Loading...
HomeMy WebLinkAboutResolution - 2754 STATE OF CALIFORNIA ) RESOLUTION NO. 2754 w.. COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, APPROVING CERTAIN JOINT COMMUNITY FACILITIES AGREEMENTS BETWEEN THE CITY OF SAN JACINTO, CALIFORNIA AND THE SAN JACINTO UNIFIED SCHOOL DISTRICT CONCERNING COMMUNITY FACILITIES DISTRICT NO. 2005-3 OF THE SAN JACINTO UNIFIED SCHOOL DISTRICT (JD PIERCE COMPANY, INC. CFD 2005-3) WHEREAS, pursuant to Section 53316.2 of the California Government Code, the City of San Jacinto ("City") and the San Jacinto Unified School District ("SJUSD") are required to enter into a joint community facilities agreement in order for the proceeds of certain bonds issued by the Community Facilities District No. 2005-3 of the San Jacinto Unified School District (the "CFD") to be used by the City for the acquisition, construction and installation of city facilities pursuant to the Mello-Roos Community Facilities District Act of 1982 (the "Act'), and WHEREAS, pursuant to Section 53316,2 of the California Government Code, the City Council ("City Council") of the City wishes to approve the attached joint community facilities agreements with SJUSD for use of bond proceeds for the acquisition, construction and installation of city facilities; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED determined and ordered by the City Council of the City of San Jacinto: SECTION 1. Incorporation of Recitals. The City Council hereby finds and determines that the Recitals of this Resolution are true and correct and are hereby incorporated into this Resolution as though fully set forth herein. SECTION 2. Approval of Agreements. The City Council of the City of San Jacinto hereby approves the Joint Community Facilities Agreement between the City of San Jacinto, California and the San Jacinto Unified School District, in the form attached hereto as Exhibit "A" and incorporated by reference herein. The City Manager is hereby authorized to execute and otherwise administer such agreement and any amendments thereto in consultation with the City Attorney, in accordance with the Mello-Roos Community Facilities District Act of 1982. NW Page 1 of 2 NOW SECTION 3. The approval of the accompanying agreement shall not result in a violation of the City's Land Secured Financing Policy, including, without limitation, that policy's debt burden limitation, when applied to property that is located within the subject SJUSD CFDs and the City's landscape, lighting and park district LLPD #2, road and street Assessment District No. 2003-1 and police and fire services CFD No. 2003-1. Execution of the attached agreements shall be conditioned upon the execution of an enforceable contract between the subject property owner(s) and City, in a form and substance acceptable to the City Manager and City Attorney, wherein said property owner(s) agree(s) to include the subject property within the City's landscape, lighting and park district LLPD #2, road and street Assessment District No_ 2003-1 and police and fire services CFD No. 2003-1. SECTION 4. Effective Date. This Resolution shall become effective upon its adoption. APPROVED and ADOPTED, this 16th day of June, 2005, by the following vote Ayes: Ayres, Ritchie, Shaw, Stubblefield Nays: None 1%W Absent: Carlson-Buydos Abstained: None City of San Jacinto is Ca -Buydos, Mayor ATTEST: Dt vukkt,,� c D(Drothy Cho ard, City Clerk APPROVED AS TO FORM: City A�ney, Gity o San Jacinto Best, Best & Krieger, LLC. Page 2 of 2 JOINT COMMUNITY FACILITIES AGREEMENT by and among SAN JACINTO UNIFIED SCHOOL DISTRICT, CITY OF SAN JACINTO, and SAN JACINTO INVESTORS LAND FUND, L.P. Dated as of 1, 2005 Community Facilities District No. 2005-3 of the San Jacinto Unified School District RVN'13'-M::M`69421K I JOINT COMMUNITY FACILITIES AGREEMENT THIS JOINT COMMUNITY FACILITIES AGREEMENT (this "Facilities Agreement"), dated as of _ 1, 2005. is by and among the SAN JACINTO UNIFIED SCHOOL DISTRICT, a school district organized and existing under and by virtue of the laws of the State of California (the "School District"), the CITY OF SAN JACINTO, a municipal corporation and general law city organized and existing under and by virtue of the laws of the State of California (the "City"), and SAN JACINTO INVESTORS LAND FUND, L.P., a California Limited Partnership (the "Property Owner"). WITNESSETH: WHEREAS, the Property Owner has submitted to the Board of Trustees of the School District (the "Board of Trustees") a petition to institute proceedings under the Mello-Roos Community Facilities Act of 1982 (the"Act')to establish a community facilities district; WHEREAS, pursuant to the Act and said petition, the Board of Trustees has instituted proceedings to establish Community Facilities District No 2005-3 of the San Jacinto Unified School District (the "Community Facilities District"), to authorize the levy of special taxes (the "Special Taxes") upon the land within the Community Facilities District and to issue bonds (the "Bonds") secured by the Special Taxes, the proceeds of which are to be used to finance certain public facilities, WHEREAS, the Property Owner owns all of the land within the proposed boundaries of `. the Community Facilities District; WHEREAS, the facilities proposed to be financed by the Community Facilities District include certain facilities to be owned and operated by the City (the "City Facilities") and certain facilities to be owned and operated by Eastern Municipal Water District (the "Water District Facilities"); WHEREAS, all of the facilities proposed to be financed by the Community Facilities District other than the City Facilities and the Water District Facilities (the "School District Facilities") will be owned and operated by the School District; WHEREAS, Section 533 16.