HomeMy WebLinkAboutsupplemental Item #9 - ResolutionRESOLUTION NO. -
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE
CITY OF LAKE ELSINORE TO ESTABLISH COMMUNITY
FACILITIES DISTRICT NO. 2015-5 OF THE CITY OF LAKE
ELSINORE (TRIESTE), TO AUTHORIZE THE LEVY OF A
SPECIAL TAX TO PAY THE COSTS OF ACQUIRING OR
CONSTRUCTING CERTAIN FACILITIES AND PROVIDING
CERTAIN SERVICES AND EXPENSES OF THE DISTRICT AND
TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS
WHEREAS, the City of Lake Elsinore (the "City") received a petition signed by the owner
of more than ten percent of the land within the boundaries of the territory which is proposed for
inclusion in a proposed community facilities district, which petition meets the requirements of
Sections 53318 and 53319 of the Government Code of the State of California; and;
WHEREAS, the City Council of the City (the "City Council") desires to adopt this resolution
of intention as provided in Section 53321 of the Government Code of the State of California to
establish a community facilities district consisting of the territory described in Attachment "A"
hereto and incorporated herein by this reference, which the City Council hereby determines shall
be known as "Community Facilities District No. 2015-5 of the City of Lake Elsinore (Trieste)" (tie
"Community Facilities District No. 2015-5" or the "District") pursuant to the Mello -Roos
Community Facilities Act of 1982, as amended, commencing with Section 53311 of the
Government Code (the "Act") to finance (1) the purchase, construction, modification, expansion,
improvement or rehabilitation of certain real or other tangible property described in Attachment
"B" hereto and incorporated herein by this reference, including all furnishings, equipment and
supplies related thereto (collectively, the "Facilities"), which Facilities have a useful life of five
years or longer} (2) the incidental expenses to be incurred in connection with financing the
Facilities and forming and administering the District (the "Facilities Incidental Expynses'l,
maintaining, servicing, repairiiia and/or replacing street] i a ht -i p1mvements in public
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WHEREAS, the City Council further intends to approve an estimate of the costs of the
Facilities, the Services and the Incidental Expenses for Community Facilities District No. 2015-5;
and
WHEREAS, it is the intention of the City Council to consider financing the Facilities
Services and the Incidental Expenses through the formation of Community Facilities District No.
2015-5 and the issuance of bonded indebtedness in an amount not to exceed $2,700,000 mdth
respect to the Facilities and the Facilities Incidental Expenses -and the levy of a special tax to
pay for the Facilities (the "Facilities Special Tax"). the Services (ta be levied contingent
upon_the inability of a property owner association to maintain the Services (the "Services
Special Tax" and taaether with the Facilities Special Tax, the "Special Tax") and the
Incidental Expenses and to pay debt service on the bonded indebtedness, provided that the bond
sale and such special tax levy are approved at an election to be held within the boundaries of
Community Facilities District No. 2015-5; and,
WHEREAS, the City desires to enter into a reimbursement agreement with Far West
Industries, a California corporation (the "Developer"), the form of which is on file with the City
Clerk (the "Reimbursement Agreement"), to provide for the reimbursement of certain amounts
advanced by the Developer in connection with the formation of the District.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. A community facilities district is proposed to be established under the terms of
the Act. It is further proposed that the boundaries of the community facilities district shall be the
legal boundaries as described in Attachment "A" hereto, which boundaries shall, upon recordation
of the boundary map for the District, include the entirety of any parcel subject to taxation by the
District, and as depicted on the map of the proposed Community Facilities District No. 2015-5
which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the
District and record it with all proper endorsements thereon with the Assessor -County
Clerk -Recorder of the County of Riverside within 15 days after the adoption of this resolution, all
as required by Section 3111 of the Streets and Highways Code of the State of California.
Section 3. The name of the proposed community facilities district shall be "Community
Facilities District No. 2015-5 of the City of Lake Elsinore (Trieste)."
Section 4. The Facilities proposed to be provided within Community Facilities District
No. 2015-5 are public facilities as defined in the Act, which the City and the Elsinore Valley
Municipal Water District, with respect to certain water and sewer facilities, are authorized by law
to construct, acquire, own and operate. The City Council hereby finds and determines that the
description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed
District to understand what the funds of the District may be used to finance. The Incidental
Expenses expected to be incurred include the cost of planning and designing the Facilities, the
costs of forming the District, issuing bonds and levying and collecting a special tax within the
proposed District. The Facilities may be acquired from one or more of the property owners within
the District as completed public improvements or may be constructed from bond or Special Tax
proceeds.
