pursuant to the Act and this Rate and Method of Apportionment of Special Tax.
“Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2025-1 IA 1. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii)

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pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement.
“State” means the State of California.
“Taxable Property” means the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.
“Zone 1” means a geographic area consisting of a portion of Otay Ranch Village 8 East Planning Area R1 and R-2 in Attachment A, attached hereto. “Zone 2” means a geographic area consisting of a portion of Otay Ranch Village 8 East Planning Area R1 and R-2 as shown in Attachment A, attached hereto. “Zone 3” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-3 and R-4 as shown in Attachment A, attached hereto.
“Zone 4” means a geographic are consisting of Otay Ranch Village 8 East Planning Area VC-1 and VC-2 and VC-3 and VC-4/5 as depicted in Attachment A, attached hereto. “Zones” means, collectively, Zone 1, Zone 2, Zone 3, and Zone 4.

2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2025-1 IA 1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class and Single Family Residential Property shall be further classified based on its Building Square Footage.

In the event a Building Permit is issued for one or more parcels of Residential Property prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Residential Property for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such case, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Residential Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Residential Property for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Residential Property to the total number of Residential Property entitled to be developed on such Assessor’s Parcel. The total number of parcels of Residential Property

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entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded final map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator.

3. SPECIAL TAX RATES
A. Assigned Special Tax for Developed Property
The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Tables 1-4 below.

Table 1 – Zone 1
Assigned Special Tax Rates for Developed Property
Table 2 – Zone 2
Assigned Special Tax Rates for Developed Property
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,400 $3,021
2 Single Family Residential
Property
1,401 - 1,700 $3,112
3 Single Family Residential
Property
1,701 - 2,000 $3,374
4 Single Family Residential
Property
>= 2,001 $4,181
5 Non-Residential Property n/a $0
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,600 $3,240
2 Single Family Residential
Property
>= 1,601 $3,287
3 Non-Residential Property n/a $0

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Table 3 – Zone 3
Assigned Special Tax Rates for Developed Property
Table 4 – Zone 4
Assigned Special Tax Rates for Developed Property
On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax for Developed Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

B. Backup Special Tax for Developed Property
When a Final Map or a condominium plan is recorded within CFD No. 2025-1 IA 1, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential or NonResidential Property shall be determined as follows for each Zone:

For each Assessor’s Parcel of Residential and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 1, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula:

Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,500 $3,150
2 Single Family Residential
Property
1,501 - 1,715 $3,323
3 Single Family Residential
Property
1,716 - 1,930 $3,743
4 Single Family Residential
Property
1,931 - 2,145 $3,925
5 Single Family Residential
Property
2,146 - 2,360 $4,276
6 Single Family Residential
Property
2,361 - 2,575 $4,445
7 Single Family Residential
Property
>= 2,576 $4,815
8 Non-Residential Property n/a $0
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Affordable Residential
Property
n/a $40
2 Multifamily Residential
Property
n/a $40
3 Non-Residential Property n/a $40

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Zone 1 B = ($74,075 x A) / L
Zone 2 B = ($82,519 x A) / L
Zone 3 B = ($62,038 x A) / L
Zone 4 B = ($1,211 x A) / L
The terms have the following meanings:

B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential and Non-Residential Property in such Final Map. The land area applicable to a Taxable Property shall be computed from the Acreage of the Lot on which the Residential and Non-Residential Property is located, with the Acreage for such Lot allocated equally among the Taxable Properties located or to be located on such Lot.

L = For a Final Map, the number of Lots which are classified or to be classified as Residential and Non-Residential Property.

Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined for a specific Zone are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place.

On each July 1 commencing July 1, 2027, through July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

C. Maximum Special Tax for Developed Property
Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property within each Zone shall be the greater of the applicable Assigned Special Tax or Backup Special Tax for the appropriate Zone.

D. Maximum Special Tax for Undeveloped Property
The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026-27 shall be as follows for each Zone.

Zone 1 $74,075 per Acre
Zone 2 $82,519 per Acre
Zone 3 $62,038 per Acre
Zone 4 $1,211 per Acre
On each July 1 commencing July 1, 2027, through July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

E. Multiple Land Use Classes
If an Assessor’s Parcel may contain more than one Land Use Class, the Maximum Special Tax

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shall be the sum of the Maximum Special Taxes applicable to each Land Use Class present on the Parcel, as reasonably determined by the CFD Administrator.

F. Special Tax Reduction prior to issuance of Bonds
Prior to the issuance of the first series of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from the Master Developer and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service, net of administrative expenses, with respect to the amount of Bonds requested to be issued in such written request.

If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates shall be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential and NonResidential Property with the written consent of the CFD Administrator. It shall not be required that reductions among each Building Square Footage range of Residential Property or Acres of Non-Residential Property be proportional. Additionally, the CFD Public Facilities Costs amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in the form attached hereto as Attachment “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County.

Once the first series of bonds is issued for CFD No. 2025-1 IA 1, this paragraph 3.F shall become void.

4. METHOD OF APPORTIONMENT
For each Fiscal Year commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps for each Zone:

Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.

Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement.

Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax

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applicable to any other Assessor’s Parcel within CFD No. 2025-1 IA 1 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults.

5. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization and (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 1 to less than 12.75 Acres in Zone 1 and 3.95 Acres in Zone 2 and 18.01 Acres for Zone 3 and 34.89 Acres for Zone 4.

Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 1 to less than the specified acreages per Zone described in the previous sentence, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2025-1 IA 1 Special Taxes accordingly. Tax exempt status for the purpose of this section will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property.

If the use 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 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the applicable Special Taxes then in effect.

6. APPEALS
The CFD Administrator shall have primary responsibility for the interpretation and application of this RMA. Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, to correct the error:
(i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date,
(ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

If following such consultation and action by the CFD Administrator the property owner believes such error still exists, such person may file a written notice of appeal with the City Manager. Upon receipt of such notice, the City Manager or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Manager or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, to correct the error.

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The City Manager or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and making determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Manager or designee shall be final and binding to all people.

7. COLLECTION OF SPECIAL TAXES
Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes.

8. PREPAYMENT OF SPECIAL TAX OBLIGATION
A. Prepayment in Full
Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8:
“CFD Public Facilities Costs” means $34,000,000 or such lower amount as shall be determined by the CFD Administrator as an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2025- 1 IA 1.
“Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2025-1 IA 1.
“Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The

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CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 75 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes unless a shorter period is acceptable to the Fiscal Agent and the City.

The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below):
 Bond Redemption Amount plus Redemption Premium
 plus, Future Facilities Costs Prepayment Amount plus Defeasance Amount  plus, Prepayment Administrative Fees and Expenses less Reserve Fund Credit  less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows:

Step No.:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel.

3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2025-1 IA 1 assuming all Building Permits have been issued (build-out) within CFD No. 2025-1 IA 1, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid.

4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”).

6. Compute the Future Facilities Costs.

7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”).

8. Calculate the administrative fees and expenses of CFD No. 2025-1 IA 1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, the cost of any escrow agreement, verification report fees, fees of bond counsel or fiscal agent counsel, and the costs of recording any notices to evidence the prepayment and the redemption

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(the “Prepayment Administrative Fees”).

9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date.

10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.

11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”).

12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after considering such prepayment.

13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).

14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”).

15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2025-1 IA 1.

The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds.

The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full.

With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such

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Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

B. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula:

PP = (PE-A) x F+A
These terms have the following meaning:

PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation
A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service.

With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2025-1 IA 1 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel.

Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

9. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2076-77. The Special Tax will cease to be levied in an earlier Fiscal Year if the

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CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment.

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Attachment A
ATTACHMENT A – Boundary Map

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Attachment A

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Attachment B-1

ATTACHMENT B

CERTIFICATE TO AMEND THE SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 2025-1 IA 1

OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

TAX REDUCTION CERTIFICATE

1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the “RMA”) for Community Facilities District No. 2025-1 IA 1 of the City of Chula Vista (the “CFD”).

2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Tables 1-4 of the RMA.

3. The information in Tables 1-4 below, relating to the Assigned Special Tax for Developed Property within CFD No. 2025-1 IA 1 shall be amended and restated in full as follows:

Table 1 – Zone 1
Assigned Special Tax for Developed Property
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,400 $
2 Single Family Residential
Property
1,401 - 1,700 $
3 Single Family Residential
Property
1,701 - 2,000 $
4 Single Family Residential
Property
>= 2,001 $
5 Non-Residential Property n/a $

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Attachment B-2
Table 2 – Zone 2
Assigned Special Tax for Developed Property
Table 3 – Zone 3
Assigned Special Tax for Developed Property
Table 4 – Zone 4
Assigned Special Tax for Developed Property

4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,600 $
2 Single Family Residential
Property
>= 1,601 $
3 Non-Residential Property n/a $
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,500 $
2 Single Family Residential
Property
1,501 - 1,715 $
3 Single Family Residential
Property
1,716 - 1,930 $
4 Single Family Residential
Property
1,931 - 2,145 $
5 Single Family Residential
Property
2,146 - 2,360 $
6 Single Family Residential
Property
2,361 - 2,575 $
7 Single Family Residential
Property
>= 2,576 $
8 Non-Residential Property n/a $
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Affordable Residential
Property
n/a $
2 Multifamily Residential
Property
n/a $
3 Non-Residential Property n/a $

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Attachment B-3
No. 2025-1 IA 1 classified as Residential Property and Non-Residential Property shall be amended as follows:

For each Assessor’s Parcel of Residential Property and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property and NonResidential Property upon its development within the Final Map area of CFD No. 2025-1 IA 1, the Backup Special Tax shall be the rate per Lot calculated according to the following formula:

Zone 1: B = (R x A) / L
Zone 2: B = (R x A) / L
Zone 3: B = (R x A) / L
Zone 4: B = (R x A) / L
The terms have the following meanings:

B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential Property and Non-Residential Property in such Final Map. The land area applicable to a Residential Property and Non-Residential Property shall be computed from the Acreage of the Lot on which the Residential Property and Non-Residential Property are located, with the Acreage for such Lot allocated equally among all the Residential Property and Non-Residential Property located or to be located on such Lot.

L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property or Non-Residential Property
R = Backup Special Tax Rate per Acre

5. On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax Rates in Tables 1-4 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

6. Section 3 of the RMA may only be modified prior to the issuance of Bonds.

7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein.

I hereby declare under penalty of perjury that the above representations are true and correct.

