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HomeMy WebLinkAboutItem No. 11 CFD No. 2006-1 Summerly Improvement Area 11Text File City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: RES 2018-12 Agenda Date: 11/27/2018 Status: Public HearingVersion: 1 File Type: ResolutionIn Control: City Council / Successor Agency Agenda Number: 11) Page 1 City of Lake Elsinore Printed on 11/20/2018 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Grant Yates, City Manager Prepared by: Jason Simpson, Assistant City Manager Date:November 27, 2018 Subject: Change Proceedings for Improvement Area II of Community Facilities District (CFD) No. 2006-1 (Summerly) Recommendations adopt A 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; and, adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (SUMMERLY), CERTIFYING THE RESULTS OF THE NOVEMBER 27, 2018, SPECIAL ELECTION; and, introduce AN ORDINANCE OF THE CITY COUNCIL OF CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (SUMMERLY) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN IMPROVEMENT AREA II OF SUCH DISTRICT Background The City of Lake Elsinore (City) formed City of Lake Elsinore Community Facilities District (CFD) No. 2006-1 (Summerly) (District) in 2006 pursuant to the Mello-Roos Community Facilities District Act of 1982. The District generally encompasses the development within the City known as “Summerly.” McMillin Summerly, LLC, a Delaware limited liability company (Developer) is currently the master developer of the Summerly development. Since the District was formed in 2006, the planned product mix within the various portions of the Summerly has changed. To accommodate such changes in product mix and planned development, the Developer has requested, and the City has undertaken proceedings relating to the reorganization of improvement areas within the District and the tax rates within such improvement areas. As a result of further changes in the development plan within Improvement Area II of the Summerly project, the City has received a petition from the Developer requesting the current CFD 2006-1 Summerly Improvement Area II Page 2 of 2 change proceedings, which if approved, will amend the current rate and method of apportionment of special taxes for Improvement Area II with the first amended rate and method of apportionment of special taxes (First Amended Rate and Method). If approved, the First Amended Rate and Method will reduce the special tax rates to be levied within Improvement Area II from those currently in effect. The current special tax rates range from $1,786.01 to $3,057.87 and will be reduced to range from $1,494.00 to $1,797.00 per single family home. On October 23, 2018, the Council adopted Resolution No. 2018-133, stating its intention to consider approval of the First Amended Rate and Method and called for a public hearing to be held on the approval of such First Amended Rate and Method. Documents to be Approved Following the public hearing to be held, approval of the first resolution will call for an election to be held with respect to the approval of the First Amended Rate and Method. The City has received a certificate of the Registrar of Voters certifying that there are less than 12 Registered Voters residing within Improvement Area II of the District during the 90 days prior to the time of the public hearing. Accordingly, the election to be held will be a landowner election pursuant to which the landowners are the sole eligible voters within Improvement Area II of the District. The Developer has also executed a consent and waiver to certain election law requirements allowing the election to be conducted immediately following the public hearing. Following the holding of the election, the Council will be asked to certify the election results and assuming approval of the First Amended Rate and Method, introduce the Ordinance authorizing the levy of the special tax in accordance with the First Amended Rate and Method. Fiscal Impact The Developer has made a deposit to pay for the costs of the change proceedings described above. The District will annually levy special taxes on all of the taxable property within Improvement Area II in accordance with the First Amended Rate and Method in order to pay for the costs of facilities, debt service on bonds, the services and administration of the District. Any bonds issued by the District for Improvement Area II are not obligations of the City and will be secured solely by the Special Taxes levied in Improvement Area II. Exhibits A - Resolution Amending the RMA B - Resolution Certifying Election Results C - Ordinance D - Landowner Waiver E - Certificate of Registrar of Voters RESOLUTION NO. 2018-______ 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 II of the District on three propositions relating to the levying of a special tax, CC Res. No. 2018- ______ Page 2 of 6 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- ______ Page 3 of 