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CITY COUNCIL AGENDA ITEM NO. 16

Meeting Date: September 14, 2004

Subject/Title: Approve a Resolution declaring the intent to establish the City of Brentwood Community Facilities District No. 4 to levy a special tax therein to finance certain public facilities and services, approve a Resolution declaring the necessity to incur bonded indebtedness, and set a date of November 9, 2004, at 7:00 p.m. for the Public Hearing.

Prepared by: Engineering: D. Galey

Submitted by: Engineering: B. Grewal

RECOMMENDATION
Approve a resolution declaring the intent to establish the City of Brentwood Community Facilities District No. 4 (CFD No. 4) and to levy a special tax therein and set a date of November 9, 2004 at 7:00 p.m. for the public hearing.

Approve a resolution declaring the necessity to incur bonded indebtedness in CFD No. 4.

PREVIOUS ACTION
On September 11, 2001, the City of Brentwood entered into a Joint Use Services Agreement with the Brentwood Union School District. In addition, the City of Brentwood entered into a Joint Use Services Agreement with Liberty Union School District on November 26, 2002.

On February 12, 2002, by City Council Resolution No. 2469, the City of Brentwood entered into a Services Contract with East Diablo Fire Protection District (EDFPD) to increase Firefighter Crews.

On March 12, 2002, by City Council Resolution No. 2489, City Council adopted Local Goals, Policies and Appraisal Standards Concerning the Use of the Community Facilities Act of 1982 (Act). These Local Goals, Policies and Appraisal Standards were required to be adopted by the City before the City could form Community Facilities Districts utilizing the Act.

On May 14, 2002, by City Council Resolution No. 2544, City Council adopted a resolution Establishing CFD No. 2. On December 10, 2002, by City Council Resolution No. 2767, City Council annexed additional territory into CFD No. 2.

On June 24, 2003, by City Council Resolution No. 2907, City Council adopted a Resolution Establishing CFD No. 3 and on January 13, 2004, by City Council Resolution No. 2004-17, the City Council annexed additional territory into CFD No. 3.

BACKGROUND
Previously, CFD Nos. 2 & 3 were established to levy an annual special tax on all new development within the City to finance an increased number of fire suppression, emergency medical services (EMS), police and public safety personnel, for the maintenance and operation of flood and storm drainage services, for the purchasing and maintenance of open space and for joint use school facilities and services (which the City has with the two School Districts) located within the City of Brentwood. The City currently requires all parcels, as a condition of development, to participate within the most current Community Facilities District, and subsequently pay the annual special tax.

This new community facilities district, CFD No. 4, will require all new development to finance the same services listed in CFD Nos. 2 & 3, but at an increased service level; with the addition of library, roadway rehabilitation and utility undergrounding facilities.

If CFD No. 4 is approved, the City will require all new development to annex into this current CFD, rather than one of the previous two districts. The maximum special tax rate for CFD No. 4 will be set at $850.00 per single family home with a maximum increase for residential units of 2% for facilities and 5% for services provided by the district. Parcels are eligible for the special tax if they have been issued a building permit prior to January 1st of the ensuing fiscal year. The maximum annual special tax rates for CFD No. 4 will be as follows:

1 If any Taxable Parcel within the boundaries of the District has a Floor Area Ratio greater than one (1.00) the Special Tax Rates shown in the table above will be multiplied by the Taxable Parcel’s Floor Area Ratio. For example, if a commercial parcel has a Floor Area Ratio of 1.50 the FY 2004-05 Special Tax Rate would be $7,650.00 per acre ($5,100.00/acre x 1.50).

2 For FY 2004-05 and on, the Facilities Special Tax Rate for Single Family, Condominium, Multi-Family, and Rural parcels shown in the table above will be increased two (2.00%) percent compounded annually, per Government Code § 53321.

3 For FY 2004-05 and on, the Services Special Tax Rate for Single Family, Condominium, Multi-Family, and Rural parcels shown in the table above will be increased by the Consumer Price Index for San Francisco Bay Area Urban Wage Earners (from June 2004) with a minimum of two (2.00%) percent and a maximum of five (5.00%) percent compounded annually for any given year.

