RES-7898 Intent to Establish Community Facilities District No. 91-2RESOLUTION NO. 7898
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE 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
Community
Serrano Facilities District No.
91-2 Heights
Public Improvements)WHEREAS, under the Mello-Roos Community
Facilities Act of 1982, as amended (the "Act"), Chapter 2.5 qf Part 1
of Division 2 of Title 5, commencing at Section 53311,
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, on October 15, 1991, this
City Council adopted Resolution No. 7889, which, among other
matters, authorized and directed City staff to take all actions necessary
to present to this City Council all proceedings necessary
to establish a community facilities district under the Act
for the Serrano
Heights development; and WHEREAS, this City Council, with the
aid of its desires to proceed with the
establishment of a facilities district under the Act
as provided
below.
staff, now community NOW, THEREFORE, BE IT RESOLVED by the City
Council of the City of
Orange as follows:Section I. This City Council proposes
to conduct proceedings to establish a community facilities district
for the Serrano Heights development (the "District") pursuant
to the Act.Section II. This City Council hereby
acknowledges receipt of the petition of Woodcrest Development, Inc. ("
Woodcrest"), to form the District. Under the petition, Woodcrest has
agreed to make advances as necessary to pay any costs of the City
to form the District, and it is the intent of this City
Council to reimburse any such advances, without interest, solely from
the proceeds of any bonds issued
for the District.section III. The name proposed for the District
is City of Orange Community Facilities District No.
91-2 (
Section IV. 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.
Section V. The type of public facilities proposed to be
financed by the District and pursuant to the Act shall consist of
those items listed as facilities (the "Facilities") on Exhibit A
hereto, which exhibit is by this reference incorporated herein.
Section VI. 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 lien
against all non-exempt real property in the District, is
intended to be levied annually within the District, and collected in
the same manner as ordinary ad valorem property taxes. 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.Section VII. 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 $40,000,000,
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 30 years from the date of the
issuance
thereof. -Section VIII. 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.Section IX. 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 2-Resolution
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.
Section X. .The Director of Public Works of the City, 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.
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 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.Section XI. Tuesday, December 17, 1991, at 3:00 p.m.,
in the regular meeting place of this City Council, in the
City Council chambers, at 300 East Chapman Avenue, Orange, 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. 'Section XII. 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 days before the date herein set for said hearing. Said notice
shall be substantially in the form of Exhibit
C
hereto.3-Resolution
ADOPTED this 12th day of November, 1991.
ATTEST:
t~~r (]if-n4';?
4H/City Cler of t~ C' of
Orange I hereby certify that the foregoing Resolution was duly
and regularly adopted by the City Council of the City of Orange at
a regular meeting thereof held on the 12th day of November, 1991,
by the following
vote: ----
AYES:
NOES:
ABSENT:
COUNCIL MEMBERS: BARRERA, MAYOR BEYER, COONTZ, SPURGEON
COUNCIL MEMBERS: NONE
COUNCIL MEMBERS: STEINER
Lk-?"/,~.......City Cler of ~ ~ty of Orange
4-
Resolution No. 7898
EXHIBIT A
DESCRIPTION OF
BY
FACILITIES TO
THE DISTRICT
BE FINANCED
City of Orange
Community Facilities District No. 91-
2 Serrano Heights Public
Improvements)
FACILITIES:It is expected that the District will finance all or
a portion of the costs of the
following:1. Serrano Avenue and Related Improvements: Construction
of Serrano Avenue wi thin and in the vicinity of the
District.Construction of water, sanitary sewer and storm
drain improvements, equestrian trails and landscaping adjacent and/or
in the vicinity of such road
construction.The foregoing shall include costs related to
mobilization,site preparation (including removal of existing
improvements),grading, curb, gutter, sidewalk, paving, slope and
erosion control, street lights, signalization and signage, striping,
walls and fences, grading of pump station site and provision of
site improvements including water lines and access routes, planning
and civil engineering, soils engineering, blueprints, fees
and permits, cost of repairs for City acceptance and costs of
any other facilities or appurtenances incident to or necessitated
by such
construction.2. West Loop Road, Park, Water Reservoir and
Related Improvements: Construction of a loop road off of Serrano
Avenue within the boundaries of the District. Construction of
water,sani tary sewer, storm drain improvements, equestrian trails
and landscaping adjacent and/or in .the vicinity of such
road construction. Grading of land for a park and a water
reservoir within or in the vicinity of the District and other
site preparation costs, and construction thereon of
related improvements including but not limited to any water lines
incident to such
reservoir.The foregoing shall include costs related to
mobilization,site preparation (including removal of existing
improvements),grading, curb, gutter, sidewalk, paving, slope and
erosion control, street lights, signalization and signage, striping,
walls and fences, planning and civil engineering, soils
engineering,blueprints, fees and permits, cost of repairs for City
acceptance and costs of any other facilities or appurtenances incident to
or necessitated by such
construction.
