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HomeMy WebLinkAboutCC Reso No 2018-141 CFD 2006-1 Summerly Amended & Restated Rate Improvement Area II Calling ElectionRESOLUTION NO. 2018 -141 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006 -1 (SUMMERLY), APPROVING A FIRST AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA II AND CALLING AN ELECTION THEREIN Whereas, after a public hearing, on February 28, 2006, the City Council (Council) of the City of Lake Elsinore (City) adopted Resolution Nos. 2006 -30 and 2006 -31, which formed City of Lake Elsinore Community Facilities District No. 2006 -1 (Summerly) (the "District" or "Community Facilities District No. 2006 -1 ") and Improvement Area Nos. 1 through 3 therein, and called special elections on February 28, 2006, within Improvement Area Nos. 1 through 3 of the District on three propositions relating to the levying of a special tax, the incurring of bonded indebtedness and the establishment of an appropriations limit for the District, which were approved by more than two - thirds vote by the qualified electors on February 28, 2006; and, Whereas, subsequent to the formation of the District, the District received a petition signed by owners of the land within the boundaries of the District to dissolve Improvement Area Nos. 1 through 3 therein and to establish Improvement Areas A through F of the District, to authorize the levy of the special tax in accordance with rates and methods of apportionment of special taxes for Improvement Areas A through F and to authorize the District to incur bonded indebtedness for Improvement Areas A through F; and, ` Whereas, on January 25, 2011, the Council, acting as the legislative body of the District, adopted Resolution Nos. 2011 -005 and 2011 -006, dissolving Improvement Area Nos. 1 through 3 therein, establishing Improvement Areas A through F of the District and declaring the intention to incur bonded indebtedness of the District for Improvement Areas A through F; and, Whereas, after a public hearing, on March 8, 2011, the Council adopted Resolution Nos. 2011- 119 and 2011 -120, which called special elections on March 8, 2011, within Improvement Areas A through F of the District on three propositions relating to the levying of a special tax, the incurring of bonded indebtedness and the establishment of an appropriations limit for the District, which were approved by more than two - thirds vote by the qualified electors on March 8, 2011 (collectively, the "2011 Change Proceedings "); and, Whereas, subsequent to the 2011 Change Proceedings, the District received a petition signed by owners of the land within Improvement Areas C through F of the District to dissolve Improvement Areas C through F and to establish Improvement Areas CC, DD, EE, FF, GG, HH and II of the District from the areas within Improvement Areas C through F of the District; and, Whereas, on February 25, 2014, the Council, acting as the legislative body of the District, adopted Resolution Nos. 2014 -2010 and 2011 -2011, dissolving Improvement Areas C through F therein, establishing Improvement Areas CC, DD, EE, FF, GG, HH and II of the District and declaring the intention to incur bonded indebtedness of the District for Improvement Areas CC, DD, EE, FF, GG, HH and II; and, Whereas, after a public hearing, on April 8, 2014, the Council adopted Resolution Nos. 2014 -016 and 2014 -017, which called special elections on April 8, 2014 within Improvement Areas CC, DD, EE, FF, GG, HH and 11 of the District on three propositions relating to the levying of a special tax, CC Res. No. 2018 -141 Page 2 of 5 the incurring of bonded indebtedness and the increase of the appropriations limit for the District, which were approved by more than two - thirds vote by the qualified electors on April 8, 2014; and, Whereas, the District has received a petition signed by McMillin Summerly, LLC, a Delaware limited liability company (the "Owner "), which owns land within Improvement Area II, the boundaries of which are described in Resolution Nos. 2014 -2010 and 2014 -011 which petition meets the requirements of Section 53332 of the Act, requesting that the District approve a new rate and method of apportionment for Improvement Area II attached to the Resolution of Intention (as defined below) as Attachment "A" (the "First Amended and Restated Rate and Method "); and, Whereas, on October 23, 2018, the Council, acting as the legislative body of CFD No. 2006 -1, adopted Resolution No. 2018 -133 (the "Resolution of Intention "), stating its intention to consider the approval of the First Amended and Restated Rate and Method; and, Whereas, a notice calling a public hearing on November 27, 2018, was published as required by law relative to the intention of the Council to consider the approval the First Amended and Restated Rate and Method; and, Whereas, on November 27, 2018, the Council conducted a noticed public hearing to determine whether it should proceed with the approval of the First Amended and Restated Rate and Method; and, Whereas, at the November 27, 2018, public hearing all persons desiring to be heard on all matters pertaining to the approval of the First Amended and Restated Rate and Method were heard and a full and fair hearing was held; and, Whereas, the Council has determined that there have been fewer than twelve registered voters residing in Improvement Area II for the period of 90 days prior to November 27, 2018, and that the qualified electors in Improvement Area II are the landowners within Improvement Area II; and, Whereas, on the basis of all of the foregoing, the Council has determined at this time to proceed with the approval of the First Amended and Restated Rate and Method as described herein. NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006 -1 (SUMMERLY), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Each of the above recitals is true and correct. Section 2. The Council hereby adopts the First Amended and Restated Rate and Method as the rate and method for Improvement Area II of CFD No. 2006 -1. Except where funds are otherwise available, it is the intention of the Council, subject to the approval of the eligible voters within Improvement Area II of CFD No. 2006 -1, to levy the proposed special taxes at the rates for CFD No. 2006 -1 set forth in the First Amended and Restated