HomeMy WebLinkAboutCity Council - 2003-10 RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES
DISTRICT NO. 2003-1 (HUNTINGTON CENTER) AND ESTABLISHING THE
BOUNDARIES THEREOF
WHEREAS, the City Council (the "City Council") of the City of Huntington Beach
("City") has heretofore adopted on January 6, 2003, Resolution No. stating that
a proposed community facilities district to be known as "City of Huntington Beach
Community Facilities District No. 2003-1 (Huntington Center), County of Orange, State
of California" (the "Community Facilities District"), is proposed to be established under
the terms of Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of
the City of Huntington Beach (the "Code") and Chapter 2.5 (commencing with § 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 "Act"), and fixing the time and
place for a public hearing on the establishment of the Community Facilities District; and
Notice was published and mailed to the owners of property in the Community
Facilities District as required by law relative to the intention of the City Council to
establish the Community Facilities District, the levy of the special taxes therein, the
financing and refinancing of public facilities therein, and the incurring of a bonded
indebtedness by the Community Facilities District, and of the time and place of said
public hearing; and
On February 3, 2003, at the time and place specified in said published and
mailed notices, the City Council opened and held a public hearing as required by law
relative to the formation of the Community Facilities District, the levy of the special taxes
therein and the financing of facilities by the Community Facilities District; and
On February 3, 2003, at the time and place specified in said published and
mailed notices, the City Council opened and held a public hearing as required by law
relative to the formation of the Community Facilities District, the levy of the special taxes
therein and the financing of facilities by the Community Facilities District; and
Prior to said hearing there was filed with the City.Council a report (the "Report")
containing a description of the services being financed within and for the Community
Facilities District, and an estimate of the cost of such financing, as required by Section
53321.5 of the California Government Code; and
At the public hearing all persons desiring to be heard on all matters pertaining to
the establishment of the Community Facilities District, the levy of the special taxes and
the financing of the public facilities therein were heard, and a full and fair hearing was
held; and
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The City Council may therefore proceed to establish the Community Facilities
District,
NOW, THEREFORE, the City Council of the City of Huntington Beach does
hereby resolve as follows:
Section 1. Findings. The City Council finds as follows:
(i) All of the preceding recitals are correct.
(ii) On February 3, 2003, pursuant to notice thereof duly given as provided
by law, the City Council conducted a public hearing with respect to the establishment of
the Community Facilities District and the annual levying of specified special taxes on the
taxable property within the Community Facilities District to pay for public facilities for the
Community Facilities District which are described in Section 3 hereof.
(iii) The boundary map of the Community Facilities District has been
recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code as
Instrument No. 2003000028911 in Book 85 of Book of Maps of Assessment and
Community Facilities Districts at page 45 of the Official Records of the County of
Orange.
(iv) All prior proceedings with respect to the establishment of the
Community Facilities District prior to and during the hearing with respect to the
establishment of the Community Facilities District conducted by the City Council on
February 3, 2003, were valid and in conformity with the requirements of Chapter 2.5
(commencing with § 53311) of Part 1 of Division 2 of Title 5 of the California
Government Code.
(v) No written protests were received at or prior to the time of said hearing
against the establishment of the Community Facilities District or the levying of said
special taxes by the Community Facilities District, and said special taxes have,
therefore, not been limited by majority protest pursuant to Section 53324 of the
California Government Code
(vi) The City Council is, therefore, authorized to adopt a resolution of
formation pursuant to Section 53325.1 of the California Government Code for the
establishment of City of Huntington Beach Community Facilities District No. 2003-1
(Huntington Center), County of Orange, State of California, and the Community
Facilities District should be established.
Section 2. Establishment of District. City of Huntington Beach Community
Facilities District No. 2003-1 (Huntington Center) County of Orange, State of California,
is hereby established. The boundaries of the Community Facilities District are set forth
in Exhibit "A" attached hereto and are also shown on the map entitled "Boundaries of
City of Huntington Beach Community Facilities District No. 2003-1 (Huntington Center),
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County of Orange, State of California" which is on file with the Clerk and said
boundaries are hereby established.
Section 3. Types of Facilities; Incidental Expenses: Maintenance.
