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HomeMy WebLinkAboutResolution - 2006 RESOLUTION NO. 2006 RESOLUTION OF THE CITY OF SAN JACINTO APPROVING A COOPERATION AGREEMENT REGARDING SCHOOL FACILITIES CONSTRUCTION WHEREAS, the City of San Jacinto (the "City") has experienced significant growth in the past three years; and WHEREAS, the growth experienced by the City has caused a strain on various public facilities, including school facilities; and WHEREAS, the City has caused to be prepared a School Impact Mitigation Plan, incorporated herein by reference (the "Mitigation Plan") , which demonstrates that anticipated residential developments within the City will generate additional students within the San Jacinto Unified School District (the "School District") ; and WHEREAS, the San Jacinto Redevelopment Agency (the "Agency") plans to establish or amend redevelopment plans relating to redevelopment project areas which will include within their boundaries a portion of the anticipated residential developments; and WHEREAS, the School District has no school facilities available to house additional students generated by new residential development within the City; and WHEREAS, the School District desires the assistance of the City in conditioning residential development within the City on the inclusion of the property relating to such development in the CFD; and WHEREAS, the School District has heretofore submitted to the City and the Agency substantial facts and evidence which clearly indicate, and the City hereby finds, that the School District will suffer financial burden and detriment as a result of the adoption of redevelopment plans and amendments by the Agency; and WHEREAS, the City desires to set forth in a Cooperation Agreement the terms and conditions pursuant to which it will assist the School District and pursuant to which the Agency will allocate certain tax increment revenues to the School District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Jacinto as follows: Section 1. The form of Cooperation Agreement between the City and the School District attached hereto as Exhibit A is hereby approved. The officers of the City and 2E4Z01QZ.WP0 11/14/91 their authorized representatives are, and each of them acting alone is, hereby authorized and directed, for and in the name of and on behalf of the City, to execute and deliver the Cooperation Agreement in substantially the form attached hereto and presented to and considered at this meeting, with such changes therein as the officer or authorized representative executing the same on behalf of the City may approve, in such officer' s discretion, as being in the best interest of the City, such approval to be conclusively evidenced by the execution and delivery thereof. Section 2 . All actions heretofore taken by any officer or officers of the City, as may be authorized by the City, with respect to the matters set forth in the Cooperation Agreement are hereby approved, confirmed and ratified. Section 3 . The officers of the City are, and each of them acting alone is, hereby authorized and directed to take such actions and to execute such documents as may be necessary to effectuate the purposes of this Resolution. This Resolution shall take affect immediately upon its passage. The forgoing Resolution was adopted by the City Council of the City of San Jacinto on the 19th day of November, 1991. CITY OF SAN JACINTO �7 ATTEST; Mayor `Deputy City Clerk The foregoing resolution was ap0proved by the following vote: AYES: Councilmembers Ford, Hafliger, Leahy, Richards and Mayor Boykin NOES: None ABSENT: None ABSTAIN: None I hereby certify that the foregoing is a full, true and correct copy of Resolution No. 2006, approved by the City Council the 19th Day of November, 1991. zeazoiQz.wao 2 11/14/91 Deputy City Clerk EXHIBIT A COOPERATION AGREEMENT THIS COOPERATION AGREEMENT dated as of November 19, 1991, by and between the CITY OF SAN JACINTO (the "City") , a political subdivision of the State of California (the "State") , and the SAN JACINTO UNIFIED SCHOOL DISTRICT (the "School District") , a school district organized and existing under the laws of the State; W I T N E S S E T H WHEREAS, the School District plans to establish local school facilities financing programs throughout the School District; and WHEREAS, in connection with the local school facilities financing program the School District desires to establish with the City, the School District plans to establish one or more community facilities districts, which will include certain undeveloped property lying within the boundaries of the School District and the City (collectively, the 11=11) , and WHEREAS, the CFD will be established pursuant to the Mello-Roos Community Facilities Act of 1982 , as amended, set forth at Title 5, Division 2 , Chapter 2 . 5 of the California Government Code (commencing with Section 53311) ; and WHEREAS, the School District plans to levy a special tax on the property lying within the boundaries of the CFD in order to fund the cost of additional school facilities needed to house the student population to be generated within the boundaries of the CFD from new residential development; and WHEREAS, the School District desires the assistance of the City in conditioning residential development within the City on the inclusion of the property relating to such development in the CFD; and WHEREAS, the City desires to set forth the terms and conditions pursuant to which it will assist the School District in including property in the CFD; NOW, THEREFORE, in consideration of the terms and conditions herein set forth, the City and the School District do hereby agree as follows: 2E9Z003I 11/14/91 Section 1. Definitions. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, set forth at Title 5, Division 2, Chapter 2 . 5 of the California Government Code (commencing with Section 53311) . "Additional Debt" has the meaning given to such term in Section 9 (d) of this Cooperation Agreement. "Agency" means the San Jacinto Redevelopment Agency. "Assessor' s Parcel" has the meaning given to such term in Exhibit A to this Cooperation Agreement. "Authorized Facilities" means $123 , 454, 861 plus such additional amount as the School District and the City agree in writing is appropriate to fund the cost of School Facilities relating to Eligible Assessor's Parcels (as increased for inflation in each fiscal year, commencing July lF 1992 , by an amount equal to the Lee Saylor Cost of Construction Index for Class D construction) , which is the aggregate amount that may be spent on School Facilities using the proceeds of Bonds or Special Taxes. "Bond Requ irements" has the meaning given to such term in Exhibit A to this Cooperation Agreement. "Bonds" means the bonds permitted to be issued by the CFD pursuant to the Act in order to provide the funds to construct the School Facilities. 11CFD11 means, collectively, all community facilities districts established by the School District in accordance with the Act, but only to the extent of Assessor's Parcels located within the boundaries of the City. "Developed Property" has the meaning given to such term in Exhibit A to this Cooperation Agreement. "Developed Property Tax" has the meaning given to such term in Exhibit A to this Cooperation Agreement. "Eligible Assessor' s Parcels" has the meaning given to such term in Exhibit A to this Cooperation Agreement. "Exempt Property" means any Assessor' s Parcel lying within the boundaries of the CFD which: (i) is property of the State, entities of the State, federal or 2E9Z0031 2 11114/91 other local governments, except as otherwise provided by Section 53317 . 3 of the Act, (ii) is Developed Property and has been subject to the levy of a Developed Property Tax for 30 fiscal years, (iii) has been used, zoned, authorized or designated for commercial or industrial use on the applicable general plan, specific plan or the equivalent thereof which the City utilizes and relies upon for land use planning purposes and for the approval of the development of real property, or (iv) is "common area" of a common interest development as those terms are used and defined in Section 1351 of the California Civil Code or any similar subsequent legislation. For purposes of interpreting Sections 53317 . 3 and 53317. 