A-l Resolution
3. East Collector Road and Related Improvements:
Construction of a collector road off of Serrano Avenue within and
in the vicinity of the District. Construction of water, sanitary
sewer, storm drain improvements and landscaping adjacent and/or in
the vicinity of such road construction.
The foregoing shall include costs related to mobilization,
si te preparation (including removal of existing improvements),
grading, curb, gutter, sidewalk, paving, slope and erosion
control, street lights, signalization and signage, striping, walls
and fences, planning and civil engineering, soils engineering,
blueprints, fees and permits, cost of repairs for City acceptance
and costs of any other facilities or appurtenances incident to or
necessitated by such construction.
4. Water Facilities: Acquisition, construction and/or
installation of the following improvements, including any costs
related to mobilization, site preparation, site acquisition,
grading, planning and civil engineering, soils engineering,
blueprints, fees and permits and costs of any other' facilities or
appurtenances incident to or necessitated by such construction:
a) 1100 zone water tank within or in the vicinity of
the District.
b) 885 to 1100 zone pump station located within or in
the vicinity of the District.
c) 736 to 885 zone pump station located west of the
District.
d) Two water tanks, one 885 zone and one 1100 zone
generally located west of the District.
5. Transportation System Improvements: Acquisition,
construction and/or installation of'the following improvements,
including any costs related to mobilization, site preparation,
site acquisition, grading, planning and civil engineering, soils
engineering, blueprints, fees and permits and costs of any other
facilities or appurtenances incident to or necessitated by such
construction:
a)Arterial Street Improvements:Nohl Ranch Road -Santiago
to E.C.L.; Santiago Canyon Road - Hewes to Jamboree;Wanda - Collins
to Walnut; Hewes - Bond to Santiago Canyon Road; and Chapman - Crawford
to Orange Park Boulevard.b) Freeway Ramp and Bridge
Improvements: Lorna Street Bridge; La Veta at Freeway
55 Bridge Widening; and Fairhaven at Freeway 55 - Bridge
widening.c) Signalization: Chapman/Trails End; Jamboree/
Fort Road; Santiago/Robinhood; Santiago/Villa Real;
Santiago A-2 Resolution No. 7898
Canyon/Windes; Meats/Featherhill; La Veta/prospect; La
veta/Yorba; La Veta/Esplanade; Collins/Handy; Canyon
View/Outrider; santiago Canyon/Orange Park; Chapman/Orange
Park; Serrano/Yellowstone; Prospect/Bond;
Fairhaven/Esplanade; and Santiago/Amapola.
d) Other Transportation System Improvements: Street
Scan - Audio Visual. Surveillance System; Bus/parking Bays;Signal
System Master Increase Capacity; and other Operational.
Improvements.6.