Property Owner:

By: _____________________________________________ Date: ________________________

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Attachment B-4
By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2025-1 IA 1 receipt of this Certificate and modification of the RMA as set forth in this Certificate.

City of Chula Vista
By: _____________________________________________ Date: ________________________ CFD Administrator
Community Facilities District No. 2025-1 IA 1 of the City of Chula Vista By: _____________________________________________ Date: ________________________ CFD Administrator

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EXHIBIT “D”

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST)
IMPROVEMENT AREA NO. 2 OF THE CITY OF CHULA VISTA, COUNTY OF SAN

DIEGO, STATE OF CALIFORNIA
[Attached]

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RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) IMPROVEMENT AREA 2 OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF

CALIFORNIA
A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2025-1 (Village 8 East) Improvement Area 2 (“CFD No. 2025-1 IA 2” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD No. 2025- 1 IA 2, unless exempted by law or by the provisions of Section 5 hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

1. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of 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 related to the administration of CFD No. 2025-1 IA 2 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2025-1 IA 2 or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2025-1 IA 2, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2025-1 IA 2, associated with applicable federal and State laws (including CDIAC); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2025-1 IA 2, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses.

Administrative Expenses shall also include (1) amounts for Special Tax delinquency monitoring and (2) the estimated amounts or amounts advanced by the City or CFD No. 2025-1 IA 2, if any, for any other administrative purposes of CFD No. 2025-1 IA 2, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Affordable Residential Property” means all Parcels of Developed Property that consists of a home or residential unit in the CFD that has legally recorded affordability restrictions, including but not limited to deed restrictions, regulatory agreements, or other recorded instruments that limit rent for lower‐ income households. The determination of whether a Parcel qualifies as Affordable Residential Property shall be made by the CFD Administrator based on a review of applicable recorded documents and any supporting information provided to the City.

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“Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification.
“Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2025-1 IA 2 issued or incurred whether in one or more series, secured by the levy of Special Taxes.
“Boundary Map” means a recorded map which indicates the boundaries of CFD No. 2025-1 IA 2. “Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
“Building Square Footage” means the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax.
“CFD No. 2025-1 IA 2” and “CFD” means the City of Chula Vista Community Facilities District No. 2025- 1 Improvement Area 2.
“City” means the City of Chula Vista, California.
“City Council” means the City Council of the City acting as the legislative body of CFD No. 2025-1 IA 2 under the Act.
“County” means the County of San Diego, California.

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“Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Class” means any of the classes listed in Table 1set forth in Section 3A below.

Note: Land Uses Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map.
“Master Developer” means Home Fed Village 8E, LLC, a Delaware limited liability company or its successors or assignees.
“Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C. and 3.D. below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property.
“Multifamily Residential Property” means all Parcels of Developed Property that consists of a building or buildings comprised of Residential Units available for rent by the general public, not for sale to an end user, and under common management.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building

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Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement.
“Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8.A below.
“Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2025-1 IA 2 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below.
“Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2025-1 IA 2, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance (sale) or rental, separate from adjacent residential dwelling units, whether a Single Family Property, Multifamily Residential Property, or Affordable Residential Property. “Single Family Residential Property” means all Parcels of Developed Property initially available for sale that consists of a residential dwelling unit designed for occupancy by a single household for which a Building Permit has been issued for the construction of a Residential Unit excluding Multifamily Residential Property or Affordable Residential Property. “Special Tax” means any special tax levied within CFD No. 2025-1 IA 2 pursuant to the Act and this Rate and Method of Apportionment of Special Tax.
“Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2025-1 IA 2. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds

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for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement.
“State” means the State of California.
“Taxable Property” means the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.
“Zone 1” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-5 and R-6 as shown in Attachment A, attached hereto.
“Zone 2” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-7, R-8, R-9, and R-10 as shown in Attachment A, attached hereto.
“Zone 3” means a geographic area consisting of Otay Ranch Village 8 East Planning Area VC-6 and VC-7 as shown in Attachment A, attached hereto.
“Zones” means, collectively, Zone 1, Zone 2, and Zone 3.

2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2025-1 IA 2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class and Single Family Residential Property shall be further classified based on its Building Square Footage.

In the event a Building Permit is issued for one or more parcels of Residential Property prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Residential Property for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such case, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Residential Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Residential Property for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Residential Property to the total number of Residential Property entitled to be developed on such Assessor’s Parcel. The total number of parcels of Residential Property entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded final map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator.

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3. SPECIAL TAX RATES
A. Assigned Special Tax for Developed Property
The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Tables 1-3 below.

Table 1 – Zone 1
Assigned Special Tax Rates for Developed Property
Table 2 – Zone 2
Assigned Special Tax Rates for Developed Property
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
< = 1,400 $3,021
2 Single Family Residential
Property
1,401 - 1,700 $3,112
3 Single Family Residential
Property
1,701 - 2,000 $3,374
4 Single Family Residential
Property
> = 2,001 $4,181
5 Non-Residential Property n/a $0

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Table 3 – Zone 3
Assigned Special Tax Rates for Developed Property
On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

B. Backup Special Tax for Developed Property
When a Final Map or a condominium plan is recorded within CFD No. 2025-1 IA 2, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential or NonResidential Property shall be determined as follows:

For each Assessor’s Parcel of Residential and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 2, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula:

Zone 1 B = ($82,398 x A) / L
Zone 2 B = ($64,169 x A) / L
Zone 3 B = ($1,263 x A) / L
The terms have the following meanings:

B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential and Non-Residential Property in such Final Map. The land area applicable to a Taxable Property shall be computed from the Acreage of the Lot on which the Residential and Non-Residential Property is located, with the Acreage for such Lot allocated equally among the Taxable Properties located or to be located on such Lot.

L = For a Final Map, the number of Lots which are classified or to be classified as Residential and Non-Residential Property.

Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place.

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On each July 1 commencing July 1, 2027, through July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

C. Maximum Special Tax for Developed Property
Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property within each Zone shall be the greater of the applicable Assigned Special Tax or Backup Special Tax for the appropriate Zone.

D. Maximum Special Tax for Undeveloped Property
The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026-27 shall be as follows for each Zone.

Zone 1 $82,398 per Acre
Zone 2 $64,169 per Acre
Zone 3 $1,263 per Acre
On each July 1 commencing July 1, 2027, through July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

E. Multiple Land Use Classes
If an Assessor’s Parcel may contain more than one Land Use Class, the Maximum Special Tax shall be the sum of the Maximum Special Taxes applicable to each Land Use Class present on the Parcel, as reasonably determined by the CFD Administrator.

F. Special Tax Reduction prior to issuance of Bonds
Prior to the issuance of the first series of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from the Master Developer and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service, net of administrative expenses, with respect to the amount of Bonds requested to be issued in such written request.

If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates shall be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential and NonResidential Property with the written consent of the CFD Administrator. It shall not be required that reductions among each Building Square Footage range of Residential Property or Acres of Non-Residential Property be proportional. Additionally, the CFD Public Facilities Costs amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in the form attached hereto as Attachment “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County.

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Once the first series of Bonds is issued for CFD No. 2025-1 IA 2, this paragraph 3.F shall become void.

4. METHOD OF APPORTIONMENT
For each Fiscal Year commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps for each Zone:

Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.

Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement.

Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2025-1 IA 2 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults.

5. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization and (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 2 to less than 17.27 Acres in Zone 1 and 45.94 Acres in Zone 2 and 9.19 Acres for Zone 3. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 2 to less than the specified acreages per Zone described in the previous sentence, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2025-1 IA 2 Special Taxes accordingly. Tax exempt status for the purpose of this section will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property.

If the use 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 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the applicable Special Taxes then in effect.

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6. APPEALS
The CFD Administrator shall have primary responsibility for the interpretation and application of this RMA. Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, to correct the error:
(i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date,
(ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

If following such consultation and action by the CFD Administrator the property owner believes such error still exists, such person may file a written notice of appeal with the City Manager. Upon receipt of such notice, the City Manager or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Manager or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, to correct the error.

The City Manager or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and making determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Manager or designee shall be final and binding to all people.

7. COLLECTION OF SPECIAL TAXES
Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes.

8. PREPAYMENT OF SPECIAL TAX OBLIGATION
A. Prepayment in Full
Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8:
“CFD Public Facilities Costs” means $52,000,000 or such lower amount as shall be determined by the CFD Administrator as an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2025- 1 IA 2.

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“Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2025-1 IA 2.
“Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 75 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes unless a shorter period is acceptable to the Fiscal Agent and the City.

The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below):
 Bond Redemption Amount plus Redemption Premium
 plus, Future Facilities Costs Prepayment Amount plus Defeasance Amount  plus, Prepayment Administrative Fees and Expenses less Reserve Fund Credit  less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows:

Step No.:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already

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designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel.

3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2025-1 IA 2 assuming all Building Permits have been issued (build-out) within CFD No. 2025-1 IA 2, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid.

4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”).

6. Compute the Future Facilities Costs.

7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”).

8. Calculate the administrative fees and expenses of CFD No. 2025-1 IA 2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, , the cost of any escrow agreement, verification report fees, fees of bond counsel or fiscal agent counsel, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”).

9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date.

10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.

11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”).

12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after considering such prepayment.

13. If any capitalized interest for the Outstanding Bonds will not have been expended at the

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time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).

14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”).

15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2025-1 IA 2.

The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds.

The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full.

With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

B. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula:

PP = (PE-A) x F+A
These terms have the following meaning:

PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation

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A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service.

With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2025-1 IA 2 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel.

Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

9. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2076-77. The Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment.

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Attachment A-1
ATTACHMENT A – Boundary Map

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Attachment A-2

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Attachment A-3

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Attachment B-1

ATTACHMENT B

CERTIFICATE TO AMEND THE SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 2025-1 IA 2

OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

TAX REDUCTION CERTIFICATE

1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the “RMA”) for Community Facilities District No. 2025-1 IA 2 of the City of Chula Vista (the “CFD”).

2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Tables 1-3 of the RMA.

3. The information in Tables 1-3 below, relating to the Assigned Special Tax for Developed Property within CFD No. 2025-1 IA 2 shall be amended and restated in full as follows:

Table 1 – Zone 1
Assigned Special Tax for Developed Property

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Attachment B-2
Table 2 – Zone 2
Assigned Special Tax for Developed Property
Table 3 – Zone 3
Assigned Special Tax for Developed Property

4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD No. 2025-1 IA 2 classified as Residential Property and Non-Residential Property shall be amended as follows:

For each Assessor’s Parcel of Residential Property and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 2, the Backup Special Tax shall be the rate per Lot calculated according to the following formula:

Zone 1: B = (R x A) / L
Zone 2: B = (R x A) / L
Zone 3: B = (R x A) / L
The terms have the following meanings:

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Attachment B-3
B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential Property and Non-Residential Property in such Final Map. The land area applicable to a Residential Property and Non-Residential Property shall be computed from the Acreage of the Lot on which the Residential Property and Non-Residential Property are located, with the Acreage for such Lot allocated equally among all the Residential Property and Non-Residential Property located or to be located on such Lot.