All or a portion of the Facilities may be purchased with District funds as completed public
facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section
53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act.
Any portion of the Facilities may be financed through a lease or lease -purchase arrangement if
the District hereafter determines that such arrangement is of benefit to the District.
The Services nronosed to be provided for the benefit of Community Facilities
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Section 5. Except where funds are otherwise available, it is the intention of the City
Council to levy annually in accordance with the procedures contained in the Act the Facilities
Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the
District, sufficient to pay for: (i) the Facilities and Fag llities Incidental Expenses; and (ii) the
principal and interest and other periodic costs on bonds or other indebtedness issued to finance
the Facilities and Facilities Incidental Expenses, including the establishment and replenishment
of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement
and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve
fund in lieu of cash). The rate and method of apportionment and manner of collection of the
special tax are described in detail in Attachment "C" attached hereto, which Attachment "C" is
incorporated herein by this reference. Attachment "C" allows each landowner within the District to
estimate the maximum amount of the Facilities Special Tax that may be levied against each
parcel. In the first year in which such Facilities Special Tax is levied, the levy shall include an
amount sufficient to repay to the District all amounts, if any, transferred to the District pursuant to
Section 53314 of the Act and interest thereon.
If the Facilitmes Special Tax is levied against any parcel used for private residential
purposes, (i) the maximum Facilities Special Tax rate shall be specified as a dollar amount which
shall be calculated and established not later than the date on which the parcel is first subject to the
Special Tax because of its use for private residential purposes and shall not be increased over
time except that it may be increased by an amount not to exceed one percent (1 %) per year to the
extent permitted in the rate and method of apportionment of the special tax set forth in Attachment
"C," (ii) such Facilities Special Tax not shall be levied after fiscal year 2057-58, as described in
Attachment "C" hereto, and (iii) under no circumstances will the Special Tax levied against any
such parcel used for private residential uses be increased as a consequence of delinquency or
default by the owner or owners of any other parcel or parcels within the District by more than ten
percent (10%) above the amount that would have been levied in that fiscal year had there never
been any such delinquencies or defaults.
The Facilities Special Tax is based on the expected demand that each parcel of real
property within proposed Community Facilities District No. 2015-5 will place on the Facilities and
on the benefit that each parcel derives from the right to access the Facilities. The City Council
hereby determines that the proposed Facilities are necessary to meet the increased demand
placed upon the City and the existing infrastructure in the City as a result of the development of
the land proposed for inclusion in the District.. The City Council hereby determines the rate and
method of apportionment of the special tax with respect to the Facilities Special Tax set forth in
Attachment "C" to be reasonable. The Facilities Special Tax is apportioned to each parcel on the
foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based
upon the value or ownership of real property. In the event that a portion of the property within
Community Facilities District No. 2015-5 shall become for any reason exempt, wholly or partially,
from the levy of the Special Tax specified on Attachment "C," the City Council shall, on behalf of
Community Facilities District No. 2015-5, cause the levy to be increased, subject to the limitation
of the maximum Facilities Special Tax for a parcel as set forth in Attachment "C," to the extent
necessary upon the remaining property within proposed Community Facilities District No. 2015-5
which is not exempt in order to yield the Facilities _Special Tax revenues required for the
purposes described in this Section 5. The obligation to pay the Facilities Special Tax may be
prepaid only as set forth in Section G of Attachment "C" hereto.
Section 6. intention of the_
City Councilv
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Section 7. A public hearing (the "Hearing") on the establishment of the proposed
Community Facilities District No. 2015-5, the proposed rate and method of apportionment of the
Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental
Expenses shall be held at 7:00 p.m., or as soon thereafter as practicable, on July 42-, 2016, at
the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council
determine to form the District, a special election will be held to authorize the issuance of the bonds
and the levy of the special tax in accordance with the procedures contained in Government Code
Section 53326. If held, the proposed voting procedure at the election will be a landowner vote
with each landowner who is the owner of record of land within the District at the close of the
Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof
owned within the proposed District. Ballots for the special election may be distributed by mail or
by personal service.
Section 7:$ At the time and place set forth above for the Hearing, the City Council will
receive testimony as to whether the proposed Community Facilities District No. 2015-5 shall be
established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within
proposed Community Facilities District No. 2015-5 for the exclusive purpose of paying principal of
or interest on bonds, lease payments or other indebtedness incurred to finance construction of
capital facilities; and
(b) if the capital facilities to be financed and constructed by Community
Facilities District No. 2015-5 will provide the same services as were provided by the capital
facilities mentioned in subsection (a); and
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(c) if the City Council makes the findings specified in subsections (a) and (b)
above, it will consider appropriate action to determine whether the total annual amount of ad
valorem property tax revenue due from parcels within Community Facilities District No. 2015-5,
for purposes of paying principal and interest on the debt identified in subsection (a) above, shall
not be increased after the date on which Community Facilities District No. 2015-5 is established,
or after a later date determined by the City Council with the concurrence of the legislative body
which levied the property tax in question.
