RES-10129 Intent to Establish Community Facilities District Del RioRESOLUTION 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 WHEREAS,
under the Mello-Roos Community Facilities Act of 1982, constituting
Section 53311 et seq. of the California Government Code (the Law), the City Council (the
Council) of the City of Orange (the City) may commence proceedings for the establishment
of a community facilities district; and
WHEREAS, there has been submitted to this Council Petitions (Including Waivers)
collectively, the Petitions) of the owners ofland in the area of the Del Rio development in
the City requesting the formation by this Council of a community facilities district under the
Law to be known as the City of Orange Community Facilities District No. 06-1 (Del
Rio Public Improvements) (the District);
and WHEREAS, under the Law, this Council is the legislative body for the
proposed District and is empowered with the authority to establish the District and levy special
taxes within the District;
and WHEREAS, this Council now desires to proceed with the actions necessary
to consider the establishment of the
District.NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
ORANGE DOES HEREBY RESOLVE AS
FOLLOWS:Section 1. This Council proposes to begin the proceedings necessary to establish
the District pursuant to the Law. Receipt of the Petitions to form the District from the
four entities that currently own land in the area of the proposed District is hereby
acknowledged.Section 2. The name proposed for the District is City of Orange Community
Facilities District No. 06-1 (Del Rio
Public Improvements).Section 3. 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. The City Clerk is hereby directed to record, or cause to be recorded, the map of the
boundaries of the District in the office of the County Recorder as soon as practicable after the
adoption of
Section 4. The types of public facilities (the Facilities) and public services (the
Services) proposed to be eligible for funding by the District and pursuant to the Law shall
consist of those items listed on Exhibit A hereto under the headings "Facilities" and
Services," respectively, which Exhibit is by this reference incorporated herein.
Section 5. Except to the extent that funds are otherwise available to the District to pay
for the Facilities, the Services and/or pay the principal and interest as it becomes due on
bonds of the District issued to pay for 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, will be levied within the District and collected in the same manner as ordinary
ad valorem property taxes or in such other manner as this Councilor its designee
shall determine, including direct billing of the affected property owners. 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, and which specifies the tax year
after which no further special tax to pay for the Facilities and/or the debt service on bonds
issued to finance the Facilities, will be levied on land used for private residential purposes (it
being acknowledged that there need be no such last tax year with respect to special tax levies to
pay for the Services and the costs to administer the District), and which otherwise complies
with applicable provisions of the Law, is described in Exhibit B attached hereto which Exhibit
is by this reference incorporated
herein.This Council finds that the provisions of Sections 53313.6, 53313.7 and 53313.9
of the California Government Code (relating to adjustments to ad valorem property taxes
and schools financed by a community facilities district) are inapplicable to the
District.Section 6. It is the intention of this Council, acting as the legislative body for
the District, to cause bonds of the City to be issued for the District pursuant to the Law to
finance costs of the Facilities. If so issued, the bonds shall be in the aggregate principal amount
of not to exceed $47,000,000, shall bear interest payable semi-annually or in such
other manner as this 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 35 years from the date of the
issuance thereof.Section 7. This Council reserves to itself the right and authority to
allow any interested owner of property in the District, subject to the provisions of Section 53344.
1 of the California Government Code and such requirements as it may otherwise impose,
and any applicable prepayment penalties as prescribed in the indenture or fiscal agent
agreement for any bonds of the City for the District, to tender to the Finance Director of the City
in full payment or part payment of any installment of special taxes or the interest
or penalties thereon which may be due or delinquent, but for which a bill has been received, any
bond or other obligation secured thereby, in each case with respect to the District, in
the manner described in Section 53344.1 of the California
Government
Section 8. The levy of said proposed special tax in the District 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 the
District,with each owner having one vote for each acre or portion of an acre ofland such owner
owns in the
District.Section 9. Except as may otherwise be provided by law or the rate and method
of apportionment of the special tax for the District, 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 of any thereof shall be omitted from the levy of the special tax to
be made to cover the costs and expenses of the Facilities and the Services, the issuance of
bonds by the City for the District and any expenses of the
District.Section 10. The City's Director of Public Works is hereby directed to study
the proposed Facilities and Services and to make, or cause to be made, and file with the
City Clerk a report in writing, presenting the
following:a) A brief description of the Facilities and the Services eligible to
be funded by the
District.b) An estimate of the fair and reasonable cost of providing the
Facilities and the Services, including the incidental expenses in connection therewith,
including the costs of the proposed bond financing, any City administrative costs and all
other related
costs.Said report shall be made a part of the record of the public hearing provided
for
below.Section 11. Tuesday, December 12, 2006, at 4:30 p.m. or as soon thereafter as
the matter may be heard, in the regular meeting place of this Council, City Council
Chambers,City Hall, 300 East Chapman Avenue, Orange, California, be, and the same are
hereby appointed and fixed as the time and place when and where this 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 within the
District.Section 12. 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.Section 13. The Council may in the future, by resolution, approve an
agreement pursuant to Section 53314.9 of the California Government Code, to accept an advance
or advances of funds or work-in-kind from one or more landowners in the
District or related entities, which advances may be repaid and work-in-kind may be
reimbursed
entity which advanced the funds or work-in-kind subject to compliance with
the applicable provisions of Section 53314.9 of the California
Government Code.Section 14. This Resolution shall take effect upon
its adoption.ADOPTED this 7th day of
November, 2006.
jt-}U Mark A.
Murphy,
Mayor,ATTEST:Orange
Mary E.I, MARY E. MURPHY, City Clerk of the City of Orange, California,
do hereby certify that the foregoing Resolution was duly and regularly adopted by the City
Council of the City of Orange at an adjourned regular meeting thereof held on the 7th day
of November,2006, by the
following
vote:
AYES:
NOES:
ABSENT:ABSTAIN:COUNCILMEMBERS: Smith, Murphy,
Cavecche, Dumitru
COUNCILMEMBERS: None
COUNCILMEMBERS: None
COUNCILMEMBERS: None
o {i Mary
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