16 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 1) (Olsen/South Chandler Ranch - Facilities) the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 1) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.
6. After the execution by CFD No. 2022-1N (IA No. 1) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 1) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 1) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 1) set forth in such Certificate to Amend the Special Tax.
7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.
I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 1) may directly bill the Special Tax, may collect the Special Tax 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.
J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2073-2074. The Special Taxes 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 as described in Section D.
Attachment 5
A-1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 1) (Olsen/South Chandler Ranch - Facilities)
EXHIBIT A
CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 1
OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH
CHANDLER RANCH - FACILITIES)
TAX REDUCTION CERTIFICATE
1. Pursuant to Section H 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 Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 1) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 1).
2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.
3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 1) shall be amended and restated in full as follows:
Attachment 5
A-2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 1) (Olsen/South Chandler Ranch - Facilities) Table A-1A: Assigned Special Tax for Developed Property (Zone 1) Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,900 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,700 - 2,899 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,500 - 2,699 SF) [$ ] PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,300 - 2,499 SF) [$ ] PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (2,100 - 2,299 SF) [$ ] PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) [$ ] PER DWELLING UNIT 7 RESIDENTIAL PROPERTY (1,700 - 1,899 SF) [$ ] PER DWELLING UNIT 8 RESIDENTIAL PROPERTY (< 1,700 SF) [$ ] PER DWELLING UNIT 9 NON-RESIDENTIAL PROPERTY $44,270 PER ACRE
Table A-1B: Assigned Special Tax for Developed Property (Zone 2) Land Use
Class
Description Assigned Special Tax
10 RESIDENTIAL PROPERTY (>= 2,100 SF) [$ ] PER DWELLING UNIT 11 RESIDENTIAL PROPERTY (1,850 - 2,099 SF) [$ ] PER DWELLING UNIT 12 RESIDENTIAL PROPERTY (1,600 - 1,849 SF) [$ ] PER DWELLING UNIT 13 RESIDENTIAL PROPERTY (< 1,600 SF) [$ ] PER DWELLING UNIT 14 NON-RESIDENTIAL PROPERTY $73,163 PER ACRE
4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 1), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 1) to be recorded reflecting the modifications set forth herein.
Submitted:
CFD ADMINISTRATOR
By: Date:
By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 1), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.
Improvement Area No. 1 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.
By: Date as of:
Attachment 5
APPENDIX A-2
City of Paso Robles
Community Facilities District Report
Community Facilities District No. 2022-1N
RATE AND METHOD OF
APPORTIONMENT -
IMPROVEMENT AREA
NO. 2
Attachment 5
1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)
AMENDED AND RESTATED RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 2 OF
CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N
(OLSEN/SOUTH CHANDLER RANCH - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 2 ("IA No. 2") of City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) ("CFD No. 2022-1N (IA No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2024-2025, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2022-1N (IA No. 2), unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A DEFINITIONS
The terms hereinafter set forth have the following meanings:
"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, parcel map, condominium plan, or other recorded County parcel map.
"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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1N (IA No. 2): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1N (IA No. 2) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1N (IA No. 2) or any designee thereof of complying with City, CFD No. 2022-1N (IA No. 2), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1N (IA No. 2), or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1N (IA No. 2) for any other administrative purposes of CFD No. 2022-1N (IA No. 2), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.
Attachment 5
2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2022-1N.
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2022-1N for IA No. 2 under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2022-1N (IA No. 2).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 2022-1N" means the City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch – Facilities).
“City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year. “Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.
“Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any Attachment 5
3 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of CFD No. 2022-1N.
"Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2022-1N (IA No. 2).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association Attachment 5
4 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) or homeowners association, including any master or sub-association, created for CFD No. 2022-1N (IA No. 2).
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1N (IA No. 2) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned 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. For Taxable Property Owner Association 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 Taxable Property Owner Association Property. For Taxable Public 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 Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2022-1N (IA No. 2) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act 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, irrevocably offered for dedication to, or dedicated 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. “Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities). "Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount Attachment 5
5 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2022-1N (IA No. 2) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1N (IA No. 2) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.
B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2024-2025, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.
The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the 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 in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.
C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
Attachment 5
6 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
Table 1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,300 SF) $6,588 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,200 - 2,299 SF) $6,391 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,100 - 2,199 SF) $6,076 PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,000 - 2,099 SF) $5,760 PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,900 - 1,999 SF) $5,563 PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (< 1,900 SF) $5,248 PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $34,020 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $34,020, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.
Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.
2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.
3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.
C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.
C.3 Undeveloped Property, Taxable Property Owner Association Property, Attachment 5
7 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) and/or Taxable Public Property.
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $34,020 per Acre.
C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.
D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have 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 applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Attachment 5
8 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Parcel as needed to satisfy the Special Tax Requirement.
Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E EXEMPTIONS
No Special Tax shall be levied on Property Owner Association Property or Public Property in CFD No. 2022-1N (IA No. 2), provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 30.1 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof in CFD No. 2022- 1N (IA No. 2) become Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.
Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.
In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.
F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.
During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.
If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.
G PREPAYMENT
Attachment 5
9 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) The following additional definitions apply to this Section G:
“CFD Public Facilities” means $14,400,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2022-1N (IA No. 2), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of the Special Tax.
G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.
The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully 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 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 intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 2) in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such Prepayment Amount.
The Prepayment Amount shall be calculated as follows (capitalized terms are defined below):
Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
Attachment 5
10 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Cost.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel, which amount shall not be less than $0 (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from the Prepayment Amount.
9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Attachment 5
11 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of CFD No. 2022-1N (IA No. 2), including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of:
(a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the Prepayment Amount, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the Prepayment Amount from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.
15. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit, less the Capitalized Interest Credit.
16. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by CFD No. 2022-1N (IA No. 2).
The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Attachment 5
12 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by 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 G.1; F = The percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation; and
A = The Administrative Fees and Expenses determined pursuant to Section G.1.
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 2) in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment for the Assessor’s Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2022-1N (IA No. 2) that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.
Attachment 5
13 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)
H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means, with respect to the Dwelling Units in each Plan Type, as of the date of the applicable Price Point Study, the base price of such Dwelling Units, estimated by the Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades.
"Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2022-1N (IA No. 2) as identified in the Price Point Study. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2022-1N (IA No. 2) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2022-1N (IA No. 2), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022-1N (IA No. 2), the City, any owner of real property in CFD No. 2022- 1N (IA No. 2), or any real property in CFD No. 2022-1N (IA No. 2), and (e) is not connected with CFD No. 2022-1N (IA No. 2) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1N (IA No. 2) or the County.
"Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2022-1N (IA No. 2), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means, 1.90%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2022- 1N (IA No. 2) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).
Attachment 5
14 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Prior to the issuance of a second series of Bonds (or the first series of Bonds, if such series is the final series of Bonds, as determined by the City), the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2022- 1N (IA No. 2) for evaluating the Special Tax:
Step No.:
1. At least 30 days prior to the issuance of Bonds, a Price Point Study shall be completed and delivered to the CFD Administrator.
2. The CFD Administrator shall determine the Total Tax Burden and Total Effective Tax Rate for each Plan Type in CFD No. 2022-1N (IA No. 2).
3. Separately, for each Land Use Class of for-sale Residential Property in CFD No. 2022-1N (IA No. 2), the CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2022-1N (IA No. 2) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2022-1N (IA No. 2).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2022-1N (IA No. 2) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2022-1N (IA No. 2), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.
4. If the Assigned Special Tax for any Land Use Class is revised pursuant to step
3.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2022-1N (IA No. 2). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 3.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 3.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.
5. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2022-1N (IA No. 2) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 2) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that Attachment 5
15 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.
6. After the execution by CFD No. 2022-1N (IA No. 2) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 2) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 2) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 2) set forth in such Certificate to Amend the Special Tax.
7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.
I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 2) may directly bill the Special Tax, may collect the Special Tax 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.
J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2073-2074. The Special Taxes 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 as described in Section D.
Attachment 5
A-1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities)
EXHIBIT A
CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 2
OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH
CHANDLER RANCH - FACILITIES)
TAX REDUCTION CERTIFICATE
1. Pursuant to Section H 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 Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 2) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 2).
2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.
3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 2) shall be amended and restated in full as follows:
Attachment 5
A-2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 2) (Olsen/South Chandler Ranch - Facilities) Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Residential Floor Area Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,300 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,200 - 2,299 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,100 - 2,199 SF) [$ ] PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,000 - 2,099 SF) [$ ] PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (1,900 - 1,999 SF) [$ ] PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (< 1,900 SF) [$ ] PER DWELLING UNIT 7 NON-RESIDENTIAL PROPERTY $34,020 PER ACRE
4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 2), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 2) to be recorded reflecting the modifications set forth herein.
Submitted:
CFD ADMINISTRATOR
By: Date:
By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 2), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.
Improvement Area No. 2 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.
By: Date as of:
Attachment 5
APPENDIX A-3
City of Paso Robles
Community Facilities District Report
Community Facilities District No. 2022-1N
RATE AND METHOD OF
APPORTIONMENT -
IMPROVEMENT AREA
NO. 3
Attachment 5
1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities)
AMENDED AND RESTATED RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 3 OF
CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N
(OLSEN/SOUTH CHANDLER RANCH - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 3 ("IA No. 3”) of City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) ("CFD No. 2022-1N (IA No. 3)") and collected each Fiscal Year commencing in Fiscal Year 2024-2025, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2022-1N (IA No. 3), unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A DEFINITIONS
The terms hereinafter set forth have the following meanings:
"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, parcel map, condominium plan, or other recorded County parcel map.
"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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1N (IA No. 3): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1N (IA No. 3) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1N (IA No. 3) or any designee thereof of complying with City, CFD No. 2022-1N (IA No. 3), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1N (IA No. 3), or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1N (IA No. 3) for any other administrative purposes of CFD No. 2022-1N (IA No. 3), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.
Attachment 5
2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2022-1N.
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2022-1N for IA No. 3 under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2022-1N (IA No. 3).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 2022-1N" means the City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch – Facilities).
“City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year. “Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.
“Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any Attachment 5
3 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 3” or "IA No. 3” means Improvement Area No. 3 of CFD No. 2022-1N.
"Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2022-1N (IA No. 3).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association Attachment 5
4 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) or homeowners association, including any master or sub-association, created for CFD No. 2022-1N (IA No. 3).
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1N (IA No. 3) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned 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. For Taxable Property Owner Association 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 Taxable Property Owner Association Property. For Taxable Public 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 Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2022-1N (IA No. 3) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act 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, irrevocably offered for dedication to, or dedicated 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. “Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities). "Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount Attachment 5
5 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2022-1N (IA No. 3) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1N (IA No. 3) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.
B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2024-2025, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.
The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the 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 in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.
C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
Attachment 5
6 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
Table 1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 1,400 SF) $4,538 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (1,300 - 1,399 SF) $4,381 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (< 1,300 SF) $4,223 PER DWELLING UNIT 4 NON-RESIDENTIAL PROPERTY $90,993 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $90,993, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.
Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.
2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.
3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.
C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.
C.3 Undeveloped Property, Taxable Property Owner Association Property, and/or Taxable Public Property.
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be Attachment 5
7 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) $90,993 per Acre.
C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.
D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have 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 applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Attachment 5
8 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) Proportionately on each Assessor’s Parcel of Taxable Public Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E EXEMPTIONS
No Special Tax shall be levied on Property Owner Association Property or Public Property in CFD No. 2022-1N (IA No. 3), provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 6.1 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof in CFD No. 2022- 1N (IA No. 3) become Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.
Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.
In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.
F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.
During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.
If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.
G PREPAYMENT
The following additional definitions apply to this Section G:
Attachment 5
9 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) “CFD Public Facilities” means $6,900,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2022-1N (IA No. 3), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of the Special Tax.
G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.
The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully 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 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 intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 3) in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such Prepayment Amount.
The Prepayment Amount shall be calculated as follows (capitalized terms are defined below):
Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Attachment 5
10 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Cost.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel, which amount shall not be less than $0 (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from the Prepayment Amount.
9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
Attachment 5
11 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities)
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of CFD No. 2022-1N (IA No. 3), including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of:
(a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the Prepayment Amount, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the Prepayment Amount from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.
15. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit, less the Capitalized Interest Credit.
16. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by CFD No. 2022-1N (IA No. 3).
The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Attachment 5
12 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by 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 G.1; F = The percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation; and
A = The Administrative Fees and Expenses determined pursuant to Section G.1.
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 3) in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment for the Assessor’s Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2022-1N (IA No. 3) that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.
H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
Attachment 5
13 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) "Base Price" means, with respect to the Dwelling Units in each Plan Type, as of the date of the applicable Price Point Study, the base price of such Dwelling Units, estimated by the Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades.
"Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2022-1N (IA No. 3) as identified in the Price Point Study. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2022-1N (IA No. 3) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2022-1N (IA No. 3), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022-1N (IA No. 3), the City, any owner of real property in CFD No. 2022- 1N (IA No. 3), or any real property in CFD No. 2022-1N (IA No. 3), and (e) is not connected with CFD No. 2022-1N (IA No. 3) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1N (IA No. 3) or the County.
"Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2022-1N (IA No. 3), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means, 1.90%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2022- 1N (IA No. 3) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).
Prior to the issuance of a second series of Bonds (or the first series of Bonds, if such series is the final series of Bonds, as determined by the City), the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2022- Attachment 5
14 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) 1N (IA No. 3) for evaluating the Special Tax:
Step No.:
1. At least 30 days prior to the issuance of Bonds, a Price Point Study shall be completed and delivered to the CFD Administrator.
2. The CFD Administrator shall determine the Total Tax Burden and Total Effective Tax Rate for each Plan Type in CFD No. 2022-1N (IA No. 3).
3. Separately, for each Land Use Class of for-sale Residential Property in CFD No. 2022-1N (IA No. 3), the CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2022-1N (IA No. 3) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2022-1N (IA No. 3).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2022-1N (IA No. 3) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2022-1N (IA No. 3), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.
4. If the Assigned Special Tax for any Land Use Class is revised pursuant to step
3.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2022-1N (IA No. 3). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 3.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 3.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.
5. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2022-1N (IA No. 3) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 3) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.
Attachment 5
15 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities)
6. After the execution by CFD No. 2022-1N (IA No. 3) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 3) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 3) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 3) set forth in such Certificate to Amend the Special Tax.
