from: phil kamlarz, city manager submitted by: lisa ... · 3/9/2010 · office of the city manager...

Office of the City Manager

ACTION CALENDAR March 9, 2010

To: Honorable Mayor and Members of the City Council

From: Phil Kamlarz, City Manager

Submitted by: Lisa Caronna, Deputy City Manager Zach Cowan, City Attorney Subject: June 2010 Ballot Measure: Community Facilities District No. 2 (Berkeley Pools)

RECOMMENDATION

Adopt three Resolutions related to the Community Facilities District No. 2 (Berkeley Pools):

1) Resolution of formation, establishing Community Facilities District No. 2 (Berkeley Pools), authorizing the levy of a special tax within the District, preliminarily establishing an appropriations limit for the District, and calling an election for the purpose of submitting the levy of the special tax and the establishment of the appropriations limit to the qualified electors of the District;

2) Resolution determining the necessity to incur a bonded indebtedness within proposed

Community Facilities District No. 2 (Berkeley Pools), setting forth the measure to be voted on, and calling an election for the purpose of submitting the measure to the qualified electors of the District; and

3) Resolution declaring the official intent of the City to be reimbursed for certain capital

expenditures from the proceeds of indebtedness (Community Facilities District No. 2 – Berkeley Pools)

FISCAL IMPACTS OF RECOMMENDATION The cost of placing this measure on the June ballot is identified in the companion report on the agenda tonight calling for a consolidated municipal election. CURRENT SITUATION The actions before the Council tonight are to adopt three resolutions that create CFD No. 2 (Berkeley Pools) also referred to as “District”, levy a special tax, establish an appropriation limit (Attachment 1); determine the necessity to incur bonded indebtedness within the District and calling for an election (Attachment 2) and allow for reimbursable expenditures (Attachment 3).

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Community Facilities District No 2 ACTION CALENDAR (Berkeley Pools) March 9, 2010

One area to note as reported to the Council on February 23 and consistent with existing policy, non-profits currently not taxed by other City taxes will not be taxed for CFD No 2 (Berkeley Pools). A requirement of the formation of a CFD is the filing of a report titled “Community Facilities District No. 2 (Berkeley Pools)” (Attachment 4) as submitted at the public hearing on February 23 and subsequently revised for the meeting tonight on March 9 and to be filed as part of the record of the Public Hearing. Concurrent with the Public Hearing on Feb 23, there was an opportunity for any protests on the formation of the District or the rate and method of apportionment and manner of collection. The City Clerk reported that no protests were received.

At the meeting of February 23 Council determined the final configuration and operations budget for the proposed CFD No. 2 to be placed on the ballot in June 2010. The configuration of swimming pools for construction, renovation and/or repair are a new replacement indoor warm pool at West Campus, reconstruction of the pools at King Middle School to be a 25 yard by 25 meter pool with a shallow area and improvements to associated facilities and improvements to two outdoor pools and associated facilities at West Campus and Willard Middle School resulting in a total facilities bond of $22,500,000. The Council further determined that a special tax of $730,000 annually to meet the shortfall in the existing aquatics operations maintenance budget plus $250,000 to expand pool hours of operation be included in the special tax for the June 2010 election and as described in the resolution establishing the District.

Council is requested to take action on the resolutions with actual dollar thresholds meeting the Council direction on what shall be included in the CFD. The actual implementation would not be activated unless approved by two-thirds of the voters in the June election.

The proposed ballot language as follows:

Ballot Language for Pools: $22,500,000 Bond and $980,000/Year Services Tax

Shall City of Berkeley Community Facilities District No. 2: incur bonded indebtedness not exceeding $22,500,000 to replace the multiuse indoor Warm Pool, renovate Willard and West Campus pools, construct a multipurpose pool at King; levy a special tax at a rate not exceeding $0.0258 per square foot of building area to finance that indebtedness and not exceeding $0.0126, indexed for inflation, to maintain pools and operate aquatics programs; and establish an annual District appropriations limit of $3,500,000?

The City Attorney has prepared an impartial analysis (Attachment 6) and is open to comments on this analysis.


A companion report following this report on the Council agenda tonight calls for a Consolidated Special Municipal Election for June 8, 2010 and makes findings necessary to place the measure on the ballot.

BACKGROUND In order to make room for much-needed classrooms, Berkeley Unified School District intends to demolish the seismically unsafe Berkeley High School Old Gym and the Warm Water Pool located within it in June 2011. In addition to the Warm Water Pool, Berkeley’s three other community pools, located on school district sites, are aging and have long been in need of renovation and repair. In 2000, the City received voter authorization for $3,250,000 in general obligation bonds to renovate the existing Warm Water Pool located at Berkeley High School (BHS). At that time, the payment on the bond for the average homeowner would have been $5.25 per $100,000 assessed value. The bond measure anticipated a pairing with Berkeley Unified School District (BUSD) to renovate the Old Gymnasium on the BHS site. Since that time, BUSD has determined that the old gymnasium cannot be salvaged if it is to meet its program needs. This requires a possible replacement of a new warm water pool at another site. The 2000 bond measure cannot be used for a new warm water pool at another site. Thus, the bond approved in 2000 for the Warm Water Pool will not be issued and no taxes will be levied to pay for it. On July 22, 2008, the Berkeley City Council approved Resolution No. 64,162 – N.S. to develop a Comprehensive Plan for the future development of public pools including the community pools and the Warm Water Pool, and to direct the City Manager to work directly with the Berkeley Unified School District Superintendent to engage community stakeholders in this process. The School Board passed a similar resolution on July 18, 2008. The City Council allocated $300,000 to fund the planning, completion of CEQA requirements and environmental analysis, and to assist the Task Force with completing the Citywide Pools Master Plan.

The Pools Task Force completed the Draft Citywide Pools Master Plan in April 2009, with assistance from City of Berkeley staff, Berkeley Unified School District staff, and architecture and pool experts. The Draft Master Plan addresses Citywide needs and interests related to pools and aquatic programs, including renovating existing pools, constructing a new Warm Water Pool, and identifying options for new swim facilities.

At its November 17, 2009, meeting, Council adopted the Citywide Pools Master Plan, including the Design Variant (Alternative C requested by the Council), adopted the Mitigated Negative Declaration and the Mitigation Monitoring and Reporting Program. Council also agreed to conduct a community survey to assess voter opinion on a possible ballot measure for June 2010.

On December 15, 2009, the Council discussed a possible ballot measure for the June 2010 election to fund construction and operation of city pools. At that meeting, options for capital and operational swimming pools costs were presented with costs to the homeowner for a range of possible measures.


