HomeMy WebLinkAbout1992-07-14 - AGENDA REPORTS - CMTY FACILITIES DIST 92-1 (2)PUBLIC HEARING
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND
AGENDA REPORT
City. Manager Approval
Item to be presented by.
Steve Stark �S
July 14, 1992
Community Facilities District No. 92-1 (Valencia Town Center)
Finance
At the meeting of June 9, 1992; the Council adopted the resolution of Intention to Establish
Community Facilities District and a resolution of Intention to Incur Bonded Indebtedness Secured
by a Special Tax. The items presented tonight will take the remaining procedural steps to
complete the formation of Community Facilities District (CFD) No. 92-1 (Valencia Town
Center).
The first resolution to be adopted is Resolution No. 92-141 Approving the Execution of the
various Agreements. The terms of the three Agreements have previously been the subject of
negotiation among the parties to each and are necessitated both by the City's guidelines and the
terms of the Mello -Roos Act (the "Act"). The three Agreements are as follows:
1. The Agreement for Acquisition between.CFD 92-1 and the Newhall Land and Farming
Company;
2. The First Amendment to Highway Improvement Agreement among Caltrans, CFD 92-1
and the Valencia Company (dba of The Newhall Land and Farming Company); and
3. The Cooperative Financing Agreement by and among the County of Los Angeles, CFD
92-1 and The Newhall Land and Farming Company.
The latter two agreements are necessitated by the requirements of the Act that whenever a facility .
financed by a community facilities district is to be owned by another public entity that a joint
exercise of powers agreement be entered into.
Adopted: 7 -/ y- 9.t -o-" UODS
cam. �oaaa,d Agenda Item:
� ,:5e V'e' —
The next resolution to be adopted is Resolution No. 92-142 Formation of Community Facilities
District No. 92-1. It too meets certain requirements for content as prescribed by the Act.
Following adoption of the Resolution of Formation, all of the following resolutions would be
adopted by the Council in its capacity as the "legislative body" of CFD 92-1. The resolutions
are as follows:
1. Resolution No. CFD 92.1-1 Determining the Necessity to incur Bonded Indebtedness; and
2. Resolution No. CFD 92-1-2 Calling a Special Election.
In anticipation of the passage of Resolution Nos. CFD 92-1-1 and 92-1-2, the City Clerk has
previously mailed to The .Newhall Land and Farming Company the materials required for a
mailed ballot election and has received from The Newhall Company a Waiver and Consent to
the Shortening of Time for the Special Election and its Official Ballot. The ballot was previously
canvassed and the vote was unanimously in favor of the formation of CFD 92-1, as stated in the
"Certificate of Clerk Re Canvass of Election Returns" which has been executed and filed by the
City Clerk. At this point, the Council should adopt Resolution No. 92-1-3 Canvassing the
Results of the Election in order to officially complete the election process.
The Council will adopt the last of the resolutions, which is Resolution No. 92-1-4 Providing for
the issuance of Bonds. The adoption of the resolution at this time is purely pro forma in nature,
since it will allow the bond counsel to file a validation action in Los Angeles County Superior
Court as set forth in Section 8.20 of the resolution. During the pendency of the validation action
, the participants in the financing will work out the final terms of the bond issue and return to
the Council some time in September for the final amendment and adoption of Resolution No.
CFD 92-1-4.
Additionally, it will be necessary at this time for the Council to have the first reading of
Ordinance No. 92-1-1 which authorizes the levy of the special tax approved at the. special
election conducted at the meeting. It is anticipated that the closing (delivery) for the bonds will
occur approximately two weeks following the final amendment and adoption of Resolution No.
92-1-4.
RECOMMENDATION
To accept public testimony and adopt Resolution Nos. 92-141,92-142, CFD 92-1-1, CFD 92-1-2,
CFD 92-1-3, CFD 92-1-4, and introduce and pass CFD Ordinance 92-1-1 to second reading to
August 25, 1992.
ATTACHMENTS
Resolution No. 92-141
Agreement for Acquisition between CFD 92-1 and the Newhall Company.
First amendment to Highway Improvement Agreement among Caltrans, CFD 92-1, and
the Valencia Company
Cooperative Financing Agreement by and among County of Los Angeles, CFD 92-1, and
the Newhall Company.
Resolution No. 92-142
Community Facilities District 92-1 Report
Resolution CFD 92-1-1
Resolution CFD 92-1-2
Resolution CFD 92-1-3
Resolution CFD 92-1-4
Ordinance CFD 92-1-1
Notice of special tax lien
Notice of meeting to consider proposed Ordinance No. CFD 92-1-1
Notice of adoption of Ordinance No. CFD 92-1-1
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SUMMARY OF ATTACHMENTS FOR
COMMUNITY FACILITIES'DISTRICT NO.92-1
The list of attachments on the staff report, item 13, Communities Facilities
District No. 92-1 (Valencia Town Center), are available for review by the City
Council, staff and the public in the City Clerk's Office, Room 301. Below is
a list of those attachments:
1. Resolution No. 92-141, approving the forms of joint financing and
acquisition agreements and authorizing their execution together with
other related documentation.
2. Agreement for Acquisition between CFD 92-1 and Newhall Land & Farming
Company.
3. First Amendment to Highway Improvement Agreement among Caltrans, CFD
92-1 and the Valencia Company.
4. Cooperative Financing Agreement by and among County of ,Los Angeles,
CFD 92-1, and the Newhall Company.
5. Resolution No. 92-142, determining the validity of prior proceedings
and establishing CFD 92-1 of the City of Santa Clarita.
6. Communities Facilities District 92-1 Report.
7. Resolution CFD 92-1-1, acting on behalf of CFD 92-1, determining the
necessity to incur bonded indebtedness.
8. Resolution CFD 92-1-2, acting on behalf of CFD 92-1, calling a
special election.
9. Resolution CFD 92-1-3, acting on behalf of CFD 92-1, canvassing the
results of the election held within CFD 92-1.
10. Resolution CFD 92-1-4, authorizing and providing for the issuance of
bonds of CFD 92-1.
11. Ordinance CFD 92-1-1, acting as the legislative body of CFD 92-1,
authorizing the levy of a special tax.
12. Notice of Special Lien.
13. Notice of meeting to consider proposed.Ordinance CFD 92-1-1.
14. Notice of adoption of Ordinance No. CFD 92-1-1.
ORDINANCE NO. CFD 92-1-1
ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, ACTING AS
THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 92-1 (VALENCIA TOWN CENTER)
AUTHORIZING THE LEVY OF A SPECIAL TAX
WHEREAS, the City Council of the City of Santa Clarita,
California (the "Council") is authorized to adopt ordinances
pursuant to Government Code Section 53316; and
WHEREAS, on June 9, 1992, the Council adopted Resolution
No. 92-109 stating its intention to form Community Facilities
District No. 92-1 of the City of Santa Clarita (Valencia Town
Center) ("Community Facilities District No. 92-1") pursuant
to the Mello -Ross Community Facilities Act of 1982, as
amended, (the "Act"); and
WHEREAS, on June 9, 1992, the Council also adopted
Resolution No. 92-110 stating its intention to incur bonded
indebtedness in the amount of not -to -exceed $20,000,000
within proposed Community Facilities District No. 92-1 for
the purpose of financing the purchase, construction,
expansion or rehabilitation of certain real and .other
tangible property with an estimated useful life of five (5)
years or longer, including sewer, street, fire protection,
bridge, paseo and drainage improvements and other
governmental facilities which the City and other public
entities are authorized by law to construct, own or operate,
which are necessary•to meet increased demands placed upon the
City and other public entities as a result of development or
rehabilitation occurring within .the proposed Community
I
Facilities District No. 92-1 (the "Facilities"), to serve the
area within Community Facilities District No. 92-1; and
WHEREAS, notice was published as required by law
relative to the intention of the Council to form proposed
Community Facilities District No. 92-1 and to incur bonded
indebtedness in the amount not -to -exceed $20,000,000 within
the boundaries of Community Facilities District No. 92-1; and
WHEREAS, on July 14, 1992, this Council held a noticed
public hearing as required by law relative to the
determination to proceed with the formation of Community
Facilities District No. 92-1, the rate and method of
apportionment and manner of .collection of the special tax to
be levied within Community Facilities District No. 92-1 to
pay the principal and interest on the proposed bonded
indebtedness of Community Facilities District No. 92-1 and
relative to the necessity for authorizing the bonds, the
purpose for which the bonds are to be issued, the amount of
the proposed debt, the' maximum term of the bonds and the
maximum annual rate of interest to be paid; and
WHEREAS, at said hearing 'all persons desiring to be
heard on all matters pertaining to the formation of Community
Facilities District No. 92-1 and the incurring of. bonded
indebtedness by Community Facilities District No. 92-1 were
heard and a full and fair hearing was held; and
WHEREAS, the Council subsequent to said hearing adopted
Resolution No. 92-142 determining the validity of prior
proceedings relative to the formation of Community Facilities
-2-
District No. 92-1, established Community Facilities District
No. 92-1 and authorized the levy of a special tax within
Community Facilities District No. 92-1; and
WHEREAS, the Council subsequent to said hearing adopted
Resolution No. CFD 92-1-2 which called an election within
Community Facilities District No. 92-1 for July 14, 1992 on
the proposition of incurring bonded indebtedness, levying a
special tax and setting an appropriations limit; and
WHEREAS, the Hoard subsequent to said hearing also
adopted Resolution No. CFD 92-1-1 which determined the
necessity to incur bonded indebtedness in the amount not -to -
exceed $20,000,000 within Community Facilities District No.'
92-1; and
WHEREAS, on July 14, 1992, an election was held within
Community Facilities. District No. 92-1 in which .the eligible
electors approved by more than two-thirds (2/3) vote the
proposition of incurring bonded indebtedness and levying a
special tax;
NOW, THEREFORE, the City Council of the City of Santa
Clarita, California, acting as the legislativebody of
Community Facilities District No. 92-1, does ordain as
follows:
Section 1. A special tax is levied within the
boundaries of Community Facilities District No. 92-1 pursuant
to the Rate and Method of Apportionment set forth in Exhibit
"A" attached hereto and herby incorporated herein by
reference in an amount necessary to pay all of the costs of
-3-
ORDINANCE NO. CFD 92-1-1
ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, ACTING AS
THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 92-1 (VALENCIA TOWN CENTER)
AUTHORIZING THE LEVY OF A SPECIAL TAX
WHEREAS, the City Council of the City of Santa Clarita,
California (the "Council") is authorized to adopt ordinances
pursuant to Government Code Section 53316; and
WHEREAS, on June 9, 1992, the Council adopted Resolution
No. 92-109 stating its intention to form•Community Facilities
District No. 92-1 of the City of Santa Clarita (Valencia Town
Center) ("Community Facilities District No. 92-111) pursuant
to the Mello -Ross Community Facilities Act of 1982, as
amended, (the "Act"); and
WHEREAS, on June 9, 1992, the Council also adopted
Resolution No. 92-110 stating its intention to incur bonded
indebtedness in the amount of not -to -exceed $201000,000
within proposed Community Facilities District No. 92-1 for
the purpose of financing the_ purchase, construction,
expansion or rehabilitation of certain real and other
tangible property with an•estimated useful life of five (5)
years -or longer, including sewer, street, fire protection,
bridge, paseo and _ drainage improvements and other
governmental facilities which the City and other public
entities are authorized by law to construct, own or operate,
which are necessary to meet increased demands placed upon the
City and other public entities as a result of development or
rehabilitation occurring within the proposed Community
Facilities District No. 92-1 (the "Facilities"), to serve the
area within Community Facilities District No. 92-1; and
WHEREAS, notice was published as required by law
relative to the intention of the Council to form proposed
Community Facilities District No. 92-l' and to incur bonded
indebtedness in the amount not -to -exceed $20,000000 within
the boundaries of Community Facilities District No. 92-1; and
WHEREAS, on July 14, 1992, this Council held a noticed
public hearing as required by law relative to the
determination to proceed with the formation of Community
Facilities District. No. 92-1, the rate and method of
apportionment and manner of collection of the special tax to
be levied within Community Facilities District No. 92-1 to
pay the principal and interest 'on the proposed bonded
indebtedness of Community Facilities District No. 92-1 and
relative to the necessity for authorizing the bonds, the
purpose for which the bonds are to be issued, the amount of
the propos ed' debt, the maximum term of the bonds and the
maximum annual rate of interest to be paid; and
WHEREAS, at said hearing all persons desiring to be
heard on all matters pertaining to the formation of Community
Facilities District No. 92-1 and the incurring of bonded
indebtedness by Community Facilities District. No. 92-1 were
heard and a full and fair hearing was held; and
WHEREAS, the Council subsequent to said hearing adopted
Resolution No. 92-142 determining the validity of prior
proceedings relative to the formation of Community Facilities
-2-
District No. 92-1, established Community 'Facilities District
No. 92-1 and authorized the levy of a special tax within
Community Facilities District No. 92-1; and
WHEREAS, the Council subsequent to said hearing adopted
Resolution No. CFD 92-1-2 which called an election within
Community Facilities District No. 92-1 for July 14, 1992 on
the proposition of incurring bonded indebtedness, levying a
special tax and setting an appropriations limit; and
WHEREAS, the Board subsequent to said hearing also
adopted Resolution No. CFD 92-1-1 which determined the
necessity to incur bonded indebtedness in the amount not -to -
exceed $20,000,000 within Community Facilities District No. -
92 -1; and
WHEREAS, on July 14, 1992, an election was .held within
Community Facilities .District No. 92-1 in which the eligible
electors approved by more than two-thirds (2/3) vote the
proposition of incurring bonded indebtedness and levying a
special tax;
NOW, THEREFORE, the City Council of the City of Santa
Clarita, California, acting as the legislative body of
Community Facilities District No. 92-1, does ordain as
follows:
Section 1. A special tax is levied within the
boundaries of Community Facilities District No. 92-1 pursuant
to the Rate and Method of Apportionment set forth in Exhibit
"A" attached hereto and herby incorporated herein by
reference in an amount necessary to pay all of the costs of
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providing the Facilities, periodic costs, and costs of the
tax levy and collection, and all other costs including
amounts payable with respect to the bonded indebtedness.
Section 2.
This legislative body is hereby further
authorized each year, by resolution, to determine the
specific special tax rate and amount to be levied for the
next fiscal year, except that the special tax rate to be
levied shall not exceed those set forth in Exhibit "A".
Section 3. All of the collections of the special tax
shall be used. as provided for in the Act and Resolution No.
92-109.
Section 4. The above authorized special tax shall be
collected in the same manner as ordinary ad.valorem taxes are
collected and shall be subject to the samepenalties and the
same procedure and sale in cases of delinquency as provided
for ad valorem taxes; provided, however, that the special tax
may be collected by Community Facilities District No. 92-1 at
a different time or, alternatively, at the discretion of the
Council, CFD No. 92-1 may separately bill to and collect the
special tax from each owner of record of. taxable property
within CFD No. 92-1.
Section 5. The Mayor shall sign this Ordinance and
the City Clerk shall attest to such signature. The. City
Clerk is directed to cause the title and summary of the same,
together with the vote thereon, to be published within
fifteen (15) days after its passage at least once in the
Newhall Signal, a newspaper of general circulation published
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and circulated in the City of Santa Clarita, California (the
"City") and to post at the offices of the City a certified
copy of the full text of the adopted Ordinance along with the
names of the Council Members voting for and against the
Ordinance.
Section 6. This Ordinance relating to the levy of
the special tax takes effect and shall be in force from and
after thirty (30) days from the date of final passage. A
copy of this Ordinance shall be transmitted to the Clerk of
the Hoard of Supervisors of Los Angeles County, and the
Assessor and the Treasurer -Tax Collector of Los Angeles
County.
PASSED. and : ADOPTED by the City Council of the City of
Santa Clarita, California acting as the legislative body of
Community Facilities District No. 92-1 at a regular meeting
held on the _ day of , 1992.
Attest:
CITY CLERK
CITY OF SANTA CLARITA,.CALIFORNIA
MAYOR
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I HEREBY CERTIFY that the foregoing ordinance was duly
adopted by the City Council of the City of Santa Clarita,
California, at a regular meeting thereof, held on the
day of , 1992, by the following vote of the Counci'-i:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
CITY CLERK
(SEAL)
I, DONNA GRINDEY, City Clerk of the City of Santa
Clarita, California, DO HEREBY CERTIFY that the above and
foregoing is a full, true and correct copy of Ordinance No.
CFD 92-1-1, and that the same has not been amended or
repealed.
DATED: , 1992.
(SEAL)
9/146/014040-0001/055
1
City Clerk of the City o
Santa-Clarita, California
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and circulated in the City of Santa Clarita, California (the
"City") and to post at the offices of the City a certified
copy of the full text of the adopted Ordinance along with the
names of the Council Members voting for and against the
Ordinance.
Section 6. This Ordinance relating to the levy of
the special tax takes effect and shall be in force from and
after thirty (30) days from the date of final passage. A
copy of this Ordinance shall be transmitted to the Clerk of
the Board of Supervisors of Los Angeles County, and the
Assessor - and the Treasurer -Tax Collector of Los Angeles
County.
PASSED- and ADOPTED by the City Council of the City of
Santa Clarita, California acting as the legislative body of
Community Facilities District No. 92-1 at a regular meeting
held on the _ day of , 1992.
Attest:
CITY CLERK
CITY OF SANTA CLARITA, CALIFORNIA
MAYOR
-5-
I HEREBY CERTIFY that the foregoing ordinance was duly
adopted by the City Council of the City of Santa Clarita,
California, at a regular meeting thereof, held on the
day of , 1992, by the following vote of the Council:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
CITY CLERK
(SEAL)
i, DONNA GRINDEY, City Clerk of the City of Santa
Clarita, California, DO•HEREBY. CERTIFY that .the above and
foregoing is a full, true and correct copy of Ordinance No.
CFD 92-1-1, and that the same. has not been amended or
repealed.
DATED:
(SEAL)
9/146/014040-0001/055
1992,
City Clerk of the City of
Santa Clarita, California
' � l
RESOLUTION NO. 92-141
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA,' CALIFORNIA,
APPROVING THE FORMS OF JOINT FINANCING
AND ACQUISITION -AGREEMENTS AND AUTHORIZ-
ING THEIR EXECUTION TOGETHER WITH OTHER
RELATED DOCUMENTATION IN CONNECTION WITH
COMMUNITY FACILITIES DISTRICT.NO. 92-1 OF
THE CITY OF SANTA CLARITA (VALENCIA TOWN
CENTER)
WHEREAS, the City Council.of the City of Santa Clarita,
California (the "Council"), by Resolution No. 92-109 hereto-
fore adopted by the Council on June 9, 1992, declared its
intention to form Community Facilities District No. 92-1 of
the City of.Santa Clarita (Valencia Town Center) ("Community
Facilities District No.. 92-1" or "CFD No. 92-111) pursuant to
the Mello -Roos Community Facilities Act of 1982, as amended
(the "Act"); and
WHEREAS, since several of the facilities.to be financed
by the CFD No. 92 -1 -will, upon their completion, be owned by
the State of California (the ."State") and the County of Los
Angeles (the "County") and the Act requires that, in such
cases, an agreement be entered into with suchtpublic entities
taking title to the facilities, it is necessary to authorize
the execution of the Cooperative Financing Agreement, dated
as of July 1, 1992 (the "Cooperative Financing Agreement"),
among CFD No. 92-1, the County and The Newhall Land and
Farming Company ("Newhall"), the First Amendment to Highway
Improvement Agreement (the "First Amendment to Highway
Improvement Agreement") by and among the State,the Valencia
Company and CFD No. 92-1 and an. Agreement For Acquisition,
dated as of July 1, 1992 (the "Agreement for Acquisition")
between CFD No. 92-1 and Newhall and certain other docu-
mentation in connection therewith;
. NOW, THEREFORE, .the City Council of the City of Santa
Clarita, California does hereby resolve, determine, and order
as follows:
Section 1: The.foregoing recitals are true and .correct
and the Council so finds and determines..
Section 2. The Cooperative Financing Agreement is
hereby approved and the Mayor and City Clerk are hereby
authorized and directed to execute, attest and seal the same
on behalf of CFD No. 92-1, in substantially the form now
before this Council, but with such changes, modifications,
additions or. deletions therein- as shall to them or bond
counsel seem necessary, desirable or appropriate, their
execution thereof to constitute conclusive evidence of their
approval of any and all changes, modifications, additions or
deletions therein from the form •and content of the
Cooperative Financing Agreement now before this Council, and
that, from and after the.execution, attestation, sealing and
delivery of the same, the Mayor and City Clerk are hereby
authorized, empowered and directed to do all such acts and
things and to execute all such documents as may be necessary
-2-
to carry out and comply with the provisions of the
Cooperative Financing Agreement as executed.
Section 3. The First Amendment to Highway Improvement
Agreement -is hereby approved and the Mayor and City Clerk are
hereby authorized and directed to execute, attest and seal
the same on behalf of CFD No. 92-1, in substantially the form
now before this Council, but with such changes, modifi-
cations, additions. or deletions therein as shall to them or
bond counsel seem necessary, desirable or appropriate, their
execution thereof to constitute conclusive evidence of their
approval of any and all changes, modifications, additions or
deletions therein from the form and content of the First
Amendment to Highway Improvement Agreement now before this
Council, and that, from and after the execution, attestation,
sealing- and delivery of the same, the Mayor and City Clerk
are hereby authorized, empowered and directed to do all such
acts and things and to execute all such documents as.may be
necessary to carry out and comply with the provisions of the
First Amendment to Highway Improvement Agreement as executed.
Section 4. The Agreement For Acquisition is hereby
approved and the Mayor and City Clerk are hereby authorized
and directed to execute, attest and seal the same on behalf
of the City, in substantially the form now before this
Council, but with such changes, modifications, additions or
deletions therein as shall to them or bond counsel seem
necessary, desirable or appropriate, their execution thereof
-3-
to constitute conclusive evidence of their approval of any
and all changes, modifications, additions or deletions there-
in from the form and content of the Agreement For Acquisition
now before this Council, and that, from and after the
execution, attestation, sealing and delivery of the same, the
Mayor and City Clerk- are hereby authorized, empowered and
directed to do all such acts and things and to execute all
such documents as may be necessary to carry out and comply
with the provisions of the Agreement For Acquisition as
executed.
Section S. The Mayor, City Clerk, their designees or
other appropriate officers of the City are hereby authorized
to execute and deliver for and on behalf of the City any and
all additional agreements, certificates, documents, opinions
or other papers and perform all other acts as they may deem
necessary -or appropriate in order to implement and carry out
the intent and purposes of this resolution.
-4-
9
I
4 .
Is
PASSED and ADOPTED by the City Council of the City of
Santa Clarita at a regular meeting held on the day of
ATTEST:
CITY CLERK
1992.
