Loading...
HomeMy WebLinkAboutMINUTES - 06172008 - C.123 11 C '* Contra *, s Costa • ;4� County . casTa co8p`�. TO: BOARD OF SUPERVISORS Rev4 FROM: Dennis M. Barry, AICP, Interim Director Conservation and Development Department DATE: June 17, 2008 SUBJECT: BART Transit Village Maintenance Community Facilities District, Contra Costa Centre SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT a Resolution of Intention relating to establishment of a Mello-Roos Community Facilities District for the BART Transit Village, Contra Costa Centre area. FISCAL IMPACT None. Consultant costs required to establish the Community Facilities District are paid by the involved developer, and all costs of administering the District would be covered by the voter approved special tax. CONTINUED ON ATTACHMENT: X YES SIGNATURE: C�� RECOMMENDATION OF COUNTY ADMINISTRATO RECOM ENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED ✓ CtHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A %/ UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Jim Kennedy 5-7225 orig: Community Development cc: County Administrator ATTESTElJ'-jMt- County Counsel JOHN CULLEN, CLERK OF THE Treasurer-Tax Collector BOARD OF SUPERVISORS Auditor-Controller AND THE COUNTY ADMINISTRATOR Public Works Redevelopment Agency via: Redevelopment - * Quint & Thimmig Bllt,tC• !L{.ti �, DEPUTY * BART * AvalonBay Communities GACDBG-REDEV\MelloRoosCFD\BART Transit Village\Board.Order.BART Transit village 6.17.08.rev4.doc BACKGROUND/REASONS FOR RECOMMENDATIONS Mello-Roos Community Facilities Districts are a mechanism to finance infrastructure and services for approved development projects. A voter approved special tax may be used to pay for eligible services, or to pay debt service on tax-exempt bonds issued by the District. Pleasant Hill Transit Village Associates, LLC(the"Developer")is obligated by a business agreement with the County Redevelopment Agency to participate in a mechanism to generate funds for maintenance of Public Works Facilities in the Contra Costa Centre area in its development of the BART Transit Village. The Agency Assistance Agreement of December 19, 2005 provides that the developer will pursue establishment of a Mello-Roos Special Tax to, at a minimum, provide for what is described below as the Tier 1 tax. The tax for services would be comprised of two tiers: Tier I would be a flat $50,000/year for the maintenance of area benefiting infrastructure such as the Iron Horse Overcrossing of Treat Blvd (a pedestrian and bicycle overcrossing at Jones Road and Treat Blvd.), Walden Green (a linear park immediately to the east of the BART Transit Village project), and the proposed pedestrian and bicycle shortcut path from the Las Juntas Way/Cherry Lane area to the David/Minert/Bancroft area of Walnut Creek; and Tier 2 would be an annual special tax to cover the costs of maintenance associated with the specialized infrastructure being installed as part of the BART Transit Village Project, including decorative lighting,special pavers,parks and plazas,street furniture, etc. The Tier 2 tax would be indexed for inflation, and would be permanent. It has been determined that the best vehicle for generating the service tax is through a Mello-Roos Community Facilities District proceeding. Expenditures to be covered by the Special Tax may include payment of staff expenses(including salary, benefits, and overhead), and expenses related to the administration and collection of the special tax. The BART Transit Village is a 522 unit residential/mixed use project that includes 422 rental units& 100 for- sale condominiums, approximately 35,500 square feet of retail,a business conference center and a 290,000 square foot office building.The Tentative Map is approved, as is the Preliminary and Final Development Plan (County File SD-058950, DP-023041, and DP-043099 respectively, which were approved by the County in 2002 and 2005). The County adopted financing policies for Community Facilities Districts(CFD)on September 13, 1994. Two portions of the financing policies are proposed to be waived by adoption of the recommended Resolution of Intention. First, the policies require submittal of an application setting forth the parameters of the proposed development, and the nature of the facilities to be maintained by the proposed Mello-Roos Special Tax. The BART Transit Village Project is the subject of an extensive number of prior business agreements between the County Redevelopment Agency and the Developer,the Pleasant Hill BART Leasing Authority(a joint exercise of powers authority comprised of the San Francisco Bay Area Rapid Transit District[BART],the County,and the Redevelopment Agency)that have provided all the information necessary to proceed with the formation of the proposed Mello-Roos Community Facilities District. The second waiver relates to a policy of no escalating Special Tax on residential property. The BART Transit Village is primarily a residential rental development, along with retail,and an office component. The party voting in the proposed CFD proceeding will be the party paying the special tax. The BART Transit Village owner has requested the escalation of a portion of the Special Tax be provided for. The BART Transit Village is going to be developed on land leased to it by the Pleasant Hill BART Leasing Authority, a joint powers agency comprised of BART,the County,and the Redevelopment Agency. Conditions precedent for executing the initial sub-lease for the apartments has not yet been fully satisfied. In order to not hold up the formation of the CFD, the County will sublease property that it is leasing from BART(a portion of what is now Fox Creek Park) to the Developer. The sublease will permit the Developer to take all actions necessary to establish the CFD. The operations associated with Fox Creek Park will not be affected by the sublease. A copy of the sublease is attached as Attachment A. The recommended actions responds to a petition received from the property developer (copy attached as Attachment B), and conform to the requirements of the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311 of the California Government Code). It is anticipated that a Resolution of Formation related to establishing the District will be forwarded to the Board of Supervisors in July, 2008. JK:dk G:\CDBG-REDEV\MelloRoosCFD\BART Transit Village\Boa rd.Order.BART Transit village 6.17.08.rev4.doc ATTACHMENT A FORM OF FOX CREEK PARK SUB-LEASE C-4 ATTACHMENT B Petition C-5 Quin)&1lwrunig LLP 4/21/08 5/29/08 6/3/08 PETITION (Including Waivers) To Create a Community Facilities District and With Respect to Related Matters To the Board of Supervisors County of Contra Costa 651 Pine Street Martinez,California 94553 Members of the Board of Supervisors: This is a petition to create a community facilities district, and with respect to related matters, under Sections 53311 and following of the California Government Code (the "Act"), and the undersigned hereby states as follows: 1. Petitioner. This petition is submitted by Pleasant Hill Transit Village Associates, LLC (the "Petitioner"), as the prospective lessee of the parcel of land identified by the legal description attached hereto as Exhibit A (the "Land"). By submitting this petition, Petitioner warrants to the County of Contra Costa (the "County") that prior to July 22,2008,the Petitioner will have entered into a sublease of the Land with the County. 