Council agreed to move forward with formation of a Mello-Roos Community Facilities District (CFD) as a means of funding both new capital facilities and some of the operation and maintenance costs associated with them. On January 19, 2010 Council adopted resolutions of intention and other materials to initiate formation of a CFD and issuance of bonded indebtedness. Council also took action to set a Public Hearing on February 23, 2010 which is

a requirement in the formation of the CFD. In those resolutions of intention, Council set a limit for potential capital (i.e. facility construction) costs at $30 million, and a limit for annual operation and maintenance at $1 million. The Council can lower those amounts when it takes action tonight to adopt new resolutions to form a CFD and place a special tax and bond on the ballot. However it was necessary to use those amounts initially because the actual determination on what pools configuration to place on the ballot had not been made, and the Council could not increase the CFD funding beyond was identified in the resolutions on the intention to form a CFD.

A Public Hearing was held on February 23, 2010. Concurrent with the Public Hearing there was an opportunity for any protests on the formation of the District or the rate and method of apportionment and manner of collection. The City Clerk reported that no protests were received or heard.

At the meeting of February 23, Council determined the final configuration and operations budget for the proposed CFD No. 2 to be placed on the ballot in June 2010. The configuration of swimming pools for construction, renovation and/or repair are a new replacement indoor warm pool at West Campus, reconstruction of the pools at King Middle School to be a 25 yard by 25 meter pool with a shallow area and improvements to associated facilities and improvements to two outdoor pools and associated facilities at West Campus and Willard Middle School resulting in a total facilities bond of $22,500,000. The Council further determined that a special tax of $730,000 annually to meet the shortfall in the existing aquatics operations maintenance budget plus $250,000 to expand pool hours of operation be included in the special tax for the June 2010 election.

CRITICAL TIMELINE To meet elections code deadlines, the last scheduled Council Meeting to adopt resolutions calling an election is the meeting tonight - March 9, 2010. RATIONALE FOR RECOMMENDATION To implement the Pools Master Plan, capital and operational funding is needed. The most viable options for funding for both capital and operations and maintenance are through a Mello-Roos CFD which requires 2/3rd voter approval.

ALTERNATIVE ACTIONS CONSIDERED If Council decides not to place a measure on the ballot or if the ballot measure fails, Willard pool will close and the Warm Water pool will not be replaced once it is demolished by the School District in June of 2011. This will result in two pools for the aquatics system in Berkeley; an outdoor pool at King and an outdoor pool at West Campus.

CONTACT PERSON Lisa Caronna, Deputy City Manager, 981-7006 Zach Cowan, City Attorney, 981-6983 William Rogers, Director, Parks, Recreation and Waterfront, 981-6700


Attachments: 1. Resolution to Form a CFD and Authorize the Levy of a Special Tax within the

Proposed District Ex. A – Description of Facilities Ex. B – Description of Services Ex. C Rate, Method and Manner of Collection

2. Resolution to Incur Bonded Indebtedness within the District Ex. A – Ballot Language

3. Resolution of Intent for Reimbursement 4. Community Facilities District Report 5. Map of the District 6. City Attorney Impartial Analysis

ATTACHMENT 1

RESOLUTION NO. _____-N.S.

RESOLUTION OF FORMATION, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2 (BERKELEY POOLS), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT, PRELIMINARILY ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT, AND CALLING AN ELECTION FOR THE PURPOSE OF SUBMITTING THE LEVY OF THE SPECIAL TAX AND THE ESTABLISHMENT OF THE APPROPRIATIONS LIMIT TO THE QUALIFIED ELECTORS OF THE DISTRICT

WHEREAS, this Council did, on January 19, 2010, adopt its Resolution No. 64,751-N.S. of intention to establish Community Facilities District No. 2 (Berkeley Pools) (the “District”), and levy a special tax therein, pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”); and

WHEREAS, Resolution No. 64,751-N.S., (1) describing the proposed boundaries of the District, the name of the District, the types of facilities proposed to be financed by the District (the “Facilities”), and the types of services proposed to be financed by the District (the “Services”), (2) providing that, except where funds are otherwise available to pay for the Facilities, and/or the principal and interest as it becomes due on bonds of the District issued to finance the Facilities, to pay for the Services, and to pay incidental expenses related thereto, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all nonexempt real property in the District, will be levied annually within the boundaries of the District, (3) specifying the rate, method of apportionment, and manner of collection of the special tax in sufficient detail to allow each landowner or resident within the proposed District to estimate the maximum amount that he or she will have to pay for the Facilities and Services, and (4) setting a hearing thereon, is incorporated herein by this reference; and

WHEREAS, notice of the hearing was duly published as required by law, as evidenced by the affidavit of publication on file with the City Clerk; and

WHEREAS, at the time and date set for the hearing, February 23, 2010, this Council held the public hearing as required by law relative to the proposed formation of the District, the levy of the special tax, and all other matters set forth in Resolution No. 64,751-N.S.; and

WHEREAS, on February 1, 2010, being at least fifteen (15) days prior to the hearing, a map of the proposed boundaries of the District, entitled “Proposed Boundaries of Community Facilities District No. 2 (Berkeley Pools) City of Berkeley, Alameda County, California” (the “Boundary Map”) was recorded pursuant to Section 3111 of the California Streets and Highways Code in the office of the County Recorder of the County of Alameda in Book 17 of Maps of Assessment and Community Facilities Districts, at 8; and

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WHEREAS, prior to the hearing a report (the “Report”) containing (1) a description of the Facilities and Services required to adequately meet the needs of the District, and (2) an estimate of (a) the cost of providing the Facilities and Services; (b) the fair and reasonable costs of any of the Facilities to be purchased; and (c) the fair and reasonable cost of incidental expenses to be incurred in connection therewith, including, with respect to the Facilities, the costs of the proposed bond financing and other costs as provided in Section 53345.3 of the Act, was filed with this Council as a part of the record of the hearing and duly considered by this Council and subsequently revised for the meeting on March 9, 2010; and

WHEREAS, staff has recommended changes to the proposed special tax, as set forth in Exhibit C to Resolution No. 64,751-N.S., none of which increases the probable special tax, increases the proposed maximum special tax, or adds territory to the proposed District; and these recommendations have been incorporated into the Report; and

WHEREAS, at the hearing all interested persons for or against the establishment of the District, the extent of the District, the furnishing of the Facilities or Services, or the proposed rate, method of apportionment, and manner of collection of the special tax, were heard and considered, and a full and fair hearing was held thereon; and

WHEREAS, at the hearing evidence was presented to this Council on the matters before it, and this Council, at the conclusion of the hearing, was fully advised as to all matters relating to the formation of the District, the levy of the special tax, and all other matters set forth in Resolution No. 64,751-N.S.; and

WHEREAS, written protests against the establishment of the District, the furnishing of specified type or types of facilities and services within the District as listed in the Report, or the levying of the special tax have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the District, or the owners of one-half (1/2) or more of the area of the land proposed to be included in the District and not exempt from this special tax; and

WHEREAS, the City Clerk is the Council’s designated election official for purpose of the election herein called.