4 For Special Tax calculation purposes, the maximum acreage any Taxable Parcel will have is five (5.00) acres. Taxable Parcels greater than five (5.00) acres will default to five (5.00) acres. For FY2004-05 and on, the Facilities and Services Special Tax Rate for Commercial, Industrial, and Institutional parcels shown in the table above will be increased by the Consumer Price Index for San Francisco Bay Area Urban Wage Earners (from June 2004) with a minimum of two (2.00%) percent compounded annually.

The proposed boundaries of CFD No. 4 are shown in the Attachments. The Community Facilities District is the preferred financing mechanism because it offers greater flexibility regarding police, fire suppression, emergency medical and public safety services, open space services, flood control and storm drainage facilities and services, joint use school facilities and allows the financing of library facilities, roadway rehabilitation and undergrounding of utilities that benefit the general public.

Special taxes must be approved by a two-thirds majority of the qualified voters returning ballots. Qualified voters are determined based on one of the two following cases:

1. If twelve or more registered voters reside within the boundaries of the proposed CFD, the qualified voters are those registered voters residing within the proposed boundaries of the CFD, and every registered voter receives one vote.
2. If fewer than twelve registered voters reside within the proposed boundaries of the CFD, qualified voters are those owners of property within the proposed boundaries of the CFD. Every property owner receives one vote per acre, or portion thereof, owned within the boundaries of the CFD.

There are less than twelve registered voters residing within the proposed CFD No. 4, therefore the election of qualified voters will be conducted by a property owner vote based upon their proportionate parcel acreage within the CFD boundaries.

Even though the requirement to form CFD No. 4 is to obtain two-thirds majority approval of the qualified voters returning ballots, the City must receive a 100% return in favor of forming the CFD. This 100% return in favor will allow the City to annex future properties into the CFD without having to re-ballot property owners already within the CFD.

Each of the property owners in CFD No. 4 will be sent a “Wavier and Consent” which will allow them to waive the minimum time requirements (180 days) relative to the formation of CFD No. 4. The property owners will then receive a special election ballot for the proposed CFD. No. 4. Prior to the public hearing on November 9, 2004 all ballots must be cast.

FISCAL IMPACT
CFD No. 4 would provide a steady increase in revenue to a projected $14,600,000.00 in Fiscal Year 2021-22. The proposed increase in revenue is due to anticipated new development within the City. After the initial formation of CFD No. 4 it will be required as a Condition of Approval that all new development within the City of Brentwood, both residential and non-residential annex into CFD No. 4.

Attachments:
Attachment 1 - Proposed Boundary Map for CFD No. 4
Attachment 2 – List of Property Owners
Resolution No. ____ Declaring Intention to Establish CFD No. 4
Exhibit A – Authorized Facilities
Exhibit B – Authorized Services
Exhibit C – Incidental Expenses and Bond Issuance Costs
Exhibit D – Rate and Method of Apportionment of Special Taxes
Exhibit E - Notice of Public Hearing
Resolution No. ____ Declaring the Necessity for Incurring a Bonded Indebtedness

RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 4 AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE CERTAIN PUBLIC FACILITIES AND SERVICES IN AND FOR SUCH COMMUNITY FACILITIES DISTRICT.

WHEREAS, in accordance with the provisions of Section 53312.7 and 53345.8 of the California Government Code, the City of Brentwood (the "City") previously adopted the Local Goals and Policies and Appraisal Standards (the “City Goals and Policies”); and