L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property or Non-Residential Property
R = Backup Special Tax Rate per Acre

5. On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax Rates in Tables 1-3 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

6. Section 3 of the RMA may only be modified prior to the issuance of Bonds.

7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein.

I hereby declare under penalty of perjury that the above representations are true and correct.

Property Owner:

By: _____________________________________________ Date: ________________________ By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2025-1 IA 2 receipt of this Certificate and modification of the RMA as set forth in this Certificate.

City of Chula Vista
By: _____________________________________________ Date: ________________________ CFD Administrator
Community Facilities District No. 2025-1 IA 2 of the City of Chula Vista By: _____________________________________________ Date: ________________________ CFD Administrator

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RESOLUTION NO. 2026-____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHULA VISTA, CALIFORNIA, DECLARING THE NECESSITY

TO INCUR A BONDED INDEBTEDNESS ON BEHALF OF

EACH IMPROVEMENT AREA OF COMMUNITY FACILITIES
DISTRICT NO. 2025-1 (VILLAGE 8 EAST) OF THE CITY OF

CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF

CALIFORNIA, TO BE SECURED BY SPECIAL TAXES

LEVIED THEREIN TO PAY FOR THE ACQUISITION OR

CONSTRUCTION OF CERTAIN PUBLIC FACILITIES
WHEREAS, the City Council (“City Council”) of the City of Chula Vista, California (“City”), has initiated proceedings to create a community facilities district pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (“Act”) and the City of Chula Vista Community Facilities District Ordinance No. 2730, as amended, enacted pursuant to the powers reserved by the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (“Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”) to finance the acquisition or construction of certain authorized facilities described in Exhibit “A” attached hereto and incorporated herein by this reference (the “Facilities”), and to pay debt service on outstanding debt in connection with such facilities; and
WHEREAS, the proposed community facilities district shall hereinafter be referred to as Community Facilities District No. 2025-1 (Village 8 East) of the City of Chula Vista, County of San Diego, State of California (“District”); and
WHEREAS, HomeFed Corporation, the owners of certain real property within the City (“Owner”) have requested that in establishing the proposed District, the City Council designate two (2) separate improvement areas over portions of the property to be included therein (each an “Improvement Area” and, collectively, the “Improvement Areas”) so that special taxes may be levied within each Improvement Area to finance the Facilities and to secure a separate series of the bonds on behalf of each Improvement Area; and
WHEREAS, pursuant to Section 53350 of the Act, the City Council may, by resolution, designate a portion or portions of a community facilities district as one or more improvement areas for the financing of, or contribution to the financing of, specified public facilities and which will be subject to the levy and payment of special taxes to pay the principal of and interest on the bonds of the community facilities district which may be issued and sold to finance the design, construction, and acquisition of such public facilities; and

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WHEREAS, upon the designation of such an improvement area, all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds shall apply only to the improvement area; and
WHEREAS, it is, therefore, necessary and desirable that separate Improvement Areas be designated to include specific portions of the property to be included in the proposed District so that the property included in each such Improvement Area will be responsible only for the payment of special taxes which will be levied therein to finance Facilities and to pay principal of and interest on the bonds to finance such Facilities which will be secured by the special taxes in such Improvement Area; and
WHEREAS, it is the intention of this legislative body to finance the acquisition or construction of all or a portion of such Facilities through the issuance of bonds by each Improvement Area of the District, such bonds to be secured by special taxes to be levied on taxable property within each Improvement Area of the District, all as authorized pursuant to the Community Facilities District Law.

NOW, THEREFORE IT IS HEREBY RESOLVED by the City Council of the City of Chula Vista declares the necessity to incur a bonded indebtedness on behalf of each improvement area of Community Facilities District No. 2025-1 (Village 8 East) of the City of Chula Vista, County of San Diego, State of California, to be secured by special taxes levied therein to pay for the acquisition or construction of certain public facilities and that the above recitals are all true and correct and are incorporated herein by this reference.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that this City Council declares that the public convenience and necessity requires that a bonded indebtedness be incurred by each Improvement Area of the District to contribute to the financing of all or a portion of the Facilities.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that in order to finance the costs of the Facilities, it is necessary for each Improvement Area of the District to incur bonded indebtedness in one or more series in the maximum aggregate principal amount as follows: (i) for Improvement Area No. 1, $50,000,000 and (ii) for Improvement Area No. 2, $75,000,000. Indebtedness subject to the authorization shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act. Pursuant to Section 53350 of the California Government Code, all proceedings for purposes of authorizing the bonded indebtedness for each Improvement Area and for the purpose of levying special taxes for the payment of the principal of and interest on the bonds which may be issued and sold to represent such bonded indebtedness and to finance the design, construction, and acquisition of Facilities shall be conducted separate by each Improvement Area. The amount of the bonded indebtedness of each Improvement Area of the District may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is proposed to be incurred as authorized pursuant to the Act.

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BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the purpose for the proposed debt of the District is to contribute to the financing of the acquisition or construction of the Facilities.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that notice of a public hearing shall be given in substantially the following form:

NOTICE IS GIVEN THAT ON SEPTEMBER 1, 2026, AT THE HOUR OF 5:00 P.M. IN THE

REGULAR MEETING PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 276 FOURTH STREET, CHULA VISTA, CALIFORNIA 91910, A HEARING WILL BE HELD ON THE INTENTION OF THIS

LEGISLATIVE BODY TO INCUR A BONDED INDEBTEDNESS OF THE DISTRICT TO

CONTRIBUTE TO THE FINANCING OF THE FACILITIES, SUCH INDEBTEDNESS TO BE SECURED BY THE LEVY OF SPECIAL TAXES WITHIN THE DISTRICT. AT THE TIME

AND PLACE FIXED FOR SAID PUBLIC HEARING ANY PERSONS INTERESTED,

INCLUDING PERSONS OWNING PROPERTY WITHIN THE DISTRICT, MAY APPEAR

AND PRESENT ANY MATTERS RELATING TO THE PROPOSED INTENTION AND

NECESSITY FOR INCURRING A BONDED INDEBTEDNESS OF THE DISTRICT SUCH

INDEBTEDNESS WHICH WILL CONTRIBUTE TO THE FINANCING OF ALL OR A

PORTION OF THE FACILITIES AND WHICH WILL BE SECURED BY A SPECIAL TAX TO BE LEVIED THEREIN.

BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the City Clerk shall publish a notice of the time and place of said hearing pursuant to Section 53346 of the Government Code and may also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within each Improvement Area of the District. [SIGNATURES ON THE FOLLOWING PAGE]

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Presented by: Approved as to form by:

Roy Sapa’u Marco A. Verdugo
Deputy City Manager/ City Attorney
Development Services Director
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 28th day of July 2026, by the following vote:

AYES: Councilmembers:

NAYS: Councilmembers:

ABSENT: Councilmembers:

John McCann, Mayor
ATTEST:

STATE OF CALIFORNIA )

COUNTY OF SAN DIEGO )

CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2026-____ was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 28th day of July 2026.

Executed this 28th day of July 2026.

Kerry K. Bigelow, MMC, City Clerk

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EXHIBIT “A”

DESCRIPTION OF PUBLIC FACILITIES
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST),

CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA The public facilities (“Facilities”) authorized to be financed by the levy of special taxes within each Improvement Area of the proposed Community Facilities District No. 2025-1 (Village 8 East) (“District”) include but are not limited to:
(a) Street and transportation improvements including parking, rights of way, curbs and gutters, and other improvements relating thereto; park acquisition and improvements; sewer improvements, including collection, transportation, treatment and sewer disposal; and general civic facilities such as civic center, police, fire suppression, library, corporation yard, and public recreation; and
(b) The incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed District, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the proposed District, and (iii) any other expenses incidental to the construction, completion, and inspection of the public Facilities.

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RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) IMPROVEMENT AREA 1

OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2025-1 (Village 8 East) Improvement Area 1 (“CFD No. 2025-1 IA 1” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD No. 2025- 1 IA 1, unless exempted by law or by the provisions of Section 5 hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

1. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of 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 related to the administration of CFD No. 2025-1 IA 1 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2025-1 IA 1, associated with applicable federal and State laws (including CDIAC); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2025-1 IA 1, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses.

Administrative Expenses shall also include (1) amounts for Special Tax delinquency monitoring and (2) the estimated amounts or amounts advanced by the City or CFD No. 2025-1 IA 1, if any, for any other administrative purposes of CFD No. 2025-1 IA 1, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Affordable Residential Property” means all Parcels of Developed Property that consists of a home or Residential Unit in the CFD that has legally recorded affordability restrictions, including but not limited to deed restrictions, regulatory agreements, or other recorded instruments that limit rent for lower‐ income households. The determination of whether an Assessor’s Parcel qualifies as Affordable Residential Property shall be made by the CFD Administrator based on a review of applicable recorded documents and any supporting information provided to the City.

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“Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification.
“Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2025-1 IA 1 issued or incurred whether in one or more series, secured by the levy of Special Taxes.
“Boundary Map” means a recorded map which indicates the boundaries of CFD No. 2025-1 IA 1. “Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
“Building Square Footage” means the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax.
“CFD No. 2025-1 IA 1” and “CFD” means the City of Chula Vista Community Facilities District No. 2025- 1 Improvement Area 1.
“City” means the City of Chula Vista, California.
“City Council” means the City Council of the City acting as the legislative body of CFD No. 2025-1 IA 1 under the Act.
“County” means the County of San Diego, California.
“Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property

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but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Class” means any of the classes listed in Tables 1-4 set forth in Section 3A below.

Note: Land Uses Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map.
“Master Developer” means Home Fed Village 8E, LLC, a Delaware limited liability company or its successors or assignees.
“Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C. and 3.D. below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property.
“Multifamily Residential Property” means all Parcels of Developed Property that consists of a building or buildings comprised of Residential Units available for rent by the general public, not for sale to an end user, and under common management.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement.
“Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8.A below.
“Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No.