7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.
I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 3) may directly bill the Special Tax, may collect the Special Tax 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.
J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2073-2074. The Special Taxes 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 as described in Section D.
Attachment 5
A-1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities)
EXHIBIT A
CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 3
OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH
CHANDLER RANCH - FACILITIES)
TAX REDUCTION CERTIFICATE
1. Pursuant to Section H 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 Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 3) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 3).
2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.
3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 3) shall be amended and restated in full as follows:
Attachment 5
A-2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 3) (Olsen/South Chandler Ranch - Facilities) Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Residential Floor Area Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 1,400 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (1,300 - 1,399 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (< 1,300 SF) [$ ] PER DWELLING UNIT 4 NON-RESIDENTIAL PROPERTY $90,993 PER ACRE
4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 3), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 3) to be recorded reflecting the modifications set forth herein.
Submitted:
CFD ADMINISTRATOR
By: Date:
By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 3), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.
Improvement Area No. 3 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.
By: Date as of:
Attachment 5
APPENDIX A-4
City of Paso Robles
Community Facilities District Report
Community Facilities District No. 2022-1N
RATE AND METHOD OF
APPORTIONMENT -
IMPROVEMENT AREA
NO. 4
Attachment 5
1 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 4 OF
CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N
(OLSEN/SOUTH CHANDLER RANCH - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 4 ("IA No. 4”) of City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) ("CFD No. 2022-1N (IA No. 4)") and collected each Fiscal Year commencing in Fiscal Year 2023-2024, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2022-1N (IA No. 4), unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A DEFINITIONS
The terms hereinafter set forth have the following meanings:
"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, parcel map, condominium plan, or other recorded County parcel map.
"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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1N (IA No. 4): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1N (IA No. 4) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1N (IA No. 4) or any designee thereof of complying with City, CFD No. 2022-1N (IA No. 4), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1N (IA No. 4), or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1N (IA No. 4) for any other administrative purposes of CFD No. 2022-1N (IA No. 4), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.
Attachment 5
2 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2022-1N.
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2022-1N for IA No. 4 under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2022-1N (IA No. 4).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“CFD Formation” means the date on which the Council approved documents to form CFD No. 2022-1N.
"CFD No. 2022-1N" means the City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch – Facilities).
“City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year. “Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.
Attachment 5
3 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) “Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 4” or "IA No. 4” means Improvement Area No. 4 of CFD No. 2022-1N.
"Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2022-1N (IA No. 4).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax Attachment 5
4 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association or homeowners association, including any master or sub-association, created for CFD No. 2022-1N (IA No. 4).
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1N (IA No. 4) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned 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. For Taxable Property Owner Association 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 Taxable Property Owner Association Property. For Taxable Public 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 Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2022-1N (IA No. 4) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act 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, irrevocably offered for dedication to, or dedicated 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. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities).
"Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or Attachment 5
5 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2022-1N (IA No. 4) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1N (IA No. 4) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.
B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2023-2024, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.
The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the 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 in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.
C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property Attachment 5
6 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
Table 1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,100 SF) $4,471 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) $4,308 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (< 1,900 SF) $4,145 PER DWELLING UNIT 4 NON-RESIDENTIAL PROPERTY $90,143 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $90,143, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.
Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.
2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.
3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.
C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.
C.3 Undeveloped Property, Taxable Property Owner Association Property, Attachment 5
7 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) and/or Taxable Public Property.
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $90,143 per Acre.
C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.
D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2023-2024 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have 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 applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Attachment 5
8 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) Parcel as needed to satisfy the Special Tax Requirement.
Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E EXEMPTIONS
No Special Tax shall be levied on Property Owner Association Property or Public Property in CFD No. 2022-1N (IA No. 4), provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 6.85 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof in CFD No. 2022- 1N (IA No. 4) become Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.
Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.
In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.
F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.
During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.
If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.
Attachment 5
9 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities)
G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $7,052,484 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2022-1N (IA No. 4), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of the Special Tax.
G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.
The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully 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 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 intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 4) in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such Prepayment Amount.
The Prepayment Amount shall be calculated as follows (capitalized terms are defined below):
Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
Attachment 5
10 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Cost.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel, which amount shall not be less than $0 (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from the Prepayment Amount.
9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Attachment 5
11 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of CFD No. 2022-1N (IA No. 4), including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of:
(a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the Prepayment Amount, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the Prepayment Amount from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.
15. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit, less the Capitalized Interest Credit.
16. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by CFD No. 2022-1N (IA No. 4).
The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the Attachment 5
12 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by 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 G.1; F = The percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation; and
A = The Administrative Fees and Expenses determined pursuant to Section G.1.
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 4) in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment for the Assessor’s Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2022-1N (IA No. 4) that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.
Attachment 5
13 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities)
H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means, with respect to the Dwelling Units in each Plan Type, as of the date of the applicable Price Point Study, the base price of such Dwelling Units, estimated by the Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades.
"Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2022-1N (IA No. 4) as identified in the Price Point Study. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2022-1N (IA No. 4) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2022-1N (IA No. 4), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022-1N (IA No. 4), the City, any owner of real property in CFD No. 2022- 1N (IA No. 4), or any real property in CFD No. 2022-1N (IA No. 4), and (e) is not connected with CFD No. 2022-1N (IA No. 4) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1N (IA No. 4) or the County.
"Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2022-1N (IA No. 4), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means, 1.90%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2022- 1N (IA No. 4) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).
Attachment 5
14 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) Prior to the issuance of a second series of Bonds (or the first series of Bonds, if such series is the final series of Bonds, as determined by the City), the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2022- 1N (IA No. 4) for evaluating the Special Tax:
Step No.:
1. At least 30 days prior to the issuance of Bonds, a Price Point Study shall be completed and delivered to the CFD Administrator.
2. The CFD Administrator shall determine the Total Tax Burden and Total Effective Tax Rate for each Plan Type in CFD No. 2022-1N (IA No. 4).
3. Separately, for each Land Use Class of for-sale Residential Property in CFD No. 2022-1N (IA No. 4), the CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2022-1N (IA No. 4) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2022-1N (IA No. 4).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2022-1N (IA No. 4) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2022-1N (IA No. 4), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.
4. If the Assigned Special Tax for any Land Use Class is revised pursuant to step
3.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2022-1N (IA No. 4). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 3.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 3.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.
5. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2022-1N (IA No. 4) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 4) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that Attachment 5
15 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.
6. After the execution by CFD No. 2022-1N (IA No. 4) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 4) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 4) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 4) set forth in such Certificate to Amend the Special Tax.
7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.
I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 4) may directly bill the Special Tax, may collect the Special Tax 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.
J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2072-2073. The Special Taxes 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 as described in Section D.
Attachment 5
A-1 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities)
EXHIBIT A
CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 4
OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH
CHANDLER RANCH - FACILITIES)
TAX REDUCTION CERTIFICATE
1. Pursuant to Section H 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 Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 4) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 4).
2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.
3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 4) shall be amended and restated in full as follows:
Attachment 5
A-2 Rate and Method of Apportionment
CFD No. 2022-1N (IA No. 4) (Olsen/South Chandler Ranch - Facilities) Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Residential Floor Area Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,100 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (< 1,900 SF) [$ ] PER DWELLING UNIT 4 NON-RESIDENTIAL PROPERTY $90,143 PER ACRE
4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 4), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 4) to be recorded reflecting the modifications set forth herein.
Submitted:
CFD ADMINISTRATOR
By: Date:
By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 4), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.
Improvement Area No. 4 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.
By: Date as of:
Attachment 5
APPENDIX A-5
City of Paso Robles
Community Facilities District Report
Community Facilities District No. 2022-1N
RATE AND METHOD OF
APPORTIONMENT -
IMPROVEMENT AREA
NO. 5
Attachment 5
1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities)
AMENDED AND RESTATED RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAXES
IMPROVEMENT AREA NO. 5 OF
CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N
(OLSEN/SOUTH CHANDLER RANCH - FACILITIES)
A Special Tax as hereinafter defined shall be levied on all Assessor’s Parcels in Improvement Area No. 5 ("IA No. 5”) of City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) ("CFD No. 2022-1N (IA No. 5)") and collected each Fiscal Year commencing in Fiscal Year 2024-2025, in an amount determined by the Council, through the application of this Rate and Method of Apportionment as described below. All of the real property in CFD No. 2022-1N (IA No. 5), unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A DEFINITIONS
The terms hereinafter set forth have the following meanings:
"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, parcel map, condominium plan, or other recorded County parcel map.
"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.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1N (IA No. 5): the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1N (IA No. 5) or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1N (IA No. 5) or any designee thereof of complying with City, CFD No. 2022-1N (IA No. 5), major property owner, or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1N (IA No. 5), or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1N (IA No. 5) for any other administrative purposes of CFD No. 2022-1N (IA No. 5), including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.
Attachment 5
2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) "Assessor’s Parcel" means any real property to which an Assessor’s Parcel Number is assigned as shown on an Assessor’s Parcel Map.
"Assessor’s Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. “Authorized Facilities” means the facilities authorized to be financed by CFD No. 2022-1N.
"Backup Special Tax" means the Special Tax of that name described in Section C below.
"Bonds" means any bonds or other debt as defined in Section 53317(d) of the Act, whether in one or more series, issued by CFD No. 2022-1N for IA No. 5 under the Act. "Boundary Map" means a recorded map which indicates the boundaries of CFD No. 2022-1N (IA No. 5).
"Building Permit" means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
"CFD No. 2022-1N" means the City of Paso Robles Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch – Facilities).
“City” means the City of Paso Robles.
"Council" means the City Council.
"County" means the County of San Luis Obispo.
"Developed Property" means, for each Fiscal Year, all Taxable Property located within a Final Map that was recorded as of January 1 of the prior Fiscal Year, for which a Building Permit was issued prior to May 1 of the prior Fiscal Year. “Dwelling Unit” means one residential unit of any configuration, including, but not limited to, a single-family attached or detached dwelling, condominium, mobile home, or otherwise, excluding hotels and motels. A casita or accessory dwelling unit (“ADU”) of any configuration shall not be counted as a separate Dwelling Unit for purposes of this Rate and Method of Apportionment.
“Exempt Welfare Exemption Property” means, for each Fiscal Year, an Assessor’s Parcel that, prior to the issuance of Bonds, received a welfare exemption under subdivision (g) of Section 214 of the California Revenue and Taxation Code (or any Attachment 5
3 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) successor statute), as indicated in the County’s assessor’s roll finalized as of January 1 of the previous Fiscal Year, and is exempt from the Special Tax pursuant to Section 53340(c) of the Act.
"Final Map" means (i) a final map, or portion thereof, approved by the County pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which Building Permits may be issued without further subdivision, or (ii) for condominiums, a final map approved by the County and a condominium plan recorded pursuant to California Civil Code Section 4285 creating such individual lots or parcels.
"Final Mapped Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit has not been issued on or before May 1 preceding the Fiscal Year in which the Special Tax is being levied.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 5” or "IA No. 5” means Improvement Area No. 5 of CFD No. 2022-1N.
"Indenture" means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the categories listed in Table 1 herein. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel within CFD No. 2022-1N (IA No. 5).
“Non-Residential Floor Area” means the total building square footage of the nonresidential building(s) located on an Assessor’s Parcel, measured from outside wall to outside wall, not including space devoted to stairwells, public restrooms, lighted courts, vehicle parking and areas incident thereto, and mechanical equipment incidental to the operation of such building. The determination of Non-Residential Floor Area shall be made by reference to the Building Permit(s) issued for such Assessor’s Parcel and/or to the appropriate records kept by the City, as reasonably determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parcels of Taxable Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1. “Property Owner’s Association” means, collectively, any property owner association Attachment 5
4 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) or homeowners association, including any master or sub-association, created for CFD No. 2022-1N (IA No. 5).
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1N (IA No. 5) that was owned by a Property Owner Association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned 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. For Taxable Property Owner Association 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 Taxable Property Owner Association Property. For Taxable Public 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 Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within CFD No. 2022-1N (IA No. 5) that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the City, or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act 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, irrevocably offered for dedication to, or dedicated 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. “Rate and Method of Apportionment” means this Amended and Restated Rate and Method of Apportionment of Special Taxes, City of Paso Robles, Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities). "Residential Floor Area" means all of the square footage of living area within the perimeter of a Dwelling Unit, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The CFD Administrator shall determine the Residential Floor Area based upon the Building Permit(s) issued for such Dwelling Unit.
"Residential Property" means Developed Property, for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. "Special Tax" means a special tax levied in any Fiscal Year to pay the Special Tax Requirement.
“Special Tax Requirement” means that amount required in any Fiscal Year to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds to the extent such establishment or replenishment has not been included in a computation of the Special Tax Requirement in a previous Fiscal Year; (v) pay directly for the acquisition or construction of Authorized Facilities to the extent that inclusion of such amount Attachment 5
5 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) does not increase the Special Tax levy on Final Mapped Property or Undeveloped Property; and (vi) pay for reasonably anticipated Special Tax delinquencies based on the historical delinquency rate for CFD No. 2022-1N (IA No. 5) as determined by the CFD Administrator; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1N (IA No. 5) which are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor’s Parcels of Public Property that are not exempt pursuant to Section E below.
“Total Floor Area” means the sum of the Residential Floor Area and the NonResidential Floor Area located on an Assessor’s Parcel. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Final Mapped Property, Public Property, or Property Owner’s Association Property.
B ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, beginning with Fiscal Year 2024-2025, each Assessor’s Parcel of Taxable Property shall be classified as Developed Property, Final Mapped Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall be further categorized into Land Use Classes based on its Residential Floor Area and assigned the appropriate Assigned Special Tax.
The determination of the Residential Floor Area shall be made by reference to the original Building Permit issued for the Dwelling Unit of an Assessor’s Parcel. The Building Permit may include any subsequent document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the 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 in each year will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses in each year.
C MAXIMUM SPECIAL TAX RATE
C.1 Developed Property
The Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.