WHEREAS, it is proposed to establish a community facilities district within the City under the terms of the Community Facilities Act of 1982, Chapter 2.5 of Division 2 of Title 5 of the California Government Code, commencing with Section 53311; and
WHEREAS, the name of the proposed community facilities district shall be "Community Facilities District No. 4, City of Brentwood, County of Contra Costa, State of California," ("CFD No. 4"); and
WHEREAS, the proposed boundaries of CFD No. 4 are shown on the boundary map entitled "Proposed Boundary Map, Community Facilities District No. 4, City of Brentwood, County of Contra Costa, State of California" on file with the Clerk; and
WHEREAS, the types of public facilities and services proposed to be provided under CFD No. 4 are set forth on Exhibits A and B, respectively, attached to this resolution, and the City finds that these facilities and services are necessitated by new development occurring and anticipated within CFD No. 4; and
WHEREAS, the types of incidental expenses proposed to be incurred are set forth on Exhibit C attached to this resolution.
NOW, THEREFORE, BE IT RESOLVED by the CITY COUNCIL of the CITY OF BRENTWOOD, as follows:
Section 1. The City Council finds and determines that the foregoing recitals are true and correct.
Section 2. The City Council hereby finds and determines that CFD No. 4 is in compliance with the City Goals and Policies, and to the extent of any non-compliance with the City Goals and Policies, such compliance is hereby waived by the City.
Section 3. The City Council hereby approves the map and adopts the boundaries shown on the map as describing the extent of the territory included in a proposed community facilities district to be known as Community Facilities District No. 4, City of Brentwood, County of Contra Costa, State of California. The City finds that the map is in the form and contains the matters prescribed by Section 3110 of the California Streets and Highways Code and directs the Clerk to certify the adoption of this resolution on the face of the map, and to file a copy of the map with the County Recorder for placement in the Book of Maps of Assessment and Community Facilities Districts no later than fifteen (15) days after the adoption of this resolution.
Section 4. Except where funds are otherwise available, a special tax sufficient to pay for all facilities and services for CFD No. 4 will be annually levied within CFD No. 4. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property within CFD No. 4, and this lien shall continue in force and effect until (as to the public facilities portion of the special tax) the special tax obligation (or any portion thereof) is paid or prepaid and permanently satisfied and the public facilities portion of the special tax lien is cancelled in accordance with law, or until (as to the services portion of the special tax) collection of the special tax by the City ceases. The rate and method of apportionment of the special tax is set forth in Exhibit D attached to this resolution. The special tax with respect to the construction of facilities shall not be levied after Fiscal Year 2099-2100. The special tax with respect to the authorized services shall not be levied after Fiscal Year 2104-05. In the case of any special tax to pay for public facilities and to be levied against any parcel used for private residential purposes, under no circumstances will the special tax levied against any parcel be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within CFD No. 4 by more than 10 percent.

Section 5. Advances of funds or contributions of work in kind from any lawful source, specifically including owners of property within CFD No. 4, may be reimbursed from bond proceeds or from special tax revenue or both to the extent of the lesser of the value or cost of the contribution, but any agreement to do so shall not constitute a debt or liability of the City.
Section 6. The City Council hereby sets November 9, 2004 at 7:00 p.m., or as soon thereafter as the City may reach the matter, at the Council Chambers at 734 Third Street, Brentwood, California 94513, as the time and place for the public hearing on the establishment of CFD No. 4. At the hearing, testimony concerning the district, the extent of the district or the furnishing of the particular types of public facilities and services will be heard and protests will be considered from registered voters residing within CFD No. 4 and persons owning real property within CFD No. 4. Written protests by a majority of the registered voters (if at least six such voters protest), or by the owners of a majority of the land which would be subject to special taxation within the proposed CFD No. 4 will require the suspension of proceedings for at least one year. Written protests must be filed with the Clerk at or before the time fixed for the hearing. If such protests are directed only against certain elements of the proposed improvements or proposed special tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings.
Section 7. Any bonds issued in these proceedings shall be callable in accordance with the provisions of the Act and as more specifically to be set forth in any Resolution Authorizing Issuance of Bonds.
Section 8. It is anticipated that the special tax will be billed as a separate line item on the regular property tax bill. However, the City reserves the right, under Section 53340, to utilize any method of collecting the special tax which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.
Section 9. The Director of Finance and Information Systems is directed to study the proposed district and prepare for filing at the public hearing the report required by Section 53321.5 of the Act. The Director of Finance and Information Systems may delegate to consultants the duty to perform the study and report preparation.
Section 10. If an election is held in these proceedings, it is the intention of the City Council that the electors will be the owners of property within CFD No. 4 pursuant to Section 53326 of the Act.
Section 11. The City Council also intends to establish the annual appropriations limit of CFD No. 4 at $5,000,000 for the 2004-2005 fiscal year.
Section 12. The Clerk is hereby directed to have the Notice of Public Hearing in the form attached to this resolution as Exhibit E published once in the Brentwood Press, a newspaper of general circulation in the vicinity of CFD No. 4, no later than ten (10) days prior to the public hearing.
Section 13. This resolution shall take effect from and after its adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 14th day of September 2004 by the following vote:

EXHIBIT A

AUTHORIZED FACILITIES

FACILITIES

I. Flood and Storm Drainage Facilities.

a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of flood and storm drainage facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc.

b) Construction and/or acquisition of flood and storm drainage facilities, including design, construction, administration etc. and all other miscellaneous costs needed to comply with local and state regulations.

II. Joint Use School Facilities.

a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of school site joint use facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc.

c) Construction and/or acquisition of school site joint use facilities, including equipment, furnishings and all incidental costs needed to conduct joint use programs and services throughout the City.

III. Roadway Rehabilitation Facilities.

a) Acquisition of lands, easements and rights-of-way needed for the purposes of roadway rehabilitation, including all necessary incidental costs including title reports, appraisals, etc.

b) Rehabilitation of roadways, including but not limited to pavement, curb, gutter, sidewalk, pavement sealing, etc. to repair, improve and extend the life of the roadway.

IV. Library Facilities.

a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of library facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc.

b) Construction and/or acquisition of library facilities, including equipment, furnishings and all incidental costs needed. This may include the expansion or rehabilitation of existing libraries.

V. Undergrounding of Utility Transmission and Distribution Facilities

a) Acquisition of lands, easements and rights-of-way needed for the undergrounding of utility transmission and distribution facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc.

b) Undergrounding of utility transmission and distribution facilities, including construction, equipment, furnishings and all incidental costs related thereto.

EXHIBIT B

AUTHORIZED SERVICES

SERVICES

I. Fire Suppression and Emergency Medical Services.

a) Fire fighting and emergency medical service personnel salaries, benefits and other associated operations and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.

II. Police Protection and Public Safety Services.

a) Police and public safety personnel salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.

III. Open Space Services.

Maintenance and operation of open space and natural wild lands owned or otherwise controlled by the City of Brentwood including State Park Lands adjacent to the City of Brentwood subject to Joint Use or a Memorandum of Understanding between the City and the State of California. Maintenance and operation may include, but is not limited to:

a) Maintenance workers, volunteers and patrol guard salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.

IV. Flood and Storm Drainage Services.

Maintenance and operation of flood and storm drainage improvements owned or otherwise controlled by the City of Brentwood. Maintenance and operation may include but is not limited to:

a) Maintenance workers salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.

V. Joint Use School Site Services.

a) Maintenance of joint use school park facilities between the City and the School Districts within the City of Brentwood which includes, but is not limited to, elementary and secondary school park sites and structures servicing the residents of the City of Brentwood. Staff and maintenance workers salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel are also included. Such services shall only be those necessary for the general public use of the joint use school park facilities and shall not include any costs associated with school use or maintenance.