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2025-1 IA 1 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below.
“Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2025-1 IA 1, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance (sale) or rental, separate from adjacent residential dwelling units, whether a Single Family Property, Multifamily Residential Property, or Affordable Residential Property. “Single Family Residential Property” means all Parcels of Developed Property initially available for sale that consists of a residential dwelling unit designed for occupancy by a single household for which a Building Permit has been issued for the construction of a Residential Unit excluding Multifamily Residential Property or Affordable Residential Property. “Special Tax” means any special tax levied within CFD No. 2025-1 IA 1 pursuant to the Act and this Rate and Method of Apportionment of Special Tax.
“Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2025-1 IA 1. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement.
“State” means the State of California.
“Taxable Property” means the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed

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Property.
“Zone 1” means a geographic area consisting of a portion of Otay Ranch Village 8 East Planning Area R1 and R-2 in Attachment A, attached hereto. “Zone 2” means a geographic area consisting of a portion of Otay Ranch Village 8 East Planning Area R1 and R-2 as shown in Attachment A, attached hereto. “Zone 3” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-3 and R-4 as shown in Attachment A, attached hereto.
“Zone 4” means a geographic are consisting of Otay Ranch Village 8 East Planning Area VC-1 and VC-2 and VC-3 and VC-4/5 as depicted in Attachment A, attached hereto. “Zones” means, collectively, Zone 1, Zone 2, Zone 3, and Zone 4.

2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2025-1 IA 1 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class and Single Family Residential Property shall be further classified based on its Building Square Footage.

In the event a Building Permit is issued for one or more parcels of Residential Property prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Residential Property for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such case, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Residential Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Residential Property for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Residential Property to the total number of Residential Property entitled to be developed on such Assessor’s Parcel. The total number of parcels of Residential Property entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded final map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator.

3. SPECIAL TAX RATES
A. Assigned Special Tax for Developed Property
The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Tables 1-4 below.

Table 1 – Zone 1
Assigned Special Tax Rates for Developed Property

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Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,400 $3,021
2 Single Family Residential
Property
1,401 - 1,700 $3,112
3 Single Family Residential
Property
1,701 - 2,000 $3,374
4 Single Family Residential
Property
>= 2,001 $4,181
5 Non-Residential Property n/a $0

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Table 2 – Zone 2
Assigned Special Tax Rates for Developed Property
Table 3 – Zone 3
Assigned Special Tax Rates for Developed Property
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,600 $3,240
2 Single Family Residential
Property
>= 1,601 $3,287
3 Non-Residential Property n/a $0
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,500 $3,150
2 Single Family Residential
Property
1,501 - 1,715 $3,323
3 Single Family Residential
Property
1,716 - 1,930 $3,743
4 Single Family Residential
Property
1,931 - 2,145 $3,925
5 Single Family Residential
Property
2,146 - 2,360 $4,276
6 Single Family Residential
Property
2,361 - 2,575 $4,445
7 Single Family Residential
Property
>= 2,576 $4,815
8 Non-Residential Property n/a $0

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Table 4 – Zone 4
Assigned Special Tax Rates for Developed Property
On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax for Developed Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

B. Backup Special Tax for Developed Property
When a Final Map or a condominium plan is recorded within CFD No. 2025-1 IA 1, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential or NonResidential Property shall be determined as follows for each Zone:

For each Assessor’s Parcel of Residential and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 1, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula:

Zone 1 B = ($74,075 x A) / L
Zone 2 B = ($82,519 x A) / L
Zone 3 B = ($62,038 x A) / L
Zone 4 B = ($1,211 x A) / L
The terms have the following meanings:

B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential and Non-Residential Property in such Final Map. The land area applicable to a Taxable Property shall be computed from the Acreage of the Lot on which the Residential and Non-Residential Property is located, with the Acreage for such Lot allocated equally among the Taxable Properties located or to be located on such Lot.

L = For a Final Map, the number of Lots which are classified or to be classified as Residential and Non-Residential Property.

Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped Property for which the Backup Special Tax has been determined for a specific Zone are subsequently changed or modified by recordation of a new or amended Final Map, then the Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Affordable Residential
Property
n/a $40
2 Multifamily Residential
Property
n/a $40
3 Non-Residential Property n/a $40

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Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place.

On each July 1 commencing July 1, 2027, through July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

C. Maximum Special Tax for Developed Property
Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property within each Zone shall be the greater of the applicable Assigned Special Tax or Backup Special Tax for the appropriate Zone.

D. Maximum Special Tax for Undeveloped Property
The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026-27 shall be as follows for each Zone.

Zone 1 $74,075 per Acre
Zone 2 $82,519 per Acre
Zone 3 $62,038 per Acre
Zone 4 $1,211 per Acre
On each July 1 commencing July 1, 2027, through July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

E. Multiple Land Use Classes
If an Assessor’s Parcel may contain more than one Land Use Class, the Maximum Special Tax shall be the sum of the Maximum Special Taxes applicable to each Land Use Class present on the Parcel, as reasonably determined by the CFD Administrator.

F. Special Tax Reduction prior to issuance of Bonds
Prior to the issuance of the first series of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from the Master Developer and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service, net of administrative expenses, with respect to the amount of Bonds requested to be issued in such written request.

If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates shall be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential and NonResidential Property with the written consent of the CFD Administrator. It shall not be required that reductions among each Building Square Footage range of Residential Property or Acres of Non-Residential Property be proportional. Additionally, the CFD Public Facilities Costs amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant to this paragraph, as reasonably determined by the CFD Administrator. A certificate in the form attached hereto as Attachment “B” shall be used for purposes of evidencing the required written

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consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County.

Once the first series of bonds is issued for CFD No. 2025-1 IA 1, this paragraph 3.F shall become void.

4. METHOD OF APPORTIONMENT
For each Fiscal Year commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps for each Zone:

Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.

Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement.

Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2025-1 IA 1 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults.

5. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization and (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 1 to less than 12.75 Acres in Zone 1 and 3.95 Acres in Zone 2 and 18.01 Acres for Zone 3 and 34.89 Acres for Zone 4.

Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 1 to less than the specified acreages per Zone described in the previous sentence, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2025-1 IA 1 Special Taxes accordingly. Tax exempt status for the purpose of this section will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property.

If the use 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 above that would make such Assessor’s Parcel eligible to be

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classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the applicable Special Taxes then in effect.

6. APPEALS
The CFD Administrator shall have primary responsibility for the interpretation and application of this RMA. Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, to correct the error:
(i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date,
(ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

If following such consultation and action by the CFD Administrator the property owner believes such error still exists, such person may file a written notice of appeal with the City Manager. Upon receipt of such notice, the City Manager or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Manager or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, to correct the error.

The City Manager or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and making determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Manager or designee shall be final and binding to all people.

7. COLLECTION OF SPECIAL TAXES
Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes.

8. PREPAYMENT OF SPECIAL TAX OBLIGATION
A. Prepayment in Full
Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8:
“CFD Public Facilities Costs” means $34,000,000 or such lower amount as shall be determined

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by the CFD Administrator as an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2025- 1 IA 1.
“Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2025-1 IA 1.
“Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 75 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes unless a shorter period is acceptable to the Fiscal Agent and the City.

The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below):
 Bond Redemption Amount plus Redemption Premium
 plus, Future Facilities Costs Prepayment Amount plus Defeasance Amount  plus, Prepayment Administrative Fees and Expenses less Reserve Fund Credit  less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows:

Step No.:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For

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Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel.

3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2025-1 IA 1 assuming all Building Permits have been issued (build-out) within CFD No. 2025-1 IA 1, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid.

4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”).

6. Compute the Future Facilities Costs.

7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”).

8. Calculate the administrative fees and expenses of CFD No. 2025-1 IA 1, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, the cost of any escrow agreement, verification report fees, fees of bond counsel or fiscal agent counsel, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”).

9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date.

10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.

11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”).

12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after considering such

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prepayment.

13. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).

14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”).

15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2025-1 IA 1.

The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds.

The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full.

With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

B. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula:

PP = (PE-A) x F+A
These terms have the following meaning:

PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section 8.A

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F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation
A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service.

With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2025-1 IA 1 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel.

Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

9. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2076-77. The Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment.

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Attachment A
ATTACHMENT A – Boundary Map

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Attachment A

ATTACHMENT B

CERTIFICATE TO AMEND THE SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 2025-1 IA 1

OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

TAX REDUCTION CERTIFICATE

1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (the “RMA”) for Community Facilities District No. 2025-1 IA 1 of the City of Chula Vista (the “CFD”).

2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (the “County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Tables 1-4 of the RMA.

3. The information in Tables 1-4 below, relating to the Assigned Special Tax for Developed Property within CFD No. 2025-1 IA 1 shall be amended and restated in full as follows:

Table 1 – Zone 1
Assigned Special Tax for Developed Property
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,400 $
2 Single Family Residential
Property
1,401 - 1,700 $
3 Single Family Residential
Property
1,701 - 2,000 $
4 Single Family Residential
Property
>= 2,001 $
5 Non-Residential Property n/a $

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Attachment A
Table 2 – Zone 2
Assigned Special Tax for Developed Property
Table 3 – Zone 3
Assigned Special Tax for Developed Property
Table 4 – Zone 4
Assigned Special Tax for Developed Property

4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,600 $
2 Single Family Residential
Property
>= 1,601 $
3 Non-Residential Property n/a $
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
<= 1,500 $
2 Single Family Residential
Property
1,501 - 1,715 $
3 Single Family Residential
Property
1,716 - 1,930 $
4 Single Family Residential
Property
1,931 - 2,145 $
5 Single Family Residential
Property
2,146 - 2,360 $
6 Single Family Residential
Property
2,361 - 2,575 $
7 Single Family Residential
Property
>= 2,576 $
8 Non-Residential Property n/a $
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Affordable Residential
Property
n/a $
2 Multifamily Residential
Property
n/a $
3 Non-Residential Property n/a $

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No. 2025-1 IA 1 classified as Residential Property and Non-Residential Property shall be amended as follows:

For each Assessor’s Parcel of Residential Property and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property and NonResidential Property upon its development within the Final Map area of CFD No. 2025-1 IA 1, the Backup Special Tax shall be the rate per Lot calculated according to the following formula:

Zone 1: B = (R x A) / L
Zone 2: B = (R x A) / L
Zone 3: B = (R x A) / L
Zone 4: B = (R x A) / L
The terms have the following meanings:

B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential Property and Non-Residential Property in such Final Map. The land area applicable to a Residential Property and Non-Residential Property shall be computed from the Acreage of the Lot on which the Residential Property and Non-Residential Property are located, with the Acreage for such Lot allocated equally among all the Residential Property and Non-Residential Property located or to be located on such Lot.

