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HomeMy WebLinkAbout97-73 - Form Community Facilities Dist. No. 97-1 (Sunflower Ave Utility Undergrounding)RESOLUTION NO. QrL 7.5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, TO FORM COMMUNITY FACILITIES DISTRICT NO. 97-1 (SUNFLOWER AVENUE UTILITY UNDERGROUNDING), AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN, AND PRELIMINARILY ESTABLISHING AN APPROPRIATIONS LIMIT THEREFOR. THE CITY COUNCIL (the "Council") OF THE CITY OF COSTA MESA (the "City") DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, on July 7, 1997, this Council adopted Resolution No. 97-61 (the "Resolution of Intention") entitled "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 "CFD"), pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311 of the California Government Code (the "Act"); and WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the CFD and stating the facilities to be provided, the cost of providing such facilities, and the rate and method of apportionment of the special tax to be levied within the CFD to pay the principal and interest on bonds proposed to be issued, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and WHEREAS, the facilities stated in the Resolution of Intention are as set forth in Exhibit A attached hereto and hereby made a part hereof; and WHEREAS, on August 18, 1997, this Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD; and WHEREAS, at said hearing, all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, the facilities to be provided therein, and the levy of said special tax, were heard and a full and fair hearing was held; and WHEREAS, at said hearing, evidence was presented to this Council on said matters before it, including a report caused to be prepared by the Engineer of Work (the "Report") as to the facilities to be provided through the CFD and the costs thereof, a copy of which is on file with the City Clerk, and this Council at the conclusion of said hearing is fully advised in the premises; and WHEREAS, written protests with respect to the formation of the CFD, the furnishing of specified types of facilities, and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the CFD, or property owners of one-half 0 /2) or more of the area of land within the CFD and not exempt from the proposed special tax; and WHEREAS, the special tax proposed to be levied in the CFD to pay for the proposed facilities to be provided therein, as set forth in Exhibit B attached hereto, has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the CFD, or the owners of one-half (1 /2) or more of the area of land within the CFD and not exempt from the special tax; NOW, THEREFORE, IT IS HEREBY ORDERED AS FOLLOWS: 1. Recitals Correct. The foregoing recitals are true and correct. 2. No Majority Protest. The proposed special tax to be levied within the CFD has not been precluded by majority protest pursuant to Section 53324 of the Act. 3. Prior Proceedings Valid. All prior proceedings taken by this City Council in connection with the establishment of the CFD and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act. 4. Name of CFD. The community facilities district designated "Community Facilities District No. 97-1 (Sunflower Avenue Utility Underground ing)" of the City is hereby established pursuant to the Act. 5. Boundaries of CFD. The boundaries of the CFD as set forth in the map of the CFD heretofore recorded in the Orange County Recorder's Office on July 30, 1997, in Book 74 at Page 44 as Instrument No. 19970361343 of Maps of Assessment and Community Facilities Districts, are hereby approved, and are incorporated herein by reference and shall be the boundaries of the CFD. 6. Description of Facilities. The type of public facilities proposed to be financed by the CFD and the pursuant to the Act shall consist of those items listed as facilities in Exhibit A attached hereto and by this reference incorporated herein (the "Facilities"). 7. Special Tax. a. 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 of the CFD issued to finance the Facilities, a special tax (the "Special Tax") sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all nonexempt real property in the CFD, is intended to be levied annually within the CFD, and collected in the same manner as ordinance ad valorem property taxes or in such other manner as may be prescribed by this Council. b. 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 shown in Exhibit B attached hereto and hereby incorporated herein. C. In the case of any Special Tax to pay for the Facilities and to be levied against any parcel used for private residential purposes: (i) the maximum special tax shall be specified as a dollar amount which shall be calculated and thereby established not later than the date on which the parcel is first subject to the tax because of its use for private residential purposes and which amount shall not be increased over time over two percent per year; (ii) the tax year after which no further Special Tax subject to this sentence shall be levied or collected shall be as set forth in Exhibit B attached hereto; and (iii) under no circumstances will the Special Tax levied against any parcel subject to this sentence be increased as a consequence of delinquency or default by the owner of any other parcel within the CFD by more than ten percent (10%). For the purposes hereof, a parcel is used for "private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. 8. Increased Demands. It is hereby found and determined that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring in the CFD. 9. Responsible Official. The Assistant City Engineer of the City of Costa Mesa, 77 Fair Drive, Costa Mesa, California 92626, telephone number (714) 754-5173, is the officer of the City who will be responsible for preparing annually a current roll of special tax levy obligations by assessor parcel numbers and who will be responsible for estimating future special tax levies pursuant to the Act. 10. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the CFD and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases. 11. Appropriations Limit. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the CFD is hereby preliminarily established at $2,800,000.00 and said appropriations limit shall be submitted to the voters of the CFD as hereafter provided. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act. 12. Election. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the CFD at an election the time, place, and conditions of which election shall be as specified by a separate resolution of this Council. 13. Effective Date. This Resolution shall take effect upon its adoption. PASSED AND ADOPTED this 18th day of August, 1997. ATTEST: Deputy Cit lerk of the City of Costa Mesa n.,-. . 62:�2 Uai o f to City of Costa Mesa MG��'C Q(i2-rZr'►-� APPROVED AS TO FORM � J `lL ¢ R-13-97_ rITY ATTORNEY STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) 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. 4'1-113 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the 18th day of August, 1997, by the following roll call vote: AYES: MoNAKAN, ERiLk 5-0A)) I-oc✓An), aomcg5 NOES: MOA)e ABSENT: Lt F rA IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 19th day of August, 1997. i. Deputy Citt Clerk and ex -officio Clerk of the City C unci) of the City of Costa Mesa A�_� CITY OF COSTA MESA Community Facilities District No. 97-1 (Sunflower Avenue Utility Undergrounding) DESCRIPTION OF FACILITIES The Facilities shown below are proposed to be financed by Community Facilities District No. 97-1 (Sunflower Avenue Utility Undergrounding) (the "CFD") of the City of Costa Mesa (the "City"). The Facilities shall include the attributable costs of engineering, design, planning and coordination, together with the expenses related to the issuance and sale of any special tax bonds, including underwriters' discount, appraisals, reserve fund, capitalized interest, bond counsel, special tax consultant, bond and official statement printing and all other expenses incidental thereto. The Facilities shall be constructed, whether or not acquired in their completed states, pursuant to plans and specifications approved by the City and the officials thereof, including the City Engineering. Undergrounding of existing overhead utilities including trenching, backfilling, installation of conduct, 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 center line of Fairview Road. - Exhibit A Page 1 Wfut-3#1 CITY OF COSTA MESA Community Facilities District No. 97-1 (Sunflower Avenue Utility Undergrounding) PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX INCLUDING ESTIMATED MAXIMUM ANNUAL AMOUNT OF SPECIAL TAX PART v RATE AND N ETHOD OF APPORTIONMENT 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 "District"), and collected according to the special tax liability determined by the City oofOrange Co to 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 lien 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. Exhibit B Page 1 City of Costa Mesa ,rune 25, 1997 Community Facilities District No. 97-1 (Sunflower Avenue Utilities Unde undin Draft No. 4 MAXIMUM SPECIAL TAX The maximum Primary special tax, for the estimated 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 following sums for each parcel represented by the Assessor's Parcel Number listed below: PARCEL NO. AMOLM 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. DEFWMONS Administrative Expenses means any or all of the following: fees and expenses of the Fiscal Agent or Trustee, as applicable (including any fees or expenses of its counsel), the expenses of the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of its counsel, any fees of the County related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related to thereto and a portionate amount of the City or the Fiscal Agent incurred in connection with the discharge of their respective duties under the Fiscal Agent Agreement and, in the rase of the City, in any way related to administration of the District. City means the City of Costa Mesa. County means the County of Orange. District means Community Facilities District No. 97-1 (Sunflower Avenue Utility Undergrounding) afthe City of Costa Mesa, County of orange. TSseal Agent means the Fiscal Agent designated under the Fiscal Agent Agreement. Exhibit B Page 2 City of Costa Mesa June 25, 1997 Community Facilities District No. 97-1 (Sunflower Avenue Utilities Undgg=nding) Draft No 4 Fiscal Agent Agreement means the agreement by that name approved by the Resolution of Issuance, and as it may be amended and/or supplemented from time to time. Fiscal Year means the period starting on July I and ending the following June 30. Land Area means the measure of Taxable Property for a Parcel, in square feet of land. Parcel means any County Assessor's parcel or portion thereof that is within the boundaries of the District based on the equalized tax rolls of the County. Responsible Pxrty is any firm, entity, person or persons who the City may hire or appoint from time to time to* compute the levy of the special taxes within the District. Supplemental Expenses are expenses relating to the project which arise after the formation of the District, such as any additional construction costs of the facilities and related expenses, including any federal, state, or local taxes that may be incurred for the facilities. Taxable Property is all real property within the boundaries of the District which is not exempt from the special tax pursuant to law at the time of District formation, except that the following property shall not be taxed: any acres of land owned, conveyed or irrevocably offered for dedication to and accepted by a public agency, or land which is a public right of way or which is an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement. Exhibit B Page 3