CITY OF SANTA CLARITA,
CALIFORNIA
MAYOR
-5-
0
N
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the City Council of theCityof Santa Clarita,
California, at a regular meeting thereof, held on the
day of 1992, by the following vote of the Council:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
CITY CLERK
(SEAL)
I, DONNA GRINDEY, City Clerk of the City of Santa
Clarita, California, DO HEREBY CERTIFY that the above. and
foregoing is a full, true and correct copy of Resolution No.
92-_, and that the same has not been amended or repealed.
DATED:
(SEAL)
9/146/014040-0001/008
1992.
City Clerk of the G.ty of
Santa Clarita, California
e
RESOLUTION NO. 92- 142
RESOLUTION OF FORMATION OF THE CITY
COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA DETERMINING THE VALIDITY OF
PRIOR PROCEEDINGS AND ESTABLISHING
COMMUNITY FACILITIES DISTRICT NO. 92-1 OF
THE CITY OF SANTA CLARITA (VALENCIA TOWN
CENTER)
WHEREAS, the City Council (the "Council") of'the City of
Santa Clarita, California (the "City"), has heretofore
adopted Resolution No. 92-109 stating its intention to form
Community Facilities District No. 92-1 of the City of Santa
Clarita (Valencia. Town Center) ("Community Facilities
District No. 92-1" or "CFD No. 92-1") pursuant to the Mello
Roos Community Facilities Act of 1982, as amended, (the
"Act"); and
WHEREAS, a copy of Resolution No. 92-109, incorporating
a description of the proposed boundaries of Community
Facilities District No. 92-1 and setting forth the facilities
to be provided, the cost of providing such facilities and the
rate and method of apportionment and manner of collection of
the special tax to be levied within Community Facilities
District No. 92-1 to pay for the facilities and other costs,
including payment of the principal and interest on bonds
proposed to be authorized within Community Facilities
District No. 92-1 is on file with the City Clerk and is
incorporated herein by reference;. and
WHEREAS, Resolution No. 92-109 set July 14, 1992 asthe
date of the public hearing on the formation of CFD 92-1; and
-1-
A
WHEREAS, on July 14, 1992, this Council held'a noticed
public hearing as required by law relative to the proposed
formation of Community Facilities District No. 92-1; and
WHEREAS, at said -hearing all persons not exempt from the
special tax desiring to be heard on all matters pertaining to
the formation of Community Facilities District No. 92-1 were
heard and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to the
Council on said matters before it, and this Council at the
conclusion of said hearing is fully advised in the premises;
and
NOW, THEREFORE, the City Council of the City of Santa-
Clarita, California does hereby resolve, determine and order
as follows:
Section 1. Pursuant to Section 53325.1(b) of the
Government Code, the Council finds and determines -that the
proceedings prior hereto were valid and in conformity with
the requirements of the Act including, but not by way of
limitation, the following:
A. Filing of a petition by the property owner
requesting institution of proceedings to establish CFD No.
92-1;
H. Adoption of. a resolution of intention to establish
CFD No. 92-1;
C. Adoption of a resolution of intention to incur
bonded indebtedness in the amount of not -to -exceed
$20,000,000;
-2-
D. Publication and mailing of notice of public hearing
on the establishment of Community Facilities District No.
92-1 and of the proposed debt issue;
E. Filing of the Report on the proposed public
facilities to be financed by CFD No. 92-1 (the "Report"), as
ordered by the Council; and
F. A public hearing on the establishment of the
Community Facilities District 92-1, the proposed public
facilities, and the incurring of the proposed debt at which
time the Council considered the Report, took public comments
on the Report, all interested persons or taxpayers not exempt
from the special tax were permitted to protest orally or in
writing against the establishment of CFD No. 92-1 or the
furnishing of specified types of public facilities or were
permitted to file written protests to the regularity or
sufficiency of the proceedings, and any person interested,
including persons owningpropertywithin CFD No. 92-1, were
permitted to appear and present any mattersmaterial to the
questions set forth in the resolutions of intention.
Section 2. A community facilities district to be desig-
nated "Community Facilities District No. 92-1 of the City of
Santa Clarita (Valencia Town Center)" is hereby established
pursuant to the Act.
Section 3. The description and map of the boundaries of
CFD No. 92-1 on file in the. City. Clerk's office and as
described in said Resolution No. 92-109 and hereby
incorporated herein by reference, shall be the boundaries of
-3-
Community Facilities District No. 92-1. The map of the
proposed boundaries .of CFD 92-1 has been recorded in the
Office of the. County Recorder of Los Angeles County,
California in Book 174 Page ' 99 of the Book of Maps of
Assessments and Community Facilities Districts.
Section 4. The type of public facilities ("Facilities")
proposed to be provided within CFD No. 92-1 and funded with
the special tax include certain real and other tangible prop-
erty with an estimated useful life of five years or longer,
including sewer, street, fire protection, bridge, paseo and
drainage improvements and other governmental facilities which
the City and other public entities are authorized by law to
construct, own or operate, within or without CFD No. 92-1,
which are necessary to meet increased demands placed upon the
City and other public entities as a result of development or
rehabilitation occurring within CFD No. 92-1. The Facilities
are more fully described in Exhibit "B" attached hereto and
by this reference hereby incorporated herein.
Section S. Except where funds are otherwise available,
it is the intention of the Council to levy annually in
accordance with procedures contained in the Act, a special
tax. sufficient to pay for the costs of financing all such
Facilities, including the principal of and interest on the
bonds proposed to be issued to finance such Facilities, and
other periodic costs and all other costs of the tax levy -and
bond issue. The rate and method of. apportionment of the
special tax and manner of collection is described in detail
-4-
in Exhibit "A" attached hereto and hereby incorporated herein
by this reference. The special tax is based upon the cost of
making the Facilities available to each parcel in the CFD No.
92-1 area, the demand that each parcel will place on the
Facilities and the benefit received by each parcel from the
Facilities.
Section 6. Upon recordation of a notice of special
tax lien pursuant to Section 3114.5 of the Streets and
Highways Code, a continuing lien to secure each levy of the
special. tax shall attach to all nonexempt real property in
CFD No. 92-1 and this lien shall continue in force.and effect
until the special tax obligation is prepaid and permanently
satisfied and the lien cancelled in accordance with law or
until collection of the tax by CFD No. 92 -1. -
Section 7. in the event that a portion of the property
within Community Facilities District No. 92-1 shall become
for any reason exempt, wholly or partially, from the levy of
the special tax specified in Exhibit "A", the Council shall,
on behalf of.Community Facilities District No. 92-1, increase
the levy to the extent necessary upon the remaining property
within Community Facilities District No. 92-1 which is not
delinquent or exempt in order to yield the required payments,
subject to the maximum tax set forth in Exhibit "A".
Section 8. The Council finds that the Facilities are
necessary.to meet.the increased demand put upon the City and
other public entities as a result of the development within
Community Facilities District No. 92-1.
-5-
Section'9. The Council finds that there is not an ad
valorem property tax currently being levied on property
within proposed Community Facilities District No. 92-1 for
the exclusive purpose of paying principal of or interest on
bonds or other indebtedness incurred to finance construction
of capital facilities which provide the same services to the
territory of Community Facilities District No. 92-1 as are
proposed to be provided by the Facilities to be -financed and
constructed by Community Facilities District No. 92-1.
Section 10. An appropriation limit for CFD 92-1 is
hereby proposed in an amount equal to all the proceeds of the
special tax collected annually and as defined by Article
XIIIB of the California Constitution, as adjusted for changes
in the cost of living and changes in population.
Section 11. Written protests have not been filed by
fifty -percent (50%) or more of the registered voters or prop-
erty owners of one-half (1/2) or more of the area of land
within proposed Community Facilities District No. 92-1.
Section 12. The proposed special tax to be levied in
Community Facilities District No. 92-1 to pay for all the
proposed services. and Facilities has not been precluded by
majority protest of the registered voters residing within the
territory of Community Facilities District No. 92-1 or the
owners of one-half (1/2)or more of the area of land within
Community Facilities District No. 92-1 pursuant to Government
Code Section 53324.
'.7'=
Section 13. The Report is ordered to be kept on file
with the minutes of these proceedings and open for public
inspection.
Section 14. -The Finance Director of the City of Santa
Clarita, whose office is located at 23920 Valencia Boulevard,
Santa Clarita, California 91355, telephone (805) 255-4925, is
hereby designated to be responsible for annually preparing a
current roll of special tax levy obligations by assessor's
parcel number and for estimating future special tax levies
pursuant to Section 53340.1 of the Government Code.
Section 15. The City Clerk is directed to certify and
attest to this resolution and to take any and all necessary -
acts to call, hold, canvass and certify the election relative
to incurring bonded -indebtedness and the levy of the special
tax.
PASSED and ADOPTED by the City Council of the City of
Santa Clarita, California at a regular meeting held on this
date of , 1992.
ATTEST:
CITY CLERK
CITY OF SANTA CLARITA,_CALIFORNIA
Mayor
-7-
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the City Council of the City of Santa Clarita,
California, at a regular meeting thereof, held on the
day of , 1992, by the following vote of the Counciil -
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
W
CITY CLERK
(SEAL)
I, DONNA GRINDEY, City Clerk of the City of Santa
Clarita, .California, DO HEREBY CERTIFY that the above and
foregoing is a full, true and:correct.copy of Resolution No.
, and that the same .has not been amended or
repealed.
DATED: r-1992.
City Clerk of the City of
Santa Clarita, California
(SEAL)
9/146/014040-0001/054
-8- -
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 92-1
OF THE CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
A Special Tax (the "Special Tax") shall be levied on and collected in Community Facilities
District No. 92-1 of the'City of Santa Clarita (Valencia Town Center) ("CFD No. 92-1") each
Fiscal Year, in an amount determined by the City Council of the City of Santa Clarita, acting
as the legislative body of CFD No. 92-1, through the application of the appropriate Special Tax
for "Taxable Property," as described below. All of the property in CFD No. 92-1, 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 terms hereinafter set forth have the following meanings:
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" shall mean any ordinary and necessary expenses of CFD
No. 92-1 and the City to carry out its duties as the legislative body of CFD No. 92-1.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
of Los Angeles designating parcels by Assessor's Parcel number.
"City" means the City of Santa Clarita, California.
"Council" means the City Council of the City of Santa Clarita, acting as the legislative
body of CFD No. 92-1.
"FIscal Year" means the period starting each July 1 and ending on the following June
30.
"Maximum Special Tax" means the maximum Special T;,x,determined in accordance
with Section C, that can be levied by the Council in any Fiscal Year for Taxable
Property.
CFD No. 92-1
Page 2
"Prepayment Fees" means the Administrative Expenses and fees of CFD No. 92-1, the
fees of any fiscal agent and any consultant retained by CFD No. 92-1 in connection with
the prepayment calculation and redemption of bonds.
"Reserve Fund Credit" means the pro rata reduction in the reserve fund balance for the
bonds as a result of the redemption of a portion of the principal amount of bonds from
the proceeds of a prepayment made pursuant to Section H below.
"Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD
No. 92-1 to pay: (1) debt service on all bonds or other periodic costs incidental to the
bonds or other indebtedness, including, without limitation, any credit enhancement or
liquidity facilities fees, (2) Administrative Expenses, (3) costs associated with the release
of funds from an escrow account if any, and (4) any amounts required, to the extent
permitted in the formula for the Maximum Special Tax, to replenish any reserve funds.
"Taxable Property" means all Assessor's Parcels within the boundaries of. CFD No. 92-
1 which are not exempt from the Special Tax pursuant to law or Section E below.
B. CLASSIFICATION OF PROPERTY
For each Fiscal Year, all Assessor's Parcels within CFD No. 92-1 shall be classified as
Taxable Property and shall be subject to tax in accordance with the rate and method of
apportionment determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
Taxable Property
The Maximum Special. Tax for each Assessor's Parcel of Taxable Property shall
be the amount derived by multiplying the acreage for such Assessor's Parcel or
Parcels, as shown on the boundary map for CFD No. 92-1, by the applicable rate
in Table I below.
06/22/1992
CFD No. 92-1
Page 3
TABLE I
Assessor's
Parcel
Number
Parcel Map
22206
Lot#
Fiscal Year 1992-93
Step 1
Maximum Special Tax
Fiscal Year 1992-93
Step 2
Maximum Special Tax
2861-059-024
4
$39,831 per acre
N/A
2861-059-004
5
$39,831 per acre
N/A
2861-058-004
6
$39,831 per acre
N/A
2861-059-008
11
$39,831 per acre
N/A
2861-058-008
12
$39,831 per acre
N/A
2861=058-009
12
$39,831 per acre
N/A
2861-058-024
13
$39,831 per acre
$326,927 per acre
2861-058-025
14
$39,831 per acre
N/A
2861-058-019
14
$39,831 per acre
N/A
2861-058-011
14
$39,831 per acre
N/A
2861-059-021
14
$39,831 per acre
N/A
2861-059-028
14
$39,831 per acre
N/A
On each July 1, commencing with July 1, 1993, the Special Tax rates shown in the table
above shall be increased to 102 % of the amount in effect in the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 1992-93 and for each following Fiscal Year, the Council
shall determine the amount of money to be collected from Taxable Property in CFD No.
92-1 in that Fiscal Year (the Special Tait Requirement).
The Council shall levy the Special Tax as follows until the amount of the levy equals the
Special Tax Requirement:
First: The Special Tax -shall be levied proportionately on each Assessor's Parcel of
Taxable Property up to 100 % of the applicable Step 1 Maximum Special Tax determined
by Section CA above.
Secon : Notwithstanding the above, if any Assessor's Parcel other than 2861-058-024
or its successor(s) is delinquent in the payment of Special Taxes, then the levy of the
Special Tax on Assessor's Parcel 2861-058-024 or its successor(s) shall be increased
from the amount levied pursuant to the first step up to 100% of the applicable Step 2
06122/1992
CFD No. 92-1
Page 4
Maximum Special Tax determined by reference to Section C.1 above, until the
incremental amount levied on Assessor's Parcel 2861-058-024 or its successor(s) is equal
to amount of delinquent Special Taxes. Proceeds from the collection of such delinquent
Special Taxes, exclusive of any penalties, shall first be credited to Assessor's Parcel
2861-058-024 in the Fiscal Year following the Fiscal Year in which such delinquent
Special Taxes are collected until the credit is equal to the amount levied on 2861-058-024
pursuant to this paragraph.
E. EXEMPTIONS
The Council shall not levy a Special Tax on properties owned by the State of California,
Federal or other local governments or public agencies except as otherwise provided in
Sections 53317.3 and 53317.5 of the Act.
F. APPEALS
Any landowner or resident who feels that the amount of the Special Tax is in error may
file a notice with CFD No. 92-1 appealing the levy of the Special Tax. A representative
of CFD No. 92-1 will then review the appeal and, if necessary, meet with the applicant.
If the findings of the CFD No. 92-1 representative verify that the amount of the Special
Tax should be modified or changed, then, as appropriate, the Special Tax levy shall be
corrected.
G. MANNER. OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary
ad valorem property taxes, of alternatively, at the discretion of the Council, CFD No.
92-1 may sdparately bill to and collect the Special Tax from each owner(s) or record of
Taxable Property.
H. . PREPAYMENT FORMULA
Prepayment in Whole
The Special Tax applicable to any Assessor's Parcel in CFD No. 92-1 may be prepaid
in whole by delivering to the Director of Finance not less than 75 days prior to an
interest payment date for the bonds or other indebtedness issued by CFD No. 92-1, an
amount in cash equal to all of the following:
(i) all delinquent Special Taxes and penalties applicable to the subject parcel;
(ii) the principal amount of the bonds or other indebtedness of CFD No. 92-1 to be
redeemed as a result of such prepayment which shall be the product obtained by
multiplying the principal amount of bonds or other indebtedness of CFD No. 92-1 then
outstanding times a fraction, the numerator of which is equal to the acreage of the
06/2211992
CFD No. 92-1
Page 5
Assessor's Parcel and the denominator of which is equal to the total acreage -for all
Assessor's Parcels of Taxable Property which have not prepaid in whole the Special Tax;
(iii) interest on such principal amount from the previous interest payment date to the
aforesaid interest payment date at the rate borne by the bonds or other indebtedness of
CFD No. 92-1;
(iv) the premium required to be paid, if any, in connection with the redemption of the
bonds or other indebtedness of CFD No. 92-1 as a result of such prepayment;
(v) the applicable.Prepayment Fees as determined by the Council,.less;
(vi) the Reserve Fund Credit, and less;
(vii) the amount of any Special Tax applicable to the subject Assessor's Parcel that has
been posted to the current tax roll and actually paid but that has not been then applied
to the payment of. debt seFvice on the bonds or other indebtedness of CFD No. 92-1.
In the event a property owner wishes to prepay the Special Tax in whole for Assessor's
Parcel 2861-058-024 then the Special Tax for all other Assessor's Parcels must also be
prepaid in whole. The Director of Finance shall effect the calculation of the prepayment
amount pursuant to the terms above. The resulting prepayment amount shall be final and
binding.
Prepayment In Part
The Special Tax may be prepaid in part only if a proportional partial prepayment is made
for all Assessor's Parcels in CFD No. 92-1 which are subject to the Special Tax. The
partial prepayment for each Assessor's Parcel shall be made by delivering to the Director
of Finance not less than 75 days prior to an interest payment date for the bonds or other
indebtedness issued by CFD No. 92-1 an amount in cash equal to all of the following:
(i) all delinquent Special Taxes and penalties applicable to the subject parcel;
(ii) the principal amount of the bonds or other indebtedness of CFD No. 92-1 to be
redeemed as a result of such partial prepayment which shall be the product obtained by
multiplying the acreage of the Assessor's Parcel times a fraction, the numerator for
which is equal to the percentage of the Special Tax to be prepaid times the principal
amount of bonds or other indebtedness of CFD No. 92-1 then outstanding and the
denominator of which is equal to the total acreage for all Assessor's Parcels of Taxable
Property which have not prepaid the Special Tax in whole;
(iii) interest on such principal amount from the previous interest payment date to the
aforesaid interest payment date at the rate borne by the bonds or other indebtedness of
CFD No. 92-1;
0612211992
CFD No. 92-1
Page 6
(iv) the premium required to be paid; if any, in connection with the redemption of the
bonds or other indebtedness of CFD No. 92-1 as a result of such prepayment;
(v) the applicable Prepayment Fees as determined by the Council, less;
(vi) the Reserve Fund Credit, and less;
(vii) the amount of any Special Tax applicable to the subject Assessor's Parcel that has
been posted to the current tax roll and actually paid but that has not been then applied
to the payment of debt service on the bonds or other indebtedness of CFD No. 92-1.
The Director of Finance shall effect the calculation of the prepayment amount pursuant
to the terms above. The resulting prepayment amount shall be final and binding.
j:VcGenul�ate—cla.cryVmello\cH911 2.'ma(cb)
06/21/1991
ZMIBIT B
CITY OF SANTA CLARITA
VALENCIA TOWN CENTER
COMMUNITY FACILITIES DISTRICT ..
Summary of Public Improvements
Description
Storm Drain
Extension of existing drain,
Amount
around malls
Perimeter.
$ 550,0t
Street Improvements
Widening of McBean Parkway, Valencia
Boulevard, Magic Mountain Parkway4,480,000
lanes around mail perimeter; constrctions of
Town Center Drive; improve intersections
with
tum lanes around mall and at McBean
Parkway/Newhall improvements Mntain Parkway ;ben McBean
Parkway and 1-5; includes
sidewalks, bus tum -outs
Signals
etc., as required.
Design and installation of improved signals
and signal Phasing around mail
11580,000
along major
thoroughfares.
Fre Station
Improve site (1 12 acres) along Magic
Mountain Parkway and provide funds for
650,000
facilities.
Sewer
Complete modifications to existing connections.
105,000
Engineering and15.
Provide. Support pport services for soils, geology,
surveying, etc
1,243,000
Bridges
Complete full im Provernents to four lanes
at
McBean Parkway/Santa Clara River and
5,340,000
Newhall Ranch Road/Bouquet Creek
Paseo System
Compes Over Valencia lete
Boulevard, MaicMountain Parkway and
Crsekside Drive; complete Paseo Improvements
around mall's perimeter and extend to
existing
Paseo system south of mall.
Total
$_16A7.1 00
SRM/pa
529/92
COMMUNITY FACILITIES DISTRICT REPORT
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
Prepared for
City of Santa Cla_rita
23920 Valencia Blvd, Ste. 300
Santa Clarita, California 91355
Prepared by
DAVID TAUSSIG AND ASSOCIATES,. INC.
1301 Dove St., Ste. 600
Newport Beach, California 92660
July 14, 1992
TABLE OF CONTENTS
I. INTRODUCTION ....................................... 1
H. PROJECT DESCRIPTION AND FEATURES ..................... 1
III. DESCRIPTION AND ESTIMATED COST OF PROPOSED ........... 2
A. Description of Public Improvements ........................ 2
B. Estimated Cost of Proposed Public Improvements ................. 4
C. Incidental Bond Issuance Expenses to be Included in the Proposed ..... 4
D. Incidental Expenses to be Included in the Annual Levy of Special Taxes .. 5
IV. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX .. 5
A. Explanation for Special Tax Apportionment 5
B. Projected Development and Bond Sales ...................... 6
C. Projected and Maximum Special Tax Rates .................... 6
D. Accuracy of Information .......... .. 7
V. BOUNDARIES OF COXIMUNIITY FACILITIES DISTRICT ........... 7
VI. GENERAL TERMS AND CONDITIONS ........................ 7
A. Substitution Facilities ................................. 7
B. Appeals ......................................... 8
EXHIBITS
A Rate and Method of Apportionment of Special Tax
B Projected Special Tax'Rates
C Maximum Special Tax Rates for Fiscal Year 1992-93
D Estimated Bond and Other CFD -Related Costs
E Boundary Map
I. INTRODUCTION
WHEREAS, the City Council of the City of Santa Clarita (hereinafter referred to as the
"Council") did, pursuant to the provision of the "Mello -Roos Community Facilities Act
of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the
State of California (hereinafter referred to as the "Act"), and specifically Section 53321.5
thereof, expressly order the filing of a written "Report" with the legislative body, of the
proposed community facilities district. This community facilities district shall hereinafter
be referred to as:
COMMUNITY FACILITIES DISTRICT NO. 92-1 OF THE CITY OF SANTA
CLARITA,
"COMMUNITY FACILITIES DISTRICT NO. 92-1," "CFD NO. 92-1," or the "CFD";
and,
WHEREAS, the Resolution of Intention to -Establish Community Facilities District No.