(1) The types of public facilities proposed to be provided within and
financed by the proposed Community Facilities district are:
(a) Street improvements including costs of condemnation, removal,
demolition, grading, paving, curbs and gutters, sidewalks, street lights and parkway and
landscaping related thereto.
' (b) Storm drains, drainage storage ponds and drainage channels including
landscaping, if applicable.
(c) Sewers, sewer treatment facilities and sewer capacity acquisition.
(d) Public parking facilities including a parking structure.
(e) Water distribution facilities, including fire hydrants and reclaimed water
and water storage facilities.
(f) Street signalization and signage, including traffic fees.
(g) Fire facilities including structures and capital equipment.
(h) Acquisition of land necessary for any other facilities specified in
paragraphs (a) through (g) above.
(i) The incidental expenses which will be incurred are: (i) the cost of
engineering, planning and designing such facilities and the cost of environmental
evaluations thereof, (ii) all costs associated with the creation of the proposed community
facilities district, issuance of the bonds thereof, the determination of the amount of and
collection of taxes, the payment 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, acquisition, completion, and inspection of such
facilities.
(2) The proposed community facilities district shall also pay for the
maintenance of, and the provisions of repair and replacement reserves for, any of the
publicly owned facilities listed in clause (1) of this Section 3.
Section 4. Special Taxes. Except where funds are otherwise available, special
taxes sufficient to pay for all such facilities and to pay the principal of and interest on the
bonds of the Community Facilities district and any territory to be annexed in the future,
and the annual administrative expenses of City and the Community Facilities District in
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determining, apportioning, levying and collecting such special taxes, and in paying the
principal of and interest on such bonds, and the costs of registering, exchanging and
transferring such bonds, secured by the recordation of a continuing lien against all
taxable or nonexempt property in the Community Facilities District, and maintaining a
reserve fund for such bonds, and paying any amounts that must be paid to the United
States in order to preserve the tax-exempt status of such bonds shall be annually levied
within the Community Facilities District. Additionally, there shall be levied special taxes
sufficient to pay for the maintenance, repair and replacement of such public facilities.
The rate and method of apportionment of said special taxes shall be as set forth in
Exhibit "B" attached hereto and by this reference made a part hereof.
Section 5. Annexation of Territonr. Other property within the boundaries of City
may be annexed into the Community Facilities District upon the condition that parcels
within that territory may be annexed only with the unanimous approval of the owner or
owners of each parcel or parcels at the time that parcel or those parcels are annexed.
Section 6. Exempt Property. Pursuant to Section 63340 of the California
Government Code, properties of entities of the state, federal and local governments or
used for public rights of way or other public uses, shall be exempt from the levy of
special taxes of the Community Facilities District.
Section 7. Report. The Report is hereby approved and is made a part of the
record of the public hearing regarding the formation of the Community Facilities District,
and is ordered to be kept on file with the Clerk of the City as part of the transcript of
these proceedings.
Section 8. Repayment of Funds Advanced or Work-in-Kind. Pursuant to Section
53314.9 of the California Government Code, the City Council may accept advances of
funds or work-in-kind from private persons or private entities and may 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 City in creating the Community
Facilities District and may enter into an agreement by resolution, with the person or
entity advancing funds or work-in-kind to repay funds advanced, or to reimburse the
E person or entity for the value or cost, whichever is less, of the work-in-kind, as
j determined by the City Council.
Section 9. Tender of Bonds. This City Council hereby reserves the right, on
behalf of the Community Facilities District to accept tenders of bonds in full or partial
payment of special taxes to be levied within the Community Facilities District pursuant
to Section 3.56.320 of the Code.
