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HomeMy WebLinkAbout97-61 - Establishing a Community Facilities DistrictRESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING THE INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO LEVY SPECIAL TAXES THEREIN FOR THE CITY OF COSTA MESA COMMUNITY FACILITIES DISTRICT NO. 97-1 (SUNFLOWER AVENUE UTILITY UNDERGROUNDING). THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS: WHEREAS, under the Mello -Roos Community Facilities Act of 1982, as amended (the "Act"), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at section 53311, of the California Government Code, this Council is authorized to establish a community facilities district and to act as the legislative body for a community facilities district; and WHEREAS, the City Council, having received petitions from the owners of not less than 10% of the area of land proposed to be included in the proposed community facilities district, now desires to proceed with the establishment of a community facilities district in order to finance costs of public infrastructure necessary or incident to development in the Sunflower Avenue area of the City. NOW, THEREFORE, BE IT FURTHER RESOLVED AND ORDERED as follows: 1. Authority. The City Council proposes to conduct proceedings to establish a community facilities district pursuant to the Act. 2. Name of CFD. The name proposed for the community facilities district is City of Costa Mesa Community Facilities District No. 97-1 (Sunflower Avenue Utility Undergrounding, the "CFD"). 3. Boundaries Described. The proposed boundaries of the CFD are as shown on the map of it on file with the City Clerk, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said map of the boundaries of the CFD in the office of the City Recorder within fifteen days of the date of adoption of this Resolution, but in any event at least fifteen days prior to the public hearing specified in paragraph 10 below. 4. Facilities. The type of public facilities proposed to be financed by the CFD and pursuant to the Act shall consist of those listed as facilities on Exhibit 1 hereto and hereby incorporated herein (the "Facilities"). The Council hereby finds and determines that the public interest will not be served by allowing the property owners in the CFD to enter into a contract in accordance with Section 53329.5(a) of the Act. Notwithstanding the foregoing, the Council, on behalf of CFD, may enter into one or more contracts directly with any of the property owners with respect to the construction and/or acquisition of the any portion of the Facilities. The City Manager is hereby authorized and directed to enter into joint community facilities agreements with any entity that will own or operate any of the Facilities, as may be necessary to comply with the provisions of Section 53316.2(a) and (b) of the Act. The Council hereby declares that such joint agreements will be beneficial to residents in the area of the CFD. 5. Special Tax. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities and/or the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and/or acquire the Facilities, a special tax (the "Special Tax") sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as this Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit 2 attached hereto and hereby incorporated herein. This Council hereby finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD. 6. Exempt Property. Except as may otherwise be provided by law or by the rate and method of apportionment of the Special Tax for the CFD, all lands owned by any public entity, including the United States, the State of California and/or the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax to be made to cover the costs and expenses of the Facilities and the CFD. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, this Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the rate and method of apportionment of the Special Tax. 7. Election. The levy of the Special Tax shall be subject to the approval of the qualified electors of the CFD at a special election. The proposed voting procedure shall be by mailed or hand -delivered ballot among the landowners in the proposed CFD, with each owner having one vote for each acre or portion of an acre such owner owns in the CFD. The Council hereby determines that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring within the CFD. 8. Special Tax Bonds. It is the intention of this Council, acting as the legislative body for the CFD, to cause bonds of the City to be issued for the CFD pursuant to the Act to finance in whole or in part the construction and/or acquisition of the Facilities. The bonds shall be in the aggregate principal amount of not to exceed $2,800,000, shall be issued in such series and bear interest payable semi-annually or in such other manner as this Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. 9. CFD Report. The City Administrator, as the officer having charge and control of the Facilities in and for the CFD, or the designee of such official, is hereby directed to study said proposed Facilities and to make, or cause to be made, and file with the City Clerk a report in writing, (the "CFD Report") presenting the following: (a) A description of the Facilities by type which will be required to adequately meet the needs of the CFD. (b) An estimate of the fair and reasonable cost of the Facilities including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. The CFD Report shall be made a part of the record of the public hearing specified below. 