92-1 and to Authorize the Levy of a Special Tax (hereinafter referred to as the
"Resolution of Intention") ordering the. Report did direct that said Report generally
contain the following:
1. A description of the public facilities required to adequately meet the needs of the
CFD;
2. An estimate of the cost of providing the public facilities and for the payment of
incidental expenses;
3. Any other material that is related to the proposed public facilities or CFD No. 92-1,
including a proposed appropriations limit (for particulars, reference is made to the
Resolution of Intention ordering the Report, as previously approved and adopted).
NOW, THEREFORE, I, Kenneth Pulskamp, the authorized representative of the City
of Santa Clarita, the appointed responsible officer directed to prepare the Report or cause
the Report to be prepared pursuant to the provisions of the Act, do hereby submit this
Report.
II. PROTECT DESCRIPTION AND FEATURE
CFD No. 92-1 includes a portion of the Valencia Town Center (the "Project"), a regional
mall located on approximately 80 acres in the City of Santa Clarita. The Valencia Town
Center is expected to be constructed in two phases. The portion of Phase I located in
CFD No. 92-1 will consist of approximately 111 stores totaling 281,000 square feet of
gross leasable area. Phase II is expected to add an additional three anchor stores and a
total of 725,000 square feet.
III. DESCRIPTION AND ESTIMATED COST OF PROPOSED
FACILITIES
A. Description of Public Improvements
A community facilities district may provide for the purchase, construction, expansion
or rehabilitation of any real or tangible property, including public facilities and
infrastructure improvements, with an estimated useful life of five (5) years or longer,
which is necessary to meet increased demands placed upon local agencies as a result
of development or rehabilitation occurring within the community facilities district.
The facilities described in this Report are all facilities which the legislative body
creating this CFD and other affected public entities are authorized to own, construct,
or finance, and which are required to adequately meet the needs of the CFD. The
Special Taxes' required to pay for the construction or financing of these facilities
will be apportioned as described in the Rate and Method of Apportionment of the
Special Tax attached hereto as Exhibit A.
Storm Drain Improvements
Storm drain improvements which may be financed by CFD No. 92-1 include
extensions of existing storm drain facilities from the intersection of Town Center
Drive and Valencia Boulevard westerly to McBean Parkway, then northerly
approximately 700 feet along McBean Parkway and from the intersection of Magic
Mountain Parkway and McBean Parkway easterly to Town Center Drive, then
southerly approximately 500 feet along Town Center Drive.
Road Improvements
Road improvements which may be financed by CFD No. 92-1 include widening
of McBean Parkway, Valencia Boulevard, Magic Mountain Parkway; construction
of Town Center Drive; improvements to intersections at access points to the
Project and other major intersections around the Project; and improvements to
Magic Mountain Parkway west of McBean Parkway.
McBean Parkway will be widened to six lanes between Valencia Boulevard and'
Magic Mountain Parkway. Valencia Boulevard will be widened to six lanes
between McBean Parkway and Magic Mountain Parkway. Magic Mountain
Parkway will be widened to six lanes from McBean Parkway to Town Center
Drive. Town Center Drive will be extended as a four lane road from the existing
terminus to Magic Mountain Parkway.
1 Please note that sit capitalized terms used herein, unless otherwise indicated, shall have the meanings defined
in the Rate and Method of Apportionment attached as Exhibit A.
City of Santa Clarita 92-1 2 0613011992
Intersection improvements include widening and addition of both left and right turn
lanes. Improvements will be made to the following intersections:
Valencia Boulevard and McBean Parkway, Valencia Boulevard and Magic
Mountain Parkway, the Project access point along Valencia Boulevard,
McBean Parkway and Newhall Ranch Road, McBean Parkway and Magic
Mountain Parkway, McBean Parkway and the southerly Project access point,
McBean Parkway and the northerly Project access point, Town Center Drive
and Valencia Boulevard, Town Center Drive and the north and south Project
access points, and Magic Mountain Parkway and Newhall Avenue.
All road improvements will include landscaping, sidewalks, curbs and gutters,
street lights, medians, striping, and bus tum -outs.
Traffic Signals
In conjunction with the proposed road improvements CFD No. 92-1 may finance
the design and installation of improved signals and signal phasing at intersections
of major thoroughfares around the Project. Improved signals will be installed at
the Project access point along Valencia Boulevard; McBean Parkway and the
southerly Project access point; Valencia Boulevard and Town Center Drive; Magic
Mountain Parkway and Town Center Drive; Magic Mountain Parkway and
Newhall Avenue; and McBean Parkway and the northerly Project access point.
Traffic signal coordination, including installation of two master computers, will be
implemented for signals along McBean Parkway, Valencia Boulevard, Bouquet
Canyon Road and Magic Mountain Parkway. '
Fire Station Facilities
Fire station improvements which may be financed by . CFD No. 92-1 include
certain fire protection facilities and acquisition of an improved, graded fine station
site of approximately 1.5 acres located on Magic Mountain Parkway.
Sewer Facilities
Sewer facilities which may be financed by CFD No. 92-1 include modifications to
existing public sewer connections located around the Project.
Soils. Geology and Surveying_
CFD No. 92-1 may also financing certain soils, geologic and survey work related
to the planning, design, construction or acquisition of the public improvements
described herein.
City of Santa Clarita 92-1 3 0613011992
Bridge Improvements
Bridge improvements which may be financed by CFD No. 92-1 include full bridge
improvements to four lanes for the McBean Parkway Bridge/Santa Clara River and
the Newhall Ranch Road/Bouquet Creek Bridge.
Paseo and Paseo Bridge Improvements
Paseo improvements which may be financed by CFD No. 92-1 include the
completion of bridges over Valencia Boulevard, Magic Mountain Parkway and
Creekside Drive; complete paseo improvements around the perimeter of the
Project; an extension to existing paseo improvements south of the Project; and new
paseos north of the Project to Newhall Ranch Road.
B. Estimated Cost of Proposed Public Improvements
The facilities and the estimated costs herein are subject to review/confirmation and
a final appraisal, as appropriate.
Description
Amount
Storm Drain Improvements
$1,600,000
Street Improvements
3,480,000
Traffic Signals
1,580,000
Fire Station
650,000
Sewer Facilities
105,000
Engineering and Miscellaneous
1,243,000
Bridge Improvements
5,340,000
Paseo System Improvements
2,771,000
Total
$16,769,000
C. Incidental Bond Issuance Expenses to be Included in the Proposed
Bonded Indebtedness
Pursuant to Section 53345.3 of the Act, the amount of proposed bonded indebtedness
may include all costs and estimated costs incidental to, or connected with, the
accomplishment of the purpose for which the proposed debt is to be incurred,
including, but not limited to, the costs of legal, fiscal, and financial consultant fees;
bond and other reserve funds; discount fees; interest on any bonds of the district due
and payable prior to the expiration of one year from the date of completion of the
City of Santa Clarka 92-1 4 06/3011992
facilities, not to exceed two years; election costs; and all costs of issuance of the
bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit
ratings, bond insurance premiums, fees for letters of credit, and other credit
enhancement costs, and printing costs. It is anticipated that said costs expressed as
a percentage of the face amount of the bonds will not exceed 17.00 percent.
D. Incidental Expenses to be • Included in the Annual Levy of Special
Taxes
Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be
used to pay, in whole or part, the cost of providing public facilities, services and
incidental expenses. As defined by the Act, incidental expenses include, but are not
limited to, the cost of planning and designing public facilities to be financed,
including the cost of environmental evaluations of those facilities; the costs associated
with the creation of the district, issuance of bonds, determination of the amount of
taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to
carry out the authorized purposes of the district; and, any other expenses incidental
to the construction, completion, and inspection of the authorized work. While the
actual cost of administering CFD No.92,1 may vary, it is anticipated that the amount
of special taxes which could be collected will be sufficient to fund at least $40,000
in annual administrative expenses.
IV. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL
TAX
All of the property located within CFD No. 92-1, unless exempted by law'or by the Rate
and Method of Apportionment, shall be taxed for the purpose of providing necessary
facilities to serve CFD No. 92-1. Pursuant to Section 53325.3, of the Act, the tax
imposed "is a Special Tax and not a special assessment, and there is no requirement that
the tax be apportioned on the basis of benefit to any property. The Special Tax may
be based on benefit received by parcels of real property, the cost of making facilities or
authorized services available to each parcel or other reasonable basis as determined by
the legislative body," although the Special Tax may not be apportioned on an ad valorem
basis pursuant to Article XIIIA of the California constitution.
As shown in Exhibit A, the adopted Rate and Method of Apportionment provides
information sufficient to allow each property owner within CFD No. 92-1 to estimate the
maximum annual Special Tax he or she will be required to pay. Sections A through D,
below, provide additional information on the Rate and Method of Apportionment of the
Special Tax.
A. Explanation for Special Tax Apportionment
When a community facilities district is formed, a Special Tax may be levied on each
parcel of taxable property within the CFD to pay for the construction or acquisition
City of Santa Clarita 92-1 5 0613011992
of public facilities; to pay for authorized services or to repay bonded indebtedness
or other related expenses incurred by the CFD. This Special Tax must be
apportioned in a reasonable manner; however, the tax may not be allocated on an ad
valorem basis.
When more than one type of land:use is present within a community facilities
district, several criteria may be considered when apportioning the Special Tax.
Generally, criteria based on building square footage, lot size, density and/or land
use are selected, and categories based on such criteria are established to differentiate
between parcels of property. These categories are a direct result of the developer's
product mix, and are reflective of the proposed land use types within that community
facilities district. Specific Special Tax levels are assigned to each land use class,
with all parcels within a land use class paying the same Special Tax.
The Act does not require that Special Taxes be apportioned to individual parcels
based on benefit received. However, in order to insure fairness and equity, benefit
principles have been incorporated in establishing the Special Tax rates for CFD No.
92-1. Because of the singular nature of the proposed development for CFD No. 92-
1, the Special Taxes are apportioned uniformly to each Assessors Parcel of Taxable
Property based solely on acreage.
Based on the types of improvements that are proposed for this CFD and the factors
described above, the Special Taxes assigned to each parcel are. generally
proportionate to the relative benefits received by them, and, accordingly, the Special
Taxes in CFD No. 92-1 can be considered to be fair and reasonable.
B. Projected Development and Bond Sales
Based on each developer'' projections, the following table indicates the total building
square footage expected upon completion of each phase:
It is expected that only one series of bonds will be issued. Maximum authorized
bonded indebtedness for CFD No. 92-1 is $20,000,000.
C. Projected and Maximum Special Tax Rates
It is anticipated that Special Taxes will be levied commencing with Fiscal Year 1992-
93. Exhibit B lists the Special Tax rates projected to be levied in CFD No. 92-1 for
City of Santa Cla'ita 92-1 6 06130/1992
Gross Leasable
Phase
Building
Square Footage
I
281,000
II
725,000
It is expected that only one series of bonds will be issued. Maximum authorized
bonded indebtedness for CFD No. 92-1 is $20,000,000.
C. Projected and Maximum Special Tax Rates
It is anticipated that Special Taxes will be levied commencing with Fiscal Year 1992-
93. Exhibit B lists the Special Tax rates projected to be levied in CFD No. 92-1 for
City of Santa Cla'ita 92-1 6 06130/1992
Fiscal Years 1992-93 through 2011-12. The Maximum Special Tax rates for Fiscal
Year 1992-93 are set forth in Exhibit C. The Maximum Special Tax rates shall
increase by two percent each Fiscal Year thereafter.
Although the projected Special Tax rates are lower than the Maximum Special
Tax rates, the projected Special Tax rates in Exhibit B are only a theoretical
example of the Special Tax rates that may be levied given projected land uses
and phasing and assuming the bonds will be amortized over twenty years and
will have an average coupon rate of 8.76 percent. THERE IS NO
GUARANTEE THAT ACTUAL SPECIAL TAX RATES WILL BE LEVIED AT
OR BELOW THE PROJECTED LEVELS IN EXHIBIT B.
The Council will annually determine the actual amount of the Special Tax levy based
on the method described in Exhibit A: Exhibit A provides that the Special Tax shall
be levied on each Assessor's Parcel of .Taxable Property up to 100% of the
applicable Step 1 Special Tax rate. In the event of delinquent Special Faxes, the
levy of the Special Tax on Assessor's Parcel 2861-058-024, the site for Phase I of
the Project, shall be increased up to 100% of the applicable Step 2 Special Tax rate.
Subject to the Maximum Special Tax rates, the Council will levy a Special Tax to
the extent necessary, sufficient to meet the Special Tax Requirement.
D. Accuraa of Information
In order to establish the Maximum Special Tax rate for Taxable Property, as set
forth in the Rate and Method of Apportionment, David Taussig and Associates, Inc.
has relied on taxable acreage provided to David Taussig and Associates, Inc., by
others. David Taussig and Associates, Inc. has not independently verified such data
and disclaims responsibility for the impact of inaccurate data, if any, on the Rate and
Method of Apportionment for CFD No. 92-1, including the inability to meet the
fmancial obligations of the CFD.
V. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT
The boundaries of CFD No. 92-1 include all land on which the Special Taxes may be
levied. A map of the area included within CFD No. 92-1 is provided as Exhibit E.
VI. GENERAL TERMS AND CONDITIONS
A. Substitution Facilities
The description of the public facilities, as set forth herein, are general in their
nature. The final nature and location of improvements and facilities will be
determined upon the preparation of final plans and specifications. The final plans
may show substitutes, in lieu or modifications to the proposed work in order to
City of Santa Clarita 92-1 7 1 0613011992
accomplish the work of improvement, and any such substitution shall not be a change
or modification in the proceedings as long as the facilities provide a service
substantially similar to that as set forth in this Report.
B. Anneals
Any landowner or resident who feels that the amount of the Special Tax is in error
may file a notice with CFD No. 92-1 appealing the levy of the Special Tax. A
representative of CFD No. 92-1 will then review the appeal and, if necessary, meet
with the applicant. If the findings of the CFD No. 92-1 representative verify that
the amount of the Special Tax should be modified or changed, then, as appropriate
the Special Tax levy shall be corrected.
jA*nt�.cln.ay\melloX&c92-1.rWcb
City of Santa Clarita 92-1 8 0613011992
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES .DISTRICT NO. 92-1
OF THE CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
A Special Tax (the "Special Tax") shall be levied on and collected in Community Facilities
District No. 92-1 of the City of Santa Clarita (Valencia Town Center) ("CFD No. 92-1") each
Fiscal Year, in an amount determined by the City Council of the City of Santa Clarita, acting
as the legislative body of CFD No. 92-1, through the application of the appropriate Special Tax
for "Taxable Property," as described below. All of the property in CFD No. 92-1, 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.
The terms hereinafter set forth have the following meanings:
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" shall mean any ordinary and necessary expenses of CFD
No. 92-1 and the City to carry out its duties as the legislative body of CFD No. 92-1.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel. number.
"Assessor's Parcel Map" means an official map of the County Assessor of the County
of Los Angeles designating parcels by Assessor's Parcel number.
"City" means the City of Santa Clarita, California.
"Council" means the City Council of the City of Santa Clarita, acting as the legislative
body of CFD No. 92-1.
"Fiscal Year" means the period starting each July 1 and ending on the following June
30.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance
with Section C, that can be levied by the Council in any Fiscal Year for Taxable
Property.
City of Santa Clarita 92-1 A.1 0613011992
"Prepayment Fees" means the Administrative Expenses and fees of CFD No. 92-1, the
fees of any fiscal agent and any consultant retained by CFD No. 92-1 in connection with
the prepayment calculation and redemption of bonds.
"Reserve Fund Credit" means the pro rata reduction in the reserve fund balance for the
bonds as a result of the redemption of a portion of the principal amount of bonds from
the proceeds of a prepayment made pursuant to Section H below.
"Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD
No: 92-1 to pay: (1) debt service on all bonds or other periodic costs incidental to the
bonds or other indebtedness, including, without limitation, any credit enhancement or
liquidity facilities fees, (2) Administrative Expenses, (3) costs associated with the release
of funds from an escrow account if any, and (4) any amounts required, to.the extent
permittedin the formula for the Maximum Special Tax, to replenish any reserve funds.
"Taxable Property" means all Assessor's Parcels within the boundaries of CFD No. 92-
1 which are not exempt from the Special Tax pursuant to law or Section E below.
B. CLASSIFICATION OF PROPERTY
For each Fiscal Year, all Assessor's Parcels within CFD No. 92-1 shall be classified as
Taxable Property and shallbe subject to tax in accordance with the rate and method of
apportionment determined pursuant to Sections C and D below.
C.. MAXIMUM SPECIAL TAX RATE
1. Taxable Property
The Maximum Special Tax for each Assessor's Parcel of Taxable Property shall be
the amount derived by multiplying the acreage for such Assessor's Parcel or Parcels,
as shown on the boundary map for CFD No. 92-1; by the applicable rate in Table
I below.
City of Santa Clarita 92-1 A.2 0613011992
TABLE I
Assessor's
Parcel
Number
Parcel Map
22206
Loth
Fiscal Year 1992-93
Step 1
Maximum Special Tax
Fiscal Year 1992-93
Step 2
Maximum Special Tax
2861-059-024
4
S39,831 per acre
N/A
2861-059-004
5
539,831 per acre
N/A
2861-058-004
6
S39,831 per acre
NIA
2861-059-008
11
539;831 per acre
N/A
2861-058-008
12
S39,831 per acre
- N/A
2861-058-009
12
539,831 per acre
NIA
2861-058-024
13
539,831 per acre
$326,927 per acre
2861-058-025
14
S39,831 per acre
N/A
2861-058-019
14
S39,831 per acre
N/A
2861-058-011
14
539,831 per acre
N/A .
2861-059-021
14
$39,831 per acre
NIA
2861-059-028
14
539,831 per acre
N/A
On each July 1, commencing with July 1, 1993, the Special Tax rates shown in the table
above shall be increased to 102 % of the amount in effect in the previous- Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 1992-93 and for each following Fiscal Year, the Council
shall determine the amount of money to be collected from Taxable Property in CFD No.
92-1 in that Fiscal Year (the Special Tax Requirement).
The Council shall levy the Special Tax as follows until the amount of the levy equals the
Special Tax Requirement:
First: The Special Tax shall be levied proportionately on each Assessor's Parcel of
Taxable Property up to 100% of the applicable Step 1 Maximum Special Tax determined
by Section C.1 above.
Second: Notwithstanding the above, if any Assessor's Parcel other than 2861-058-024
or its successor(s) is delinquent in the payment of Special Taxes, then the levy of the
Special Tax on Assessor's Parcel 2861-058-024 or its successor(s) shall be increased
from the amount levied pursuant to the first step up to 100% of the applicable Step 2
Maximum Special Tax determined by reference to Section CA above, until the
incremental amount levied on Assessor's Parcel 2861-058-024 or its successor(s) is equal
City of Sana Clarita 92-1 A.3 0613011992
to amount of delinquent Special Taxes. Proceeds from the collection of such delinquent
Special Taxes, exclusive of any penalties, shall first be credited to Assessor's Parcel
2861-058-024 in the Fiscal Year following the Fiscal Year in which such delinquent
Special Taxes are collected until the credit is equal to the amount levied on 2861-058-024
pursuant to this paragraph.
E. EXEMPTIONS
The Council shall not levy a Special Tax on properties owned by the State of California,
Federal or other local governments or public agencies except as otherwise provided in
Sections 53317.3 and 53317.5 of the Act.
F. APPEALS
Any landowner or resident who feels that the amount of the. Special Tax is in error may
file a notice with CFD No. 92-1 appealing the levy of the Special Tax. A representative
of CFD No. 92-1 will then review the appeal and, if necessary, meet with the applicant.
If the findings of the CFD No. 92-1 representative verify that the amount of the Special
Tax should be modified or changed, then, as appropriate, the Special Tax levy shall be
corrected.
G. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary
ad valorem property taxes, or alternatively, at the discretion of the Council, CFD No.
92-1 may separately bill to and collect the Special Tax from each owner(s) or record of
Taxable Property.
H. PREPAYMENT FORMULA
Prepayment in Whole
The Special Tax applicable to any Assessor's Parcel in CFD No. 92-1 may be prepaid
in whole by delivering to the Director of Finance not less than 75 days prior to an
interest payment date for the bonds or other indebtedness issued by CFD No. 92-1, an
amount in cash equal to all of the following:
(i) all delinquent Special Taxes and penalties applicable to the subject parcel;
(ii) the principal amount of the bonds or other indebtedness of CFD No. 92-1 to be
redeemed as a result of such prepayment which shall be the product obtained by
multiplying the principal amount of bonds or other indebtedness of CFD No. 92-1 then
outstanding times a fraction, the numerator of which is equal to the acreage of the
Assessor's Parcel and the denominator of.which is equal to the total acreage for all
Assessor's Parcels of Taxable Property which have not prepaid in whole the Special Tax;
City of Santa Cra»ta 92-1 A.4 0613011992
(iii) interest on such principal amount from the previous interest payment date to the
aforesaid interest payment date at the rate borne by the bonds or other indebtedness of
CFD No. 92-1;
(iv) the premium required to be paid, if any, in connection with the redemption of the
bonds or other indebtedness of CFD No. 92-1 as a result of such prepayment;
(v) the applicable Prepayment Fees as determined by the Council, less;
(vi) the Reserve Fund Credit, and less;
(vii) the amount of any. Special Tax applicable to the subject Assessor's Parcel that has
been posted to the current tax roll and actually paid but that has not been then applied
to the payment of debt service on the bonds or other indebtedness of CFD No. 92-1.
In the event a property owner wishes to prepay the Special Tax in whole for Assessor's
Parcel 2861-058-024 then the Special Tax for all other Assessor's Parcels must also be
prepaid in whole. The Director of Finance shall effect the calculation of the prepayment
amount pursuant to the terms above. The resulting prepayment amount shall be final and
binding.
Prepayment In Part
The Special Tax may be prepaid in part only if a proportional partial prepayment is made
for all Assessor's Parcels in CFD No. 92-1 which are subject to the Special Tax. The
partial prepayment for each Assessor's Parcel shall be made by delivering to the Director
of Finance not less than 75 days prior to an interest payment date for the bonds or other
indebtedness issued by CFD No. 92-1 an amount in cash equal to all of the following:
(i) all delinquent Special Taxes and penalties applicable to the subject parcel;
(ii) the principal amount of the bonds or other indebtedness of CFD No. 92-1 to be
redeemed as a result of such partial prepayment which shall be the product obtained by
multiplying the acreage of the Assessor's Parcel times a fraction, the numerator for
which is equal to the percentage of the Special Tax to be prepaid times the principal
amount of bonds or other indebtedness of CFD No. 92-1 then outstanding and the
denominator of which is equal to the total acreage for all Assessor's Parcels of Taxable
Property which have not prepaid the Special Tax in whole;
(iii) interest on such principal amount from the previous interest payment date to the
aforesaid interest payment date at the rate borne by the bonds or other indebtedness of
CFD No. 92-1;
(iv) the premium required to be paid, if any, in connection with the redemption of the
bonds or other indebtedness of CFD No. 92-1 as a result of such prepayment;
(v) the applicable Prepayment Fees as determined by the Council, less;
City of Santa amitu 92-1 A.5 0613011992
(vi) the Reserve Fund Credit, and less;
(vii) the amount of any Special Tax applicable to the subject Assessor's Parcel that has
been posted to the current tax roll and actually paid but that has not been then applied
to the payment of debt service on the bonds or other indebtedness of CFD No. 92-1.