Section 10. Description of Voting Procedures. The voting procedures to be
followed in conducting the consolidated special elections on (i) the proposition of the
Community Facilities District incurring a bonded indebtedness in an amount not to
exceed $30,000,000, (ii) the proposition with respect to the levy of special taxes on the
land within the Community Facilities District to pay the principal of and interest on the
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bonds thereof and to pay the costs of maintenance, repair and replacement of public
facilities, and (iii) the proposition with respect to the establishment of an appropriations
limit for the Community Facilities District in the amount of$4,000,000, if the Community
Facilities District is established and such consolidated special elections (the
"consolidated special elections") are held, shall be as follows:
(a) If at least 12 persons have been registered to vote within the
territory of the Community Facilities District for each of the 90 days preceding the close
of the public or protest hearing (the "protest hearing"), the vote in the consolidated
special elections shall be by the registered voters of the Community Facilities District
with each voter having one vote. In that event, the consolidated special elections shall
be conducted by the Clerk, and shall be held on a date selected by the City Council in
conformance with the provisions of Section 53326 of the California Government Code
and pursuant to the provisions of the California Elections Code governing elections of
cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots
for the consolidated special elections shall be distributed to the qualified electors of the
Community Facilities District by mail with return postage prepaid or by personal service,
and the consolidated special elections shall be conducted as a mail ballot election.
(b) If 12 persons have not been registered to vote within the territory of
the community facilities district for each of the 90 days preceding the close of the
protest hearing, and pursuant to Section 53326 of the California Government Code, the
vote is therefore to be by the landowners (as defined in Section 3.56.070 of the
Municipal Code of the City of Huntington Beach) of the Community Facilities District,
with each landowner of record at the close of the protest hearing having one vote for
each acre or portion of an acre of land that he or she owns within the Community
Facilities District, the consolidated special elections shall be cdnducted by the City Clerk
pursuant to the Municipal Code of the City of Huntington Beach and Section 53326 of
the California Government Code as follows:
(1) The consolidated special elections shall beheld on the
earliest date, following the adoption by the City Council of the resolution of formation
establishing the Community Facilities District pursuant to Section 53325.1 of the
California Government Code, and a resolution pursuant to Section 53326 of said Code
submitting the propositions with respect to (i) whether a bonded indebtedness shall be
incurred for constructing and financing through the sale of bonds public facilities
necessary for the formation of the Community Facilities District; (ii) the levy of special
taxes to pay the principal of and interest on the bonds of the Community Facilities
District and (iii) the establishing of an appropriations limit therefor to the qualified
electors of the Community Facilities District, upon which such elections can be held
pursuant to said Section 53326 which may be selected by the City Council, or such
earlier date as the owners of land within the Community Facilities District and the Clerk
agree and concur is acceptable.
(2) Pursuant to said Section 53326, the consolidated special
elections may be held earlier than 90 days following the close of the protest hearing if
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the qualified electors of the Community Facilities District waive the time limits for .
conducting the elections set forth in said Section 53326 by unanimous written consent
and the Clerk concurs in such earlier election date as shall be consented to by the
qualified electors.
(3) Pursuant to said Section 53326, ballots for the consolidated
special elections shall be distributed to the qualified electors by the Clerk by mail with
return postage prepaid, or by personal service.
(4) Pursuant to applicable sections of the California Elections
Code governing the conduct of mail ballot elections of cities, and specifically Division 4
(commencing with §4000 of the California Elections Code with respect to elections
conducted by mail), the Clerk shall mail (or deliver) to each qualified elector an official
ballot in a form specified by the City Council in the resolutions calling and consolidating
the consolidated special elections, and shall also mail to all such qualified electors a
ballot pamphlet and instructions to voter, including a sample ballot identical in form to
the official ballot but identified as a sample ballot, an impartial analysis by Counsel to
City pursuant to Section 9280, as amended, of said Code with respect to the ballot
propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to
Sections 9281, as amended, to 9287, as amended, inclusive, and 9295, as amended, of
said Code, a return identification envelope with prepaid postage thereon addressed to
the Clerk for the return of voted official ballots, and a copy of the form of Resolution of
Formation establishing the Community Facilities District, adopted by the City Council
pursuant to Section 53325.1 of the California Government Code, and the exhibits
thereto; provided, however, that such analysis and arguments may be waived with the
unanimous consent of all the landowners, and in such event a finding regarding such
waivers shall be made in the resolution adopted by the City Council calling the
consolidated special elections.