5 of the Act, any Assessor' s Parcel acquired by a public entity shall be deemed Exempt Property to the extent it is Undeveloped Property at the time of its acquisition. "Lease Purchase Law" means the Leroy F. Green State School Building Lease Purchase Law, set forth at Title 1, Division 10, Chapter 22 of the California Education Code (commencing with Section 17700) , and all standards and regulations adopted by appropriate State agencies in the implementation of such law. "Ordinance" has the meaning given to that term in Section 3 of this Cooperation Agreement. "School District" means the San Jacinto Unified School District. "School District Attendance Areas" means the School District attendance areas for which the majority of the students serviced reside within the boundaries of the City. "School Facilities" means the educational facilities identified in Exhibit C attached hereto and by this reference incorporated herein which will be needed to mitigate the effects of the student population projected to be generated as a result of development within the boundaries of the CFD. "Special Funds" means any contributions, dedications, payments, grants or other types of funds (including State or federal funds) received by the School District and applied to the cost of financing any enhancements to a School Facility which do not increase the square footage thereof beyond that permitted in accordance with Section 7 . "Special Tax" means a special tax calculated and levied on property lying within the boundaries of the CFD pursuant to Section 4 of this Cooperation Agreement and Exhibit A attached hereto. 2E9Z003I 3 17(14/97 "State" means the State of California. "Trust Account" has the meaning given to that term in Section 12 . "Undeveloped Property" has the meaning given to such term in Exhibit A to this Cooperation Agreement. Section 2 . Formation of CFD; Authorized Facilities. The School District hereby agrees to form the CFD pursuant to the Act as soon as possible following execution of this Agreement. Upon formation of the CFD, the Board of Trustees of the School District, acting as the legislative body of the CFD, shall approve, and authorize an appropriate officer to execute, this Cooperation Agreement on behalf of the CFD. The Authorized Facilities shall be reduced to the extent that (a) any School Facility is constructed or funded, in whole or in part, from allocations, moneys or funds received by the School District from the State Allocation Board or any other state or federal agency, department or division other than from Special Funds, by an amount equal to the pro rats portion of the amount of Authorized Facilities then allocable to the cost of such School Facility or portion thereof (as determined by reference to Exhibit D, after adjustments for inflation) financed by such allocation, moneys or funds, (b) any School Facility is deemed unnecessary by the School District, by an amount equal to the pro rata portion of the amount of Authorized Facilities then allocable to such School Facility, or portion thereof (as determined by reference to Exhibit D, after adjustments for inflation) , or (c) any school facility acquired, constructed, purchased or leased outside School District Attendance Areas is funded by the State using or relying upon the student population generated by property lying within the CFD (the IICFD Students") , by an amount equal to the product of (1) the amount of such State funding times (2) a fraction the numerator of which is the number of students identified on the application in order to make need-based qualifications (the "Total Students") which constitute CFD Students and the denominator of which is the Total Students. Notwithstanding the foregoing sentence, Authorized Facilities shall be reduced pursuant to clauses (a) and (c) of this Section 2 only after the School District has received $30, 863,715 of money from the State Allocation Board or any other state or federal agency, department or division which money would otherwise have been applied to reduce the Authorized Facilities. Section 3 . Adoption of Ordinance. Prior to, or as soon as possible after, execution of this Agreement, the City will adopt an ordinance substantially in the form of 2E9Z003I 4 11114191 Exhibit B attached hereto and by this reference incorporated herein (the "Ordinance") . The City hereby covenants that it will take no action to rescind or amend the Ordinance without the written approval of the School District; provided, however, that the City may rescind or amend the Ordinance in its sole discretion if (i) it believes the School District has failed to perform any of its obligations, or materially breached any provisions applicable to it, hereunder, and (ii) the School District has failed to remedy such failure or breach to the reasonable satisfaction of the City within 30 days after written notice thereof. The City hereby agrees to consider and enter this Cooperation Agreement and the Ordinance into the record of the proceedings for the public hearing on any general plan amendment, change of zone, specific plan or specific plan amendment or development agreement with respect to property lying within the boundaries of the School District. Furthermore, the City may elect, in its sole discretion, to waive any condition imposed on a development project pursuant to the Ordinance if it determines that delays in the formation of the first CFD impose an unreasonable burden on such development project. Section 4. special Tax. The Special Tax may be levied and collected to provide for payment of debt service or other obligations of the CFD in the event that sufficient funds for the School Facilities are not provided by the State or other sources. The Special Tax shall be calculated in accordance with Exhibit A attached hereto and by this reference incorporated herein. All of the property within the boundaries of the CFD, except Exempt Property, shall be taxed for the purposes of, and to the extent and in the manner herein provided, pursuant to the Special Tax formula. Each year the School District shall use its best efforts to permanently reduce the maximum amount of Special Taxes that may be levied in any future fiscal year on any property lying within the CFD pursuant to Exhibit A in light of the amount the Authorized Facilities are reduced, if any, pursuant to the provisions of this Cooperation Agreement (including but not limited to Section 2 hereof) . In order to permanently reduce the maximum amount of Special Taxes, the School District, consistent with applicable law, shall adopt a resolution which cannot be amended declaring its intention to reduce the maximum amount of Special Taxes which may be levied in any future fiscal year. Section 5. Reduction in Special Taxes. In addition to the Special Taxes authorized pursuant to Section 4 , the School District may levy or impose other taxes or assessments on property lying within the CFD (collectively, the "Additional Taxes") subject to the following conditions: MZ603I 5 21/14/91 (a) Upon the levy or imposition of such Additional Taxes, the School District shall reduce the Special Tax levied on each Assessor's Parcel within the CFD in an amount equal to the sum of (A) (1) with respect to ad valorem taxes, to the ad valorem taxes levied on such Assessor's Parcel in the immediately preceding Fiscal Year, and (2) with respect to all other Additional Taxes, to the other Additional Taxes proposed to be levied on such Assessor' s Parcel in such Fiscal Year, less (B) $30. 00. (b) The maximum aggregate amount of Additional Taxes which may be levied on any Assessor' s Parcel lying within the CFD shall not exceed the maximum Special Taxes which otherwise could be levied on such Assessor' s Parcel, absent the reduction required by Section 5 (a) . The School District hereby agrees to commence action as soon as feasible to place a general obligation bond measure relating to school facilities before the voters of the School District. section 6. State Aid. The School District will use its best efforts to continuously and diligently (including timely filing of all applications therefor) pursue all legally available State funding, or funding available from any other source, for the construction or acquisition of school facilities (pursuant to the Lease Purchase Law or any other provision of applicable law) . The School District covenants to use its best efforts to maximize State funding beyond the local match or contribution requirements, for the school facilities to be built on a timely basis. In applying for State funding, the School District shall take all efforts to maximize the amount of State funding that will be applicable to school facilities acquired, constructed or leased to house the student population generated (i) within the boundaries of the City, or (ii) to the extent the School District has established other local school facilities financing programs pursuant to