L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property or Non-Residential Property
R = Backup Special Tax Rate per Acre

5. On each July 1, commencing July 1, 2027 through July 1, 2037, the Assigned Special Tax Rates in Tables 1-4 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

6. Section 3 of the RMA may only be modified prior to the issuance of Bonds.

7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein.

I hereby declare under penalty of perjury that the above representations are true and correct.

Property Owner:

By: _____________________________________________ Date: ________________________

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Attachment A
By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2025-1 IA 1 receipt of this Certificate and modification of the RMA as set forth in this Certificate.

City of Chula Vista
By: _____________________________________________ Date: ________________________ CFD Administrator
Community Facilities District No. 2025-1 IA 1 of the City of Chula Vista By: _____________________________________________ Date: ________________________ CFD Administrator

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RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (VILLAGE 8 EAST) IMPROVEMENT AREA 2 OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO,

STATE OF CALIFORNIA
A Special Tax shall be levied on all Taxable Property within the boundaries of Community Facilities District No. 2025-1 (Village 8 East) Improvement Area 2 (“CFD No. 2025-1 IA 2” and “CFD”) and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the CFD Administrator through the application of the procedures described below. All the real property within CFD No. 2025- 1 IA 2, unless exempted by law or by the provisions of Section 5 hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

1. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office. An Acre means 43,560 square feet of land. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of 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 related to the administration of CFD No. 2025-1 IA 2 including, but not limited to: the costs of preparing and computing the Annual Special Tax (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City, the County or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under the Fiscal Agent Agreement; the costs to the City, CFD No. 2025-1 IA 2 or any designee thereof complying with arbitrage rebate requirements, including without limitation rebate liability costs and periodic rebate calculations; the costs to the City, CFD No. 2025-1 IA 2, or any designee thereof complying with disclosure or reporting requirements of the City or CFD No. 2025-1 IA 2, associated with applicable federal and State laws (including CDIAC); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs to the City, CFD No. 2025-1 IA 2, or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees and third party expenses.

Administrative Expenses shall also include (1) amounts for Special Tax delinquency monitoring and (2) the estimated amounts or amounts advanced by the City or CFD No. 2025-1 IA 2, if any, for any other administrative purposes of CFD No. 2025-1 IA 2, including attorney’s fees and other costs related to commencing and pursuing any foreclosure of delinquent Special Taxes. “Affordable Residential Property” means all Parcels of Developed Property that consists of a home or residential unit in the CFD that has legally recorded affordability restrictions, including but not limited to deed restrictions, regulatory agreements, or other recorded instruments that limit rent for lower‐ income households. The determination of whether a Parcel qualifies as Affordable Residential Property shall be made by the CFD Administrator based on a review of applicable recorded documents and any supporting information provided to the City.

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“Annual Special Tax” means the Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel. “Assessor” means the Assessor of the County of San Diego. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the number assigned to a parcel designated by the Assessor for purposes of identification.
“Assigned Special Tax” means the Special Tax of that name described in Section 3.A below. “Backup Special Tax” means the Special Tax of that name described in Section 3.B below. “Bonds” means any bonds or other debt of CFD No. 2025-1 IA 2 issued or incurred whether in one or more series, secured by the levy of Special Taxes.
“Boundary Map” means a recorded map which indicates the boundaries of CFD No. 2025-1 IA 2. “Building Permit” means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
“Building Square Footage” means the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, or similar area. The determination of Building Square Footage shall be made by the CFD Administrator by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or by reference to appropriate records kept by the City or County. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement, for preparing the Annual Special Tax roll and/or calculating the Backup Special Tax.
“CFD No. 2025-1 IA 2” and “CFD” means the City of Chula Vista Community Facilities District No. 2025- 1 Improvement Area 2.
“City” means the City of Chula Vista, California.
“City Council” means the City Council of the City acting as the legislative body of CFD No. 2025-1 IA 2 under the Act.
“County” means the County of San Diego, California.

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“Debt Service” means for each Fiscal Year, the total amount of principal and interest payable on any Outstanding Bonds during the Calendar Year commencing on January 1 of such Fiscal Year. “Developed Property” means for each Fiscal Year, all Taxable Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year. An Assessor’s Parcel classified as Developed Property but for which the Building Permit that caused such Assessor’s Parcel to be classified as Developed Property has been cancelled and/or voided prior to the Fiscal Year for which Special Taxes are being levied shall be reclassified as Undeveloped Property, provided that the levy of the Annual Special Tax after such reclassification shall not be less than 1.1 times the annual Debt Service on all Outstanding Bonds. If Bonds have not been issued, an Assessor’s Parcel classified as Developed Property for which such a Building Permit has been cancelled and/or voided shall be reclassified as Undeveloped Property. “Exempt Property” means for each Fiscal Year, all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 5 below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which Building Permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Fiscal Agent” means the fiscal agent, trustee, or paying agent under the Fiscal Agent Agreement. “Fiscal Agent Agreement” means the agreement, indenture, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Class” means any of the classes listed in Table 1set forth in Section 3A below.

Note: Land Uses Class is not in reference to a property’s zoning designation. “Lot(s)” means an individual legal lot created by a Final Map for which a Building Permit for residential construction has been or could be issued. Notwithstanding the foregoing, in the case of an individual legal lot created by such a Final Map upon which Condominiums are entitled to be developed, the number of Lots allocable to such legal lot for purposes of calculating the Backup Special Tax applicable to such Final Map shall equal the number of Condominiums which are permitted to be constructed on such legal lot as shown on such Final Map.
“Master Developer” means Home Fed Village 8E, LLC, a Delaware limited liability company or its successors or assignees.
“Maximum Special Tax” means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Sections 3.C. and 3.D. below, which may be levied in a given Fiscal Year on such Assessor’s Parcel of Taxable Property.
“Multifamily Residential Property” means all Parcels of Developed Property that consists of a building or buildings comprised of Residential Units available for rent by the general public, not for sale to an end user, and under common management.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building

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Permit has been issued for the purpose of constructing one or more non-residential units or structures, including, but not limited to commercial and industrial uses. “Outstanding Bonds” means all Bonds which are deemed to be outstanding under the Fiscal Agent Agreement.
“Prepayment Amount” means the amount required to prepay the Special Tax Obligation in full for an Assessor’s Parcel as described in Section 8.A below.
“Property Owner Association Property” means any Assessor’s Parcel within the boundaries of CFD No. 2025-1 IA 2 owned in fee by a property owner association, including any master or sub-association. “Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the applicable Assigned Special Tax or Backup Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. “Proportionately” may similarly be applied to other categories of Taxable Property as listed in Section 3 below.
“Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2025-1 IA 2, which is owned by, or irrevocably offered for dedication to the federal government, the State of California, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by or irrevocably offered for dedication to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) has been issued for the purpose of constructing one or more Residential Units. “Residential Unit” means each separate residential dwelling unit that comprises an independent facility capable of conveyance (sale) or rental, separate from adjacent residential dwelling units, whether a Single Family Property, Multifamily Residential Property, or Affordable Residential Property. “Single Family Residential Property” means all Parcels of Developed Property initially available for sale that consists of a residential dwelling unit designed for occupancy by a single household for which a Building Permit has been issued for the construction of a Residential Unit excluding Multifamily Residential Property or Affordable Residential Property. “Special Tax” means any special tax levied within CFD No. 2025-1 IA 2 pursuant to the Act and this Rate and Method of Apportionment of Special Tax.
“Special Tax Obligation” means the total obligation of an Assessor’s Parcel of Taxable Property to pay the Special Tax for the remaining life of CFD No. 2025-1 IA 2. “Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay regularly scheduled Debt Service on all Outstanding Bonds; (ii) pay periodic costs on the Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on the Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds

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for all Outstanding Bonds; and (v) pay directly for eligible development impact fees and the acquisition or construction of eligible facilities, provided the inclusion of such amount does not increase the levy of the Special Tax on Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes in the previous Fiscal Year; less (vii) a credit for funds available to reduce the Annual Special Tax levy, as determined by the CFD Administrator pursuant to the Fiscal Agent Agreement.
“State” means the State of California.
“Taxable Property” means the Assessor’s Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section 5 below. “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.
“Zone 1” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-5 and R-6 as shown in Attachment A, attached hereto.
“Zone 2” means a geographic area consisting of Otay Ranch Village 8 East Planning Area R-7, R-8, R-9, and R-10 as shown in Attachment A, attached hereto.
“Zone 3” means a geographic area consisting of Otay Ranch Village 8 East Planning Area VC-6 and VC-7 as shown in Attachment A, attached hereto.
“Zones” means, collectively, Zone 1, Zone 2, and Zone 3.

2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2026-27, each Assessor’s Parcel within CFD No. 2025-1 IA 2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property shall further be classified as Developed Property or Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment of Special Tax determined pursuant to Sections 3 and 4 below. Furthermore, each Assessor’s Parcel of Developed Property shall be classified according to its applicable Land Use Class and Single Family Residential Property shall be further classified based on its Building Square Footage.

In the event a Building Permit is issued for one or more parcels of Residential Property prior to March 1 of the previous Fiscal Year and an Assessor’s Parcel Number has not yet been assigned to each such Residential Property for the current Fiscal Year, the applicable Assessor’s Parcel may be classified as both Developed Property and Undeveloped Property. In such case, the Special Taxes levied on such Assessor’s Parcel shall be the sum of the amount derived from the following (i) applying the Assigned Special Tax applicable to each Residential Property for which a Building Permit was issued prior to March 1 of the previous Fiscal Year and (ii) levying the acreage allocable to such actual or planned Residential Property for which a Building Permit has not been issued prior to March 1 of the previous Fiscal Year as Undeveloped Property; the allocable acreage shall be computed on a pro-rata basis based on the relative number of remaining Residential Property to the total number of Residential Property entitled to be developed on such Assessor’s Parcel. The total number of parcels of Residential Property entitled to be developed on the applicable Assessor’s Parcel shall be determined from the recorded final map, condominium plan, applicable site plan, plot plan, or other appropriate records kept by the City as reasonably determined by the CFD Administrator.

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3. SPECIAL TAX RATES
A. Assigned Special Tax for Developed Property
The Assigned Special Tax applicable to an Assessor’s Parcel classified as Developed Property commencing Fiscal Year 2026-27 shall be determined pursuant to Tables 1-3 below.