Attachment 5
6 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
Table 1: Assigned Special Tax for Developed Property
Land Use
Class
Description Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,900 SF) $9,465 PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,700 - 2,899 SF) $8,834 PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,500 - 2,699 SF) $7,534 PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,300 - 2,499 SF) $6,824 PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (2,100 - 2,299 SF) $6,659 PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) $5,839 PER DWELLING UNIT 7 RESIDENTIAL PROPERTY (1,700 - 1,899 SF) $5,713 PER DWELLING UNIT 8 RESIDENTIAL PROPERTY (< 1,700 SF) $5,437 PER DWELLING UNIT 9 NON-RESIDENTIAL PROPERTY $44,176 PER ACRE
Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property in a Final Map shall be computed by multiplying the Acreage of all Taxable Property (excluding Acreage associated with current or expected Non-Residential Property, Taxable Public Property, or Taxable Property Owner Association Property, if any) in such Final Map by $44,176, and dividing the product by the number of such Assessor’s Parcels (i.e., the number of residential lots) in such Final Map.
Notwithstanding the foregoing, if all or any portion of a Final Map is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Residential Property in such Final Map, or the portion thereof that is changed or modified, shall be a rate per Acre calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.
2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Non-Residential Property, Taxable Public Property, and Taxable Property Owner Association Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator.
3. The result is the Backup Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed or modified Final Map.
C.2 Final Mapped Property
The Maximum Special Tax for each Assessor’s Parcel of Final Mapped Property Attachment 5
7 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) expected to be classified as Residential Property shall be the Backup Special Tax computed pursuant to Section C.1.b above.
C.3 Undeveloped Property, Taxable Property Owner Association Property, and/or Taxable Public Property.
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property shall be $44,176 per Acre.
C.4 Multiple Land Use Classes
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The annual Maximum Special Taxes levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. If an Assessor’s Parcel of Developed Property includes Non-Residential Property, the Acreage to be assigned to such property for purposes of establishing the Special Tax shall be an amount proportional to the Total Floor Area associated with Non-Residential Property, as applicable. Furthermore, for a condominium plan, if only a portion of its Building Permits have been issued, the remaining portion of the condominium plan shall be considered Final Mapped Property. The CFD Administrator’s allocation to each type of property shall be final.
D APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement.
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have 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 applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Maximum Special Tax as needed to satisfy the Special Tax Requirement.
Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after Attachment 5
8 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Property Owner Association Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Sixth: If additional moneys are needed to satisfy the Special Tax Requirement after the first five steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E EXEMPTIONS
No Special Tax shall be levied on Property Owner Association Property or Public Property in CFD No. 2022-1N (IA No. 5), provided that an Assessor’s Parcel shall not be exempt and shall be classified as Taxable Property Owner Association Property and Taxable Public Property if exempting such property would reduce the sum of all Taxable Property to less than 15.6 Acres. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which such Assessor’s Parcels or portions thereof in CFD No. 2022- 1N (IA No. 5) become Public Property or Property Owner Association Property. However, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it will, from that point forward, be subject to the Special Tax.
Property Owner Association Property or Public Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fifth step and sixth step in Section D above, respectively, at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property or Taxable Public Property.
In addition, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Exempt Welfare Exemption Property.
F APPEALS AND INTERPRETATIONS
Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.
During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant’s property.
If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the clerk of the Council, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for the disagreement with the CFD Administrator’s determination.
Attachment 5
9 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.
G PREPAYMENT
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $8,700,000 or such lower amount (i) authorized by the Council to provide the public facilities to be funded under CFD No. 2022-1N (IA No. 5), or (ii) determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by the Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means a fund held by the Trustee to fund CFD Public Facilities. “Future Facilities Cost” means the CFD Public Facilities minus public facility costs previously funded, or that can be funded from funds in the Construction Fund. “Outstanding Bonds” means all previously issued Bonds secured by the levy of the Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of the Special Tax.
G.1 Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E.
The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully 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 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 intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 5) in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such Prepayment Amount.
The Prepayment Amount shall be calculated as follows (capitalized terms are defined below):
Prepayment Amount
Bond Redemption Amount
plus Redemption Premium
Attachment 5
10 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Special Tax Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued, Public Property or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Cost.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel, which amount shall not be less than $0 (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from the Prepayment Amount.
9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Attachment 5
11 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Year which has not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of CFD No. 2022-1N (IA No. 5), including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of:
(a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the Prepayment Amount, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the Prepayment Amount from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, the capitalized interest credit (the “Capitalized Interest Credit”) shall be calculated by multiplying the quotient derived pursuant to paragraph 3 by the expected balance in the capitalized interest account after such first interest payment.
15. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit, less the Capitalized Interest Credit.
16. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by CFD No. 2022-1N (IA No. 5).
The Prepayment Amount may not be sufficient to redeem an aggregate principal amount of Outstanding Bonds which is equally divisible by $5,000. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Attachment 5
12 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
G.2 Prepayment in Part
The Maximum Special Tax obligation for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Final Mapped Property or Undeveloped Property for which a Building Permit has not been issued; and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property that are not exempt pursuant to Section E, may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by 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 G.1; F = The percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation; and
A = The Administrative Fees and Expenses determined pursuant to Section G.1.
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1N (IA No. 5) in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment for the Assessor’s Parcel. A Partial Prepayment must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 16 of Section G.1, and (ii) indicate in the records of CFD No. 2022-1N (IA No. 5) that there has been a Partial Prepayment for the Attachment 5
13 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue on the Assessor’s Parcel pursuant to Section D.
H SPECIAL TAX REDUCTION
The following definitions apply to this Section H:
"Base Price" means, with respect to the Dwelling Units in each Plan Type, as of the date of the applicable Price Point Study, the base price of such Dwelling Units, estimated by the Price Point Consultant as of such date, based upon their actual or expected characteristics, such as living area, view, or lot size, but excluding potential appreciation or premiums, options or upgrades.
"Plan Type" means a discrete residential plan type generally consisting of residential Dwelling Units that share a common product type (e.g., detached, attached) and that have nearly identical amounts of living area, that is constructed or expected to be constructed within CFD No. 2022-1N (IA No. 5) as identified in the Price Point Study. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 2022-1N (IA No. 5) that (a) has substantial experience in performing price point studies or otherwise estimating or confirming pricing for Dwelling Units within community facilities districts, (b) is well versed in analyzing economic and real estate data that relates to the pricing of Dwelling Units in community facilities districts, (c) is independent and not under the control of CFD No. 2022-1N (IA No. 5), the City, or the developer, (d) does not have any substantial interest, direct or indirect, with or in CFD No. 2022-1N (IA No. 5), the City, any owner of real property in CFD No. 2022- 1N (IA No. 5), or any real property in CFD No. 2022-1N (IA No. 5), and (e) is not connected with CFD No. 2022-1N (IA No. 5) or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1N (IA No. 5) or the County.
"Price Point Study" means a price point study or a letter updating a previous price point study, which (a) has been prepared by the Price Point Consultant, (b) sets forth the Plan Types constructed or expected to be constructed within CFD No. 2022-1N (IA No. 5), (c) sets forth the estimated number of constructed and expected Dwelling Units for each Plan Type, (d) sets forth estimates of the Base Price for each Plan Type and (e) uses a date for establishing such Base Prices that is no earlier than 30 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to Section H herein.
"Total Effective Tax Rate" means, for a Plan Type, (a) the Total Tax Burden for such Plan Type divided by (b) the Base Price for such Plan Type, converted to a percentage. "Total Effective Tax Rate Limit" means, 1.90%.
"Total Tax Burden” means, with respect to a Plan Type, for the Fiscal Year for which the calculation is being performed, the sum of the Assigned Special Tax and estimated ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental taxes, fees and charges levied or imposed on Dwelling Units of such Plan Type in CFD No. 2022- 1N (IA No. 5) in such Fiscal Year or that would have been levied on all such Dwelling Units had these Dwelling Units been subject to such levies (excluding homeowner’s association dues and Property Assessed Clean Energy (“PACE”) charges imposed Attachment 5
14 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) pursuant to AB 811 or SB 555, that are levied on individual Assessor’s Parcels, or any other charges applicable to the Assessor’s Parcels initiated by the homeowner after the close of escrow).
Prior to the issuance of a second series of Bonds (or the first series of Bonds, if such series is the final series of Bonds, as determined by the City), the following steps shall be taken for each Land Use Class of for-sale Residential Property in CFD No. 2022- 1N (IA No. 5) for evaluating the Special Tax:
Step No.:
1. At least 30 days prior to the issuance of Bonds, a Price Point Study shall be completed and delivered to the CFD Administrator.
2. The CFD Administrator shall determine the Total Tax Burden and Total Effective Tax Rate for each Plan Type in CFD No. 2022-1N (IA No. 5).
3. Separately, for each Land Use Class of for-sale Residential Property in CFD No. 2022-1N (IA No. 5), the CFD Administrator shall determine whether or not the Total Effective Tax Rate for all Plan Types in a Land Use Class is less than or equal to the Total Effective Tax Rate Limit.
a. If the Total Effective Tax Rate for all Plan Types in a Land Use Class in CFD No. 2022-1N (IA No. 5) is less than or equal to the Total Effective Tax Rate Limit, then there shall be no reduction in Special Tax for such Land Use Class in CFD No. 2022-1N (IA No. 5).
b. If the Total Effective Tax Rate for any Plan Type in a Land Use Class in CFD No. 2022-1N (IA No. 5) is greater than the Total Effective Tax Rate Limit , the CFD Administrator shall calculate a revised Assigned Special Tax for that Land Use Class in CFD No. 2022-1N (IA No. 5), such that the revised Assigned Special Tax does not cause the Total Effective Tax Rate for any Plan Type in such Land Use Class to exceed the Total Effective Tax Rate Limit.
4. If the Assigned Special Tax for any Land Use Class is revised pursuant to step
3.b. above, the CFD Administrator shall also prepare and execute a Certificate to Amend the Special Tax substantially in the form of Exhibit “A” hereto and shall deliver such Certificate to Amend the Special Tax to CFD No. 2022-1N (IA No. 5). The Certificate to Amend the Special Tax shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Special Tax for a Land Use Class as calculated pursuant to step 3.b., or (ii) the Assigned Special Tax as identified in Table 1 of Section C for a Land Use Class that was not revised as determined pursuant to step 3.a. A reduction to the Assigned Special Tax in one Land Use Class shall not require a reduction in any other Land Use Class.
5. If the anticipated date of issuance of Bonds is within 180 days of the date of receipt of the Price Point Study by the CFD Administrator, CFD No. 2022-1N (IA No. 5) shall execute the acknowledgement on such Certificate to Amend the Special Tax dated as of the closing date of such Bonds, and upon the closing of such Bonds, the Assigned Special Tax for each Land Use Class shall be as set forth in such Certificate to Amend the Special Tax. If the date of issuance of Bonds is not within 180 days of the date of receipt of the Price Attachment 5
15 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Point Study by the CFD Administrator, such Certificate to Amend the Special Tax shall not be acknowledged by CFD No. 2022-1N (IA No. 5) and shall, as of such date, be void and of no further force and effect. In such case, if subsequently Bonds are expected to be issued, at least 30 days prior to that expected date, steps 1 through 5 of this section shall be performed based on a new Price Point Study.
6. After the execution by CFD No. 2022-1N (IA No. 5) of the acknowledgement on the Certificate to Amend the Special Tax, CFD No. 2022-1N (IA No. 5) shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 5) reflecting the Assigned Special Tax for CFD No. 2022-1N (IA No. 5) set forth in such Certificate to Amend the Special Tax.
7. If the Assigned Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 3 above, there shall be no reduction in the Assigned Special Tax and no Certificate to Amend the Special Tax shall be required.
I MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1N (IA No. 5) may directly bill the Special Tax, may collect the Special Tax 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.
J TERM OF SPECIAL TAX
The Special Taxes shall be levied until the final series of Bonds have matured, provided that the Special Taxes shall not be levied after Fiscal Year 2073-2074. The Special Taxes 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 as described in Section D.
Attachment 5
A-1 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities)
EXHIBIT A
CERTIFICATE TO AMEND THE SPECIAL TAX
IMPROVEMENT AREA NO. 5
OF THE CITY OF PASO ROBLES
COMMUNITY FACILITIES DISTRICT NO. 2022-1N (OLSEN/SOUTH
CHANDLER RANCH - FACILITIES)
TAX REDUCTION CERTIFICATE
1. Pursuant to Section H 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 Luis Obispo as Instrument No. XXXXXX on MM/DD/YYYY, the City of Paso Robles (the “City”) hereby reduces the Assigned Special Taxes for Developed Property within CFD No. 2022- 1N (IA No. 5) set forth in Table 1 of the Rate and Method of Apportionment for CFD No. 2022-1N (IA No. 5).
2. The calculations made pursuant to Section H were based upon a Price Point Study that was received by the CFD Administrator on _________________.
3. The information in Table 1, relating to the Assigned Special Tax for Developed Property within CFD No. 2022-1N (IA No. 5) shall be amended and restated in full as follows:
Attachment 5
A-2 Amended and Restated Rate and Method of Apportionment CFD No. 2022-1N (IA No. 5) (Olsen/South Chandler Ranch - Facilities) Table A-1: Assigned Special Tax for Developed Property
Land Use
Class
Residential Floor Area Assigned Special Tax
1 RESIDENTIAL PROPERTY (>= 2,900 SF) [$ ] PER DWELLING UNIT 2 RESIDENTIAL PROPERTY (2,700 - 2,899 SF) [$ ] PER DWELLING UNIT 3 RESIDENTIAL PROPERTY (2,500 - 2,699 SF) [$ ] PER DWELLING UNIT 4 RESIDENTIAL PROPERTY (2,300 - 2,499 SF) [$ ] PER DWELLING UNIT 5 RESIDENTIAL PROPERTY (2,100 - 2,299 SF) [$ ] PER DWELLING UNIT 6 RESIDENTIAL PROPERTY (1,900 - 2,099 SF) [$ ] PER DWELLING UNIT 7 RESIDENTIAL PROPERTY (1,700 - 1,899 SF) [$ ] PER DWELLING UNIT 8 RESIDENTIAL PROPERTY (< 1,700 SF) [$ ] PER DWELLING UNIT 9 NON-RESIDENTIAL PROPERTY $44,176 PER ACRE
4. Upon execution of the certificate by the City and CFD No. 2022-1N (IA No. 5), the City shall cause an amended Notice of Special Tax Lien for CFD No. 2022-1N (IA No. 5) to be recorded reflecting the modifications set forth herein.
Submitted:
CFD ADMINISTRATOR
By: Date:
By execution hereof, the undersigned acknowledges, on behalf of CFD No. 2022-1N (IA No. 5), receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.