2. Proceedings Requested. Petitioner hereby asks that the Board of Supervisors of the County undertake proceedings under the Act to create a community facilities district to be designated "County of Contra Costa Community Facilities District No. 2008-1 (BART Transit Village)" (the "CFD") and to levy special taxes in the CFD. 3. Boundaries of CFD. Petitioner hereby asks that the territory to be included in the boundaries of the CFD include the Land. 4. Purpose of CFD. Petitioner hereby asks that the CFD be created and the special taxes be levied for the CFD in order to provide funds to pay for the services described in Exhibit B hereto,and for payment of the costs of administering the CFD. 5. Flection. Petitioner hereby asks that the special election to be held under the Act to authorize the levy of the special taxes and to establish an appropriations limit for the CFD be consolidated into a single election and that the election be conducted by the County and its officials using mailed or hand-delivered ballots,and that such ballots be opened and canvassed and the results certified at the same meeting of the Board of Supervisors of the County as the public hearing on the CFD under the Act is held or as soon thereafter as possible. 03007.21:J9895 6. Waivers. To expedite,the completion of the proceedings for the CFD, all notices of hearings and all notices of election, applicable waiting periods under the Act for the election and all ballot analysis and arguments for the election are hereby waived by the Petitioners. This petition is dated June 2- 2008. PLEASANT HILL TRANSIT VILLAGE ASSOCIATES LLC,a Delaware limited liability company By: PLEASANT HILL MANAGER,LLC, a Delaware limited liability company its Manager By: AvalonBay Communities,Inc., a Maryland corporation, its Sole Member By: Name: -ST OQ5� Title: SSS mfz -2- EXHIBIT A LEGAL DESCRIPTION OF THE LAND TO BE LEASED BY THE PETITIONER A portion of Parcels O-C244 and 244.1 as said parcels are shown on a map entitled, "San Francisco Bay Area Rapid Transit District, Record Map of Right of Way, Central Contra Costa Line" recorded in Book 3 of BART maps at page 7 in the Office of the County Recorder of Contra Costa County,being also a portion of Rancho Las Juntas,described as follows: BEGINNING at the point of intersection of the back of existing sidewalk located along the southerly side of Las Juntas Way with the easterly line of"Parcel One"as shown on a map entitled, "2nd Updated A.L.T.A. Survey"prepared by Aliquot Engineering dated Rev.2,3/1/89 and running thence (1) Easterly along the back of sidewalk, 87 feet more or less to an angle point in the sidewalk,thence (2) Southerly, along the westerly back of sidewalk, along a BART parking lot, 183 feet more or less to an angle point the sidewalk,thence (3) Westerly, along the northerly back of sidewalk along the northerly line of Wayne Drive 65 feet more or less,thence (4) Along the westerly line of the aforementioned "Parcel One" North 17.00 feet, thence (5) Along the same N 2°24' 37"E.37.05 feet,thence (6) Still along the same N 4° 54' 55" E 124.98 feet to the point and place of BEGINNING Containing 0.31 acres,more or less. Note: The above-described parcel constitutes a portion of Contra Costa County Assessor's Parcel No. 148-221-036, as well as a portion of an adjacent Contra Costa County Assessor's Parcel. A-1 EXHIBIT B DESCRIPTION OF SERVICES ELIGIBLE TO BE FUNDED BY THE CFD Services: The services to be funded,in whole or in part,by the CFD include all direct and incidental costs related to the foregoing: Tier 1. (a) Maintenance of the Iron Horse Trail overcrossing over Treat Boulevard, which is located in the vicinity of the CFD;including,but not limited to,the following: • Structural steel painting on a programmed basis; • Maintenance and replacement of deck drainage and expansion joints; • Maintenance and replacement of railing and projectile fencing; • Maintenance and replacement of bridge deck and aesthetic lighting; • Landscape maintenance and replacement; • Traffic signal repair/replacement;and • Bridge deck pavement sealing and replacement. (b) Maintenance of the Walden Green linear park,which is located in the vicinity of the CFD,including,but not limited to,the following: • Landscape maintenance and replacement,including mowing,watering, weeding,and replacement; • Repair and replacement of signage; • Repair and replacement of irrigation lines and water lines; • Trail paving and sealing; • Trash pick-up; • Water and electricity requirements;and • Security,.including the repair and replacement of fencing. (c) Maintenance of the Contra Costa Centre Shortcut Path for pedestrians and bicycles, from the Brancroft/David/Minert area of Walnut Creek to the Contra Costa Centre area, including to BART and to the BART Transit Village, and located in the vicinity of the CFD;including,but not limited to,the following: Trail paving and sealing; • Repair and replacement of signage; • Landscape maintenance and replacement • Repair and replacement of irrigation lines; • Security,including the repair and replacement of fencing and security call- boxes; • Water and electricity requirements;and • Trash pick-up. B-1 Tier 2. (a) Maintenance of street lights in the Contra Costa Centre area, within and in the vicinity of the CFD, including, but not limited to, the maintenance, operation and replacement of fixtures, lighting and appurtenances, and electricity requirements. (b) Maintenance of colored concrete areas within portions of the roadways and sidewalks in the Contra Costa Centre area,within and in the vicinity of the CFD, including, but not limited to, maintenance of surface areas, repair and replacement,trash pick-up,and related services. (c) Maintenance of landscaping within portions of the roadways and sidewalks in the Contra Costa Centre area, within and in the vicinity of the CFD, including, but not limited to,maintenance of street trees,median landscaping and sidewalk landscaping. The CFD may fund any of the following related to the services described above: obtaining, constructing, furnishing, operating and maintaining equipment, apparatus or facilities, the funding of reserves for replacements, paying the salaries and benefits of personnel (including but not limited to inspection and maintenance workers and other personnel), and for payment of other related expenses (including but not limited to employee benefit expenses and an allocation of general overhead expenses). Any services to be funded by the CFD must be in addition to those provided in the territory of the CFD before the date of creation of the CFD, and may not supplant services already available within that territory when the CFD is created. It is expected that the services will be provided by the County,either with its own employees or by contract with third parties,or any combination thereof. Administrative Expenses: The direct and indirect expenses incurred by the County in connection with the establishment and administration of the CFD (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys,any fees of the County related to the CFD or the collection of special taxes, an allocable share of the salaries of County staff directly