Table 1 – Zone 1
Assigned Special Tax Rates for Developed Property
Table 2 – Zone 2
Assigned Special Tax Rates for Developed Property
Land Use
Class
Land Use Type Building Square Footage Assigned Special Tax (per Residential Unit)
1 Single Family Residential
Property
< = 1,400 $3,021
2 Single Family Residential
Property
1,401 - 1,700 $3,112
3 Single Family Residential
Property
1,701 - 2,000 $3,374
4 Single Family Residential
Property
> = 2,001 $4,181
5 Non-Residential Property n/a $0

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Table 3 – Zone 3
Assigned Special Tax Rates for Developed Property
On each July 1 commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax for Developed Property shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

B. Backup Special Tax for Developed Property
When a Final Map or a condominium plan is recorded within CFD No. 2025-1 IA 2, the Backup Special Tax for Assessor’s Parcels of Developed Property classified as Residential or NonResidential Property shall be determined as follows:

For each Assessor’s Parcel of Residential and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 2, the Backup Special Tax for Fiscal Year 2026-27 shall be the rate per Lot calculated according to the following formula:

Zone 1 B = ($82,398 x A) / L
Zone 2 B = ($64,169 x A) / L
Zone 3 B = ($1,263 x A) / L
The terms have the following meanings:

B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential and Non-Residential Property in such Final Map. The land area applicable to a Taxable Property shall be computed from the Acreage of the Lot on which the Residential and Non-Residential Property is located, with the Acreage for such Lot allocated equally among the Taxable Properties located or to be located on such Lot.

L = For a Final Map, the number of Lots which are classified or to be classified as Residential and Non-Residential Property.

Notwithstanding the foregoing, if Assessor’s Parcels of Residential Property or Undeveloped

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Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Map, then the Backup Special Tax applicable to such Assessor’s Parcels shall be recalculated to equal the total amount of Backup Special Tax that would have been generated if such change did not take place.

On each July 1, commencing July 1, 2027, through July 1, 2037, the Backup Special Tax applicable to each Assessor’s Parcel of Residential shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

C. Maximum Special Tax for Developed Property
Each Fiscal Year, the Maximum Special Tax for an Assessor’s Parcel of Developed Property within each Zone shall be the greater of the applicable Assigned Special Tax or Backup Special Tax for the appropriate Zone.

D. Maximum Special Tax for Undeveloped Property
The Maximum Special Tax for Undeveloped Property commencing in Fiscal Year 2026-27 shall be as follows for each Zone.

Zone 1 $82,398 per Acre
Zone 2 $64,169 per Acre
Zone 3 $1,263 per Acre
On each July 1 commencing July 1, 2027, through July 1, 2037, the Maximum Special Tax applicable to each Assessor’s Parcel of Undeveloped Property within each Zone shall be increased by two percent (2.0%) of the amount in effect in the prior Fiscal Year.

E. Multiple Land Use Classes
If an Assessor’s Parcel may contain more than one Land Use Class, the Maximum Special Tax shall be the sum of the Maximum Special Taxes applicable to each Land Use Class present on the Parcel, as reasonably determined by the CFD Administrator.

F. Special Tax Reduction prior to issuance of Bonds
Prior to the issuance of the first series of Bonds, the Assigned Special Tax, Backup Special Tax, and Maximum Special Tax (collectively the “Special Tax Rates”) on Taxable Property may be reduced in accordance with, and subject to the conditions set forth in this paragraph. Upon the City’s receipt of a written request from the Master Developer and the CFD Administrator, the Special Tax Rates on Taxable Property may be reduced to a level which will provide not less than one hundred ten percent (110%) of the estimated debt service, net of administrative expenses, with respect to the amount of Bonds requested to be issued in such written request.

If it is reasonably determined by the CFD Administrator that the total effective tax rate on Residential Property exceeds 2%, the Special Tax Rates shall be reduced to the amount necessary to satisfy the maximum allowable effective tax rate requirement on Residential and NonResidential Property with the written consent of the CFD Administrator. It shall not be required that reductions among each Building Square Footage range of Residential Property or Acres of Non-Residential Property be proportional. Additionally, the CFD Public Facilities Costs amount in Section 8 shall be reduced commensurate with any reductions to the Special Tax Rates pursuant

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to this paragraph, as reasonably determined by the CFD Administrator. A certificate in the form attached hereto as Attachment “B” shall be used for purposes of evidencing the required written consent and effectuating the reduction to the Special Tax Rates. The reductions permitted pursuant to this paragraph shall be reflected in an amended Notice of Special Tax Lien which the City shall cause to be recorded with the County.

Once the first series of Bonds is issued for CFD No. 2025-1 IA 2, this paragraph 3.F shall become void.

4. METHOD OF APPORTIONMENT
For each Fiscal Year commencing Fiscal Year 2026-27, the CFD Administrator shall determine the Special Tax Requirement and levy the Special Tax on all Taxable Property in accordance with the following steps for each Zone:

Step 1: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.

Step 2: If additional monies are needed to satisfy the Special Tax Requirement after Step 1 has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property as needed to satisfy the Special Tax Requirement.

Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be increased Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the Maximum Special Tax for Developed Property as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a result of a delinquency or default in the payment of the Special Tax applicable to any other Assessor’s Parcel within CFD No. 2025-1 IA 2 by more than ten percent (10%) above what would have been levied in the absence of such delinquencies or defaults.

5. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels of Public Property, (ii) Assessor’s Parcels of Property Owner Association Property, (iii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization and (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 2 to less than 17.27 Acres in Zone 1 and 45.94 Acres in Zone 2 and 9.19 Acres for Zone 3. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in CFD No. 2025-1 IA 2 to less than the specified acreages per Zone described in the previous sentence, shall be classified as Taxable Property and will continue to be subject to the CFD No. 2025-1 IA 2 Special Taxes accordingly. Tax exempt status for the purpose of this section will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property.

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If the use 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 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the applicable Special Taxes then in effect.

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6. APPEALS
The CFD Administrator shall have primary responsibility for the interpretation and application of this RMA. Any property owner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, then the CFD Administrator shall take any of the following actions, in order of priority, to correct the error:
(i) Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year prior to the payment date,
(ii) Require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

If following such consultation and action by the CFD Administrator the property owner believes such error still exists, such person may file a written notice of appeal with the City Manager. Upon receipt of such notice, the City Manager or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. If the City Manager or designee determines an error still exists, the CFD Administrator shall take any of the actions described as (i), (ii) and (iii) above, in order of priority, to correct the error.

The City Manager or the designee thereof shall interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguities and making determinations relative to the administration of the Special Tax and any property owner appeals. The decision of the City Manager or designee shall be final and binding to all people.

7. COLLECTION OF SPECIAL TAXES
Collection of the Annual Special Tax shall be made by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for (i) other means of collecting the Special Tax, including direct billings thereof to the property owners; and (ii) judicial foreclosure of delinquent Annual Special Taxes.

8. PREPAYMENT OF SPECIAL TAX OBLIGATION
A. Prepayment in Full
Property owners may prepay and permanently satisfy the Special Tax Obligation by a cash settlement with the City as permitted under Government Code Section 53344. The following definitions apply to this Section 8:
“CFD Public Facilities Costs” means $52,000,000 or such lower amount as shall be determined by the CFD Administrator as an amount sufficient to pay development impact fees and acquire or construct the facilities to be financed under the Act and financing program for CFD No. 2025- 1 IA 2.

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“Improvement Fund” means the fund (regardless of its name) established pursuant to the Fiscal Agent Agreement to hold funds, which are currently available for expenditure to acquire or construct the facilities or pay development impact fees authorized to be funded by CFD No. 2025-1 IA 2.
“Future Facilities Costs” means the CFD Public Facilities Costs minus (i) costs previously paid from the Improvement Fund to acquire or construct the facilities or pay for development impact fees, (ii) monies currently on deposit in the Improvement Fund, and (iii) monies currently on deposit in an escrow or other designated fund that are expected to be available to finance CFD Public Facilities Costs.
“Outstanding Bonds” means all Previously Issued Bonds, which remain outstanding as of the first interest and/or principal payment date following the current Fiscal Year excluding Bonds to be redeemed at a later date with proceeds of prior Special Tax prepayments. “Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment. The Special Tax Obligation applicable to an Assessor’s Parcel of Developed Property, or Undeveloped Property for which a Building Permit has been issued may be prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor’s Parcel only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel eligible to prepay the Special Tax Obligation shall provide the CFD Administrator with written notice of intent to prepay and designate or identify the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the Prepayment Amount for such Assessor’s Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. Prepayment must be made at least 75 days prior to any redemption date for the Bonds to be redeemed with the proceeds of such prepaid Special Taxes unless a shorter period is acceptable to the Fiscal Agent and the City.

The Prepayment Amount (defined below) shall be calculated for each applicable Assessor’s Parcel or group of Assessor’s Parcels as summarized below (capitalized terms as defined below):
 Bond Redemption Amount plus Redemption Premium
 plus, Future Facilities Costs Prepayment Amount plus Defeasance Amount  plus, Prepayment Administrative Fees and Expenses less Reserve Fund Credit  less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined in Step 14 below) shall be calculated as follows:

Step No.:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. For Assessor’s Parcels of Developed Property, determine the Maximum Special Tax. For Assessor’s Parcels of Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for that Assessor’s Parcel as though it was already

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designated as Developed Property, based upon the Building Permit which has already been issued for that Assessor’s Parcel.

3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total expected Maximum Special Tax revenue for CFD No. 2025-1 IA 2 assuming all Building Permits have been issued (build-out) within CFD No. 2025-1 IA 2, excluding any Assessor’s Parcels for which the Special Tax Obligation has been previously prepaid.

4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid for all applicable Assessor’s Parcels (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (expressed as a percentage), if any, on the Outstanding Bonds to be redeemed at the first available call date (the “Redemption Premium”).

6. Compute the Future Facilities Costs.

7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Prepayment Amount”).

8. Calculate the administrative fees and expenses of CFD No. 2025-1 IA 2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds to be redeemed with the prepayment, , the cost of any escrow agreement, verification report fees, fees of bond counsel or fiscal agent counsel, and the costs of recording any notices to evidence the prepayment and the redemption (the “Prepayment Administrative Fees”).

9. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the expected redemption date for the Outstanding Bonds which, depending on the Fiscal Agent Agreement, may be as early as the next interest payment date.

10. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Prepayment Amount and the Prepayment Administrative Fees from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.

