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HomeMy WebLinkAboutResolution - 3568 STATE OF CALIFORNIA ) RESOLUTION NO. 3668 COUNTY OF RIVERSIDE)ss CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO DECLARING ITS INTENTION TO ESTABLISH PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2015-1 OF THE CITY OF SAN JACINTO WHEREAS, the City of San Jacinto (the "City") has formed its Community Facilities District No. 2002-1 (Rancho San Jacinto, Phase 2) ("CFD No. 2002-1) and, in connection therewith, has issued its San Jacinto Financing Authority 2002 Local Agency Revenue Bonds, Series A (Tranches A through D) in the original principal amount of $17,841,416.76 (the "2002 Bonds") which are secured by special taxes levied by the City on property within the boundaries of CFD No. 2002-1, and because of the delinquent payment of the special taxes levied in CFD No. 2002-1, the 2002 Bonds were in default with respect to the payment of the principal and interest with respect thereto; and WHEREAS, the City and Tower Music City, LLC, owner of property located within CFD 2002-1 ("Owner"), entered into a Memorandum of Understanding which permitted the Owner to sell certain parcels of property to Eastern Municipal Water District, provided, however, that a community facilities district be formed on the remaining parcels owned by Owner to finance the payment of a portion of the principal of and interest on the 2002 Bonds; and WHEREAS, the City Council (the "City Council") of the City of San Jacinto (the "City") has received a petition from the owner of certain real property within the City (the "Owner") requesting that the City Council institute proceedings for the formation of a community facilities district, pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982," for the purpose of financing through the sale of bonds or the levy of special taxes the amounts necessary to pay debt service on the 2002 Bonds; and WHEREAS, the Owner is the owner of all of the property which is proposed to be included within the proposed community facilities district; and WHEREAS, pursuant to Section 53320 of the California Government Code, having received such a petition, it is appropriate for the City Council to institute proceedings for the formation of the proposed community facilities district by the adoption of a resolution of intention pursuant to Section 53321 of said Code; 24438.70020\9558127.2 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, AS FOLLOWS: Section 1. Proposed Community Facilities District. A community facilities district is proposed to be established under the provisions of Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982. The name proposed for the community facilities district is "Community Facilities District No. 2015-1 of the City of San Jacinto (Supplemental Special Tax to Rancho San Jacinto, Phase 2), County of Riverside, State of California." Section 2. Description and Map of Boundaries. The boundaries of the proposed community facilities district are described and shown on the map entitled "Boundaries of Community Facilities District No. 2015-1 (Supplemental Special Tax to Rancho San Jacinto, Phase 2) of the City of San Jacinto, County of Riverside, State of California," which is on file with the City Clerk. Said map is approved and, pursuant to Section 3110 of the California Streets and Highways Code, the City Clerk shall, after conforming with the other requirements of Section 3111 of said Code, record the original of said map in her office, and not later than 15 days prior to the date of the public hearing set forth in Section 9 hereof shall file a copy of said map with the County Recorder of the County of Riverside. Section 3. Types of Facilities and Incidental Expenses. (1) The cost of payment of a portion of the principal of and interest on a portion of special tax bonds issued with respect to CFD No. 2002-1 as described in the Rate and Method of Apportionment, and incidental expenses thereof; and (2) The incidental expenses which will be incurred are: (i) the cost of planning and designing such facilities and the cost of environmental evaluations thereof, (ii) all costs associated with the formation of the proposed community facilities district, issuance of the bonds thereof, the determination of the amount of and collection of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the community facilities district, and (iii) any other expenses incidental to the construction, completion, acquisition and inspection of such facilities. Section 4. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay for all public facilities and to pay the principal of and interest on the bonds of the proposed community facilities district and the annual administrative expenses of the City and the proposed community facilities district in determining, apportioning, levying and collecting such special taxes, and in paying the principal of and interest on such bonds and the costs of -2- 2443 8.70020\95 5 8127.2 registering, exchanging and transferring such bonds, secured by the recordation of a continuing lien against all taxable or nonexempt property in the proposed community facilities district, shall be annually levied within the proposed community facilities district. The rate and method of apportionment of special taxes to be levied on parcels of taxable property to pay the principal of and interest of the bonds of the proposed community facilities district which may be issued and sold to finance the debt service on the CFD 2002-1 Bonds shall be as set forth in Exhibit "A" attached hereto and by this reference made a part hereof. The