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by an entity other than the agency that created the community facilities district only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to said Section, WHEREAS, Section 53316.2 of the Act further provides that at any time prior to the adoption of the resolution of formation creating a community facilities district, the legislative bodies of two or more local agencies may enter into a joint community facilities agreement pursuant to said Section and Sections 53316.4 and 533 16.6 of the Act to exercise any power authorized by the Act with respect to the community facilities district being created if the legislative body of each entity adopts a resolution declaring that such a joint agreement would be beneficial to the residents of that entity; R VPUni.M I'M VJ421 8.1 WHEREAS, the Board of Trustees and the City Council of the City have each adopted such a resolution; WHEREAS, subsection (e) of Section 53316 2 of the Act provides that, notwithstanding any other provision of the Act, no local agency which is party to a joint exercise of powers agreement or joint community facilities agreement shall have primary responsibility for formation of a community facilities district unless that agency is one or more of certain specified types of agencies, including an agency that is reasonably expected to have responsibility for providing facilities or services to be financed by a larger share of the proceeds of special taxes and bonds of the community facilities district or districts created pursuant to the joint exercise of powers agreement or the joint community facilities agreement than any other local agency, WHEREAS, the School District has determined that the School District Facilities will be financed by a larger share of the proceeds of the Special "faxes and the Bonds than the City Facilities or the Water District Facilities; and WHEREAS, the School District and the City desire 10 enter into this Facilities Agreement in accordance with Sections 53316.2, 53346.4 and 53316.6 of the Act in order to provide for the financing of the City Facilities through the issuance of Bonds by the Community Facilities District; NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows Section 1. The Community Facilities District; Issuance of Bonds. The Board of Trustees shall, in its sole discretion, determine whether and when it may be appropriate to establish the Community Facilities District. in no event shall the City have any right to compel the Board of Trustees to establish the Community Facilities District. The School District shall engage such consultants as it may deem necessary or appropriate to facilitate the establishment of the Community Facilities District. The City shall have no responsibility for any costs incurred by the School District in connection with the establishment of the Community Facilities District. It is anticipated that the Community Facilities District will issue Bonds to finance the acquisition, construction and installation of the School District Facilities, the City Facilities and the Water District Facilities. if the Community Facilities District is established. the Board of Trustees, acting as the legislative body of the Community Facilities District, shall, in its sole discretion, determine whether, when, under what conditions and to what extent Bonds shall be issued to finance the acquisition, construction and installation of the School District Facilities, the City Facilities or the Water District Facilities, or any combination thereof, In no event shall the City have anv right to compel the Community Facilities District to issue Bonds to finance the acquisition, construction and installation of City Facilities or to disburse Bond proceeds to pay the costs of the acquisition, construction and installation of City Facilities. The Property Owner has annexed the property proposed to be included within the Community Facilities District (the "Property") into the City's police and fire services district (CFD No. 2003-1). In addition, the Property Owner has petitioned the City and agrees to annex the Property into the City's street assessment district (AD 2003-1) and Landscape and Lighting H V P111V R41-N1,694218.1 2 District No. 2 (LLPD No. 2). The levy of special taxes by the School District, when combined rr. with the levy of special taxes by the City under the City's police and fire services community facilities district (CFD No. 2003-1), the levy of special assessments under the City's street assessment district (AD 2003-1) and the levy of special assessments under the City's Landscape and Lighting District No. 2 (LLPD No. 2), shall not result in a violation of the City's Land Secured Financing Policy or the School District's Land Secured Financing Policy, including, without limitation, that policy's debt burden limitation, when applied to the Property that is located within the Community Facilities District. Section 2. City Facilities. The City Facilities, including any real or tangible property which is to be purchased, constructed, expanded or rehabilitated, are described in Exhibit A attached hereto. It is anticipated that the Community Facilities District will