Fire Protection Facilities Improvements: Acquisi tion,construction
and/or instal.lation of the following improvements,including
any costs related to mobil.ization, site preparation,site
acquisition, grading, planning and civil engineering, soils engineering,
blueprints, fees and permits and costs of any other facilities
or appurtenances incident to or necessitated by such construction:
a)
Acquisition of a site for and construction of a new fire
station in the general vicinity of the District.b)
Acquisition of equipment and fire fighting apparatus
with an estimated useful life of five years or longer
incident to the operation of a fire station, including but
not limited to a pumper truck and related equipment and paramedic
equipment.7.
Other Capital Facilities: Rehabilitation, remodeling and improvement
of the City's Civic Center, including but not limited to
the space in the civic Center vacated by the police department,including
any costs related to planning and engineering, blue prints,
asbestos removal, fees and permits and costs of any work or
appurtenances incident to or necessitated thereby.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 of Orange and any Bond
fiscal agent related to the District and the Bonds.
A-
3 Resolution No.
EXHIBIT B
I'
Pr
7~~~:~-",., _ -RATE
ANDMETHOD OF APPORTIONMENTFOR THE
CITY
OF ORANGE COMMUNl1Y FACILITIES DISTRlcr NO.
91-2 SERRANO HEIGHTS
PUBLIC IMPRO''EMENTS)A Special
Tax (the "Special Tax") shall
be levied and collected in the City of Orange ('the City") Community Facilities District No. 9t.2 (
Serrano Heights Public Improvements) ('CFD No. 91-2") each Fiscal Year, in
an amount detemiined by the Finance Director of the City or his designee through the application
of the procedures descnbed below. All of the real property in CFD No. 91-2,
unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to
the extent and in the manner herein provided.A. DEF1NITIONS The terms used
herein shall
have the following meanings:Act" means the Mello-Roos
Community Facilities Act of 1982, as amended, being Chapter 2.5, Part
1, Division2 of Title 5 of the Government Code of the State of California.Administrative Expenses" means
any
or all of the following: the reasonable fees and expenses of any fiscal
agent (including any fees or expenses of its counsel) employed by the City in
connection with any bonds of CFD No. 91-2, the reasonable expenses of the City
in carrying out its duties under any fiscal agent agreement with respect to such bonds, including,
but not limited to, the levying and collection of the Special Tax, any City
charges and including the reasonable fees and expenses of its counsel,an allocable share
of tbe salaries of City staff directly related thereto and a proportionate amount of
City general administrative overhead related thereto, and all other costs
and expenses of the City or any fiscal agent incurred in connection with the discharge
of their respective duties under any fiScal agent agreement with respect to such
bonds and, in the case of the City, in any way related to the administration of CFD
No. 91-2.Apartment" means
a residential dwelling unit located in a building which all residential dwelling
units are made available to the general public for rental.Assessor's
Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor'
s Parcel number.Assessor's
Parcel Map" means an official map of the Assessor of the County of Orange designating
parcels by Assessor's Parcel number.
Assigned Special Tax" means the Special Tax for each Land Use Class, as
determined by reference to Table I of Section C below, such amounts to be increased
each Fiscal Year as provided in Section C below.
Backup Special Tax" means for Fiscal Year 1993-94, an amount equal to $0.654
per Assessor Parcel square foot of land for Taxable Property described in Oasses
1 through 7 as specified in Table 1 below. The Backup Special Tax shall be
increased each year to 102% of the amount in effect in the prior Fiscal
Year.City" means the City of Orange,
California.Council" means the City Council of the City, acting as the legislative body of
CFD No.