Section 8 hereof, on a pro rata basis between the city and the jurisdictions of such other local school facilities financing programs. To the extent the School District uses or relies on the student population currently existing or generated within the boundaries of the City to qualify for State funding for anything other than a School Facility, the School District shall reduce the Authorized Facilities in accordance with Section 2. Section 7. School Facilities. All proceeds from the levy of the Special Taxes or from Bonds shall be used 2E9Z0031 6 11/14191 only (i) to acquire, construct, purchase or lease School Facilities located within School District Attendance Areas, (ii) to pay any Bond Requirements of the Bonds issued by the CFD or (iii) to the extent authorized by law, to pay for any State matching contribution or fee required pursuant to the Lease Purchase Law or any subsequent law with respect to the School Facilities. The School Facilities will be used primarily to house students generated by Assessor' s Parcels within the boundaries of the CFD and the City. The School District shall build each School Facility in accordance with the State Allocation Board (or any similar agency or entity) specifications, including but not limited to size and cost, which exist at the time the School District submits to the State Allocation Board (or any similar agency or entity) an application to finance such School Facility, or as such specifications may be amended from time to time. In the event that the State Allocation Board (or any similar agency or entity) no longer exists, the School District shall construct each School Facility in accordance with the standards and specifications used by similar school districts in the State. Section 8. Other Local school Facilities Financing Programs. The School District shall use its best efforts to establish other local school facilities financing programs similar to the local school facilities financing program established pursuant to this Cooperation Agreement on all undeveloped property lying both within its boundaries and outside the boundaries of the City. The economic impact on each Assessor' s Parcel of such property shall be uniform and equal to the maximum extent possible to the economic impact of the Special Tax levied on equivalent Assessor' s Parcels in the CFD. Section 9. Mitigation. The owner of any Assessor's Parcel within the CFD that is subject to a Special Tax shall be deemed to have fulfilled and mitigated its entire obligation to assist in financing school facilities to serve the student population to be generated by development within the boundaries of the CFD. As a result, the School District hereby covenants with the City, on behalf of the owners of such Assessor' s Parcels, as follows: (a) That it hereby waives any right and will not under any circumstances at any time exercise any power or authority (under Section 53080 of the California Government Code or any other provision of applicable law) to levy a fee, charge, dedication, or other form of requirement against any residential development project undertaken within the boundaries of the CFD for the purpose of funding or financing any school facilities. 2E9Z0631 7 12J24/91 (b) That it will not under any circumstances at any time require the City or any other governmental entity to exercise, or cooperate with any other governmental entity in the exercise of, the power under Title 7, Division 1, Chapter 4 .7 of the California Government Code (commencing with Section 65970) or any other provision of applicable law, to require the dedication of land (except with respect to assistance in locating and identifying sites for School Facilities) , the payment of fees in lieu thereof, or both for classroom or related facilities for elementary, middle or high schools as a condition to the approval of a residential development project within the boundaries of the CFD (to the extent authorized by law any requirements for State matching contributions or fees, or both, required under Section 65995 and related sections of the California Government Code and California Education Code for the construction of school facilities pursuant to the Lease Purchase Law or subsequent laws may be paid from the Special Taxes collected within the CFD and shall not be an additional assessment to any group or individual developing residential property within the CFD) . (c) That it will not under any circumstances at any time oppose residential development on property located within the boundaries of the City on the basis of inadequate school facilities or seek other forms of mitigation with respect to the adequacy of school facilities, including, but not limited to, the establishment of developer fees, the payment of money by any owner, the dedication of land (except with respect to assistance in locating and identifying sites for School Facilities) , or the application of an assessment or requirement of any nature against any owner or any residential property within the boundaries of the City permitted by present or future State laws, rulings, regulations and court decisions if the proceeds of such assessment or requirement will be used to finance or fund any school facilities. (d) That it will not under any circumstances at any time issue bonds, or certificates of participation or incur any other form of indebtedness (collectively, "Additional Debt") payable from taxes or assessments of any kind levied on any property within the boundaries of the CFD. Notwithstanding the foregoing sentence, the School 2E9Z003I 8 11/14/91 District may issue (i) the Bonds (and any bonds issued to refund any outstanding Bonds) and such bonds as have been previously authorized within the boundaries of the School District but not yet issued, (ii) Additional Debt (including Additional Debt to refund outstanding indebtedness of the School District) payable from the School District' s portion of the existing property taxes and any other revenues of the School District generated from sources other than those identified in Section 4 , and (iii) Additional Debt to the extent the School District complies with the provisions of section 4 . Section 10. Indemnification. (a) The School District agrees and the CFD will agree to indemnify and hold harmless the City and its respective officers and employees (collectively, the "Indemnified Persons. " and individually, an "Indemnified Person") from and against any losses, claims, damages or liabilities, joint or several, to which any Indemnified Person may become subject insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of, or are based upon, (a) the establishment, formation and validation of the CFD, (b) the execution and delivery of and performance of its obligations under this Cooperation Agreement, (c) any action by the City in accordance with the Ordinance, or (d) any action taken by the City before or after the effective date of this Cooperation Agreement to condition the approval of any tentative or final tract map, zoning change or other legislative or discretionary approval on the mitigation of school impacts (including conditions which require property to be included in an assessment or other financing district) . The School District agrees and the CFD will agree to reimburse each Indemnified Person for any legal or other expenses reasonably incurred by such Indemnified Person in investigating, defending or preparing to defend any such action or claim; provided, however, that the School District and the CFD shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of, or is based upon, the willful misconduct or gross negligence of any Indemnified Person. (b) Promptly after receipt by an Indemnified Person of notice of the commencement of any action described in Section 10 (a) such Indemnified Person shall, if a claim in respect thereof is to be made against the School District or the CFD under Section 10 (a) , notify both the School District and the CFD in writing of the commencement thereof. In case any such action shall be brought against any Indemnified Person, and such Indemnified Person shall notify the School District or the CFD of the commencement thereof, the School 2E9Z0031 9 22/14191 District or the CFD shall be entitled to participate in and, to the extent that either wishes, to assume the defense thereof, with counsel reasonably satisfactory to such Indemnified Person, and after notice from the School District or the CFD to such Indemnified Person of its election so to assume the defense thereof, neither the School District nor the CFD shall be liable to such Indemnified Person under