11. Subtract the amount computed in paragraph 10 from the amount computed in paragraph 9 (the “Defeasance Amount”).

12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Fiscal Agent Agreement) on the prepayment calculation date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if, after the Prepayment Amount is calculated, reserve funds are below 100% of the reserve requirement after considering such prepayment.

13. If any capitalized interest for the Outstanding Bonds will not have been expended at the

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time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the “Capitalized Interest Credit”).

14. The amount to prepay the Special Tax Obligation is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 8, and 11, less the amounts computed pursuant to paragraphs 12 and 13 (the “Prepayment Amount”).

15. From the Prepayment Amount, the sum of the amounts computed pursuant to paragraphs 4, 5, and 11, less the amounts computed pursuant to paragraphs 12 and 13 shall be deposited into the appropriate fund as established under the Fiscal Agent Agreement and be used to retire Outstanding Bonds or make Debt Service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 8 shall be retained by CFD No. 2025-1 IA 2.

The Prepayment Amount may be sufficient to redeem an amount other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Fiscal Agent Agreement to redeem Bonds to be used with the next prepayment of Bonds.

The CFD Administrator will confirm that all previously levied Special Taxes have been paid in full.

With respect to any Assessor’s Parcel for which the Special Tax Obligation is prepaid in full, once the CFD Administrator has confirmed that all previously levied Special Taxes have been paid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax Obligation and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay the Special Tax shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

B. Partial Prepayment
The Special Tax on an Assessor’s Parcel of Developed Property or Undeveloped Property for which a Building Permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section 8.A.; except that a partial prepayment shall be calculated according to the following formula:

PP = (PE-A) x F+A
These terms have the following meaning:

PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section 8.A F = the percentage by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax Obligation

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D-15
A = the Prepayment Administrative Fees and Expenses from Section 8.A The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax Obligation, (ii) the percentage by which the Special Tax Obligation shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax Obligation for an Assessor’s Parcel within sixty (60) days of the request and may charge a reasonable fee for providing this service.

With respect to any Assessor’s Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section 8.A., and (ii) indicate in the records of CFD No. 2025-1 IA 2 that there has been a partial prepayment of the Special Tax Obligation and that a portion of the Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the Maximum Special Tax, shall continue to be levied on such Assessor’s Parcel.

Notwithstanding the foregoing, no partial prepayment shall be allowed unless the aggregate amount of Maximum Special Taxes less Administrative Expenses that may be levied on Taxable Property, respectively, after the proposed partial prepayment is at least 1.1 times the Debt Service on all Outstanding Bonds in each Fiscal Year.

9. TERM OF SPECIAL TAX
The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement, but in any event not after Fiscal Year 2076-77. The Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined that all required interest and principal payments on the Bonds have been paid, no delinquent Special Taxes remain uncollected, and the City has covenanted that it will not issue any more Bonds (other than refunding Bonds) to be supported by Special Taxes levied under this Rate and Method of Apportionment.

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City of Chula Vista - City Council
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Attachment A-1
ATTACHMENT A – Boundary Map

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Attachment A-2

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Attachment A-3

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60297.00089\45137212.2
Attachment B-1

ATTACHMENT B

CERTIFICATE TO AMEND THE SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO. 2025-1 IA 2

OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

TAX REDUCTION CERTIFICATE

1. The undersigned property owners hereby request modification of the following information in the Rate and Method of Apportionment of Special Tax (“RMA”) for Community Facilities District No. 2025- 1 IA 2 of the City of Chula Vista (“CFD”).

2. Pursuant to Section 3 of the Rate and Method of Apportionment, as attached to the Notice of Special Tax Lien, recorded in the Official Records of the County of San Diego as Instrument No. XXXXXX on MM/DD/YYYY, the County of San Diego (“County”) hereby reduces the Assigned Special Tax for Developed Property within the CFD as set forth in Tables 1-3 of the RMA.

3. The information in Tables 1-3 below, relating to the Assigned Special Tax for Developed Property within CFD No. 2025-1 IA 2 shall be amended and restated in full as follows:

Table 1 – Zone 1
Assigned Special Tax for Developed Property

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City of Chula Vista - City Council
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60297.00089\45137212.2
Attachment B-2
Table 2 – Zone 2
Assigned Special Tax for Developed Property
Table 3 – Zone 3
Assigned Special Tax for Developed Property

4. The calculation of the Backup Special Tax for Assessor’s Parcels of Developed Property within CFD No. 2025-1 IA 2 classified as Residential Property and Non-Residential Property shall be amended as follows:

For each Assessor’s Parcel of Residential Property and Non-Residential Property or for each Assessor’s Parcel of Undeveloped Property to be classified as Residential Property and Non-Residential Property upon its development within the Final Map area of CFD No. 2025-1 IA 2, the Backup Special Tax shall be the rate per Lot calculated according to the following formula:

Zone 1: B = (R x A) / L
Zone 2: B = (R x A) / L
Zone 3: B = (R x A) / L
The terms have the following meanings:

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60297.00089\45137212.2
Attachment B-3
B = Backup Special Tax per Lot
A = Acreage classified or to be classified as Residential Property and Non-Residential Property in such Final Map. The land area applicable to a Residential Property and Non-Residential Property shall be computed from the Acreage of the Lot on which the Residential Property and Non-Residential Property are located, with the Acreage for such Lot allocated equally among all the Residential Property and Non-Residential Property located or to be located on such Lot.

L = For a Final Map, the number of Lots which are classified or to be classified as Residential Property or Non-Residential Property
R = Backup Special Tax Rate per Acre

5. On each July 1, commencing July 1, 2027, through July 1, 2037, the Assigned Special Tax Rates in Tables 1-3 and the Backup Special Tax applicable to each Assessor’s Parcel of Residential Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

6. Section 3 of the RMA may only be modified prior to the issuance of Bonds.

7. Upon execution of the certificate by the City and the CFD, the City shall cause an amended Notice of Special Tax Lien for the CFD to be recorded reflecting the modifications set forth herein.

I hereby declare under penalty of perjury that the above representations are true and correct.

Property Owner:

By: _____________________________________________ Date: ________________________ By execution hereof, the undersigned acknowledges, on behalf of the City of Chula Vista and CFD No. 2025-1 IA 2 receipt of this Certificate and modification of the RMA as set forth in this Certificate.

City of Chula Vista
By: _____________________________________________ Date: ________________________ CFD Administrator
Community Facilities District No. 2025-1 IA 2 of the City of Chula Vista By: _____________________________________________ Date: ________________________ CFD Administrator

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WOLF CANYON

AVNDA TEALING
BRONZE

CALLE GRANDON

CALLISTO

WHITMORE

LA MEDIA
MAIN
MINT

MILLENIA

CALLE ESCUELA

MAGDALENA

DEL SUENO

LA PALMITA
AVANT

PASEO ARCHER

PEABODY

SAVORIA

DELGADO

SANTA LUNA
1 2
3 4
5 6
7 8
30 31
33 32
34 35
36 59 60
78 Legend
0# Point Of Commencement
SpecialTaxBoundary
Improvement Area 1
Improvement Area 2
Current Parcel Boundary
Parcel Boundary
Not A Part

HARRIS & ASSOCIATES
101 PROGRESS, SUITE 250
IRVINE, CALIFORNIA 92618
800-827-4901

PROPOSED BOUNDARY OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(VILLAGE 8 EAST)

CITY OF CHULA VISTA

COUNTY OF SAN DIEGO, STATE OF CALIFORNIA
SHEET 1 OF 2

THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL

SHOWN ON THIS MAP SHALL BE THOSE LINES AND

DIMENSIONS AS SHOWN ON THE SAN DIEGO COUNTY
ASSESSOR’S MAPS FOR FISCAL YEAR 2025-2026.

ÄÆ75
ÄÆ282
ÄÆ905
ÄÆ54
ÄÆ67
ÄÆ274
ÄÆ209
ÄÆ94
ÄÆ163
ÄÆ125
ÄÆ52
§¨¦8
§¨¦15
§¨¦805
§¨¦5
CFD 2025-01
.
0 500 1,000
Feet
Coordinate System: NAD 1983 State Plane California V FIPS 0406 Feet Projection: Lambert Conformal Conic
Datum: North American 1983
False Easting: 6,561,666.666666666
False Northing: 1,640,416.666666667
Central Meridian: -116.25
Standard Parallel 1: 32.78333333333333
Standard Parallel 2: 33.88333333333333
Latitude Of Origin: 32.1666666666666
Being a Portion of Sections 15, and 22
T. 18S R. 01W
San Diego County
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63 64
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50 51
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9 10111213
14 15
16 17
18 19
20 21
22 2324
25 26
27 28
29 See Inset Map C
See Inset Map B
See Inset Map A
Inset Map A
Inset Map C
Inset Map B
# Bearing or Delta(Δ)/Radius(R) Distance
1 N62°10'49"E 1153.82'
2 Δ=02°43'27" R=6500.00 309.05'
3 N25°05'44"W 64.24'
4 N64°57'12"E 210.78'
5 Δ=01°54'58" R=2064.00 69.03'
6 N66°52'10"E 82.59'
7 Δ=03°07'45" R=1046.00 57.12'
8 N69°59'55"E 127.56'
9 N18°50'00"E 148.42'
10 N72°20'05"E 8.38'
11 Δ=01°10'05" R=567.00' 11.56'
12 N71°10'00"E 30.06'
13 N70°02'14"W 21.81'
14 N19°58'00"W 65.19'
15 Δ=23°13'00" R=641.00' 259.74'
16 N43°11'00"W 206.49'
17 Δ=03°55'00" R=641.00' 43.82'
18 N47°06'00"W 80.59'
19 Δ=26°09'00" R=579.00' 264.26'
20 N20°57'00"W 62.90'
21 N33°06'38"W 21.29'
22 N19°51'38"W 95.00'
23 N70°09'00"W 1.03'
24 N06°57'05"W 5.00'
25 N18°01'30"W 90.91'
26 N28°15'19"W 71.15'
27 N33°21'12"W 61.45'
28 N20°57'00"W 8.55'
29 Δ=05°37'00" R=664.00' 65.09'
30 N15°20'00"W 637.91'
31 N15°20'00"W 686.46'
32 N15°10'34"W 376.40'
33 N06°16'18"W 470.77'
34 N08°31'16"W 230.59'
35 N21°25'33"W 151.67'
36 N07°23'01"W 669.55'
37 N53°22'49"W 42.50'
38 Δ=26°08'01" R=77.50' 35.35'
39 N62°45'12"E 70.73'
# Bearing or Delta(Δ)/Radius(R) Distance
40 N54°52'00"E 69.36'
41 N61°06'00"E 45.51'
42 Δ=12°23'37" R=180.00' 38.94'
43 Δ=17°17'37" R=100.00' 30.18'
44 N66°06'00"E 47.26'
45 Δ=12°12'15" R=100.00' 21.30'
46 N53°47'45"E 110.34'
47 Δ=15°24'15" R=70.00' 18.82'
48 N69°12'00"E 49.56'
49 N69°24'00"E 55.80'
50 N66°21'00"E 28.33'
51 Δ=08°35'06" R=990.00' 148.34'
52 N78°11'40"E 53.60'
53 Δ=18°01'20" R=388.00' 122.04'
54 N83°47'00"E 24.41'
55 N77°55'00"E 15.87'
56 Δ=18°17'00" R=150.00' 47.87'
57 N83°48'00"E 28.01'
58 N79°48'31"E 41.59'
59 N77°45'44"E 272.67'
60 N72°58'00"E 72.06'
61 N59°07'41"W 2.79'
62 N14°51'00"W 16.68'
63 N07°34'00"W 29.90'
64 Δ=26°07'04" R=110.00' 50.14'
65 Δ=17°36'26" R=90.00' 27.66'
66 Δ=19°15'22" R=190.00' 63.86'
67 N35°20'00"W 27.26'
68 Δ=22°01'06" R=40.00' 15.37'
69 N13°18'54"W 8.21'
70 N19°26'00"W 101.00'
71 N18°28'30"W 154.46'
72 N11°57'00"W 37.10'
73 Δ=55°20'00" R=60.00' 57.94'
74 N67°17'00"W 21.17'
75 N74°43'00"W 27.62'
76 N18°40'05"W 70.23'
77 N72°00'00"E 27.00'
78 N18°40'05"W 3426.00'