(5) The official ballot to be mailed (or delivered) by the Clerk to
each landowner shall have printed or typed thereon the name of the landowner and the
number of votes to be voted by the landowner and shall have appended to it a
certification to be signed by the person voting the official ballot which shall certify that
the person signing the certification is the person who voted the official ballot, and if the
landowner is other than a natural person, that he or she is an officer of or other person
affiliated with the landowner entitled to vote such official ballot, that he or she has been
authorized to vote such official ballot on behalf of the landowner, that in voting such
official ballot it was his or her intent, as well as the intent of the landowner, to vote all
votes to which the landowner is entitled based on its land ownership on the propositions
set forth in the official ballot as marked thereon in the voting square opposite each such
proposition, and further certifying as to the acreage of the landowner's land ownership
within the Community Facilities District.
(6) The return identification envelope delivered by the Clerk to
each landowner shall have printed or typed thereon the following: (i) the name of the
landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury
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stating that the voter is the landowner or the authorized representative of the landowner
entitled to vote the enclosed ballot and is the person whose name appears on the
identification envelope, (iv) the printed name and signature of the voter, (v) the address
of the voter, (vi) the date of signing and place of execution of said declaration, and
(vii) a notice that the envelope contains an official ballot and is to be opened only by the
Clerk.
(7) The instruction to voter form to be mailed by the Clerk to the
landowners shall inform them that the official ballots shall be returned to the Clerk
properly voted as provided thereon and with the certification appended thereto properly
completed and signed in the sealed return identification envelope with the certification
thereon completed and signed and all other information to be inserted thereon properly
inserted not later than 7:00 p.m. on the date of the election, or immediately after the
Resolution Calling the Special Election is adopted
(8) Upon receipt of the return identification envelopes which are
returned prior to the voting deadline on the date of the elections, the Clerk shall canvass
the votes cast in the consolidated special elections, and shall file a statement with the
City Council as to the results of such canvass and the election on each proposition set
forth in the official ballot.
The procedures set forth in this section for conducting the consolidated special
elections, if they are held, may be modified as the City Council may determine to be
necessary or desirable by a resolution subsequently adopted by the City Council.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at
a regular meeting thereof held on the 3rd day of February , 2003.
&.�'
Mayor
ATTEST: APPROVED AS TO FORM:
.i
City Clerk Attorney ,
r
REVIEWED AND APPROVED: INITIATED AND APPROVED
C- �Lj C /W
City Adrfteistrator Dir ctor of Econorhi& Development
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EXHIBIT A
LEGAL DESCRIPTION
CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO.2000-1
(HUNTINGTON CENTER), COUNTY OF ORANGE, STATE OF CALIFORNIA
City of Huntington Beach Community Facilities District No. 2003-1 (Huntington Center),
County of Orange, State of California, includes the land situated in the State of
California, County of Orange, City of Huntington Beach, described as follows:
Parcels 2 through 9 as shown on Parcel Map 86-200
filed in Book 255, pages 40-45, of Parcel Maps in the
Office of the County Recorder of Orange County,
California
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1
EXHIBIT B
CITY OF HUNTINGTON BEACH
COMMUNITY FACILITIES DISTRICT NO. 2003-1
(HUNTINGTON CENTER)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
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CITY OF HUNTINGTON BEACH
COMMUNITY FACILITIES DISTRICT NO. 2003-1
(HUNTINGTON CENTER)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax applicable to each Assessor's Parcel of Taxable Property in the City of
Huntington Beach Community Facilities District No. 2003-1 (Huntington Center) (herein
CFD No. 2003-1) shall be levied and collected according to the tax liability determined
by the Administrator through the application of the procedures described below. The real
property in CFD No. 2003-1, unless exempted by law or by the provisions hereof, shall
be taxed for the purposes, to the extent, and in the manner herein provided.
A. DEFINITIONS
The capitalized terms hereinafter set forth have the following meanings when used in this
Rate and Method of Apportionment:
Acre or Acreage means the land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area
shown on the applicable final map,parcel map, or the other parcel map recorded with the
County Recorder. If the Acreage of a particular Parcel is unclear after reference to
available maps, the Administrator shall determine the appropriate Acreage for a Parcel.
Act means Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of
the City of Huntington Beach and, as applicable, the Mello-Roos Community Facilities
Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311), Part 1,
Division 2, of Title 5 of the Government Code of the State of California.