NOW THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley, as follows:

The foregoing recitals are true and correct.

The proposed special tax to be levied in the District has not been precluded by majority protest pursuant to Section 53324 of the Act. Any protests to the establishment of the District, the extent thereof, or the furnishing of the public facilities proposed therefor, or the levy of the special tax proposed to be levied in the District, are hereby overruled.

As proposed in Resolution No. 64,751-N.S., a community facilities district is hereby established pursuant to the Act, designated “City of Berkeley

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Community Facilities District No. 2 (Berkeley Pools),” the boundaries of which are as shown on the Boundary Map.

(a) The Facilities to be financed by the District are set forth in EXHIBIT A and by this reference incorporated herein. They are public facilities having a useful life of five years or longer. The Services to be financed by the District are set forth in EXHIBIT B and by this reference incorporated herein.

(b) No land within the District is devoted primarily to agricultural, timber or livestock uses or being used for the commercial production of agricultural, timber or livestock products.

(c) The Report related to the Facilities and Services shall be a part of the record in these proceedings. For purposes hereof, the Report shall refer and apply to the Report as modified, amended, revised or corrected pursuant to and in accordance with this resolution as well as any other resolution or order heretofore adopted or made by this Council.

(a) As stated in Resolution No. 64,751-N.S., except where funds are otherwise available, it is the intention of this Council, subject to the approval of the qualified electors of the District, to annually levy a special tax sufficient to pay for the Facilities, and/or the principal and interest as it becomes due on the bonds of the District issued to finance the Facilities, to pay for the Services, and to pay incidental expenses related thereto, secured by recordation of a continuing lien against all nonexempt real property in the District.

(b) The rate, method of apportionment, and manner of collection of the special tax, in sufficient detail to allow each landowner or resident within the District to estimate the maximum amount such person will have to pay for the Facilities and Services is described in EXHIBIT C and by this reference incorporated herein. The rate, method of apportionment, and manner of collection, as set forth in EXHIBIT C has been revised from the prior version, which is attached as EXHIBIT C to Resolution No. 64,751-N.S. as follows: (i) the maximum special tax for Facilities has been reduced from $0.0287 to $0.0258 per square foot of Building Area; (ii) the maximum special tax for Services has been reduced from $0.0129 to $0.0126 per square foot of Building Area; and (iii) the special tax will be levied commencing in fiscal year 2010-11 rather than 2012-13; and (iv) the 30 year term of special tax for the Facilities will terminate in 2039-40 rather than 2041-42.

(c) The obligation to pay the special tax for Facilities may be prepaid and permanently satisfied, and that portion of the special tax lien discharged pursuant to the procedures set forth in EXHIBIT C. The obligation to pay the special tax for Services may not be prepaid and permanently satisfied.

(d) The special tax as apportioned to each parcel pursuant to EXHIBIT C is based on the cost of making the Facilities and Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.

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(e) There is no ad valorem property tax currently being levied on property within the District for the exclusive purpose of making lease payments or paying principal or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which are the same as are to be provided by the Facilities to be financed by the District.

(f) Pursuant to Section 53314.9 of the Act, this Council may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, and may provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including, but not limited to, paying any costs incurred by the City in creating the District.

The office of the Director of Finance is hereby designated as the office, department or bureau which will be responsible for annually preparing the current roll of special tax levy obligations by assessor’s parcel number on nonexempt property within the District and which will be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Act. The current name, address, and telephone number of the office of the Director of Finance, and the person responsible for administering the District, is as follows:

Robert Hicks, Director of Finance City of Berkeley 2180 Milvia Street Berkeley, California 94704 Telephone: (510) 981-7300

Such officer is hereby directed to establish procedures to promptly respond to inquiries concerning current and future estimated tax liability pursuant to Section 53340.2 of the Act.

All prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of the Act.

In accordance with Section 53325.7 of the Act, the annual appropriations limit of the District, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, is hereby preliminarily established at $3,500,000 and this annual appropriations limit shall be submitted to the voters of the District as hereafter provided. The proposition establishing this appropriations limit shall become effective if approved by the qualified electors voting thereon, and shall be adjusted in accordance with the applicable provisions of Section 53325.7 of the Act.

(a) This Council hereby calls a special election and submits the question of levying the special tax, and the establishment of the annual appropriations limit for the District in connection therewith, to the qualified electors within the District. The election shall be held on Tuesday, June 8, 2010, and shall be consolidated with the statewide election to be held on such

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date. The voting procedure herein described is also described in Resolution No. 64,751-N.S.

(b) More than twelve (12) persons have been registered to vote within the territory of the District for each of the ninety (90) days preceding the close of the hearing referenced herein. Accordingly, for the purposes of these proceedings, the qualified electors shall be the registered voters in the District, with each registered voter having one vote. There shall be prepared and included in the ballot material provided to each voter an impartial analysis, tax rate statement, and arguments and rebuttals, if any, as provided in Section 53327(a) of the Act.

(c) The Council hereby designates the City Clerk as the election official to conduct the election. The City Clerk has concurred in such designation.

This Council hereby directs that the election, at which the question of levying the special tax and the establishment of an appropriations limit in connection therewith is submitted to the qualified electors within the District, be consolidated with the election at which the question of incurring a bonded indebtedness in an aggregate principal amount of not to exceed $22,500,000 for the District, as set forth in this Council’s Resolution No. 64,752-N.S., is submitted to the qualified electors within the District, and the question of levying the special tax shall be combined in one ballot proposition with the question of incurring such bonded indebtedness and the question of establishing an appropriations limit for the District, all as provided by the Act.

Within three business days after the adoption of this Resolution, the City Clerk shall accept and file a certified copy of this Resolution along with a certified copy of the Boundary Map and a sufficient description of the boundaries of the District. The City Clerk shall also accept and file the assessor’s parcel numbers for the land within the District, if necessary.

If two-thirds (2/3) of the votes cast upon the question of levying the special tax are cast in favor of levying the tax, as determined by this Council after the canvass of the returns of the consolidated election, this Council may levy the special tax within the District in the amount and for the purposes specified in this Resolution. The special tax may be levied only at the rate and may be apportioned only in the manner specified in this Resolution, subject to the Act, except that the special tax may be levied at a lower rate.

Upon a determination by this Council, after the canvass of the returns of the election contemplated in Sections 9 and 10 hereof, that two-thirds (2/3) of the votes cast upon the question of levying the special tax are in favor thereof, the City Clerk shall record a notice of special tax lien as provided for in Section 3114.5 of the California Streets and Highways Code. Upon such recordation, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District, and this lien shall continue in force and effect until the collection of the special tax by this Council ceases.