Section 8-.1 At the time and place set forth above for the Hearing, any interested
person, including all persons owning lands or registered to vote within proposed Community
Facilities District No. 2015-5, may appear and be heard.
Section SAO.. Each City officer who is or will be responsible for providing the Facilities
within proposed Community Facilities District No. 2015-5, if it is established, is hereby directed to
study the proposed District and, at or before the time of the above-mentioned Hearing, file a report
with the City Council containing a brief description of the public facilities by type which will in his or
her opinion be required to meet adequately the needs of Community Facilities District No. 2015-5
and an estimate of the cost of providing those public facilities, including the cost of environmental
evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental
Expenses to be incurred.
Section 4&J9. The District may accept advances of funds or work -in-kind from any
source, including, but not limited to, private persons or private entities, for any authorized
purpose, including, but not limited to, paying any cost incurred in creating Community Facilities
District No. 2015-5. The District may enter into an agreement with the person or entity advancing
the funds or work -in-kind, to repay all or a portion of the funds advanced, or to reimburse the
person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the
City Council, with or without interest.
Section 44-12. The City Clerk is hereby directed to publish a notice (the "Notice") of
the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general
circulation published in the area of proposed Community Facilities District No. 2015-5. The City
Clerk is further directed to mail a copy of the Notice to each of the landowners within the
boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or
a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of
all interested persons or taxpayers will be heard, a description of the protest rights of the
registered voters and landowners in the proposed district and a description of the proposed voting
procedure for the election required by the Act. Such publication shall be completed at least seven
(7) days prior to the date of the Hearing.
Section 4-2-1$. The reasonably expected maximum principal amount of the bonded
indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Two
Million Seven Hundred Thousand Dollars ($2,700,000).
Section 44-14. The form of the Reimbursement Agreement is hereby approved.
The Mayor, the City Manager, the Director of Administrative Services, or their written designees
are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the
form on file with the City Clerk with such changes, insertions and omissions as may be approved
by the officer or officers executing such agreement, said execution being conclusive evidence of
such approval.
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Section 444 Except to the extent limited in any bond resolution or trust indenture
related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers
set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).
Section 415, This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED this 346�Z day of MayJ. une, 2016.
ATTEST:
Susan M. Domen, CMC
City Clerk
Brian Tisdale, Mayor
APPROVED AS TO FORM:
Barbara Zeid Leibold
City Attorney
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Susan M. Domen, CMC, City Clerk of the City of Lake Elsinore, California, do hereby
certify that Resolution No. was adopted by the City Council of the City of Lake
Elsinore, California, at the regular meeting of May-34-,lin 14 2016 and that the same was
adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Susan M. Domen, CMC
City Clerk
7
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ATTACHMENT A
BOUNDARY MAP
PROPOSED BOUNDARYMAP
COMMUNITY FACILITIES DISTRICT NO. 2016-5
(TRIESTE)
CITY OF LAKE ELSINORE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
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ATTACHMENT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2015-5 of the City of Lake Elsinore
The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of
(i) drainage, library, park, roadway and other public facilities of the City, including the foregoing
public facilities which are included in the City's fee programs with respect to such facilities and
authorized to be financed under the Mello -Roos Community Facilities Act of 1982, as amended
(the "City Facilities") and (ii) water and sewer facilities including the acquisition of capacity in the
sewer system and/or water system of the Elsinore Valley Municipal Water District which are
included in Elsinore Valley Municipal Water District's water and sewer capacity and connection
fee programs (the "Water District Facilities" and together, with the City Facilities, the "Facilities"),
and all appurtenances and appurtenant work in connection with the foregoing Facilities, including
the cost of engineering, planning, designing, materials testing, coordination, construction staking,
construction management and supervision for such Facilities, and to finance the incidental
expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities;
b. All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
C. Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate
and Method of Apportionment of Special Taxes for the District.
Types of Services
to Be Finai■ •
Fa-cilities-District NQ, 2015-5 Qf the City of Lake-Etsinm
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ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2015-5
OF THE CITY OF LAKE ELSINORE
(TRIESTE)
C-3
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