maximum amounts of special taxes which may be levied in any year on parcels within the proposed community facilities district which are used for private residential purposes ("Residential Parcels") are specified in dollar amounts in Exhibit "A" hereto. Special taxes shall not be levied on any Residential Parcels to pay the principal of and interest on the outstanding bonds of the community facilities district after the tax or fiscal year beginning on July 1, 2015 and ending on June 30, 2038, and that fiscal year shall be the last tax year in which special taxes shall be levied on Residential Parcels for such purpose. Under no circumstance shall the special taxes levied on any Residential Parcel be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the proposed community facilities district by more than 10 percent of the prior year's levy. The conditions under which the obligation to pay the special taxes may be prepaid and permanently satisfied are as set forth in Exhibit "A" hereto. Pursuant to Section 53340 of the California Government Code, said special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special taxes shall attach to all non-exempt real property in the proposed community facilities district and that lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special taxes ceases. Section 5. Exempt Properties. Pursuant to Section 53340 of the California Government Code, and except as provided in Section 53317.3 of said Code, properties of entities of the state, federal, and local governments shall be exempt from the levy of special taxes. -3- 2443 8.70020\95 5812 7.2 Section 6. Necessity. The City Council finds that the proposed Facilities described in Section 3 hereof are necessary to meet increased demands placed upon the City as a result of new development occurring within the boundaries of the proposed community facilities district. Section 7. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section 53314.9 of the California Government Code, the City Council proposes to accept advances of funds or work-in-kind from private persons or private entities and to provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including but not limited to, paying any costs incurred by the City in creating the proposed community facilities district, and to enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind to repay funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council. Section 8. Prohibition of Owner Contracts. Pursuant to Section 53329.5 of the California Government Code, the City Council finds that the public interest will not be served by allowing the owners of property within the proposed community facilities district to enter into a contract in accordance with subdivision (a) of that section, and that such owners shall not be permitted to elect to perform the work and enter into a written contract with the City for the construction for the public facilities pursuant to said Section 53329.5. Section 9. Hearing. A public hearing on the formation of the proposed community facilities district shall be held at 6:30 p.m. on June 18, 2015 in the City Council Chambers located at 2045 S. San Jacinto Avenue, San Jacinto, California. Section 10. Notice. The City Clerk shall publish a notice of the time and place of said hearing as required by Section 53322 of the California Government Code, and shall also give notice of the time and place of said hearing by first-class mail to each registered voter and to each landowner within the proposed community facilities district as prescribed by Section 53322.4 of said Code. Said notice shall be published at least seven (7) days and mailed at least 15 days before the date of the hearing, and shall contain the information required by said Section 53322. Section 11. Report. The City Manager, or his designee(s), being the officer(s) of the City who will be responsible for providing the proposed types of public facilities to be provided within and financed by the proposed community facilities district, if it is established, shall study the proposed district, and, at or before the time of said hearing, file a report or reports with the City Council containing a brief description of the public facilities by type which will in their opinion be required to adequately meet the needs of the proposed community facilities district and their estimate of the fair and reasonable cost of providing those public facilities and the incidental expenses to be incurred in connection -4- 24438.7002019558127.2 therewith. All such reports shall be made a part of the record of the hearing to be held pursuant to Section 9 hereof. Section 12. Description of Voting Procedures. The voting procedures to be followed shall be pursuant to Section 53326 of the California Government Code and pursuant to the applicable provisions of the Election Code. PASSED, APPROVED AND ADOPTED this 5th day of May, 2015, by the following vote: Ayes: Bartel, Kotyuk, Ledezma, Miller, Ruiz Nays: None Absent: None Abstain: None City of Sag Jacinto rystal Ruiz, May r ATT T: Richard-Miter, City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP Je re S.-Balling ity Attorney 2443 8.700201,9558127.2 CERTIFICATION I, Richard Miller, City Clerk of the City of San Jacinto, certify that the foregoing resolution was adopted by the City Council of the City of San Jacinto at a regular meeting held on the 5th day of May, 2015, by the following vote: AYES: Bartel, Kotyuk, Ledezma, Miller, Ruiz NAYS: None ABSENT: None ABSTAINED: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Jacinto this day of May, 2015. Richard Miller, City Clerk -6- 24438.700M9558127.2