The Director of Finance shall effect the calculation of the prepayment amount pursuant
to the terms above. The resulting prepayment amount shall be final and binding.
City of Santa Clarita 92-1 A.6 0613011992
EXHIBIT B
COMMUNITY FACILITIES DISTRICT No. 92-1
CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
PROJECTED SPECIAL TAX RATES
PROJECTED SPECIAL TAXES
COMMUNITY FACILITIES DISTRICT NO. 92-1
OF THE CITY OF SANTA CLARITA
FISCAL
NUMBER
SPECIALTAX
TOTAL
YEAR
OF ACRES
PER ACRE
SPECIAL TAXES
1992-93
55.98
$31,108
$1,741,369,
1993-94
55.98
$33,010
$1,847,816
1994-95
55.98
$33,729
$1,888,041
1995-96
55.98
$34,458
$1,928,878
1996-97
55.98
$35,203
$1,970,565
1997-98
55.98
$35,963
$2,013,123 '
1998-99
55.98
$36,739
$2,056,569
1999-2000
55.98
$37,531
$2,100,923
2000-01
55.98
$38,340
$2,146,205
2001-02
55.98
$39,166
$2,192,434
2002-03
55.98
$40,009
$2,239,633
2003-04
55.98
$40,870
$2,287,821
2004-05
55.98
$41,749
$2,337,020
2005-06
55.98
$42,647
$2,387,252
2006-07
55.98
$43,563
$2,438,541
2007-08
55.98
$44,498
$2,490,909
2008-09
55.98
$45,454
$2,544,380
2009-10
55.98
$46,429
$2,598,978
2010-11
55.98
$47,425
$2,654,728
2011-12
55.98
$13,618
$762,275
TOTAL
NA
NA
$42,627,457
EXHIBIT C
COMMUNITY FACILITIES DISTRICT No. 92-1
CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
MAXIMUM SPECIAL TAX RATES FOR FISCAL YEAR 1992-93
EXHIBIT C
COMMUNITY FACILITIES DISTRICT No. 92-1
CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
MAXIMUM SPECIAL TAXES FOR FISCAL YEAR. 1992-931
Assessor's
Parcel
Number
Parcel Map
22206
Lot#
Fiscal Year 1992-93
Step 1 •
Maximum Special Tax
Fiscal Year 1992-93
Step 2
Maximum Special Tax
2861-059-024
4
$39,831 per acre
N/A
2861-059-004
5
$39,831 per acre
N/A .
2861-058-004
6
$39,831 per acre
NIA
2861-059-008
11
$39,831 per acre
N/A
2861-058-008
12
$39,831 per acre
N/A
2861-058-009
12
$39,831 per acre
N/A
2861-058-024
13
$39,831 per acre
$326,927 per acre
2861-058-025
14
$39,831 per acre
N/A
2861-058-019 •
14
$39,831 per acre
N/A
2861-058-011
14
$39,831 per acre
N/A
2861-059-021
14
$39,831 per acre
N/A
2861-059-028
14
$39.831 per acre
I N/A
t The Maximum Special Tax rates in the table above shall be increased by two percent each Fiscal Year
commencing in Fiscal Year 1993-94.
City of Santa aarita 92-1 C1 0613011992
EXHIBIT D
COMMUNITY FACILITIES DISTRICT No. 92-1
CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
ESTIMATED BOND AND OTHER CFD -RELATED COSTS
EXHIBIT D
COMMIJNITY FACILITIES DISTRICT No. 92-1
CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
ESTIMATED BOND AND OTHER CFD -RELATED COSTS
Estimated Cost of Public Facilities
$16,769,000
Bond Reserve
2,000,000
Capitalized Interest
425,000
Costs of Issuance
806,000
Total Estimated Bonded Indebtedness .'
$20;000,000
MAX DAVM BONDED INDEBTEDNESS
$20;000,000
City of Santa Qarita 92-1 Al 0613011992
EXHIBIT E
COMMUNITY FACILITIES DISTRICT No. 92-1
CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
1 OF 1 SHEETS
I SCALE r- 200'
PROPOSED BOUNDARIES
COMMUNITY FACILITIES DISTRICT
NO. 92-1
(VALENCIA TOWN CENTER)
CITY OF SANTA CLAR?A
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I
RESOLUTION NO. CFD 92-1-1
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA ACTING
ON BEHALF OF COMMUNITY. FACILITIES
DISTRICT NO. 92-1, DETERMINING THE
NECESSITY TO INCUR BONDED INDEBTEDNESS IN
THE AMOUNT OF NOT -TO -EXCEED $20,000,000
WITHIN COMMUNITY FACILITIES DISTRICT NO.
92-1 OF THE CITY OF SANTA CLARITA
(VALENCIA TOWN CENTER)
WHEREAS, the City Council (the "Council") of the City of
Santa Clarita, California (the "City") has heretofore adopted
Resolution No. 92-109 stating its intention to form Community
Facilities District No. 92-1 of the City of Santa Clarita
(Valencia Town Center) ("Community Facilities District No.
92-1" or "CFD No. 92-1") pursuant to the Mello -Roos Community
Facilities Act of"1982, as amended, (the "Act"); and
WHEREAS, the Council has heretofore adopted Resolution
No. 92-110 stating its intention to incur bonded indebtedness
in the amount of not -to -exceed $20,000,000 within proposed
Community Facilities -District No. 92-1 for the purpose of
financing certain public facilities ("Facilities"), to serve
the area within Community Facilities District No. 92-1; and
WHEREAS, on July 14, 1992, this Council held a noticed.
hearing as required by law relative to the proposed formation
of Community Facilities District No. 92-1; and
WHEREAS, at said hearing all persons not exempt from the
special tax desiring to be heard on all matters pertaining to
the formation of Community Facilities District No. 92-1 were
heard and a full and fair hearing was held; and
-1-
WHEREAS, at said hearing evidence was presented to the
Council on said matters before it, and this Council at the
conclusion of said hearing is fully advised in the premises;
and
WHEREAS, the Council subsequent to such hearing adopted
Resolution No. 92-142 establishing Community Facilities Dis-
trict No. 92-1; and
NOW, THEREFORE, the City Council of the City of Santa
Clarita, California, acting as the legislative body of
Community Facilities District No. 9271, does hereby resolve,
determine and order as follows:
Section 1. It is necessary to incur bonded indebtedness
in an aggregate principal amount of not -to -exceed $20,000,000
within Community Facilities District No. 92=1.
Section 2. The bonded indebtedness is incurred for the
purpose of financing the purchase, construction, expansion or
rehabilitation of ceftain real and other tangible property
with an estimated useful life of five years or longer,
including sewer, street, fire protection, bridge, paseo and
drainage improvements and other governmental facilities which
the City and other public.entities are.authorized by law to
construct, own or operate, within or without Community
Facilities District No. 92-1, which are necessary to meet
increased demands placed. upon the City and other public
entities as a result of development or rehabilitation
occurring within Community Facilities District No. 92-1, and
to fulfill contractual commitments and carry out the powers
a
-2-
Y
and purposes of Community Facilities District No. 92-1,
including but not by way of limitation, the costs of selling
bonds to finance such costs of acquisition and construction.
Section 3. The whole of Community Facilities District
No. 92-1 shall pay for the bonded indebtedness.
Section 4. The maximum term of the bonds to be issued
shall in no event exceed forty (40) years from the date of
issue of each series of bonds.
Section 5. The bonds shall bear interest at a rate or
rates established at such time as the bonds are sold in one
or more series at a fixed or variable interest rate, however
not to exceed any applicable statutory rate for such bonds,
payable semiannually, the actual rate or rates and times of
payment to be determined at the time or times of sale
thereof.
Section 6. The bonds issued by Community Facilities
District No. 92-1 may -bear a variable interest rate, provided
that such variable rate shall not exceed the maximum rate
permitted by any applicable provision of law limiting the
maximum interest rate on the bonds. To the extent permitted
by law; an amount equal to the.interim variable interest rate
which from time to time may exceed the maximum interest rate
permitted by law, may be added to the principal amount due
under the bonds.
-3-
PASSED and ADOPTED by the City Council of the City of
Santa Clarita, California at a regular meeting held on the
day of , 1992.
ATTEST:
CITY CLERK
CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA ACTING
AS THE LEGISLATIVE BODY OF .
COMMUNITY FACILITIES DISTRICT NO.
92-1
Mayor
-4-
0
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the City Council of the City of Santa Clarita,
California, at a regular meeting thereof, held on the
day of 1992; by the following vote of the Council:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
CITY CLERK
(SEAL)
I, DONNA GRINDEY, City Clerk of the City of Santa
Clarita,. California, DO HEREBY CERTIFY that the above and
foregoing is a full, true and -correct copy of Resolution No.
CFD 92-1- and that the same has not been amended or
repealed. —
DATED: , 1992.
(SEAL)
9/146/014040-0001/051
City Clerk of the City of
Santa Clarita, California
-5-
RESOLUTION NO. CFD 92-1-2
RESOLUTION OF THE CITY COUNCIL OF THE
CITY, OF SANTA CLARITA, CALIFORNIA
ACTING ON BEHALF OF COMMUNITY FACILITIES
DISTRICT NO. 92-1.CALLING A SPECIAL ELECTION
WHEREAS, the City Council (the "Council") of the City of
Santa Clarita, .California (the "City"), has heretofore
adopted Resolution No. 92-109 stating its intention to form
Community Facilities District No. 92-1 of the City of Santa
Clarita (Valencia Town Center) ("Community, Facilities
District No. 92-1" or "CFD No. 92-1") pursuant to the Mello -
Roos Community Facilities Act of 1982, as amended, (the
"Act"); and
WHEREAS, a
copy
of
Resolution
No. 92-109,
incorporating
a description
of
the
proposed
boundaries
of Community
Facilities District No. 92-1 and setting forth the facilities
to be provided, the cost of providing such facilities.and the
rate and method of apportionment and the manner of collection
of the special tax to be levied within Community Facilities
District No. 92-1 to pay for the services and facilities and
other costs including payment of the principal and interest
on bonds proposed to be authorized. within Community
Facilities District No. 92-1 is on file with the City Clerk
and incorporated herein by reference; and
WHEREAS, on July 14, 1992, this Board held a noticed
hearing as required by law relative to the proposed formation
of Community Facilities District No. 92-1; and
-1-
1
WHEREAS, at said hearing all persons not exempt from the
special tax desiring to be heard on all matters pertaining to
the formation of.Community Facilities District No. 92-1 were
heard and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to the
Council on said matters before it, and this Council at the
conclusion of said hearing is fully advised in the premises;
and
WHEREAS, this Council adopted its Resolution No.
92-142 determining the validity of prior proceedings,
establishing CFD No. 92-1, authorizing the levy of a special
tax within the boundaries of CFD No. 92-1 and proposing an
appropriations limit; and
WHEREAS, this Council adopted its Resolution No. CFD
92-1-1 ,determining the necessity of incurring bonded
indebtedness; and
WHEREAS, the proposed special tax to be levied in
Community Facilities .District No. 92-1 to pay for all the
proposed facilities has not been precluded by majority
protest of the registered voters residing within the terri-
tory of Community Facilities District No. 92-1 or the owners
of one-half (1/2) or. more of the area of land within
Community Facilities District No. 92-1; and
WHEREAS, this Council wishes to present to the qualified
electors of proposed Community Facilities District No. 92-1 a
combined proposition to: (1) levy special taxes on property
-2-
I
within CFD 92-1, (2) incur bonded indebtedness, and (3)
establish an appropriations limit for CFD 92-1; and
WHEREAS, this Council has been presented with a letter
from the Registrar of .Voters certifying there are no
registered voters in CFD No. 92-1 and the written Consent and
Waiver of the only landowner in CFD No. 92-1 to certain
provisions of the Uniform District Elections Act.
NOW, THEREFORE, the City Council of the City of Santa
Clarita, California acting as the legislative body of
Community Facilities District No. 92-1, does hereby resolve,
determine and order as follows:
Section 1. Pursuant to Government Code Section 53353.5,
the Council hereby submits to the qualified electors of
Community Facilities District No. 92-1 a combined proposition
to: (1) levy special taxes on property within CFD 92-1 in
accordance with the rate and method specified in Resolution
92-109 of the Council'; (2) incur bonded indebtedness in the
aggregate principal amount of not -to -exceed $20,000,000; and
(3) establish an appropriations limit as defined by
subdivision (h) of Section 8• of Article XIIIB of the
California Constitution, for Community Facilities District
No. 92-1. Said appropriations limit shall equal the amount
of all proceeds of the special tax collected annually and as
defined by said Article XIIIB, as adjusted for changes in the
cost of living and changes in population. The. combined
proposition is attached as Exhibit "A", which is hereby
incorporated herein by this reference.
-3-
Section 2. A special election is hereby called for
Community. Facilities District No. 92-1 on the combined
proposition set forth in Section 1 hereinabove.
Section 3. The time for notice having been waived by
the qualified elector, the date of the special election for
Community Facilities. District No. 92-1 on the combined
proposition shall be on the 14th day -of July, 1992.
Section 4. The Council finds and determines that there
were no registered voters residing within the territory of
proposed Community Facilities District No. 92-1 at_ the time
of the protest hearing and ninety (90) days prior thereto and
that there is only one landowner inCommunityFacilities
District No. 92-1. The requirements of Sections 53326 and
53327 of the Government Code having been waived by the
landowner, the ballots for the special election have been
previously delivered by mail to the landowner ' within
Community Facilities District No. 92-1. The landowner shall
have one vote for each acre or portion thereof that it owns
within Community Facilities District No. 92-1, as provided in
Section 53326 of the Government Code.
Section 5. Notice of said election and written argument
for or against the measure have been waived by the qualified
elector.
Section 6. Said Community Facilities District No. 92-1
shall constitute a single election precinct for the purpose
of -holding said election.
E
f
Section 7. The qualified elector has waived the call,
holding and conduct of the electionpursuant to the formal
provisions of the Uniform District Election Law of the` State
of California. Said elector having consented to waive such
formality, the Council hereby directs that the election be
conducted by the.City Clerk, as Clerk Ex -Officio of Community
Facilities District No. 92-1, by ballot mailed by the
qualified elector, such ballot to be returned --to the City
Clerk on or before 6:30 PM on July 14, 1992.
PASSED and ADOPTED by the City Council of the..City of
Santa Clarita, California at a regular meeting held on the
day of , 1992.
ATTEST:
CITY CLERK
CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA ACTING
AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO.
92-1
MAYOR
-5-
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the City Council of the City of Santa Clarita,
California, at a regular meeting thereof, held on the
day of , 1992, by the following vote of the Council:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
CITY CLERK
(SEAL)
I, DONNA GRINDEY, City Clerk of the City of Santa
Clarita, California, .DO HEREBY CERTIFY that the above and
foregoing is a.full, true and correct copy of Resolution No.
CFD 92-1- , and that the same has not been. amended or
repealed.
DATED: , 1992.•
City Clerk of the City of
Santa Clarita, California
(SEAL)
9/146/014040_0001/052
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 92-1
OF THE CITY OF SANTA CLARITA (VALENCIA TOWN CENTER)
SPECIAL BOND, TAX AND APPROPRIATIONS LIMIT ELECTION
July 14, 1992
To vote, mark a cross M in the voting square after the
word "YES" or after the word "NO." All marks otherwise made
are forbidden. All distinguishing marks are forbidden and
make the ballot void.
If. you wrongly mark, tear, or deface this ballot, return
it to the Clerk and obtain another.
PROPOSITION NO. A: Shall Community Facil-
ities District No. 92-1 of the City of
Santa Clarita (Valencia Town Center) incur
an indebtedness and be authorized to issue
bonds in the maximum aggregate principal
amount of not -to -exceed $20,000,000 with
interest at a. rate or rates established at
such. time as the bonds. are sold in one or
more series at fixed or variable interest
rates, however not to exceed any applicable
statutory rate for such -bonds, the proceeds
of which will be used to equip, modify,
maintain, rehabilitate, acquire, relocate,
construct or otherwise provide facilities
and all necessary .equipment and property
therefor, as provided in Resolution No.
92-110 of the City Council of the City of
Santa Clarita and shall a special tax be
levied to pay for the principal of and
interest of such indebtedness and bonds and
to otherwise pay to equip, modify,
maintain, rehabilitate, acquire, relocate,
construct or otherwise provide such
facilities, as specified in Resolution No.
92-109 of the City Council of the City of
Santa Clarita and shall an. appropriations
limit be established for Community
Facilities District No. 92-1 pursuant to
Article XIIIB of the California
Constitution, said appropriations limit to
be equal to the amount of all proceeds of
the special tax collected annually, as
adjusted -for changes in the cost of living
and changes population?
EXHIBIT "A"
(Name of Landowner)
Number of Votes
7
RESOLUTION NO. CFD 92-1=3
RESOLUTION OF THE -CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA ACTING ON BEHALF OF
COMMUNITY FACILITIES DISTRICT NO. 92-1
CANVASSING THE RESULTS OF THE ELECTION HELD
WITHIN COMMUNITY FACILITIES DISTRICT NO. 92-1
OF THE CITY OF SANTA CLARITA (VALENCIA TOWN
CENTER)
WHEREAS,
the
City Council
of the
City of Santa
Clarita,
California
(the
• "Council")
has
previously
conducted
proceedings pertaining to the formation of Community
Facilities District No. 92-1 of the City - of Santa Clarita
(Valencia Town Center) ("Community Facilities District No.
92-1" or "CFD No. 92-1"), the authorization of indebtedness
in.the amount of not -to -exceed
$20,000,000
within
Community
Facilities District No. 92-1,
the rate
and
method of
apportionment of a special tax to pay the principal and
interest on bonds issuedorother debt and the calling of -an
election in regard to -the foregoing; and
WHEREAS, on July 14, 1992, an election was held of the
landowner within Community Facilities District No. 92-1
relative to the authorization of not -to -exceed $20,000,000 of
indebtedness and the rate and method of apportionment of the
proposed special tax; and
WHEREAS, at such election the proposal for incurring the
bonded indebtedness, the rate and method of apportionment and
manner of collection of the special tax and establishing an
appropriations limit for Community Facilities District, No.
-1-
G
92-1 was unanimously approved by the landowner within said
District.
NOW; THEREFORE, the City Council of the City of Santa
Clarita, California acting as the legislative body of
Community Facilities District No. 92-1, does hereby resolve,
determine and order as follows:
Section 1. It is hereby determined that the election
conducted within Community Facilities District No. 92-1 was
duly and validly conducted.
Section 2. The Council, acting as the legislative body
of Community Facilities District No. 92-1, is authorized to
levy the special tax on behalf of Community Facilities
District No. 92-1,.as specified in Resolution No. 92-109,
adopted by the City Council on June 9, 1992:
Section 3. The Council is- authorized to incur
indebtedness on behalf of Community Facilities District No.
92-1 within said Community Facilities District in the maximum
amount of not -to -exceed $20,000,000.
Section 4. The Council is authorized to annually
establish an appropriations limit for Community Facilities
District No. 92-1 in the .amount of the special tax to be
levied during said year.
-2-
PASSED and ADOPTED by the City Council of the City of
Santa Clarita, California at a regular meeting held on the
day..of 1992.
Attest:
CITY CLERK
CITY OF SANTA CLARITA, CALIFORNIA
MAYOR
-3-
0
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the City Council of the City of Santa 'Clarita,
California, at a regular meeting thereof, held on the
day of , 1992, by the following vote of the Council:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
CITY CLERK
(SEAL)
I, DONNA GRINDEY, City Clerk of the City of Santa
Clarita, .California, DO HEREBY CERTIFY that the above and
foregoing is a full, true and correct copy of Resolution No.
CFD 92-1- , 'and that the same has not been amended or
repealed. —
DATED: . 1992.
(SEAL)
9/146/014040-0001/053
City Clerk of the City of
Santa Clarita, California
-4-
N
RESOLUTION NO. CFD 92-1-4,
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA ACTING
AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 92-1 AUTHORIZING
AND PROVIDING FOR THE ISSUANCE OF BONDS
OF COMMUNITY FACILITIES DISTRICT NO. 92-1
OF THE CITY OF SANTA CLARITA (VALENCIA
TOWN CENTER)
WHEREAS, the City Council of the City of Santa Clarita,
California (hereinafter referred to as the "Legislative
Body"), has heretofore undertaken proceedings and declared
the necessity to issue bonds on behalf of a Community Facili-
ties District pursuant to the terms and provisions. of the
"Mello -Roos Community Facilities Act of 1982,"' as amended,
being Chapter 2.5, Part 1, Division 2, Title 5 of the Govern-
ment Code of the State of California, said Community Facili-
ties District designated and known as Community Facilities
District No. 92-1 of the City of•Santa Clarita (Valencia Town
Center) (the "Community Facilities District"); and
WHEREAS, pursuant to law a special election was held on
July 14, 1992 and the following proposition was approved by
more than two-thirds of the voters voting at said election:
Shall Community Facilities District No.
92-1 of the City of Santa Clarita
(Valencia • Town Center) incur an
indebtedness and be authorized to issue
bonds in the maximum aggregate.principal
amount of not -to -exceed $20,000,000 with
interest at a .rate or rates established
at such time as the bonds are sold in one
or more series at fixed or variable
interest rates, however not to exceed any
applicable statutory rate for such bonds,
the proceeds of which will be used to
equip, modify, maintain, rehabilitate,
acquire, relocate, construct or otherwise
provide facilities and all necessary
equipment and property therefor, as
provided in Resolution No. 92-110 of the
City Council of the City of Santa Clarita
and shall a special tax be levied to pay
for the principal of and interest of such
indebtedness and bonds and to otherwise
pay to equip, modify, maintain, reha-
bilitate, acquire, relocate, construct or
otherwise, provide such facilities, as
specified in Resolution No. 92-109 of the
City Council of the City of Santa Clarita
and shall an appropriations limit be
established for Community Facilities Dis-
trict No. 92-1 pursuant to Article XIIIB
of the California Constitution, said
appropriations limit to be equal to the
amount of all proceeds of the special tax
collected annually, as adjusted for
changes in the cost of living and changes
in population?; and
WHEREAS, on August 25, 1992, the Legislative, Body
adopted Ordinance No. CFD 92-1-1 authorizing the levy of a
Special Tax in the Community Facilities District; and
WHEREAS, no bonds of the above -referenced authorization
to date have been issued and sold, and at this time it is the
desire of this Legislative Body to proceed to issue Bonds of
Series A in the amount of not -to -exceed $20,000,000;
NOW, THEREFORE, the City Council .of .the City of Santa
Clarita, California does hereby resolve, determine and order
as follows:
ARTICLE I.