EXHIBIT C

INCIDENTAL EXPENSES AND BOND ISSUANCE COSTS

It is anticipated that the following incidental expenses may be incurred for CFD No. 4:

Engineering services
Special tax consultant services
City review and administration
Bond counsel services
Bond counsel expenses
Disclosure counsel services
Disclosure counsel expenses
Independent financial advisor services
Appraiser services
Initial bond transfer agent, fiscal agent, registrar and paying agent fees
Rebate calculation service set up charge
Bond printing
Official Statement printing and mailing costs
Publishing, mailing and posting of notices
Underwriter's discount
Bond reserve fund
Capitalized interest
Bond syndication costs
Governmental notification and filing costs
Credit enhancement costs
Real estate acquisition costs
Rating agency fees
Charges and fees of City other than those waived

Certain annual costs may be included in each annual special tax levy. These include:

Annual bond transfer agent, fiscal agent, registrar and paying agent fees
Annual rebate calculation costs
Special tax consultant costs
Other necessary consultant costs
Costs of posting and collecting the special taxes
Personnel and Administrative costs of the City
Arbitrage rebate
Continuing disclosure
EXHIBIT D

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES

A Special Tax shall be levied on all Taxable Parcels within Community Facilities District No. 4 (the “District”), and collected according to the Rate and Method of Apportionment of Special Taxes described herein.

All Special Tax payments shall be collected by the Contra Costa County Tax Collector’s Office through a special line item on the property tax billings or through the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.

DEFINITIONS

Annual Administrative Costs: Means the actual or reasonably estimated costs directly related to the administration of the District, as determined by the Finance Director of the City or its designee, which shall include but are not limited to, the costs incurred for forming the District, calculating the Special Taxes, preparing the annual Special Tax collection schedules, County collection fees; etc.

Assessor Parcel: Means a parcel of land which has an assessor parcel number assigned to it by the Contra Costa County Assessor’s office.

Building Permit: Means a Building Permit issued by the City and having an improvement valuation over $50,000. Building Permits for the construction of ancillary structures such as fences, swimming pools, retaining walls, etc are excluded.

City: Means the City of Brentwood.

District: Means Community Facilities District No. 4.

Exempt Parcels: Means all parcels of land owned by the Federal, State, City or other Local Government or Special District.

Facilities: Means the acquisition of the following Facilities:

1. Flood and Storm Drainage Facilities

a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of flood and storm drainage facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc.

b) Construction and/or acquisition of flood and storm drainage facilities, including design, construction, administration etc. and all other miscellaneous costs needed to comply with local and state regulations.

2. Joint Use School Facilities.

a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of school site joint use facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc.

b) Construction and/or acquisition of school site joint use facilities, including equipment, furnishings and all incidental costs needed to conduct joint use programs and services throughout the City.

3. Roadway Rehabilitation Facilities.

a) Acquisition of lands, easements, and rights-of-way needed for the purposes of roadway rehabilitation, including all necessary incidental costs including title reports, appraisals, etc.

b) Rehabilitation of roadways, including but not limited to, pavement, curb, gutter, sidewalk, pavement sealing, etc., to repair, improve and extend the life of the roadway.

4. Library Facilities.

a) Acquisition of lands, easements and rights-of-way needed for the construction and/or acquisition of library facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc.

b) Construction and/or acquisition of library facilities, including equipment, furnishings and all incidental costs needed. This may include the expansion or rehabilitation of existing libraries.

5. Undergrounding of Utility Transmission and Distribution Facilities

a) Acquisition of lands, easements and rights-of-way needed for the undergrounding of utility transmission and distribution facilities, including all necessary incidental costs such as, but not limited to, title reports, appraisals, etc.

b) Undergrounding of utility transmission and distribution facilities, including construction, equipment, furnishings and all incidental costs needed.

Fiscal Year: Means the period starting on July 1 and ending the following June 30.

Floor Area Ratio: Means the total improved square footage of a structure divided by the total square footage of the parcel upon which the structure is located. For example, if the improved square footage of a structure is 50,000 sq. ft. and the parcel upon which the structure is located on is 25,000 sq. ft. the Floor Area Ratio is equal to 2.00 (50,000 sq. ft./25,000 sq. ft.).

Parcel Acreage: Means the acreage identified on a County Assessor’s map for a particular parcel. If the acreage is not indicated on the County Assessor’s map then the acreage indicated within the County Assessor’s database or any other calculation which accurately depicts the parcel’s acreage. If it is determined that the County Assessor’s map acreage information for a particular parcel is not accurate then the calculated acreage based upon good engineering judgment shall be used.