10. Public Hearing. On August 18, 1997, at 6:30 p.m., or as soon as possible thereafter, in the Council Chambers, City Hall, 77 Fair Drive, Costa Mesa, California, be, and the same are hereby appointed and fixed as the time and place when and where the City Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD and the levy of the Special Tax. 11 . Notice of Hearing. The City Clerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper published in the area of the CFD. The publication shall be completed at least seven days before the date of the public hearing in Section 10. The City Clerk shall also cause notice of the hearing to be given to each property owner within the CFD by first class mail, postage prepaid, to each such owner's addresses as it appears on the most recent tax records of the City or as otherwise known to the City Clerk to be correct. Such mailed notice shall be completed not less than fifteen days before the date of the public hearing. Each of the notices shall be substantially in the form specified in Section 53322 of the Act, with the form summarizing the provisions hereof hereby specifically approved. PASSED AND ADOPTED at the regular meeting of the City Council of the City of Costa Mesa, State of California, on this 7th day of July, 1997. ATTEST: 1• Deputy City CleQof the City of Costa Mesa Mayor of the City of Mesa STATE OF CALIFORNIA) % PROVED AS TO FORM COUNTY OF ORANGE ) ss CITY OF COSTA MESA) CITY ATTORNEY I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Resolution No. q7- l ( was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the 7th day of July, 1997, by the following roll call vote: AYES: -6uFrA) I�IoiJA���rJ, e2'1Lk5onj1 NOES: too tie ABSENT: 1JOtjE CbWAAJC SOM ER5 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Costa Mesa this 8th day of July, 1997. T. Deputy Cit Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa EXHIBIT I CITY OF COSTA MESA Community Facilities District No. 97-1 (Sunflower Avenue Utility Undergrounding) DESCRIPTION OF FACILITIES TO BE FINANCED BY THE CFD Undergrounding of existing overhead utilities including trenching, back -filling, installation of conduit, vaults, transformers, transmission and distribution facilities, street lights and all appurtenant work including service conversions in and within the vicinity of Sunflower Avenue from 875 feet west of the centerline of Harbor Boulevard to the centerline of Fairview Road. EXHIBIT 2 CITY OF COSTA MESA Community Facilities District No. 97-1 (Sunflower Avenue Utility Undergrounding) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A special tax shall be levied on each Parcel of land within Community Facilities District No. 97-1 (Sunflower Avenue Utility Undergrounding) of the City of Costa Mesa, County of Orange (the "District"), and collected according to the special tax liability determined by the City of Costa Mesa (the "City") through the application of the following procedures. All of the property within the District, unless otherwise exempted by law or the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below. Unless otherwise indicated, all capitalized terms shall have the meanings set forth in the section of this Rate and Method of Apportionment entitled "Definitions"'. It is intended that all special taxes applicable to Parcels which remain unpaid be collected in the manner and at the same time as ordinary ad valorem property taxes of the City and that special taxes so levied will be subject to the same penalties and procedures, sale and Hen priority in case of delinquency as is provided for ad valorem taxes of the City, subject to any covenant for judicial foreclosure with respect hereto in any Fiscal Agent Agreement of the City relating to any Bond issued by the District. Notwithstanding the foregoing, the City may elect to collect the special taxes at such other times or in such other manner as necessary or convenient to satisfy the obligations of the District as provided in the formation documents. `L-k.YLI-IL`1 SPECIAL TAX The maximum primary special tax, for the estin, ated cost of construction and related expenses of the facilities, that may be levied upon formation of CFD No. 97-1 (Sunflower Avenue Utility Undergrounding) shall not exceed the followinsz sums for each parcel represented by the assessor's Parcel Number listed below: PARCEL NO. AMOUNT 139-031-67 S 439,108.00 140-041-24 S 700,000.00 140-041-38 S 283,276.00 140-041-49 S 400,000.00 140-041-60 S 550,546.00 140-041-61 S 237,070.00 A secondary special tax may be levied for any Supplemental Expenses which may occur including any federal, state, or local taxes. The secondary special tax shall only be levied on assessor parcel numbers, 139-031-67, 140-041-38, 140-041-60, and 140-041-61 in the same proportion as the maximum primary special tax as shown above. No secondary special tax shall be levied on assessor parcel numbers 140-041-24 or 140-4149. This secondary special tax will be levied as provided in the formation documents.