Section 10 (a) for any legal or other expenses subsequently incurred by such Indemnified Person in connection with the defense thereof other than reasonable costs of any investigation; provided, however, that if the named parties to any such action (including any impleaded parties) include the Indemnified Person and either the School District or the CFD, and the Indemnified Person reasonably concludes that there may be one or more legal defenses available to it which are different from or additional to those available to the school District or the CFD, the Indemnified Person shall have the right to select separate counsel to assume such legal defense and to otherwise participate in the defense of such action on behalf of the Indemnified Person; provided, further, however, that neither the School District nor the CFD shall, in connection with any one such action or separate but substantially similar or related actions arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys at any point in time for the Indemnified Person. Section 11. Reimbursement of Costs. All actual costs and expenses incurred by the City with respect to the preparation and execution of this Cooperation Agreement (including each of the exhibits hereto) , including but not limited to the fees and expenses of its counsel and other experts, shall be reimbursed within one year of the anniversary of execution of this Cooperation Agreement to the extent incurred and not paid directly by the CFD or the School District, from the first revenues available from the following sources: (a) Special Taxes collected on the property within the CFD, (b) the proceeds of the issuance of any series of Bonds or (c) any other source of funds legally available to the CFD. Section 12 . Redevelopment Project Areas. (a) The School District hereby agrees not to oppose the adoption of any redevelopment plan or amendment proposed by the City for adoption pursuant to the Community Redevelopment Law, set forth in Part 1 of Division 24 of the California Health and Safety Code (commencing with section 33000) (the "Redevelopment Law") . (b) In consideration for the School District' s agreement not to oppose the adoption of any such ZE9Z0031 10 11/14/91 redevelopment plan or amendment, the City and the Agency hereby agree that the School District has heretofore submitted to the City and Agency substantial facts and evidence which clearly indicate, and the City and the Agency hereby find, that the School District will suffer financial burden and detriment as a result of the adoption of redevelopment plans and amendments by the Agency. As a result, the City and the Agency hereby agree that pursuant to Section 33401 of the Redevelopment Law, the Agency shall pay into a trust account (the 11Trust Account") for the benefit of the School District $0. 137 for each $1. 00 of that portion of tax increment allocated to the Agency pursuant to Section 33670 (b) of the Redevelopment Law. Such Trust Account shall be, in a financial or other institution designated by the School District and shall earn interest which shall accrue for the benefit solely of the School District; provided however, that the City shall have the right to payment of amounts on deposit in the Trust Account in the event the School District fails to comply with Section 10 (a) hereof. Promptly upon request of the School District from time to time, the Agency shall cause the funds in the Trust Account to be expended for the construction or rehabilitation of school facilities as specified by the School District. (c) The City and the Agency agree not to contest or assist other persons or entities in contesting the findings of the City and the Agency set forth in this Section 12 , or to amend or alter in any manner such findings without the prior written consent of the School District. Section 13. Waiver of Actions. The School District hereby waives any claim or right of action it may have against the City (whether administrative, judicial or otherwise) with respect to: (i) the disposition of any action to which an Indemnified Person may be subject pursuant to Section 10 hereof to the extent the School District or the CFD elects not to participate in or assume the defense thereof pursuant to Section 10 (b) hereof; (ii) any action taken by the City before the effective date of this Cooperation Agreement to condition the approval of any tentative or final tract map, zoning change or other legislative or discretionary approval on the mitigation of school impacts (including conditions which require property to be included in an assessment or other financing district) ; and, (iii) any action taken by the City after the effective date of this Cooperation Agreement (x) which complies with Section 3 of the Ordinance an the procedures set forth in Exhibit E attached hereto and by this reference incorporated herein, and (y) in accordance with Section 5 of the Ordinance. Section 14. Miscellaneous. 2E9Z0031 11 11J14J91 14. 1. Successors. All of the covenants, stipulations, promises, and agreements contained in this Cooperation Agreement by or on behalf of, or for the benefit of, the parties hereto, shall bind or inure to the benefit of the successors of the respective parties. 14. 2 . Amendment. This Cooperation Agreement may be amended only by a written instrument executed by the School District and the City. 14. 3 . Severability. If any provision of this Cooperation Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. 14.4. Entire Agreement. This Cooperation Agreement supersedes and cancels any and all other agreements, either oral or written, between the parties with respect to the subject matter herein. Each party to this Cooperation Agreement acknowledges that no representation by any party which is not embodied herein or in any other agreement, statement or promise not contained in this Cooperation Agreement shall be valid and binding. The parties hereto agree to act in a manner which will not frustrate the purposes of this Cooperation Agreement. 14.5. Governing Law. This Cooperation Agreement shall be governed by and construed in accordance with the laws of the State. 14. 6. Execution. This Cooperation Agreement may be executed in several counterparts each of which shall be an original and all of which shall constitute but one and the same agreement. 14.7. Notices. All correspondence, notices or certificates required by this Cooperation Agreement shall be sufficiently given and served if delivered by hand directly to the offices named below or sent by United States first- class mail postage prepaid and addressed as follows: (a) if to the School District, to San Jacinto Unified School District 600 Main Street San Jacinto, California 92583 (b) if to the City, to City of San Jacinto 2E9Z0031 12 11/14/91 201 East Main Street San Jacinto, California 92583 14. 8 . Terminations. In the event (i) the School District does not form the CFD, or (ii) the School District fails to adopt an ordinance pursuant to Section 53340 of the Act regarding the levy of a special tax on property lying within the boundaries of the CFD within one year from the effective date of this Cooperation Agreement, this Cooperation Agreement shall be void and cancelled in its entirety and shall be of no force or effect. 14 . 9 . Effectiveness of Agreement. This Cooperation Agreement shall not be effective until the City Council of the City has adopted a Negative Declaration with respect hereto in accordance with the California Environmental Quality Act. 2Eezo03r 13 21114/91 IN WITNESS WHEREOF, the parties hereto have executed this Cooperation Agreement on the day and year first above written. SAN JACINTO UNIFIED SCHOOL DISTRICT By By CITY OF SAN JACINTO By By AGREED, ACKNOWLEDGED AND ACCEPTED: SAN JACINTO REDEVELOPMENT AGENCY By: Date: COMMUNITY FACILITIES DISTRICT NO. I OF THE SAN JACINTO UNIFIED SCHOOL DISTRICT By: Date: 2E9Z0031 14 12/34/91 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 2E9Z0031 A-1 11/14/91 EXHIBIT "All RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A special tax (the "Special Tax" ) shall be levied on each Assessor' s Parcel of Taxable Property (defined below) in Community Facilities District No. 1 of the San Jacinto Unified School Dis- trict ( '"CFD No. 111 ) in each Fiscal Year, commencing July 1, 1992 , or as soon thereafter as legally possible, in an amount determined by the Board of Trustees of the San Jacinto Unified School Dis- trict, acting as the legislative body of CFD No. 1, in accordance with the rate and method of apportionment described below. Section 1. Definitions . The following definitions shall apply: "Act" means the Mello-Roos Community Facilities Act of 1982 , as amended. "Administrative Expenses" means the costs incurred by the School District on behalf of CFD No. 1 related to the determination of the amount of annual levy of Special Taxes, the collection of the Special Taxes, the administration of the bonds of CFD No. 1, the costs associated with the Cooperation Agreement and the other administrative costs incurred in order to carry out the authorized purposes of CFD No. 1. "Assessable Space" means all of the square footage within the perimeter of a residential structure, not including any car- port, walkway, garage, overhang, patio, enclosed patio, detached accessory structure or similar area, as determined by the building department of the City in accordance with the standard practice of the City in calculating structural perimeters . "Assessor' s Parcel" means a parcel of land designated on a map of the Riverside County Assessor which has been assigned a discrete identifying number. "Board" means the Board of Trustees of the San Jacinto Unified School District. "Bond Requirements" means the amount necessary, taking into consideration anticipated delinquencies , (i) to pay the principal of and interest on the bonds at that time outstanding in CFD No. 1, (ii) to make any deposits required to be made with v s�aect to any reserve fund created with res-ecz to such bor_as, and (iii) to pay for Administrative Expenses . "City" means the City of San Jacinto. KRW80059 A-1 "Cooperation Agreement" means that certain cooperation agreement dated November 19 , 1991 by and between the City and the School District . "Developed Property" means any Assessor' s Parcel in CFD No. 1 which is Zoned for residential use and for which a building permit for a residential dwelling unit has been issued by June 15 of the prior Fiscal Year, except for Exempt Property and Senior Property. Developed Property includes Mature Developed Property and Phased-In Developed Property. "Developed Property Tax" means either the Mature Devel- oped Property Tax or the Phased-In Developed Property Tax. "Developed Property Special Tax Revenue Requirement" means the amount of Special Tax revenues which must be generated in a particular Fiscal Year to pay the applicable Bond Requirements and/or to provide for the cost of constructing, leasing and/or acquiring the Facilities . "Eligible Assessor' s Parcel (s) " shall have the meaning given such term in Section 8 . "Exempt Property" means any Assessor' s Parcel lying within the boundaries of CFD No. 1 which: (i) is property of the State, entities of the State, federal or other local governments, except as otherwise provided by Section 53317 .3 of the Act, (ii) is Developed Property and has been subject to the levy of a Developed Property Tax for 30 fiscal years, (iii) has been used, zoned, authorized or designated for commercial or industrial use on the applicable general plan, specific plan or the equivalent thereof which the City utilizes and relies upon for land use planning purposes and for the approval of the development of real property, (iv) is "common area" of a common interest development as those terms are used and defined in Section 1351 of the California Civil Code or any similar subsequent legislation, or (v) any Assessor' s Parcel with respect to which a Prepayment Tax has been paid and satisfied. For purposes of interpreting Sections 53317 . 3 and 53317 . 5 of the Act, any Assessor' s Parcel acquired by a public entity shall be deemed Exempt Property to the extent it is Unde- veloped Property at the time of its acquisition. "Facilities" means those school facilities (including land) and other facilities which CFD No. 1 is authorized by law to construct, own or operate and which serve the District as identified on Exhibit "B" attached to the Resolution of Intention. "Fiscal Year" means the period starting July 1 and ending the following June 30 . "Mature Developed Property" means each Assessor' s Parcel of Developed Property which is no longer Phased-In Property. KRW80059 A-2 "Mature Developed Property Special Tax" shall have the meaning given such term in Section 3 (a) . "One-Time Special Tax" shall have the meaning given such term in Section 6 (a) . "Phased- In Developed Property" means each Assessor' s Parcel of Developed Property during the period commencing with the date such Assessor' s Parcel changes from Undeveloped Property to Developed Property and extending for two full Fiscal Years there- after (for example, if an Assessor' s Parcel changes from Undevel- oped Property to Developed Property an July 2 , 1992 , it will be categorized as Phased-In Developed Property until June 30, 1995) . "Phased-In Developed Property Tax" shall have the meaning given to such term in Section 3 (b) . "Prepayment Tax" shall have the meaning given to such term in Section 7 . "Resolution of Intention" means the resolution adopted by the Board an November 12 , 1991 evidencing, among other things, the Board' s intention to establish CFD No. 1. "Senior Property" means each Assessor' s Parcel lying within the boundaries of CFD No. 1 which, at the time of issuance of a building permit with respect thereto, is subject to a cove- nant, condition and restriction or other document or written policy which requires that one resident of such Assessor' s Parcel be a senior citizen, and which constitute a "Senior Citizen Housing Development" pursuant to Section 51. 3 of the California Civil Code. "Senior Property Tax" shall have the meaning given such term in Section 6 (b) . "Special Tax" means, collectively, Developed Property Taxes, Undeveloped Property Taxes, One-Time Special Taxes and Senior Property Taxes. "State" means the State of California. "Undeveloped Property" means any Assessor' s Parcel in CFD No. 1 which is Zoned for residential use and for which no building permit has been issued by June 15 of the previous Fiscal Year. "Undeveloped Property Tax" shall have the meaning given such term in Section 4 . " Zoned" means the status of anv Assessor' s F-a-rce! 'I-Ised, zoned, authorized or designed for residential use on the applicable general plan, specific plan or the equivalent thereof which the City of San Jacinto utilizes and relies upon for land use planning purposes and for the approval of the development of real property. KRW80059 A-3 Section 2 . Classification of Property_. On July 1 of each Fiscal Year, beginning July 1, 1992 , the School District shall cause each Assessor' s Parcel in CFD No. 1 to be classified as one of the following: Developed Property, Senior Property, Undeveloped Property or Exempt Property. It shall also cause each Assessor' s Parcel of Developed Property to be classified as either Mature Developed Property or Phased-in Developed Property. The School District shall also identify any property within CFD No. 1 which qualifies as an Eligible Assessor' s Parcel (s) , as provided for in Section 8 hereof . Section 3 . Developed Property Tax. (a) Each Assessor' s Parcel of Mature Developed Property shall be subject to the levy of a special tax (the "Mature Devel- oped Property Tax" ) up to a maximum as indicated in Table 1A below, except for property described in Section 8 hereof, which shall be subject to the levy of the Mature Developed Property Tax up to the maximum as indicated in Table 113 below; provided, however, that the amounts contained in Table lA and Table 1B below shall be increased for each Fiscal Year commencing July 1, 1992 , by an amount equal to 2% of the maximum Mature Developed Property Tax set forth in Table 1A and Table 1B for the prior Fiscal Year. TABLE lA MAXIMUM MATURE DEVELOPED PROPERTY TAXES FISCAL YEAR 1991-92' ASSESSABLE SPACE OF MAXIMUM TAX FOR RESIDENTIAL DWELLING UNIT FISCAL YEAR 1991-92 0 to 1199 Square Feet $298 1200 to 1399 Square Feet 352 1400 to 1599 Square Feet 406 1600 to 1799 Square Feet 460 1800 to 1999 Square Feet 514 2000 to 2199 Square Feet 568 2200 Square Feet or Greater 622 'Subject to an annual inflation factor. KRW80059 A-4 TABLE 1B MAXIMUM MATURE DEVELOPED PROPERTY TAXES FISCAL YEAR 1991-92' ASSESSABLE SPACE OF MAXIMUM TAX FOR RESIDENTIAL DWELLING UNIT FISCAL YEAR 1991-92 0 to 1199 Square Feet $298 1200 to 1399 Square Feet 352 1400 to 1599 Square Feet 406 1600 to 1799 Square Feet 460 1800 to 1999 Square Feet 514 2000 to 2199 Square Feet 568 2200 Square Feet or Greater 622 'Subject to an annual inflation factor. (b) Each Assessor' s Parcel of Phased-In Developed Prop- erty shall be subject to the levy of a maximum special tax (the "Phased-In Developed Property Tax" ) in each Fiscal Year equal to the product obtained by multiplying the Mature Developed Property Tax as set forth in either Table 1A or Table 1B, as applicable, which would apply to such Assessor' s Parcel if it had been classified as Mature Developed Property times the following coeffi- cients determined as to each Assessor' s Parcel of Phased-In Devel- oped Property by reference to the number of full Fiscal Years which have elapsed since the date such Assessor' s Parcel changed from Undeveloped Property to Developed Property: Number of Full Fiscal Years Elapsing Since Assessor' s Parcel Became Developed Property Coefficient Less than 1 . 