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HomeMy WebLinkAbout2021-014 CFD 2006-6 (Tessera) Approving Amendment to Rate and Method and Calling Election RESOLUTION NO.2021-14 ARESOLUTION OF THE CITY COUNCILOF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORECOMMUNITY FACILITIES DISTRICT NO. 2006-6(TESSERA), APPROVING A FIRST AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT ANDCALLING AN ELECTIONTHEREIN Whereas, on June 27, 2006, the City Council of the City of Lake Elsinore (the “City Council”) adopted Resolution No. 2006-95 stating its intention to formCity of Lake Elsinore Community Facilities District No. 2006-6 (Tessera) (“Community Facilities District No. 2006-6” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title5 of the Government Code of the State of California (the “Act”); and, Whereas, on June 27, 2006, the City Council also adopted Resolution No.2006-096 stating its intention to incur bonded indebtedness within the District in the amount not to exceed $5,000,000 to finance the facilities and improvements identified in Resolution No. 2006-133 (collectively, the “Improvements”); and the incidental expenses to be incurred in financing the Improvements and forming and administering the District (the “Incidental Expenses”); and, Whereas, pursuant to Resolution No. 2006-95, the City Council also stated its intention to finance parks, open space and storm drain maintenance services (the “Services”) within the District through the levy of a services special tax in accordance with the Rate and Method (as defined below); and, Whereas, a notice calling a public hearing on August 8, 2006, was published as required by law relative to the intention of the City Council to establish Community Facilities District No.2006-6 and to incur bonded indebtedness within Community Facilities District No.2006-6; and, Whereas, on August 8, 2006, the City Council conducted a noticed public hearing to determine whether it should proceed with the establishment of Community Facilities District No.2006-6, issue bonds for the benefit of Community Facilities District No. 2006-6 to pay for the Improvements and Incidental Expenses and authorize the rate and method of apportionment of the special taxes in the form attached as Exhibit A to theResolution of Formation (as defined below) (the “Rate and Method”) to be levied within Community Facilities District No.2006-6 for the purposes described in the Resolution of Formation; and, Whereas, at the August 8, 2006, public hearing all persons desiring to be heard on all matters pertaining to the establishment of Community Facilities District No. 2006-6, the levy of the special taxes in accordance with the Rate and Method and the issuance of bonds within Community Facilities District No. 2006-6 to pay for the cost of the proposed Improvements and Incidental Expenses were heard and a full and fair hearing was held; and, Whereas, after the public hearing, on August 8, 2006, the City Council adopted Resolution Nos. 2006-133 (the “Resolution of Formation”) and 2006-134 (the “Resolution to Incur Bonded Indebtedness”) which formed the District and called a special election on August 8, 2006, within the District on propositions relating to the levying of the special taxes, 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 August 8, 2006; and, CC Res. No. 2021-14 Page 2of 5 Whereas, pursuant to Resolution No. 2006-135, adopted on August 8, 2006, the City Council, acting as the legislative body of Community Facilities District No. 2006-6, declared the results of the special election and directed the recording of notices of special tax liens within Community Facilities District No. 2006-6; and, Whereas, the District received a petition signed by JLJ, L.P., a California limited partnership (the “Owner”), which owns all of the land within Community Facilities District No. 2006- 6, which petition meets the requirements of Section 53332 of the Act, requesting thatthe District initiate proceedings to approve the new rate and method of apportionment for Community Facilities District No. 2006-6, attached to the Resolution of Intention (as defined below) as Attachment “B” (the “First Amended and Restated Rate and Method”); and, Whereas, on December 8, 2020, the City Council, acting as the legislative body of Community Facilities District No. 2006-6, adopted Resolution No. 2020-99 (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 hearingon January 12, 2021,was published as required by law relative to the intention of theCity Councilto consider the approval the First Amended and Restated Rate and Method; and, Whereas, on January 12, 2021,thisCouncilconducted a noticed public hearingto determine whether it should proceed with the approval of the First Amended and Restated Rate and Method; and, Whereas, at the January 12, 2021, public hearingall persons desiring to be heard on all matters pertaining to the approval of the First Amended and Restated Rate and Methodwere heard and a full and fair hearing was held; and, Whereas, theCity Councilhas determined that there have been fewer than twelve registered voters residing in the Districtfor the period of 90 days prior to January 12, 2021, and that the qualified electors in the Districtare the landowners within the District; and, Whereas, on the basis of