related thereto and a proportionate amount of the County's general administrative overhead related thereto, any amounts paid by the County from its general fund with respect to the CFD or the services authorized to be financed by the CFD, and expenses incurred by the County in undertaking action to foreclose on properties for which the payment of special taxes is delinquent,and all other costs and expenses of the County in any way related to the CFD. Other: The incidental expenses that.may be financed by the CFD include: (i) all costs associated with the establishment and administration of the CFD, the determination of the amount of and collection of taxes, the payment of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the CFD, (ii) any other expenses incidental to the provision of the services eligible to be funded by the CFD,and(iii) any amounts necessary to maintain a reserve required by the County for the payment of the costs of the services. B-2 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on June 17, 2008, by the following vote: s __L AYES: SUPERVISORS GIOIA, ,! UILKEMA,BONILLA,AND PIEPHO •; NOES: NONE ABSENT; SUPERVISOR GLOVER ABSTAIN: NONE e y� Resolution No. 2008/ In the Matter of Resolution Declaring Intention to ) Establish a Community Facilities District and to ) Authorize the Levy of Special Taxes Pursuant to ) the Mello-Roos Community Facilities Act of 1982 ) — BART Transit Village, and Approving Sublease ) for Area Within the District ) WHEREAS, under the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Law"), this Board of Supervisors (the "Board") may commence proceedings for the establishment of a community facilities district; and WHEREAS, Pleasant Hill Transit Village Associates, LLC (the "Company") has submitted to the County of Contra Costa (the "County") a Petition (Including Waivers) (the "Petition") requesting that the Board conduct proceedings under the Law to create a community facilities district to be designated "County of Contra Costa Community Facilities District No. 2008-1 (BART Transit Village)" (the "CFD"); and WHEREAS, in order to form the CFD, a nongovernmental entity must have an interest in all or a portion of the property to be included in the CFD, and it has been proposed that the County sublease a portion of the property to be included in the CFD to the Company so that the CFD may be formed; and WHEREAS, under the Law, this Board is the legislative body for the proposed CFD and is empowered with the authority to establish the CFD and levy special taxes within the CFD, and this Board now desires to undertake the actions necessary to form the CFD, and to approve a sublease with the Company for a portion of the land to be included in the CFD. NOW, THEREFORE, BE IT BY THE BOARD RESOLVED as follows: Section 1. This Board proposes to begin the proceedings necessary to establish the CFD pursuant to the Law. Receipt by the County of the Petition is hereby acknowledged. Section 2. The name proposed for the CFD is County of Contra Costa Community Facilities District No. 2008-1 (BART Transit Village). Section 3. The proposed boundaries of the CFD are as shown on the map of the CFD on file with the Clerk of the Board, which boundaries are hereby preliminarily approved. The Clerk of the Board is hereby directed to record, or cause to be recorded, the map of the boundaries of the CFD in the office of the County Recorder as soon as practicable after the adoption of this Resolution. Section 4. The type of services proposed to be funded in whole or in part by the CFD and pursuant to the Law shall consist of those services described on Exhibit A hereto (the "Services"), which Exhibit is by this reference incorporated herein. Section 5. Except to the extent that funds are otherwise available to the CFD to pay for the Services and the administrative expenses of the CFD, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt property in the CFD, will be levied annually within the CFD and collected in the same manner as ordinary ad valorem property taxes or in such other manner as this Board or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the special tax among the parcels of real property within the CFD, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto which Exhibit is by this reference incorporated herein. RESOLUTION NO. 2008/ �� This Board finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the California Government Code (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the CFD. Section 6. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the CFD at a special election. The proposed voting procedure shall be by mailed or hand- delivered ballots among the landowners in the proposed CFD, with each owner having one vote for each acre or portion of an acre of land such owner owns in the CFD. Section 7. Except as may otherwise be provided by law all lands owned by any public entity, including the United States, the State of California, the County and/or any departments or political subdivisions of any thereof(including, but not limited to, the San Francisco Bay Area Rapid Transit District), shall be omitted from the levy of the special tax to be made to cover the costs and expenses of the Services and any expenses of the CFD to the extent, and only to the extent, such land is described as not subject to the special tax levy in the rate and method of apportionment of special tax set forth in Exhibit B hereto. Section 8. The Deputy Director-Redevelopment in the Department of Conservation and Development of the County or the Deputy Director-Redevelopment's designee is hereby directed to study the proposed CFD and the Services and to make, or cause to be made, and file with the Clerk of the Board a report in writing, presenting the following: (a) A brief description of the Services. (b) An estimate of the fair and reasonable cost of providing the Services, including the incidental expenses in connection therewith, including any County administration costs and all other related costs. Said report shall be made a part of the record of the public hearing provided for below. Section 9. Tuesday, July 22, 2008 at 9:30 a.m. or as soon thereafter as the matter may be heard, in the regular meeting place of this Board, Board of Supervisors Chambers, 651 Pine Street, Martinez, California, be, and the same are hereby appointed and fixed as the time and place when and where this Board, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the levy of said special tax. Section 10. The County has adopted Local Goals and Policies for Community Facilities Districts (the "Goals and Policies"). The Board hereby waives the provision of the Goals and Policies which requires submission of an application by the property owner in a proposed community facilities district, in order to expedite the formation of the CFD and otherwise in recognition that the CFD is intended to include, by future annexation, properties other than those owned by the Company. In addition, the Board hereby waives the provisions of the Goals and Policies that prohibit any escalation of the maximum special tax on residential properties, and any limitation on the maximum special tax as a percentage of the estimated value of property to be subject to the special tax, in each case to the extent inconsistent with the rate