HomeMy WebLinkAboutCity Council - 2004-68 RESOLUTION NO. 2004-68
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF
THE CITY OF HUNTINGTON BEACH WITH RESPECT
TO ESTABLISHMENT OF PROPOSED CITY OF
HUNTINGTON BEACH COMMUNITY
FACILITIES DISTRICT NO. 2004-1
(THE STRAND)
WHEREAS, the City Council (the "City Council") of the City of Huntington Beach may,
by its own initiative, institute proceedings for the establishment of a community facilities district
pursuant to Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of the City
of Huntington Beach and 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 purposes of constructing and financing through the sale of bonds
the construction, acquisition, furnishing and equipping of public facilities which are necessary to
meet increased demands placed upon the City as a result of the development of said real
property; and
WHEREAS, the City Council desires to issue bonds of the proposed community facilities
district,the proceeds of which will be used to pay the cost of acquisition, construction, furnishing
equipping and maintenance of public facilities; and
WHEREAS, the bonds will be repaid from special taxes to be levied on the real property
within the proposed community facilities district, as more fully described herein;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Huntington Beach, the following:
Section 1. Findings. The City Council finds that the foregoing recitals are true and
correct;
Section 2. Proposed District. A 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 and 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 "City of Huntington Beach Community Facilities District No. 2004-1 (The
Strand) County of Orange, State of California."
Section 3. Description and Map of Boundaries. The boundaries of the proposed
community facilities district, are described in Exhibit "A" attached hereto, and are also shown on
the map entitled 'Proposed Boundaries of City of Huntington Beach Community Facilities
District No. 2004-1 (The Strand) County of Orange, 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
GWulvihillWisc\Redevelopment AgencflThe Strand-Resolntention.DOC1
Resolution No. 2004-68
Highways Code, the City Clerk shall, after conforming with the other requirements of Section
3111 of said Code, file the original of said map in her office, and not later than ten (10) days
prior to the date of the public hearing set forth in Section 8 hereof shall record a copy of said
boundary map with the County Recorder of the County of Orange.
Section 4. Types of Facilities, Incidental Expenses.
The types of public facilities and services 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.
(c) Sewers, sewer treatment facilities and sewer capacity acquisition.
(d) Parking facilities including parking garage.
(e) Water distribution facilities, including fire hydrants and water
storage facilities.
(f) Street signalization and signage, including traffic fees.
(g) Fire facilities including structures and capital equipment.
(h) Utility facilities construction and relocation.
(i) Acquisition of land, rights-of-way and easements necessary for any
of the facilities specified in paragraphs (a) through (h) above.
0) 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, inspection, and
maintenance of such facilities.
Section 5. 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
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
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, and
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Resolution No. 2004-68
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 proposed community facilities district. The rates 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 6. Exempt Properties. Pursuant to Section 53340 of the California
Government Code, properties of entities of the state, federal, and local governments not subject
to a leasehold interest shall be exempt from the levy of special taxes for the payment of the
principal of and interest on the bonds of the proposed community facilities district.
Section 7. Necessity. The City Council finds that the proposed public facilities
described in Section 4 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 8. Hearing. A public hearing on the establishment of the proposed
community facilities district shall be held at 7:00 p.m. on September 20, 2004, in the City
Council Chambers at the City Hall, 2000 Main Street, Huntington Beach, California.
Section 9. 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
fifteen (15) days before the date of the hearing, and shall contain the information required by
said Section 53322.
Section 10. Reports. The officers 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 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
therewith. All such reports shall be made a part of the record of the hearing to be held pursuant
to Section 8 hereof
Section 11. Annexation of Territory. Other property within the boundaries of the 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 at the time that parcel or those parcels are annexed.
Section 12. 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
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Resolution No. 2004-68
to, paying any costs incurred by the City in creating the community facilities district and to 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 person or entity for the value or cost, whichever is
less, of the work-in-kind, as determined by the City Council.
