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HomeMy WebLinkAbout2002-08-27 - RESOLUTIONS - CFD 2002 1 VALENCIA CENTER (2)RESOLUTION NO. CFD 02-1-2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DECLARING ITS INTENTION TO INCUR BONDED INDEBTEDNESS IN THE AMOUNT OF NOT TO EXCEED $18,500,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2002-1 (VALENCIA TOWN CENTER) WHEREAS, in 1992, in order to finance certain public improvements related to a proposed mall, the City Council (the "City Council") of the City of Santa Clarks, California (the "City") formed Community Facilities District No. 92-1 of the City of Santa Clarita (Valencia Town Center) (the "Existing CFD"), encompassing land of a proposed mall, pursuant to terms and provisions of the Mello -Roos Community Facilities Act of 1982, as amended (the "Act"); and WHEREAS, on October 22, 1992, pursuant to the Act and Resolution No. CFD 92-1-4, as amended on September 22, 1992, the Existing CFD issued special tax bonds (the "1992 Bonds") in the original principal amount of $20,000,000 secured by special taxes to be paid by the property owners within the Existing CFD; and WHEREAS, the City has heretofore adopted Resolution No. CFD 02-1-2 stating the City Council's intention to form City of Santa Clarita Community Facilities District No. 2002-1 (Valencia Town Center) (the "CFD"), pursuant to the Act to optionally redeem the 1992 Bonds, currently outstanding in the principal amount of $15,990,000, and to extinguish the special tax lien associated with the Existing CFD (the "Project"); and WHEREAS, in order to finance the Project, including the redemption of the 1992 Bonds, it is necessary to incur bonded indebtedness in the amount of not to exceed $18,500,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53340 et seq. of the Act on all property within the CFD, other than those properties exempted from taxation as provided in the rate and method of apportionment attached as Exhibit A to Resolution No. CFD 02-1-2; NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve, determine and order as follows: Section 1. The above recitals are true and correct. Section 2. It is necessary to incur bonded indebtedness within of the proposed CFD in the amount of not to exceed $18,500,000 to finance the costs of the Project, including the redemption of the 1992 Bonds. Section 3. The indebtedness will be incurred for the purpose of financing the costs of Project, including the redemption of the 1992 Bonds and the extinguishment of the special tax lien of the Existing CFD, and the financing of the costs associated with the issuance of the bonds and all other costs necessary to finance the Project which are permitted to be financed pursuant to the Act. The 1992 Bonds were issued to equip, modify, maintain, Resolution No. CFD 02-1-2 Page 2 rehabilitate, acquire, relocate, construct or otherwise provide certain public facilities for the development of the mall, and all necessary equipment and property therefor. Section 4. It is the intention of the City Council to authorize the sale of bonds in a single series, in the maximum aggregate principal amount of not to exceed $18,500,000 at a maximum interest rate not in excess of 12 percent per annum or such rate not in excess of the maximum rate permitted by law at the time the bonds are issued. The term of the bonds shall be determined pursuant to a resolution of the City Council authorizing the issuance of the bonds, but such term shall in no event exceed 40 years or such longer term as is then permitted by law. Section 5. A public hearing (the "Hearing") on the proposed debt issue shall be held October 8, 2002 at 6:00 p.m. or as soon thereafter as practicable, at the chambers of the City Council of the City of Santa Clarita, 23920 Valencia Boulevard, Santa Clarita, California 91355. Section 6. At the Hearing at the time and place set forth above, any interested persons, including all persons owning land or registered to vote within the proposed CFD, may appear and be heard at the Hearing. Section 7. The proposition to incur bonded indebtedness in the maximum principal aggregate amount of not to exceed $18,500,000 shall be submitted to the qualified electors of the CFD. A special community facilities district election shall be conducted on October 8, 2002. The special election shall be conducted by hand delivered ballot election. The ballots shall be returned to the office of the election officer no later than 11:00 o'clock p.m. on October 8, 2002. Section 8. The City Clerk is hereby directed to publish a copy of this resolution, which shall serve as notice ( Notice") of the Hearing and the special bond election, pursuant to Section 6061 of the Government Code in a newspaper of general circulation in the proposed CFD. Section 9. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable in order to accomplish the purposes of this Resolution. Section 10. This Resolution shall take effect immediately upon its adoption. Resolution No. CFD 02-1-2 Page 3 PASSED, APPROVED AND ADOPTED this 27`" day of August, 2002. i ATTEST: CITY CLERK STATE OF,CALIFORNIA ) COUNTY OF LOS ANGELES )as. CITY OF SANTA CLARITA ) CITY OF SANTA CLARITA I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 27th day of August, 2002, by the following vote: AYES: COUNCILMEMBERS: Smyth, Weste, McLean, Kellar, Ferry NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None a CITY CLERK Exhibit A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO. 2002-1 OF THE CITY OF SANTA CLARITA (VALENCIA TOWN CENTER) A Special Tax shall be levied and collected in Community Facilities District No. 2002-1 of the City of Santa Clarita ("CFD No. 2002-1 ")each Fiscal Year, in an amount determined by the City Council of the City of Santa Clarita acting in its capacity as the legislative body of CFD No. 2002- 1 through the application of the procedures described below. All of the real property in CFD No. 2002-1, unless exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms used herein shall have the following meanings: "Acreage" or "Acre" means that acreage shown on the Assessor's Parcel Map for each Assessor's Parcel. In the event that the Assessor's Parcel Map does not indicate acreage, the Acreage for any Assessor's Parcel shall be that shown or determined from the applicable condominium plan, final map or parcel map. For Condominiums, the Acreage applicable to each Condominium shall be determined by allocating the acreage of the underlying lot on which the Condominiums are or are to be constructed in proportion to each such Condominium's building square footage. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2002-1: the costs of computing the Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Taxes; the costs of remitting the Special Taxes to the fiscal agent or trustee for any Bonds; the costs of the fiscal agent or trustee (including its legal counsel) in the discharge of the duties required of it under any Indenture; the costs of the City or designee in complying with the disclosure requirements of applicable federal and state securities laws and the California Government Code (including the Act), including public inquiries regarding the Special Taxes; the costs associated with the release of funds from any escrow account (to the extent not paid from other sources); the costs of the City or designee related to an appeal of the Special Tax and an allocable share of the salaries and an allocable portion of City's overhead costs relating to the foregoing; the costs of the City or designee related to any rebate calculations for CFD No. 2002-1; the fees and expenses of CID No. 2002-1 associated with a prepayment as calculated by the CFD Administrator including, but not limited to, the costs of computing the prepayment, the costs of removing any Special Taxes from the Assessor's Roll, the costs of redeeming the Bonds, and the costs of recording and publishing any CFD No. 2002-1 Page 1 of 6 August 21, 2002 �,.. notices to evidence the prepayment and the redemption of Bonds; the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in CFD No. 2002-1. Administrative Expenses shall also include amounts advanced by the City for any administrative purposes of CFD No. 2002-1. "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 Assessor of the County designating parcels by Assessor's Parcel number. "Bonds" means any bonds or other indebtedness (as defined in the Act), whether in one or more series, secured by the levy of Special Taxes within CFD No. 2002-1. "CFD Administrator" means an official of the Council, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of Special Taxes. "City" means the City of Santa Clarita, California. "Class 1 Property" means all property located within the boundaries of CFD No. 2002-1, exclusive of Assessor' s Parcel 2861-058-024 or its successor(s), which is not exempt from the Special Tax pursuant to Section E below. "Class 2 Property" means Assessor's Parcel 2861-058-024 or its successor(s). "Condominium" means a separate interest or unit meeting the statutory definition of a condominium contained in the California Civil Code, Section 1351, and for which a condominium plan has been recorded pursuant to California Civil Code, Section 1352. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2002-1. "County" means the County of Los Angeles, California. "Exempt Property" means all property located within the boundaries of CFD No. 2002-1 which is exempt from the Special Tax pursuant Section E below. "Fiscal Year" means the period starting on each July 1 and ending on the following June 30. �►+ "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. CFD No. 2002-1 Page 2 of 6 August 21, 2002 "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 on any Assessor's Parcel. "Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year: (1) to pay the Administrative Expenses, (2) to pay debt service on any issued and outstanding Bonds, (3) to replenish any reserve funds attributable to CFD No. 2002-1 and established in connection with the Bonds, (4) to pay the costs of remarketing, credit enhancement and liquidity facility fees (including such fees for instruments that serve as the basis of a reserve fund in lieu of cash related to any Bonds), (5) to pay for any delinquent Special Taxes or reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year, and less (6) available funds as directed under the Indenture. B. CLASSIFICATION OF PROPERTY Each Fiscal Year, all property within CFD No. 2002-1 shall be classified as either Class 1 Property, Class 2 Property, or Exempt Property. C. MAM UM SPECIAL TAX The Fiscal Year 2002-2003 Maximum Special Tax for each Assessor's Parcel classified as Class 1 Property shall be $27,003 per Acre. The Fiscal Year 2002-2003 Maximum Special Tax for Class 2 Property shall be $181,$88 per Acre. The Maximum Special Tax for Class i Property and Class 2 Property shall increase at an annual rate of two percent (2.0%) commencing with Fiscal Year 2003-2004. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-2003 and for each following Fiscal Year, the Council shall determine 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 in equal percentages on each Assessor's Parcel of Class 1 Property and Class 2 Property, up to the Maximum Special Tax for Class 1 Property and up to fourteen and eighty-five hundredths percent (14.85 %) of the Maximum Special Tax for Class 2 Property; and Second: If additional Special Taxes are needed to satisfy the Special Tax Requirement after the fust step has been completed, the Special Tax shall be increased on Class 2 Property up to the Maximum Special Tax for such property as set forth in Section C above. CFD No. 2002-1 Page 3 of 6 August 21, 2002 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 property owner who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may submit a written appeal to CFD No. 2002-1. The Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the annual levy of the Special Tax and any property owner appeal. The CFD Administrator shall review the appeal and any errors in the amount of the Special Tax levied shall be appropriately modified. Any decision of the Council shall be fmal and binding as to all persons. 