DEFINITIONS
Section 1.01 As used in this Resolution, the following
terms shall have the following meanings:
"Act" means the "Mello -Roos Community Facilities Act of
1982," as amended, being Chapter 2.5, Part 1, Division 2,
Title 5 of.the Government Code of the State of California.
"Additional Bonds". means any additional bonds issued by
the Community Facilities District as permitted. by Section
8.04 of this Resolution payable from the Special Taxes on a
parity with the.Bonds.
"Annual Debt Service" means, for- each Debt Service
Year, the sum of (1) the interest falling due on the
Outstanding Bonds in such Debt Service Year, assuming that
the Outstanding Serial Bonds are retired as scheduled and the
Outstanding Term Bonds are redeemed as scheduled; (2) the
principal amount of Outstanding Serial Bonds falling due by
their terms in such Debt Service Year; and (3) the minimum
amount of the Outstanding Term Bonds required to be paid or
called and redeemed in such Debt Service Year, together with
the redemption premium, if any, thereon.
-2-
"Authorized Representative" means any of the officials
of the City designated in this Resolution.
"Bond Payment Fund" means the fund by that name estab-
lished in Section 3.02.
"Bond Reserve -Fund" means the fund by that name estab-
lished in Section 3.02.
"Bond Redemption Fund" means the fund by that name
established in Section 3.02.
"Bonds" means the Community Facilities District No. 92-1
of the City of Santa Clarita (Valencia Town Center), Special
Tax Bonds, Series A and any Additional Bonds issued pursuant
to this Resolution and any resolution supplemental thereto.
"Bonds of Series All means the not -to -exceed $20,000,000
principal amount of Community Facilities District No. 92-1 of
the City of Santa Clarita (Valencia Town Center), Special Tax
Bonds, Series A.
"City" means the City of Santa Clarita.
"Community Facilities District" means Community
Facilities District No. 92-1 of the City of Santa Clarita
(Valencia Town Center).
"Community Facilities Improvement Fund" means the fund
by that name established in Section 3.02.
"Consultant's Report" means a report signed by an
Independent Financial Consultant or an Independent Special
Tax Consultant, as may be appropriate to the subject of the
report, and including:
(i) a statement that the - person or firm. making or
giving such report has read the pertinent provisions of this
Resolution to which such report relates;
(ii) a brief statement as to the nature and scope
of the examination or investigation upon which the report is
based; and
(iii) a statement that, in the opinion of such
person or firm, sufficient examination or investigation was
made as is necessary to enable said Independent Financial
Consultant or Independent Special Tax Consultant to express
an informed opinion with respect to the subject matter
referred to in the report.
-3-
"Costs of Issuance" means the costs of forming the
Community Facilities District and issuing Bonds, including,
but not limited to appraisal, bond counsel fees and disburse-
ments, bond and official statement printing costs, con-
sultants' fees, filing and recording fees, printing,
advertising and posting of notices, and initial fees of the
Fiscal Agent and its counsel.
"Debt Service Year" means the year ending each
November. 15 while the Bonds remain Outstanding.
"Fiscal Agent" means First Trist Natinnal Asso-. and
any other bank or trust company which may be substituted in
its place as provided in Section 8.11.
"Government Obligations" shall mean and include any of
the following securities, if and to the extent the same are
at the time legal for investment of the Community Facilities
District's funds: direct obligations of, or obligations the
principal of and interest on which are unconditionally
guaranteed by, the United States of America, including
obligations issued or held in book entry form on the books of
the Department of the Treasury of the United States of
America and including a receipt, certificate or any other
evidence of an ownership interest in an aforementioned
obligation, or in specified portions thereof (which may
consist of specified portions of interest thereon) and also
including advance refunded tax-exempt bonds secured by the
aforementioned obligations. For the purposes of. Section
8.10, Government obligations shall mean and include•only such
securities as are described in the preceding sentence which:
(x) shall not be subject to redemption prior to their
maturity other than at the option of the owner thereof unless
the moneys to be available from the redemption of such
securities on the earliest date on which such securities are
subject to redemption, other than at the option of the owner
thereof, shall be at least equal to the amount of money
expected to be derived in connection with such securities -,in
determining that the provisions of clause (B) of Section 810
have been satisfied, and. (y) which are then permitted to be
applied as provided.in Section 8.10 under:applicable law.
"Holding Account" means the account by that name as
described in Section 3.02(B)(4).
"Independent Financial Consultant" means a financial
consultant or firm of such consultants generally recognized
to be well qualified in the financial consulting field,
appointed and paid by the Legislative Body and. satisfactory
to and approved by the Fiscal Agent (which shall be under no
liability by reason of such approval, such approval to be not
unreasonably withheld) and who, or each of whom:
-4-
(i) is in fact independent and not under the
domination of the City or the Community Facilities District;
(ii) does not have any substantial interest, direct
or indirect, with the City or the Community Facilities
District; and
(iii) is not connected with the City or the
Community Facilities District as a member, officer or
employee of the City or the Community Facilities District,
but who may be regularly retained to make. annual or other
reports to the City or the Community Facilities District.
"Independent Special Tax Consultant" means a consultant
or firm of such consultants generally recognized to be well
qualified in the field of consulting relating to special tax
bond financing by California community facilities districts,
appointed and paid by the City or the Community Facilities
District and satisfactory to and approved by the Fiscal Agent
(who shall be under no liability by reason of such approval),
and who, or each of whom:
(i) 'is in fact independent and not under the
domination of the City or the Community Facilities District;
(ii) does not have any substantial interest, direct
or indirect, with the City or the Community Facilities
District; and
(iii) is not connected with the City or the
Community Facilities District as a member, officer or
employee of the City' or the Community Facilities District,
but who may be regularly retained to make annual or other
reports to the City or the Community Facilities District.
"Information Services" shall mean Financial Information,
Inc.'s "Daily Called Bond Service," 30 Montgomery Street,
10th Floor, Jersey City, New Jersey 07302, Attention:
Editor; Kenny Information Services "Called Bond Service," 55
Broad Street, 28th Floor, New York, New York 10004; Moody's
"Municipal and Government," 99 Church Stree " 8th Floor, New
York, New York 10007, Attention: Municipal -News Reports; and
Standard and Poor's "Called Bond Record," 25 Broadway, 3rd
Floor, New York, New York 10004; or, in accordance with
then -current guidelines of the Securities and Exchange
Commission,. such other services providing information with
respect to called bonds, or no such services, as an,
Authorized Representative may designate in a certificate
delivered to the Fiscal Agent.
"Interest Account" means the account by that name as
described in Section 3.02(B)(1).
-5-
"Interest Payment Date" means May 15. and November 15 of
each year commencing May 15, 1993.
"Investment Securities" shall mean and include any of
the following securities, if and to the extent the same are
at the time legal for investment of the Community Facilities
District's funds:
(i) Government Obligations;
(ii) Bonds, debentures, notes, participation
certificates or other evidences of indebtedness issued,
or the principal of and interest on •which are
unconditionally guaranteed, by the Bank for
Cooperatives, the Federal.Intermediate Credit Bank, the
Federal Home Loan Bank System, the Federal Land Banks,
the Government National Mortgage Association, the
Federal National Mortgage Association or any other
agency or instrumentality of or corporation wholly owned
by the United States of America when such obligations
are backed by the full faith and credit of the United
States;
(iii) Obligations of any state of the United States
or any.political subdivision thereof, which at the time
of investment are .rated "A1" or higher by the Rating
Agency; or which are rated by the Rating Agency "P-1" or
better with respect to commercial paper, or "MIG -1" with
respect to municipal notes;
(iv) Bank time deposits evidenced by certificates
of deposit, and bankers' acceptances, issued by any
bank., trust company or national banking association
insured by the Federal Deposit Insurance Corporation;,
provided that (a) such bank, trust -company, or national
banking association. be rated "Al"or better by the
Rating Agency, or else that all of the securities
acquired pursuant to this subsection (iv) be for amounts
of $100,000 or less, and with maturities of no longer
than 365 days; and, (b) provided that (x) the. aggregate
of such bank time deposits and bankers' acceptances
issued by any bank, trust company or banking association
does not exceed at any one time ten percent (10%) of the
aggregate of the capital stock, surplus and undivided
profits of such bank, trust company or banking
association and that such capital stock, surplus and
undivided profits shall not be less than Twenty -Five
Million Dollars ($25,000,000), or else that (y) such
deposits are fully and continuously secured. by a valid
and perfected prior security interest in obligations
described in•paragraph (i) or (ii) of this definition.'
If the unsecured debt of such bank, trust company. or
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national banking institution is not rated "Al" or better
by the Rating Agency_ and if collateralized securities
are acquired pursuant to this paragraph (iv), then the
following additional conditions with respect to such
collateralized securities must be satisfied:
* the Fiscal Agent or a third party acting solely as
agent for the Trustee has possession of the
collateral;
* the Fiscal Agent. has a perfected first priority
security interest in the collateral;
* collateral is free and clear of third -party, liens
and in the case of a Securities Investors
Protection Corp. broker, was not acquired pursuant
to. a repurchase agreement or reverse repurchase
agreement; and
*• failure to maintain the requisite collateral level
will require the Fiscal Agent to liquidate
collateral.
(v) Repurchase agreements with any bank, trust
company or national banking association insured by the
Federal Deposit Insurance Corporation or with any
government bond dealer recognized as a primary dealer by
the Federal Reserve :Bank of New York, which agreements
are fully and continuously secured by a valid and
perfected priority security interest in obligations
described in paragraph (i) or (ii) of this definition,
provided that. either the unsecured debt of such bank,
trust company or national banking association is rated
"Al" or better, by the Rating Agency, or that the
following conditions are met:
* the Fiscal Agent or a third party acting solely as
agent for the Fiscal Agent has possession of the
collateral;
* the Fiscal Agent has a perfected first priority
security interest in the.collateral;
* collateral is free and clear of third -party liens
and in the case of a Securities Investors
Protection Corp. broker, was not acquired pursuant
to a repurchase agreement or reverse repurchase
agreement; and
* failure to maintain the requisite collateral level
will require the Fiscal Agent to liquidate
collateral.
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(vi) Investment agreements with any corporation,
including banking or financial institutions, the
unsecured corporate debt of which is rated, at the time
of investment, "Al" or higher by the Rating Agency;
(vii) Guaranteed investment contracts or similar
funding agreements issued by insurance companies, the
claims paying ability of which, at the time of
investment, is rated "Al"or higher by the Rating
Agency;
(viii) Corporate commercial paper rated 11P-1" or
better by the•Rating Agency at the time of investment;
(ix) Taxable government money market portfolios
restricted to obligations with maturities of one year or
less issued by, or the payment of principal and interest
withwith respect to which is guaranteed by, the United
States of America; provided that such obligations shall
not be acquired unless the Fiscal Agent is furnished
with an opinion in a form acceptable to the.Fiscal Agent
which states, without material qualification or
limitation, that upon ,acquiring such obligation the
Fiscal Agent shall obtain a first perfected security
interest in the collateral to such obligation,
enforceable notwithstanding the insolvency of or the
appointment of a receiver for the collateral provider;
and
(x) The Local Agency Investment Fund established
pursuant to Section 16429.1 of the Government Code of
the State of California, as permitted by law.
"Legislative Body" means the City Council of the City of
Santa Clarita.
"Outstanding Bonds" means all Serial and Term Bonds
theretofore issued by the Community Facilities District,
except:
(i) Bonds theretofore cancelled or surrendered for
cancellation in accordance. with Section 8.03 hereof;
(ii) Bonds for payment or redemption of which
monies shall have been theretofore deposited in trust
(whether upon or prior to the maturity or the redemption date
of such Bonds) pursuant to' Section 8.10 hereof, provided
that, if such Bonds are to be. redeemed prior to the.maturity
thereof, notice of such redemption shall have been given as
provided in this Resolution or any applicable resolution
supplemental hereto; and
(iii) . Bonds in lieu of or in substitution for
which other Bonds shall have been authenticated and delivered
by the Fiscal Agent pursuant to Section 8.02.
"Owner" means the registered owner of any Outstanding
Bond.
"Principal Payment Date" means November 15 of each year,
commencing on November 15, 1993.
"Public Facilities" means the facilities as described in
the "Facilities Report for Community Facilities District No.
92-1 of the City of Santa Clarita (Valencia Town Center)" on
file in the office of the City Clerk of the Legislative Body
or as may hereafter be amended.
"Rating Agency" means Moody's Investors Service,
Standard and ' Poor's Corporation, their successors and
assigns, or, if such corporations shall be dissolved or
liquidated or shall no longer perform the functions of a
securities rating agency, any other nationally recognized
securities rating agency designated by the Community
Facilities District.
"Record Date" means the last day of the month preceding
an Interest Payment Date.
"Reserve Fund Reguirement" means, as of any date, an
amount equal to ten percent (10%) of the original principal
amount of each series of Bonds of which any Bonds �are ,then
Outstanding.
"Resolution" means this Resolution No. CFD 92-1-A_, as
adopted on July 14, 1992, and as may be amended in
accordance herewith.
"Securities Depositaries" shall mean the following
registered- securities depositaries: The Depository Trust
Company, 711 Stewart Avenue, Garden City, New York 11530,
Fax - 516/227=4039 or 4190; Midwest Securities Trust Company,
Capital Structures -Call Notification, 440 South LaSalle
Street, Chicago, .Illinois 60605, Fax - 312/663-2343; and
Philadelphia Depository Trust Company, Reorganization
Division, 1900 Market Street, Philadelphia, Pennsylvania
19103, Attention: Bond Department, Dex - 215/496-5058; or,
in accordance with then -current guidelines of the Securities
and Exchange Commission, such other securities depositories,
or no such depositories, as an Authorized Representative may
designate in a certificate delivered to the Fiscal Agent. .
"Serial Bond Payment Account" means the account by that
name as described in Section 3.02(B)(2).
W=
"Serial Bonds" means the Bonds of Series A described in
Section 2.05(A) hereof, and as to Additional Bonds shall mean
Additional Bonds designated as Serial Bonds in the
supplemental resolution providing for the issuance thereof.
"Special Taxes" means. the taxes authorized pursuant to
the Act and these proceedings and levied pursuant to the
provisions of Ordinance No. CFD 92-1-1, including "any
proceeds received in foreclosure following a default in the
payment of Special Taxes.
"State" means the State of California.
"Term Bond Payment Account" means the. account by that
name as described in Section 3.02(B)(3).
"Term Bonds" means the Bonds of Series A described in
Section 2.05(B) hereof, and as to Additional Bonds shall mean
Additional Bonds designated as Term Bonds in the supplemental
resolution providing for the issuance thereof which are
payable at or before their specified.maturity date or dates.
"Treasurer" means the Treasurer -Tax Collector of the
County of Los Angeles.
ARTICLE II.
GENERAL AUTHORIZATION AND TERMS
Section 2.01 Findings. The Legislative Body finds that
the above recitals are all true and correct.
Section 2.02 Amount. Issuance and Purpose. Pursuant
to the provisions of the Act and the Registered Public
Obligations Act of California (Sections 5050 and following of
the California .Government Code), this Legislative Body does
hereby authorize the issuance, at any time under and subject
to the terms of this Resolution, of Bonds in the maximum
aggregate principal amount of not -to -exceed $20,000,000. The
purpose of the Bonds of Series A shall be to finance the
acquisition or construction of a portion of Public Facilities
to meet the needs of new development within the Community
Facilities District, as set forth in the bond proposition.
Section 2.03 Description of Bonds of Series A. The
Bonds of Series A shall be designated "Community Facilities
District No. 92-1 of the City of Santa Clarita (Valencia Town
Center), Special Tax Bonds, Series A". The Bonds of Series A
of each maturity shall be numbered in a manner satisfactory
to the Fiscal Agent. All of said Bonds of Series A shall be
dated the lst of October,.1992. The Bonds of Series A shall
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be in the aggregate principal amount of not -to -exceed
$20,000,000.
Section 2.04 Type and Nature of Bonds. The Bonds
shall be special obligations of the Community Facilities
District secured by and payable from an irrevocable first
lien on and. first pledge of the Special Taxes, investment
income earned after completion of construction of the Public
Facilities on funds on deposit in the Funds established
hereunder (subject to the obligation to rebate arbitrage
profits, in accordance with Section 8.09) and all monies on
deposit in the Bond Payment, Bond Reserve and Bond Redemption
Funds. Said Bonds, the interest. thereon, and any, premiums
payable on the redemption of any thereof,-- are not an
indebtedness of the City, the State of California, or any of
its political subdivisions, and neither the City, the State
nor any of its political subdivisions is liable on theBonds,
nor in any event shall said Bonds or interest be payable out
of any funds or -properties other than those of the Community
Facilities District as in this Resolution set forth. Neither
the members of the Community Facilities District or the City
nor any persons executing the Bonds are liable personally on
the Bonds by reason of their issuance.
The Bonds shall be and .are equally secured by and
payable from an irrevocable and first pledge of Special Taxes
and other funds as may be provided above and hereinafter,
without priority for number, date of sale, date of execution
or date of delivery, except as expressly provided herein.
The validity of the Bonds is not and shall not be
dependent upon the completion of the Public Facilities or
upon the performance of any one of the obligations relative
to the Community Facilities District.
Nothing in this Resolution shall prevent the Community
Facilities District from making advances from any other
source of revenue not otherwise prohibited by law.to any of
the uses and purposes mentioned in this Resolution.
Section 2.05 Maturity and interest Rate.
(A) Serial Bonds of Series A. The. Serial Bonds of
Series A shall be issued with annual principal maturing on
November 15, 1993? and November 15 of each succeeding year in
the principal amounts and bearing interest at. the rates as
set forth below:
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Princinal Amount
1993
$ 180,000
4.508
1994
220,000
5.50
1995
270,000
6.25
1996
325,000
6.75
1997
380,000
7.00
1998
450,000
7.25
1999
520,000
7.50
2000
600,000
7.70
2001
685,000
7.80
2002
780,000
7.90
2003
885,000
7.95•
2004
995,000
8.00
2005
1,120,000
8.25-
2006
1,260,000
8.25
2007
1,405,000
8.25
(B) Term Bonds of Series A. The Term Bonds of Series A
shall be issued with principal maturing on November 15, 2012,
and subject to mandatory sinking fund redemption as set forth
in Section 5.01(B) and bearing interest as set forth below:
Principal Amount
YEAR Maturing (November 15) Interest Rate
2012
$9r785,000
8.258
Section 2.06 Interest. All Bonds of Series A shall
bear interest at the rates provided for in Section 2.05.
Interest shall be payable semiannually on May 15 and
November 15, commencing November 15,• 1993 and each Bond of
Series A shall bear interest from the Interest Payment Date
next preceding the date on which it is authenticated, unless
(i) said Bond of Series A is authenticated on an Interest
Payment Date, in which case it shall bear interest from the
date thereof; or (ii) said Bond of Series A is authenticated
after the Record Date .for such Interest Payment Date and
before such Interest Payment Date; in which case it shall
bear interest from such Interest Payment Date;. or (iii) said
Bond of Series A is authenticated on or prior to April 30,
1993, in which event interest shall be payable from October
1, 1992.
Section 2.07 Place of Payment. The principal of and
any redemption premium on the Bonds of Series A shall be
payable in lawful money of the United States of America upon
surrender thereof at maturity or the earlier redemption
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thereof at the principal corporate trust office of the Fiscal
Agent in Los Angeles, California.
Interest on said Bonds of Series A shall be paid by
check of the Fiscal Agent in lawful money of the United.
States mailed by first class mail on the Interest Payment
Date to the Owner thereof at his or her address as it appears
on the books of registration, as of the Record Date for said
Interest Payment Date.
Section 2.08 Execution and Authentication of Bonds.
The Bonds shall be executed in facsimile by the Mayor and by
the City Clerk. The Bonds. shall then be delivered to the
Fiscal Agent, for authentication and registration. In case
an officer who shall have signed or attested to any of the
Bonds by facsimile or otherwise shall cease to be such
officer before the authentication, delivery and issuance of
the Bonds, such Bonds may nevertheless be authenticated,
delivered and issued, and upon such authentication, delivery
and issue, shall be as binding as though those who signed and
attested the same had remained in office.
Section 2.09 Order to Print and Authenticate Bonds.
The Community Facilities District is hereby authorized to
cause Bonds of Series A in substantially the form set forth
herein as Exhibit "A" hereto, to be printed, and to proceed
to cause the Bonds of Series A to be authenticated by the
Fiscal Agent and delivered to an authorized representative of
the purchaser, upon payment of the purchase price.
ARTICLE III.
FUNDS
Section 3.01 Application of Proceeds of Sale of Bonds
of Series A. Upon receipt of payment ,for the Bonds of Series
A, the Fiscal Agent shall set aside and deposit the proceeds
received from such sale- and delivery in the following
respective funds and accounts established in Section 3.02
hereof:
(i) The Fiscal.Agent shall deposit in the Interest
Account a sum equal to the amount of accrued interest
and premium, if any, received upon the issuance of the
Bonds of Series A, together with a portion of the amount
equal to the interest -which will accrue on the Bonds of
Series A from October 28, 1992 to May 15, 1993, as will
be designated in writing by an Authorized
Representative.
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(ii) The Fiscal Agent shall deposit in the Bond
Reserve Fund an amount which is equal to the Reserve
Fund Requirement.
(iii) The Fiscal Agent shall transfer the balance of
the proceeds of the- Bonds of Series A to the Community
Facilities Improvement Fund.
Section 3.02 Special Funds. There are hereby created
and established the following funds for the deposit and
allocation of moneys held by the Fiscal Agent: Bond Reserve
Fund, Bond Payment Fund, Community Facilities Improvement
Fund and Bond Redemption Fund. So long as any of the
Bonds herein authorized, or any interest thereon, remain
unpaid, the moneys in the foregoing funds shall be used for
no purpose other than those required or permitted by this
Resolution and the Act.
(A) Bond Reserve Fund. An amount equal to the Reserve
Fund Requirement shall be maintained in the Bond Reserve
Fund, which Fund shall be held and administered by the Fiscal
Agent for the benefit of the Owners.
If the amount in the Bond Reserve Fund is less than the
Reserve Fund Requirement, then the Bond Reserve Fund shall be
restored to the Reserve Fund Requirement by the Community
Facilities District from any available funds or, to the
extent such funds are insufficient, by increasing the Special
Tax rate for the next. annual Special Tax levy so as to
generate Special Taxes in an amount sufficient to replenish
the Bond Reserve Fund,, provided that such rate shall not
exceed the maximum authorized Special Tax rate.