Section 13. Description of Voting Procedures. The voting procedures to be followed
in conducting the consolidated special elections on (i) the proposition of the proposed
community facilities district incurring a bonded indebtedness in an amount not to exceed
$15,000,000 (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 bonds thereof, 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 twelve (12)persons have been registered to vote within
the territory of the proposed community facilities district for each of the ninety (90) days
preceding the close of the public or pro-test 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 City 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 twelve (12)persons have not been registered to vote within the
territory of the community facilities district for each of the ninety (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 or owners of the leasehold interest in
the land (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 or leaseholder 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 conducted by the City Clerk pursuant to the Municipal Code of the City
of Huntington Beach and Section 53326 of the California Government Code.
Section 14. Tender of Bonds. This City Council hereby reserves the right, on behalf
of the proposed community facilities district to accept tenders of bonds in full or partial payment
of special taxes to be levied within the proposed community facilities district pursuant to Section
3.56.320 of the Municipal Code of the City of Huntington Beach.
The procedures for conducting the consolidated special elections, if they are held,
may be determined as the City Council may determine to be necessary or desirable by a
GAMu1vihi11Wisc\Redeve1opment AgencylThe Strand-ResoIntention.DOC4
Resolution No. 2004-68
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 16 th day of August , 2004.
a
ATTEST: APPROVED AS TO FORM:
�n� n
Ci lerk ayAony 7L/
I
REVIEWED AND APPROVED: INITIATED AND APPROVED
ity A inistrator f Dir Economic Development
Director of Public Works
GAMulvihiJhMisclRedevelopment AgencyMc Strand-Reso[ntention.D005
Resolution No. 2004-68
EXHIBIT A
LEGAL DESCRIPTION
CITY OF HUNTINGTON BEACH
COMMUNITY FACILITIES DISTRICT NO. 2004-1
(THE STRAND)
COUNTY OF ORANGE
City of Huntington Beach Community Facilities District No. 2004-1 (The Strand),
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:
GAMulvihilllMiseWedevelopment Agency\The Strand-Aesolntention.DOC6
Resolution No. 2004-68
PSOMAS
I L> GAL DESCRIPTION
2 Proposed Boundaries of City of Huntington Beach
3 Community Facilities District No.2004-1 (The Strand)
4 County of Orange,State of California
5
6 In the City of'Fluntington Beach, County of Orange, State of California,being Lots 10,
7 12, 14, 16,18,20,22,24,26,28,a portion of Lot 9 and a portion of the alleys adjacent to
8 said Lots,in Block 104;Lots 1 through 21,inclusive,23,25,27, and a portion of the s'
9 alleys adjacent to said Lots,in Block 105;together with that portion of Fifth Street
10 adjacent to said Blocks 104 and 105,all as shown on Map of Huntington Beach filed in
11 Book 3,Page 36 of Miscellaneous Maps,Records of said County described as follows:
12
13 Beginning at most easterly comer-of said Lot 28; thence South 41°3 T44"West �
14 225.10 feet along the northwesterly lime of the Alley, 15 feet wide,within said Block 104,
15 to the most southerly corner of Lot 12 9f'said Block 104;thence North 48°22'14"West
16 67.7.1 feet along.the southwesterly line of said Lot 12 to the northeasterly prolongation of
17 the northwesterly line of the Deed recorded October 10, 1990 as Instrument
1s No. 90-538988,of Official Records of said County;thence South 41°37'10"West f
19 125..05 feet along said prolongation and said northwesterly line to the northeasterly line
20 of Pacific Coast Highway(Ocean Avenue), 100.00 feet wide,per the Map of Huntington
21 Beach,filed in Book 3,Page 36 of Miscellaneous Maps,Records of said County;thence
22 North 48°21'52"West 359.91 feet along said northeasterly line to the southeasterly line
23 of Sixth Street,75 feet wide as shown on said Map of Huntington Beach;thence North
24 41037'11"East 250.03 feet along said southeasterly line to the most northerly corner of
25 Lot 20 of'said Block 105;thence
26 South 481122150"East 125..07 feet along the northeasterly line of said Lot 20 and the
27 southeasterly prolongation theaeof to the centerline of the Alley, 15 feet wide,within said
28 Block 105;thence North 41'37'11"East 100.01 feet along said centerline to the
f
29 southwesterly line of Walnut Avenue, 60 feet wide as shown on said Map of"Huntington