70 More than 1, but less than 2 . 80 More than 2 , but less than 3 . 90 More than 3 1. 00 (c) A Developed Property Tax may be levied only to the extent necessary to pay the Bond Requirements and/or to provide for the Cost of constructing, leasing or acquiring the Facilities . A Deve pea Property Tax may be levied on each Assessor' s Parcel cf Developed Property for a period not to exceed 30 years commencing the first Fiscal Year in which the Developed Property Tax is levied on such Assessor' s Parcel; provided, however, the expiration of such period shall not extinguish or otherwise affect the rights of KRw80059 A-5 the School District or CFD No. 1 to collect any delinquent Devel- oped Property Taxes or penalties or interest thereon. Section 4 . Undeveloped Property; Undeveloped Property Tax. A Special Tax may be levied pursuant to this Section 4 on all Undeveloped Property (the "Undeveloped Property Tax" ) to the extent necessary to pay the Bond Requirements, subject to the limitations set forth below. In the event that on July 1 of any Fiscal Year, the maximum projected revenues that can be generated from the levy of the applicable Developed Property Tax for such Fiscal Year on all Developed Property, together with all other funds of CFD No. 1 legally available to pay the Bond Requirements, shall be insuffi- cient to pay the Bond Requirements for such Fiscal Year, then all Undeveloped Property shall be subject to a Special Tax, for such Fiscal Year only, up to an amount not to exceed, per acre of Undeveloped Property (or a proportionate amount thereof for any portion of such acre) , the lesser of (i) $350, or (ii) the aggre- gate amount of the actual delinquencies in the payment of Developed Property Taxes for the prior Fiscal Year, divided by the total number of acres of Undeveloped Property in CFD No. 1 . Section S . Annual Apportionment of the Special Tax. Prior to any applicable deadline established pursuant to law, beginning with the Fiscal Year commencing July 1, 1992 , the Board, acting as the legislative body of CFD No. 1, shall cause the Special Tax to be apportioned and levied as follows: First: The Board shall determine the Developed Property Special Tax Revenue Requirement for such Fiscal Year. Second: The Board shall levy up to the maximum applica- ble Developed Property Tax against each Assessor` s Parcel of Devel- oped Property proportionately to the extent necessary to generate sufficient revenues to equal the Developed Property Special Tax Revenue Requirement. Third: If the maximum applicable Developed Property Taxes levied against Developed Property, together with all other funds of CFD No. 1 legally available to pay the Bond Requirements, are insufficient in any Fiscal Year to pay the Bond Requirements for such Fiscal Year, the Board shall levy up to the maximum appli- cable Undeveloped Property Tax against each Assessor' s Parcel of Undeveloped Property proportionately to the extent necessary to generate sufficient revenues to equal the Bond Requirements . Section 6 . One-Time Special Tax; Senior Special Tax. (a) In addition to the Developed Property Tax and Unde- veloped Property Tax described in Sections 3 and 4 herein, the Board shall levy on each applicable Assessor' s Parcel other than Senior Property a one-time special tax (the "One-Time Special Tax" ) payable at the time of issuance of each residential building permit KRW80059 A-6 for construction or expansion of a residential dwelling unit with respect to such Assessor' s Parcel in an amount equal to $1. 66 per square foot of Assessable Space; provided, however, that this amount shall be increased on July 1, 1992 and on each July 1 there- after by the greater of (i) four percent (4%-) or (ii) the increase in the Lee Saylor Construction Cost Index for Class D construction. The One-Time Special Tax revenues shall be used to finance the con- struction, acquisition or lease of the Facilities, and not by way of limitation shall also be available to pay installment purchase payments, lease payments, payments of principal, interest and premium, if any, on any other bonds or debt of the School District now or hereafter incurred, or to pay principal and interest components on lease-purchase or other similar financing arrangements entered into or to be entered into by the School District, including issuance of certificates of participation in such financing arrangement, all or any of which were or will be used to finance facilities that would or will benefit in whole or in part territory within the boundaries of CFD No. 1. (b) The Board shall also levy on each Assessor' s Parcel which constitutes Senior Property a one-time special tax (the "Senior Property Tax" ) payable at the time of issuance of a residential building permit for construction or expansion of a residential dwelling unit with respect to such Assessor' s Parcel in an amount equal to $0 .269 per square foot of Assessable Space; pro- vided, however, that this amount shall be increased on July 1, 1992 and on each July 1 thereafter by an amount equal to the greater of (i) four percent (4!k) or (ii) the Lee Saylor Construction Cost Index for Class D construction. The Senior Property Tax revenues shall be used to finance the construction, acquisition or lease of the Facilities and not by way of limitation shall also be available to pay installment purchase payments, lease payments, payments of principal, interest and premium, if any, on any other bonds or debt of the School District now or hereafter incurred, or to pay principal and interest components on lease-purchase or other similar financing arrangements entered into or to be entered into by the School District, including issuance of certificates of participation in such financing arrangement, all or any of which were or will be used to finance facilities that would or will benefit in whole or in part territory within the boundaries of CFD No. 1 . Section 7. Alternative Prepayment Tax. In lieu of paying an Annual Special Tax on Developed Property, the owner of any Assessor' s Parcel of Undeveloped Property may irrevocably elect for all units proposed within a subdivision final map at or prior to the issuance of any building permit for any dwelling unit constructed on lots set forth on such subdivision final map to prevav the Annual Erecial Tax (t-e "Prepayment Tax" ) at or prior to the time of issuance of a Certificate of Occupancy with respect to such Assessor' s Parcel . The maximum Prepayment Tax rate which may be levied in each Fiscal Year is set forth in Table 2A below, except for property described in Section 8 hereof, which shall be subject to a Maximum Prepayment Tax up to the maximum as indicated KRW80059 A-7 in Table 2B below; provided, however, that the maximum Prepayment Tax rate set forth in Table 2A and Table 2B below shall be increased in each Fiscal Year commencing July 1, 1992 by an amount equal to the greater of (i) four percent (4$) or (ii) the increase in the Lee Saylor Construction Cost Index for Class D construction. Upon payment and satisfaction of any Prepayment Tax, the Assessor' s Parcel with respect to which such Prepayment Tax has been levied and collected shall be characterized as Exempt Property and shall not be subject to a Developed Property Tax. Prepayment Taxes levied and collected pursuant to this Section 7 may be used to pay the Bond Requirements and to provide for the cost of financing, constructing, leasing and/or acquiring the Facilities . TABLE 2A MAXIMUM PREPAYMENT TAXES FISCAL YEAR 1991-92' ASSESSABLE SPACE OF MAXIMUM TAX FOR RESIDENTIAL DWELLING UNIT FISCAL YEAR 1991- 92 0 to 1199 Square Feet $2 , 563 1200 to 1399 Square Feet 3 , 029 1400 to 1599 Square Feet 3 , 495 1600 to 1799 Square Feet 3 , 961 1800 to 1999 Square Feet 4, 427 2000 to 2199 Square Feet 4 , 893 2200 Square Feet or Greater 5, 359 'Subject to annual inflation factor. KRW80059 A-8 TABLE 2B MAXIMUM PREPAYMENT TAXES FISCAL YEAR 1991-92' ASSESSABLE SPACE OF MAXIMUM TAX FOR RESIDENTIAL DWELLING UNIT FISCAL YEAR 1991-92 0 to 1199 Square Feet $2 , 563 1200 to 1399 Square Feet 3 , 029 1400 to 1599 Square Feet 3 , 495 1600 to 1799 Square Feet 3 , 961 1800 to 1999 Square Feet 4, 427 2000 to 2199 Square Feet 4, 893 2200 Square Feet or Greater 5, 359 `Subject to annual inflation factor. Section 8 . Special Tax Rate Adjustment for Property within City of San Jacinto Community Facilities District No. 2 . Any assessor' s parcel within the boundaries of CFD No. 1 subject to the levy of a special tax levied on such assessor' s parcel by the City of San Jacinto in connection with Community Facilities Dis- trict No. 2 of the City of San Jacinto (the "City CFD" ) on or prior to November 12 , 1991 (each classified as an "Eligible Assessor' s Parcel" ) shall pay the One-Time Special Tax in an amount equal to $1 . 