Improvement Area No. 5 of Community Facilities District No. 2022-1N (Olsen/South Chandler Ranch - Facilities) of the City of Paso Robles.
By: Date as of:
Attachment 5
APPENDIX B
City of Paso Robles
Community Facilities District Report
Community Facilities District No. 2022-1N
BOUNDARY MAP
Attachment 5
Attachment 5
Attachment 5
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com
Attachment 5
Council Agenda Report
From: Leslie Frazier, City Engineer/Deputy Community Development Director Subject: Introduction for First Reading by Title Only an Ordinance of the El Paso de Robles Municipal Code Amending Chapter 11.20 Regarding Trenching and Pavement Preservation and Approval of a Resolution Adopting Microtrenching Standards for Facilities in the Public Right of Way
CEQA Determination: The City finds that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.
Date: May 6, 2025
Facts
1. The City’s street network of more than 350 lane miles is a valuable public resource that requires proper maintenance and management to maximize pavement longevity and reduce maintenance cost to taxpayers.
2. In November 2012, voters approved Measure E-12, increasing the City sales tax by 0.5% for a 12-year period beginning April 1, 2013 and sunsetting March 31, 2025. The main priorities of this tax measure were to fund street repair, maintenance and improvement.
3. In November 2024, voters approved Measure I-24, extending Measure E-12’s sales tax increase indefinitely. This 0.5% supplemental sales tax has generated $5 million to $7 million annually which is invested back into our community through road maintenance, street repair and improvement.
4. The City also utilizes additional funding sources for road maintenance including grants, the City’s General, Measure J-20, Gas Tax, Senate Bill 1 (SB1), and Traffic Impact Fees (TIF) Funds. The City has expended anywhere between $5 million to $9 million annually for road maintenance and rehabilitation projects since 2012, with a current total budget of $28 million.
5. Pavement Condition Index (PCI) is a numerical index between 0 and 100, with 100 being best, that is used to indicate the general condition of a pavement section. The City-wide PCI average is 55 with Westside streets averaging 47 and Eastside streets averaging 61. For context, California cities as a whole have an average PCI of 62, San Luis Obispo County averages a PCI of 60, while the City of Atascadero averages a PCI of 48.
6. In order to improve roadway conditions, and increase City-wide PCI, additional roadway maintenance, restoration, resurfacing and continued City investment is required.
7. Since the approval of Measure E-12, the City has made substantial investments in roadway projects and has funded more than 44 different road maintenance projects in the City to date with additional roadway projects planned for the future using I-24 funding.
8. Installing, replacing, or repairing underground utilities is one of the most common reasonsthat require cuts in pavements.
9. Pavement cuts significantly reduce the lifespan of streets, leading to premature deterioration and more frequent repairs, increasing costs to the City for roadway repair and maintenance, and decreasing City-wide PCI.
10. Limiting pavement cuts and maintaining pavement in good condition over a longer period of time increases pavement longevity, which in turn reduces maintenance expenses and improves City-wide PCI over the long term.
11. In 1942, City Council drafted and adopted Section 11.20 of the Paso Robles Municipal Code (PRMC), which contains provisions for street excavations through encroachment permits. Time, technology advances and prioritization of road repairs necessitated this section be updated.
12. In December 2006, the City Council approved the current Pavement Management Program which provides fundamental provisions for temporary trench repairs are contained in the Department of Public Works Standard Details and Specifications.
13. Adding a new Section 11.20.090 to PRMC Chapter 11.20, entitled “Pavement Preservation” would enable continued development, while protecting the City’s infrastructure investment, preserving the longevity and quality of our streets, and providing a pleasing appearance to newly paved roadway surfaces.
14. In addition, effective January 1, 2022, California Government Code section 65964.5 (SB 378) requires all cities to allow microtrenching, a new construction technique for the installation of underground fiber, typically deployed in the public right of way.
15. In 2014, the City Council adopted the City’s Standard Details and Specifications (City Standards) outlining written specifications and detailed drawings to establish standards of tolerance and quality for public works construction and excavations in the public right-of-way; these City Standards were last updated by City Council in October 2020 and do not address microtrenching.
16. More recently, several telecommunication companies have sought to install fiber optic cables, conduit, and other related appurtenances inside the public right-of-way through microtrenching.
17. In 2023, the City Council approved the North County Broadband Strategic Plan, which provided several recommendations for the City to consider to advance the deployment of fiber throughout the community. One of the recommendations is to “improve the permitting processes and supporting tools to streamline broadband permits. Implement “broadband friendly” policies such as Dig Once, micro trenching, and conduit installation.”
18. To address new interest in microtrenching, the City Engineer has developed an update to the City Standard Details and Specifications to include new microtrenching standards in order to attempt to minimize the impact of microtrenching to City streets.
19. The amendment to the Standard Details and Specifications is attached to Resolution 25-XXX, adopting the Microtrenching Standards for Facilities in the Public Right-of-Way (Attachment 2) and includes the following change:
Section VIII - Standard Drawings:
Drawing Description Drawing No. Amendment
Microtrenching Detail U-8.0, U-8.1, U-8.2 New Detail
20. The draft Resolution also authorizes the City Engineer to update the Microtrenching Standards for Facilities in the Public Right-of-Way from time to time as needed to accommodate changes in technology and deployment techniques.
21. The Microtrenching Standards for Facilities in the Public Right-of-Way are designed to minimize impacts to the City’s pavement preservation, road maintenance, and street repair objectives and
facilitate the City’s pavement rehabilitation program which typically utilizes an average restoration depth of 13 to 14 inches, requiring a minimum microtrench depth of 16 inches to avoid adverse impacts to the public health or safety and unintended disruption or damage to fiber deployments in the right of way.
22. Adoption of the City’s Microtrenching Standards for Facilities in the Public Right-of-Way in tandem with the pavement preservation ordinance furthers the City’s pavement preservation goals by minimizing the impact of repeated street cuts into the public right-of-way and by establishing standards for microtrenching consistent with Government Code section 65964.5 for the deployment of fiber optic cables and related ancillary equipment in the public right-of-way.
Community Outreach
The Community Development Department solicited feedback from industry stakeholders comprising a range of public utilities and telecommunications companies who typically place facilities within the public right of way, during development of the Microtrenching Standard for Facilities in the Public right of way, which included American Dark Fiber, Astound, Charter, ATT, and PG&E. Comments were received by one party, with the remaining parties declining to provide comments in advance of the scheduled City Council meeting.
Options
1. Take no action;
2. Introduce for first reading by title only Ordinance XXXX amending Chapter 11.20 of the municipal code regarding trenching and pavement preservation and approve Resolution 25-XXX adopting the City’s Microtrenching Standards for Facilities in the Public Right-of-Way;
3. Provide alternative direction to staff.
Analysis and Conclusions
Periodically, contractors approach the City and request encroachment permits to excavate street segments for improvements or repairs. Sometimes, these excavations occur soon after a street has been constructed, overlaid, or slurry sealed. Contractors are required to repair the pavement cuts in accordance with the City’s current Standard Details and Specifications; however, even with proper repair, street cuts have the potential to significantly alter and degrade the pavement surface and reduce pavement longevity.
According to the Federal Highway Administration, potential problems that can arise from uncontrolled and frequent pavement cuts include, but are not limited to:
Rapidly deteriorating pavement structures in the vicinity of the cuts. Accelerated funding requirements to maintain, rehabilitate, and reconstruct prematurely failed pavement structures.
Excessive delays to the traveling public due to closed traffic lanes. Increased traffic congestion and related air quality issues. Damage to vehicles due to excessive road roughness.
As a result, the City proposes establishing protections on newly paved streets to minimize pavement degradation, maintain structural integrity, retain smooth surfaces, and limit negative visual impacts. With
protections on newly paved streets in place, contractors with proposed projects requiring roadway excavation will: (a) need to plan and review potential conflicts with paving projects more effectively; (b) consider alternative deployment methods such as aerial deployments or deployment within existing conduits; or (c) qualify for an exception from the pavement preservation requirement.
The proposed Ordinance seeks to add a new Section 11.20.090 entitled “Pavement Preservation” to Chapter 11.20 “Street Excavation” to preserve street pavement by restricting trenching and excavating within any street that has been newly constructed, reconstructed, slurry sealed, resurfaced, overlaid, or the subject of pavement rehabilitation within the past five (5) years. The foregoing restriction includes several exceptions for emergency encroachments; work mandated by city, state, or federal legislation; utility services for new development; essential utility repairs to prevent interruption of service; and other situations deemed by the City Engineer to be in the best interest of the general public.
In the event a proposed excavation qualifies for an exception, permittees would be subject to a set of standard conditions of approval outlined in Section 11.20.090 imposing expanded pavement repair and restoration requirements beyond the current City pavement restoration standard to preserve pavement quality and longevity of the newly paved street.
In addition, the City Engineer proposes an amendment to the City’s Standard Details and Specifications to incorporate microtrenching standards for facilities in the public right-of-way. The City’s Microtrenching Standards for Facilities in the Public Right-of-Way will further the City’s pavement preservation goals by minimizing the impact of repeated street cuts into the public right-of-way and will protect the integrity and quality of streets and will establish standards for microtrenching within the public right-of-way.
In 2023, the City Council approved the North County Broadband Strategic Plan, which provided several recommendations for the City to consider to advance the deployment of fiber throughout the community.
One of the recommendations is to “improve the permitting processes and supporting tools to streamline broadband permits. Implement “broadband friendly” policies such as Dig Once, micro trenching, and conduit installation.” The microtrenching policy advances the City Council's objectives of improving access to fiber within the community by creating a clear and straightforward process.
Fiscal Impact
There is no direct fiscal impact by amending Chapter 11.20 to add trenching and pavement preservation requirements for encroachment of the public right-of-way or approving new standards and policies for microtrenching in the public right-of-way. Over the long-term, the City expects the updated trenching and pavement preservation requirements to reduce the City’s pavement restoration and rehabilitation costs by reducing the impact of certain pavement cuts and extending the longevity of newly paved streets.
CEQA
The City finds that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.
Recommendation (Option 2)
It is recommended that City Council approve the following:
1. Introduce for first reading by title only Ordinance No. XXX N.S. Amending Chapter 11.20 of the El Paso de Robles Municipal Code regarding trenching and pavement preservation; and
2. Approve Resolution 25-XXX, adopting the City’s Microtrenching Standards for Facilities in the Public Right-of-Way.
Attachments
1. Ordinance No. XXXX N.S. – Amending Chapter 12.20 of the Municipal Code
2. Resolution 25-XXX, adopting the Microtrenching Standards for Facilities in the Public Right-of-Way a Exhibit A – Microtrenching Standards for Facilities in the Public Right-of-Way
82472.01015\43415966.6
Attachment 1
ORDINANCE NO. XXXX N.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES ADDING SECTION 11.20.090 OF THE MUNICIPAL CODE OF THE CITY OF EL PASO DE ROBLES
REGARDING PAVEMENT PRESERVATION WITHIN THE PUBLIC RIGHT-OF-WAY, AND
DETERMINING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE CEQA GUIDELINES SECTION 15061(B)(3) WHEREAS, the City of El Paso de Robles California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, pursuant to the California Constitution, Article, XI, section 7, the City may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general law; and
WHEREAS, the California Constitution grants the City the right to adopt reasonable regulations regarding its rights-of-way, which reasonable regulations would include the establishment of protections on newly paved streets; and
WHEREAS, the public right-of-way is a unique public resource held in trust for the benefit of the public; this physically limited resource requires proper management to maximize its efficiency and minimize the costs to taxpayers, to protect against foreclosure of future economic expansion because of premature exhaustion of the public right-of-way, and to minimize the inconvenience to and negative effects on the public from use of the public right-of-way by repeated excavations; and WHEREAS, to protect the integrity and quality of streets and public right-of-way, the El Paso de Robles Municipal Code sets forth, in Chapter 11.20 (“Street Excavations”), a permitting and fee system for encroachments and trench cuts to City streets; and
WHEREAS, protections on newly paved streets would safeguard the City’s investment in its infrastructure, preserve the life of streets, and provide a safe driving surface and a pleasing appearance to roadway surfaces that have undergone utility and other excavation work; and WHEREAS, the City desires to establish protections on newly paved streets through the adoption of this Ordinance to further the purposes stated herein.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. All of the above recitals are true and correct and are incorporated herein by reference.
Section 2. Section 11.20.090 of Chapter 11.20 of Title 11 of the El Paso de Robles Municipal Code, entitled “Pavement Preservation” is hereby added to read in its entirety as follows:
“Section 11.20.090 – Pavement Preservation
82472.01015\43415966.6
Attachment 1
A. Pavement Preservation on Newly Paved Streets. Excavating, cutting, drilling, trenching, digging, potholing or otherwise disturbing the surface of any newly paved street is prohibited.
For purposes of this Section, the term “Newly Paved Street’ shall mean any street that was constructed, reconstructed, slurry sealed, resurfaced, overlaid, or the subject of pavement rehabilitation within the past five (5) years.
B. Exceptions. An exception to the above pavement preservation requirement for newly paved streets may be granted in the following situations at the discretion of the City Engineer.
Applicants seeking to excavate, cut, drill, trench, dig, pothole or otherwise disturb the surface of any newly paved street must submit a written request to the City Engineer, as part of their initial application submittal to the City, indicating which of the following exceptions apply to the proposed work with adequate supporting documentation as deemed reasonably necessary by the City Engineer:
1. Emergency encroachments that are immediately necessary to preserve life, property, or public health and safety from an imminent threat of harm;
2. Work that is mandated by city, state, or federal legislation, or initiated by the City;
3. Work necessary for new development or new customers to provide utility service for buildings or parcels where no other reasonable means of providing service exists;
4. Repairs or modifications that are necessary to prevent the interruption of essential utility service;
5. Other situations deemed by the City Engineer to be in the best interest of the general public.
Emergencies and other exceptions do not exempt the permittee from any requirements to repair the pavement as required by this section or as conditions of approval of a permit. The provisions of this section shall not apply to officers or employees of the City acting in the discharge of their official duties.
C. Permit Conditions. Any approval of an excavation in a newly paved street shall be subject to the following conditions in this subsection (C). The City Engineer shall have discretion to modify, supplement, waive or amend these conditions as may be necessary or appropriate under the circumstances to protect public health and safety or in furtherance of the goals of this section.