30 Beach;thence South 48°22'50"East 302.58 feet along said southwesterly line to the
31 POINT OF BEGENNING.
M:12HUN0113001surveyllegalsll'ract No_1640G Rev doc Page 1 of'2
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Resolution No. 2004-68
PS OMAS
1 Containing 2.956 acres,more or less.
2
3 This real property description has been prepared.by me or under my direction,in
4 canfo ance with the Professional Land.Surveyors' Act.
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LXH1817 /7
Resolution No. 2004-68
PROPOSED BOUNDARIES OF °'EDAIVflF"D
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OF HUNTNGTON BEACH COMMUNITYFACAJTW
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BALIFCR COUNTY OF CRINGE,STATE IT PrPiY 2'
CJILFOI.NIA,WAS APPROVED BY THE CITY 4"s
COUNCIL OF THE CITY OF HUNTNGTON
BEACH AT A REGULAR MEETING THEREOF
NE'
D ON THE DAY OF
.BY ITS RESOLUTION W...s o.x
Na 7 60' 120' 24T WE
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MOAN L FLYNN.THE CITY CLERK OF THE GRAPHIC SCALE
CITY OF H UNTINGTON BEACH
SHEET 1 OF 1
Resolution No. 2004-68
EXHIBIT B
CITY OF HUNTINGTON BEACH
COMMUNITY FACILITIES DISTRICT NO.2004-1
(THE STRAND)
RATE AND METHOD OF APPORTIONMENT OF
THE SPECIAL TAX
(Attached)
G:1Mu1vihi1Wisc%Redeve1opment Agencffhe Strand-Resolntention.D00
Resolution No. 2004-68
CITY OF HUNTINGTON BEACH
COMMUNITY FACILITIES DISTRICT NO. 2004-1
(THE STRAND)
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. 2004-1 (The Strand) (herein CFD
No. 2004-1) 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. 2004-1, 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 administration of CFD No. 2004-1: 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
Resolution No. 2004-68
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.
2004-1.
Administrator means the Director of Administrative Services or such other person or
entity designated by the Administrator or the City Council to administer the Special Tax
according to this Rate and Method of Apportionment of Special Tax.
Agency means the Redevelopment Agency of the City of Huntington Beach.
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. Hotel Airspace
Assessor's Parcel means the parcel covering the airspace designated for hotel use on the
recorded airspace condominium map for CFD No. 2004-1 with an assigned Assessor's
Parcel number. Parking Garage Airspace Assessor's Parcel means the parcel or
parcels covering the airspace designated for parking purposes on the recorded airspace
condominium map for CFD No. 2004-1 with an assigned Assessor's Parcel number.
Retail Airspace Assessor's Parcel means the parcel or parcels covering the airspace
designated for retail commercial use on the recorded airspace condominium map for CFD
No. 2004-1 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. 2004-1 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. 2004-1.
County means the County of Orange.
DDA means that certain Disposition and Development Agreement dated June 17, 1999,
which was supplemented by that certain [First] Implementation Agreement entered into
between the Agency and CIM Group, LLC dated April 6, 2000; that certain Second
Implementation Agreement entered into between the Agency and CIM Group, LLC dated
March 5, 2001; that certain Third Implementation Agreement entered into between the
Agency and CIM Huntington Beach, LLC dated October 30, 2002; and that certain
Fourth Implementation Agreement entered into between Agency and CIM/Huntington,
LLC dated September 15, 2003; including all Attachments thereto and any supplemental
amendments or agreements thereto hereafter approved by the Agency and
CIM/Huntington, LLC and/or their assigns and successors-in-interests.