91-2.County" means the County
of Orange.Developed Property" means all Assessor's Parcels for which a building
permit was issued prior to March 1 of the Fiscal Year preceding the Fiscal Year for
which the Special Tax is
being levied.Fiscal Year" means the period starting any July 1 and ending on the
following
June 30.Flat. means a single-story unit in a building of two or more units,
which units share a common wall and/or ceiling
and/or floors.Borne Owners Association" means any association of property owners
in CFD No.91-2 who own a common undivided interest in property
in CFD No. 91-2.Land Use Class. means any of the classes
listed in Table I below.Maximum Special Tax" means the maximum
Special Tax, determined in accordance with Section C, that can be levied in CFD No. 91-
2 in any Fiscal Year on Undeveloped Property and each Land
Use
Class of Developed Property, as applicable.Non-Residential" means Developed Property
that has been developed for uses other than residential use, or Deveioped Property
that is not Single
Family Detached Unit,Townhome, Flat or Apartment.Prepayment Date" means a date that is at least
60 days prior to an interest payment
CFD 1991.2
Paee 3
Proportionately" or "Proportioned" shall mean for Developed Property that the ratio
of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's
Parcels of Developed Property, "Proportionately" or "Proportioned" shall mean for
Undeveloped Property that the ratio of the actual Special Tax levy to the Maximum
Special Tax for Undeveloped Property is equal for all Assessor's Parcels of
Undeveloped Property.
Public: Property" means any property within the boundaries of CFD No. 91-2
owned by the federal government, the State of California, any local government or
other governmental
agency.Residential Unit" means a dwelling unit intended for residential
use.Single Family Detached Unit" means an Assessor's Parcel of Developed
Property which contains one Residential
Unit.Special Tax" means the Special Tax to be levied in each Fiscal Year on each
taxable Assessor's Parcel of Developed Property and Undeveloped Property to fund
the Special Tax
Requirement.Special Tax Requirement" means that amount required in any Fiscal Year to
pay:1) debt service and other periodic costs on the bonds or other indebtedness of
cm No. 91-2 due in the calendar year commencing in such Fiscal Year, (2) the
cost of acquisition or construction of authorized facilities of CFD No. 91-
2, (3) the Administrative Expenses, (4) costs of authorized services of CFD No.
91-2, (5) any amount required to replenish any reserve fund established
in association with bonds issued for CFD No. 91-2, (6) an amount
equal to the estimated delinquencies expected in payment of the Special Tax, as determined
by the City Finance Director or his designee, and (7) the costs of
remarketing, credit enhancement and liquidity facility fees (including such fees for instruments that serve as
the basis of a reserve fund related to any
indebtedness in lieu of cash),Taxable Property" means all Assessor's Parcels located in
CFD No. 91-2 which are not exempt from the Special Tax pursuant
to law or Section E below.Town Home" means a two story unit in a building of
two or more units,
which units share a common walls.Undeveloped Property" means all
Taxable
em 1991-
Z Paee
4 B. ASSIGNMENT TO LAND USE
CATEGORIES For each Fiscal Year, all Taxable Property shall be classified as Developed
Property or Undeveloped Property as of March 1 of each Fiscal Year and shall be subject
to the Special Tax in accordance with the rate and method of apportionment
descnbed in Sections C and D below. For purposes of determining the applicable
Assigned Special Tax for each Assessor's Parcel of Developed Property, all
Developed Property shall be assigned by the City or its designee as of March 1 of each
Fiscal Year to one of the Land Use Qasses designated in Table I
below.Residential Units shall be assigned to Land Use Classes 1 through 7 based on
the structure type and the square footage of the Residential Unit. The square
footage of a structure assigned to Land Use Classes 1 through 7, by the City or itS
designee,shall be calculated by the City or its designee exclusive of garages, common areas
and other structures which are not used as living spaces. Non-
residential development shall be assigned to
Class 8.C. MAXIMUM SPECIAL
TAX RATES 1.
Developed Property The Maximum Special Tax for any Fiscal Year for each Assessor'
s Parcel classified as Developed Property shall be the greater of (i) the
amount derived by multiplying the square footage applicable to the Assessor's Parcel
by the Backup Special Tax, or (ii) the amount derived by application
of the applicable Assigned
Special Tax.The Assigned Special Tax for each Land Use Class is shown below
in
Table I.