Services: Means the maintenance and operation of the Services defined below:

I. Fire Suppression and Emergency Medical Services.

a) Fire fighting and emergency medical service personnel salaries, benefits and other associated operations and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.

2. Police Protection and Public Safety Services

a) Police and public safety personnel salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.

3. Open Space Services.

Maintenance and operation of open space and natural wild lands owned or otherwise controlled by the City of Brentwood including State Park Lands adjacent to the City of Brentwood subject to Joint Use or a Memorandum of Understanding between the City and the State of California. Maintenance and operation may include, but is not limited to:

a) Maintenance workers, volunteers and patrol guard salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.

4. Flood and Storm Drainage Services.

Maintenance and operation of flood and storm drainage improvements owned or otherwise controlled by the City of Brentwood. Maintenance and operation may include but is not limited to:

a) Maintenance workers salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel.

5. Joint Use School Site Services.

a) Maintenance of joint use school park facilities between the City and the School Districts within the City of Brentwood which includes, but is not limited to, elementary and secondary school park sites and structures servicing the residents of the City of Brentwood. Staff and maintenance workers salaries, benefits and other associated operation and maintenance costs which are needed for the daily activities and normal employment of these types of personnel are also included. Such services shall only be those necessary for the general public use of the joint use school park facilities and shall not include any costs associated with school use or maintenance.

Special Tax Rate: Means the Special Tax levied on each Taxable Parcel within the boundaries of the District each Fiscal Year as shown in the following table and subject to increases discussed below.

1 If any Taxable Parcel within the boundaries of the District has a Floor Area Ratio greater than one (1.00) the Special Tax Rates shown in the table above will be multiplied by the Taxable Parcel’s Floor Area Ratio. For example, if a commercial parcel has a Floor Area Ratio of 1.50 the FY 2004-05 Special Tax Rate would be $7,650.00 per acre ($5,100.00/acre x 1.50).

2 For FY 2004-05 and on, the Facilities Special Tax Rate for Single Family, Condominium, Multi-Family, and Rural parcels shown in the table above will be increased two (2.00%) percent compounded annually, per Government Code § 53321.

3 For FY 2004-05 and on, the Services Special Tax Rate for Single Family, Condominium, Multi-Family, and Rural parcels shown in the table above will be increased by the Consumer Price Index for San Francisco Bay Area Urban Wage Earners (from June 2004) with a minimum of two (2.00%) percent and a maximum of five (5.00%) percent compounded annually for any given year.

4 For Special Tax calculation purposes, the maximum acreage any Taxable Parcel will have is five (5.00) acres. Taxable Parcels greater than five (5.00) acres will default to five (5.00) acres. For FY2004-05 and on the Special Tax Rates for Commercial, Industrial, and Institutional parcels shown in the table above will be increased by the Consumer Price Index for San Francisco Bay Area Urban Wage Earners (from June 2004) with a minimum of two (2.00%) percent compounded annually.

Special Taxes: Means the Special Taxes levied on a Taxable Parcel pursuant to the Special Tax Rate.

Taxable Parcel: Means an Assessor Parcel within the boundaries of the District that is not classified as an Exempt Parcel and for which a Building Permit has been issued prior to January 1 preceding the Fiscal Year Special Taxes are levied.
CALCULATION OF SPECIAL TAXES

The calculation of the Special Taxes will be as follows for each Fiscal Year commencing with Fiscal Year 2004-05:

1) On or about July 1 of each year the City will determine which parcels within the boundaries of the District are classified as Taxable Parcels.

2) The City will calculate the Floor Area Ratio for each Taxable Parcel to determine if the Floor Area Ratio for any Taxable Parcel exceeds one (1.00).

3) The City will calculate the total revenue the District would receive for the ensuing Fiscal Year, if the City were to levy the maximum Special Tax on all Taxable Parcels within the boundaries of the District.

4) The City Engineer and Finance Director will determine the Facilities and Services funding needs for the District for the ensuing Fiscal Year, which will include the costs to provide Annual Administrative Costs.