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July 28, 2026 Post City Council Agenda
")11
")7
")15
")12
")18
")9
")8
")13
")19
")10
")14
")1
")6
")2
")3 ")4
")5
")16
")16
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")20 ")20

WOLF CANYON

AVNDA TEALING
BRONZE

CALLE GRANDON

CALLISTO

WHITMORE

LA MEDIA
MAIN
MINT

VENTARA CAM SOLERA

MILLENIA

CALLE ESCUELA

SAVORIA

MAGDALENA

LA PALMITA

DEL SUENO
AVANT

PASEO ARCHER

PEABODY

DELGADO

SANTA LUNA

HARRIS & ASSOCIATES
101 PROGRESS, SUITE 250
IRVINE, CALIFORNIA 92618
800-827-4901

PROPOSED BOUNDARY OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1
(VILLAGE 8 EAST)

CITY OF CHULA VISTA

COUNTY OF SAN DIEGO, STATE OF CALIFORNIA
SHEET 2 OF 2

THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL

SHOWN ON THIS MAP SHALL BE THOSE LINES AND

DIMENSIONS AS SHOWN ON THE SAN DIEGO COUNTY
ASSESSOR’S MAPS FOR FISCAL YEAR 2025-2026.

ÄÆ75
ÄÆ282
ÄÆ905
ÄÆ54
ÄÆ67
ÄÆ274
ÄÆ209
ÄÆ94
ÄÆ163
ÄÆ125
ÄÆ52
§¨¦8
§¨¦15
§¨¦805
§¨¦5
CFD 2025-01
.
0 500 1,000
Feet
Coordinate System: NAD 1983 State Plane California V FIPS 0406 Feet Projection: Lambert Conformal Conic
Datum: North American 1983
False Easting: 6,561,666.666666666
False Northing: 1,640,416.666666667
Central Meridian: -116.25
Standard Parallel 1: 32.78333333333333
Standard Parallel 2: 33.88333333333333
Latitude Of Origin: 32.1666666666666
Being a Portion of Sections 15, and 22
T. 18S R. 01W
San Diego County
Legend
SpecialTaxBoundary
Parcel Boundary
Current Parcel Boundary
Not A Part
Improvement Area 1
Improvement Area 1
Tax Zone 1
Tax Zone 2
Tax Zone 3
Tax Zone 4
Improvement Area 2
Improvement Area 2
Tax Zone 1
Tax Zone 2
Tax Zone 3
V8E_PG

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v . 0 0 5 P a g e | 1
July 28, 2026

ITEM TITLE
Agreements: Approve an Agreement with Southern Counties Oil Co., a CA Limited Partnership DBA SC Fuels, and an Amendment to the Agreement with SC Commercial, LLC DBA SC Fuels for Fuel Supply and Delivery Report Number: 25-0205
Location: No specific geographic location
Department: Public Works
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The proposed action is not a "Project" as defined under Section 15378 of the State California Environmental Quality Act (“CEQA”) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.

Recommended Action
Adopt the following resolutions:

A) Approving an agreement with Southern Counties Oil Co., a CA Limited Partnership DBA SC Fuels (“SCOC”); and
B) Approving an amended agreement with SC Commercial, LLC DBA SC Fuels (“SC Commercial”) to provide motor vehicle fuel supply and delivery.

SUMMARY
The City of Chula Vista (“City”) purchases gasoline and renewable diesel for use in City vehicles and equipment. The City recently solicited bids for motor vehicle fuel supply and delivery. Staff awarded a contract to “SC Fuels” for the purchase of motor vehicle fuel on an as-needed basis. On May 5, 2026, Council approved an agreement with SC Commercial for these services. Due to SC Commercial and SCOC being two separate legal entities, it is necessary to amend the agreement with SC Commercial and enter into a new agreement with SCOC. Staff recommends: 1) approving an agreement with SCOC, and 2) amending the agreement with SC Commercial to reduce the not-to-exceed amount.

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ENVIRONMENTAL REVIEW
The proposed action was reviewed for compliance with the California Environmental Quality Act (“CEQA”), and it was determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.

BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable

DISCUSSION
The City purchases gasoline and renewable diesel to support the operation of City vehicles and equipment.

The City maintains a fleet of over 650 vehicles and equipment units that utilize City fueling stations.

Request for Proposal Process
On October 24, 2025, the City posted a Request for Proposals (“RFP”) P15-2026 to PlanetBids, seeking a competitive proposal from qualified vendors to provide the Public Works Department with fuel supply and delivery services. Through PlanetBids, 48 potential bidders were notified with 19 prospective bidders downloading the bid documentation. Of the 19 prospective bidders, the City received five (5) responsive proposals.

A selection committee composed of Public Works Department staff completed a comprehensive evaluation of the proposals based on criteria that included the contractors’ experience with fuel supply and delivery, the ability to provide the services, price, and references.

Following the evaluation, the selection committee recommended award of the contract to “SC Fuels”. The proposal was submitted as a combined submission by SC Commercial and SCOC (both with the same DBA “SC Fuels”), which are two separate legal entities. A Notice of Intent to Award was issued to all firms that submitted proposals on February 5, 2026.

Scope of Work
SC Fuels shall provide bulk fuel services for unleaded, and renewable diesel fuels to all City fixed fuel sites on an “as needed” basis. City fuel sites include the following:
 Fire Station 3 (100 Moss St)
 Fire Station 4 (850 Paseo Ranchero)
 Fire Station 5 (341 Orange Ave)
 Fire Station 7 (1640 Santa Venetia)
 Public Works Corp Yard (1800 Maxwell Road)
Pricing
The price of the fuel is determined on the date of delivery and is based on the Oil Price Information Service (“OPIS”) “Unbranded Low Rack” fuel price benchmark for San Diego. The “Unbranded Low Rack” is a

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P a g e | 3
snapshot of the lowest supplier posting in the OPIS rack market for the day. The RFP required contractors to propose a Market Differential for the OPIS Rack market for each given delivery item listed in the RFP. The Market Differential is a four-digit decimal numerical value, that is added to the benchmark index for the price of a given fuel product. The market differential includes all cost and profit components determined by the contractor, excluding any applicable fuel taxes. The rack price plus the market differential is the total price to be paid by the City upon delivery of fuel. To ensure the City is receiving the best possible price, staff will monitor the fuel delivery invoices.

Original Agreement with SC Commercial
On May 5, 2026, Council approved the agreement with SC Commercial for the purchase of fuel supply and delivery based on the aforementioned RFP process. At the time of award, the agreement was entered into solely with SC Commercial, DBA SC Fuels under the understanding that the single DBA designation would cover all operational vehicles required for the required services.

In practice, the DBA “SC Fuels” is utilized by two separate legal entities (SC Commercial and SCOC) that split the operational logistics by volume, with SC Commercial handling deliveries for up to 3,800 gallons of fuel and SCOC handling deliveries for up to 7,800 gallons of diesel/8,800 gallons of unleaded gasoline. Due to both SC Commercial and SCOC conducting business under a single, shared DBA “SC Fuels”, the division of labor by volume limits was inadvertently not reflected in the final contract structure, resulting in a need to more accurately reflect the division of labor. The agreement with SC Commercial included an initial threeyear agreement term with two (2) one-year options to extend and a not-to-exceed amount listed on the SC Commercial agreement as $6,000,000. Council approved a total not-to-exceed amount by resolution of $10,000,000 intended to cover the totality of the required services to be completed by SC Fuels, which includes work to be done by both SC Commercial and SCOC.

Amendment with SC Commercial and New Agreement with SCOC The fuel storage tank capacity at the Fire Station sites range from 500 gallons to 2,000 gallons. The capacity at these sites make it ideal for SC Commercial’s bobtail truck to make these volume deliveries. (See Exhibit E of the original agreement for tank sizes at each location.) The Public Works Corp Yard fuel site has a storage capacity of 12,000 gallons each (unleaded gasoline & diesel). SCOC’s full transport or “truck and trailer” deliveries can supply up to 7,800 gallons of diesel or 8,800 gallons of unleaded gasoline. This truck delivery size is more suitable for the fuel needs of the Public Works Corp Yard fuel site and makes delivery more cost effective. It is important to note, that truck and trailers are not able to deliver to the Fire Stations sites due to size constraints.

Staff recommends approval of an amendment to the agreement with SC Commercial and approving an agreement with SCOC. As previously noted, SC Commercial and SCOC are two separate legal entities with a shared DBA “SC Fuels” and therefore, two separate agreements are required to reflect the division of labor.

Each agreement for fuel supply and delivery will be for an initial term of three (3) years, with two (2) oneyear options to extend.

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