1. If affected pavement is isolated to one side of the centerline, permittee shall grind and overlay to a depth of 2 inches with a width extending from the curb to the centerline for the entirety of the length of the excavation.
2. If affected pavement extends past the centerline, permittee shall grind and overlay to a depth of 2 inches with a width extending from the curb to curb for the entirety of the length of the excavation.
3. For excavations perpendicular to the curb face where affected pavement is isolated to one side of the centerline, permittee shall grind and overlay to a depth of 2 inches with a width
82472.01015\43415966.6
Attachment 1
extending from the curb to the centerline and a length equal to 10 feet on both sides of the excavation.
4. For excavations perpendicular to the curb face where affected pavement extends past the centerline, permittee shall grind and overlay to a depth of 2 inches with a width extending from the curb to curb and a length equal to 10 feet on both sides of the excavation.
5. No pavement restoration is required for driveway aprons, if permittee cuts at edge of gutter and uses edge of existing asphalt concrete as batter board.
6. For all pavement restoration, permittee shall match existing material of the roadway, unless waived by the City Engineer.
7. Excavations utilizing trenchless options, including but not limited to pipe lining or pipe bursting, shall be subject to reduced pavement restoration requirements as deemed appropriate by the City Engineer on a case by case basis.
Section 3. CEQA. The City finds that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance.
Section 5. Effective Date. This Ordinance shall be in full force and effect 30 days after its passage and adoption as provided by Government Code section 36397.
Section 6. Publication. The City Clerk shall certify to the passage of this Ordinance by the City Council of the City of El Paso de Robles, California, and cause the Ordinance to be published once within 15 days after passage in a newspaper of general circulation published and circulated in the City in accordance with Government Code section 36933.
INTRODUCED at a regular meeting of the City Council held on _______, 2025, for first reading by the City Council of the City of El Paso de Robles, and adopted on the ___ day of ______, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
82472.01015\43415966.6
Attachment 1
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
82472.01015\43588975.1
Attachment 2
RESOLUTION 25-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
ADOPTING THE MICROTRENCHING STANDARDS FOR FACILITIES IN THE PUBLIC RIGHT-OF-WAY,
AND DETERMINING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO STATE CEQA GUIDELINES SECTION 15061(B)(3) WHEREAS, the City of El Paso de Robles California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, pursuant to the California Constitution, Article, XI, section 7, the City may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general law; and
WHEREAS, the California Constitution grants the City the right to adopt reasonable regulations regarding its rights-of-way, which reasonable regulations would include the establishment of protections on newly paved streets; and
WHEREAS, the public right-of-way is a unique public resource held in trust for the benefit of the public; this physically limited resource requires proper management to maximize its efficiency and minimize the costs to taxpayers, to protect against foreclosure of future economic expansion because of premature exhaustion of the public right-of-way, and to minimize the inconvenience to and negative effects on the public from use of the public right-of-way by repeated excavations; and WHEREAS, to protect the integrity and quality of streets and public right-of-way, the El Paso de Robles Municipal Code sets forth, in Chapter 11.20 (“Street Excavations”), a permitting and fee system for encroachments and trench cuts to City streets; and
WHEREAS, in 2014, the City Council adopted the City’s Standard Details and Specifications outlining written specifications and detailed drawings to establish standards of tolerance and quality for public works construction and excavations in the public right-of-way, which were last updated by Council in October 2020 and which do not address microtrenching.
WHEREAS, the Microtrenching Standards for Facilities in the Public Right-of-Way seek to further the City’s pavement preservation goals by minimizing the impact of repeated street cuts into the public right-of-way and to establish standards for microtrenching consistent with Government Code section 65964.5 for the deployment of fiber optic cables and related ancillary equipment in the public rightof-way.
WHEREAS, the Microtrenching Standards for Facilities in the Public Right-of-Way are designed to minimize impacts to the City’s pavement preservation, road maintenance, and street repair objectives and facilitate the City’s pavement rehabilitation program which typically utilizes an average restoration depth of 13 to 14 inches, requiring a minimum microtrench depth of 16 inches to avoid adverse impacts to the public health or safety and unintended disruption or damage to fiber deployments in the right of way.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:
82472.01015\43588975.1
Attachment 2
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
Section 2. CEQA. The City finds that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the Microtrenching Standards for Facilities in the Public Right-of-Way may have a significant effect on the environment.
Section 3. The City Council hereby approves the Microtrenching Standards for Facilities in the Public Right-of-Way attached hereto as Exhibit A, and incorporated herein by reference.
Section 4. The City Engineer is directed to publish the Microtrenching Standards for Facilities in the Public Right-of-Way within five (5) business days following its adoption, and is authorized to update the policy from time to time.
Section 5. The Microtrenching Standards for Facilities in the Public Right-of-Way shall be effective upon publishing by the City Engineer.
APPROVED this 6th day of May, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
Exhibit A – Microtrenching Standards for Facilities in the Public Right-of-Way
FIRST INSTALLED
CONDUIT
EXISTING BASE
EXISTING CURB AND GUTTER
NATIVE MATERIAL
BOTTOM OF
TRENCH
1" MIN. TO 4"
MAX WIDTH GUTTER LIP
2'-0"
MAX
SEE GRIND SECTION 2-2.2
NEW ASPHALT
CONCRETE PAVEMENT
GRIND AND CAP
2" MIN.
EXISTING ASPHALT
CONCRETE PAVEMENT
THICKNESS VARIES
12 GAUGE INSULATED LOCATOR
WIRE, TAPED TO CONDUIT
GRIND AND RESTORATION SECTION 26" MAX 16" MIN.
TACK COAT
1" MIN.
2 SACK CEMENT SAND SLURRY
GENERAL AND LOCATION STANDARDS:
1. ALL WORK SHALL BE CONSTRUCTED IN ACCORDANCE WITH THE LATEST CITY OF PASO ROBLES PAVEMENT PRESERVATION REQUIREMENTS (ORD. 11.20.090) AND CITY STANDARD DETAILS AND SPECIFICATIONS.
2. MICROTRENCHING SHALL NOT BE ALLOWED IN CONCRETE PAVED STREETS, CURB, GUTTER, CROSS GUTTER, BUS PAD,
SIDEWALK, FLOATING CURB EXTENSION, BUS BULB, TRUCK PILLOW, RAISED CROSSWALK, ISLAND, MINI-ROUNDABOUT, OR SIMILAR ELEMENTS.
3. ALL MICROTRENCHING SHALL OCCUR WITHIN 2' OF GUTTER LIP, OR CURB IF GUTTER IS NOT PRESENT.
4. CONTRACTORS MUST PROPOSE PLACEMENT OF DRY UTILITY FACILITIES, LINES AND CONDUITS IN THE RIGHT OF WAY IN ACCORDANCE WITH THE CITY'S RIGHT OF WAY LOCATION MATRIX OUTLINED BELOW. CONTRACTORS SHALL UTILIZE AERIAL
DEPLOYMENT ON EXISTING UTILITY POLES OR WITHIN EXISTING PUBLIC UTILITY EASEMENTS OR PARKWAYS WHERE AVAILABLE AND TECHNICALLY FEASIBLE, BEFORE ATTEMPTING TO UTILIZE TRENCHING TECHNIQUES WITHIN THE RIGHT OF WAY. += REQUIRED
0= PREFERRED
A= ALLOWED
X= PROHIBITED
UNLESS EXCEPTED BY
PRMC 11.20.090
EXISTING
OVERHEAD
PUE/PARKWAY PAVEMENT
DIRECTIONAL
BORE
MICROTRENCH DIRECTIONAL
BORE
MICROTRENCH STANDARD
TRENCH
ARTERIAL STREETS + 0 A A A X
COLLECTOR STREETS + 0 A A A X
LOCAL STREETS + A A 0 A A
NEWLY PAVED ST. SUBJECT
TO PRMC 11.20.090 + A A X X X
DAMAGE TO EXISTING UTILITIES:
CITY OF PASO ROBLES
ENGINEERING DIVISION
DRAWN BY: DESIGNED BY:
REVISIONS
DATE BY
DWG-NO.
MICROTRENCHING
DETAIL (1 OF 3) U-8.0
DP LF
Exhibit 'A'
PRE-CONSTRUCTION SUBMITTALS & FIELD INVESTIGATION:
1. THE CONTRACTOR SHALL:
1.1. IDENTIFY ALL EXISTING UTILITIES, INCLUDING SERVICE CONNECTIONS IN THE FIELD.
1.2. CONTACT UNDERGROUND SERVICE ALERT (U.S.A) AT LEAST 72 HOURS PRIOR TO THE START OF WORK AT 8-1-1, OR TOLL-FREE AT 1-800-422-4133.
1.3. FURTHER SUPPLEMENT THE FINDINGS OF U.S.A. TO DETERMINE THE EXACT LOCATIONS AND DEPTHS OF ALL UTILITIES BY POTHOLING UTILITIES. 1.4. POTHOLE ALL CROSSING UTILITIES AND PARALLEL UTILITIES INCLUDING MAINS, SERVICES, LATERALS, AND APPURTENANCES WITHIN 36 INCHES OF THE PROPOSED ALIGNMENT TO A DEPTH OF 6 INCHES BELOW THE BOTTOM OF THE MICRO-TRENCH, TO DETERMINE THE EXISTING UTILITY ALIGNMENT, ELEVATION, SIZE, AND MATERIAL.
1.5. POTHOLES SHALL BE IMMEDIATELY BACKFILLED AND COMPACTED IN ACCORDANCE TO CITY SPECIFICATIONS OR RESTORED AS DIRECTED BY THE CITY ENGINEER.
2. UTILITY SEPARATIONS:
2.1. FIVE FEET FROM SIDEWALL OF EXISTING OR PROPOSED WATER, RECYCLED WATER, OR SEWER LINES.
2.2. 18-INCHES MINIMUM ABOVE WATER OR RECYCLED WATER UTILITY CROSSINGS.
2.3. 12-INCH MINIMUM ABOVE CROSSING SEWER LATERALS AND MAINS IN A CROSSING.
2.4. 12-INCH FROM ALL OTHER UTILITIES WHEN CROSSING PERPENDICULARLY.
3. THE FOLLOWING ITEMS SHALL BE SUBMITTED BY THE CONTRACTOR TO THE CITY ENGINEER FOR APPROVAL.
3.1. POTHOLE REPORT DOCUMENTING ALL CROSSINGS AND PARALLEL UTILITIES (SEE 3.4 ABOVE).
3.2. PROVIDE A DETAILED SITE PLAN WHICH SHALL INCLUDE LOCATIONS OF EXISTING UTILITY CROSSINGS AND PARALLEL
UTILITIES FROM POTHOLE REPORT AND THE DISTANCE OF THE MICRO-TRENCH AND EDGES OF GRIND AND CAP THE FACE OF GUTTER, CURB, CONCRETE PAVEMENT, OR STRUCTURE AS APPLICABLE.
3.3. A TYPICAL MICRO-TRENCH DETAIL THAT INCLUDES THE FOLLOWING INFORMATION:
A) THE MAXIMUM ASPHALT CONCRETE (AC) ROADWAY THICKNESS, BASE, DEPTH, AND WIDTH OF MICRO-TRENCH, DEPTH OF TOPMOST CONDUIT, AND BACKFILL MATERIAL.
B) AC REINSTATEMENT INCLUDING WIDTH AND DEPTH OF GRIND AND CAP.
3.4. DETAIL SHOWING CONDUIT FROM MAIN MICRO-TRENCH ALIGNMENT TO LATERAL SURFACE CONNECTIONS INCLUDING TO ANY JUNCTION/PULL BOX. INCLUDE SPECIFIC INFORMATION OF DEPTH, SIZE, AND METHOD OF EXCAVATION BELOW THE EXISTING CURB AND GUTTER.
3.5. CUT SHEETS OF THE PROPOSED EQUIPMENT PARTICULARLY SUITABLE FOR MICRO-TRENCHING, INCLUDING:
A)MICRO-TRENCHER CAPABLE OF MEETING TARGET DEPTH AND WIDTH IN A SINGLE PASS WITH AN INTEGRAL HOOD
AND ASSOCIATED VACUUM SYSTEM, SELECTION OF CUTTING WHEEL SHALL BE SUCH THAT IT MINIMIZES DAMAGE TO THE ADJACENT AC SURFACE.
B) MOBILE CONCRETE/SLURRY PLACEMENT WITH AN ON-BOARD VIBRATOR AND NARROW TROUGH TO MATCH MICRO-TRENCH WIDTH.
C) MOBILE GROUND PENETRATING RADAR(GPR) SYSTEM THAT IS CAPABLE OF LOCATING BOTH METALLIC AND NON-METALLIC PIPES AND CABLES TO A DEPTH OF 24 INCHES. GPR SHALL NOT BE SUBSTITUTED FOR POTHOLING.
3.6. OTHER SITE-SPECIFIC ITEMS AS REQUIRED BY THE CITY ENGINEER AND UTILITIES DIRECTOR. 3.7. THE CITY ENGINEER SHALL APPROVE ANY VARIANCE FROM THE SUBMITTAL REQUIREMENTS.
DAMAGE TO EXISTING UTILITIES:
1. IF EXISTING UTILITIES ARE DAMAGED, THE CONTRACTOR SHALL IMMEDIATELY NOTIFY THE CITY'S ENGINEERING INSPECTOR, CITY ENGINEER, AND DAMAGED UTILITY OWNER. THE CONTRACTOR IS RESPONSIBLE TO PERFORM THE REPAIRS PROMPTLY ACCORDING TO THE DAMAGED UTILITY OWNERS REQUIREMENTS AND PER ASSOCIATED CITY PERMITS.
2. DAMAGED TRAFFIC SIGNAL LOOPS AND CONDUITS SHALL BE RESTORED IN KIND IMMEDIATELY.
CITY OF PASO ROBLES
ENGINEERING DIVISION
DRAWN BY: DESIGNED BY:
REVISIONS
DATE BY
DWG-NO.