EXHIBIT A

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DESCRIPTION OF FACILITIES

The Facilities are described in the Final Berkeley Citywide Pools Master Plan, as adopted by the Berkeley City Council on November 10, 2009, to which reference is made as well as lesser improvements encompassed by the Plan. The Facilities include, but are not limited to:

1. Swimming Pool Facilities at Martin Luther King Middle School:

Repair or replacement of the existing pools, or the demolition of one or both pools and/or the construction of a new pool, possibly including a children’s play pool area with amenities.

Repair, replace and expand (if needed) pool facilities and structures, including locker rooms, restrooms, and mechanical rooms and equipment.

Related site improvements such as paving, lighting, fencing, utilities, landscaping and other amenities.

2. Swimming Pool Facilities at Willard Middle School

Repair or replacement of the existing pools, or demolition of one or both pools and/or the construction of new pools, possibly including a children’s play pool with amenities.

Repair, replace, and expand (if needed) pool facilities and structures, including locker rooms, restrooms, and mechanical rooms and equipment.

Related site improvements such as paving, lighting, fencing, utilities, and landscaping and other amenities.

3. Swimming Pool Facilities at West Campus (University Avenue at Bonar Street):

The construction of a new indoor warm therapy pool and demolition of the existing dive pool, and either the repair of the existing outdoor pool or its replacement with a new outdoor instructional/play pool with amenities designed for children and families.

Repair, replace, and expand (if needed), or demolish and construct new pool facilities and structures, including locker rooms, restrooms, and mechanical rooms and equipment.


The above listed types of Facilities are proposed to include incidental expenses as authorized by the Mello-Roos Community Facilities Act of 1982.

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EXHIBIT B

DESCRIPTION OF SERVICES

Recreation program services consisting of the administration and operation of the City’s aquatics program, including the maintenance and repair of the Facilities described in Exhibit A, together with incidental expenses related thereto as authorized by the Mello-Roos Community Facilities Act of 1982.

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EXHIBIT C

RATE, METHOD OF APPORTIONMENT AND MANNER OF COLLECTION OF SPECIAL TAX

I. BASIS OF SPECIAL TAX LEVY

The Special Tax shall be levied on each separate parcel within Community Facilities District No. 2 (Berkeley Pools), City of Berkeley, Alameda County, California (“CFD No. 2”) as shown on the Alameda County Assessor’s records, subject to the rates specified below as established by the City of Berkeley (“City”).

The Special Tax is comprised of two components, the first being a special tax for Facilities (the “Special Tax for Facilities”), and the second being a special tax for Services (the “Special Tax for Services”), as described herein. The Special Tax for Facilities component of the Special Tax is an amount which will be used to pay debt service on bonds issued to finance the Facilities. Only the Special Tax for Facilities will be used to support debt service on the CFD No. 2 bonds, and the bonded indebtedness will not be used to finance the Services. The Special Tax for Services component of the Special Tax will only be used to finance the Services.

The Special Tax shall be levied commencing in fiscal year 2010-11.

II. DETERMINATION OF PARCELS SUBJECT TO SPECIAL TAX

The Special Tax shall be based on parcels included in the County Assessor’s Secured Property Tax Roll as of March 1 of each year.

Using the Tax Roll, the City shall annually determine the parcels subject to the Special Tax and the amount of the Special Tax. All parcels lying within the City limits of the City shall be subject to the Special Tax, except as follows:

A. Federal or State owned parcels, and parcels owned by local agencies;

B. Parcels owned by very low income persons, as defined below.

C. Parcels owned by entities that are exempt from taxation measured by income or gross receipts under Article XIII, Section 26 of the California Constitution.

The City shall make all reasonable efforts to correctly identify the parcels subject to the Special Tax. However, it shall be the responsibility of each individual parcel owner to bring to the City’s attention any errors in such identification of which he/she becomes aware.

III. COSTS FOR FACILITIES

Costs for Facilities for any fiscal year shall be the total of the following:

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A. Debt service to be paid from the Special Tax for Facilities collected during such fiscal year, less earnings on the bond reserve fund and special tax fund that are transferred to the bond redemption fund under the documents pursuant to which the CFD No. 2 bonds are issued;

B. Administrative costs and expenses related to the administration of CFD No. 2 and the CFD 2 bonds for such fiscal year;

C. Any amounts needed to replenish the reserve fund to the level required under the documents pursuant to which the CFD No. 2 bonds are issued;

D. Payment for Facilities authorized to be financed by the Special Tax for Facilities.

IV. MAXIMUM SPECIAL TAX FOR FACILITIES

In any fiscal year the Maximum Special Tax for Facilities shall be $0.0258 per square foot of Building Area, as defined below.

V. SPECIAL TAX FOR SERVICES

In any fiscal year the Special Tax for Services shall be $0.0126 per square foot of Building Area, as defined below, in fiscal year 2010-11 dollars, which may be indexed annually by the greater of the increase in the cost of living in the immediate San Francisco Bay Area or per capital personal income growth in the State, as verified by official United States Bureau of Labor statistics. If either index referred to above is discontinued, the City shall use any successor index specified by the applicable agency, or if there is none, the most similar existing index then in existence.

VI. CALCULATION OF SPECIAL TAX

The Special Tax shall be levied for each fiscal year in an amount sufficient to pay the Costs for Facilities and to pay the Special Tax for Services, as defined above. The following formula shall be used to determine the Special Tax for each taxable parcel.

A. Calculation of Special Tax for Facilities:

(1) Determine the Costs for Facilities for the fiscal year;

(2) Determine the total square footage of Building Area for all taxable parcels in CFD No. 2; and

(3) Divide the Costs for Facilities determined in (1) above by the total square footage of Building Area determined in (2) above. The Special Tax for Facilities so calculated, or the Maximum Special Tax for Facilities specified above, whichever is smaller, shall be multiplied by the square footage of Building Area calculated for each taxable parcel to obtain the Special Tax for Facilities for such taxable parcel for the fiscal year; provided, however, that the Special Tax for Facilities levied on any parcel

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shall not be increased by more than 10 percent as a consequence of delinquency or default in the payment of the Special Tax for Facilities by the owner of any other parcel.

B. Calculation of Special Tax for Services:

Multiply the Special Tax for Services specified above by the square footage of Building Area calculated for each taxable parcel to obtain the Special Tax for Services for such taxable parcel for the fiscal year.

C. Calculation of Special Tax.

The Special Tax for each taxable parcel for the fiscal year shall be the sum of VI.A. plus VI.B.

VII. TERM OF SPECIAL TAX

A. The Special Tax for Facilities shall be levied and collected in CFD No. 2 for fiscal years 2010-11 through 2039-40 (thirty years).