Except as otherwise provided- herein, including Section
8.09 hereof, the moneys in the Bond Reserve Fund shall' be
used only for payment of the principal of and interest on the
Bonds, and more specifically as follows:
(1) For transfer to the Bond. Payment Fund from
time to time such amounts as are needed to pay the principal
of and interest on the Bonds when due;
(2) To redeem Bonds in accordance with the provi-
sions of this Resolution;
(3) The amount in the Bond Reserve Fund in excess
of the Reserve Fund Requirement shall be transferred by the
Fiscal Agent (i) to the Community Facilities Improvement Fund
on April 30 and October 31 of each year prior to the filing
with the Fiscal Agent of the written notice of completion of
the Public Facilities pursuant to Section 3.02, and (ii) to
the Interest Account of the Bond Payment Fund on April 30 and
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October 31 of each year, beginning on the first such date
following the filing with the Fiscal Agent of the written
notification of completion; and
(4) In the Debt Service Year in which the final
maturity of the Outstanding Bonds is to be paid, whether at
maturity pr redemption, the amount then on deposit in the
Bond Reserve Fund shall be transferred to the Bond Payment
Fund and utilized to pay, in whole or part, the principal of
and interest on such Bonds.
The portion of the Reserve Fund Requirement
allocable to any series of Bonds may be satisfied by
crediting to the Bond Reserve Fund moneys, a letter of
credit, a bond insurance policy, or any other comparable
credit facility or any combination thereof, which in the
aggregate make funds available in the Bond Reserve Fund in an
amount equal to the Reserve Fund Requirement allocable to
such series of Bonds; however, the long-term unsecured debt
or claim -paying ability, as the case may be, of the provider
of any such letter of credit, bond insurance policy or any
other comparable credit facility, must have a rating of at
least AA from Moody's Investors Service or AA from Standard &
Poor's Corporation.
(B) Bond Payment Fund. Moneys received from the
collection of Special Taxes during each Bond Year, in an
amount equal to, but -not exceeding, the 'amount of Annual Debt
Service and. any amount required to restore the Bond Reserve
Fund to the Reserve Fund Requirement, shall be deposited, as
received, by the Community Facilities District in the Bolding
Account of the Bond 'Payment Fund, which shall be held and
administered by the Fiscal Agent for the benefit of the
Owners and used as provided herein.
Following the deposits of Special Taxes set forth in the
preceding paragraph, all money in the Bond Payment Fund shall
be set aside by the Fiscal Agent in the following respective
accounts within the Bond Payment Fund (each of which is
hereby created and each of which the .Community Facilities
District hereby covenants and agrees to cause to be
maintained by the Fiscal Agent), in the.following order of
priority:
(1) Interest Account,
(2) Serial Bond Payment Account,
(3) Term Bond Payment Account, and
(4) Bolding Account.
All money in each of such accounts shall be held by the
Fiscal Agent and shall be applied, used and withdrawn only
for the purposes hereinafter authorized in this Section.
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(1) Interest Account. On or before April 30 and
October 31 of each year, beginning on April 30, 1993, the
Fiscal Agent shall transfer from the Holding Account and
deposit in the Interest Account an amount. of money which,
together with any money contained therein, is equal to the
aggregate amount of the interest becoming due and payable on
all Outstanding Bonds on the next succeeding Interest Payment
Date. No deposit need be made into the Interest Account if
the amount contained therein is at least equal to the aggre-
gate amount of the interest becoming due and payable on all
Outstanding Bonds on the next succeeding Interest Payment
Date. All such money in the Interest Account shall be used
and withdrawn by the Fiscal Agent solely for the. purpose of
paying the interest on the Bonds as it shall become due and
payable (including accrued interest on any Bonds purchased or
redeemed prior to maturity).
(2) Serial Bond Payment Account. On or.' before
October 31 of each year, beginning October 31, 1993, the
Fiscal Agent shall transfer from the Holding Account and
deposit in the Serial Bond Payment Account an amount of money
which, together with any money contained therein, including
all earnings thereon, is equal to the aggregate amount of the
principal becoming due and payable on all Outstanding Serial
Bonds on the next succeeding Principal Payment. Date. No
deposit need be made into the Serial Bond Payment Account if
the amount contained therein is at least equal to the
aggregate principal amount of all Outstanding Serial Bonds
becoming due and payable by their terms on the next suc-
ceeding Principal Payment Date. All money in the Serial Bond
Payment Account shall be used by the Fiscal Agent solely for
the purpose of paying the principal of the Serial Bonds as
they shall become due and payable.
(3) Term 'Bond Payment Account. On or before
October 31 of each year while the Bonds are Outstanding, the
Fiscal Agent shall transfer from the Holding Account -to the
Term Bond Payment Account, an amount of money equal to,, but
not greater than, the aggregate mandatory sinking fund
redemption required to be made on the succeeding Principal
Payment Date, if, any, as may be provided in any mandatory
sinking fund redemption schedule in any resolution
supplemental hereto for Term Bonds issued'pursuant thereto.
No deposit need be made into the Term Bond Payment Account if
the amount contained therein is at least equal to the
aggregate amount of mandatory sinking fund redemptions
required to be made in the Debt Service Year ending on the
next succeeding Principal Payment Date.
The Community Facilities District hereby covenants
and agrees with the Owners of the Term Bonds to call and
redeem Term Bonds (without premium) in the amounts and at the
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times set forth in Section 5.01(B) and- as provided in any
mandatory sinking fund redemption schedule in any resolution
supplemental hereto for Term Bonds issued pursuant thereto.
All money in the Term Bond Payment Account shall be used and
withdrawn by the Fiscal Agent only to redeem Term Bonds.
(4) Holding Account. After the payment of Annual
Debt Service on each November 15, commencing November 16,
1993, the Fiscal Agent shall make the following disposition
(listed in order of priority) of the amounts then remaining
on deposit in the Holding Account of the Bond Payment Fund:
(a) Upon written direction of an Authorized
Representative, transfer to the Excess Earnings Tracking
Account established pursuant to Section 8.09_, arbitrage
profits (as directed in said written direction) then
remaining in such account, if any.
(b) Transfer to the Bond Reserve Fund the
amount, if any, necessary to increase the Bond Reserve Fund
to an amount equal to the Reserve Fund Requirement.
(c) Retain in the Holding Account the amount,
if any, by which Annual Debt Service for the Debt Service
Year ending on the next succeeding September 1, exceeds the
estimated Special 'Tax receipts to be received prior to such
date.
For the purpose of estimating such Special Tax
receipts, the Fiscal Agent may rely upon a certificate signed
by an Authorized Representative.which shall be filed with the
Fiscal Agent on or before November 15 of each year commencing
November 15, 1993. Said estimate of the.Special Tax receipts
shall be based upon the amount of the Special Taxes to be
collected in said Debt Service Year, as levied by resolution
of.the Legislative Body. An allowance. shall be made for
delinquent Special Taxes in an amount equal to the actual
rate of delinquent Special Taxes in the most recent Debt
Service Year for which such data is available or, if such
data shall be unavailable, at a rate.equal to the delinquency
rate on secured ad valorem taxes .on property within the
Community Facilities District for the most recent Debt
Service Year for which such data are available.
(d) Upon receipt of a certificate of an
Authorized Representative that the amounts remaining after
the above transfers will not be necessary to pay Annual Debt
Service for the next Debt Service Year, such amounts shall be
transferred to the General Fund of the Community Facilities
District held by the Treasurer of the.City or his authorized
representative and may be used by the Community Facilities
District for any authorized purpose, including without
-17-
limitation, payment of Fiscal Agent fees and expenses and for
audit reports, or at the discretion of the Legislative Body
shall be transferred to the Bond Redemption Fund to be
utilized for the purchase or redemption of Bonds as provided
hereinbelow.
(C) Community Facilities Improvement Fund. The
Community Facilities Improvement Fund shall be held and
administered by the Fiscal Agent. Themoneys in said
Community Facilities Improvement Fund shall be used'to pay
the costs and expenses, including Costs of Issuance, relating
to the issuance of the Bonds of Series A and any Additional
Bonds and the construction or acquisition of. the Public
Facilities to be funded by.the Bonds. Upon completion of the
acquisition or construction of the Public Facilities to be
funded by the Bonds, an Authorized Representative of the
Community Facilities District shall file written notification
of completion with the Fiscal Agent, and thereupon any moneys
remaining in said Fund shall be transferred by the Fiscal
Agent to the Bond Payment Fund and deposited in the Holding
Account.
Before any payment is made from said Community
Facilities Improvement Fund by the Fiscal Agent, the
Community Facilities District shall cause to be filed with
the Fiscal Agent a written requisition, in substantially the
form attached hereto as Exhibit B, signed by an Authorized
Representative showing with respect to each payment to be
made=
(1) the item number of the payment;
(2) -the name and address of the person to whom payment
is due;
(3) the amount to be paid; and
(4) the purpose for which the obligation to be paid was
incurred.
Each such written.requisition shall set forth:
(a) that obligations in the stated amounts have
been incurred by the Community Facilities District and
that each item thereof is a proper charge against the
Community Facilities Improvement Fund; and
(b) .that there has not been filed with or served
upon> the Community Facilities District notice of any
lien, right to lien or attachment upon, stop notice or
claim affecting the right to receive payment of, any of
the moneys payable to any of the persons named in. such
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written requisition, which has not been released or will
not be released simultaneously with the payment of such
obligation, other than materialmen's or mechanics' liens
attaching by operation of law.
Upon receipt of each such written requisition, the
Fiscal Agent shall pay theamount setforth therein as
directed by the terms thereof. The Fiscal Agent need not
make any such payment if it has received notice of any lien,
right to lien or attachment upon, or claim affecting the
right to -receive payment of, any of the moneys to be so -paid,
which has not been released or will not be released
simultaneously with such payment.
(D) Bond Redemption Fund. The Bond Redemption Fund
shall be held and administered by the Fiscal Agent for the
benefit of the Owners. Into said Bond Redemption Fund shall
be deposited moneys provided by. the Community Facilities
District for the redemption of Bonds pursuant to Section 5.01
and any moneys set aside in said Fund shall be used solely
for the purpose of redeeming Bonds; provided, however, that
upon the election of the Community Facilities District, as
evidenced by a written request of an . Authorized
Representative, the moneys transferred from the Holding
Account to the Bond Redemption Fund may be utilized for the
purchase by the Community Facilities District and cancel-
lation of Bonds at a price not exceeding the Redemption Price
(as defined in Section 5.01 hereof) of such Bonds. Following
the redemption (or purchase and cancellation) of any Bonds
and the setting aside of moneys sufficient for the redemption
of Bonds which have not been surrendered to the Fiscal Agent,
if any surplus remains, said surplus shall be returned and
transferrgd to the Holding Account of the Bond Payment Fund.
Section 3.03 Investment of Funds. Moneys in.the Bond
Payment Fund,. Community Facilities Improvement Fund, Bond
Reserve Fund. and Bond Redemption Fund shall be invested and
reinvested in Investment Securities, as directed by an
Authorized Representative in writing two business days prior
to the date of making such investment. In the absence of
such written direction, the Fiscal Agent shall invest solely
in Investment Securities. described in paragraph (ix) of the
definition thereof, subject to the limitation set forth
therein. The Fiscal Agent shall incur no liability from loss
on investments made at the direction of the Community
Facilities District pursuant to this Section 3.03.
Investment of money in the Bond Payment Fund or any of
the designated accounts therein must mature prior to the date
at which said money is estimated to be required to be paid
out under the terms of this Resolution. All earnings,
interest and profits from the investment of moneys shall,
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subject to the requirements of. Section 8.09, be credited to
the fund in which such moneys are held, except that prior to
the Fiscal Agent's receipt of the written notification
provided for in Section 3.02(c) hereof regarding completion
of the Public Facilities to be financed by the Bonds, any
such earnings, interest and profits on all Funds, other than
the Excess Earnings Tracking Account, shall be deposited in
the Community Facilities Improvement Fund.
Notwithstanding anything to the contrary in the fore-
going, no investment shall be directed so as to cause the
Bonds to be directly or indirectly guaranteed within the
meaning. of Section 149(b) of the Internal Revenue Code of
1986, as amended, and any regulations thereunder.
ARTICLE IV.
REGISTRATION
Section 4.01 Registration and Denomination of Bonds of
Series A. The Bonds of Series A shall be issuable only as
fully registered bonds in the denomination of $5,000, 'or any
integral multiple thereof.
Section 4.02 Exchange of Bonds. Bonds may be
exchanged at the principal corporate trust office of the
Fiscal Agent in Los Angeles, California, for a like aggregate
principal amount of Bonds of the same series" and maturity,
subject to the terms and conditions provided in the Fiscal
Agent's system of registration,- including the payment of
certain charges, if any, upon surrender of such Bonds. Upon
such exchange, a new registered Bond or Bonds of any
authorized denomination or denominations of the same series
and maturity for the same aggregate principal amount will be
issued in exchange therefor.
Section 4.03 Books of Registration. There shall be
kept by the Fiscal Agent sufficient books for the registra-
tion and. transfer of the Bonds and, upon presentation for
such purpose, the Fiscal Agent shall,under such reasonable
regulations as it may prescribe, register or transfer or
cause to be registered or transferred, on said register,
Bonds as provided herein.
Section 4.04 Negotiability, Registration and Transfer
of Bonds. The transfer of any Bond -may be registered only
upon such books of registration upon surrender thereof to the
Fiscal Agent, together with an assignment duly executed by
the Owner or his attorney or legal, representative, in form
satisfactory to the Fiscal Agent. Upon any such registration
of transfer, a new Bond or Bonds shall be authenticated and
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delivered in exchange for such transferred Bond, in the name
of the transferee; of any denomination or denominations
authorized by this Resolution, and in an aggregate principal
amount equal to the principal amount of such Bond or Bonds so
surrendered. In all cases in which Bonds shall be exchanged
or transferred, the Fiscal Agent shall authenticate at the
earliest practical time, Bonds in accordance with the
provisions of this Resolution. All Bonds surrendered in such
exchange or registration of transfer shall forthwith be
cancelled. The Legislative Body may make a charge to the
Owner for every such exchange or registration of transfer of
Bonds sufficient to reimburse it for any taxor other
governmental charge required to be paid with respect to such
exchange or registration of transfer. The Fiscal Agent shall
not be required to make such exchange or registration of
transfer of Bonds during thefifteen(15) days immediately
preceding any date upon which Bonds are to be selected for
redemption, nor shall the Fiscal Agent be required to
exchange or register the transfer of any Bond selected for
redemption.
Section 4.05 Authentication. Only such of the Bonds
as shall bear thereon a certificate of authentication sub-
stantially in the form below, manually executed by the Fiscal
Agent, shall be valid or obligatory for any purpose or
entitled to the benefits of this Resolution, and such certi-
ficate of the Fiscal Agent shall be conclusive evidence that
the Bonds so authenticated have been duly executed, authen-
ticated and delivered hereunder, and are entitled to the
benefits of this Resolution.
[FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION]
This' is one of the Bonds described in the Resolution of
Issuance of the City Council of the City of Santa Clarita.
First Trust National Assgc.
as Fiscal Agent
By:
Authorized Signatory
ARTICLE V.
REDEMPTION
Section 5.01 Terms of Redemption for
A. The provisions of redemption shall be as
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(A) Optional Redemption. Bonds of Series A may be
called before maturity and redeemed at the option of- the
Community Facilities District, from moneys deposited in the
Bond Redemption Fund, in whole or part on any Interest
Payment Date on or after May 15, 1993, in denominations of
$5,000 or any integral multiple thereof. In order to
exercise said option,.the Community Facilities District shall
deliver a written order, signed- by an Authorized
Representative, to the Fiscal Agent stating its election to
optionally redeem Bonds of Series A, the redemption date and
the principal amount of Bonds of Series A to be redeemed,
which amount shall be $5,000 or an integral multiple thereof.
Such written order shall be delivered to the Fiscal Agent at
least 75 days prior to the redemption date or such shorter
period as shall be acceptable to the Fiscal Agent. If less
than all of the Outstanding Bonds of Series A of any maturity
are called for redemption, such Bonds to be so redeemed shall
beselected by the Fiscal Agent in inverse order of maturity
and by lot within each maturity. The Bonds of Series A are
subject to optional redemption pursuant to this Section at a
redemption price equal to the principal amount of each Bond
of Series A or portion thereof to be redeemed, together with
accrued interest to the date. of redemption, plus a premium
equal to one-half of one percent (1/2 of 1%) of the principal
amount redeemed for. each year, or fraction of a year, from
the redemption date to the maturity date; provided, however,
that in no event shall such premium exceed two percent (2$)
of the principal amount redeemed.
(B) Mandatory Redemption. The Term Bonds of,Series A
are subject to mandatory redemption without premium, prior -to
maturity at a Redemption Price equal to the principal amount
thereof, plus accrued interest to the date of redemption.
The Term Bonds of Series A to be redeemed will be selected
by -the Fiscal Agent by lot. Term Bonds of Series A shall be
redeemed on November 15, in the principal amounts and years
as shown in the following redemption schedule:
Year
2008
2009
2010
2011
2012 (maturity)
Principal Redeemed
1,570,000
1,745,000
1,940,000
2,150,000
2,380,000
In the event of optional redemption of the
pursuant to- Section 5.01(A), the amount of
redemptions shown in the above schedules shall be
rata in each year.
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Term Bonds
mandatory
reduced pro
Section 5.02 Notice of Redemption.
(A) Notice by Mail. The Fiscal 'Agent shall, not less
than thirty (30) nor more than sixty (60) days prior to the
date. of redemption, mail by first class mail a notice,
postage prepaid, to (i) the respective registered Owners of
the Bonds or portions of Bonds to be redeemed at the
addresses appearing on the Bond registration books, (ii) the
Information Services, and (iii) the Securities Depositaries.
The notice of redemption shall: (a) state the redemption
date; (b) state the redemption price; (c) state the numbers
and dates of maturity of the Bonds to be redeemed, and in the
case of Bonds to be redeemed in part, the. respective
principal portions to be redeemed; provided, however, that
whenever any call includes all Bonds of a maturity the
numbers of the Bonds of such maturity need not be stated; (d)
require that such. Bonds be surrendered at the principal
corporate trust office of the Fiscal Agent in Los. Angeles,
California; and.(e) give notice that further interest on such
Bonds will not accrue after the designated redemption date.
(B) Failure to Receive Notice. The actual receipt of
notice of such redemption by the Owner of any Bond shall not
be a condition precedent to redemption, and failure to
receive such notice shall not affect the validity of the
proceedings for redemption of .such Bonds or -the cessation of
interest on the date fixed for redemption.
(C) Certificate of Receiving Notice. The notice or
notices required by this section shall be given on behalf of
the Community Facilities District by the Fiscal Agent. A
certificate of the Fiscal Agent that notice of redemption has
been given to the registered Owners of the Bonds as herein
provided shall- be conclusive as against all parties, and no
Owner whose Bond is called for redemption may object thereto,
or object to cessation of interest on the redemption date, by
any claim or showing that he failed to receive actual notice
of call and redemption.
Section 5.03 Effect of Redemption. When notice of
redemption has been given substantially as provided herein,
and when the amount necessary for the redemption of the Bonds
or portions thereof called for redemption is set aside for.
that purpose in the Bond Redemption Fund or the Term Bond
Payment Account, as the case may be, as provided for herein,
the Bonds or portions thereof designated for redemption shall
become due and payable on 'the date fixed for redemption
thereof; and upon presentation and surrender of said Bonds or
portions thereof at the place specified in the notice, of
redemption, said Bonds or portions thereof shall be redeemed
and paid at the redemption price out of the Bond Redemption
Fund or Term Bond Payment Account, as the case may be; and no
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interest will accrue on such Bonds or portions of Bonds
called for redemption after the redemption date specified in
said notice; and the Owners of such Bonds so called for
redemption after such redemption date shall look for the
payment of principal, interest and premium, if any, of such
Bonds or portions of Bonds only to said Bond Redemption Fund.
All Bonds redeemed shall be cancelled forthwith by the Fiscal
Agent and shall not be reissued. Upon surrender of Bonds
redeemed in part, a new Bond or Bonds of the same series,
interest rate and maturity shall be registered, authenticated
and delivered to the registered Owner at the expense of the
Community Facilities District, in the aggregate principal
amount of the unredeemed portion.
All unpaid interest payable at or prior to the date
fixed for. redemption shall continue to be payable to the
respective registered Owners of such Bonds or their- order,
but without interest thereon.
ARTICLE VI.
DEFAULT AND REMEDIES
Section 6.01 Events of Default and Remedies. Any one
or more of the following events constitutes an "event of
default":
(a) Default in the due and punctual payment of any
interest on any Bond when and as such interest shall become
due and payable;
(b) •Default its the due and punctual payment of the
principal of any,Bond when and as the same shall become due
and payable, whether at maturity as therein expressed, by
proceedings for redemption, or if default shall be made in
the redemption or. payment of any Term Bonds in the amounts
and at the times provided therefor;
(c) Default by the Community.Facilities.District in the
observance of any of the other covenants, agreements or
conditions contained in this Resolution, and such default
shall.have continued for a period of thirty (30) days follow-
ing written notice by the Fiscal Agent to the. Community
Facilities District; or
(d) The.filing by the Community Facilities District or
the City of a petition or answer seeking reorganization or
arrangement under the Federal bankruptcy laws or any other
applicable law of the United States of America, or the
approval by a court of competent jurisdiction of a petition,
filed with or without the consent of the Community Facilities
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District or the City seeking reorganizAtion under the Federal
bankruptcy laws or any other applicable law of the United
States of America, or, under the provisions of any other law
for the relief or aid of debtors, the assumption by any court
of competent jurisdiction of custody or control of the
Community Facilities District or City or of the whole or any
substantial part of the property of either of them.
Upon the occurrence and continuation of any event of
default, the Fiscal Agent or the .Owners of at least twenty-
five percent (25%) in aggregate principal amount of the Bonds
may proceed to exercise the following remedies:
(a) Mandamus, suit, action or proceeding, to compel the
Legislative Body, the Community Facilities District or the
City and their members, officers, agents or. employees to
perform each and every term, provision and covenant contained
in this Resolution and in the Bonds, and to require the
carrying out of any or all of such covenants and agreements
of the Community Facilities District and the fulfillment of
all duties imposed upon the Community Facilities District by
the Act;
(b) Suit, action or proceeding in equity, to enjoin any
acts or things which are unlawful, or the violation of any of
the Owners' rights; and
(c) Suit, action or proceeding in .any court of
competent jurisdiction to require the Community Facilities
District or City and its members and employees to account as
if it and they were of an express trust.