Administrative Expenses means any or .all of the following actual or reasonably,
estimated costs directly related to the a.dministration.of CFD No. 2003-1: the fees and
expenses of any Fiscal Agent or trustee (including any fees and expenses of its counsel)
employed in connection with any Bonds; any costs associated with the marketing or
remarketing of the Bonds; the expenses of the Administrator and the City in carrying out
their duties under any Indenture or resolution with respect to the Bonds, including, but
not limited to, the levy and collection of the Special Tax, the fees and expenses of legal
counsel, charges levied by the County or any division or office thereof in connection with
the levy and collection of Special Taxes, audits, continuing disclosure or other amounts
needed to pay arbitrage rebate to the federal government with respect to Bonds; costs
associated with complying with continuing disclosure requirements; costs associated with
responding to public inquiries regarding Special Tax levies and appeals; attorneys' fees
and other costs associated with commencement or pursuit of foreclosure for delinquent
Special Taxes; and all other costs and expenses of City, the Administrator, the County,
and any Fiscal Agent, escrow agent or trustee related to the administration of CFD No.
2003-1.
Administrator means the.Director of Economic Development or such other person or
entity designated by City Administrative Officer or the City Council to administer the
Special Tax according to this Rate and Method of Apportionment of Special Tax.
Assessor's Parcel or Parcel means a lot, parcel or airspace parcel shown on an
Assessor's Parcel Map with an assigned Assessor's Parcel number.
Assessor's Parcel Map means an official map of the Assessor of the County designating
Parcels by Assessor's Parcel number.
Bonds mean any bonds or other debt(as defined in Section 53317(d) of the Act), whether
in one or more series, issued by the City for CFD No. 2003-1 under-the Act.
City means the City of Huntington Beach.
City Council means the City Council of the City of Huntington Beach, acting as the
legislative body of CFD No. 2003-1.
County means the County of Orange.
Development Agreement means the Owner Participation Agreement(OPA) between the
Redevelopment Agency of the City of Huntington Beach and Huntington Center
Associates, LLC, dated October 2, 2000.
Exempt Land means (1) any real property within the boundaries of CFD No. 2003-1
which generally serves the development subject to the Development Agreement and is
owned by a governmental agency for public right-of-way purposes including, but not
limited to parking structures, streets, public walkway corridors, and slopes as determined
in each Fiscal Year by the Administrator or (2) any Assessor's Parcel for which the
Special Tax has been paid in full.
Fiscal Agent means the fiscal agent who is a party to the Indenture, if so approved.
Fiscal Year means the period commencing on July 1 and ending on the following June
30, in any year in which the Bonds are outstanding.
Indenture means the indenture, fiscal agent agreement, resolution or other instrument
approved pursuant to the Resolution of Issuance and pursuant to which Bonds are issued,
as modified, amended and/or supplemented from time to time, and any instrument
replacing or supplementing the same.
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Maximum Special Tax means, with respect to any Parcel of Taxable Property, the
maximum Special Tax, determined in accordance with Section C, that can be levied in
any Fiscal Year on such Parcel. Maximum Special Tax shall not include the amounts
payable under the Parking Structure Maintenance Special Tax.
Outstanding Bonds means all Bonds that are then outstanding under the Indenture.
Parking Structure Maintenance Special Tax means the portion of the Special Tax to
be levied in an amount equal to the amount required in any Fiscal Year for CFD No.
2003-1 necessary to pay all actual, documented maintenance costs,management fees and
other operating expenses of the parking structure being financed by a portion of the Bond
proceeds to the extent such costs, fees and operating expenses exceed revenues generated
by such parking structure. The calculation and inclusion or exclusion of particular items
of expense or income into such costs, fees, expenses and revenues shall be subject to and
limited by the provisions of the following documents,which documents shall be in the
form approved by the City Council in connection the issuance of the Bonds, and which
documents, upon such approval, shall be deemed to be incorporated herein by this
reference: (i) any covenants, conditions or restrictions encumbering such parking
structure and/or the real property upon which it is to be constructed as of the date of
issuance of the Bonds, (ii)the initial parking management agreement governing the
operation and maintenance of such parking structure (the provisions of such initial
parking management agreement to govern the determination of the Parking Structure
Maintenance Special Tax for so long as the Special Tax lien remains in effect, .
notwithstanding any earlier expiration or termination of such agreement), and.(iii) any
amendments to the foregoing covenants, conditions or restrictions or agreements.