B. The Special Tax for Services shall be levied and collected until it is repealed.

VIII. PREPAYMENT

A. A parcel owner may prepay the Special Tax for Facilities on his/her parcel by satisfying the following formula:

Amount of Prepayment = Maximum Special Tax for Facilities X Building Area X Remaining Years

(Where Remaining Years = fiscal year 2039-40 less the most recent fiscal year for which the Special Tax for Facilities has been paid)

B. A parcel owner may not prepay the Special Tax for Services on his/her parcel.

IX. MANNER OF COLLECTION

The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes.

X. EXEMPTION FOR VERY LOW INCOME PERSONS

The Special Tax shall not apply to any property owned by any person or persons whose combined total personal income, from all sources, for the previous calendar year, does not exceed that level which shall constitute “very low income,” as may be established by resolution of the City Council. Any property owner claiming the exemption shall be required to demonstrate his/her entitlement thereto annually by submitting an

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application and supporting documentation to the City Manager or his/her designee in the manner and at the time established in regulations and/or guidelines promulgated by the City Manager, subject to review by the City Council in its discretion. Such applications shall be on forms provided by the City Manager or his/her designee, and shall provide and/or be accompanied by such information as the City Manager shall require including, but not limited to, federal income tax returns and W-2 forms.

XI. BUILDING AREA DEFINED

A. Building means any structure having a roof supported by columns or by walls and designated for the shelter or housing of any person, chattel or property of any kind. The word “building” includes the word “structure.”

B. Structure means anything constructed or erected, the use of which requires location on the ground or attachment to something having location on the ground.

C. Building Area means the total gross horizontal areas of all floors, including usable basements and cellars, below the roof and within the outer surface of the main walls of buildings (or the center lines of party walls separating such buildings or portions thereof) or within lines drawn parallel to and two feet within the roof line of any building or portion thereof without walls (which includes, notwithstanding subsection (3) of this definition, the area of all porches), and including pedestrian access walkways or corridors, but excluding the following:

(1) Areas used for off-street parking spaces or loading berths, and driveways and maneuvering aisles relating thereto;

(2) Areas which are outdoor or semi-outdoor areas included as part of the building to provide a pleasant and healthful environment for the occupants thereof and the neighborhood in which the building is located. This exempted area is limited to stoops, balconies and to natural ground areas, terraces, pools and patios which are landscaped and developed for active or passive recreational use, and which are accessible for us by occupants of the building; and

(3) Arcades, porticoes and similar open areas which are located at or near street level, are accessible to the general public, and are not designed or used as sales, display, storage, service or production areas.

XII. INTERPRETATION OF SPECIAL TAX FORMULA

Interpretations may be made by resolution of the City Council for the purpose of clarifying any vagueness or ambiguity in the provisions hereof.

ATTACHMENT 2

RESOLUTION NO. ____-N.S.

RESOLUTION DETERMINING THE NECESSITY TO INCUR A BONDED INDEBTEDNESS WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2 (BERKELEY POOLS), SETTING FORTH THE MEASURE TO BE VOTED ON, AND CALLING AN ELECTION FOR THE PURPOSE OF SUBMITTING THE MEASURE TO THE QUALIFIED ELECTORS OF THE DISTRICT

WHEREAS, this Council did, on January 19, 2010, adopt its Resolution No. 64,751-N.S. entitled “Resolution of Intention to Establish Community Facilities District No. 2 (Berkeley Pools) and to Authorize the Levy of a Special Tax within the Proposed District” (the “Resolution of Intention to Establish the District”), in which this Council stated its intention to form Community Facilities District No. 2 (Berkeley Pools) (the “District”) pursuant to Chapter 2.5 of Part 1 of Title 5 (commencing with Section 53311) of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”) in order to finance certain facilities and services; and

WHEREAS, this Council did, on January 19, 2010 also adopt its Resolution No. 64,752-N.S., entitled “Resolution of Intention to Incur a Bonded Indebtedness in an Amount not to Exceed $30,000,000 within Proposed Community Facilities District No. 2 (Berkeley Pools )” (the “Resolution of Intention to Incur Indebtedness”) in which it stated its intention to incur bonded indebtedness within the boundaries of the District for the purpose of financing the costs of the facilities to be financed by the District as specified in the Resolution of Intention to Establish the District; and

WHEREAS, at the time and date set for the hearing (February 23, 2010) pursuant to the Resolution of Intention to Establish the District, this Council held the public hearing, as required by the Act, relative to the formation of the District, the provision of the facilities and services specified in the Resolution of Intention to Establish the District, and the rate, method of apportionment, and manner of collection of the special tax to be levied within the District; and

WHEREAS, at the time and date set for the hearing (February 23, 2010) pursuant to the Resolution of Intention to Incur Indebtedness, this Council also held the public hearing as required by the Act relative to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness; and

WHEREAS, notice of the consolidated hearings was published, as required by law, as evidenced by the certification of publication on file with the City Clerk; and

WHEREAS, staff has recommended that the proposed bonded indebtedness be reduced to an amount not to exceed $22,500,000; and

WHEREAS, subsequent to the hearings, this Council did, on March 9, 2010, adopt its Resolution No. ______, entitled “Resolution of Formation, Establishing Community Facilities District No. 2 (Berkeley Pools), Authorizing the Levy of a Special Tax within the District, Preliminarily Establishing an Appropriations Limit for the District, and Calling an Election for the Purpose of Submitting the Levy of the Special Tax and the

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Establishment of the Appropriations Limit to the Qualified Electors of the District” (the “Resolution of Formation”), which described the facilities (the “Facilities”) and services (the “Services”) to be financed; and

WHEREAS, this Council did, in the Resolution of Formation, and in accordance with Sections 53325.7 and 53353.5 of the Act, determine to consolidate the election on the levy of the special tax and the establishment of an appropriations limit for the District with the election on whether to incur a bonded indebtedness in the District; and

WHEREAS, the City Clerk is the Council’s designated election official for purpose of the election herein called.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Berkeley, as follows:

1. The foregoing recitals are true and correct.

2. This Council deems it necessary to incur bonded indebtedness.

3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities, being public facilities having a useful life of five years or longer, and the incidental expenses thereof, as provided in the Resolution of Formation.

4. The whole of the District shall pay for the bonded indebtedness.

5. The amount of bonded indebtedness to be incurred is not to exceed $22,500,000.

6. The maximum term of the bonds of any series shall not exceed thirty (30) years from the dated date of such series.

7. The bonds shall bear interest at rate or rates not to exceed the maximum rate permitted by law at the time the bonds are issued, payable semiannually or in such other manner as this Council shall determine, the actual rate or rates and times of payment of such interest to be determined by this Council at the time the bonds are issued.