all of the foregoing, theCity Councilhas determined at this time to proceed with the approval of the First Amended and Restated Rate and Methodas described herein. NOW, THEREFORE, THE CITY COUNCILOF CITY OF LAKE ELSINOREDOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOW: Section 1.Each of the above recitals is true and correct. Section 2.TheCity Councilhereby adopts the First Amended and Restated Rate and Methodas the rate and method for Community Facilities District No. 2006-6. Except where funds are otherwise available, it is the intention of theCity Council, subject to the approval of the eligible voters within Community Facilities District No. 2006-6, to levy the proposed special taxes at the rates for Community Facilities District No. 2006-6set forth in the First Amended and Restated Rate and Methodon all non-exempt property within Community Facilities District No. 2006-6 sufficient to pay for (i) the Improvements, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued by the District to finance the Improvements and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, CC Res. No. 2021-14 Page 3of 5 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 permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The First Amended and Restated Rate and Methodis described in detail in Attachment “B” to the Resolution of Intentionwhich isincorporated herein by this reference, and theCity Councilhereby finds that the First Amended and Restated Rate and Methodcontains sufficient detail to allow each landowner within the Districtto 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 2060- 61. Section 3.Upon recordation of a firstamended 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 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.2006-133, financing the Incidental Expenses, and carrying out the powers and purposes of Community Facilities District No.2006-6, 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 Section53345.3 of the Act. Section 5.Written protests against the approvalof the First Amended and Restated Rate and Methodhave not been filed by one-half or more of the registered voters within the boundaries of the District or by the property owners of one-half or more of the area of land within the boundaries of the District. TheCity Councilhereby finds that the approval of the First Amended and Restated Rate and Methodwith respect to Community Facilities District No.2006- 6has not been precluded by a majority protest pursuant to Section 53337of the Act. Section 6.An election is hereby called for Community Facilities District No. 2006-6 on the propositionof approving the First Amended and Restated Rate and Method. The proposition to be placed on the ballot for 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 firstamended and restated notice of special tax lien for the District. Section 7.Thedate of the foregoing electionfor the Districtshall be January 12, 2021, or such later date as is consented to by the City Clerkand the landowners within the District. The City Clerkshall conduct the election. Except as 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 electionshall be conducted in accordance with the provisions of law regulating elections of the Cityinsofar as such provisions are determined by the City Clerkto be applicable. Section 8.It is hereby found that there are not more than twelve registered voters within the territory of the District, and, pursuant to Section 53326 of the Act, each landowner who CC Res. No. 2021-14 Page 4of 5 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 the District. Section 9.This Resolution shall take effect immediately upon its adoption. Section 10.TheCityClerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions. Passed and Adoptedat a regular meeting of the City Council of the City of Lake Elsinore, th California, this 12day of January 2021. Robert E. Magee Mayor Attest: Candice Alvarez, MMC City Clerk STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss. CITY OF LAKE ELSINORE) I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2021-14was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of January 12, 2021and that the same was adopted by the following vote: AYES:Council Members Tisdale, Johnson, and Manos; Mayor Pro Tem Sheridan; and Mayor Magee NOES:None ABSENT:None ABSTAIN:None Candice Alvarez, MMC City Clerk CC Res. No. 2021-14 Page 5of 5 ATTACHMENT “A” SAMPLE BALLOT COMMUNITY FACILITIES DISTRICT NO.2006-6 (TESSERA) OF CITY OF LAKE ELSINORE SPECIAL ELECTION January 12, 2021 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 Clerkof City of Lake Elsinore and obtain another. PROPOSITION A: Shall a special tax with aFirst Amended and Restated Rate and Methodof apportionment (the “First Amended and Restated Rate and Method”)as provided in Attachment “B” to Resolution No. 2020-99 adopted bythe City Councilof the City of Lake Elsinoreon December 8, 2020, acting as the legislative body ofCity of Lake ElsinoreCommunity YES______ Facilities District No. 2006-6(Tessera)(the “District”),be levied to pay for the Improvements, Incidental Expenses and other purposes described in NO_______ Resolution No. 2006-133,including the payment of the principal of and interest on bonds issued to finance the Improvements and Incidental Expenses for theDistrict?