Reserve Fund means the fund of that name created under the Indenture.
Resolution of Issuance means the resolution adopted by the City Council of the City,
acting as the legislative body of CFD No. 2003-1, authorizing the issuance of the Bonds
in accordance with the Act.
Special Tax means the special tax to be levied pursuant to the Act and this Rate and
Method of Apportionment of Special Tax in each Fiscal Year on Taxable Property within
CFD No. 2003-1.
Special Tax Requirement means the amount required in any Fiscal Year for CFD No.
2003-1 necessary: (i) to pay the annual scheduled debt service on the Outstanding Bonds
due in the calendar year which commences in such Fiscal Year, (ii) to pay any amounts
required to establish or replenish the Reserve Fund for all Outstanding Bonds, (iii) to pay
Administrative Expenses, (iv) to pay costs of any credit enhancement (including fees and
expenses related to any letter of credit) for the Bonds, and less a credit for available funds
determined pursuant to the Indenture, and (v) to pay the Parking Structure Maintenance
Special Tax.
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Taxable Property means all of the Assessor's Parcels within the boundaries of CFD No.
2003-1, which are not Exempt Land or exempt from the Special Tax pursuant to law, but
in no circumstance shall the total amount of Taxable Property be less than 40.63 acres.
Trustee means the trustee who is a party to the Indenture, if so approved.
B.. IDENTIFYING TAXABLE PROPERTY
Not less than fifteen business days prior to the beginning of each Fiscal Year, the
Administrator shall determine which Parcels in CFD No. 2003-1 are Taxable Property.
The Taxable Property shall be subject to Special Taxes in accordance with the rate and
method of apportionment described in Sections C and D below.
C. MAXIMUM SPECIAL TAX
The Maximum Special Tax for the Assessor's Parcels of Taxable Property in CFD No.
2003-1 shall be the greater of (1) $65,050 per Acre or (2) the amount determined
pursuant to the following steps:
Step 1: Determine the maximum annual debt service on all Outstanding
Bonds;
Step 2: Multiply the total debt service determined in Step 1 by 1.1 and add
the Administrative Expenses;
Step 3: Determine the Acreage of Taxable Property within the CFD No.
2003-1;
Step 4: Divide the amount from Step 2 by the Acreage from Step 3 to
determine the Maximum Special Tax per Acre of Taxable
Property.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2004-2005, and for each Fiscal Year thereafter, the City
Council shall levy the Special Tax proportionately on each Assessor's Parcel of Taxable
Property at up to 100% of the Maximum Special Tax, as determined by reference to
Section C, above, as needed to satisfy the Special Tax Requirement.
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E. LIMITATIONS _
No Special Taxes shall be levied on any Parcel after such Parcel becomes Exempt Land.
The Special Tax may be levied and collected on Taxable Property commencing with
Fiscal Year 2004-2005, and for each Fiscal Year thereafter, and until the date on which
principal and interest on all Outstanding Bonds'have been paid in full (or provision for
their payment has been made). Notwithstanding the foregoing, the Parking Structure
Maintenance Special Tax may be levied and collected until such time as the City and the
CFD No. 2003-01 have divested all remaining ownership interests in the parking
structure. Upon determination by the Administrator that such requirements have been
met, the Special Tax lien shall be removed from all Parcels in CFD No. 2003-1.
F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary
ad valorem property taxes,provided, however, that the City on behalf of CFD No. 2003-1
may directly bill the special tax or any portion thereof, may collect special taxes or any
portion thereof at a different time or in a manner if necessary to meet its financial
obligations, and may covenant to foreclose and may actually foreclose on delinquent
Assessor's Parcels as permitted by the Act. Notwithstanding the foregoing, the Parking
Structure Maintenance Special Tax shall be directly billed in each instance and not billed .
with ad valorem property taxes.