MICROTRENCHING
DETAIL (2 OF 3) U-8.1
DP LF
LIMITS OF REMOVALS, TRENCH WIDTH, AND LOCATION:
1. THE MICRO-TRENCH SHALL BE CONSTRUCTED WITH CONTINUOUS UNIFORM STRAIGHT AND NEAT EDGES.
2. MICRO-TRENCH ALIGNMENTS SHALL CONSIST OF RUNS PARALLEL TO THE CENTERLINE OF THE STREET. STREET CROSSING MAY BE DONE PROVIDED THE ALIGNMENT IS PERPENDICULAR TO THE STREET CENTERLINE TO THE EXTENT POSSIBLE.
3. THE MICRO-TRENCH WIDTH SHALL BE A MINIMUM OF 1-INCH AND A MAXIMUM OF 4-INCHES.
4. UP TO TWO (2) VERTICALLY STACKED CONDUITS CAN BE PLACED WITHIN A MICRO-TRENCH.
5. THE HIGHEST CONDUIT SHALL BE INSTALLED AT A MINIMUM DEPTH OF 16 INCHES BELOW THE EXISTING AC PAVEMENT SURFACE.
6. CONTRACTOR MUST PROVIDE METHOD OF WEIGHING/ANCHORING DOWN CONDUITS TO PREVENT CONDUITS FROM FLOATING, AND TO MAINTAIN REQUIRED DEPTH FOR TOP OF CONDUIT.
BACKFILL:
1. ALL MICRO-TRENCHES SHALL BE COMPLETELY BACKFILLED WITH A TWO SACK CEMENT SAND SLURRY TO FINISH GRADE BY THE END OF THE WORK DAY. CEMENT SLURRY SHALL NOT BE USED OVER WATER OR RECYCLED WATER CROSSINGS.
2. CONTRACTOR SHALL USE A VIBRATOR TO ENSURE SLURRY FILL WITHOUT VOIDS.
GRIND AND RESTORATION SECTION:
1. COMMENCEMENT OF SURFACE PREPARATION SUCH AS GRINDING/CHIPPING FOR ASPHALT CONCRETE PAVING REPLACEMENT WILL OCCUR NO SOONER THAN 48 HOURS AFTER SLURRY BACKFILL OF THE TRENCH. FIELD CONDITIONS OR MATERIAL USED MAY NECESSITATE A LONGER WAIT AS DETERMINED BY THE CITY'S ENGINEERING INSPECTOR.
2. AS SOON AS BACKFILL HAS CURED, NOT TO EXCEED 30 CALENDAR DAYS, ASPHALT CONCRETE SHALL BE GROUND AND CAPPED AS FOLLOWS:
2.1. 2" MIN. DEPTH OF GRIND IS REQUIRED. ROADWAYS IN POOR CONDITION ARE SUBJECT TO LARGER DEPTH REQUIREMENTS PER CITY ENGINEER (6" MAX.)
2.2. EXISTING AC AND SLURRY BACKFILL SHALL BE GROUND DOWN, FROM LIP OF GUTTER (OR EDGE OF ASPHALT) TO 8 INCHES BEYOND OUTERMOST EDGE OF MICRO-TRENCH AND RESURFACED WITH CLASS C2 ASPHALT AND BINDER GRADE PER GREENBOOK. WHEN THE CAP LIMIT IS WITHIN 2-FEET OR LESS FROM THE GUTTER FACE, CURB, SLAB, OR STRUCTURE, THE CAP LIMIT SHALL EXTEND TO THAT ITEM.
2.3. TACKCOAT ALL EDGES WITH EITHER SS-1H EMULSIFIED ASPHALT OR PG 64-10 PAVING ASPHALT IMMEDIATELY BEFORE THE ADJOINING ASPHALT CONCRETE IS PLACED.
2.4. WHERE ANGULAR CROSSING OR ANY LENGTH-WISE CUTS OF A BIKE LANE OCCUR BY MICRO-TRENCHING, THE CAPPING LIMITS SHALL EXTEND THE FULL WIDTH OF THE BIKE LANE. PERPENDICULAR CROSSINGS MAY RECEIVE TYPICAL CAPPING WIDTH PER NOTE 2-2.1) ABOVE. PAVEMENT MARKINGS SHALL BE RESTORED IN KIND. WHERE NO BIKE LANE MARKINGS
EXIST , THE CONTRACTOR SHALL CONSULT WITH THE CITY'S ENGINEERING DIVISION TO DETERMINE THE LOCATION OF ANY PLANNED BIKE LANES SO THAT THE IMPACT OF THE PAVEMENT SURFACE MAY BE AVOIDED.
2.5. PAVEMENT SHALL BE LEVEL WITH ADJACENT ROADWAY ELEVATIONS AND SHALL PROVIDE A SMOOTH SURFACE PER GREENBOOK SECTION 302-5 AND SUBJECT TO ACCEPTANCE BY THE CITY'S ENGINEERING INSPECTOR.
3. MICRO-TRENCHING MAY BE PERMITTED UPON THE CITY ENGINEER'S DISCRETION ON SPECIAL PAVEMENTS SUCH AS DECORATIVE ASPHALT PAVING, AND THROUGH EXISTING IMPROVEMENTS SUCH AS SPEED HUMPS. SPECIAL PAVEMENTS AND EXISTING IMPROVEMENTS SHALL BE RESTORED IN KIND AS APPROVED BY THE CITY ENGINEER.
VAULTS AND SERVICE CONNECTION:
1. CONNECTION TO SERVICE LATERALS, JUNCTION BOXES, ETC., SHALL BE DONE SUCH THAT CURB AND GUTTER ARE NOT DISTURBED, SETTLED, OR DAMAGED. REMOVAL LIMITS OF SIDEWALK SHALL FOLLOW APPLICABLE STANDARDS AND REQUIREMENTS AS APPROVED BY THE CITY ENGINEER.
CITY OF PASO ROBLES
ENGINEERING DIVISION
DRAWN BY: DESIGNED BY:
REVISIONS
DATE BY
DWG-NO.
MICROTRENCHING
DETAIL (3 OF 3) U-8.2
DP LF
Paso Robles, CA 93446
Subject: Response to Micro-Trenching Ordinance
Dear City Council of Paso Robles,
I hope this message finds you well. I am writing on behalf of AT&T to address a specific concern regarding the micro-trenching ordinance, particularly the provision that states: “UP TO TWO (2)
VERTICALLY STACKED CONDUITS CAN BE PLACED WITHIN A
MICRO-TRENCH.”
While we appreciate the City of Paso Robles’ proactive efforts to establish guidelines for micro-trenching, we foresee a potential issue with the limitation on the number of conduits permitted. For a particular neighborhood, AT&T has the capability—and may request—to place up to eight (8) 1.25” conduits while still maintaining compliance with the 12” slurry cover requirement. This capability ensures that we can maximize efficiency and futureproof broadband infrastructure for the city, but the current limitation may hinder these efforts.
AT&T would like to partner with the City of Paso Robles to collaborate on this ordinance in order to create a best practice that supports the continued expansion of broadband infrastructure. We believe this partnership can result in an ordinance that meets the city's needs while enabling AT&T to deliver innovative and highquality broadband services to the community.
Thank you for your time and consideration. We look forward to continuing our collaboration with the City of Paso Robles to support broadband expansion and enhance connectivity for its residents.
Saxon, Bettye
Q3 - Public Comment
Sincerely, Charlton Birden Associate Director – OSP Plng & Eng Design AT&T (
Bettye J. Saxon, Ed. D.
AT&T External Affairs
Monterey, CA 93940
Saxon, Bettye
Q3 - Public Comment
Council Agenda Report
From: Darcy Delgado, Associate Planner
Subject: 2024 Annual Report on the Implementation of the General Plan CEQA Determination: Staff recommends the City Council find this action is not a project under the California Environmental Quality Act pursuant to the State’s Guidelines to Implement the California Environmental Quality Act (CEQA), §§ 15060, subd. (c)(2)-(3), 15378.
Date: May 6, 2025
Facts
1. California Government Code Section 65400 requires the planning agencies of local jurisdictions to prepare an annual report on the status of the General Plan and progress towards its implementation.
This report will be submitted to the State late May 2025.
2. Among other things, the Housing Element component of the report must include an assessment of progress made toward meeting the City’s share of the Regional Housing Need Allocation (RHNA).
3. The City’s General Plan Annual Report is provided as an attachment to this staff report, and is divided into two parts. The first part (Attachment 1) is a table containing brief descriptions of every Action Item of the General Plan, (except those in the Housing Element), with thumbnail descriptions of the status of their implementation. The second part (Attachment 2) is the Housing Element Report, with discussions of progress toward meeting the City’s share of the RHNA, and it includes a similar table of Housing Element Action Items and status.
4. The Housing Element Report highlights the number of housing units in plan check, building permits issued, units that are under construction, and the number of units completed in 2024. It also provides a discussion on the housing units proposed, rehabilitated, and/or conserved (e.g. subsidized affordable housing that may be at-risk of being converted to market-rate housing).
5. Lastly, this report provides a brief discussion of issues related to housing development constraints, and proactive initiatives the City is pursuing to remove barriers to construction of housing.
6. The Planning Commission received this report on April 22, 2025 and recommended the City Council direct staff to send the report to the State.
Options
1. Approve the 2024 General Plan Annual Report as recommended by Planning Commission, and direct staff to submit to the State;
2. Request modifications specified by the City Council for staff to address in the Report;
3. Provide alternative direction to staff.
Analysis and Conclusions
In 2003, the City’s General Plan was officially adopted, and since then, there have been several amendments to the Plan including updates to the Circulation Element (2019), Noise Element (2019), and the Housing Element (2020). The General Plan includes 240 policy action items, excluding those in the
Housing Element. The City has made substantial progress with the implementation of the General Plan, and the status of these actions are as follows:
142 actions are ongoing activities
o 23 of which have completed subtasks
71 actions are complete and no additional ongoing activities required 16 actions are in process
7 actions are not yet scheduled for implementation
4 actions are informational with no specific threshold In early 2019, the City completed a comprehensive update to the Circulation Element and the Bicycle and Pedestrian Master Plan. The Circulation Element update’s primary focus was to reassess the planned road improvements in the circulation network and to determine if certain improvements should be modified or eliminated. Various changes that have been incorporated into the Traffic Impact Fee needs list and cost estimates have resulted in a $50 million dollar reduction to future circulation improvements, which translates into an overall 24% Traffic Impact Fee reduction. This cost savings will not reduce future circulation capacity improvements; rather the City will now have a more focused list of projects that are needed to accommodate City buildout. In addition, the transportation system optimization also reduces the burden of existing residents for the City’s share of the needed improvements. In the long run, the system will be less expensive to build and maintain since unneeded projects have been removed.
In the Fall 2019, the Noise Element was also updated to help better address complaints from noise sources that have increased in the last several years as a result of new trends seen with the music venues and short term rentals. The key changes of the Noise Element update included revised noise standards for the community, new goals and policies acknowledging noise associated with Short-Term Rentals (STRs), and new goals and policies specifically targeted at concert and other entertainment venues.
In December of 2020, the City updated its 6th Cycle Housing Element, which has an eight-year planning period from 2021 through 2028. Key changes to the Housing Element include new policies and programs that identify the actions that will be taken to make sites available during the new planning period with appropriate land use and development standards and with services/facilities to accommodate the City’s share of regional housing need for each income level. Some of the more notable programs that stand out in the Housing Element include updating the City’s Accessory Dwelling Unit (ADU) Ordinance to promote construction of ADUs, reducing parking standards for smaller units located outside the Uptown/Town Centre Specific Plan, and utilizing fractional density units to encourage smaller units that are affordable by design.
Housing Production
The status of housing production and entitlement activity in 2024 is summarized in Table 1 below:
Table 1- Summary of Housing Production
Activity
Single Family
Units
Accessory
Dwelling Units
(ADU/2nd
Units)
Multi-Family
Units Total
Issued Certificates of Occupancy 48 21 78 147
Units built in Uptown/Town
Center Specific Plan Area 4 15 3 22
Units under construction 179 129 2 310
Activity
Single Family
Units
Accessory
Dwelling Units
(ADU/2nd
Units)
Multi-Family
Units Total
Units in plan check 161 134 230 525
Units entitled 0 0 28 28
Regional Housing Needs Allocation (RHNA) - 1/1/19 to 12/31/28 The purpose of the housing report is to monitor the implementation of the City’s General Plan Housing Element and progress toward meeting the City’s Regional Housing Needs Allocation (RHNA). The State Regional Housing Needs Allocation target requirement for the prior (5th Cycle) 2014-2019 planning period required the City to plan for 492 dwelling units. Under the new 6th Cycle, which has a planning period from 1/1/19 to 12/31/28, the City is required to plan for 1,446 dwelling units. It should be noted that while Housing Element Law does not require the City to ensure that all RHNA-assigned units are constructed within the planning period, it does obligate the City to maintain an adequate inventory of appropriately zoned sites with available infrastructure and utilities to support that level of development. The following table shows the building permits that have been issued to date.
Table 2- Permitted Units Issued by Affordability
Income
Level
6 th Cycle
RHNA
Allocation
Permitted Units Issued by Affordability
Total
Units by
Income
Level
Total
Units
Remaining
by Income
Level
Projection
Period
(2019-
2020) 2021 2022 2023 2024
2025-
2028
Extremely
Low &
Very Low
356 0 0 23 65 0 -- 88 268
Low 224 9 14 15 66 64 -- 168 56
Moderate 259 54 29 220 33 67 -- 403 0
Above
Moderate 607 22 29 45 44 179 -- 319 288
Total
Units 1,446 85 72 303 208 310 -- 978
Total
Remaining
for RHNA
Period
612
Although the State does not require jurisdictions to ensure how many units receive a Certificate of Occupancy, since this standard is dependent on the private developers, the following table is also included to compare the RHNA requirements to the number of completed units.
Table 3- Completed Units by Affordability
Income
Level
6 th Cycle
RHNA
Allocation
Completed Units by Affordability Total
Units
by
Income
Level
Total
Units
Remaining
by Income
2019 2020 2021 2022 2023 2024 Level
2025-
2028
Extremely
Low &
Very Low
356 52 54 0 0 0 0 -- 106 250
Low 224 23 27 8 6 12 10 -- 86 138
Moderate 259 90 18 14 22 92 89 -- 325 0
Housing Constraints and Opportunities Committee
The Housing Constraints and Opportunities Committee (HCOC) was established as part of the 2014 Housing Element. The Committee was appointed by the City Council to review housing issues and make recommendations to the City Council on ways to increase housing production. Over the years, the HCOC has been instrumental in moving forward initiatives, including tailoring fees to unit size to reduce fees for smaller units, substantially reducing of water/sewer charges for new residential construction, and producing a Circulation Element update that resulted in a 24 percent reduction in the transportation impact fee associated with elimination of certain planned improvements.