8. The proposition of incurring the bonded indebtedness shall be submitted to the voters of the District and, pursuant to Section 53353.5 of the Act and the Resolution of Formation, the propositions on the levy of the special tax, the establishment of an appropriations limit, and whether to incur the bonded indebtedness, shall be combined in a single ballot measure, substantially in the form attached hereto as EXHIBIT A. The Board of Supervisors of Alameda County is hereby requested to include on the ballots and sample ballots the measure enumerated in EXHIBIT A. The City Clerk shall cause to have printed the ballot material provided to each voter, which shall include an impartial analysis, tax rate statement, and arguments and rebuttals, if any, as provided in Section 53327(a) of the Act.

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9. A special consolidated election is hereby called at which the measures referenced in Section 8 shall be submitted to the qualified electors of the District. The election shall be held on Tuesday, June 8, 2010, and shall be consolidated with the statewide election to be held on such date. The election shall be held in accordance with and subject to the Act.

10. At least twelve (12) persons have been registered to vote within the territory of the District for the ninety (90) days preceding the close of the hearings on the special tax levy and the proposed bonded indebtedness. Accordingly, the vote shall be by the registered voters of the District, and each such registered voter shall have one vote. The City Clerk, as the election official, is requested to ensure the full canvass of the returns is performed by the Alameda County Registrar of Voters and to certify the results of the election to this Council.

11. If two-thirds (2/3) of the votes cast upon the question of incurring the bonded indebtedness are cast in favor of the indebtedness, this Council may thereafter, at the time or times it deems proper, incur the indebtedness so authorized.

12. As provided in Section 53352 of the Act, this Resolution shall constitute the notice of such election and shall be published in an adjudicated newspaper of general circulation circulating within the District.

13. The City Clerk, City Attorney, and the other officers of the City are hereby authorized and directed, individually and collectively, to do any and all things, and to execute, deliver, and perform any and all agreements and documents, that they deem necessary or advisable in order to effectuate the purposes of this Resolution, including, without limitation, to prepare and submit for inclusion in the voter information materials an impartial analysis, and an argument in favor of passage of the ballot measure. All actions heretofore taken by the officers of the City that are in conformity with the purposes and intent of this Resolution, and the Resolution of Formation, are hereby ratified, conformed and approved.

EXHIBIT A

Ballot Language for Pools: $22,500,000 Bond and $980,000/Year Services Tax

Shall City of Berkeley Community Facilities District No. 2: incur bonded indebtedness not exceeding $22,500,000 to replace the multiuse indoor Warm Pool, renovate Willard and West Campus pools, construct a multipurpose pool at King; levy a special tax at a rate not exceeding $0.0258 per square foot of building area to finance that indebtedness and not exceeding $0.0126, indexed for inflation, to maintain pools and operate aquatics programs; and establish an annual District appropriations limit of $3,500,000?

ATTACHMENT 3

RESOLUTION NO. _____-N.S.

A RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY TO BE REIMBURSED FOR CERTAIN CAPITAL EXPENDITURES FROM THE PROCEEDS OF INDEBTEDNESS (COMMUNITY FACILITIES DISTRICT NO. 2 – BERKELEY POOLS)

RESOLVED, by the Council of the City of Berkeley, as follows:

WHEREAS, this City intends to form its Community Facilities District No. 2 (Berkeley Pools) in order to finance the acquisition and construction of certain capital facilities in conjunction with its aquatics program (the “Berkeley Pools Project”); and

WHEREAS, Section 1.150-2 of the U.S. Department of Treasury Regulations requires the City to declare its reasonable official intent to be reimbursed for prior capital expenditures made for the Berkeley Pools Project with proceeds of a subsequent borrowing; and

WHEREAS, the City has paid, and will pay on or after the date hereof certain capital expenditures (the “Expenditures”) in connection with the Berkeley Pools Project prior to the issuance of one or more series of tax-exempt bonds or other forms of indebtedness (the “Indebtedness”) in the principal amount of not to exceed $22,500,000 for the purpose of financing costs associated with the Berkeley Pools Project; and

WHEREAS, the City reasonably expects that certain of the proceeds of the Indebtedness will be used to reimburse the City for the Expenditures.

NOW, THEREFORE, BE IT FOUND, DETERMINED and ORDERED, that:

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

2. This declaration is made solely for purpose of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations, and does not bind the City to make any expenditure, incur any indebtedness, or proceed with the Berkeley Pools Project.

3. The City declares its official intent to use proceeds of the Indebtedness to reimburse itself for Expenditures made on or after the date which is no more than 60 days prior to the date hereof.

4. The City will make a reimbursement allocation, which is a written allocation by the City that evidences the City’s use of proceeds of the Indebtedness to reimburse itself for an Expenditure, no later than 18 months after the later of the date on which the Expenditure is paid or the Berkeley Pools Project is placed in service or

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abandoned, but in no event more than three years after the date on which the Expenditure is paid.

5. The City recognizes that exceptions are also available under the Treasury Regulations for certain “preliminary expenditures,” costs of issuance, certain de minimis amounts, expenditures by “small issuers” (based on the year of issuance and not the year of expenditure) and expenditures for construction projects of at least 5 years.

ATTACHMENT 4

CITY OF BERKELEY

COMMUNITY FACILITIES DISTRICT NO. 2

(BERKELEY POOLS)

REPORT

FEBRUARY 2010

Revised March 2010

REPORT

COMMUNITY FACILITIES DISTRICT No. 2

(BERKELEY POOLS) (PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982) BACKGROUND On, January 19, 2010, the City Council of the City of Berkley, California, pursuant to the provisions of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code, adopted its Resolution No. 64,751 – N.S. a Resolution of Intention to Establish Community Facilities District No. 2 (Berkeley Pools) and to Authorize the Levy of a Special Tax within the Proposed District. As directed by the City Council in it’s Resolution No. 64,751 – N.S. the undersigned Deputy City Manager makes this Report, pursuant to Section 53321.5 of the California Government Code (Mello-Roos Community Facilities Act of 1982). DESCRIPTION OF PROPOSED FACILITIES TO BE FINANCED BY THE COMMUNITY FACILITIES DISTRICT NO. 2 Construction of new and renovated public swimming facilities at three site locations in Berkeley. The construction is designed to build a new warm water indoor pool and renovate or replace existing pools and support facilities at the three sites described below renewing the lifetime and usability of the facilities. CONSTRUCTION OF THE “BERKELEY POOLS” AT EACH SITE INCLUDE: The Facilities include, but are not limited to:

1. Swimming Pool Facilities at Martin Luther King Middle School:

Repair or replacement of the existing pools, or the demolition of one or both pools and/or the construction of a new pool, possibly including a children’s play pool area with amenities.