5) If the Facilities and Services revenue needs for the District identified in Step No. 4 above are less than the projected revenues identified in Step No. 3 the Special Tax rates would be reduced proportionately for each Taxable Parcel for the ensuing Fiscal Year. If the Facilities and Services revenue needs for the District identified in Step No. 4 above are equal to or greater than the projected revenues identified in Step No. 3 the Special Tax rates would be levied at the maximum Special Tax rate for each Taxable Parcel. If bonds are issued the annual Special Tax revenues would first be used to pay for the ensuing year’s annual principal and interest payments and any other associated bonding costs on those bonds.

6) The City will submit the Special Taxes to the County Auditor’s office for inclusion on the secured property tax roll for the applicable Fiscal Year.

COLLECTION OF THE SPECIAL TAXES

Each year, the City’s Finance Department will coordinate with the Contra Costa County Tax Collector’s office to have the Special Tax for each applicable Taxable Parcel placed on the secured property tax roll. If the City believes it is in their best interest they may be able to use methods including but not limited to, direct billing by the City to the property owners and supplemental billing.

EXHIBIT E

NOTICE OF PUBLIC HEARING

COMMUNITY FACILITIES DISTRICT NO. 4
CITY OF BRENTWOOD
COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA

NOTICE IS HEREBY GIVEN that on September 14, 2004, the City of Brentwood (the "City") duly adopted its Resolution No. ______ (the "Resolution of Intention") wherein it declared its intention to establish a community facilities district to be known as "Community Facilities District No. 4, City of Brentwood, County of Contra Costa, State of California" ("CFD No. 4) and to levy a special tax to pay the costs of certain public facilities (the "Facilities") and services (the “Services”), and its Resolution No. _____ (the "Resolution Declaring the Necessity for Incurring a Bonded Indebtedness) wherein it declared its intention to incur a bonded indebtedness in the principal amount of not-to-exceed fifty million dollars ($50,000,000) to finance the acquisition and construction of the Facilities within CFD No. 4 under and pursuant to the terms and provisions of Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California.
This Notice contains a brief summary of the proposal to establish CFD No. 4, but you are referred to the City's Resolution of Intention No. ________ and Resolution Declaring the Necessity for Incurring a Bonded Indebtedness No. _______ on file with the Clerk for the definitive description of the proposal.
The proposal is to authorize (1) a special tax within CFD No. 4, (2) funding for the Services on an annual basis, (3) funding for the acquisition and construction of the Facilities, (4) the annual appropriations limit of CFD No. 4 to be set at $5,000,000 for the 2004-2005 fiscal year, and (5) the issuance of bonds to finance the Facilities.
Descriptions of the Facilities to be acquired and constructed and the Services to be provided in CFD No. 4 are attached hereto as Exhibits A and B, respectively.
A list of the incidental expenses and bond issuance costs is attached hereto as Exhibit C.
The Rate and Method of Apportionment of the Special Tax is attached hereto as Exhibit D.
In order to confer the authority upon the City to levy the special tax and to issue the bonds, a public hearing must be held on the proposal, then the City will decide whether to form the community facilities district, and finally the qualified electors within CFD No. 4 must approve the proposal by a two-thirds vote. Where the community facilities district is uninhabited (as the case here) the qualified electors are, pursuant to law, the owners of property within the community facilities district.
THIS IS THE NOTICE OF THE PUBLIC HEARING.
The public hearing will be held during a City Council meeting on Tuesday, November 9, 2004 at 7:00 p.m., or as soon thereafter as the City may reach the matter, at the meeting place of the City Council at 734 Third Street, Brentwood, California 94513.
At the hearing, the testimony of all interested persons or potential special taxpayers for or against the formation of the proposed community facilities district, the authorization to levy the special tax, and the authorization to issue the bonds will be heard. If written protests against the proposed CFD No. 4 are delivered to the Clerk at or before the time set for the hearing by either registered voters residing within, or the owners of property within, the proposed CFD No. 4, they will be counted toward a possible majority protest. Such protests by a majority of the registered voters residing within CFD No. 4 (provided they number at least 6) or by the owners of a majority of the land area within CFD No. 4 which is or will be subject to the special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, will require the proposed CFD to be eliminated from immediate consideration, and prevent its being included in a subsequent proceedings for at least one year. If such protests are directed only against certain elements of the proposed facilities or services or proposed special tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings.
Questions should be directed to the City of Brentwood Engineering Department, Debra Galey, telephone (925) 516-5420.
Dated: September 14, 2004