G. APPEALS
The City Council shall establish as part of the proceedings and administration of CFD
No. 2003-1, a special three-member Review/Appeal Committee. The Review/Appeal
Committee shall interpret this Rate and Method of Apportionment and make
determinations relative to the annual administration of the Special Tax and any appeals,
as herein specified. The owner of any Taxable Property within CFD No. 2003-1 claiming
that the amount or application of the Special Tax is not correct may file a written notice
of appeal with the Review/Appeal Committee not later than one calendar year after
having paid the Special Tax that is disputed. The Review/Appeal Committee.shall
promptly review the appeal, and if necessary, meet with the owner, consider written and
oral evidence regarding the amount of the Special Tax, and resolve the appeal. If the
Review/Appeal Committee's decision requires the Special Tax to be modified or changed
in favor of the owner, a cash refund shall not be made (except for the last year of the
levy), but an adjustment shall be made to the next Special Tax levy. This procedure shall
be exclusive and its exhaustion by any owner shall be a condition precedent to any legal
action by such owner.
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H. PREPAYMENT OF SPECIAL TAX
The following definitions apply solely to this Section H:
Amount of Current.Special Taxes Paid means the amount of the Special Tax levied
against the subject Assessor's Parcel that was paid to the County or the City by the owner
of the subject Assessor's Parcel and would be applied to debt service payments on the
Redemption Date and the Interest Payment Date immediately following the Redemption
Date.
Outstanding Bonds means all Bonds that are deemed to be outstanding under the
Indenture the day immediately preceding the next Interest Payment Date.
Redemption Date means the Interest Payment Date on which Bonds are proposed to be
redeemed from the prepayments of the Special Tax.
1. Prepayment in Full
The Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and
the obligation of such Assessor's Parcel to pay the Special Tax permanently satisfied as
described herein. The owner intending to prepay the Special Tax obligation on one or
more Assessor's Parcel(s) shall provide the Administrator with written notice of intent to
prepay. It shall be a condition precedent to prepayment that the owner intending to
prepay the Special Tax must pay to the County all past due Special Tax on the Assessor's
Parcel to be prepaid and provide proof of payment to the Administrator. Promptly
following receipt of such notice, the Administrator shall notify the owner of such
Assessor's Parcel(s) of the prepayment amount of such Assessor's Parcel(s). The
Administrator may charge a reasonable fee for providing this figure. Prepayment must be
made not less than 90 days prior to the next occurring date that Bonds may be redeemed
from the proceeds of such prepayment pursuant to the Indenture.
The Prepayment Amount (defined below) shall be calculated as summarized below
(capitalized terms as defined above or below):
Bond Redemption Amount
Plus Redemption Premium
Plus Defeasance Amount
Plus Administrative Fees and Expenses
Less Reserve Fund Credit
Less Amount of Current Special Taxes Paid
Total: Equals Prepayment Amount
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As of the proposed date of prepayment, the Prepayment Amount(defined below) shall be
calculated as follows:
Paragraph No.
1. For Assessor's Parcels of Taxable Property:intended to be prepaid, compute the
Maximum Special Tax for such Assessor's Parcels for the current Fiscal Year. .
2. Divide the Maximum Special Tax computed pursuant to Paragraph 1 by the total
Maximum Special Tax of all Assessor's Parcels of Taxable Property for the
current Fiscal Year.
3. Multiply the quotient computed pursuant to Paragraph 2 by the Outstanding
Bonds as defined in this Section G to compute the amount of Outstanding Bonds
to be retired and prepaid, and round the result up to the nearest multiple of$5,000
(the Bond Redemption Amount).
4. Multiply the Bond Redemption Amount less the par amount of Bonds scheduled
to mature on the Redemption Date by the applicable redemption premium (the
Redemption Premium).
5. Compute the amount needed to pay interest on the Bond Redemption Amount
from the Interest Payment Date immediately preceding the Redemption Date to
the Redemption Date.
6. Compute the amount the Administrator reasonably expects to derive from the
reinvestment of the.Prepayment Amount from the date of prepayment until.the
redemption date for the Outstanding Bonds to be redeemed with the prepayment.
7. Add the amounts computed pursuant to Paragraph 5 and subtract the amount
computed pursuant to Paragraph 6 (the Defeasance Amount).