6 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 II of the District. The City Clerk shall conduct the election. Except as CC Res. No. 2018- ______ Page 4 of 6 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 27 th day of November, 2018. _____________________________ Natasha Johnson, Mayor Attest: _____________________________ Susan M. Domen, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2018-______ was adopted by the City Council of the City of Lake Elsinore, CC Res. No. 2018- ______ Page 5 of 6 California, at the Regular meeting of November 27, 2018, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ Susan M. Domen, MMC City Clerk CC Res. No. 2018- ____ Page 6 of 6 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 the Improvements, Incidental Expenses, Services and other purposes described in Resolution Nos. 2014-010, 2014-011 and 2014-016 described 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? YES______ NO_______ RESOLUTION NO. 2018- ________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (SUMMERLY), CERTIFYING THE RESULTS OF THE NOVEMBER 27, 2018, SPECIAL ELECTION Whereas, the City Council (Council) of City of Lake Elsinore (City), acting as the legislative body of City of Lake Elsinore Community Facilities District No. 2006-1 (Summerly) (“CFD No. 2006-1” or the “District”) called and duly held an election on November 27, 2018, within the boundaries of Improvement Area II of the District pursuant to Resolution No. 2018-___ for the purpose of presenting to the qualified electors within Improvement Area II of the District the proposition attached hereto as Attachment “A”; and, Whereas, there has been presented to the Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Attachment “B”. 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 and is adopted by the legislative body of the District. Section 2. Proposition A presented to the qualified electors of Improvement Area II of the District on November 27, 2018, was approved by more than two-thirds of the votes cast at the election held for Improvement Area II of the District, and Proposition A has carried. The Council is hereby authorized to levy on the land within Improvement Area II of the District the special tax described in Proposition A for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition A. Section 3.The City Clerk is hereby directed to record in the Office of the County Recorder within fifteen days of the date hereof a first amended and restated notice of special tax lien which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5. Section 4.This Resolution shall take effect immediately upon its adoption. Section 5. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions. CC Res. No 2018- _____ Page 2 of 4 Passed and Adopted on this 27 th day of November, 2018. _____________________________ Natasha Johnson, Mayor Attest: _____________________________ Susan M. Domen, MMC City Clerk STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss. CITY OF LAKE ELSINORE) I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2018-______ 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: NOES: ABSENT: ABSTAIN: ___________________________ Susan M. Domen, MMC City Clerk CC Res. No 2018- _____ Page 3 of 4 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 the Improvements, Incidental Expenses, Services and other purposes described in Resolution Nos. 2014-010, 2014-011 and 2014-016 described 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? YES______ NO_______ Page 4 of 4 ATTACHMENT B CERTIFICATE OF CITY CLERK AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, do hereby certify that I have examined the returns of the Special Tax Election for Improvement Area II of City of Lake Elsinore Community Facilities District No. 2006-1 (Summerly). The election was held in the Lake Elsinore Cultural Center at 183 North Main Street, Lake Elsinore, California, on November 27, 2018. I caused to be delivered ballots to each qualified elector. ____ (__) ballots were returned. I further certify that the results of said election and the number of votes cast for and against Proposition A are as follows: PROPOSITION A YES: NO: TOTAL: Dated this 27th day of November, 2018. __________________________ Susan M. Domen, MMC, City Clerk City of Lake Elsinore ORDINANCE NO. 2018- __________ ORDINANCE OF THE CITY COUNCIL OF CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (SUMMERLY) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN IMPROVEMENT AREA II OF SUCH DISTRICT 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 II of the District on three propositions relating to the levying of a special tax, the incurring of bonded indebtedness and the increase of the appropriations Ord. No. 2018- _______ Page 2 of 4 2 limit for the District, which were approved by more than two-thirds vote by the qualified electors on April 8, 2014 (collectively, the “2014 Change Proceedings”); and, Whereas, subsequent