66 per square foot of Assessable Space; provided, however, that this amount shall be increased on July 1, 1992 and each July 1 thereafter by the greater of (i) four percent (496) or (ii) the increase in the Lee Saylor Construction Cost Index for Class D Construction, or, if applicable, shall pay the Senior Property Tax in an amount equal to $0 . 26 per square foot of assessable space; provided, however, that this amount shall be increased on July 1, 1992 and on each July 1 thereafter by an amount equal to the increase in the Lee Saylor Construction Cost Index for Class D Construction, shall be subject to the levy of a Mature Developed Property Special Tax up to a maximum amount set forth in Table 1B of Section 3 hereof and shall be subject to the levy of a Prepayment Tax in a maximum amount as set forth in Table 2B of Section 7 hereof. All property owners within CFD No. 1 claiming that the provisions of this Section 8 shall be applicable to their property shall have the burden of establishing on the basis of evidence satisfactory to the Board that their assessor' s parcels) is an Eligible Assessor' s Parcel (s) . Notwithstanding the provisions of this Section 8 as to the rates of special taxes to be levied on Eligible Assessor' s Parcel (s) , all other provisions of this Rate and Method of Apportionment shall be applicable to such KRW80059 A-9 Eligible Assessor' s Parcel as if this Section S were not contained herein. Section 9 . Appeals and Interpretation Procedure . Any taxpayer whose property is subject to the levy of the Special Tax and who claims that the amount or application of the Special Tax has not been properly computed may file a notice with the Board appealing the levy of the Special Tax. The Superintendent of the School District or his or her designee will promptly review the claim and, if necessary, meet with the claimant and decide the appeal . If the findings of the Superintendent or his or her designee support a determination that the amount or application of the Special Tax should be modified or changed, the Special Tax levy shall be so modified or changed and, if applicable, a refund of prior Special Tax payments shall be granted and made. If a claimant disagrees with the findings and determination of the Superintendent or his or her designee, the claimant may appeal such determination to the Board and the decision of the Board shall be final . Interpretation of this rate and method of apportionment may be made by the Board by resolution thereof for the purpose of clarifying any vagueness or ambiguity as it relates to the applica- tion of the Special Tax rate, the application of the method of apportionment, the classification of any property or any definition contained herein. Section 10 . Collection of Special Tax. The Developed Property Tax and the Undeveloped Property Tax shall be levied and collected in the same manner as ordinary ad valorem property taxes in the County of Riverside. The One-Time Special Tax and the Senior Property Tax shall be levied as provided herein and shall be collected by the School District. Notwithstanding any provision to the contrary herein, CFD No. 1 may collect any Special Tax at a different time and/or in a different manner if necessary to meet its financial obligations . All Special Taxes shall be subject to the same penalties and lien priorities in the case of delinquency as is provided for ad valorem taxes; provided, however, CFD No. 1 may covenant for the benefit of bondholders to commence and dili- gently pursue to completion judicial foreclosure proceedings for the payment of delinquent installments of Special Taxes . The Special Tax shall be levied and collected only so long as it is needed to pay the Bond Requirements or to directly pay for the construction, lease and/or acquisition of the Facil- ities . KRW80059 A-10 EXHIBIT B FORM OF ORDINANCE TO BE APPROVED BY CITY 2E920031 B-1 11/14191 ORDINANCE NO. ORDINANCE OF THE CITY OF SAN JACINTO REGARDING FINANCING SCHOOL FACILITIES WHEREAS, the City of San Jacinto (the "City") has experienced significant growth in the past three years; and WHEREAS, the growth experienced by the City has caused a strain on various public facilities, including school facilities; and WHEREAS, the City has caused to be prepared a School Impact Mitigation Plan, incorporated herein by reference (the "Mitigation Plan") , which demonstrates that anticipated residential developments within the City will generate additional students within the San Jacinto Unified School District (the "School District") ; and WHEREAS, the School District has no school facilities available to house additional students generated by new residential development within the City; and WHEREAS, the current overcrowding of school facilities is resulting in the diminishment of the quality of education available to students within the City; and WHEREAS, overcrowding of facilities may, and if allowed to continue will, further result in danger to the health and safety of students and school staff; and WHEREAS, the approval of any further general plan amendments, changes of zone, specific plan or specific plan amendments, development agreements, final maps or tentative maps or the issuance of any further building permits without conformance with the provisions of this Ordinance will adversely strain existing school facilities to the detriment of the public peace, health and safety; and WHEREAS, the City Council does hereby declare and find that this Ordinance is a matter of urgency and that the immediate effectiveness of its provisions is required to preserve the public peace, health, safety and general welfare; and WHEREAS, the School District has determined that it is necessary to establish a community facilities district (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982 , set forth at Title 5, Division 2 , Chapter 2 .5 of the California Government Code (commencing with Section 53311) (the "Act") in order to finance the school facilities 2E9Z0042 needed to house the students expected to be generated by residential development within the City; and WHEREAS, the Special Tax Rate and Method of Apportionment to be used by the CFD to levy taxes on property lying within the CFD (which is incorporated herein by reference) permits a special tax to be levied only on property that has been zoned for residential uses; and WHEREAS, the Mitigation Plan demonstrates that the taxes to be levied on property lying within the CFD are necessary to mitigate the expected results of residential development within the City; and WHEREAS, the City has determined that in the interest of economic fairness, all residential developments within the City should bear a portion of the cost of the school facilities needed to house students expected to be generated by such residential development; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO DOES ORDAIN as follows: Section 1. (A) The City shall not approve or conditionally approve any general plan amendment, change of zone, specific plan or specific plan amendment, development agreement or any other land use entitlement (collectively, the "Land Use Entitlements") constituting a legislative act of the City with respect to any property lying within the boundaries of the School District unless and until the applicant requesting the Land Use Entitlement, and the owners of the property affected by the Land Use Entitlement (unless the Land Use Entitlement affecting such owners has been initiated by the City) , have entered into and executed an agreement with the School District providing for mitigation of the Land Use Entitlement's impact upon School District school facilities in accordance with the provisions of the Cooperation Agreement. (B) Section l (A) shall not apply to any Land Use Entitlement initiated by the City. If the City initiates any Land Use Entitlement, the City shall cause a notice to be recorded against the property affected by such Land Use Entitlement to the effect that such property will be subject to the provisions of this Ordinance. Section 2 . Commencing with the date the School District adopts an ordinance pursuant to Section 53340 of the Act regarding the levy of a special tax on property lying within the boundaries of the proposed CFD (the "Ordinance Approval Date") , no final maps relating to 2E9ZOO42 2 residential development within the City shall be approved unless the property identified on such map is part of the legal boundaries of the CFD, as evidenced by a Notice of Special Tax Lien filed with the Riverside County Recorder pursuant to Section 3114 . 