Repair, replace and expand (if needed) pool facilities and structures, including locker rooms, restrooms, and mechanical rooms and equipment.


2. Swimming Pool Facilities at Willard Middle School

Repair or replacement of the existing pools, or demolition of one or both pools and/or the construction of new pools, possibly including a children’s play pool with amenities.

Repair, replace, and expand (if needed) pool facilities and structures, including locker rooms, restrooms, and mechanical rooms and equipment.

Related site improvements such as paving, lighting, fencing, utilities, and landscaping and other amenities.

3. Swimming Pool Facilities at West Campus (University Avenue at Bonar Street):

The construction of a new indoor warm therapy pool and demolition of the existing dive pool, and either the repair of the existing outdoor pool or its replacement with a new outdoor pool with amenities designed for children and families.

Repair, replace, and expand (if needed), or demolish and construct new pool facilities and structures, including locker rooms, restrooms, and mechanical rooms and equipment.


The above listed types of Facilities are proposed to include incidental expenses as authorized by the Mello-Roos Community Facilities Act of 1982.

ESTIMATED COST OF PROPOSED FACILITIES The estimated cost of the facilities, including costs and expenses incidental thereto, is as follows: Estimate Costs: Three Swimming Pool Sites: $ 22,600,000*

West Campus ($11,600,000) King Middle School ($6,400,000) Willard Middle School ($4,600,000)

Reserve Fund 1,747,000 Cost of Issuance 303,000 Underwriters Discount 223,000 Net Proceeds to City 2,000 Total $ 24,875,000 Less Accumulated tax revenue first 2 years $ 2,600,000 Total Bond Required $ 22,275,000 Total Bond Authorized $ 22,500,000

* The cost estimates include all construction and soft costs directly related to the project. Soft costs include but not limited to project management, design and engineering, testing, inspections, permits, printing and advertising.

DESCRIPTION OF PROPOSED SERVICES TO BE FINANCED BY COMMUNITY FACILITIES DISTRICT NO. 2 Recreation program services proposed to be financed consist of the administration and operation of the City’s aquatics program, including the maintenance and repair of the Facilities described above, together with incidental expenses related thereto as authorized by the Mello-Roos Community Facilities Act of 1982. ESTIMATED ANNUAL COST OF SERVICES To keep existing pools open while design and construction are in progress, for FY 2010-2011 and FY 2011-2012 (the first 2 years of the tax), $300,000 is allocated for the operations and maintenance of Berkeley Pools. Operating and maintaining Berkeley Pools as described above with newly constructed and renovated pools increases the projected FY 2013 (year construction completed) operating budget by $980,000 ($730,000 to keep pools open and $250,000 to expand hours of operation from existing hours programmed in 2009).


The rate, method of apportionment and manner of collection of special tax is set forth in Exhibit A hereto. The square footage of the building area used to implement the method of apportionment shall be that contained in the data base used for the City’s Park Tax, Library Tax, and the City’s Community Facilities District No 1 (Disaster Fire Protection) special tax district is on file at the Finance Department Revenue Collections Division, 1947 Center Street, and is available for inspection at that office during regular business hours.

Submitted by,

March 4, 2010 .

Date Lisa Caronna, Deputy City Manager

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EXHIBIT A


I. BASIS OF SPECIAL TAX LEVY

The Special Tax shall be levied on each separate parcel within Community Facilities District No. 2 (Berkeley Pools), City of Berkeley, Alameda County, California (“CFD No. 2”) as shown on the Alameda County Assessor’s records, subject to the rates specified below as established by the City of Berkeley (“City”).

The Special Tax is comprised of two components, the first being a special tax for Facilities (the “Special Tax for Facilities”), and the second being a special tax for Services (the “Special Tax for Services”), as described herein. The Special Tax for Facilities component of the Special Tax is an amount which will be used to pay debt service on bonds issued to finance the Facilities. Only the Special Tax for Facilities will be used to support debt service on the CFD No. 2 bonds, and the bonded indebtedness will not be used to finance the Services. The Special Tax for Services component of the Special Tax will only be used to finance the Services.

The Special Tax shall be levied commencing in fiscal year 2010-11.

II. DETERMINATION OF PARCELS SUBJECT TO SPECIAL TAX

The Special Tax shall be based on parcels included in the County Assessor’s Secured Property Tax Roll as of March 1 of each year.

Using the Tax Roll, the City shall annually determine the parcels subject to the Special Tax and the amount of the Special Tax. All parcels lying within the City limits of the City shall be subject to the Special Tax, except as follows:

A. Federal or State owned parcels, and parcels owned by local agencies;

B. Parcels owned by very low-income persons, as defined below.

C. Parcels owned by entities that are exempt from taxation measured by income or gross receipts under Article XIII, Section 26 of the California Constitution.

The City shall make all reasonable efforts to correctly identify the parcels subject to the Special Tax. However, it shall be the responsibility of each individual parcel owner to bring to the City’s attention any errors in such identification of which he/she becomes aware.

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III. COSTS FOR FACILITIES

Costs for Facilities for any fiscal year shall be the total of the following:

A. Debt service to be paid from the Special Tax for Facilities collected during such fiscal year, less earnings on the bond reserve fund and special tax fund that are transferred to the bond redemption fund under the documents pursuant to which the CFD No. 2 bonds are issued;

B. Administrative costs and expenses related to the administration of CFD No. 2 and the CFD No. 2 bonds for such fiscal year;

C. Any amounts needed to replenish the reserve fund to the level required under the documents pursuant to which the CFD No. 2 bonds are issued;

D. Payment for Facilities authorized to be financed by the Special Tax for Facilities.

IV. MAXIMUM SPECIAL TAX FOR FACILITIES

In any fiscal year the Maximum Special Tax for Facilities shall be $0.0258 per square foot of Building Area, as defined below.

V. SPECIAL TAX FOR SERVICES

In any fiscal year the Special Tax for Services shall be $0.0126 per square foot of Building Area, as defined below, in fiscal year 2010-11 dollars, which may be indexed annually by the greater of the increase in the cost of living in the immediate San Francisco Bay Area or per capital personal income growth in the State, as verified by official United States Bureau of Labor statistics. If either index referred to above is discontinued, the City shall use any successor index specified by the applicable agency, or if there is none, the most similar existing index then in existence.

VI. CALCULATION OF SPECIAL TAX

The Special Tax shall be levied for each fiscal year in an amount sufficient to pay the Costs for Facilities and to pay the Special Tax for Services, as defined above. The following formula shall be used to determine the Special Tax for each taxable parcel.