During the process of updating the 6th cycle General Plan Housing Element, the HCOC met five times to discuss housing issues, identify potential sites and strategies to meet the RHNA, review best practices, provide guidance on potential Housing Element policies and implementing programs, and discuss future housing initiatives.
Since the adoption of the Housing Element, the HCOC has been utilized to provide input back to staff on implementation of the programs identified in the 6th cycle Housing Element, including updates to the Zoning Code. During 2024, the HCOC met once to provide final input on the Comprehensive Update to the Zoning Code, at which time they also discussed updates to the City’s Development Impact Fees. For both of these discussion items, the HCOC has shown tremendous help in facilitating discussions around housing policies and procedures for increasing housing production. The Comprehensive Update to the Zoning Code was finalized by City Council in October of 2024.
Specific Plan Progress
Both the Beechwood Specific Plan and the Olsen South Chandler Ranch Specific Plans were approved in 2020. The Beechwood Specific Plan consists of 952 housing units within an overall 234-acre master planned community on the east side of the City. The Olsen South Chandler Ranch Specific Plan consists of 1,293 new residences on approximately 358-acres, also located on the east side of the City.
Olsen South Chandler Ranch has nearly all of its backbone infrastructure complete with the majority of this work being done during the 2024 reporting season. Due to the timing of this report, substantial development of units is underway within the specific plan, with the recent completion of an affordable housing project. However, these units won’t be reported as complete until next year’s annual progress report. The Beechwood specific plan is still working on their tentative subdivision maps, and they have grading and improvement plans for Phase 1 currently in review.
Summary of Progress & Issues
Out of the 240 General Plan policy action items (not including the Housing Element), 97 percent are completed, ongoing, or are in the process of being completed. The City is tracking progress with the 6th Cycle (2021-2028) Housing Element including progress on new Action Items.
Above
Moderate 607 14 11 10 24 38 48 -- 145 462
Total
Units 1,446 179 110 32 52 142 147 -- 662
Total Remaining
for RHNA Period 784
The City has a 6th Cycle RHNA assignment of 1,446 residential units to be constructed between January 1, 2019 and December 31, 2028. To date, there have been 662 units constructed, or 46% units completed. This represents an increase of 10% completion since the prior reporting year. As of December 31, 2024, there were 147 completed residential units, 310 residences under construction, 525 residential permits either ready to pick up or in plan check, and 28 units entitled. Overall housing development saw an increase in the number of residential units in which permits were issued and/or under construction during 2024, increasing from 208 units in 2022 to 310 units in 2024. The increase is largely due to tract development in the River Oaks II specific plan area, with a large number of homes being built in the Vintage neighborhood, an age-restricted development for residents aged 55 and over. Additionally, development of single-family homes and ADUs in Planning Areas 13 and 15 of the Olsen South Chandler Ranch make up the remaining majority of units under construction, indicating that the specific plan developments are substantial drivers towards the City of Paso Robles current development activity. There were a total of 28 residential units that were entitled during 2024, a significant decrease from the prior reporting year, which had included a majority of units in the Beechwood and Olsen South Chandler Ranch specific plan areas. All 28 units are multi-family, with 27 of the units being moderate income and 1 unit being very low-income category. Due to low entitlement rate, this means that the City should consider revisiting its policies regarding housing accelerator programs to fast-track the housing entitlement process, especially for infill multiple-family type development.
The Housing Constraints and Opportunities Committee made substantial progress in prior years to reducing barriers to housing development, including reducing one of the most significant development impact fees (e.g. transportation fees) and making a recommendation to City Council to reduce those fees as part of the City’s comprehensive update to the Circulation Element which was adopted in early 2019. In 2024, the HCOC met once. Topics discussed by the HCOC included reviewing the City’s progress on the Comprehensive Update to the Zoning Code, which was completed in October 2024, and reviewing an update to the City’s Development Impact Fees.
Fiscal Impact
None
CEQA
Staff recommends the City Council find this action is not a project under the California Environmental Quality Act pursuant to the State’s Guidelines to Implement the California Environmental Quality Act (CEQA), §§ 15060, subd. (c)(2)-(3), 15378¸because it involves general policy reporting and administrative activities which do not involve any commitment to a specific project and will not result in a direct or reasonably foreseeable indirect physical change in the environment.
Recommendation (Option 1)
Approve the 2024 General Plan Annual Report as recommended by Planning Commission, and direct staff to submit it to the California Department of Housing and Community Development.
Attachments
1. General Plan Action Items Status Report
2. General Plan Housing Element Status Report
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Note: The Action Items in the table below are but brief descriptions intended to identify the subject matter of the action items and not to serve as a legal substitute for the full text of the Action Items. Please refer to the General Plan text for the full text of the action items.
Policy Action Item Number & Brief Description Status
LAND USE ELEMENT
LU-1A
Land Use
Categories
1. Amend/update the Zoning Ordinance to ensure that there is a Zoning District for each General Plan Land Use Category on Table LU-2.
Completed: R-5 (RMF-20), Mixed Use and
Senior Housing Overlay Zones.
Vine Street Overlay Zones incorporated into
Uptown/Town Center Specific Plan
Completed for Public Facilities District
2. Allow projects in the Mixed Use land use category and/or in Specific Plan areas to be developed with more than one land use.
Completed: Mixed Use Overlay regulations and
Uptown/Town Center Specific Plan
Completed: Olsen South Chandler Ranch and
Beechwood Specific Plans.
LU-1B
Airport Land Use
Compatibility
1. Prohibit further subdivision of land within the Airport Land Use Review Area, or changes to land use or zoning, that would accommodate additional dwelling units.
Completed: Airport Land Use Plan Update,
2007
LU-2B
Visual Identity
1. Amend/Update the Zoning Ordinance to define standards. Encourage propertyowners to upgrade existing buildings and sites to conform to these standards.Design guidelines have been completed for commercial, industrial, and multi-family
development. Design standards have been
incorporated into the Uptown/Town Center
Specific Plan.
Comprehensive update to the Zoning
Ordinance completed October 2024 with
updates that include better defined
development standards.
2. a. Adopt design standards to clearly articulate how important public views, gateways and landmarks are to be maintained/enhanced.
b. Ensure that residential building lots are of sufficient size to preserve the topographic and aesthetic features of the landscape.
Gateway Design Standards adopted August
2008
Updated the City’s Grading Ordinance, 2016;
Comprehensive update to the Zoning
Ordinance completed October 2024 includes
updates to the Grading Ordinance.
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
As needed/ongoing action
3. Require utilities to be placed underground in new development projects. Ongoing action
4. Continue to enhance the downtown as a priority. Ongoing action
5. Require new development to mitigate its share of the impacts to the natural and built environment as feasible and appropriate.
Completed: Community Facilities District
Completed: Circulation Element adopted as of
February 2019, including AB 1600 fees to offset
impacts to City infrastructure.
As needed/ongoing action: mitigation via
conditions on new development.
LU-2C
Local Heritage
1. Establish a Vine Street Historic Overlay District and adopt design guidelines. Completed: design guidelines Vine Street Overlay District design guidelines
have been incorporated into the Uptown/Town
Center Specific Plan. Historic Preservation
Ordinance adopted 2011.
2. Review new development projects for consistency with the Downtown design guidelines and the Vine Street neighborhood guidelines.
As needed/ongoing action (downtown)
Design guidelines have been incorporated into
the Uptown/Town Center Specific Plan that
apply to the Vine Street district.
LU-2D
Neighborhoods
1. Review/revise the Zoning Ordinance to address the size, use and appearance of accessory structures to ensure neighborhood compatibility.
Comprehensive update to the Zoning
Ordinance completed October 2024 includes
updates to accessory structures.
2. Preserve health and safety, and strengthen the integrity of neighborhoods and districts by implementing traffic calming measures.
Completed: Traffic Calming Program, 2004,
Omni Means
3. Develop safety and traffic calming measures for the design of streets. Completed: Traffic Calming Program, 2004, Omni Means
4. Review and update, as necessary, the City’s Building Security & Construction Standards for exterior lighting, security, and safety measures.
The City adopted the most current version of
the CBSC as certified by HCD.
5. Require all new lighting to be shielded and directed downward in such a manner as to not create off-site glare or adversely impact adjacent properties.
Ongoing plan check review item
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
6. Continue to enforce the glare provisions of the Zoning Ordinance. Ongoing plan check review item LU-2E
Purple Belt
1. Coordinate with the County and private organizations to identify boundaries of and obtain support for a “purple-belt” that buffers the eventual edge of the City.
Adopted November 2009/on-going
2. Acquire development rights/easements within the designated purple belt area. Ongoing action
3. Ensure that the County retains surrounding lands in very low-density rural residential, open space, and agricultural uses.
As needed/ongoing action
4. Implement strategies that help preserve or protect agriculture beyond the City limits.
Completed: see LU-2E #1.
5. Require disclosure agreements for new non-agricultural development within 500 feet of an existing agricultural use.
Ongoing action / Condition of Approval
LU- 2F
Planning Impact
Area
1. Evaluate annexation requests for conformance with adopted General Plan goals, policies, and action items, as well as public infrastructure and service plans.
Completed: Olsen Ranch, Beechwood Area,
and Linne Road (Our Town) Annexations.
Gateway Annexation entitlement complete
including LAFCO approval
2. Continue to review and comment on planning efforts and development projects being considered by the County within the City’s Planning Impact Area.
As needed/ongoing action
LU- 2G
Specific Plans
1. Encourage establishment of Specific Plans for other areas. Complete: Beechwood Specific Plan and Olsen South Chandler Specific Plan
2. With environmental review of new Specific Plans, prepare fire station analysis identifying staffing requirements, station location, and response times.
Ongoing action;
New Fire Station #3 complete
LU- 2H
Downtown
1. Continue requiring new projects to implement the adopted Downtown Design Guidelines and to adhere to the development standards of the Zoning Ordinance.
As needed/ongoing action; Uptown/Town
Center Specific Plan supplement these
guidelines.
2. Promote a vibrant Downtown using several specified methods. Ongoing action; Uptown/Town Center Specific Plan will update and enhance the specified
methods.
LU- 2I
Infill
1. Amend the Zoning Ordinance to allow mixed-use projects in the Downtown and other suitable locations.
Completed: Mixed Use Overlay regulations;
Uptown/Town Center Specific Plan will
continue this effort.
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
2. Prior to or concurrent with consideration of any mixed use projects, stringent design and construction standards shall be established.
Completed: Mixed Use Overlay regulations;
Uptown/Town Center Specific Plan will
continue this effort.
LU-2J
Public Art
1. Public and private development projects shall be required to contribute toward the establishment and maintenance of art in public places.
Completed: Public Art Policy - funding remains
suspended due to prior recession.
FY 24-25: Review and update the Arts in Public
Places ordinance and related process and
procedures including recommendations for
funding.
LU-4A
Service Levels
1. Direct City revenues towards continuing to fund the public services and on-going maintenance/operation of public facilities and utilities provided by the City.
Completed: Community Facilities District
Completed: Update AB 1600 fees to offset
impacts to City infrastructure.
Ongoing action: mitigation via conditions on
new development. CFD annexation required at
Final Map
2. Require new development in annexation areas and/or specific plan areas to establish funding mechanisms to pay for the construction, maintenance, and operation of required City services and facilities on an on-going basis.
Completed: Community Facilities District
Completed: Update AB 1600 fees to offset
impacts to City infrastructure.
Ongoing action: mitigation via conditions on
new development. CFD annexation required at
Final Map
3. Require a fiscal impact analysis for new development in annexation areas and/or specific plan areas and condition projects accordingly so as to ensure that they will be fiscally neutral and not result in a net loss for the City.
Completed: Beechwood Specific Plan and
Olsen South Chandler Specific Plan
Completed Uptown/Town Center Specific Plan.
4. As part of implementation of the General Plan Update:
a. Review/refine the existing Growth Management Plan to address Emergency service needs on a periodic basis.
b. Revise/update the City’s Master Plans of Water, Sewer, Storm Drainage, and Solid Waste and City standards and specifications for public facilities. c. Update the Capital Improvement Program so that it is in conformance with the revised Master Plans.
a. A population-based staffing plan was
developed and presented to City Council
during the budget workshop in January 2020.
Standards of Cover / Risk Assessment and
Strategic Plan endorsed by City Council on
April 5, 2022. Both public safety departments
are presently engaged in developing updated
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
d. Investigate expansion of branch libraries to serve outlying areas and adding new outreach programs, including a book mobile.
e. Implement planned City library expansion into the 2nd floor of the existing library and develop City hall relocation plans, as feasible.
f. Maintain the Youth Arts Center satellite library.
Standards of Cover / Risk Assessment Plans to
assess and address future needs and service
demands resulting from continued
development and population growth
b. Completed: 2021 Water Distribution System
Master Plan completed. Water rates have
been adopted through 2027. Urban Water
Management Plan (2020) completed. Sewer
Master Plan updated in 2019 – Rates updated
through 2025. Recycled Water Master Plan
(2014).
Phase 1 of the Paso Robles Watershed Plan has
been completed. The Storm Drain Master
Plan update will be starting in March 2025.
Solid Waste Master Plan Update: Adopted
November 2010, with rates and services
reviewed and amended in 2015.
c. In process as part of two-year budget cycle.
d. Outreach Services Librarian hired in August
of 2023. Home Delivery policy approved by
Library Board of Trustees in February of 2024
program has been launched. City Council
accepted a Library Foundation funded book
mobile into fleet as part of the FY 24-25
budget, to better establish outreach services.
The unit is scheduled to launch in the Summer
of 2025.
e. Paso City Office Space Programming Study
was conducted by RRM Design Gorup. The
study found that the Library Facilities Master
Plan adopted in 2018 had significant structural
flaws. Alternative conceptual plans were
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
provided for joint expansion of the Library/
City Hall facility located at 1000 Spring Street at
a significantly higher estimated cost. Staff
unsuccessfully applied for a grant to determine
if a joint Library/Recreation/ Community
Resilience Center facility was feasible at the
centrally located Centennial Park property.
