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HomeMy WebLinkAboutCC Reso No 2014-016 District No. 2006-1 (Summerly)RESOLUTION NO. 2014 -016 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS RELATING TO CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006 -1 (SUMMERLY) WHEREAS, the City Council (the "Council') of the City of Lake Elsinore (the "City ") has previously established City of Lake Elsinore Community Facilities District No. 2006 -1 (Summerly) (the "CFD ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act'); and WHEREAS, the Council has received a petition requesting the institution of proceedings to (i) dissolve Improvement Areas C, D, E and F of the CFD, (ii) file a notice of cessation of special tax on APNs 371 - 270 -017, 371 - 270 -018 and 371- 270 -021 within Improvement Area B, (iii) designate new improvement areas within the CFD for the purpose of financing various public improvements, (iv) authorize the levy of special taxes within each of the new improvement areas of the CFD, (v) authorize the issuance of bonds for each of the new improvement areas of the CFD, and (vi) establish an appropriations limit for each of the new improvement areas of the CFD; WHEREAS, the Council has heretofore adopted Resolution No. 2014 -010 ('Resolution No. 2014 - 010 ") dissolving Improvement Areas C, D, E and F, and discharging special tax liens on properties within such improvement areas, authorizing the filing of a notice of cessation of special tax on APNs 371 - 270 -017, 371 - 270 -018 and 371 - 270 -021 within Improvement Area B and designating new Improvement Area CC, Improvement Area DD, Improvement Area EE, Improvement Area FF, Improvement Area GG, Improvement Area HH and Improvement Area II (each a "New Improvement Area," and collectively, the "New Improvement Areas ") pursuant to the Act; and WHEREAS, a copy of Resolution No. 2014 -010 is on file with the City Clerk and incorporated herein by reference; and WHEREAS, pursuant to the Act and in accordance with applicable laws, this Council held a public hearing on the proposed rate and method of apportionment of certain special taxes and the incurring of bonded indebtedness with respect to the New Improvement Areas; and WHEREAS, at said hearing evidence was presented to the Council on said matters before it, and this Council at the conclusion of said hearing is fully advised in the premises. NOW, THEREFORE, the City Council of the City of Lake Elsinore, California, acting as the legislative body of the City of Lake Elsinore Community Facilities District No. 2006 -1 (Summerly), does hereby resolve as follows: City Council Resolution No. 2014 -016 Page 2 of 5 Section 1. Pursuant to the Act, the Council finds and determines that the proceedings prior hereto were valid and in conformity with the requirements of the Act. Section 2. The description and map of the amended boundaries of the CFD on file in the Clerk's office and as described in Resolution No. 2014 -010 and incorporated herein by reference, shall be the amended boundaries of the CFD. The map of the amended boundaries of the CFD has been recorded in the Office of the County Recorder of Riverside County, California (Book 76 of Maps of Assessment and Community Facilities District at page 80 and as Instrument No. 2014 - 0085080). Section 3. Except where funds are otherwise available, it is the intention of the Council to levy annually in accordance with procedures contained in the Act a special tax (the "Services Special Tax ") sufficient to finance a portion of the cost of providing parks, open space and storm drains maintenance services (the "Services ") that are in addition to those provided in the territory within the New Improvement Areas prior to the formation of the CFD and do not supplant services already available within the New Improvement Areas, the costs of administering the levy and collection of the Services Special Tax and all other costs of the levy of the Services Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy. The Services Special Tax will be secured by recordation of a continuing lien against all real property in the New Improvement Areas. The schedule of the rate and method of apportionment and manner of collection of the Services Special Tax is described in detail in Exhibit A attached hereto and by this reference incorporated herein. The Services are more fully described in the report presented to this Council at the public hearing (the "Report"). The Services Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. Section 4. The facilities proposed to be financed by each of the New Improvement Areas are public infrastructure facilities and other governmental facilities with an estimated useful life of five years or longer, which the CFD is authorized by law to construct, own or operate and that are necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within the proposed CFD, including but not limited to streets, streetscape, park and recreation facilities, storm drain, other City facilities and fees, water and sewer facilities and fees of the Elsinore Valley Municipal Water District, and related costs including designs, inspections, professional fees, annexation fees, connection fees and acquisition costs (the "Facilities "). Such Facilities need not be physically located within the CFD. Section 5. Except where funds are otherwise available, it is the intention of the Council to levy annually in accordance with procedures contained in the Act a special tax (the "Special Tax ") sufficient to pay for the costs of financing the acquisition and /or construction of the Facilities, including the principal of and interest on the bonds City Council Resolution No. 2014 -016 Page 3 of 5 proposed to be issued to finance the Facilities and other periodic costs, the establishment and replenishment of reserve funds, the remarketing, credit enhancement and liquidity fees, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax and issuance of the bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, discount fees, interest on bonds due and payable prior to the expiration of one year from the date of completion of facilities (but not to exceed two years), election costs and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel, financing consultants and printing costs, and all other administrative costs of the tax levy and bond issue. The Special Tax will be secured by recordation of a continuing lien against all real property in the CFD. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the CFD pursuant to Section 53314 of the Act and interest thereon. The schedule of the rate and method of apportionment and manner of collection of the Special Tax is described in detail in Exhibit A attached hereto and by this reference incorporated herein. The Special Tax is based upon the cost of financing the Facilities, the demand that each parcel will place on the Facilities and the benefit (direct and /or indirect) received by each parcel from the Facilities. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. In the event that a portion of the property within an improvement area of the CFD shall become for any reason exempt, wholly or partially, from the levy of the Special Tax, the Council shall, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the sam improvement area of the CFD which is not delinquent or exempt in order to yield the required payments, subject to the maximum Special Tax. Under no circumstances, however, shall the Special Tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the same improvement area by more than 10 percent. Furthermore, the maximum Special Tax authorized to be levied against any parcel used for private residential purposes shall not be increased over time in excess of 2 percent per year. The Facilities are more fully described in the Report. Section 6. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Services Special Tax and the Special Tax shall attach to all real property in the New Improvement Areas, and the lien with respect to the Special Tax shall continue in force and effect until the Special Tax obligation is prepaid or otherwise permanently satisfied and the lien canceled in accordance with law, and the lien with respect to the Services Special Tax and the Special Tax shall continue in force and effect until collection of the Services Special Tax and the Special Tax by the CFD ceases. City Council Resolution No. 2014 -016 Page 4 of 5 Section 7. Neither the proposed Services Special Tax nor the Special Tax to be levied in each of the New Improvement Areas has been precluded by protests by owners of one -half or more of the land in the territory included in the same New Improvement Area pursuant to Government Code Section 53324. Section 8. The Report is ordered to be kept on file with the minutes of these proceedings and open for public inspection. Section 9. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the Council hereby establishes the following accountability measures pertaining to the levy by the CFD of the Services Special Tax and the Special Tax: (a) Such Services Special Tax and the Special Tax shall be levied for the specific purposes set forth herein. (b) The proceeds of the levy of such Services Special Tax and the Special Tax shall be applied only to the specific purposes set forth herein. (c) The CFD shall establish an account or accounts into which the proceeds of such Services Special Tax and the Special Tax shall be deposited. (d) The City Manager, or an authorized designee, acting for and on behalf of the CFD, shall annually file a report with the Council as required pursuant to Government Code Section 50075.3. Section 10. The City Manager, 130 S. Main Street, Lake Elsinore, California 92530, (951) 674 -3124, or his designee, is designated to be responsible for preparing or causing to be prepared annually a current roll of Services Special Tax and the Special Tax levy obligations by assessor's parcel number and for estimating future Services Special Tax and the Special Tax levies pursuant to Section 53340.1 of the Government Code. Section 11. The voting procedure with respect to the imposition of the Services Special Tax and the Special Tax, incurring bonded indebtedness and establishing an appropriations limit of each of the New Improvement Areas shall be by hand delivered or mailed ballot election. Section 12. The City Clerk is directed to certify and attest to this Resolution and to take any and all necessary acts to call, hold, canvass and certify an election or elections on the incurring bonded indebtedness, the levy of the Special Tax, and the establishment of the appropriation limit. City Council Resolution No. 2014 -016 Page 5 of 5 Section 13. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 8th day of April, 2014, Johnsbn,Vayor ATTEST: Virginia J. loom I 7rCity Clerk APPROVED AS TO FORM: Z. Leibbld, City Attorney STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Virginia Bloom, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2014 -016 was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 8th day of April 2014, and that the same was adopted by the following vote: AYES: Council Member Tisdale, Council Member Magee, Council Member Hickman, Mayor Pro Tern Manos, and Mayor Johnson NOES: None ABSENT: None ABSTAIN: None m i �j"/L '- Virginia loom, Py Clerk