HomeMy WebLinkAbout91-69 - Formation of Community Facilities District No. 91-1 (Plaza Tower Public Improvements),•224
RESOLUTION NO. 91-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA IAESA, CALIFORNIA, AUTHORIZING FORMATION OF
COSTA MESA COMMUNITY FACILITIES DISTRICT NO. 91-1
(PLAZA TOWER PUBLIC IMPROVEMENTS), AUTHORIZING THE
LEVY OF A SPECIAL TAX WITHIN THE DISTRICT, PRELIM-
INARILY ESTABLISHING AN APPROPRIATIONS LIMIT FOR
THE DISTRICT, AND SUBMITTING LEVY OF THE SPECIAL
TAX AND ESTABLISHMENT OF THE APPROPRIATIONS LIMIT
To THE QUALIFIED ELECTORS OF THE DISTRICT.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS
FOLLOWS:
WHEREAS, on July 15, 1991, this City Council adopted Resolution No.
91-62, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA
MESA, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH CITY OF COSTA MESA
COMMUNITY FACILITIES DISTRICT NO. 91-1 (PLAZA TOWER PUBLIC IMPROVEMENTS)
AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES PURSUANT TO 'THE MELLO-ROOS
COMMUNITY FACILITIES ACT OF 1982" (the "Resolution of Intention"); and
WHEREAS, the Resolution of Intention, incorporating a map of the
proposed boundaries of City of Costa Mesa Community Facilities District
No. 91-1 (the "District") and stating the facilities to be financed, the
cost of providing such facilities, and the rate and method of apportionment
of the special tax to be levied within the District to pay the principal
and interest on bonds proposed to be issued with respect to the District,
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, on this date, this City Council held a noticed public hearing
as required by the Mello -Roos Community Facilities Act of 1982 as amended
(the "Act") and the Resolution of Intention, relative to the proposed
formation of the District; and
WHEREAS, at said hearing, all interested persons desiring to be heard
on all matters pertaining to the formation and extent of the District, the
facilities to be provided therein, arca 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 City Council
on said matters before it, including a report by the Director of Public
Works (the "Report") as to the facilities to be provided through the Dis-
trict and the costs thereof, a copy of which is on file with the City
Clerk, and this City Council, at the conclusion of said hearing, was fully
advised with respect to the premises; and
WHEREAS, copies of the Report, a list of facilities to be financed,
and rate and method of apportionment of the special taxes have been deliv-
ered to the landowners within the District prior to the date hereof; and
WHEREAS, written protests with respect to formation of the District,
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 (508) or more of the registered voters residing within the
territory of the District, or property owners of one-half (1/2) or more of
the area of land within the District and not exempt from the special tax;
and
WHEREAS, the special tax proposed to be levied in the district to pay
for the proposed facilities to be provided therein and as set forth in
Exhibit "B" hereto, has not been eliminated by protest of fifty percent
(508) or more of the registered voters residing within the territory of the
District or the owners of one-half (1/2) or more of the area of land within
the District and not exempt frau the special tax;
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NOW, THEREFORE, IT IS HEREBY ORDERED AS FOLLOWS:
1. The foregoing recitals are true and correct.
2. The proposed special tax to be levied within the District has not
been precluded by majority protest pursuant to Section 53324 of
the Act.
3. All prior proceedings taken by this City Council in connection
F with establishment of the District and levy of the special tax
■i■` have been duly considered and are hereby found and determined to
be valid and in conformity with the Act.
4. The community facilities district designated "City of Costa Mesa
Community Facilities District No. 91-1 (Plaza Tower Public Improve-
ments)" is hereby established pursuant to the Act.
5. The boundaries of the District, as set forth in the map of the
District heretofore recorded in the Orange County Recorder's
Office in Book 56 on Page 38 of Maps of Assessment and Community
Facilities Districts, are hereby approved, are incorporated herein
by reference, and shall be the boundaries of the District.
6. The type of public facilities proposed to be financed by the Dis-
trict and pursuant to the Act shall consist of those items listed
as facilities on Exhibit "A" attached hereto and by this reference
incorprated herein (the "Facilities").
7. Except to the extent that funds are otherwise available to the
District to pay for the Facilities and/or the principal and inter-
est as it becomes due on bonds of the District issued to finance
the Facilities, a special tax sufficient to pay the costs thereof,
secured by a continuing lien against all nonexempt real property
in the District, is intended to be levied annually within the
District, and collected as hereafter directed by the City Council.
The proposed rate and method of apportionment of the special tax
wrong the parcels of real property within the District, in suffi-
cient detail to allow each landowner within the proposed District
to estimate the probable maximum amount such owner will have to
pay, are described in Exhibit "B" attached hereto and by this
reference incorporated herein.
8. It is hereby found and determined that the Facilities are neces-
sary to meet increased demands placed upon local agencies as the
result of development occurring in the District.
9. The Director of Finance of the City of Costa Mesa, 77 Fair Drive,
Costa Mesa, California 92626, telephone number (714) 754-5243,
is the officer for the City who will be responsible for prepar-
ing annually, a current roll of special tax levy obligations by
assessor parcel number and who will be responsible for estimating
future special tax levies pursuant to Section 53340.2 of the Act.
10. Upon recordation of a notice of special tax lien pursuant to
Section 3114.5 of the California Streets and Highways Code, a
continuing lien to secure each levy of the special tax shall
attach to all nonexempt real property in the District 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. In accordance with Section 53325.7 of the Act, the annual appro-
priations limit of the District, as defined by subdivision (h),
Section 8 of Article XIII B of the California Constitution, is
hereby preliminarily established at $20,000,000.00 and said appro-
priations limit shall be submitted to the voters of the District
as hereafter provided. The proposition establishing said annual
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appropriations limit shall become effective if approved by the
qualified electors voting thereon and shall be adjusted in accor-
dance with the applicable provisions of Section 53325.7 of the Act.
12. 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 District at an election, the time,
place, and conditions of which shall be as specified by a separate
resolution of this City Council.
PASSED AND ADOPTED this 19th day of August, 1991.
ATTEST:
6D
City Clerk of the City of QMta Mesa
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and fore-
going Resolution No. 91-69 was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof, held on the 19th day of
August, 1991, by the following roll call vote:
AYES: COUNCIL MEMBERS: Hornbuckle, Genis, Buffa, Humphrey,
Erickson
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal
of the City of Costa Mesa this 20th day of August, 1991,
V L�
City Clerk and ex -officio Clerk/Jr the
City Council of the City of CosVa Mesa
n
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DESCRIPTION OF FACILITIES TO BE FINANCED
BY THE DISTRICT
City of Costa Mesa
Community Facilities District No. 91.1
(Plaza Tower Public Improvements)
FACILITIES:
1. Anton Boulevard/Bristol Boulevard intersection improvements.
2. Anton Boulevard Street Improvements (between Bristol Boulevard and
Avenue of the Arts).
3. Reimbursement of contribution of construction of Fire Station No. 6.
4. Reimbursement of costs of I-405 access study relating to certain of the above
and to certain other I.405 improvements.
OTHER
1. Costs of engineering, design, planning and coordination related to the
above -listed facilities.
2. Bond related expenses, including bond counsel and all other incidental
expenses.
3. Administrative fees of the City, the Costa Mesa Public Financing Authority
and the Bond fiscal agent related to the District and the Bonds.
A-]
Exhibit "A"
Resolution No. 91-69
Page 1 of 1
227
t,
223
. J 1
EXHIBIT B
PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECLU- TAX
INCLUDING ESTIMATED MAXIMUM ANNUAL AMOUNT OF SPECIAL TAX
CITY OF COSTA MESA
COMMUNITY FACILITIES DISTRICT NO. 91.1
(PLAZA TOWER PUBLIC IMPROVEMENTS)
A Special Tax applicable to each assessor's parcel or portion thereof in the District
shall be levied and collected according to the tax liability determined by the Finance
Director of the City of Costa Mesa, through the application of the rate and method of
apportionment of the Special Tax set forth below. All of the property in the District,
unless exempted by law, shall be taxed to the extent and in the manner herein
provided.
The Special Tax is to be levied each Fiscal Year in an amount sufficient to pay Debt
Service on the Bonds, all Administrative Fees or Expenses, all payments required
under the Fiscal Agent Agreement or any supplement or amendment to the Fiscal
Agent Agreement, plus an amount equal to any delinquencies in the Special Taxes
levied in the prior Fiscal Year.
DEFINITIONS
'Acre" or 'Acreage" means, (i) with respect to an Original Parcel, the number
of acres within the Original Parcel as specified in the Boundary Map of the
District attached hereto and by this reference made a part hereof; and (ii)
with respect to a Successor Parcel, the number of acres within the Successor
Parcel determined as follows:
(a) determine the acreage of each Successor Parcel by reference
to a parcel map, tract map or other map as recorded in the
County of Orange Assessor's Office, or otherwise as deter-
mined by the City Engineer, and exclude from such acreage
any portion of a Successor Parcel which, in itself, would
constitute a Tax -Exempt Parcel (because of its use as public
right-of-way, etc.);
(b) add together the acreage as determined in (a) for all Successor
Parcels created from the Original Parcel; and
am
J
Exhibit "B"
Resolution No. 91-69
Page 1 of rl
j"A229
(c) - for each Successor Parcel, divide the acreage of the Successor
Parcel determined in (a) above, by the acreage for all Succes-
sor Parcels to the same Original Parcel determined in (b)
above, and multiply the result by the acreage for such Original
Parcel, with the result being the Acreage for such Successor
Parcel.
'Act" means the Mello -Roos Community Facilities Act of 1982, as amended,
Sections 53311 and following of the California Government Code.
'Administrative Fees or Expenses" means any or all of the following: the fees
and expenses of the Fiscal Agent (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, an allocable share of
the salaries of the City staff directly related thereto, a proportionate amount
of City general administrative overhead related thereto, any amounts required
to be rebated to the federal government pursuant to the Internal Revenue
Code of 1986, any amounts paid by the City from its general funds with
respect to the District, and all other costs and expenses 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 case of the City, in any
way related to administration of the District.
Annual Costs" for any Fiscal Year, equals the sum of (i) Debt Service for
such Fiscal Year; (ii) Administrative Fees or Expenses for such Fiscal year;
(iii) the amount, if any, necessary to replenish the Reserve Fund for the
Bonds, plus an amount equal to delinquencies in the payment of Special
Taxes levied in the previous Fiscal Year; and (iv) any other payment required
under the Fiscal Agent Agreement and any supplement or amendment thereto
for such Fiscal Year.
"Bond Fund" means the fund of that name created under the Fiscal Agent
Agreement.
"Bonds" means the City of Costa Mesa Community Facilities District No. 9 1 -1
(Plaza Tower Public Improvements) Special Tax Bonds.
"City" means the City of Costa Mesa, California.
"Debt Service" for each Fiscal Year, means the total annual principal and
interest payable on the Bonds during the calendar year commencing on the
January I of such Fiscal year, less investment earnings on the Reserve Fund
not required to be set aside pursuant to the Fiscal Agent Agreement for
F -W
Exhibit "B"
Resolution Nc. 91-69
Page 2 of 7
-`1*30
purposes of rebate to the federal government pursuant to the Internal
Revenue Code of 1986, and less any capitalized interest and any other
amounts remaining in the Bond Fund held under the Fiscal Agent Agreement
from the previous Fiscal Year.
'District" means the City of Costa Mesa Community Facilities District No. 91-1
(Plaza Tower Public Improvements).
"Finance Director" means the Finance Director of the City or his or her
designee.
Fiscal Agent" means Fiscal Agent under the Fiscal Agent Agreement. JJ
Fiscal Agent Agreement" means the agreement by and between City and the
Fiscal Agent approved pursuant to a Resolution of Issuance.
"Fiscal Year" means the period starting on July 1 and ending the following
June 30 in any year in which the Bonds are outstanding.
'Maximum Special Tax" means one hundred eighty-three thousand five
hundred eighty-five dollars and thirty-two cents (8183,585.32) per Acre, (based
on 43,560 square feet per Acre), per Fiscal Year.
"Original Parcel" means a Parcel as it existed at the time of the adoption b}'
the City Council of the City of the Resolution of Formation and as described
in the map of Proposed Boundaries for the District by this reference made a
part hereof.
"Parcel" means any County of Orange Assessor's parcel that is within the
boundaries of the District, based on the equalized tax rolls of the County of
Orange'as of March 1 in the prior Fiscal Year.
"Reserve Fund" means the fund of that name created under the Fiscal Agent
Agreement.
"Resolution of Formation" means the resolution of the City Council of the City
adopted under the Act to establish the District.
"Resolution of Issuance" means the resolution adopted by the City Council of
the City, acting as the legislative body of the District, authorizing the issuance
of the Bonds in accordance with the Mello -Roos Community Facilities Act of
1982 (California Government Code, Section 53311 et seq.).
I=
Exhibit "e"
Resolution No. 91-69
Page 3 of 7
u
Special Tax" means any tax levied within the District pursuant to the Mello -
Roos Community Facilities Act of 1952 (California Government Code,
Section 53311 et seq. and this Rate and Method of Apportionment of Special
Tax).
"Successor Parcel" means a Parcel created by subdivision, lot line adjustment
or parcel map from an Original Parcel that results in a different assessor's
parcel.
'Taxable Parcel" means any Parcel that is not a Tax -Exempt Parcel.
'Tax -Exempt Parcel" means (i) any Parcel owned by a governmental entity, or
irrevocably offered for dedication to a governmental entity, (ii) any Parcel
which constitutes public right-of-way or which is encumbered by an unmanned
utility easement, making impractical its utilization for other than the purpose
set forth in the easement, or (iii) any Parcel assigned a zero value by the
County of Orange Assessor. Where open spaces, access ways (other than
streets), private parks, common areas, etc., are part of a Parcel, the area
devoted to such uses shall be included in the area of the Parcel. Nomith-
standing the foregoing, a Parcel acquired by a governmental entity after the
adoption of the Resolution of Formation by means of negotiated transaction,
or by gift or devise, or by eminent domain proceedings, shall be a Taxable
Parcel.
H. CLASSIFICATION OF PARCELS
As the beginning of each Fiscal Year, using the definitions above, the Finance
Director shall:
A. cause each Parcel to be classified as a Tax -Exempt Parcel or a
Taxable Parcel; and
B. for each Taxable Parcel determine the Acreage of the Parcel.
Ill. APPORTIONMENT, LEVY AND COLLECTION OF SPECIAL TAXES
A. Immediately following the classification of Parcels as provided in
Section 11 above, the Finance Director shall cause the Special Taxes
to be apportioned, levied and billed to the property owner in each
Fiscal Year as follows:
determine the Annual Costs for such Fiscal Year;
9K
Exhibit "B"
Resolution No. 91-69
Page 4 of 7
4 1.002
IV.
2. for Tax -Exempt Parcels, no Special Tax shall be apportioned
or levied; and
3. for Taxable Parcels, Special Taxes shall be apportioned and
levied upon, each Parcel of Taxable Property at a uniform rate,
not in excess of the Maximum Special Tax Rate of one
hundred eighty-three thousand five hundred eighty-five dollars
and thirty-two cents ($183,585.32) per Acre, per year, sufficient
to raise an amount equal to the Annual Costs for such Fiscal
Year.
B. Prepare an invoice to the property owner(s) for each Taxable Parcel
and request payment for such Fiscal year.
EXAMPLE OF THE APPLICATION OF THE SPECIAL TAX
An example of the application of the special tax for two situations follows.
This example is provided to give guidance in the administration of the
District, and in no way modifies the terms of Sections 1, 2, 3 and 5.
1. Assume the area within the District boundary, as shown on the
Boundary Map of the District, is 5.093 acres. Assume a parcel map
is recorded creating two parcels and dedicating Plaza Tower Road,
the two parcels are 4.0 acres and 1.0 acre, respectively, for a total of
5.0 acres. Further assume that the Annual Costs are $935,000.03 for
the Fiscal Year.
A. The determination of Acreage for purposes of the Special Tax
(see Section 1, Definitions) must be made, as follows:
Original Parcel Acreage = 5.093
Successor Parcel Acreage = 4.000 Parcel 1
1.00 Parcell
5.000
Successor Parcel 1 Acreage = _ 4,000 x 5.093
(4.000 + 1.000)
B5
Exhibit "B"
Resolution No. 91-69
Page 5 of 7
= 4.074 Acres
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7
- t U 933
Successor Parcel 2 Acreage = _1.000 x 5.093
(4.000 + 1.000)
Total
= 1.019 Acres
,5,Q93 Acres
The computation of Successor Parcel Acreage is rounded to
the nearest one thousandth of an Acre.
B. The determination of the Special Tax for each Parcel can be
accomplished as follows:
Annual Costs = $935,000.03
Total Acres = 5.093
Special Tax per
Acre Required = $183,585.32 (935,000 =. 5.093)
Special Tax -
Successor Parcel 1 = 4.074 Acres x $183,585.32/Acre
= 5747,926.59
Special Tax -
Successor Parcel 2 = 1.019 Acres x $183,58532/Acre
_ $187.073.44
Total = $935,000.03
V. PREPAYMENT OF SPECIAL TAXES
The Special Taxes for a Parcel may be prepaid and the obligation of the
Parcel satisfied provided that there are no delinquent Special Taxes with
respect to such Parcel at the time of prepayment, prepayment is made not less
than 120 days prior to an interest payment date on the bonds and the
following is applied:
A. The prepayment amount is computed by dividing the Maximum
Special Tax for the Parcel by the total of the Maximum Special Taxes
for all Taxable Parcels, and multiplying the result by the principal
amount of any Bonds then outstanding. Round the result up to the
nearest five thousand dollars.
EM
Exhibit "B"
Resolution No. 91-69
Page 6 of 7
.,.;.'231
B. The prepayment penalty is computed by multiplying the prepayment
amount by the applicable redemption premium, if any, on the Bonds,
plus an amount determined by the Finance Director to be the
difference between the carrying cost of the Bonds and the amount
derived from the reinvestment of the prepaid Special Taxes pending
their disposition in redeeming the Bonds. Add that penalty to the
prepayment amount determined in Subsection A above.
C. The administrative fees of the City are as determined by the Finance
Director and include the costs of computation of the prepayment, the
costs of calling Bonds and the costs of recording any notices to
evidence the prepayment and the redemption. Add these costs to the
amounts determined in Subsections A and B above.
D. Any reserve fund credit is computed by comparing the prepayment
amount determined in Subsection A above to the outstanding
principal amount of the Bonds. Apply that percentage to the amount
in the Reserve Fund, if any. Deduct the result from the total of the
amounts determined in Subsections A, B and C above.
E. The result determined in Suhsection D above is the amount needed
to prepay a Special Tax obligation. The amount shall be placed in
the Bond Fund and used to retire Bonds; provided that the adminis-
trative fees of the City as determined in Subsection C above shall be
retained by the City. Upon prepayment, a Notice of Cessation of
Special Tax shall be recorded by the City with respect to the Parcel
for which prepayment is received,and the obligation of that Parcel to
pay the Special Taxes shall cease.
IN
Exhibit "B"
Pesolution No. 91-69
Paye 7 of 7
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