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Resolution Number 08-08-05-06RESOLUTION NO. 08-08-05-06 ' RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $7,500,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2008-1 OF THE CITY OF SAN JUAN CAPISTRANO (VENTANAS BUSINESS CENTER) WHEREAS, the City Council of the City of San Juan Capistrano (the "City Council') upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2008-1 of the City of San Juan Capistrano (Ventanas Business Center) (the "Community Facilities District No. 2008-1") pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act'), as amended, pursuant to Resolution No. 08-08-05-05. adopted by the City Council on the date hereof to finance (1) the purchase, construction, expansion, improvement or rehabilitation of certain real or other tangible property described in Exhibit "A" hereto and incorporated herein by this reference in lieu of the payment of related impact fees related to the Ventanas Business Center Project and (2) payment of acquisition costs of certain real or other tangible property described in Exhibit "A" hereto and incorporated herein by this reference ((1) and (2), collectively, comprising the "Facilities"), which Facilities have a useful life of five years or longer, and (3) the incidental expenses to be incurred in connection with financing the Facilities and ' forming and administering the District (the "Incidental Expenses"); and WHEREAS, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $7,500,000; and WHEREAS, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $7,500,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Community Facilities District No. 2008-1, other than those properties exempted from taxation in the rate and method of apportionment set forth in Exhibit "C" to Resolution No. 08-08-05-05; THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. It is necessary to incur bonded indebtedness within the boundaries of proposed Community Facilities District No. 2008-1 in an amount not to exceed $7,500,000, to finance certain of the costs of the Facilities and Incidental Expenses, as permitted by the Act and federal tax law. ' SECTION 3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the Page 1 of 4 08-05-2008 funding of reserve funds for the bonds, the financing of costs associated with the — issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act. SECTION 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $7,500,000, and at a maximum interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council authorizing the issuance of the bonds of such series, but such term shall in no event exceed 30 years from the date of issuance of the bonds of such series, 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 at 7:00 p.m. or as soon thereafter as practicable, on September 16, 2008, at the City Council Chambers, 32400 Paseo Adelanto, San Juan Capistrano, California. SECTION 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2008-1, may appear and be heard. SECTION 7. The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2008-1. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2008-1 at least 15 days prior to the Hearing. Page 2 of 4 08-05-2008 STATE OF CALIFORNIA ) ' COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 08-08-05-06 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the P ' day of August 2008, by the following vote: AYES:I q /ICOUNCIL MEMBERS: Allevato, Hribar, Uso and Mayor Soto NOES: COUNCIL MEMBER: Mayor pro tem Nielsen AOSE T COUNCIL MEMBER: None ity J Page 3 of 4 08-05-2008 EXHIBIT A Types of Facilities and Incidental Expenses' to Be Financed by Community Facilities District No. 2008-1 [August 5, 20081 Phase I Phase 2 Description of Fees and Improvements (a) Tota[ 102,100 SF 123,400 SF Offsite Improvements Calle Arroyo Street Improvements $ 40,329 $ 40,329 $ Multi Purpose Trail 121,168 121,168 Estimated Soft Costs & Contingency 52.865 52.865 Total Offsite Improvements $ 214,362 $ 214,362 $ - On -Site Improvements: 8" Well Fill Line $ 71,906 $ 71,906 $ - 12" Water Line 26,123 26,123 - 18" Sewer Line 173,072 173,072 - Estimated Soft Costs & Contingency 88,749 88,749 Total On -Site Improvements $ 359.850 $ 359,850 $ - Water and Sewer Fees: Sewer Capacity Fee & Connection Fee $ 625,086 S 283,021 $ 342,065 Water Capital Improvement Charge 108,240 48,974 59,266 Water Storage Fee 162,360 73,461 88,899 Water Capacity Charge 142,065 64,278 77,787 Meter Installation Fee 3,615 2,169 1,446 Non -Domestic Water Fee 172.011 172,011 Total Water and Sewer Fees $ 1,213,377 $ 643,914 $ 569,463 City Impact Fees: Capistrano Circulation Fee $ 1,443,200 $ 653,440 $ 789,760 Estimated Traffic Fairshare Fees 360,000 360,000 - Agricultural Preservation Fee 20,000 20,000 Drainage Area Fee 23,751 23,751 - Total Impact Fees $ 1.846.951 $ 1,057,191 $ 789,760 Project Management (10% of Hard Costs) $ 43.260 $ 43.260 $ - Subtotal Fees and Improvements $ 3,677,800 $ 2,318,577 $ 1,359.223 10% Proposed Community Wide Facilities Charge $ 367.780 $ 231.858 $ 135,922 Total CFD Fees and Improvements $ 4.045.580 $ 2.550.435 $ 1.495.145 Footnotes: (a) Amounts represent estimates only and are subject to change. Additionally, the proposed phasing of development described herein is conditioned upon approval by the City Council of a modification to Condition 474b of Architectural Control 07-01. If modification is not approved, or is approved at a level different than described herein, the phasing of the estimated Facilities costs will be adjusted to conform to Condition 474b, or the approved modification, as applicable. A-1 DOC SOC/ 1285380v7/022658-0023