and method of apportionment of special taxes in Exhibit B hereto. Section 11. This Board hereby determines that public convenience and necessity require that territory be added to the CFD in the future, and that this Resolution shall constitute a resolution of intention to annex territory to the CFD pursuant to Sections 53339.2 and 53339.3 of the Law. The territory proposed for annexation to the CFD in the future is as indicated as such on the map of the CFD described in Section 3 above (the "Annexation Area"); provided that any specific parcel or parcels within such territory may be annexed to the CFD only with the unanimous approval of the owner or owners of each parcel or parcels to be annexed at the time that parcel or those parcels are so annexed. The types of services to be provided in the CFD and in the Annexation Area are the "Services" referenced in Section 4 above. The special taxes which will be levied in the Annexation Area shall be the same as those described in Section 5 above, and there shall be no alteration in the special tax rate levied in the CFD as a result of the proposed annexation. The hearing regarding the proposed annexation described in this Section 11 and required by Section 53339.3(f) of the Law shall be combined with the hearing described in Section 9 above, and the notice described in Section 12 below shall constitute the notice required by Section 53339.4 of the Law. RESOLUTION NO. 2008/ * Section 12. The Deputy Director-Redevelopment in the Department of Conservation and Development of the County is hereby directed to cause notice of the public hearing referred to in Sections 9 and 11 above to be given by publication one time in a newspaper published in the area of the CFD. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. The notice shall be substantially in the form of Exhibit C hereto. Section 13. The sublease (the "Sublease") relating to a portion of the real property to be included in the CFD, by and between the County and the Company, substantially in the form.attached hereto as Exhibit D is hereby approved. The Deputy Director-Redevelopment in the Department of Conservation and Development of the County, or his designee, is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Sublease in said form.. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown: ATTESTED:Ame, 1q, 2cce JOHN CULLEN, Clerk of the Board of Supervisors and County Administrator 6yV� c Deputy 03007.21:J9894 6/3/08 RESOLUTION NO. 2008/142b EXHIBIT A COUNTY OF CONTRA COSTA COMMUNITY FACILITIES DISTRICT NO. 2008-1 (BART TRANSIT VILLAGE) DESCRIPTION OF SERVICES ELIGIBLE TO BE FUNDED BY THE CFD Services: The services to be funded, in whole or in part, by the CFD include all direct and incidental costs related to the foregoing: Tier 1. (a) Maintenance of the Iron Horse Trail overcrossing over Treat Boulevard, which is located in the vicinity of the CFD; including, but not limited to, the following: • Structural steel painting on a programmed basis; • Maintenance and replacement of deck drainage and expansion joints; • Maintenance and replacement of railing and projectile fencing; • Maintenance and replacement of bridge deck and aesthetic lighting; • Landscape maintenance and replacement; • Traffic signal repair/replacement; and • Bridge deck pavement sealing and replacement. (b) Maintenance of the Walden Green linear park, which is located in the vicinity of the CFD, including, but not limited to, the following: • Landscape maintenance and replacement, including mowing, watering, weeding, and replacement; • Repair and replacement of signage; • Repair and replacement of irrigation lines and water lines; • Trail paving and sealing; • Trash pick-up; • Water and electricity requirements; and • Security, including the repair and replacement of fencing. (c) Maintenance of the Contra Costa Centre Shortcut Path for pedestrians and bicycles, from the Brancroft/David/Minert area of Walnut Creek to the Contra Costa Centre area, including to BART and to the BART Transit Village, and located in the vicinity of the CFD; including, but not limited to, the following: • Trail paving and sealing; • Repair and replacement of signage; , • Landscape maintenance and replacement • Repair and replacement of irrigation lines; • Security, including the repair and replacement of fencing and security call- boxes; • Water and electricity requirements; and • Trash pick-up. Tier 2. (a) Maintenance of street lights in the Contra Costa Centre area, within and in the vicinity of the CFD, including, but not limited, to the maintenance, operation and replacement of fixtures, lighting and appurtenances, and electricity requirements. (b) Maintenance of colored concrete areas within portions of the roadways and sidewalks in the Contra Costa Centre area, within and in the vicinity of the CFD, including, but not limited to, maintenance of surface areas, repair and replacement, trash pick-up, and related services. (c) Maintenance,of landscaping within portions of the roadways and sidewalks in the Contra Costa Centre area, within and in the vicinity of the CFD, including, but not limited to, maintenance of street 'trees, median landscaping and sidewalk landscaping. The CFD may fund any of the following related to the services described above: obtaining, constructing, furnishing, operating and maintaining equipment, apparatus or facilities, the funding of reserves for replacements, paying the salaries and benefits of personnel (including A-1 but not limited to inspection and maintenance workers and other personnel), and for payment of other related expenses (including but not limited to employee benefit expenses and an allocation of general overhead expenses). Any services to be funded-by the CFD must be in addition to those provided in the territory of the CFD before the date of creation of the CFD, and may not supplant services already available within that territory when the CFD is created. It is expected that the services will be provided by the County, either with its own employees or by contract with third parties, or any combination thereof. Administrative Expenses: The direct and indirect expenses incurred by the County in connection with the establishment and administration of the CFD (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County related to the CFD or the collection of special taxes, an allocable share of the salaries of County staff directly related thereto and a proportionate amount of the County's general administrative overhead related thereto, any amounts paid by the County from its general fund with respect to the CFD or the services authorized to be financed by the CFD, and expenses incurred by the County in undertaking action to foreclose on properties for which the payment of special taxes is delinquent, and all other costs and expenses of the County in any way related to the CFD. Other: The incidental expenses that may be financed by the CFD include: (i) all costs associated with the establishment and administration of the CFD, the determination of the amount of and collection of taxes, the payment of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the CFD, (ii) any other expenses incidental to the provision of the services eligible to be funded by the CFD, and (iii) any amounts necessary to maintain a reserve required