ern 1991.Z
PaJe 5
TABLE I
Assigned Special Taxes for
Developed Property of CFD No. 91-
2 w ,'.'~ ......~..".~~< . ... . '." ."....-~- .....'~.~"',.~,,,.,...,..;...,'y. FA~
sjiri~d$~~~:liF.fil~f~ :.~~~~~~~'~M~;':f.~~~~i ....~7r~~~;.[1 ,. ,., .." " "'1993 94~'""f.:-<'~'~~:
t: .t0~8S:ry':"::.;>~~ ~~':.~~~~<~/ . ....,'.. ..::~- > ,- ::::i~~J~~1
Single
Family 2,651
and above $4,013 per unit Detached Unit 2 Single Family
2,201 -
2,650 $3,362 per unit Detached Unit 3 Single Family 1,
800 - 2,
200 $3,037 per unit Detached Unit 4 Single Family less than
1,800 $
2,820 per unit Detached Unit 5 Town Home N/A $
2,115
per unit 6 Flat N/A $1,464 per
unit 7 Apartment N/A $ 759 per unit
8 Non-Residential N/A $27,600
per net taxable acre The Maximum Special Tax for Developed
Property may exceed the Assigned Special Tax if the Backup Special
Tax alternative is used (SO.654 per square foot of lot space for Developed
Property). The Backup Special Tax (for Developed Property) wI1l be applied under
the fourth and fifth steps of Section D (below) to the following:
1. Class 1 lots larger than
6,140 square feet.2. Class 2 lots larger than
5,144 square feet.3. Class 3 lots larger than
4,647 square feet.4. Oass 4 lots larger than
4,315 square feet 5. Townhome units in Oass 5
for which densities are less than 14 units per acre.6. Flat units
in Oass 6
for which densities are less than 19 units per acre.7. Apanment units in
Oass 7
for which densities are less than 37 units per acre.
I'
I
I
j
I
I
i
I
I
em 1991.2
Paae6
On each July 1, commencing July 1, 1994, the Backup Special Tax(es) and the
Assigned Special Tax for each Land Use Class shall be Increased to 102
percent of the respective Backup Special Tax or Assigned Special Tax, as
applicable, in effect in the previous Fiscal Year.
2.Undeveloped Property
The 1993-94 Maximum Special Tax for Undeveloped Property shall
be 27,600 per
acre.On each July 1, commencing July 1, 1994, the Maximum Special Tax
for Undeveloped Property shall be increased to 102% of the Maximum
Special Tax in effect in the previous Fiscal
Year.D. MEmOD OF APPORTIONMENT OF THE SPECIAL
TAX Commencing with Fiscal Year 1993-94, and for each following Fiscal Year,
the City Finance Director or his designee shall detennine the Special Tax
Requirement for the applicable
Fiscal Year.The City Finance Director or his designee shall levy the Special Tax in
each Fiscal Year, as provided below, until the aggregate amount of the levy equals
the Special Tax Requirement for such
Fiscal Year;First: The Special Tax shall be levied Proportionately on each Assessor's
Parcel of Developed Property up to 91 % of the applicable Assigned Special Tax for
each Land Use Class of
Developed Property.Second: If additional monies are needed after the first step has been
completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel
of Undeveloped Property, up to 91 % of the Maximum Special Tax for
Undeveloped Property.Third: If additional monies are needed after the first two steps
have been completed, then the levy of the Special Tax on each Assessor's Parcel
of Developed Property, and Undeveloped Property shall be increased in equal
percentages from the amounts calculated pursuant to steps 1 and 2 above, up to 100 percent
of the applicable Assigned Special Tax for Developed Property and up to 100 percent
of the Maximum Special Tax for
Undeveloped Property.Fourth: If additional monies are needed after the first three steps
have been completed, then the levy of the Special Tax on each Assessor's Parcel
of Developed Property whose Maximum Special Tax is determined through the application
of the Backup Special Tax shall be increased in equal percentages from
the Assigned Special Tax up to the Maximum Special Tax, provided that the Special
Tax for Assessor's Parcels with Single Family Detached Units on lots that exceed 8,
500 square feet for which the Special Tax shall be the Backup Special Tax multiplied by
8,
500 -square
em 1991-
2 Paee
7 Fifth: If additional monies are needed after the fITst four steps have been
completed,then the levy of the Special Tax on each Assessor's Parcel of Developed
Property with Single Farm1y Detached Units on lots that exceeds 8,500 square feet
whose Maximum Special Tax is determined through the application of the Backup
Special Tax shall be increased in equal percentages from the Special Tax calculated
under the fourth step up to the Maximum Special Tax for each such Assessor's
Parcel.E.