provide approximately $577,989 in Bond proceeds to finance the acquisition, construction and installation of the City Facilities. The exact amount of Bond Proceeds which will be available to finance the City Facilities will be determined by the parties at the time of the funding of the City Facilities Account, if the Community Facilities District issues Bonds, a portion of the proceeds of which are to be available to finance the acquisition, construction and installation of the City Facilities, the School District shall, or shall cause the Community Facilities District to, notify the City of the amount of such proceeds available for such purpose within 15 days of such proceeds becoming so available The School District makes no representation that, if proceeds of Bonds are made available to finance the acquisition, construction and installation of the City Facilities, that such proceeds will be sufficient to finance the acquisition, construction and installation of all of the City Facilities, and neither the School District nor the Community Facilities District shall have any liability to the City if such proceeds are insufficient for such purpose If the Community Facilities District does not issue Bonds to finance the acquisition, construction and installation of the City Facilities, neither the School District nor the Community Facilities District shall have any obligation to provide any amounts to finance or pay the costs of the acquisition, construction and installation of the City Facilities. The City shall not apply any of the proceeds of the Bonds to the purchase of any City Facilities unless such City Facilities were constructed as if they had been constructed under the direction and supervision, or under the authority of, the City. Section 3. Disbursements. Bond proceeds available for the acquisition, construction and installation of the City Facilities shall be deposited in a special account (the "City Facilities Account") to be established under the Indenture pursuant to which the Bonds are issued Moneys on deposit in the City Facilities Account shall be invested and disbursed at the direction of the Community Facilities District. To the extent that Bond proceeds are available therefore, the Community Facilities District shall cause disbursements to be made from the City Facilities Account from time to time to pay the costs of the acquisition, construction and installation of the City Facilities upon submission of a written request of the City stating (a) the name and address of the person to whom payment is to be made, (b) the amount to be paid, (c) that an obligation in such amount 140, has been incurred by the City, (d)the purpose for which the obligation to be paid was incurred, R vrnnAM I'NI,G94213.1 3 (e) that each item of the obligation to be paid constitutes a cost of the City Facilities, (t) that the obligation to be paid has not been the subject of a prior City request for disbursement from the City Facilities Account, and (g) if the amount requested to be disbursed is to be applied to the purchase of any City Facilities, that such City Facilities were constructed as if they had been constructed under the direction and supervision, or under the authority of the City. The City shall include in its request for reimbursement, and the Community Facilities District shall pay, from Special Taxes, any and all reasonable actual and administrative overhead costs of the City associated with (1) maintaining the City Facilities Account, (2) reviewing and providing requested disbursements, (3) preparing and providing; any earnings reports necessitated by this Agreement and (4) preparing and providing any annual certified reports necessitated by this Agreement. The Community Facilities District shall process in a timely manner written requests for disbursements received from the City that conform to the requirements hereof, Section 4. Construction, Ownership and Maintenance of School District Facilities and City Facilities. The School District shall be solely responsible for the acquisition, construction and installation of the School District Facilities, and the City shall have no responsibility therefore or liability with respect thereto. The School District Facilities shall be and remain the sole and separate property of the School District and shall be operated, maintained and utilized by the School District The City shall not have any ownership interest in the School District Facilities, and the City shall have no responsibility for the operation, maintenance or utilization orthe School District Facilities or any liability with respect thereto. The City shall be solely responsible for the acquisition, construction and installation of the City Facilities, and the School District shall have no responsibility therefore or liability with respect thereto The City Facilities shall be and remain the sole and separate property of the City and shall be operated, maintained and utilized by the City. The School District shall not have any ownership interest in the City Facilities, and the School District shall have no responsibility for the operation, maintenance or utilization of the City Facilities or any liability with respect thereto. Section 5. Tax Matters. In connection with the issuance of any Bonds, a portion of the proceeds of which are to be made available to finance the acquisition, construction and installation of City Facilities, the City agrees to execute and deliver such certifications and agreements