to the 2014 Change Proceedings, the District received a petition signed by McMillin Summerly, LLC, a Delaware limited liability company, 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; 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 of Apportionment attached thereto as Attachment “A” (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, on November 27, 2018, following the close of the public hearing, the Council adopted Resolution No. 2018-___ (the “Change Resolution”), which called a special election on November 27, 2018, within Improvement Area II of CFD No. 2006-1 on the approval of the First Amended and Restated Rate and Method; and, Whereas, on November 27, 2018, a special election was held within Improvement Area II of CFD No. 2006-1 at which the qualified electors approved by more than a two-thirds vote, Proposition A, approving the First Amended and Restated Rate and Method for CFD No. 2006- 1. NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (SUMMERLY), ORDAINS AS FOLLOWS: Section 1.The above recitals are all true and correct. Section 2.By the passage of this Ordinance, the City Council authorizes the levy of a special tax within Improvement Area II of CFD No. 2006-1 at the maximum rates and in accordance with the First Amended and Restated Rate and Method. Section 3.The City Council is hereby further authorized to determine in each subsequent fiscal year, by ordinance, or by resolution if permitted by then applicable law, on or before August 10 of each year, or such later date as is permitted by law, the specific special tax rate and amount to be levied on each parcel of land in the Improvement Area II of the District pursuant to the First Amended and Restated Rate and Method. The special tax rates to be Ord. No. 2018- _______ Page 3 of 4 3 levied pursuant to the First Amended and Restated Rate and Method shall not exceed the applicable maximum rates set forth therein, but the special tax may be levied at a lower rate. Section 4.Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and the First Amended and Restated Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 2014-2010 or the Change Resolution, or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment of an existing special tax as provided in Section 53334 of the Act. Section 5.All of the collections of the special tax pursuant to the First Amended and Restated Rate and Method shall be used as provided for in the Act, Resolution No. 2014-2010 and the Change Resolution. The special tax shall be levied within Improvement Area II of the District only so long as needed for the purposes described in Resolution No. 2014-2010 and in the Change Resolution. Section 6.The special tax levied pursuant to the First Amended and Restated Rate and Method shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by the City Council from time to time. Section 7.As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of any bonded indebtedness of the District issued for Improvement Area II, together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on such bonds, order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax. Section 8.The Mayor shall sign this Ordinance and the City Clerk shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated in the City of Lake Elsinore. Section 9.This Ordinance relating to the levy of the special tax within Improvement Area II of the District shall take effect 30 days following its final passage, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the Act. Section 10.The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Riverside County Assessor and Treasurer-Tax Collector, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance. Passed and Adopted on this 27 th day of November, 2018. _____________________________ Natasha Johnson, Mayor Ord. No. 2018- _______ Page 4 of 4 4 Attest: __________________________ Susan M. Domen, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2018-____ 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: NOES: ABSENT: ABSTAIN: _____________________________ Susan M. Domen, MMC City Clerk WAIVER OF CERTAIN ELECTION PROCEDURES WITH RESPECT TO LANDOWNER ELECTION FOR CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1 (SUMMERLY) (IMPROVEMENT AREA II) The undersigned, Brian Milich, acting on behalf of McMillin Summerly, LLC, Delaware limited liability company (the “Owner”), hereby certifies to the City of Lake Elsinore (the “City”), with respect to the proposed change proceedings for Improvement Area II of City of Lake Elsinore Community Facilities District No. 2006-1 (Summerly) (the “District”), as follows: 1.The undersigned has been duly authorized by the Owner and possesses all authority necessary to execute this Waiver on behalf of the Owner in connection with the election to be called by the Council of the City with respect to Improvement Area II of the District. The Owner hereby appoints Brian Milich and to act as its authorized representative to vote in the election referred to herein and certifies his true and exact signature is set forth below: Signature of Brian Milich: __________________________________ 2.The Owner is the present owner of 33.42 acres of land located within the boundaries of Improvement Area II of the District. There are no registered voters residing within the territory owned by the Owner and have been none during the 90-day period preceding November 27, 2018. 