S. Determine the administrative fees and expenses associated with the costs of
computation of the prepayment, the costs to invest the prepayment proceeds, the
costs of redeeming Bonds, and the costs of recording any notices to evidence the
prepayment and the redemption(the Administrative Fees and Expenses).
9. Determine the reserve fund credit (the Reserve Fund Credit) which shall equal
the lesser of: (a) the expected reduction in the Reserve Requirement (as defined
in the Indenture), if any, associated with the redemption of Outstanding Bonds as
a result of the prepayment, or (b) the amount derived by subtracting the new
Reserve Requirement (as defined in the Indenture) in effect after the redemption
of Outstanding Bonds as a result of the prepayment from the balance in the
reserve fund on the prepayment date, but in no event shall such amount be less
than zero.
10. The Special Tax prepayment is equal to the sum of the amounts computed
pursuant to Paragraphs 3, 4, 7 and S, less (i) the amounts computed pursuant to
Paragraph 9 and (ii) the Amount of Current Special Taxes Paid (the Prepayment
Amount).
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11. From the Prepayment Amount, the amounts computed pursuant to Paragraphs 3,
4, 7 (if greater than zero), and 9 shall be deposited into the appropriate fund as
established under the Indenture and be used to redeem Outstanding Bonds or
make debt service payments (as appropriate). The amount computed pursuant to
Paragraph 8 shall be retained by the Administrator.
With respect to any Assessor's Parcel that is prepaid, the City Council shall (i) cause a
suitable notice to be recorded in compliance with the Act, to indicate the prepayment of
the Special Tax and the release of the Special Tax lien on such Assessor's Parcel, (ii)
notify the County that the Special Tax, if any, remaining on the secured tax ro1l for the
Assessor's Parcel has been satisfied and that the County should remove such amounts
from the secured tax roll, and (iii) refund the owner for any Special Tax payments made
on the Assessor's Parcel after the date of prepayment. From and after the prepayment,
the obligation of such Assessor's Parcel to pay the Special Tax shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
amount of the Maximum Special Tax that may be levied on Taxable Property within CFD
No. 2003-1 after the proposed prepayment is at least 1.1 times the maximum annual debt
service on all Outstanding Bonds.
2. Prepayment in Part
The Maximum Special Tax on an Assessor's Parcel of Taxable Property may be partially
prepaid. The amount of the prepayment shall be calculated as in Section H.1, except that
a partial prepayment shall be calculated according to the following formula:
PP = (PH xF) + G
Where these terms are defined as follows:
PP = the partial prepayment
PH= the Prepayment Amount calculated according to Section H.1, minus the amounts
determined in Paragraph No. 8 of Section H.1.
F = the percent by which the owner of an Assessor's Parcel(s) is partially prepaying
the Maximum Special Tax.
G = the amounts determined in Paragraph No. 8 of Section H.1.
The owner of an Assessor's Parcel who desires to partially prepay the Maximum Special
Tax shall notify the Administrator of (i) such owner's intent to partially prepay the
Maximum Special Tax, and (ii) the percentage by which the Maximum Special Tax shall
be prepaid. The Administrator shall promptly provide the owner with a statement of the
amount required for the partial prepayment of the Maximum Special Tax for an
Assessor's Parcel following receipt of the request.
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With respect to any Assessor's Parcel that is partially prepaid, CFD No. 2003-1 shall (i)
distribute the funds remitted to it according to Paragraph 11 of Section H.1, and (ii)
indicate in the records of CFD No. 2003-1 that there has been a partial prepayment of the
Maximum Special Tax and that a portion of the Maximum Special Tax equal to the
outstanding percentage (i.e., 100% - F) of the remaining Maximum Special Tax shall
continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D.
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Res. No. 2003-10
STATE OF CALIFORNIA
COUNTY OF ORANGE j ss:
CITY OF HUNTINGTON BEACH }
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an regular meeting thereof held on the
3Td day of February 2003 by the following vote:
AYES: Sullivan, Coerper, Green, Boardman, Cook, Houchen, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk and ex-ofFcio C rk of the
City Council of the City of
Huntington Beach, California