No such Owner shall have the right to institute any such
judicial proceeding pursuant to this section unless (a) such
Owner shall have previously given the Fiscal Agent written
notice of the occurrence ofan event of default hereunder;
(b) the Owners of at least twenty-five .percent (25%) in
aggregate principal amount of the Bonds then Outstanding
shall have made written request to the Fiscal Agent to
exercise the powers herein granted or to institute such
action, suit or proceeding in its own name; (c) such Owner or
said Owners shall have tendered to the Fiscal Agent indemnity
satisfactory to it against the costs, expenses and
liabilities to be incurred in compliance with such request;
and (d) the Fiscal Agent shall have refused or omitted to
comply with such request for a period of sixty days after
such written request shall have been received by, and said
tender of indemnity shall have been made to,. the Fiscal
Agent.
Nothing in this section or in any other provision of
this Resolution, or in the Bonds, shall affect or impair the
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obligation of the Community Facilities District,which is
absolute and unconditional, to pay the principal of and
interest on the Bonds to the respective Owners at the
respective Interest or Principal Payment Dates, as herein
provided," or affect or impair the right, which is also
absolute and unconditional, of such Ownersto institute suit
to enforce such payment by virtue of the contract embodied in
the Bonds.
No remedy conferred hereby upon the Fiscal Agent and any
Owner is intended to be. exclusive of any other remedy, but
each such remedy is cumulative and in addition to every other
remedy and may be exercised without exhausting and without
regard to any other remedy conferred by the Act or any other
law of the State. No waiver by the Fiscal Agent or any -Owner
of any event of default or breach of any duty or contract
shall affect any subsequent event of default or of any duty
or contract or shall impair any rights or remedies .on said
subsequent event of default or breach. No delay or omission
of the Fiscal Agent or any Owner to exercise any right or
power accruing. upon any default shall impair any such right
or power or shall be construed as' a.waiver of any such event
of default or acquiescence therein. Every substantive right
and every remedy conferred upon the Fiscal Agent or the
Owners may be enforced and exercised as often as may be
deemed expedient. In case any suit, action or proceeding to
enforce any right or exercise any remedy shall be brought or
taken and should said suit, action or procqeding be
abandoned, or be determined adversely to the Fiscal Agent or
the Owners, then, and in every such case, the Community
Facilities District.and the Fiscal Agent or the Owners shall
be restored to their former positions, rights and remedies as
if such suit, action or proceeding had not been brought or
taken.
ARTICLE VII.
RESOLUTION
Section 7.01 Amendments. This Resolution may - be
modified or amended at any time by supplemental resolutions
adopted by the Legislative Body:
(a) Without Owner Consent. Without the consent of
Owners, if the modification or amendment is for the purpose
of adding covenants and. agreements further to secure Bond
payment, to prescribe further limitations and restrictions on
Bond issuance, to surrender rights and privileges of the
Community Facilities District, to make modifications for the
purpose of curing any ambiguities, defects or inconsistent
provisions in this Resolution, to prescribe further
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limitations and procedures regarding the use of the proceeds
of the Bonds and the moneys held hereunder in order to comply
with Federal legislation or U.S. Treasury regulations now
pending or hereafter enacted or adopted, respectively
governing the tax exemption of interest on the Bonds, to
issue Bonds for the refunding of any Outstanding Bonds, to
issue Additional Bonds pursuant to Section 8.04, to increase
the Reserve Fund Requirement and to make any amendment
described in Section 8.18, provided that the modifications or
amendments do not adversely affect the rights of the Owners.
(b) With Owner Consent. For.any purpose with the
consent of the Owners.of sixty percent (60%) in principal
amount of all Bonds then Outstanding (exclusive of
disqualified Bonds owned by the Community Facilities District
or the.City as described below) provided, however, that no
modification or amendment shall, without the express consent
of all of the affected Owners, reduce the principal amount of
any Bond or any premium due thereon, reduce the interest rate
payable thereon, extend the maturity or the time for paying
interest thereon or the time for mandatory redemption, change
the monetary medium in which principal and interest is
payable, create an interest in the Special Taxes superior to
the interest created pursuant to this Resolution or reduce
the percentage of consent required for amendment or
modification.
Any act done pursuant to a modification or amend-
ment so consented to shall be binding upon the Owners of all
of the Bonds, and shall not be deemed an infringement of any
of the provisions of this Resolution or of the Act, whatever
the character of such act may be, and may be done and
performed as fully and freely -as if expressly permitted by
the terms of this Resolution, and after such consent relating
to such specified matters has been given, no Owners shall
have any right or interest to object to such action or in any
manner to question the propriety thereof or to enjoin or
restrain the Community Facilities District or any officer
thereof from taking any action pursuant thereto.
(c) Consent of Owners. If the Community Facili-
ties District shall desire to obtain such consent, a copy of
such supplemental resolution, together with a request..to the
Owners for their consent thereto, shall be mailed by the
Fiscal Agent to the Owners, but failure to 'mail copies of
such supplemental resolution and request shall not affect the
validity of the supplemental agreement when assented to as in
this Section provided.
Such supplemental resolution shall not become
effective unless there shall be filed with the Fiscal Agent
the written consents of the Owners of sixty percent (60%) in
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aggregate principal amount of the Bonds then Outstanding
(exclusive of Bonds disqualified as provided in this
Section). Any such consent shall be -binding upon the Owner
giving such consent and on any subsequent Owner (whether or
not such subsequent Owner has notice thereof).
After the Owners of the required, percentage of
Bonds shall have filed their consents to such supplemental
resolution, the Fiscal Agent shall mail a notice to the
Owners in the manner hereinbefore provided in this Section
for the mailing of such supplemental resolution, stating in
substance that such supplemental resolution has been - con-
sented -to by the Owners of the required percentage of Bonds
and will be effective as provided in this- Section (but
failure to mail copies of said notice shall not affect the
validity of such supplemental resolution or consents there-
to). A certificate by an appropriate officer of the. Fiscal
Agent, that notice has been given;as herein provided, shall
be conclusive as against all parties.
A record, consisting of the papers required by this
Section to be filed with the Fiscal Agent, shall be proof. of
the matters theeein stated until the contrary is proved.
Such supplemental resolution shall become effective upon the
mailing by the Fiscal Agent of such last-mentioned notice,
and.such supplemental resolution shall be deemed conclusively
binding upon the parties and the Owners.
(d) DisQualified Bonds. Bonds owned or held by or
for the account of the Community Facilities District or the
City or by any person directly or indirectly controlled or
controlled by, or under direct or indirect common control
with the Community Facilities District (except any Bonds held
in any pension or retirement fund) shall not be deemed
Outstanding for the purpose of any vote, consent, waiver or
other action or any calculation of Outstanding Bonds provided
for in this Resolution, and shall not be entitled to vote
upon, . consent to, or take any other action. provided for in
this Resolution.
The Fiscal Agent may require each Owner, before his
consent provided for in this Section 7.01 shall be deemed
effective, to certify as to whether the Bonds as to which
such consent is given are disqualified as provided in this
Section.
(e) Endorsement of Replacement of Bonds Delivered
After Amendments. The Community Facilities District may
determine that Bonds delivered after the effective date of
any action taken as provided in this Article shall bear a
notation, by endorsement or otherwise, in form approved by
the Fiscal Agent, as to such action. In that case, -.upon
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demand of the Owner of any Bond Outstanding at such effective
date and presentation of his Bond for such purpose at the
office of the Fiscal Agent, a suitable notation shall be made
on such Bond. The Community Facilities District may
determine that new Bonds, so modified as in the opinion of
the Community Facilities District is necessary to conform to
such amendment, shall be prepared, executed and delivered.
In that case, upon demand of the Owner of any Bond then
Outstanding, such new Bond shall be exchanged at the
principal corporate trust office of the Fiscal Agent in Los
Angeles, California, without cost to such Owner, for a Bond
of the same character then Outstanding, upon surrender of
such Bond.
(f) Amendatory Endorsement of Bonds. The provi-
sions of this Article shall not prevent any Owner from
accepting any amendment as to the particular Bonds held by
him, provided that due notification thereof is made on such
Bonds.
ARTICLE VIII. MISCELLANEOUS
Section 8.01 Ownership of Bonds. The person in whose
name any Bond shall be registered on the registration books
of the Fiscal Agent shall be deemed and regarded as the
absolute owner thereof for all purposes, and payment of the
principal and redemption premium, if any, of any such Bond,
and the interest on any such Bond, shall be made only to or
upon the order of the Owner thereof or his legal
representative. All such payments shall. be valid and
effectual to satisfy and discharge the liability upon such
Bond, including the redemption premium, if any, and interest
thereon, to the extent of the sum or sums so paid.
Section 8.02 Mutilated, Destroyed. Stolen or Lost
Bonds. In case any Bond secured hereby shall become mutila-
ted or be destroyed, stolen or lost, the Fiscal Agent shall
authenticate a new Bond of like maturity and principal amount
in exchange for and upon the surrender of such mutilated Bond
or in lieu of and in substitution for such Bond destroyed,
stolen or lost, upon the ..Owner's paying the reasonable
expenses and charges in connection therewith, and, in the
case of a Bond destroyed, stolen or lost, his filing with the
Fiscal Agent of evidence satisfactory to it and the Community
Facilities District that such Bond was destroyed, stolen or
lost, and of his ownership thereof, and furnishing the Fiscal
Agent and the Community Facilities District with indemnity
satisfactory to them.
Section 8.03 Cancellation of Bonds. All Bonds_ pur-
chased, paid or redeemed, either. at or before maturity,
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shall be cancelled upon the purchase, payment. or redemption
of such Bonds. All Bonds cancelled under any •of the
provisions of this Resolution shall be 'destroyed by the
Fiscal Agent and a certificate of destruction provided to the
Community Facilities District.
Section 8.04 Additional Bonds.
(A) Conditions for the Issuance of Additional Bonds.
The Community Facilities District may at any time after the
issuance and delivery of the initial series of Bonds
hereunder issue Additional Bonds payable from the Special
Taxes and secured by a lien and charge upon the Special Taxes
equal to and ,on a parity with the lien and charge securing
the Outstanding Bonds theretofore issued under the
Resolution, but only subject to the following specific
conditions, which are hereby made conditions precedent to the
issuance of any such Additional Bonds:
(1) The Community Facilities District shall be in
compliance with all covenants set forth in this Resolution
and a certificate of the Community Facilities District signed'
by an Authorized Representative to that effect shall have
been filed with the Fiscal Agent.
(2) The issuance of such Additional Bonds shall
have been duly authorized pursuant to the Act and all
applicable laws, and, the issuance of such Additional Bonds
shall have been provided for by a supplemental resolution
duly adopted by the Legislative Body which shall specify the
following:
(a) The purpose for which such Additional
Bonds are to be issued and the fund or funds.into which the
proceeds thereof are to be deposited, including a provision
requiring the proceeds of such Additional Bonds to be applied
solely for (i) the purpose of aiding in financing the Public
Facilities, including payment of all costs incidental to or
connected with such financing, and/or (ii) the purpose of
refunding any Bonds, including payment of all costs
incidental to or connected with such refunding;
(b) The authorized principal amount of such
Additional Bonds;
(c) The date and the maturity date or dates
of such Additional Bonds; provided that (i) principal and
sinking account payment dates may occur only on the Principal
Payment Date, (ii) all such Additional Bonds of like maturity
shall be identical inall respects, except as to number, and
(iii) fixed serial maturities or mandatory sinking account
installments, or any combination thereof, shall be
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established
to provide
for the
retirement of all
such
Additional
Bonds on or
before
their respective maturity
dates;
(d) The
Interest
Payment Dates for
such
Additional
Bonds; provided
that Interest Payment Dates
shall
be 'on the same semiannual
dates as
the Interest Payment
Dates
for Bonds of
Series A;
(e) The denomination and method of numbering
of such Additional Bonds;
(f) The redemption premiums, if any, and the
redemption terms, if any, for such Additional Bonds;
(g) The amount and due.date of each mandatory
sinking account installment, if any, for such Additional
Bonds;
(h) The amount, if any, to be deposited from
the proceeds of such Additional Bonds in any interest
account;
(i) The amount, if any, to be deposited from
the proceeds of such Additional Bonds into the Bond Reserve
Fund; provided that the Bond Reserve Fund shall be increased
at the time such Additional Bonds become Outstanding to an
amount equal to the Reserve Fund Requirement;
(j) The form of such Additional Bonds; and
(k) Such other provisions as are necessary or
appropriate and not inconsistent with the Resolution.
(3)- The Special Tax revenues . that would be
generated if the Special- Taxes were levied upon all of the
taxable property in the Community Facilities District, as
shown on the most recently equalized assessment roll, at the
maximum permitted Special Tax Rate in each fiscal year would
be in an amount equal to at least one hundred ten percent
(110%) of Annual Debt Service on all the then Outstanding
Bonds in each Debt Service Year.
For the purpose of the issuance of Additional
Bonds, additional taxable property as to which construction
has been completed or is in place, as of the date of, and as
may be shown by, a Consultant's Report shall be deemed to be
shown on the most recently equalized assessment roll.
In the event such Additional Bonds are to be
issued solely for the purpose of refunding and retiring any
Outstanding Bonds, interest and principal payments on the
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Outstanding Bonds to be so refunded and retired from the
proceeds of such AdditionalBonds being issued shall be
excluded from the foregoing computation of Annual Debt
Service. Nothing contained in the Resolution shall limit the
issuance of any Special Tax bonds of the Community Facilities
District.payable from the Special Taxes and secured by a lien
and charge on the Special Taxes if, after the issuance and
delivery of such Special Tax Bonds, none of the Bonds
theretofore issued hereunder which have been refunded will be
Outstanding.
(B) Procedure for the Issuance of Additional Bonds.
All of the Additional Bonds shall be executed for issuance
under the Resolution and delivered to the Fiscal Agent and
thereupon shall be delivered by the Fiscal Agent upon the
written request of the Community Facilities District signed
by an Authorized Representative, but only upon receipt -by the
Fiscal Agent of the following documents or money or
securities, all of such documents dated or certified, as the
case may be, as of the date of delivery of such Additional
Bonds by the Fiscal Agent (unless the Fiscal Agent shall
accept any of such documents bearing a prior date):
(1) A certified copy of the supplemental
resolution authorizing the issuance of such Additional Bonds;
(2) A written request of the Community Facilities
District signed by an Authorized Representative- as to the
delivery of such Additional Bonds;
(3) An opinion of counsel of recognized standing
in the field of law relating to municipal bonds to the effect
that (a) the Community Facilities District has the right and
power under the Act to adopt the Resolution and all
supplemental resolutions thereto, and the Resolution and all
such supplemental resolutions have, been duly and lawfully
adopted by the Community Facilities District, are in full
force and effect and are valid and binding upon the Community
Facilities District and enforceable in accordance with their
terms (except as enforcement may be limited by bankruptcy,
insolvency, reorganization and other similar laws relating to
the enforcement of creditors' rights), and no other
authorization for the Resolution or such supplemental
resolutions is required; (b) the Resolution creates the valid
pledge which it purports to create of the Special Taxes as
provided in the Resolution, subject to the application
thereof to the purposes and on the conditions permitted by
the Resolution; and (c) such Additional Bonds are valid and
binding special obligations of the Community Facilities
District, enforceable in accordance with their terms (except
as enforcement may be limited by bankruptcy, insolvency,
reorganization and other similar laws relating to the
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enforcement of creditors' rights) and the terms of the
Resolution and all .supplemental resolutions thereto and
entitled to the benefits of the Resolution and all such
supplemental resolutions and the Act, and such Additional
Bonds have been duly and validly authorized and issued in
accordance with the Act' and the Resolution and all such
supplemental resolutions;
(4) A certificate of the Community Facilities
District, signed by an Authorized Representative containing
such statements as may be reasonably necessary to show
compliance with the requirements of -the Resolution; and
(5) Such further documents, money and securities
as are required by the provisions of the Resolution and the
supplemental resolution providing for the issuance of such
Additional Bonds.
Section 8.05 Parity of Bonds. If Bonds are authorized
and issued in series, regardless of number, all Bonds shall
be on an equal parity and shall be entitled to share equally
in the proceeds of any levied Special Taxes, and no series,
subsequent or prior, shall have a priority. position with
regard to any authorized Special Taxes.
Section 8:06 Private Loan Bonds. No portion of the
proceeds of the Bonds is reasonably expected to be used
directly or indirectly to make or finance loans (other than
loans that enable the borrower to finance any governmental
tax or assessment of general application for an 'essential
governmental function or that are used to acquire or carry
nonpurpose obligations) to persons who are not exempt persons
so as to cause the Bonds to meet the private. loan financing
test of Section 141(c) -of the Internal Revenue Code of 1986,
as amended, and any regulations of the United States
Department of the -Treasury issued thereunder.
Section 8.07 Covenants. As long as the Bonds are Out-
standing and unpaid, the Community Facilities District shall
(through its proper members, officers, agents or employees)
faithfully perform and abide by all of the covenants, under-
takings and provisions contained in this Resolution or in any
Bond issued hereunder, including the following covenants and
agreements for the benefit of the Owners which are necessary,
convenient and desirable to secure the Bonds and will tend to
make them more marketable; provided, however, that said
covenants do not require the'Community Facilities District to
expend any funds other than the Special Taxes.
(A) The Community Facilities District will review the
public records of the Treasurer -Tax Collector of the County
of Los Angeles in connection with the collection of the
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Special Tax not later than July 1 of each year to determine
the amount of the Special Tax collected in the fiscal year
ending the preceding June 30, and if the amount so collected
is less than ninety-five percent (95%) of the amount of the
Special Tax levied in such fiscal year, it will institute
foreclosure proceedings not later than the succeeding October
1 as authorized by the Act in order to enforce the lien of
the delinquent installments of the Special Tax against each
separate lot or parcel of land in the Community Facilities
District, and will diligently prosecute and pursue such
foreclosure proceedings to judgment and sale.
Notwithstanding the foregoing, if the Community Facilities
District determines on the basis of .such review that any
single property owner in the Community Facilities District is
delinquent in excess of twenty-five thousand dollars
($25,000) in the payment of the Special Tax for such fiscal
year, then it will diligently institute, prosecute and pursue
such foreclosure proceedings in the time and manner. provided
herein against such property owner. The Community Facilities
District hereby pledges the proceeds of any foreclosure to
the payment of the Bonds or replenishment of the Bond Reserve
Fund for advances therefrom to the Bond Payment Fund.
Notwithstanding the foregoing, foreclosure proceedings may be
deferred if the Community Facilities District advances funds
to the Bond Reserve Fund to keep it continually at' the
Reserve Requirement.
(B) The Community Facilities District shall preserve
and protect the security of the Bonds and the rights of the
Owners and defend their rights against all claims and demands
of all persons. Until such time as an amount has been set
aside sufficient to pay Outstanding Bonds at maturity or to
the date of redemption if redeemed prior to maturity, plus
unpaid interest thereon and premium, if any, to maturity or
to the date of redemption if redeemed prior to maturity, the
Community Facilities District will faithfully perform and
abide by all of the covenants, undertakings and provisions
contained in this Resolution or in any Bond issued hereunder.
Without limiting the generality of the foregoing, the
Community Facilities District covenants and agrees to contest
by court action or otherwise (a) the assertion by any officer
of any government unit or any other person whatsoever against
the Community Facilities District that (i) the Act is
unconstitutional, (ii) the Special Tax is invalid, or (iii)
the Special Taxes cannot be paid by the Community Facilities
District for the debt service on the Bonds, or (b) any other
action which could affect the validity of the Bonds. or
diluting the security therefor, or (c) any assertion by the
United States of America or any department or agency thereof
or any other person that the interest received by the Owners
is includable in gross income for purposes of Federal income
tax laws.
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(C) The Community Facilities District will diligently
carry out and continue to completion with all practical
dispatch, the acquisition and construction of the Public
Facilities in accordance with the Act and the proceedings for
the formation of .the Community Facilities District and in a
sound and economical manner. The Public Facilitiesto be
acquired or constructed may be amended .as provided in. the
Act, but no amendment may be made which would substantially
impair the security of the Bonds or the rights of the Owners.
The Community Facilities District will maintain the. Public
Facilities in accordance with the customary and reasonable
maintenance and repair practices for such facilities.
(D) Except as otherwise permitted herein, the Community
Facilities District. will not issue any other obligations
payable, as to principal or interest, from the Special Taxes
which have,- or purport to have, any lien upon the Special
Taxes superior to or on a parity with the lien of the Bonds
herein authorized; provided, however, that nothing in this
Resolution shall prevent the Community Facilities District
from issuing and selling, pursuant to law, refunding bonds or
other refunding obligations payable from and having a first
lien upon the Special Taxes, if such refunding bonds or other
refunding obligations are issued for the purpose, and are
sufficient for the purpose of, paying all or any series or
portions thereof of the Bonds authorized by this Resolution
and then Outstanding.
(E) The Community Facilities District will duly and
punctually pay or redeem the principal of, mandatory sinking
fund payment with respect to, premium, if any, and interest
on each of the Bonds- issued hereunder on the date, at the
place and in the manner provided in said Bonds, solely from
the Special Taxes and.other funds as may be herein provided.
(F) The Legislative Body will each year levy the
Special Tax described in Ordinance No. CFD 92-1-1 to the
extent necessary and permitted by the Act and these proceed-
ings in order to at least yield one hundred percent (100%) of
Annual Debt Service .(including amounts to pay the
administrative costs of servicing the Bonds and to collect
the Special Tax) and to replenish the Bond Reserve Fund as
provided for herein, taking into account anticipated
delinquencies and any other funds of the Community Facilities
District available for such purposes and hereby pledges such
Special Taxes to repayment of the Bonds and replenishment of
the Bond Reserve Fund. Notwithstanding any provision of the
Act to the contrary, the Community Facilities District shall
collect the Special Taxes on the secured real property tax
bills of properties within the Community Facilities District.
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(G) The Community Facilities District will at all times
keep, or cause to be kept, proper and current books and
accounts (separate from all other records and accounts) in
which complete and accurate entries shall 'be made of all
transactions relating to the acquisition or construction of
the Public Facilities and the Special Taxes and other funds
herein provided for.
(H) The Community Facilities District will make no use
of the proceeds of the Bonds which will cause the Bonds to be
"arbitrage bonds" subject to Federal income taxation by
reason of Section 148 of the 'Internal Revenue Code of 1986,
as amended. To that end, so long as any of the Bonds are
Outstanding, the Community Facilities District; with respect
to the proceeds of the, Bonds, shall comply with all
requirements of said Section 148 and all regulations of the
United States Department of the Treasury issued thereunder,
to the extent that such requirements are; at the time,
applicable and in effect.
(I) Whenever any property in the Community Facilities,
District is owned by any governmental entity and leased by
such governmental entity to any private person or persons for
private use, the leasehold estate shall be assessed and taxed
in the same _manner as privately owned property.
(J) The Community Facilities District shall neither
authorize nor permit advance payment of any Special Taxes so
as to impair the security for the Bonds.
