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HomeMy WebLinkAbout91-62 - Authorize Levy of Special Taxes Pursuant to Mello-Roos Act of 1982_,4183 RESOLUTICN NO. 91-62 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH CITY OF COSTA MESA CU44UNITY FACILITIES DISTRICT NO. 91-1 (PLAZA TOWER PUBLIC IMPROVEMENTS) AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES PURSUANT TO THE MELLO-BOOS COMMUNITY FACILITIES ACT OF 1982. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLi.OVS: WHEREAS, under the Mello -Roos Cmmwnity 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 Goverment Code, this City Council may act as the legislative body for proposed community facilities districts and is empowered with the authority to establish cmmmnity facilities districts; and WHEREAS, this City Council has received a petition (the "Petition') requesting that this City Council establish a community facilities district under the Act, and WHEREAS, on February 1, 1988, the City Council of the City of Costa Mesa adopted Resolution No. 88-10 which declared that "staff shall condi- tion discretionary approvals of new developments as follows: Developer shall pay a maxumnn trip generation fee of $668.00 per trip end for all traffic improvements. This fee shall be reduced by federal, state, county, JPAs, or City contributions in accordance with Council's adopted policy statenent. It may also be satisfied by the developer entering assessment or Mello Roos districts or development agreements providing for the equiva- lent monies"; and WHEREAS, establishment of Cammnity Facilities District No. 91-1 ' complies with the intent and purpose of Resolution No. 88-10; and WHEREAS, there has been presented to this City Council, a form of Letter Agreerent dated June 3, 1991, (the "Agreement"), whereby the land- owner within the proposed oamn pity facilities district is willing to advance certain funds necessary to fomn the district as more particularly therein provided; and WHEREAS, this City Council, with the aid of City staff, has reviewed the Petition and the Agreement and found them to be in proper form and now desires to proceed with the establishment of a cmmwnity facilities dis- trict under the Pct; NOW, THEREFORE, IT IS HEREBY ORDERED as follows: 1. This City Council proposes to conduct proceedings to establish a comwnity facilities district pursuant to the Pct. 2. This City council hereby acknowledges receipt of a petition (the "Petition") of 600 Anton Boulevard Associates, a California General Partnership, to form a community facilities district (the 'Dis- trict") comprised of real property within the City on which is located an office building known as "Plaza Tower". ' 3. This City Council hereby approves the Agreement and authorizes and directs the City Finance Director to expend the amount referred to therein in the manner specified in the Agreement. 4. The name proposed for the District is City of Costa Mesa Crnmunity Facilities District No. 91-1 (Plaza Tower Public Improvements). - t.k!189 5. The proposed boundaries of the District are as shown on the map of the District 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 District in the office of the County Recorder with fifteen (15) days of the date of adoption of this Resolution. 6. The type of public facilities proposed to be financed by the Dis- ' tric and pursuant to the Act shall consist of those items listed as facilities (the "Facilities") on Exhibit "A" attached hereto, which exhibit is by this reference incorporated herein. 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 recordation of a continuing lien against all nonexempt real property in the District, is intended to be levied annually within the District, and collected by the City Finance Director in the manner as the City shall direct. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit "B" attached hereto, which exhibit is by this reference incorporated herein. 8. It is the intention of this City Council, acting as the legisla- tive body for the District, to cause bonds of the City to be issued for the District pursuant to the Pct, to finance the Facil- ities in whole or in part. Said bonds shall be in the aggregate principal amount not to exceed $3,200,000.00, shall bear interest payable semi-annually or in such other manner as this City 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. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the District at a special electron. The proposed voting procedure shall be by mailed or hand -delivered ballot among the landowners in said proposed Dis- trict, with each owner having one vote for each acre or portion of an acre such owner owns in the District. 10. Except as may otherwise be provided by law or by the rate and method of apportionment of the special taxes set forth in Exhibit "B", all lands owned by any public entity, including the United States, the State of California and/or the City, or any depart- ments 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. In the event that a portion of the property within the District shall become exempt for any reason, wholly or in part, from the levy of the special tax described in Exhibit "B", this City Council will, on behalf of the District, increase the levy to the extent necessary upon the remaining property within the District which is not exempt in order to yield the required debt service payments and other annual expenses of the District, if any, subject to any maximum special tax that may be levied. 11. The Director of Public Services of the City of Costa Mesa, as the officer having charge and control of the Facilities in and for the District, 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, presenting the following: (a) A description of the Facilities by type which will be required to adequately meet the needs of the District. � tdi90 (b) An estimate of the fair and reasonable cost of financing the Facilities, including the cost of acquisition of lands, rights-of-way and easements, any physical facili- ties required in conjunction therewith and incidental expenses in connection with said financing, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. Said report shall be made a part of the record of the public hearing provided for below. 12. Monday, August 19, 1991, at 6:30 p.m., in the regular meeting place of this City Council, in the City Council Chambers, City Hall, 77 Fair Drive, Costa Mesa, California, be, and the same are appointed and fixed as the time and place when and where this City Council, as legislative body for the District, will conduct a public hearing on establishment of the District and consider and finally determine whether the public interest, convenience, and necessity require formation of the District and the levy of said special tax. 13. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper pub- lished in the area of the District. The publication of said notice shall be completed at least seven (7) days before the date herein set for said hearing. Said notice shall be substantially in the form of Exhibit "C" attached hereto. 14. The law firm of Jones Hall Hill & White, a Professional Law Corpor- ation, is hereby designated as bond counsel to the City in connec- tion with the formation of the District and the special tax bonds expected to be issued by the City for the District. The City Manager, or his designee, is hereby authorized to execute and deliver an agreement with said firm for services in connection with the District and said bonds in the form on file with the City Clerk. 15. Hod Gunn Associates, Incorporated, is hereby designated as finanr Ing consultant to the City in connection with establishment of the District and the issuance of special tax bonds of the City for the District. The City Manager is hereby authorized to execute and deliver an agreement with said firm for its services in connection with the District in the form on file with the City Clerk. 16. The firm of Willdan Associates is hereby designated as District Engineer and Special Tax consultant to the City in connection with the District. The City Manager is hereby authorized and directed to execute and deliver an agreement with said firm for its services In connection with the District in the form on file with the City Clerk. PASSED AND ADOPTED this 15th day of July, 1991. ATTEST: City Clerk of the City of Cost sa Mayor of the City of Costa Mesa 11 I 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. 91-62 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof, held on the 15th day of July, 1991, by the following roll call vote: ' AYES: COUNCIL MEMBERS: Hornbuckle, Genis, Buffs, 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 16th day of July, 1991. City Clerk and ex-32ficio Clerk of City Council of the City of Costa 7 u _A191 -tU19z EXHIBIT "A" 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 Street intersection improvements. 2. Anton Boulevard Street Improvements (between Bristol Street and Avenue of the Arts). 3. Reimbursement of contribution to 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 inci- dental expenses. 3. Administrative fees of the City, the Costa Mesa Public Financing Authority, and any bond fiscal agent related to the District and the bonds. l Resolution No. 91-62 Page 1 of 1 EXHIBIT B PROPOSED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX INCLUDING ESTIMATED MAXIMUM ANNUAL AMOUNT OF SPECIAL TAX CITY OF COSTA MESA COMMUNITY FACILITIES DISTRICT NO. 91.1 (PLAZA TONER PUBLIC IMPROVEMENTS) ' A Special Tax applicable to each assessor's parcel or portion thereof in the District shall he 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 bs law, shall be taxed to the extent and in the manner herein prosided The Special Tax is to be levied each Fiscal Year in an amount sufficient to pay Debt Senace 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 in any delinquencies in the Special Taxes levied in the prior reseal Year DEFINITIONS 'Acre"or'Acreuge" 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 (ti) 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 Resolut>_on No. 91-62 Page 1 of 7 X93 494 (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 Admi nnranve 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 ns 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, dnv 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 am way related to administration of the District 'Annual Cosa" for any Fiscal Year, equals the sum of (i) Debt Service for such Fiscal Year, (n) 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) anv 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 Bondi"means the City of Costa Mesa Community Facilities District No 91-1 (Plaza Tower Public Improvements) Special Tax Bonds. "City" means the City of Costa Mesa, California. Deter Semice" for each Fiscal Year, means the total annual principal and interest payable on the Bonds during the calendar vedr commencing on the January 1 of such Fiscal ,year, less investment earnings on the Reserve Fund not required to he set aside pursuant to the Fiscal Agent Agreement for Resolution No. 91-62 Page 2 of 7 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 "Fiscal Agent Agreement" means the agreement by and between City and the Fiscal Agent approved pursuant to a Resolution of Issuance 1 "Fiscal Year" means the period starting on July 1 and ending the following June 30 in any year in which the Bonds are outstanding 'iblatununt Special Tai" means sixty-seven thousand seven hundred fort% dollars (567,740) per Acre, (baud on 43,560 square feet per Acre), per Fiscal Year "Original Parcel" means a Parcel as it existed at the time of the adoption bt the Citv Council of the Cnv 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 anv County of Orange Assessor's parcel that is within the boundaries of the District, baud on the equalized ta\ rolls of the County of Orange as of March I in the prior Fiscal Year "Reseme 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 Cnv 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 -Rous Community Facilities Act tit 1982 (California Government Code, Section 53311 et seq.). Resolution No. 91-62 Page 3 of 7 1x 95 -414b6 Special Tax" means any tax levied within the District pursuant to the Mello - Roos Community Facilities Act of 1982 (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 assessors parcel. 'Tarahle Parcel" means any Parcel that is not a Tax -Exempt Parcel ' "Tat -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 pan of a Parcel, the area devoted to such uses shall be included in the area of the Parcel Notenh- 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 11. 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 111. APPORTIONMENT, LEVY AND COLLECTION Or SPECIAL TAXES A Immediately following the classification of Parcels as prosided in Section Il 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, Resolution No. 91-62 Page 4 of 7 i . '197 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 to excess of the Maximum Special Tax Rate of sixty-seven thousand seven hundred forty dollars ($67,740) 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 IV. 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 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 $344,999.82 for the Fiscal Year A The determination of Acreage for purposes of the Special Tar (see Section 1, Definitions) must be made, as follows - Original Parcel Acreage = 5 093 Successor Parcel Acreage = 4.000 Parcel 1 LO )0 Parcel 2 5 000 Successor Parcel 1 Acreage = 4.000 x 5 093 (4 000 + 1 000) Rasolutr.on No. 91-62 Page 5 of 7 = 4 074 Acres %019G Successor Parcel 2 Acreage = 1.000 x 5 093 (4.000 + 1 000) = 1 019 Acres Total 5 094 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 I accomplished as follows Annual Costs = $344,999 82 Total Acres = 5 093 Special Tax per Acre Required = 5 67,740 00 (344,999 82 - 5 093) Special Tax - Successor Parcel 1 = 4.074 Acres x $67.740 00/Acre = $275,97276 Special Tax - Successor Parcel 2 = 1 019 Acres x $67,740 00/Acre = S 69,027.0fi Total = 5344,999.82 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 muluph-mg the result by the principal amount of anv Bonds then outstanding Round the result up to the nearest five thousand dollars Resolution No. 91-62 Page 6 of 7 - J'bVs 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 anv Deduct the result from the total of the amounts determined in Subsections A, B and C above 1 The result determined in Subsection 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 admim%- trative fees of the Cite 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 Cnv with respect to the Parcel for which prepayment is received,and the obligation of that Parcel to pav the Special Taxes shall cease Resolution No. 91-62 Page 7 of 7 I x:4:11 Y 1[N NOTICE OF PUBLIC REARING City of Costa Mesa Community Facilities District No. 91-1 (Plaza Tower Public Improvements) Notice is hereby given that on July 16, 1991, the City Council of the City of Costa ' Mesa adopted a Resolution entitled "A Resolution of Intention To Establish A Community Facilities District And To Authorize The Levy Of Special Taxes Pursuant To The Mello - Roos Community Facilities Act Of 1982". Pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act"), the City Council hereby gives notice as follows: A. The text of said Resolution of Intention is as follows: RESOLVED by the City Council of the City of Costa Mesa (the "City") that: WHF,REAS, under the Mello -Roos Community Facilities Act of 1982, as amended (the "Act'), Chapter 2 6 of Part 1 of Division 2 of Title 6, commencing at Section 63311, of the California Government Code, this City Council may act as the legislative body for proposed community facilities districts and is empowered with the authority to establish community facilities districts; and WHEREAS, this City Council has received a petition (the "Petition') requesting that this City Council establish a community facilities district under the Act; and WHEREAS, there has been presented to this City Council a form of Letter Agreement, dated June 3, 1991, (the "Agreement'), whereby the landowner within the proposed community facilities district is willing to advance certain funds necessary to form the district, as more particularly therein provided, and WHEREAS, this City Council, with the aid of City staff, has reviewed the Petition ' and the Agreement and found them to be in proper form and now desires to proceed with the establishment of a community facilities district under the Act. 4` :17i• 71 1' :171. 71: 1.171' 1 1. This City Council proposes to conduct proceedings to establish a community facilities district pursuant to the Act. • 2. This City Council hereby acknowledges receipt of a petition (the "Petition') of 600 Anton Boulevard Associates, A California General Partnership to form a community facilities district (the "District") comprised of real property within the City on which is located an office building known as "Plaza Tower". 3. This City Council hereby approves the Agreement and authorizes and directs the City Finance Director to expend the amount referred to therein in the manner specified in the Agreement i Resolution No. 91-62 Rage 1 of 4 4. The name proposed for the District is City of Costa Mesa Community Facilities District No. 91-1 (Plaza Tower Public Improvements). 6. The proposed boundaries of the District are as shown on the map of the District 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 District in the office of the County Recorder within fifteen days of the date of adoption of this Resolution ' 6. The type of public facilities proposed to be financed by the District and pursuant to the Act shall consist of those items hated as facilities (the "Facilities") on Exhibit A hereto, which exhibit is by this reference incorporated herein 7. Except to the extent that funds are otherwise available to the District 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, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing hen against all non-exempt real property in the District, is intended to be levied annually within the District, and collected by the City Finance Director in the manner as the City shall direct. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto, which exhibit is by this reference incorporated herein. L 8. It is the intention of this City Council acting as the legislative body for the District to cause bonds of the City to be issued for the District pursuant to the Act to finance in whole or in part the Facilities Said bonds shall be in the aggregate principal amount of not to exceed $&,009,800 200 000, shall bear interest payable semi-annually or in such other manner as this City 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 The levy of said proposed special tax shall be subject to the approval of the qualified electors of the District at a special election. The proposed voting procedure shall be by mailed or hand -delivered ballot among the landowners in said proposed District, with each owner having one vote for each acre or portion of an acre such owner owns in the District 10. Except as may otherwise be provided by law or by the rate and method of apportionment of the special taxes set forth in Exhibit B, 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. In the event that a portion of the property within the District shall become for any reason exempt, wholly or in part, from the levy of the special tax described in Exhibit B, this City Council will, on behalf of the District, increase the levy to the extent necessary upon the remaining property within the District which is not exempt in order to yield the required debt service payments and other annual expenses of the District, if any, subject to any maximum special tax that may be levied. 11 The Director of Public Services of the City of Costa Mesa, as the officer having charge and control of the Facilities in and for the District, is hereby directed to study said Resolution No. 91-62 Page 2 of 4 KTAY :A ' proposed Facilities and to make, or cause to be made, and file with the City Clerk a report in writing, presenting the following - (a) A description of the Facilities by type which will be required to adequately meet the needs of the District. (b) An estimate of the fair and reasonable cost of financing 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 I connection with said financing, including the costs of the proposed bond financing and all other related costs as provided in Section 63346 3 of the Act. Said report shall be made a part of the record of the public hearing provided for below. 12 Monday, August 19, 1991, at 6:30 p.m, in the regular meeting place of this City Council in the City 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 this City Council, as legislative body for the District, will conduct a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special tax 13 The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven (7) days before the date herein set for said hearing Said notice shall be substantially in the form of Exhibit C hereteto said Resolution of Intention 14. The law firm of Jones Hall Hill & White, A Professional Law Corporation, is hereby designated as bond counsel to the City in connection with the formation of the District and the special tax bonds expected to be issued by the City for the District. The ' City Manager or his designee is hereby authorized to execute and deliver an agreement with said firm for services in connection with the District and said bonds in the form on file with the City Clerk. lb Rod Gunn Associates, Inc. 3s hereby designated as financing consultant to the City in connection with the establishment of the District and the issuance of special tax bonds of the City for the District. The City Manager is hereby authorized to execute and deliver an. agreement with said firm for its services in connection with the District in the form on file with the City Clerk u Pesolution No. 91-62 Page 3 of 4 16. The firm of Willdan Associates is hereby designated as District Engineer and Special Tax consultant to the City in connection with the District. The City Manager is hereby authorized and directed to execute and deliver an agreement with said firm for its services in connection with the District in form on file with the City Clerk. B. The time and place established under said Resolution for the public hearing required under the Act are Monday, August 19, 1991, at the Hour of 6:30 p.m., in the City Council Chambers, City Hall 77 Fair Drive, Costa Mesa, California. ' C. At said hearing, the testimony of all interested persons or taxpayers for or against the establishment of the district, the extent of the district or the furnishing of the specified types of facilities will be heard. Any person interested may file a protest in writing as provided in Section 63323 of the Act. if the owners of one-half or more of the area of land in the territory proposed to be included in the district file written protests against the establishment of the district and the protests are not withdrawn to reduce the value of the protests to less than a majority, the City Council shall take no further action to establish the district for a period of one year from the date of said hearing, and if the majority protests of the landowners are only against the furnishing of a type or types of facilities within the district, or against levying a specified special tax, those types of facilities or the specified special tax will be eliminated form the proceedings to form the district. 1 D. The proposed voting procedure shall be by special mail or hand -delivered ballot to the property owners within the territory proposed to be included in the district Dated: July 16, 1991 /s/ Eileen P. Phmnev City Clerk of the City of Costa Mesa Resolution No. 91-62 Page 4 of 4 03