Rate and Method on all non - exempt property within Improvement Area II of CFD No. 2006 -1 sufficient to pay for (i) the facilities and improvements described in Resolution Nos. 2014 -010, 2014 -011 and 2014 -016 (collectively, the "Improvements "), (ii) the principal and interest and other periodic costs on the bonds proposed to be issued by the District for Improvement Area II to finance the Improvements and incidental expenses, including the establishment and replenishment of reserve funds, 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), administrative expenses and other expenses of the CC Res. No. 2018 -141 Page 3 of 5 type permitted by Section 53345.3 of the Act (collectively, the "Incidental Expenses "); (iii) the Incidental Expenses; and (iv) the services described in Resolution Nos. 2014 -010 and 2014 -016 (the "Services "). The First Amended and Restated Rate and Method is described in detail in Attachment "A" to the Resolution of Intention which is incorporated herein by this reference, and the Council hereby finds that the First Amended and Restated Rate and Method contains sufficient detail to allow each landowner within Improvement Area II of the District to estimate the maximum amount that may be levied against each parcel. The Special Tax for Facilities (as defined in the First Amended and Restated Rate and Method) shall be levied on each assessor's parcel for a period not to exceed Fiscal Year 2059 -60. The Special Tax for Services (as defined in the First Amended and Restated Rate and Method) shall be levied in perpetuity to fund the Special Tax for Services Requirement, unless no longer required as determined at the sole discretion of the City Council. Section 3. Upon recordation of a first amended and restated 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 special tax shall attach to all non - exempt real property in Improvement Area II of the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special tax by the District ceases. Section 4. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Improvements, as described in Resolution No. 2014 -2011, financing the Incidental Expenses, and carrying out the powers and purposes of CFD No. 2006 -1, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying 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), administrative expenses and other expenses of the type authorized by Section 53345.3 of the Act. Section 5. The Council, acting as the legislative body of CFD No. 2006 -1 determines that the property within Improvement Area II of CFD No. the 2006 -1 will be benefited by the Services to be provided as set forth in the First Amended and Restated Rate and Method. Section 6. Written protests against the approval of the First Amended and Restated Rate and Method have not been filed by one -half or more of the registered voters within the boundaries of Improvement Area II of the District or by the property owners of one -half or more of the area of land within the boundaries of Improvement Area II of the District. The Council hereby finds that the approval of the First Amended and Restated Rate and Method with respect to CFD No. 2006- 1 has not been precluded by a majority protest pursuant to Section 53337 of the Act. Section 7. An election is hereby called for Improvement Area II of CFD No. 2006 -1 on the proposition of approving the First Amended and Restated Rate and Method. The proposition to be placed on the ballot for Improvement Area II of the District is attached hereto as Attachment "A." Following certification of a landowner vote in favor of the adoption of the First Amended and Restated Rate and Method, the District shall record a first amended and restated notice of special tax lien for Improvement Area II of the District. Section 8. The date of the foregoing election for Improvement Area II of the District shall be November 27, 2018, or such later date as is consented to by the City Clerk and the landowners within Improvement Area 11 of the District. The City Clerk shall conduct the election. Except as CC Res. No. 2018 -141 Page 4of5 otherwise provided by the Act, the election shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable. Section 9. It is hereby found that there are not more than twelve registered voters within the territory of Improvement Area II of the District, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he or she owns within Improvement Area II of the District. Section 10. This Resolution shall be effective upon its adoption. Passed and Adopted on this 27th day of November 2018. '--I/ Natosha Johnson Mayor Attest: Mark Mahan Deputy City Clerk STATE OF CALIFORNIA } COUNTY OF RIVERSIDE } ss. CITY OF LAKE ELSINORE } I, Mark Mahan, Deputy City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2018 -141 was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of November 27, 2018, and that the same was adopted by the following vote: AYES: Council Members Hickman, Magee and Tisdale; Mayor Pro -Tem Manos and Mayor Johnson NOES: None ABSENT: None ABSTAIN: None Mark Mahan Deputy City Clerk CC Res. No. 2018 -141 Page 5 of 5 ATTACHMENT "A" SAMPLE BALLOT COMMUNITY FACILITIES DISTRICT NO. 2006 -1 (SUMMERLY) OF CITY OF LAKE ELSINORE (IMPROVEMENT AREA II) SPECIAL ELECTION November 27, 2018 This ballot represents _ votes. To vote, write or stamp a cross ( " +" or "X ") in the voting square after the word "YES" or after the word "NO ". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear or deface this ballot, return it to the City Clerk of City of Lake Elsinore and obtain another. PROPOSITION A: Shall special taxes with a First Amended and Restated Rate and Method of apportionment (the "First Amended and Restated Rate and Method ") as provided in Attachment "A" to Resolution No. 2018 -133 adopted by the City Council of the City of Lake Elsinore on October 23, 2018, acting as the legislative body of City of Lake Elsinore Community Facilities District No. 2006 -1 (Summerly) (the "District "), be levied to pay for YES the Improvements, Incidental Expenses, Services and other purposes described in Resolution Nos. 2014 -010, 2014 -011 and 2014 -016 described NO_ in the First Amended and Restated Rate and Method, including the payment of the principal of and interest on bonds issued to finance the Improvements and Incidental Expenses for the District?