Section 8.08 Arbitrage Certificate. On the basis of
the fact, estimates and circumstances now in existence and in
existence -on the date of issue of the Bonds, as determined by
an Authorized Representative, an Authorized Representative
is hereby authorized to certify that it is not expected that
the proceeds of the Bonds will be used in a manner that would
cause the Bonds to be arbitrage bonds. Such certification
shall be delivered to the purchaser together with the Bonds.
Section 8.09 Compliance With 1986 Code. In order to
maintain the exclusion from gross income forpurposes 'of
federal income taxation of the interest on the Bonds, the
Community Facilities District covenants to comply with all
applicable requirements of the Internal Revenue Code of 1986,
as.amended, and all regulations, rulings and decisions in
connection therewith. In furtherance of this. covenant, the
Community Facilities District shall complywith the "Letter
of Instructions" provided to the Community Facilities.
District by bond counsel on the date of .delivery of the
Bonds, as such letter may be amended from time to time, as a
source of guidance for compliance. For such compliance there
is hereby created a fund to be held by the Fiscal Agent to be
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designated as the "Excess Earnings Tracking Account," which
shall be administered by the Fiscal Agent as directed by the
Community Facilities District in written instructions given
to the Fiscal Agent from time to time.
Section 8.10 Defeasance.
(A) Discharge of Resolution. If the Community
Facilities District shall pay and discharge all indebtedness
on all Bonds Outstanding in any one or more of the following
ways:
(1) by well and truly paying or causing to be paid
the principal of (including redemption premiums, if any)
and interest on all Bonds Outstanding, as and when the
same become due and payable; or
(2) by depositing with the Fiscal Agent, in trust,
at or before maturity, money which, together. with the
amounts then on deposit in the Bond Payment Fund, the
Bond Redemption Fund and the Bond Reserve Fund, is fully
sufficient to pay or redeem all Bonds Outstanding at or
before their respective maturity dates, including all
principal, interest and redemption premiums, if any; or
(3) by - delivering to the Fiscal Agent, for
cancellation by it, all Bonds.Outstanding; or
(4) by depositing with the Fiscal Agent, in trust,
Government Obligations in such amount. (as verified by a
report of an independent certified public accountant
retained by the- Community Facilities District) will,
together with the income or increment to accrue thereon
and any other .moneys of the Community Facilities
District made available for such purpose, be fully
sufficient to pay and discharge the, indebtedness on all
Bonds (including all principal, interest and redemption
premiums) at or before their respective maturity dates;
and if the Community Facilities District shall also pay or
cause to be paid all other sums payable hereunder by the
Community Facilities District, then and in that case, and
notwithstanding that any Bonds shall not have been
surrendered for payment, the pledge of the Special Taxes and
other funds provided for in this Resolution and all other
obligations of the Community Facilities District under this
Resolution shall cease, terminate and be completely
discharged, and the Owners of the Bonds not so surrendered
and paid shall thereafter be entitled to payment only out of
the money or Government Obligations deposited with the Fiscal
Agent as aforesaid for their payment; subject, however, to
the provisions of paragraph (C) below. The discharge of the
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obligations of the Community Facilities District under this
Resolution. shall be without prejudice to the rights of the
Fiscal Agent to charge for any fees and be reimbursed.by the
Community Facilities District for any expenditures which it
may thereafter incur in connection herewith.
(B) Discharge of Liability of Bonds. Upon the deposit
with the Fiscal Agent, in trust, at or before maturity, of
money or Government Obligations in the necessary amount to
pay or redeem all or a portion of the Outstanding Bonds
(whether upon or prior to their maturity or the redemption
date of such Bonds), provided that if such Bonds are to be
redeemed prior to the maturity thereof, notice of such
redemption shall have been given as in Article`V provided or
provision satisfactory to the Fiscal Agent shall have been
made for the giving of such notice, then all liability of the
Community Facilities District in respect of such Bonds shall
cease, determine and be completely discharged and the Owners
thereof shall thereafter be entitled only to payment out of
the money or Government Obligations deposited.with the Fiscal
Agent as aforesaid for their payment, subject, however, to
the provisions of paragraph (C) below.
(C) Payment of Bonds after 'Discharge of Resolution.
Notwithstanding any provisions of this Resolution, any moneys
deposited with the.Fiscal Agent in trust for the payment of
the principal of, or interest or premium on, any Bonds and
remaining unclaimed for four (4) years after the principal or
interest of all the Outstanding Bonds has become due and
payable (whether at maturity or upon call for redemption as
provided in this Resolution) shall then be repaid to the
Community Facilities -District upon its written request, and
the Owners of such Bonds shall thereafter be entitled to look
only to the Community Facilities District for payment
thereof, and all liability of the Fiscal Agent with respect
to such moneys shall thereupon cease; provided, however, that
before the repayment of such moneys to the Community
Facilities District as aforesaid, the Fiscal Agent shall (at
the written request and -cost of the Community Facilities
District) first, publish at least once in a financial
newspaper or journal a notice, in such form as may be deemed
appropriate by the Fiscal Agent, with respect to the Bonds so
payable -and not presented and with respect to the provisions
relating to the repayment to the Community Facilities
District of the moneys held for the payment thereof. In the
event of the repayment of any . such moneys . to the Community
Facilities District as aforesaid, the Owners of the Bonds in
respect of which.such moneys were deposited shall thereafter
be deemed to be general creditors of the Community Facilities
District for amounts equivalent to the respective amounts
deposited for the payment of such Bonds and so repaid to the
Community Facilities District (without interest thereon).
Section 8.11 Designation of Fiscal Agent. F;r4r
mr„cr NAH nnal A44nn is hereby designated Fiscal Agent with
respect to these proceedings and the Bonds to be issued. The
Fiscal Agent shall act as the agent and depository of the
Community Facilities District for the purpose of receiving
Special Taxes and other funds as provided in this Resolution,
to hold, allocate, use and apply such Special Taxes and other
funds as provided in this Resolution, and to perform such
other duties and powers of the Fiscal Agent as are prescribed
in this Resolution.
The Legislative Body may, in the absence of an event of
default, remove the Fiscal Agent initially appointed or any
successor thereto, and in such case shall forthwith appoint a
successor thereto. authorized to conduct and conducting
business in the State of California having a combined capital
and surplus of at least twenty-five million dollars
($25,000,000). Appointment of any successor Fiscal Agent
shall become effective upon written acceptance of its
functions and duties provided in this ,Resolution having been
executed and delivered to the.Community Facilities District.
Section 8.12 Authority to Levy Special Tax. The
Legislative Body, on behalf of the Community Facilities
District, shall levy the Special Tax described in Ordinance
No. CFD 92-1-1 to pay principal, interest and other periodic
costs of the Bonds described herein pursuant to the Act and
shall collect such Special Taxes on the secured real property
tax roll.
Section 8.13 Authority to Increase the Special Tax
Levy. In the event that a portion of.the property within the
Community, Facilities District shall become exempt, wholly or
partially,- from the .levy of the Special Tax specified in
Ordinance No. CFD 92-1-1, the Legislative Body shall, on
behalf of the Community Facilities District, increase the
levy to the extent necessary and permitted by law and these
proceedings upon the remaining property within the Community
Facilities District which isnot exempt in order to yield one
hundred percent (100%) of Annual Debt Service and any amounts
for replenishment of the Bond Reserve Fund and annual
administrative costs. The amount of the annual Special Tax
will be set on or before each July 1.
Section 8.14 Proceedings Constitute Contract. The
provisions of this .Resolution and of any other resolution
supplementing or amending this Resolution, shall constitute a
contract between the Community Facilities District and the
Owners and the provisions thereof shall be enforceable by any
Owner for the equal benefit and protection of all Owners
similarly situated by mandamus, accounting, mandatory injunc-
tion or any other suit, action or proceeding at law or in
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equity that is now or may hereafter be. authorized under the
laws of the State of California in any court of competent
jurisdiction. Said contract is made under the laws of the
State of California in any court of competent jurisdiction.
Section 8.15 Actions by Fiscal Agent as Attorney -in -
Fact. Any suit, action or proceeding which any Owner shall
have the right to bring to enforce any right or remedy
hereunder may be brought by the Fiscal Agent for the equal
benefit and protection of all Owners similarly situated
(notwithstanding any conditions upon the bringing of any such
action, suit or proceeding set forth in Section 6.01) and the
Fiscal Agent is hereby appointed (and the Owners of the Bonds
issued hereunder, by taking and owning the same, shall be
conclusively deemed so to have appointed it) -the true and
lawful attorney-in-fact of the respective Owners of the Bonds
for the purpose of bringing any such suit, action or proceed-
ing, and to do and perform any and all, acts and things for
and on behalf of the respective Owners of the Bonds as a
class or classes as may be necessary or advisable in the
opinion of the Fiscal Agent as such attorney-in-fact.
Section 8.16 CUSIP Numbers. CUSIP identification
numbers will be imprinted on the Bonds, but such numbers
shall not constitute a part of the contract evidenced by the
Bonds and no liability shall hereafter attach to the Communi-
ty Facilities District, the Fiscal Agent or any of the
officers or agents thereof because of or on account of said
numbers.
Section 8.17 Severability. If any covenant, agreement
or provision, or any portion thereof, contained in this
Resolution, or the- application thereof to any person or
circumstance, is held to beunconstitutional, invalid or
unenforceable, the remainder of this Resolution and the
application of any such covenant, agreement or provisions, or
portion thereof, to other persons or circumstances, shall be
deemed severable and shall not be affected, and this Reso-
lution and the Bonds issued pursuant hereto shall remain
valid and the Owners. shall retain all valid rights and
benefits accorded to them under this Resolution and the
Constitution and laws of the State of California. If the
provisions relating to the appointment and duties of a Fiscal
Agent are held to be unconstitutional, invalid or unenforce-
able, said duties shall be performed by the Treasurer.
Section 8.18 Modifications to Resolution. The bond
counsel of the Community Facilities District is hereby
authorized to make minor changes and modifications not of a
substantive nature to the terms and conditions as set forth
in this Resolution as requested by insurers or rating
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agencies, as it relates to the issuance and sale of the
Bonds.
Section 8.19 Liability of the Fiscal Agent. The
Fiscal Agent shall have no duty. or obligation whatsoever to
enforce the collection of or to exercise diligence in the
enforcement of the collection of funds assigned to it
hereunder or as to the correctness of any amounts received,
but its liability shall be limited to the proper accounting
for such funds as it shall actually receive.
The recitals of fact and all promises, covenants and
agreements herein and in the Bonds shall be taken as
statements, promises, covenants and agreements of the
Community Facilities District and the Fiscal.Agent assumes no
responsibility for the correctness of the same and makes no
representations as to the validity or sufficiency of this
Resolution or of the Bonds, and shall incur no responsibility
in respect thereof, other than in connection with the duties
or obligations herein or the Bonds assigned to or imposed
upon the Fiscal.Agent. The Fiscal Agent shall not be liable
in connection with the performance of its duties hereunder
except for its own negligence or default. The Agency may
provide for paying agents.
The Community Facilities District agrees to indemnify
the Fiscal Agent and hold it harmless against any loss,
liability or expense arising out of or in connection with the
performance of its duties, as Fiscal Agent, including without
limitation legal and other fees and expenses except' that the
Fiscal Agent shall not be indemnified against any such loss,
liability or expense arising out of its negligence or willful
misconduct. -The Fiscal Agent shall be under no obligation to
institute or defend any action, suit or legal proceeding in
connection herewith, unless first indemnified and held
harmless to its satisfaction in accordance with the
foregoing. Such indemnity shall survive discharge of the
Bonds.
The Fiscal Agent may consult with counsel, who may be
counsel to the Community Facilities District, with regard to
legal questions, and the opinion of such counsel shall be -
full and complete authorization and protection in respect of
any action taken or suffered by the Fiscal Agent in good
faith and in accordance therewith.
The Fiscal Agent shall undertake to perform such duties
as are specifically set forth herein and no.implied duties or
obligations shall be read into this Resolution against the
Fiscal Agent.
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The Community, Facilities District shall pay to the
Fiscal Agent compensation for all services performed -by it
hereunder in accordance with the fiscal agency agreement.
The Community Facilities District shall also pay to the
Fiscal Agent such reasonable expenses, charges and other
disbursements and those of its attorneys, agents and
employees incurred in and about the administration and the
performance of its duties hereunder.
The Fiscal Agent shall have the right to resign for any
reason upon thirty (30) days notice to the- Community
Facilities District. Upon receipt of this notice, the
Community Facilities District shall promptly appoint a
successor fiscal agent. If a successor fiscal agent is not
appointed by the Community Facilities District within'thirty
(30) days of its receipt of the notice, then Fiscal Agent may
petition a court of competent jurisdiction to appoint a
successor Fiscal Agent.
Section 8.20 Validation Action. The Special Bond
Counsel of the Community Facilities District is hereby
authorized to initiate and prosecute to judgment any judicial
proceedings in the name of the City, and the Community
Facilities District which are deemed necessary to establish
the validity of the formation of the Community Facilities
District, the levy of the Special Taxes, the issuance of the
bonds or any other matters.
PASSED and ADOPTED by the City Council of the City of
Santa Clarita, California at a regular meeting held on the
day of , 1992.
ATTEST:
CITY CLERK
CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA
ACTING AS.THE LEGISLATIVE BODY
OF COMMUNITY FACILITIES
DISTRICT NO. 92-1
MAYOR
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I.HEREBY CERTIFY that the foregoing resolution was duly
adopted by the City_ Council of the City of Santa Clarita,
California, at a regular meeting thereof, held on the
day of 1992, by the following vote of the Council -
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
CITY CLERK
(SEAL)
I, DONNA GRINDEY, City Clerk of the City of Santa
Clarita, California, DO HEREBY CERTIFY that the above and
foregoing -is a full, true and correct copy of Resolution No.
CFD 92-1- , and that the same has not been. amended or
repealed.
DATED: , 1992.
(SEAL)
City Clerk of the City of
Santa Clarita, California
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EXHIBIT "A"
FORM OF BOND
United States of America
State of California
Number
COMMUNITY FACILITIES DISTRICT NO. 92-1
OF THE CITY OF SANTA CLARITA (VALENCIA TOWN CENTER)
SPECIAL TAX BOND
SERIES A
INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP.:
OCTOBER 1, 1992
COMMUNITY FACILITIES DISTRICT NO. 92-1' of the City of Santa
Clarita (Valencia Town Center), County of Los Angeles, State
of California, duly organized and existing under and by
virtue of the "Mello -Roos Community Facilities Act of 198211,
as amended (Section 53311 and following of the Government
Code of the State of California) (the "Act"), hereby
acknowledges its indebtedness and promises to pay to
the sum of
or registered assigns,
Dollars
on the maturity date' stated above with interest thereon at
the rate per annum stated above, interest payable semi-
annually on the fifteenth (15th) days of May and November
(each, an "Interest Payment Date") of each and every year
commencing May 15, 1993, and continuing until this bond is
paid. Both principal of and any premium, if any, upon the
redemption of this bond prior to maturity are payable in
lawful money of the United States of America upon presen-
tation and surrender of this bond at the principal corporate
trust office of First Trust National Assoc (the "Fiscal Agent")
in Los Angeles, California. Interest shall be paid by check
mailed by first class mail on each Interest Payment Date to
the registered owner of record at his address as it appears
on the books of registration, as of the close of business on
the last day of the month preceding such Interest Payment
Date (hereinafter "Record Date").
Interest -on this bond shall be payable from the Interest
Payment Date next preceding the date of authentication
A-1
hereof, unless: (i) such date of authentication is an
Interest Payment Date, in which event interest will be
payable from such date .of authentication, (ii) such date of
authentication is after the close of business on the Record
Date and before such Interest Payment Date, in which event it
shall bear interest from such Interest Payment Date, or (iii)
unless such, date of authentication is on or prior to April
30, 1993, in which event interest will be payable from
October 1, 1992.
The bonds are special, limited obligations. of Community
Facilities District No. 92-1 of the City of Santa Clarita
(Valencia Town Center) (the "Community Facilities District")
payable from the annual special tax (the "Special Tax")
authorized under the Act and Ordinance No. CFD 92-1-1 adopted
by the City Council of the City of Santa Clarita, California
(the "City") on August 25, 1992, to be collected within the
Community Facilities District, except to the extent that
provision for payment has otherwise been made by the City
Council, as may be permitted by law. The bonds do not
constitute obligations of the City or the Community
Facilities District for which the City or the Community
Facilities District is obligated to levy or pledge, or have
levied or pledged, general or special taxation other than as
described hereinabove. The Community Facilities District has
covenanted for the benefit of the owners of the bonds that it
will commence and diligently pursue to completion appropriate
foreclosure actions. in the event of delinquencies of any
Special Tax installments.levied for payment of principal and
interest, as provided in the resolution of issuance for the
bonds.
REFERENCE,IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH ON THE REVERSE HEREOF WHICH SHALL FOR ALL PURPOSES HAVE
THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
This bond shall not become valid or obligatory for any
purpose.until the certificate of authentication and registra-
tion hereon endorsed shall have been dated and signed by the
Fiscal Agent.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED by the Community
Facilities District that all acts, conditions and things
required by law to exist, happen or to be performed precedent
to and in the issuance of this bond exist, have happened and
have been performed in due time, form and manner as required
by law, and that the amount of this bond, together with all
other indebtedness of said Community- Facilities District,
does not exceed any debt limit prescribed by the laws or
Constitution of the State of California.
IN WITNESS WHEREOF, the Community Facilities District has
caused this bond to be signed in facsimile by the Mayor and
A-2
City Clerk on behalf of the City Council of the City of Santa
Clarita, acting as the legislative body of the Community
Facilities District.
CERTIFICATE OF AUTHENTICATION'
AND REGISTRATION
This is one of the bonds
described in the Resolution of
Issuance of the City Council
of the City of Santa Clarita
DATED:
First Trust National Assoc..
as Fiscal Agent
By:
AUTHORIZED SIGNATORY
COMMUNITY FACILITIES
DISTRICT NO. 92-1
Mayor
City Clerk
PROVISIONS OF REDEMPTION
Optional Redemption. All bonds may be called before
maturity and redeemed at the option of the Community Facili-
ties District, from moneys deposited with the Fiscal Agent
in whole or part on any Interest Payment Date on or after May
15, 1993, in denominations of $5,000 or any integral multiple
thereof. The bonds are subject to redemption as directed by
the Community Facilities. District. If less than all of the
bonds outstanding are called for redemption,.such bonds to be
so redeemed shall be selected by the Fiscal Agent 'in inverse
order of maturity and by lot within each maturity, at a
redemption price equal to the principal amount of each bond
or portion thereof to be redeemed, together with accrued
interest to the date of redemption, plus a premium equal to
one-half of one percent (1/2 of 1%) of the principal amount
redeemed for each year, or fraction of a year, from the
redemption.date to the maturity date; provided, however, that
in no event shall such premium exceed two percent (2%) of the
principal amount redeemed.
Mandatory Redemption. The bonds maturing November 15,
2012, are subject to mandatory redemption without premium,
prior to maturity at a redemption price equal to the
principal amount thereof to be redeemed, plus accrued
interest to the date of redemption. The bonds to be redeemed
A-3
will be selected by the Fiscal Agent by lot. Bonds shall be
redeemed .on November 15, in the principal amounts and years
as shown in the following redemption schedule:
Year
2008
2009
2010
2011
2012 (maturity)
Principal Redeemed
1,570,000
1,745,000
1,940,000
2,150,000
2,380,000
PROVISIONS FOR REGISTRATION AND EXCHANGE
Each registration and transfer of registration of this bond
shall be entered by the Fiscal Agent in books kept,by it for
this purpose and authenticated by its manual signature upon
the certificate of authentication and registration endorsed
hereon. No transfer hereof shall be valid for any purpose
unless made by the registered owner, by surrender hereof and
by execution of the form of assignment endorsed. hereon, and
authenticated as herein provided. Upon any such registration
of transfer, a new bond or bonds shall be authenticated and
delivered in exchange for such. transferred bond, in the name
of the transferee, of any authorized denomination or denom-
inations, and in an aggregate principal amount equal to the
principal amount of such bond or bonds so surrendered. Bonds
may be exchanged for a like aggregate principal amount of
bonds of the same maturity, subject to the terms and condi-
tions provided in the Fiscal Agent's system of registration.
Upon such exchange, a new .registered bond or bonds of any
authorized denomination or denominations of the same maturity
will be authenticated in exchange therefor. The Fiscal Agent
shall require the bond owner requesting transfer or exchange
to pay any tax or other governmental charge required to be
paid with respect to such transfer or exchange.
The Fiscal Agent shall not be required to make such exchange
or registration of transfer of bonds during the fifteen (15)
days immediately preceding any date upon which bonds are to
be selected for redemption, nor shall the Fiscal Agent be
required to exchange or register the transfer of any bond
selected for redemption.
To the extent and in the manner permitted by the resolution
of issuance of the bonds, the provisions of said resolution
may be amended by the Community Facilities District with the
written consent of the owners of sixty percent (60%) in
aggregate principal amount of the bonds then outstanding and
may be amended without such consent under certain
circumstances, but in no event such that the interests of the
owners of the bonds are adversely affected.
A-4
ASSIGNMENT
For value received, the undersigned do(es) hereby sell,
assign and transfer unto ,
the within -mentioned registered bond and hereby irrevocably
constitute(s) and appoint(s) ,
attorney, to transfer the same on the books of the Fiscal
Agent with full power of substitution in the premises.
Date:
Signature Guaranteed by:
9/146/014040-0017/020
Notice: The assignor's signa-
ture to this assignment must
correspond with the name as it
appears upon the face of the
within bond in every parti-
cular, without alteration or
any change whatever.
A-5
EXHIBIT "B"
FORM OF PAYMENT REQUEST
PAYMENT REQUEST NO.
The Fiscal Agent is hereby requested to pay from the
Improvement Fund established by Resolution No. CFD 92-1-4,
adopted on July 14, 1992 and as amended on , 1992
(the "Resolution"), to the, person or corporation designated
below as Payee, the sum set forth below such designations, in
payment of a portion of the (Costs of Issuance/costs of
acquisition and construction) as provided in Section 3.02 (C)
of the Resolution.
Payee:
Amount:
Description of Cost of Issuance:
It is hereby certified:
(a) That the amount of the obligation shown above has
been properly incurred and is a proper charge against the
Improvement Fund and has not been the basis of any previous
requisition or disbursement; and
(b) That there has -not been filed with or served upon
the Community Facilities -District notice of any lien, right
to lien or attachment upon, stop notice or claim affecting
the right to receive payment of, any of the moneys payable to
any of the persons named in such requisition, which is not
released or will not be release simultaneously with the
payment of such obligation, other than materialmen's or
mechanic's liens accruing by operation of law.
Dated:
9/146/014040-0017/020
Authorized Representative
FM