EXEMPTIONS The Council shall not levy a Special Tax on (i) properties owned by the State
of California, Federal or other local governments or public agencies except as
otherwise provided in Sections53317.3 and53317.5 of the Act, or (Ii) property owned by
a Home Owners Association or properties encumbered with un1ity easements
which make impractical their utilization for any use other than purposes set forth in
the easements or any Assessor Parcel for which the Special Tax has been prepaid
under Section G
below.Any additional land conveyed or irrevocably offered for dedication to a public
agency after formation of CFD No. 91-2 shall be subject to the levy of the
Special Tax pursuant toSection 53317.3 orSection 53317.5 of the Government
Code and classified as Undeveloped Property. However, at the direction of the
Council, such Assessor's Parcels may be exempted from the levy of the Special Tax in
any Fiscal Year provided the Special Tax Requirement can be satisfied without imposing
a levy on said Assessor'
s Parcels.F. MANNER
OF COLLECTION The Special Tax will be collected in the same manner and at the same
time as ordinary ad valorem real property taxes, provided, however, that cm No.
91-2 may collect Special Taxes at a different time or in a different manner
as determined by the Council, if necessary to meet
its financial obligations.G. PREPAYMENT OF
TIlE SPECIAL TAX Any property owner in CPD No. 91-2 who desires to prepay the
Special 'Pax on a particular parcel shall notify the Finance Director of the City
in writing of such intention, and upon payment by such property owner of a
non refundable deposit in an amount determined by the Finance Director of the City (to
be applied against the Prepayment date, which shall be a date at least 60 days prior
to the next interest payment date for bonds Issued for CFD No.91-2.
Amount by the Finance Director of the City), the Finance Director of the City shall
cause to be determined the amount of prepayment, which determination shall be made
no more than seventy.five 75) days and no less than forth-five (
I
ern 1991.2
Pa&e8
A prepayment may be made on any Public Property that is not subject to ad valorem
real property taxation on any Prepayment Date, and a prepayment may be made on
any other parcel on any Prepayment Date after it becomes Developed Property. On
any parcel of property in CFD 91.2 the amount of the prepayment shall be
determined according to the following formula:
P = PVf - RFC + F + PR The
variables are descnbed as follows:P -
Prepayment Amount PVf - Present
Value of Taxes RFC . Reserve Fund
Credit F - Prepayment Fees
PR - Redemption Premium for
Bonds Present Value oC Taxes" or
PVf means the Special Tax applicable to the subject parcel in the current Fiscal
Year not yet received by CFD No, 91-2 plus a sum of the present values of tbe
Maximum Special Tax applicable to the subject parcel in each remaining Fiscal Year subsequent
to the Fiscal Year in which the calculation is made,until the date of
the last maturity of the Bonds, using as the discount rate the combined aggregate yield of
the Bonds (meaning that yield which when computing the present worth of
all payments of principal and interest produces an amount equal to the face value
of the Bonds).Reserve Fund Credit" or
RFC shall be calculated as a reduction in the reserve fund balance for the Bonds
proportional to the principal amount of the Bonds to be redeemed with the proceeds
of the prepayment in relation to the then outstanding principal of the Bonds,
Prepayment Fees" or F
shall mean the fees of CFD No. 91-2, the fiscal agent and any consultants retained
by CPD No. 91-2 in connection with the prepaymcnt calculation and
any redemption of the Bonds with the proceeds of the prepayment,as determined
by the Finance Director of the City.Redemption Premium
on the Bonds" or PR shall mean a prepayment premium as set forth
in any fiscal agent agreement or supplement thereto arising by reason of a redemption of
the Bonds as a consequence of the prepayment of the Special Tax applicable to
the subject parcel in the current Fiscal Year.In addition
to the amount determined under the formula above, the Prepayment Amount shall
include all delinquent Special Taxes, and any interest and penalties owing on
the parcel on which prepayment of the Special Tax is being made.Notwithstanc1ing the
foregoing, no prepayment shall be made on any parcel of property, in
CFD No. 91:2 until such time as no more Bonds will be issued by the City for