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. 2002-1 may separately bill to and collect the Special Tax from each owner(s) of record of Class 1 Property and Class 2 Property. H. PREPAYMENT OF SPECIAL TAX 1. Prepayment in Full The Maximum Special Tax for any Assessor's Parcel may be prepaid and permanently satisfied as described herein, provided that a prepayment may be made only if at the time of the prepayment there are no delinquent Special Taxes with respect to such Assessor's Parcel and all other Assessor's Parcels which are under the same ownership and located within CFD No. 2002-1. An owner of an Assessor's Parcel intending to prepay the Special Tax shall provide the CFD Administrator with written notice of intent to prepay. Within 75 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel and the date through which the amount any such prepayment shall be valid. The "Prepayment" shall be an amount equal to the sum of (1) Principal, (2) Premium, (3) Defeasance, and (4) Fees, minus the Reserve Fund Credit -and the �•. Capitalized Interest Credit, where the terms "Principal," "Premium," "Defeasance," "Fees," "Reserve Fund Credit," and "Capitalized Interest Credit" have the following meanings: CFD No. 2002-1 Page 4 of 6 August 21, 2002 "Principal" means the principal amount of Bonds to be redeemed and equals the quotient derived by dividing (a) the applicable Maximum Special Tax for the Assessor's Parcel intending to prepay by (b) the corresponding Fiscal Year aggregate special taxes for CFD No. 2002-1 commencing with $1,240,464 in Fiscal Year 2002-03 and escalating annually by two percent (2.0%) thereafter (and excluding from (b) any Maximum Special Taxes for Assessor's Parcels which have fully prepaid the Maximum Special Tax), and multiplying the quotient by the principal amount of Bonds issued and outstanding. "Premium" means an amount equal to the Principal multiplied by the applicable redemption premium, if any, for the Bonds so redeemed with the proceeds of any such Prepayment. "Defeasance" means an amount equal to the amount needed to pay interest on the Principal to be redeemed until the earliest redemption date for the outstanding Bonds less the amount that is estimated to be received from the reinvestment of the difference of the Prepayment and the Fees. Credit shall also be given for any Special Tax heretofore paid and which has not yet been utilized to pay the Special Tax Requirement. "Fees" equal the fees and expenses of CFD No. 2002-1 directly related to the Prepayment. "Reserve Fund Credit" shall equal the lesser of (i) the expected reduction in the applicable reserve fund requirement (as defined in the Indenture), if any, following the redemption of Bonds from proceeds of the prepayment or (ii) the amount derived by subtracting the new reserve fund requirement in effect after the redemption of Bonds from the balance in the reserve fund (as such term is defined in the Indenture) on the prepayment date, but in no event shall such amount be less than zero. "Capitalized Interest Credit" means the pro rata amount of capitalized interest allocable to the Assessor's Parcel intending to prepay the Special Tax, if any, determined by multiplying the quotient computed when determining Principal by the amount of capitalized interest remaining after the next succeeding interest payment. The sum of the amounts calculated in the preceding steps shall be paid to CFD No. 2002-1 and shall be used to pay and redeem Bonds in accordance with the Indenture and to pay the Fees. Upon the payment of such Prepayment to CFD No. 2002-1, the obligation to pay the Special Tax for such Assessor's Parcel shall be deemed to be permanently satisfied, the Special Tax shall not be levied thereafter on such Assessor's Parcel, and the CFD Administrator shall cause notice of cessation of the CFD No. 2002-1 Page 5 of 6 August 21, 2002 Special Tax for such Assessor's Parcel to be recorded within 30 working days of receipt of the Prepayment. 2. Prepayment in Part The Maximum Special Tax for any Assessor's Parcel may be prepaid in part as described herein, provided that a prepayment may be made only if at the time of the prepayment there are no delinquent Special Taxes with respect to such Assessor's Parcel and all other Assessor's Parcels which are under the same ownership and located within CFD No. 2002-1. An owner of an Assessor's Parcel intending to partially prepay the Special Tax shall provide the CFD Administrator with written notice of intent to prepay. Within 75 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel and the date through which the amount any such prepayment shall be valid. The amount of the prepayment shall be computed pursuant to Section H.I above substituting the portion of the Maximum Special Tax to be prepaid for the Maximum Special Tax applicable to the Parcel when computing Principal. The CFD Administrator shall cause a notice of reduction of the Special Tax for such Assessor's Parcel to be recorded within 30 working days of receipt of the prepayment. Notwithstanding the foregoing, no prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied in CFD No. 2002-1 pursuant to Section D after the proposed prepayment is at least the sum of (i) the estimated Administrative Expenses and (ii) one hundred ten percent (110 %) of the annual debt service for the Bonds, taking into account the Bonds to remain outstanding after such prepayment. K:\Caents2\.SANTACLARTrA\bIELLO\Valencia TC\RMA\Valencia TC RMA FINAL.doc CFD No. 2002-1 Page 6 of 6 August 21, 2002