by the County for the payment of the costs of the services. A-2 EXHIBIT B COUNTY OF CONTRA COSTA COMMUNITY FACILITIES DISTRICT NO. 2008-1 (BART TRANSIT VILLAGE) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX B-1 COUNTY OF CONTRA COSTA COMMUNITY FACILITIES DISTRICT No. 2008-1 (BART TRANSIT VILLAGE) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Special Taxes applicable to each Assessor's Parcel in C0111111LInity Facilities District No. 2008-1 (BART Transit Village) therein "CFD No. 2008-1" or "CFD-] shall be levied and collected according to the tax liability determined by the Board of Supervisors of the County of Contra Costa, acting in its capacity as the legislative body of CFD No. 2008-1, through the application of the appropriate Special Taxes, as described below. All of the property in CFD No. 2008-1, unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed to CFD No. 2008-1, unless a separate Rate and Method of Apportionment of Special Tax is adopted for the annexation area, 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 Pat-cc] Map, or if the land area is not shown oil an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, oi-other recorded County map. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), Division 2, of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the direct and indirect expenses incurred by the CFD or the .County in connection with the establishment and administration of CFD No. 2008-1 (including, but not limited to, the levy and collection of the Special Taxes) including the fees and expenses of attorneys, any fees of the County or the CFD related to CFD No. 2008-1 or the collection of Special Taxes, an allocable share of the salaries of County or CFD staff directly related thereto and a proportionate amount of the County's and the CFD's general administrative overhead related thereto, any amounts paid by the County or the CFD from their respective general funds with respect to CFD No. 2008-1 or the services authorized,to be financed by CFD No. 2008-1, expenses incurred by the County or the CFD in undertaking action to foreclose on properties for which the payment of Special Taxes is delinquent, any amounts necessary to maintain a reserve required by CFD No. 2008-1 for the payment of services, and all other costs and expenses of the County or the CFD in any way related to CFD No. 2008-1. "Administrator" means the person or firm designated by the Board of Supervisors to administer the Special Taxes according to this RMA. Cawttj,of Contra Costa CFD No. 2008-1 1 June 6,2008 "Assessor's Parcel" or"Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Authorized Tier I Services" means the public services identified as Tier 1 services that are authorized to be funded by CFD No. 2008-1, as set forth in the CFD formation documents adopted by the Board of Supervisors. "Authorized Tier 2 Services" means the public set-vices identified as Tier 2 services that are authorized to be funded by.CFD No. 2008-1, as set forth in the CFD formation documents adopted by the Board of Supervisors. "BART" means the San Francisco Bay Area Rapid Transit District. "BART Public Property" means San Francisco Bay Area Rapid Transit District-owned Parcels that are not subject to a leasehold interest of the character described by Section 53340.1(aj and are not Residential Property or Non-Residential Property. "Board of Supervisors" means the Board of Supervisors of the County.of Contra Costa, acting as the legislative body of CFD No. 2008-1. "County" means the County of Contra Costa. "Developed Property" means, in any Fiscal Year, all Parcels of Taxable Property for which a building permit for new construction was issued prior to April 30 of the preceding Fiscal Year. "Developer" means Pleasant Hill Transit Village Associates, LLC. "Fiscal Year" means the period starting on July 1 and ending on the following June 30. "Future Annexation Areas" means the areas designated for future annexation to CFD No. 2008-1 as shown in the proposed CFD No. 2008-1 boundary map in Exhibit B of this RMA. "Maximum Special Taxes" means, collectively, the Maximum Tier 1 Special Tax and Maximum Tier 2 Special Tax. "Maximum Tier 1 Special Tax" means the maximum Tier I Special Tax that can be levied on Taxable Property in any Fiscal Year determined in accordance with Section C below. "Maximum Tier 2 Special Tax" means the maximum Tier 2 Special Tax that can be levied on Taxable Property in any Fiscal Year determined in accordance with Section C below. "Non-Residential Property" means Developed Property for which a building permit was issued for a commercial, office,or industrial use. "Original CFD Formation Parcel" means that portion of Assessor's Parcel _148-221-036 as described in Exhibit A to this RMA. Counh,of Contra Costa CFD No. 1008-1 1 June 6,2008 "Public Property" means any property within the boundaries of the CFD that is owned by or irrevocably offered for dedication to the federal government, State of California, County, or other local governments or public agencies. Public Property includes BART Public Property. "Residential Property" means Developed Property for which a building permit was issued for purposes of constructing one or more residential Units. "RMA" means this Rate and Method of Apportionment of Special Tax. "Section 53340.1(a)" of the Act reads as follows: If a public agency owning property, including property held in trust for any beneficiary, which is exempt from a special tax pursuant to Section 53340 grants a leasehold or other possessory interest in the property to a nonexempt person or entity, the special tax shall, notwithstanding Section 53340, be levied on the leasehold or possessory interest and shall be payable by the owner of the leasehold or possessory interest. "Special Taxes" means, collectively, the Tier I Special Tax and the Tier 2 Special Tax. "Square Footage" or "Sq. Ft." means the floor area square footage reflected on the original construction building permit issued for construction of Non-Residential Property, plus any Square Footage subsequently added to a building of Non-Residential Property after issuance of a building permit for expansion or renovation of such building. "Taxable Property" means any Assessor's Parcels within the boundaries of CFD No. 2008-1 that are subject to a leasehold interest of the character described by Section 53340.1(a) and that are not exempt from the Special Tax pursuant to law or Section E below. Taxable Property includes any Parcel owned by BART for which (i) there is a leasehold interest of a character described by Section 53340.](a), or (ii) that is Residential Property or Non-Residential Property. Taxable Property does not include BART Public Property. "Tier 1 Special Tax" means a special tax levied in any Fiscal Year to.pay the Tier 1 Special Tax Requirement. "Tier 1 Special Tax Requirement" means the amount necessary in any Fiscal Year to (i) pay for Authorized Tier I Services, (ii) pay for a portion.of the Administrative Expenses for the Fiscal Year, (iii) cure any delinquencies in the payment of Tier I Special Taxes levied in prior Fiscal Years or (based on delinquencies in the payment of Tier 1 Special Taxes which have already taken place) are expected to occur in the current Fiscal Year, and (iv) to create or replenish reserve