CFD No. 91-2, as determined by the Council.orang<\
91.1no.uP<1(smt)11,
1)4/1991
EXHIBIT C
NOTICE OF PUBLIC HEARING
City of Orange
Community Facilities District No. 91-
2 Serrano Heights Public
Improvements)Notice is hereby given that on November 12, 1991, the
City Council of the City of Orange, California, adopted a
Resolution entitled "A Resolution of the City Council of the City of
Orange 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: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 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, on October 15, 1991,
this City Council adopted Resolution No. 7889, which,
among other matters, authorized and directed City staff to take
all actions necessary to present to this City Council
all proceedings necessary to establish a community facilities district
under the Act for the
Serrano Heights development; and WHEREAS, this City Council, with the
aid of its staff,now desires to proceed with the
establishment of a community facilities district under the
Act as provided below.NOW, THEREFORE, BE IT RESOLVED by
the City Council of the City
of Orange as follows:Section I. This City
Council proposes to conduct proceedings to establish a
community facilities district for the Serrano Heights development (
the "District")
pursuant to the Act.Section II. This
City Council hereby acknowledges receipt of the petition
of Woodcrest Development, Inc.,Section II. This City Council
hereby acknowledges receipt of the petition of Woodcrest
Development, Inc. ("Woodcrest"), to form the District. Under the
petition, Woodcrest has agreed to make advances as necessary to pay any costs
of
the City to
form the District, and it is the intent of this City Council
to reimburse any such advances, without interest, solely from
the proceeds of any bonds issued for the District.
Section III. The name proposed for the District is City
of Orange Community Facilities District No. 91-2 (
Serrano Heights Public
Improvements).Section IV. 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.Section V. The type of public facilities proposed to
be financed by the District and pursuant to the Act
shall consist of those items listed as facilities (
the Facilities") on Exhibit A hereto, which exhibit is by
this reference incorporated
herein.Section VI. 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 lien against all non-
exempt real property in the District, is intended to be
levied annually within the District, and collected in the same
manner as ordinary ad valorem property taxes. 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.Section VII. 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 $40,000,000, 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 30 years
from the date of
the
issuance thereof.C-
2
Section VIII. 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.Section IX. 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, subj ect to any
maximum special tax that may be
levied.Section X. The Director of Public Works of the City,
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.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
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.Section XI. Tuesday, December 17, 1991, at 3:
00 p.m.,in the regular meeting place of this City
Council, in the City Council chambers, at 300 East
Chapman Avenue, Orange,California, be, and the same are hereby
appointed
and fixed C-
3
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.
Section XII. 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 days before the date herein set for said hearing. Said
notice shall be substantially in the form of Exhibit C
hereto.
B. The time and place established under said Resolution for
the public hearing required under the Act are Tuesday, December
17, 1991, at the hour of 3:00 p.m., in the regular meeting place
of the City Council of the City of Orange, in the City Council
chambers, at 300 East Chapman Avenue, Orange, 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 53323 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 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
from the proceedings to form the
district.D. The proposed voting procedure shali be by special mail
or hand-delivered ballot to the property owners within
the territory proposed to be included in
the district.Dated: 12 November, 1991 9;;;-~1Y~/ 8c9~
41~Isl Marilvn
Jensen City Clerk of the City of
Orange
J9125X
C-4 Resolution