3.The Owner has received notice of the November 27, 2018, public hearing (the “Public Hearing”) to be held by the Council of the City regarding the approval of a new Rate and Method of Apportionment for Improvement Area II of the District (the “Change Proceedings”). The Owner agrees that it received adequate notice of the November 27, 2018 Public Hearing. 4.The Owner has received from the City and the City has made available to the Owner necessary and relevant information regarding the proposed Change Proceedings, as set forth in Resolution No. 2018-133 adopted by the Council on October 23, 2018 (the “Resolution”). 5.The undersigned understands that if the Change Proceedings are undertaken on or after November 27, 2018, an election will be held by the District within Improvement Area II of the District on the proposition set forth in the sample ballot attached hereto as Exhibit “A” less than 90 days after the close of the November 27, 2018, Public Hearing as in accordance with Section 53326 of the Government Code, without the preparation of an impartial analysis, arguments or rebuttals concerning the election as provided for by Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate statement as provided in Section 9401 of the Elections Code and without further notice of such election as required pursuant to the Elections Code or the Government Code. Having been fully advised with respect to the election, in accordance with the authority contained in Government Code Sections 53326 and 53327, the Owner waives compliance with the foregoing provisions of the Elections Code and Government Code, with any time limits or other procedural requirements pertaining to the conduct of the election which are not being complied with and consents to having the election on any date on or after the close of the November 27, 2018, Public Hearing and consents to the closing of the election as soon as all ballots are received by the City Clerk. 2 6.The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot arguments and impartial analysis and the time limitations which apply in connection with scheduling, mailing and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient information regarding the imposition of the special tax as set forth in the Resolution to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challenging the validity of the election or the levy of the special tax to finance facilities and services for the benefit of the District or to repay bonded indebtedness issued by the District for Improvement Area II. Dated: November __, 2018 MCMILLIN SUMMERLY, LLC, a Delaware limited liability company By: PV Development Management LLC, a Delaware limited liability company, as property manager By: Pacific Ventures Management LLC, a Delaware limited liability company, its Manager By: Name: Brian Milich Title:Vice President A-1 EXHIBIT 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 the Improvements, Incidental Expenses, Services and other purposes described in Resolution Nos. 2014-010, 2014-011 and 2014-016 described 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? YES______ NO_______ REBECCA SPENCER Registrar of Voters State of California �{ O F k / j,# f, s i MQ� REGISTRAR OF VOTERS COUNTY OF RIVERSIDE CERTIFICATE OF REGISTRAR OF VOTERS ) ss County of Riverside ) ART T1NOCO Assistant Registrar of Voters I, Rebecca Spencer, Registrar of Voters of said County, hereby certify that: (A) I have been furnished a map describing the proposed boundary of Community Facilities District No. 2006-1 IA II (Summerly), of the City of Lake Elsinore, of the County of Riverside, State of California; (B) On October 26, 2018, 1 conducted, or caused to be conducted, a review of the voter registration records of the County of Riverside for the purpose of determining the number of voters registered to vote within the proposed boundary of Community Facilities District No. 2006- 1 IA li (Summerly), of the City of Lake Elsinore, of the County of Riverside. (C) There are 0 registered voters residing within the proposed boundary of Community Facilities District No. 2006-1 IA II (Summerly), of the City of Lake Elsinore, of the County of Riverside. IN WITNESS WHEREOF, I have executed this Certificate on this 26th day of October 2018, Rebecca Spencer Registrar of Votef�-, By: Arty i o TOMZIMM Assistant Registrar of Voters 2724 Gateway Drive I Riverside, CA 92507-0918 (951) 486-7200 1 TTY (951) 697-8966 1 FAX (951) 486-7272 www.voteinfo.net