Balwinder S. Grewal, City Engineer
CITY OF BRENTWOOD

ATTACHMENTS TO THE NOTICE OF PUBLIC HEARING

Exhibit A – Authorized Facilities (as shown previously)
Exhibit B – Authorized Services (as shown previously)
Exhibit C – Incidental Expenses and Bond Issuance Costs (as shown previously)
Exhibit D – Rate and Method of Apportionment of the Special Tax (as shown previously)

CLERK’S CERTIFICATE
I, Karen Diaz, City Clerk of the City of Brentwood, do hereby certify as follows:
The foregoing resolution is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on the 14th day of September, 2004, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said resolution was adopted by the following vote:
AYES: Councilmembers

NOES:

ABSENT:

An agenda of said meeting was posted at least 72 hours before said meeting at City Hall, 150 City Park Way, Brentwood, California 94513, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.
I have carefully compared the foregoing with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes.
Said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect.
Dated: _____________, 2004.

_________________________________________
Karen Diaz, CMC
City Clerk
(SEAL)

RESOLUTION NO. ____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD DECLARING THE NECESSITY FOR INCURRING A BONDED INDEBTEDNESS IN AND FOR ITS COMMUNITY FACILITIES DISTRICT NO. 4 AND CALLING FOR A PUBLIC HEARING THEREON

WHEREAS, the City of Brentwood (the “City”) declares and finds that in order to finance the acquisition and construction of public improvements described in this City's Resolution No. _______, Resolution of the City of Brentwood Declaring Its Intention to Establish its Community Facilities District No. 4 and to Levy a Special Tax Therein to Finance Certain Public Facilities and Services in and for such Community Facilities District (the “Resolution of Intention”), it is necessary to incur a bonded indebtedness; and

WHEREAS, the purpose for which the proposed debt is to be incurred is to provide the funds necessary to pay for the cost of said public improvements.

NOW, THEREFORE, BE IT RESOLVED by the CITY COUNCIL of the CITY OF BRENTWOOD as follows:

Section 1. The City Council finds and determines that the foregoing recitals are true and correct.

Section 2. The maximum amount of the proposed bonded indebtedness is $50,000,000.

Section 3. The City hereby sets Tuesday, November 9, 2004 at 7:00 p.m., or as soon thereafter as the City may reach the matter, at the meeting place of the City at 734 Third Street, Brentwood, California 94513, as the time and place for a hearing by the City on the proposed bond issue. At that time and place any persons interested, including any persons owning property in Community Facilities District No. 4, City of Brentwood, County of Contra Costa, State of California, will be heard.

Section 4. It is the intention of this City that any such bonds issued shall be made callable in accordance with the terms of the Community Facilities Act of 1982.

Section 5. The Clerk shall publish a copy of the Notice of Public Hearing pursuant to the Resolution of Intention.

Section 6. This resolution shall take effect from and after its adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 14th day of September, 2004, by the following vote:

CLERK’S CERTIFICATE
I, Karen Diaz, City Clerk of the City of Brentwood, do hereby certify as follows:
The foregoing resolution is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on the 14th day of September, 2004, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said resolution was adopted by the following vote:
AYES: Councilmembers

NOES:

ABSENT:

An agenda of said meeting was posted at least 72 hours before said meeting at City Hall, 150 City Park Way, Brentwood, California 94513, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.
I have carefully compared the foregoing with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes.
Said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect.
Dated: _____________, 2004.
_________________________________________
Karen Diaz, CMC
City Clerk
(SEAL)

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov