11/7/2006 - Council Minutes - CC Minutes Adj
APPROVED BY THE CITY COUNCIL ON NOVEMBER 14, 2006
CITY COUNCIL MINUTES ORANGE, CALIFORNIA
OF AN ADJOURNED REGULAR MEETING November 7, 2006
The City Council ofthe City of Orange, California convened on November 7,2006 at 9:00 a.m.
in an Adjourned Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange,
California.
9:00 A.M. SESSION
1. OPENING
1.2 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by City Manager John Sibley
1.3 ROLL CALL
PRESENT - Smith, Murphy, Cavecche, Dumitru
ABSENT - None
1.4 PRESENTATIONS! ANNOUNCEMENTS! INTRODUCTIONS - None.
Mayor Murphy announced the Veterans Day Celebration on Saturday, November 11 th;
and the Pitcher Park Persimmon Party on Sunday, November 12th.
2. PUBLIC COMMENTS - None.
3. CONSENT CALENDAR - None.
4. REPORTS FROM MAYOR MURPHY - None.
5. REPORTS FROM COUNCILMEMBERS -None.
6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.
CITY COUNCIL MINUTES
November 7,2006
7. ADMINISTRATIVE REPORTS
7.1 Report from the Finance Director - Proceedings for the Establishment of a
Community Facilities District to be known as the City of Orange Community
Facilities District No. 06-1 (Del Rio Public Improvements) (TllOO.0.2 CFD-06-1)
SUMMARY: North Orange Del Rio, LLC, a California limited liability company, the
developer of a 597 unit residential development project commonly referred to as the Del
Rio project, has asked the City to form a community facilities district pursuant to the
Mello-Roos Community Facilities District Act of 1982 and to authorize the issuance and
sale of bonds in the maximum aggregate principal amount not to exceed $47,000,000, for
the purpose of financing the cost of public improvements proposed to be constructed as
part of the Del Rio project.
In order to commence the Community Facilities District ("CFD") formation process, the
City entered into professional service contracts for the Financial Advisor, Bond Counsel
and the Special Tax Consultant back on December 14,2004. The next step in this process
is to adopt resolutions evidencing the City's intention to form the CFD and to incur bonded
indebtedness and to set a hearing to determine whether the public interest, convenience and
necessity require the issuance of bonds of the City for the CFD.
RESOLUTION NO. 10129
A Resolution of the City Council of the City of Orange declaring its intention to establish a
Community Facilities District and to authorize the levy of special taxes therein - Del Rio.
RESOLUTION NO. 10130
A Resolution of the City Council of the City of Orange declaring its intention to incur
bonded indebtedness of the proposed City of Orange Community Facilities District No. 06-
I (Del Rio Public Improvements)
Discussion
Mayor pro tern Cavecche stated that she has been trying to get special assessment districts
eliminated, but she understands this proposed district is different than the current
Landscape Maintenance Districts in the City as this district will actually assist with water
run off for public streets and public facilities.
She also expressed concern about the 2% maximum increase allowed under this proposal;
and wanted to ensure that the maximum allowed increase would be only enough to cover
actual costs.
David DeBerry, City Attorney, explained that the increase would only apply if costs
increase; that it will never increase over what the actual costs are; and that if no index is
established, any future increase would have to be voted on by the homeowners.
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CITY COUNCIL MINUTES
November 7,2006
Mayor Murphy indicated that the 2% does at least establish a cap for any increase.
Mayor pro tern Cavecche stated she will support this proposal only because it is different
from other landscape maintenance districts; and will accept the 2% maximum increase
because an index needs to be established.
MOTION - Smith
SECOND - Dumitru
AYES - Smith, Murphy, Cavecche, Dumitru
ACTION: Moved to 1) Adopt Resolution No. 10129; 2) Adopt Resolution No. 10130;
and 3) Set Tuesday, December 12,2006, at 4:30 p.m. as the time for a public hearing of
the City Council to determine whether the public interest, convenience and necessity
require the issuance of bonds of the City for the CFD and direct the City Clerk to cause
notice of said public hearing to be given by publication in a newspaper of general
circulation in accordance with the requirements of the law.
FISCAL IMP ACT: The total costs of these public improvements will be funded from the
issuance of Mello Roos bonds which will be paid back by the homeowners in this CFD.
There will be no cost to the General Fund.
8. REPORTS FROM CITY MANAGER - None.
9. LEGAL AFFAIRS - None.
10. ADJOURNMENT - The City Council adjourned at 9:15 a.m. The next Regular
Council meeting is scheduled for November 14, 2006.
Declaration of City Clerk, Mary E. Murphy, declaring posting of the City Council Agenda of an
Adjourned Regular Meeting of November 7,2006 at Orange Civic Center kiosk, Police Facility at 1107
North Batavia, and Shaffer Park; all of said locations being in the City of Orange and freely accessible
to members of the public at least 72 hours before commencement of said Adjourned Regular Meeting.
MAR HY
CITY CLERK
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MAYO
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