as may be reasonably required in order for bond counsel to conclude that interest on such Bonds will be excluded from gross income under Section 103 of the Internal Revenue Code of 1996_ Section b. Indemnification. The School District agrees to protect, indemnify, defend and hold the City, and its officers, employees and agents, and each of them, harmless from and against any and all claims, losses, expenses, suits actions, decrees, judgments, awards, attorneys' fees and court costs which the City, or its officers, employees and agents, or any combination thereof, may suffer or which may be sought against or recovered or obtained from the City, or its officers, employees or agents, or any combination thereof, as a result of or by reason of or arising out of or in consequence of the acquisition, construction, installation, operation, maintenance or utilization of the School District Facilities_ If the School District fails RV 11%N IjW(P4218.1 4 to do so, the City shall have the right, but not the obligation, to defend the same and charge all of o., the direct and incidental costs of such defense, including any attorneys' fees or court costs, to and recover the same from the School District No indemnification is required to be paid by the School District for any claim, loss or expense arising from the willful misconduct or negligence of the City, or its officers, employees or agents. The City agrees to protect, indemnify, defend and hold the School District and the Community Facilities District, and their respective officers, employees and agents, and each of them, harmless from and against any and all claims, losses, expenses, suits actions, decrees, judgments, awards, attorneys' fees and court costs which the School District or the Community Facilities District, or their respective officers, employees and agents, or any combination thereof, may suffer or which may be sought against or recovered or obtained from the School District or the Community Facilities District, or their respective officers, employees or agents, or any combination thereof, as a result of or by reason of or arising out of or in consequence of the acquisition, construction, installation, operation, maintenance or utilization of the City Facilities. If the City fails to do so, the School District and the Community Facilities District shall have the right, but not the obligation, to defend the same and charge all of the direct and incidental costs of such defense, including any attorneys' fees or court costs, to and recover the same from the City. No indemnification is required to be paid by the City for any claim, loss or expense arising from the willful misconduct or negligence of the School District or the Community Facilities District, or their respective officers, employees or agents Section 7. Nature of Agreement; Allocation of Special Taxes. This Facilities Agreement shall constitute a joint community facilities agreement entered into pursuant to Sections 53316.2, 53316.4 and 53316.6 of the Act. The entire amount of the proceeds of the Special Taxes shall be allocated and distributed to the School District. Section S. Third-Party BeneCciary. If and when established, the Community Facilities District shall he a third-party beneficiary of this Facilities Agreement. Section 4. Costs. The Property Owner understands and hereby agrees that the Property Owner is solely responsible for all costs of the City associated with recording a tentative tract map, issuing a building permit and issuing a certificate of occupancy associated with the development of Property Owner's Property. Any such costs which are not financed pursuant to this Facilities Agreement shall be financed solely by the Property Owner Section 10. Limitation of Rights to Parties. Nothing in this Facilities Agreement expressed or implied is intended or shall be construed to give to any person other than the School District, the City, the Property Owner and the Community Facilities District, any legal or equitable right, remedy or claim under or in respect of this Facilities Agreement or any covenant, condition or provision herein contained, and all such covenants, conditions and provisions are and shall be held to be for the sole and exclusive benefit of the School District, the City, the Property Owner and the Community Facilities District. H V PI Ui.V7['4r69A21&1 5 Section 11. Notices. All written notices to be given hereunder shall be given to the It*. party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely: If to the School District San Jacinto Unified School District 2045 South San Jacinto Avenue San Jacinto, California 92.583 Attention: Assistant Superintendent, Business and Facilities If to the City: City of San Jacinto 201 East Main Street San Jacinto, California 92583 Attention: City Manager If to the Owner- San Jacinto Investors Land Fund, L P. 2222 Martin Street, Suite 100 Irvine, California92612 Attention: President Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if personally served or delivered, upon delivery, (b) if given by electronic communication, whether by telex, telegram or telecopier, upon the sender's receipt of an appropriate answerback or other written acknowledgment, (c) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, (d) if given by overnight courier, with courier charges prepaid, 24 hours after delivery to said overnight courier, or (e) if given by any other means, upon delivery at the address specified in this Section. Section 12. California