funds for future services or replacements, provided, however, that the Tier I Special Tax Requirement shall not exceed $50,000 in any Fiscal Year. "Tier 2 Special Tax" means a special tax levied in any Fiscal Year to pay the Tier 2 Special Tax Requirement. Count,of Contra Costa CFD No.2008-1 3 June 6,2008 "Tier 2 Special Tax Requirement" means the amount necessary in any Fiscal Year to (i) pay for Authorized Tier 2 Services, (ii) pay for a portion of the Administrative Expenses for the Fiscal Year, (iii) cure any delinquencies in the payment of Tier 2 Special Taxes levied in prior Fiscal Years or (based on delinquencies in the payment of Tier 2 Special Taxes which have already taken place) are expected to occur in the current Fiscal Year, and (iv) to create or replenish reserve funds for future services or replacements, provided, however, that the Tier 2 Special Tax Requirement shall not exceed $68,000 in Fiscal Year 2008-09 dollars, which amount shall increase cumulatively on July 1, 2009, and each July 1 thereafter, by a percentage equal to the increase, if any, in the prior calendar year's change in the Consumer Price index for All Urban Consumers for the Bay Area: San Francisco-Oakland-San Jose. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. "Unit" means an individual single-family detached home, townhome, condominium, apartment, or other residential dwelling unit, including each separate living area within a half-plex, duplex, triplex, fourplex, other residential structure, or mobile home park. B. DATA COLLECTION FOR ANNUAL TAX LEVY Each Fiscal Year, the Administrator shall identify the current Assessor's Parcel numbers for all Parcels of Developed Property and Undeveloped Property within CFD No. 2008-1. Tile Administrator shall also determine: (i) whether each Assessor's Parcel of Developed Property is Residential Property or Non-Residential Property, (ii) the number of Units on each Parcel of Residential Property, (iii) the total Square Footage on each Parcel of Non-Residential Property, (iv) the Acreage of each Parcel of Undeveloped Property, and (v) the Tier 1 Special Tax Requirement and the Tier 2 Special Tax Requirement. In any Fiscal Year, if it is determined that (i) a. parcel map for a portion of property in CFD No. 2008-1 was recorded after January I of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly-created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new parcels created by the parcel map, and (iii) one or more of the newly-created parcels meets the definition of Developed Property, the Administrator shall calculate the Special Tax for the property affected by recordation of the parcel map by determining the Special Tax that applies separately to each newly-created parcel, then applying the suin of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map. C. MAXIMUM SPECIAL TAXES 1. Maximum Special Taxes The Maximum Special Taxes for Fiscal Year 2008-09 for a Parcel of Taxable Property shall be determined by reference to the table below: County of Contra Costa CFD No. 2008-1 4 June 6,2008 Table 1 Maximum Special Taxes Fiscal Year 2008-09 Maximum Maximum Land Use Tier I Special Tax Tier 2 Special Tax Residential Property $105.00 per Unit $62.00 per Unit Non-Residential Property $0.16 per Building Sq. Ft. $0.11 per Building Sq. Ft. Undeveloped Property $12,700 per Acre $9,900 per Acre 2. Maximum Special Tax Increases On July 1, 2009, and each July I thereafter, the Maximum Tier 2 Special Tax rates shall be increased by a percentage equal to the increase, if any, in the prior calendar year's change in the Consumer Price Index for All Urban Consumers for the Bay Area: San Francisco-Oakland-San .lose. The Maximum Tier 1 Special Tax rates shall not be increased in future years. 3. Maximum Special Tax for a Parcel with Multiple Land Uses In some instances an Assessor's Parcel of Developed Property may contain more than one land use. The total Maximum Tier 1 Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Tier 1 Special Tax for all Units of Residential Property and Sq. Ft. of Non-Residential Property located on that Assessor's Parcel. Similarly, the Maximum Tier 2 Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Tier 2 Special Tax for all Units of Residential Property and Sq. Ft. of Non- Residential, Property located on that Assessor's Parcel. The number of Units shall be determined by referencing the development plan for the property or other County records. D. METHOD OF LEVY AND COLLECTION OF SPECIAL TAXES The Special Taxes shall be levied and collected according to the methodology outlined below. 1. Tier 1 Special Tax Pursuant to an Agency Assistance Agreement between the Contra Costa County Redevelopment Agency and the Developer, the Tier 1 Special Tax will not be levied until residential and non-residential construction, as contemplated by the Agency Assistance Agreement, is completed and certified by the County for occupancy., Residential and County of Contra Costa CFD No. 2008-1 S June 6,2008 o non-residential construction is expected to be completed in July 2010 and therefore, Fiscal Year 2010-11 is expected to be the first year that the Tier 1 Special Tax will be levied by CFD No. 2008-1. The Tier I Special Tax shall be levied as follows until the amount of the levy equals the Tier 1 Special Tax Requirement: Step 1: The Tier I Special Tax shall be levied proportionately on each Parcel of Developed Property up to 100% of the Maximum Tier I Special Tax for Developed Propetly. Step 2: If additional revenue is needed after Step 1, the Tier i Special Tax shall be levied proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Tier i Special Tax for Undeveloped Property. 2. Tier 2 Special Tax The Tier 2 Special Tax shall be levied, commencing in Fiscal Year 2009-10, as follows until the amount of the levy equals the Tier 2 Special Tax Requirement: Step 1: The Tier 2 Special Tax shall be levied proportionately on each Parcel of Developed Property up to 100% of the Maximum Tier 2 Special Tax for Developed Property. Step 2: If additional revenue is needed after Step 1, the Tier 2 Special Tax shall be levied proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Tier 2 Special Tax for Undeveloped Property. The Special Taxes for CFD No. 2008-1 shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the County may bill directly and may collect at a different time or in a different manner if necessary to meet its financial obligations. E. EXEMPTIONS Notwithstanding any other provision of this RMA, in no event shall Special Taxes be levied on Public Property, BART Public Property, or property owned by a homeowners or property owners association.. In addition, no Special Taxes shall be levied on the Original CFD Formation Parcel in any Fiscal Year in which there is no leasehold interest of the character described by Section 53340,1(a), unless it is Residential Property or Non-Residential Property. F. INTERPRETATION OF SPECIAL TAX FORMULA The County reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning Special Taxes or the County oJContra Costa CFD No.2008-1 6 Ju rte 6, 1008 definition of Taxable Property. In addition, the interpretation and application of any section of this document shall be left to the County's discretion. Interpretations may be made by the County by resolution