5 of the California Streets and Highways Code (the "Lien Act") . Section 3. Prior to the ordinance Approval Date, final maps relating to residential development within the City shall be approved only upon the condition that no certificate of occupancy will be issued with respect to any parcel of land identified on such map unless such parcel of land is part of the legal boundaries of the CFD, as evidenced by a Notice of Special Tax Lien filed with the Riverside County Recorder pursuant to the Lien Act. Section 4 . All tentative maps, including extensions or amendments thereof, or conditional use permits relating to single-family and multifamily residential development (including but not limited to mobilehome parks) within the City shall include a condition substantially to the effect that the property identified on such map or in such permit must be part of the legal boundaries of the CFD, as evidenced by a Notice of Special Tax Lien filed with the Riverside County Recorder pursuant to the Lien Act. Section 5. The provisions of Sections 2 and 3 of this ordinance shall apply to tentative maps approved prior to the effective date hereof only if such tentative maps included a condition which required mitigation of school impacts. Section 6. This Ordinance shall be null and void if the City and the School District have failed to execute a Cooperation Agreement relating to the mitigation of other exactions to finance school facilities by December 4, 1991. Section 7 . This Ordinance shall be published within 15 days after its passage at least once in The Hemet News, a newspaper of general circulation published and circulated in the District. 2E9Z0042 3 Section 8. This ordinance shall take effect immediately upon passage at introduction pursuant to the provisions of California Government Code Sections 36934 and 36937. In the event that this Ordinance fails to receive four (4) affirmative votes, it shall become effective thirty (30) days after final passage. CITY OF SAN JACINTO Mayor Attest: City Clerk 2E9ZOO42 4 EXHIBIT C SCHEDULE OF SCHOOL FACILITIES 2E9Z0031 C-1 11/14/91 EXHIBIT "C" SCHEDULE OF SCHOOL FACILITIES San Jacinto Unified School District shall provide, through the establishment of Community Facilities District No. 1 thereof (the "CFD" ) financing for costs involved in design, inspec- tion, acquisition and construction of the facilities, including but not limited to those, set forth below. 1 . Elementary Schools Elementary school facilities including, but not limited to, classrooms, administration, library, kitchen, multi-purpose room, storage, mechanical , custodial, open corridors and other elementary school facilities . 2 . Middle Schools Middle school facilities including, but not limited to, classrooms and laboratories, administration, gymnasium, shower/locker facilities, kitchen, library, multi-purpose room, performing arts center, storage, mechanical, custodial, bleachers and other middle school facilities. 3 . High Schools High school facilities including, but not limited to, classrooms and laboratories, administration, gymnasium, shower/locker facilities, kitchen, library, multi-purpose room, performing arts center, storage, mechanical, custodial, bleachers and other high school facilities . School acquisition and construction will include all buildings, relocatable facilities, transportation facilities, appurtenances, utility hookups, street frontage improvements, landscaping, land acquisition and rights in real property, and fixtures and equipment with a useful life of at least five years to begin operation of the Schools. The financing shall also include, but not be limited to, the costs associated with the Cooperation Agreement, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; lease payments for school facilities , and to pay installment purchase payments, lease payments, payments of principal, interest and premium, if any, on any other bonds or debt of the School District now or hereafter incurred or to pay principal and interest components of lease- purchase or other similar financing arrangements entered into or to be entered into by the School District, including issuance of certificates of participation in such financing arrangement, all or any of which were or will be used to finance facilities that would KRW80059 C-1 benefit, in whole or in part, territory within the boundaries of the Community Facilities District, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued pursuant to the Act, architectural, engineering, inspection, legal (including legal and other costs incurred in connection with litigation or legal and/or equitable challenges to the formation of the CFD and/or the issuance of the Bonds of the CFD, and/or the levy of the Special Tax within the CFD) , fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the CFD due and payable prior to the expiration of one year from the date of completion of the facilities, not to exceed two years; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs . The description of the school facilities, as set forth herein, is general in its nature. The final nature and location of improvements and facilities will be determined upon the preparation of final plans and specifications . The final plans may show substitutes in lieu, or modification to the proposed work in order to accomplish the works of improvement, and any such substitution shall not be construed to be a change or modification in the proceedings as long as the school facilities provide a service substantially similar to that as set forth herein. Notwithstanding the provisions of Exhibit "D" to this Cooperation Agreement with respect to the number of facilities and the moneys allocated to the different types of facilities, the School District reserves the right to adjust such numbers and dollars between and among categories of school facilities . KRW80059 C-2 EXHIBIT D PRELIMINARY ESTIMATES FOR CALCULATION OF AUTHORIZED FACILITIES 1. Elementary Schools School facilities for elementary schools each of which, if operated on a year-round basis, would house approximately students from kindergarten through sixth grade on a year-round basis. Estimated Cost: $ 2 . Middle Schools School facilities for Middle Schools each of which, if operated on a year-round basis, would house approximately _ students from seventh and eighth grades on a year-round basis. Estimated Cost: $ 3 . High Schools School facilities for High School which, if operated on a year-round basis, is sufficient to house approximately students from ninth to twelfth grades on a traditional basis. Estimated Cost: $ 2E9Z0031 D-1 11/14/91 EXHIBIT E PROCEDURES RELATING TO FINAL MAPS APPROVED BEFORE CFD ORDINANCE APPROVAL DATE 2E9Z0031 E 11/14/91 EXHIBIT t°E" PROCEDURE RELATING TO FINAL MAPS APPROVED BEFORE CFD ORDINANCE APPROVAL DATE For any tentative map approved prior to the effective date of the City' s "Ordinance of the City of San Jacinto Regarding Financing School Facilities, " and for which the City imposed a condition upon such map requiring the proposed project to mitigate its impacts on the school facilities of the San Jacinto Unified School District, at the time such map is submitted to the City for final approval, the City shall restate such condition as follows: "No certificate of occupancy shall be issued with respect to any parcel of land identified on this map unless either: (1) such parcel of land is a part of the legal boundaries of the Community Facilities District of the San Jacinto Unified School District as evidenced by a notice of special tax lien filed with the Riverside County Recorder, or (2) the applicant for the map has presented written evidence to the City that it has mitigated the adverse impacts of its project on School District facilities to the satisfaction of the San Jacinto Unified School District. 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