7/26/2004 2
Resolution No. 2004-68
Exempt Land means (1) any real property within the boundaries of CFD No. 2004-1
which generally serves the development subject to the DDA and is owned by a
governmental agency for public right-of-way purposes including, but not limited to
streets, public walkway corridors and the Parking Garage Airspace Assessor's Parcel 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 I 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.
Maximum Special Tax means, with respect to any Hotel or Retail Airspace Assessor's
Parcel, the maximum Special Tax determined in accordance with Section C that can be
levied in any Fiscal Year on such Parcel.
Maximum Back-up Special Tax means, with respect to any underlying Assessor's
Parcel of Taxable Property (prior to the recording of an airspace condominium parcel
map), the maximum back-up Special Tax that can be levied in any Fiscal Year on such
Parcel. The Maximum Back-up Special Tax is $590,000 per Acre of Taxable Property.
Outstanding Bonds means all Bonds that are then outstanding under the Indenture.
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. 2004-1, 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. 2004-1.
Special Tax Requirement means the amount required in any Fiscal Year for CFD No.
2004-1 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.
7/26/2004 3
Resolution No. 2004-68
Square Foot or Square Footage means the area of an Assessor's Parcel as shown on a
recorded tract or parcel map for airspace condominium purposes, or if the 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 Square
Footage of a particular Parcel is not indicated or is unclear after reference to available
maps, the Administrator shall determine the appropriate square footage for a Parcel.
Taxable Property means all of the Assessor's Parcels within the boundaries of CFD No.
2004-1, 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 2.20 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. 2004-1 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.
2004-1 shall be the greater of (1) if a tract or parcel map for airspace condominium
purposes has not been recorded, the Maximum Back-up Special Tax or (2) if a tract or
parcel map for airspace condominium purposes has been recorded, 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: Multiply the amount from Step 2 by 0.6 and divide by the square
footage of the Hotel Airspace Assessor's Parcel to determine the
Maximum Special Tax per square foot for the Hotel Airspace
Assessor's Parcel;
Step 4: Multiply the amount from Step 2 by 0.4 and divide by the square
footage of the Retail Airspace Assessor's Parcel to determine the
Maximum Special Tax per square foot for the Retail Airspace
Assessor's Parcel.
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Resolution No. 2004-68
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2006-2007, 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.
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 2006-2007, 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). Upon determination by the Administrator that such
requirements have been met, the Special Tax lien shall be removed from all Parcels in
CFD No. 2004-1.
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. 2004-1
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.
G. APPEALS
The City Council shall establish as part of the proceedings and administration of CFD
No. 2004-1, 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. 2004-1 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
7/26/2004 5
Resolution No. 2004-68
be exclusive and its exhaustion by any owner shall be a condition precedent to any legal
action by such owner.
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
7/26/2004 6
Resolution No. 2004-68
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).
8. 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 8, less (i) the amounts computed pursuant to
Paragraph 9 and (ii) the Amount of Current Special Taxes Paid (the Prepayment
Amount).
7/26/2004 7
Resolution No. 2004-68
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 roll 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. 2004-1 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.
7/26/2004 8
Resolution No. 2004-68
With respect to any Assessor's Parcel that is partially prepaid, CFD No. 2004-1 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. 2004-1 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.
7/26/2004 9
Resolution No. 2004-68
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF HUNTINGTON }
BEACH }
I, JoanL._ Flynn, City Clerk of the City of Huntington Beach, hereby certify
this to be a true and correct copy of Resolution Number 2004-6$
Witness my hand and the seal of the City of Huntington Beach this 16thday of
August , 2004.
QM20
City Clerk
G:%Mu1vihi111MisclRedeve1oprnent Agencffhe Strand-Resolntention.DQC8
Res. No. 2004-68
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly appointed, 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 16th day of
August, 2004 by the following vote:
AYES: Sullivan, Coerper, Green, Boardman, Cook, Houchen
NOES: None
ABSENT: Hardy
ABSTAIN: None
ity Clerk and ex-off(lo Clerk of the
City Council of the City of
Huntington Beach, California