Staff will initiate a space planning study in 2025
to determine if the current space can be
updated/ remodeled to better meet
community needs.
f. Library Study Center established at Family
Resource Center (36th & Oak Streets) in 2010.
Library Study Center is now housed in one of
the portable classrooms on site and a
circulating library of children’s materials is
available for check out. Staff is investigating
options for expanding services at the facility.
Due to the closure of the 36th Street campus,
the Study Center Library is being repurposed as
an outreach hub for book mobile operations
and as an off-site classroom for library
programming.
LU-4B
Public Schools
1. Enable collection of impact fees for development of capital facilities for public schools permitted by State Law to be collected with issuance of building permits.
Ongoing action. City coordinates with PRUSD
on school fee collection prior to permit
issuance.
2. Investigate and implement means to eliminate shortfalls that may result from the insufficiency of those impact fees to fund the acquisition of sites and construction of public schools. Such means may include the following:
1. Conditioning legislative actions upon payment of supplemental fees or making dedications of land in lieu of fees.
2. Formation of Community Facilities Districts or equivalent tools which include funding for acquisition of sites for and construction of public schools.
Ongoing: City coordinates with the Paso Robles
School District on future school site needs and
the collection of school fees as part of specific
plan process.
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
3. Support the school districts’ request that public school sites be located in accordance with specified standards:
As needed/ongoing action, as part of specific
plan process.
4. Refer development applications to Paso Robles and Templeton School Districts. Seek to minimize traffic and circulation problems in the vicinity of school sites.
Ongoing action/Creston Road Safety
Improvement project underway
2018 Bike/Ped Master Plan completed to
encourage students to walk/bike to school.
5. Facilitate the provision of schools by continuing to work closely with the school districts during the site selection and development process.
As needed/ongoing action
CIRCULATION ELEMENT
CE-1A
Circulation
Master Plan
1. Maintain a multimodal Transportation Impact Fee (TIF) program (AB 1600) so that new development contributes to improvements that offset cumulative impacts to mobility. The impact fee program will list needed improvements to automobile, pedestrian, bicycle, and transit facilities. To encourage the reduction of City-wide VMT (Vehicle Miles Traveled), the mitigation fee program will recognize and support Transportation Demand Management (TDM) strategies associated with new development. Fees will be assessed in relation to cumulative impacts and will be proportional to the number of auto trips generated by the development. 2019 Development Impact Fee and Needs List
adopted. Implementation ongoing.
2. Establish development application conditions of approval to require access for all modes of travel, and to make appropriate improvements to the transportation system serving subject sites including frontage improvements, dedication of right-ofway, in tract improvements, and all improvements consistent with the Circulation, City Engineering Standards, and needed to mitigate transportation impacts.
Ongoing action, development review process by
City Engineer
3. Preserve right-of-way in accordance with the Circulation Master Plan and all adopted Plan Lines.
As needed/ongoing action, development review
process by City Engineer
4. Request the County to mitigate transportation impacts to City facilities by requiring participation by County development projects in the City’s TIF program for all new development in the Paso Robles-San Luis Obispo County referral area.
As needed/ongoing action
County referral reviewed by City Engineer
5. Maintain the Zoning, Subdivision, Streets and Sidewalk chapters of the Municipal Code, as well as the Standard Conditions of Approval and Standard Specifications and Details, for consistency with a “complete street” approach where all modes of travel are routinely accommodated.
City Engineering Standards in progress as time
permits. Partial update in 2023 and more updates
planned for 2024-2025
6. Implement the City’s Traffic Calming Program when designing new or Ongoing implementation
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
modifying existing street improvements. Neighborhood preservation and context shall be a factor
in the consideration of community mobility objectives.
7. Continue to actively seek federal, state, and regional grants and funding. Ongoing action. Received a Highway Safety Improvement Program grant for intersection and
bike safety improvements. Applied for Active
Transportation and Safe Streets for All grants.
8. Construct roundabouts in lieu of traffic signals where appropriate conditions exist to maximize the efficiency of streets, maintain continuous but moderate traffic flow, reduce accident severity, and enhance pedestrian and cyclist activity.
Several roundabout designs are planned as part of
the City Circulation Element. Ongoing action
through Development review by City Engineer.
Construction is complete for the Linne/ Sherwood
and Airport/ Sherwood roundabouts. Design of the
Airport Road roundabout north of the proposed
Huer Huero Bridge is in progress.
9. Install all transportation improvements in accordance with current accessibility standards.
Ongoing action
10. Establish limitations on truck traffic in residential areas and adopt designated truck routes.
Complete. See Pavement Management Plan. 2019
Circulation Element update adopts truck route map.
11. Evaluate new development projects and major roadway improvements in the context of the City’s adopted transportation impact study guidelines that specify the process by which new development impacts are identified. Street widths and consideration of additional traffic lanes shall be evaluated in the context of potential impacts to community character, convenience for non-auto modes, safety, and cost/benefit.
Ongoing implementation through Development
review by City Engineer
12. The City will coordinate with Caltrans on planning and implementation of congestion management strategies on SR 46 East, SR 46 West, and US 101. These strategies will include improved connectivity for all modes of transportation across these corridors and in areas on either side of these facilities. The City and Caltrans will work in concert with the most recent Regional Transportation Plan and Corridor Studies.
Ongoing action, ongoing CEQA referral process.
SLOCOG is currently conducting a Corridor study
that addresses SR46 and US101 within the City of
Paso Robles. It is anticipated that implementation
projects will be identified in the final corridor study.
This study is ongoing.
12a. Implement Parallel Route plan and funding Parallel Routes Plan adopted. Funding of project elements to be provided by Council as needed.
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
13. The City will monitor the performance of the transportation network on a regular basis. The City will optimize traffic signals to maximize the efficiency of the existing network. The city will explore the feasibility of coordinating all traffic signals with a centralized traffic signal control system.
Local Roadway Safety Plan adopted in 2021. Niblick
Road Corridor study adopted in 2020. Creston Road
Plan adopted in 2018.Traffic Signal Master Plan
project is in process.
14. Maintain and/or improve emergency vehicle access on all existing streets. New development and redevelopment projects shall provide emergency vehicle access as required by all applicable codes and the Emergency Services Department.
Ongoing action, development review referral to
Emergency Services Dept.
15. Integrate the City’s traffic model with City land use planning and the regional traffic model produced by the San Luis Obispo Council of Governments.
Complete
16. View all transportation improvements, new or retrofit, as opportunities to improve safety, access, and mobility for all travelers and recognize bicycle, pedestrian, and transit modes as integral elements of the transportation system.
Ongoing action
Development review by City Engineer
17. Transportation policies should link transportation planning and land use planning. Ongoing action Development review by City Engineer
18 Transportation systems and facilities should be planned, designed, and constructed so as not to serve as barriers to community resources.
Ongoing action
Development review by City Engineer
19. Transportation improvements shall improve accessibility and promote physical activity.
Ongoing action
20. The City shall adopt and implement a Bicycle and Pedestrian Transportation Plan (BPTP).
Plan adopted in 2019.
21. Manage curb space usage to balance demand for short and long-term parking, passenger drop-off, and commercial loading zones
Ongoing action as needed
22. Systematically evaluate City streets to prioritize countermeasures to reduce hazards.
Pursue grant funding to implement hazard reduction projects.
Local Roadway Safety Plan adopted in 2021.
CE-1B
VMT
1. New developments or redeveloped areas shall conform to the following guidelines to the maximum extent possible:
a) New streets and intersections shall be designed for continuous flow at moderate speeds. Low volume residential streets should be designed for speeds of 25 miles per hour or less. Higher order roadways shall be designed for 35 mph or less with stable flows. Roundabouts shall be considered in lieu of traffic signals for intersection control as needed.
b) To the extent practical, new residential streets shall provide a grid type, interconnected roadway system with typical block lengths of 300 feet to 600 Ongoing action
To be implemented with development of new
Specific Plans
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
feet. Cul-de-sac streets are discouraged. New subdivision tracts will provide future street connection points on all four sides (north, south, east, and west).
Street widths shall be no greater than needed to accommodate emergency service vehicles.
c) Lane configurations for new intersections shall be limited to provide for moderate speeds and pedestrian and cyclist safety. Congestion during certain time periods shall be accepted in exchange for shorter pedestrian and cyclist crossing distances, less overall paved area, reduced costs, and preservation of small-town character. Corner curb extensions (bulb-outs) should be considered to improve and shorten pedestrian crossings.
d) Circulation systems shall provide for all modes of travel, and shall typically include sidewalks, bicycle lanes, and transit stop amenities. Continuous paths of travel shall be established and connected for walking and bicycling from and throughout the development area to Downtown and other key destinations. As appropriate and practical, all development shall conform to the most current Bicycle and Pedestrian Transportation Plan adopted by the City Council and the most current trail system plan. Impact fees shall be assessed to mitigate impacts and to contribute to updates to the Bicycle and Pedestrian Transportation Plan. e) New specific plans shall include a mix of uses that are well connected for all modes and built at higher densities to help minimize the number of single occupant vehicle trips and reduce vehicle miles traveled.
2. Develop well connected routes for bicycles throughout the City in accordance with the most current City Council adopted BPTP.
Ongoing action
2018 Bike/Ped Master Plan completed.
3. The City shall make the travel demand model available to consultants of land development applications to verify traffic generation assumptions in accordance with the General Plan. The model will be used to estimate the change in VMT resulting from proposed development.
As needed/ongoing action
4. To the extent feasible, maintain a general plan that provides for a reasonable, ongoing balance between jobs and housing units of various types to maximize the potential for residents to live in the community in which they work. This approach reduces the potential for longer vehicle commutes and reduces City-generated and Countywide VMT.
Ongoing action, Economic Strategy
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
CE-1C
Airport
1. Establish policy and standards consistent with the Airport Master Plan and Airport Land Use Plan Updates
Ongoing action
2. Pursue federal and state grants for airport improvement projects. Ongoing action
3. Enhance bicycle, pedestrian, and transit access to allow employees and passengers to use non-automobile modes of travel to and from the Airport.
As needed/ongoing implementation through the
Circulation Element projects.
4. Encourage car and vanpool programs through employer incentive programs. Local public transit was transferred to the Regional Transit Authority. Ongoing local/regional
connectivity.
CE-1D
Transit
1. Continue operation of local bus service including inter-connectivity with regional transit.
Local public transit was transferred to the Regional
Transit Authority. Ongoing local/regional
connectivity.
2. Coordinate with SLO Regional Transit Authority to improve information available on transit options and support advertising/outreach programs for transit.
Local public transit was transferred to the Regional
Transit Authority. Ongoing local/regional
marketing/outreach and coordination with other
transit services.
3. Develop Park and Ride Lots at convenient locations throughout the City, including new specific plan areas.
Ongoing action; SLOCOG is lead agency on this
effort. Plans to expand park and ride capacity near
Union Road and Highway 46 under consideration.
4. Establish a Master Plan of transit routes within the City coordinated with regional routes. Require new development and redevelopment projects to include design elements that promote transit use in accordance with the Master Plan such as locating sheltered bus stops near neighborhood focal points, shopping, and service destinations.
Complete; The local routes within Paso Robles were
modified to better connect with Regional Route 9 to
and from San Luis Obispo as part of the
consolidation efforts. The new route schedules
went into effect on August 17, 2014.
5. Locate transit routes on streets serving medium and high density development where feasible.
Ongoing action; routes exist along thoroughfares
lined with significant development. New routes will
be considered for planned future development.
6. Link neighborhoods to transit stops and park and ride lots by providing direct bicycle and pedestrian access.
Ongoing action, Specific Plan process
7. Support the development of a transit/trolley loop serving the Downtown area to encourage a “park once” strategy.
This project is on hold pending resolution of parking
plans for the downtown.
8. Support and improve the existing multimodal facility on Pine Street. Improvements at transit center have been completed (i.e. traffic circle), and expansion of
parking facilities is complete, 2015.
Attachment 1
Status of General Plan Action Items as of December 31, 2024 Policy Action Item Number & Brief Description Status
9. Support convenient transit service to employment, education, and government centers as funding allows. Work with SLO Regional Transit Authority to provide fixed route and/or commuter bus service as appropriate.
Ongoing action; SLORTA has added new hours to
help get college students to and from late night
classes. Existing routes provide service to
employment, education, and government center in
Paso Robles. SLORTA is collaborating on
improvements to commuter bus service.
10. Develop a plan to monitor transit system performance and evaluate expansions to transit service.
Ongoing action; SLORTA monitors performance of
all routes and the transit system as a whole through
the compilation and reporting of ridership, service
hours/miles, costs, and other metrics. Expansion of
services currently being evaluated include the
evening shuttle from Cuesta college’s Paso Robles
campus and additional express runs between Paso
Robles and San Luis Obispo on SLORTA’s route 9.
CE-1E
Rail
1. Maintain adequate freight rail service to extent that freight service does not conflict with the Town Center Plan.
Ongoing action
2. In conjunction with SLOCOG, support expanding Amtrak rail service. Ongoing action
3. Promote the Amtrak bus feeder link, which provides connections to trains north in the Central Valley.
Amtrak bus to Hanford is operating
4. Pursue funding for a grade-separated railroad crossing at 28th Street to connect the Oak Park area to the Black Oak Commercial District.
City staff will pursue grant or other funding
CE-1F
Pedestrian &
Bicycle Access
1. Maintain and update as needed the Bicycle and Pedestrian Transportation Plan (BPTP) identifying and prioritizing improvements to the bicycle and pedestrian network to support biking and walking as viable primary modes of travel within Paso Robles. The BPTP shall provide bike facilities on or parallel to all major arterials (including bridges) and a network of off-street paths to facilitate commute and recreational bicycle travel. It shall provide pedestrian facilities connecting new developments to existing City amenities and seek to close gaps in the pedestrian network. The BPTP will identify bicycle priority streets and bicycle routes to create a fully connected network throughout the City.
Combined Pedestrian and Bicycle Master Plan
completed. Adopted Fall 2018. Augmented by Local
Roadway Safety Plan Approval and Niblick Road
Corridor Plan Approval.
2. Provide safe and convenient pedestrian, bicycle, and vehicle access to Cuesta College North County Campus, through the following means:
a) Incorporate access to and from the campus in City circulation, pedestrian, bicycle, and transit planning.
Implementation Ongoing
Crosswalk bulbout design approved for safe
crossing enhancement.