A. Calculation of Special Tax for Facilities:

(1) Determine the Costs for Facilities for the fiscal year;

(2) Determine the total square footage of Building Area for all taxable parcels in CFD No. 2; and

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(3) Divide the Costs for Facilities determined in (1) above by the total square footage of Building Area determined in (2) above. The Special Tax for Facilities so calculated, or the Maximum Special Tax for Facilities specified above, whichever is smaller, shall be multiplied by the square footage of Building Area calculated for each taxable parcel to obtain the Special Tax for Facilities for such taxable parcel for the fiscal year; provided, however, that the Special Tax for Facilities levied on any parcel shall not be increased by more than 10 percent as a consequence of delinquency or default in the payment of the Special Tax for Facilities by the owner of any other parcel.

B. Calculation of Special Tax for Services:

Multiply the Special Tax for Services specified above by the square footage of Building Area calculated for each taxable parcel to obtain the Special Tax for Services for such taxable parcel for the fiscal year.

C. Calculation of Special Tax.

The Special Tax for each taxable parcel for the fiscal year shall be the sum of VI.A. plus VI.B.

VII. TERM OF SPECIAL TAX

A. The Special Tax for Facilities shall be levied and collected in CFD No. 2 for fiscal years 2010-11 through 2039-40 (thirty years).

B. The Special Tax for Services shall be levied and collected until it is repealed.

VIII. PREPAYMENT

A. A parcel owner may prepay the Special Tax for Facilities on his/her parcel by satisfying the following formula:

Amount of Prepayment = Maximum Special Tax for Facilities X Building Area X Remaining Years

(Where Remaining Years = fiscal year 2039-40 less the most recent fiscal year for which the Special Tax for Facilities has been paid)

B. A parcel owner may not prepay the Special Tax for Services on his/her parcel.

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IX. MANNER OF COLLECTION

The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes.

X. EXEMPTION FOR VERY LOW INCOME PERSONS

The Special Tax shall not apply to any property owned by any person or persons whose combined total personal income, from all sources, for the previous calendar year, does not exceed that level which shall constitute “very low income,” as may be established by resolution of the City Council. Any property owner claiming the exemption shall be required to demonstrate his/her entitlement thereto annually by submitting an application and supporting documentation to the City Manager or his/her designee in the manner and at the time established in regulations and/or guidelines promulgated by the City Manager, subject to review by the City Council in its discretion. Such applications shall be on forms provided by the City Manager or his/her designee, and shall provide and/or be accompanied by such information as the City Manager shall require including, but not limited to, federal income tax returns and W-2 forms.

XI. BUILDING AREA DEFINED

A. Building means any structure having a roof supported by columns or by walls and designated for the shelter or housing of any person, chattel or property of any kind. The word “building” includes the word “structure.”

B. Structure means anything constructed or erected, the use of which requires location on the ground or attachment to something having location on the ground.

C. Building Area means the total gross horizontal areas of all floors, including usable basements and cellars, below the roof and within the outer surface of the main walls of buildings (or the center lines of party walls separating such buildings or portions thereof) or within lines drawn parallel to and two feet within the roof line of any building or portion thereof without walls (which includes, notwithstanding subsection (3) of this definition, the area of all porches), and including pedestrian access walkways or corridors, but excluding the following:

(1) Areas used for off-street parking spaces or loading berths, and driveways and maneuvering aisles relating thereto;

(2) Areas which are outdoor or semi-outdoor areas included as part of the building to provide a pleasant and healthful environment for the occupants thereof and the neighborhood in which the building is located. This exempted area is limited to stoops, balconies and to natural ground areas, terraces, pools and patios which are landscaped and developed

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for active or passive recreational use, and which are accessible for us by occupants of the building; and

(3) Arcades, porticoes and similar open areas which are located at or near street level, are accessible to the general public, and are not designed or used as sales, display, storage, service or production areas.

XII. INTERPRETATION OF SPECIAL TAX FORMULA

Interpretations may be made by resolution of the City Council for the purpose of clarifying any vagueness or ambiguity in the provisions hereof.

ATTACHMENT 5

ATTACHMENT 6

City Attorney's Analysis for Pools:

$22,500,000 Bond and $980,000/Year Services Tax [493 words] This measure would authorize the issuance of $22,500,000 of bonds, a special tax to repay those bonds and pay for pool maintenance and aquatics programs, and permit expenditure of those funds. This measure will pass or fail as a whole. Bonds Bond proceeds would be used to construct an approximately 2250 square foot replacement indoor multipurpose warm pool at West Campus and associated facilities and locker rooms; renovate the existing pool and associated facilities at West Campus (and possibly consolidate the locker rooms); to construct an all-purpose, 25-meter size pool with wading area, locker rooms and associated facilities at King School; and renovate the existing outdoor pools, locker rooms and associated facilities at Willard School. Special Tax The special tax authorized by this measure would be levied on the square footage of improvements to real property throughout City of Berkeley Community Facilities District No. 2 (Berkeley Pools) (“CFD No. 2”). CFD No. 2 includes the entire City of Berkeley. The tax would have two parts. Bond Repayment The first part of the tax would be used to secure and repay the bond. Once the bond is repaid this part of the special tax will terminate. This part of the special tax would be levied for a period of 30 years, from fiscal year 2011 through fiscal year 2040, at a maximum rate of $0.0258 per square foot of improvements. Aquatic Programs/Pools Operation and Maintenance The second part of the special tax would pay for the anticipated gap between current funding and the funding necessary to continue to support existing pool maintenance and aquatics programs, and for enhanced aquatics programs. This tax would be levied at an initial rate of $0.0039 per square foot of improvements in 2010 and $0.0126 in 2012, subject to annual increases by the greater of the increase in the cost of living for the immediate San Francisco Bay Area or per capita personal income growth in California. Appropriations Limit This measure would establish an appropriations limit of $3,500,000 for CFD No. 2, to allow the proceeds of the special tax to be spent.

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Financial Implications The year after the first bonds are issued, the tax rate required to meet the estimated debt service and fund aquatic programs and pools operation would be $0.0297 per square foot. This rate is projected to peak at approximately $0.0423 in 2040, and average $0.0369 per square foot during the 30-year issue. The average cost in 2010 dollars for an average size 1900 square foot home until the bonds are repaid, including the tax for maintenance and aquatic programs, is estimated as follows:

Square Feet Annual Tax First year Average

(Residential) 1,900 $56.43 $ 70.11

(Commercial) 10,000 $297.00 $369.00 After the bonds are repaid in FY 2040 the tax rate in 2010 dollars for maintenance and aquatic programs would be $0.0126, subject to an annual inflation adjustment, yielding annual costs as shown below:

Square Feet Annual Tax (Residential) 1,900 $ 23.94 (Commercial) 10,000 $126.00

from: phil kamlarz, city manager submitted by: lisa ... · 3/9/2010 · office of the city manager...

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