Law. This Facilities Agreement shall be governed and construed in accordance with the laws of the State of California. Section 13. Severability. If any part of this Facilities Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Facilities Agreement shall be given effect to the fullest extent reasonably possible. Section 14. Amendment. No provision of this Facilities Agreement may be amended or supplemented except by an agreement in writing which is signed by the parties hereto or their respective successors in interest and indicates that it is an amendment of this Facilities Agreement, Section 15. Further Assurances. Each of the parties to this Facilities Agreement shall execute and deliver any and all additional papers, documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations under this Facilities Agreement and to carry out the intent and agreements of the parties to this Facilities Agreement. RVFMANIUM1694218 1 6 Section 16. Successors. This Facilities Agreement shall be binding upon and inure to rw- the benefit of the successors of the parties hereto Section 17. Counterparts. This Facilities Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument [Remainder of page left intentionally blank] Nor NW RVPl ini IUM694218.1 7 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day �,. and year first above written. SAN JACINTO UNIFIED SCHOOL DISTRICT By - - Joseph Busek Assistant Superintendent Business and Facilities CITY OF SAN JACINTO By: _ SAN JACINTO INVESTORS LAND FUND, L.P., a California Limited Partnership By JDP Investment Company, Inc., a California corporation By Jennings D- Pierce, Jr., Managing; Member R VIII]V M 1 A1.6742 18 l �' EXHIBIT A DESCRIPTION OF CITY FACILITIES The types of facilities to be financed by the City are street improvements including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, public parks and leuieation facilities and land, fire station improvements, rights-of-way and easements necessary for any of such facilities. Lw. r.. RVPl!n'Nl \1`694218.1 A-1 NORTH SAN JACINTO SEWER PROJECT, PHASE III DESCRIPTION OF FACILITIES The North San Jacinto Sewer Improvement Project, Phase III is an interceptor sewer ranging in size from 18" in diameter to 21" in diameter. The general alignment of the Sewer Improvement Project is along the north side of the Ramona Expressway between State Street and Vernon Avenue. Specifically, the 21" diameter sewer begins just east of State Street at the terminus of the North San Jacinto Sewer Improvement Project, Phase I I. The 21" sewer terminates and the 18" sewer begins approximately 1,070 feet west of San Jacinto Street and continues easterly to Vernon Avenue. The project includes 3,730 lineal feet of 18 inch diameter pipe and approximately 2,852 lineal feet of 21 inch diameter pipe. The average depth is approximately 24 feet The North San Jacinto Sewer Improvement Project, Phase III was designed to provide sanitary sewer service to mostly undeveloped properties in the east San Jacinto area. The proposed service boundary is more precisely described as Soboba Road on the north,the foothills east of Soboba Road on the east, Main Street to the south, and State Street on the west. The vast majority of the undeveloped properties are currently zoned for single family residential development At this time, there are several development proposals which are dependent on the North San Jacinto Sewer Improvement Project,Phase III for service. Current development proposals are listed as follows: Tract 30379 A 177 lot single family residential subdivision proposed by J.D. Pierce Company, Inc., located between Vernon Avenue and Camino Los Banos, south of the Ramona Expressway. Tract 32582 A 192 lot single family residential subdivision proposed by J D Pierce Company, Inc., located between Alessandro Avenue and Vernon Avenue, south of the Ramona Expressway Tract 32053 A 182 lot single family residential subdivision proposed by CNH Homes, located at the northeast corner of Main Street and Camino Los Banos. Tract 32376 An approximate 321 lot single family residential subdivision proposed by Southland Development, located north of the intersection of the Ramona Expressway and San Jacinto Street. MEMORANDUM June 9, 2005 From: Bernie Simon, Finance Director Subj: Recommendation to Approve JCFA with San Jacinto School District JD Pierce Tract 30379 The Departments of Community Development, Engineering, Finance and Special Districts have reviewed the request of the developer to enter into a joint community facilities agreement to assist the developer in financing infrastructure and fees. Staff finds that developer of Tract 30379 is providing infrastructure improvements benefiting the city as described in "North San Jacinto Sewer Project, Phase III, Description of Facilities'. Such infrastructure will benefit a number of developments including the future commercial developments at Ramona Expressway and State Street, as noted in the document. The tax burden on properties in Tract 30379 is not expected to be above 2.0%. The current projections show a slight amount above 2,0%, but that is due to the conservative sales figures shown Should the sales prices result in a tax burden above the Land Financing Policy allowed rate of 2.0%, in any phase, building permits will be withheld on any future development in tract 30379-1 or 30379 Therefore in this particular case, staff would recommend the City enter into a JCFA with the San Jacinto School District FINANCE DEPARTMENT