of the Board of Supervisors for purposes of clarifying any vagueness or ambiguity in this RMA. G. APPEAL OF SPECIAL TAX LEVY Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the Administrator not later than one calendar year after having paid the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and decide the appeal. If the property.owner disagrees with the Administrator's decision relative to the appeal, the owner may then file a written appeal with the Board of Supervisors whose subsequent decision shall be binding. If the decision of the Administrator (if the appeal is not filed with the Board of Supervisors) or the Board of Supervisors (if the appeal is filed with the Board of Supervisors) requires the Special Tax to be modified or changed in favor of the property owner, no cash refund shall be made for prior years' Special Tax levies, but an adjustment shall be made to the next Special Tax levy(ies). This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to any legal action by such owner. Count),of Contra Cosa CFD No. 2008-1 7 June 6.2008 EXHIBIT A ORIGINAL CFD FORMATION PARCEL Exhibit "A" CFD 2008-1 De Annexation Parcel Subdivision SD05-8950 BART A.P.N.: 148-221-036(portion). Project No.:SD 05-8950 Legal Description A portion of that real property described in that certain document entitled "Amendment to the Amended and Restated Acquisition and Development Agreement", recorded August 9, 2000 as Recorder's Series Number 2000-0169689 of Oficial Records of Contra Costa Counol, situate in all unincorporated portion of Contra Costa County, State of California, being a portion of Rancho Las Juntas, described as follows: Beginning, at the southwesterly corner of the parcel described in that certain Grant Deed from Walnut View Properties to the San Francisco Bay Area Rapid Transit District, recorded October 3, 1984 in Book 12002 at Page 266 of Official Records of Contra Costa County; Thence, South 89°42'36" Nest, 59.1 7feet to a point on the southeasterly line or proposed Lot 5 as said lot is shown ori the proposed Final Map of Subdivision 8950; Thence along the last said southeasterly line, North 45°53'39"East, 82.00feet to a point on the westerly line of the said parcel to the San Francisco Bay Area Rapid Transit District (12002 D.R. 266); Thence along the last said westerly line, South 00°17'24"East, 56.77 feet to the Point of Beginning. Containing 1,680 square feet more or less or 0.039 acres more or less. End of Description Assessor's Parcel Numbers: 148-221-036 (portion). The Final Map for Subdivision 8950 is currently in process for filing. This description is intended for assessment purposes only and is not a legal description as defined in the Subdivision Map Act and may not be used as the basis for the sale or lease of the land hereon described. This description was made by me or under my direction in conformance with the Land Suil)eyors Act. xL LA A qD David L. Adams L.S. No. 7587 a pQ � Fo License Expires: 12/31109 a. No. 7587 m Date: S' Page I of 1. fir£OF CA11��¢ CFD2008-1 demmecationpH EXHIBIT B PROPOSED BOUNDARY MAP .. __..... ..__....... _.-. ... _ _........... ....._ tt H i law d} n Q fL�o° o x �m4 O V s J owa o UE 0 2ZIPA QQO 'k 1 cc V� Jni d 1W O aW {b C?N I I j i HAIUG -------- — - �QQ \� \ Q k �I -- \\\. \\ - - —_— a - - j _ I o ul _ — j _ \ > Q r --- - _� tik W r — - - �_ L _ - _ a _ ou Vo it � I oras I I 9j 3wN W& SOT73M -10INdYNS EXHIBIT C COUNTY OF CONTRA COSTA COMMUNITY FACILITIES DISTRICT NO. 2008-1 (BART TRANSIT VILLAGE) NOTICE OF PUBLIC HEARING Notice is hereby given that on June 17, 2008, the Board of Supervisors of the County of Contra Costa adopted a Resolution entitled "Resolution Declaring Intention To Establish A Community Facilities District And To Authorize The Levy Of Special Taxes Pursuant To The Mello-Roos Community Facilities Act of 1982 — BART Transit Village, and Approving Sublease for Area Within the District". Pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Law") the Board of Supervisors of the County of Contra Costa hereby gives notice as follows: A. The text of said Resolution of Intention is as follows: WHEREAS, under the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Law"), this Board of Supervisors (the "Board") may commence proceedings for the establishment of a community facilities district; and WHEREAS, Pleasant Hill Transit Village Associates, LLC (the "Company") has submitted to the County of Contra Costa (the "County") a Petition (including Waivers) (the "Petition") requesting that the Board conduct proceedings under the Law to create a community facilities district to be designated "County of Contra Costa Community Facilities District No. 2008-1 (BART Transit Village)" (the "CFD"); and WHEREAS, in order to form the CFD, a nongovernmental entity must have an interest in all or a portion of the property to be included in the CFD, and it has been proposed that the County sublease a portion of the property to be included in the CFD to the Company so that the CFD may be formed; and WHEREAS, under the Law, this Board is the legislative body for the proposed CFD and is empowered with the authority to establish the CFD and levy special taxes within the CFD, and this Board now desires to undertake the actions necessary to form the CFD, and to approve a sublease with the Company for a portion of the land to be included in the CFD. NOW, THEREFORE, BE IT BY THE BOARD RESOLVED as follows: Section 1. This Board proposes to begin the proceedings necessary to establish the CFD pursuant to the Law. Receipt by the County of the Petition is hereby acknowledged. Section 2. The name proposed for the CFD is County of Contra Costa Community Facilities District No. 2008-1 (BART Transit Village). Section 3. The proposed boundaries of the CFD are as shown on the map of the CFD on file with the Clerk of the Board, which boundaries are hereby preliminarily approved. The Clerk of the Board is hereby directed to record, or cause to be recorded, the map of the boundaries of the CFD in the office of the County Recorder as soon as practicable after the adoption of this Resolution. Section 4. The type of services proposed to be funded in whole or in part by the CFD and pursuant to the Law shall consist of those services described on Exhibit A hereto (the "Services"), which Exhibit is by this reference incorporated herein. Section 5. Except to the extent that funds are otherwise available to the CFD to pay for the Services and the administrative expenses of the CFD, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt property in the CFD, will be levied annually within the CFD and collected in the same manner as ordinary ad valorem property taxes or in such other manner as this Board or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the special tax among the parcels of real property within the CFD, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto which Exhibit is by this reference incorporated herein. C-1 This Board finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the California Government Code (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the CFD. Section 6. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the CFD at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballots among the landowners in the proposed CFD, with each owner having one vote for each acre or portion of an acre of land such owner owns in the CFD. Section 7. Except as may otherwise be provided by law all lands owned by any public entity, including the United States, the State of California, the County and/or any departments or political subdivisions of any thereof(including, but not limited to, the San Francisco Bay Area Rapid Transit District), shall be omitted from the levy of the special tax to be made to cover the costs and expenses of the Services and any expenses of the CFD to the extent, and only to the extent, such land is described as not subject to the special tax levy in the rate and method of apportionment of special tax set forth in Exhibit B hereto. Section 8. The Deputy Director-Redevelopment in the Department of Conservation and Development of the County or the Deputy Director-Redevelopment's designee is hereby directed to study the proposed CFD and the Services and to make, or cause to be made, and file with the Clerk of the Board a report in writing, presenting the following: (a) A brief description of the Services. (b) An estimate of the fair and reasonable cost of providing the Services, including the incidental expenses in connection therewith, including any County administration costs and all other related costs. Said report shall be made a part of the record of the public hearing provided for below. Section 9. Tuesday, July 22, 2008 at 9:30 a.m. or as soon thereafter as the matter may be heard, in the regular meeting place of this Board, Board of Supervisors Chambers, 651 Pine Street, Martinez, California, be, and the same are hereby appointed and fixed as the time and place when and where this Board, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the levy of said special tax. Section 10. The County has adopted Local Goals and Policies for Community Facilities Districts (the "Goals and Policies"). The Board hereby waives the provision of the Goals and Policies which requires submission of an application by the property owner in a proposed community facilities district, in order to expedite the formation of the CFD and otherwise in recognition that the CFD is intended to include, by future annexation, properties other than those owned by the Company. In addition, the Board hereby waives the provisions of the Goals and Policies that prohibit any escalation of the maximum special tax on residential properties, and any limitation on the maximum special tax as a percentage of the estimated value of property to be subject to the special tax, in each case to the extent inconsistent with the rate and method of apportionment of special taxes in Exhibit B hereto. Section 11. This Board hereby determines that public convenience and necessity require that territory be added to the CFD in the future, and that this Resolution shall constitute a resolution of intention to annex territory to the CFD pursuant to Sections 53339.2 and 53339.3 of the Law. The territory proposed for annexation to the CFD in the future is as indicated as such on the map of the CFD described in Section 3 above (the "Annexation Area"); provided that any specific parcel or parcels within such territory may be annexed to the CFD only with the unanimous approval of the owner or owners of each parcel or parcels to be annexed at the time that parcel or those parcels are so annexed. The types of services to be provided in the CFD and in the Annexation Area are the "Services" referenced in Section 4 above. The special taxes which will be levied in the Annexation Area shall be the same as those described in Section 5 above, and there shall be no alteration in the special tax rate levied in the CFD as a result of the proposed annexation. The hearing regarding the proposed annexation described in this Section 11 and required by Section 53339.3(f) of the Law shall be combined with the hearing described in Section 9 above, and the notice described in Section 12 below shall constitute the notice required by Section 53339.4 of the Law. C-2 Section 12. The Deputy Director-Redevelopment in the Department of Conservation and Development of the County is hereby directed to cause notice of the public hearing referred to in Sections 9 and 11 above to be given by publication one time in a newspaper published in the area of the CFD. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. The notice shall be substantially in the form of Exhibit C hereto. Section 13. The sublease (the "Sublease") relating to a portion of the real property to be included in the CFD, by and between the County and the Company, substantially in the form attached hereto as Exhibit D is hereby approved. The Deputy Director- Redevelopment in the Department of Conservation and Development of the County, or his designee, is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Sublease in said form. B. The exhibits to the Resolution which describe the services eligible to be funded by the CFD and the rate and method of apportionment of the special taxes for the CFD are on file in the office of the Clerk of the Board of Supervisors of the County. C. The time and place established under said Resolution for the public hearing required under the Act related to the formation of, and future annexation of territory to, the CFD are Tuesday, July 22, 2008, at the hour of 9:30 a.m. or as soon thereafter as the matter may be heard, in the regular meeting place of the Board of Supervisors of the County of Contra Costa, Board of Supervisors Chambers, 651 Pine Street, Martinez, California. D. At said hearing, the testimony of all interested persons or taxpayers for or against the establishment of the CFD, the extent of the CFD or the furnishing of the specified types of services will be heard. Any person interested may file a protest in writing with the Clerk of the Board of Supervisors of the County. If fifty percent or more of the registered voters, or six registered voters, whichever is more, residing in the territory proposed to be included in the CFD, or the owners of one-half or more of the area of land in the territory proposed to be included in the CFD and not exempt from the special tax file written protests against the establishment of the CFD and the protests are not withdrawn to reduce the value of the protests to less than a majority, the Board of Supervisors shall take no further action to establish the CFD or levy the special taxes for a period of one year from the date of the decision of the Board of Supervisors, and if the majority protests of the registered voters or the landowners are only against the furnishing of a type or types of services within the CFD, or against levying a specified special tax, those types of services or the specified special tax will be eliminated from the proceedings to form the CFD. In addition to the foregoing, at said hearing, the testimony of all interested persons for or against the future annexation of territory to the CFD (as described in Section 11 of the Resolution) or the levying of special taxes within the territory proposed to be annexed to the CFD in the future, will be heard. E. The proposed voting procedure shall be by special mail or hand-delivered ballot to the owners of real property within the territory proposed to be included in the CFD. Dated: 2008 EXHIBIT D FORM OF FOX CREEK PARK SUB-LEASE C-3