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Resolution Number 08-09-16-03RESOLUTION NO. 08-09-16-0 3 rA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2008-1 OF THE CITY OF SAN JUAN CAPISTRANO (VENTANAS BUSINESS CENTER) DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $7,500,000 AND CALLING AN ELECTION THEREON WHEREAS, on August 5, 2008 the City Council (the "City Council") of the City of San Juan Capistrano (the "City") adopted its Resolution of Intention to Establish CFD No. 2008-1 ('Resolution of Intention to Establish CFD") stating its intention to form Community Facilities District No. 2008-1 of the City of San Juan Capistrano (Ventanas Business Center) ("Community Facilities District No. 2008-1" or the "District') pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the "Act'); and WHEREAS, on August 5, 2008, the City Council also adopted its Resolution of Intention to Incur Indebtedness of CFD No. 2008-1 ('Resolution of Intention to Incur Indebtedness" and, together with the Resolution of Intention to Establish CFD No. 2008- 1, the 'Resolution of Intention") stating its intention to incur bonded indebtedness within proposed Community Facilities District No. 2008-1 in an amount not to exceed ' $7,500,000, to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of the facilities identified in Attachment "B" to Resolution of Intention to Establish CFD and incorporated herein by this reference (collectively, the "Facilities") and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District, as identified in Attachment "B" to Resolution of Intention to Establish CFD (the "Incidental Expenses"); and WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2008-1 and to incur bonded indebtedness within Community Facilities District No. 2008-1; and WHEREAS, on September 16, 2008, this City Council held a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2008-1, issue bonds of the District to pay for the Facilities and Incidental Expenses and authorize the rate and method of apportionment ('Rate and Method") of a special tax to be levied within Community Facilities District No. 2008-1 for the purposes described in Resolution of Intention to Establish CFD; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2008-1, the levy of a special tax and the issuance of bonds by the District to pay for the cost of the proposed ' Facilities and Incidental Expenses were heard and a full and fair hearing was held; and Page 1 of 3 09/16/2008 DOCSOC/ 1297880v2/022658-0023 WHEREAS, subsequent to such hearing, and on the date hereof, the City - Council adopted its Resolution Establishing Community Facilities District No. 2008-1 (the "Resolution of Formation"); and WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness of the District, to declare the purpose for said debt, and to authorize the submittal of certain propositions to the qualified electors within the District, being the landowners within the District as of the close of the public hearing, all as authorized and required by law. NOW, THEREFORE, the City Council of City of San Juan Capistrano, acting in its capacity as the legislative body of Community Facilities District No. 2008-1, hereby finds, determines, resolves, and orders as follows: SECTION 1. It is necessary to incur bonded indebtedness of Community Facilities District No. 2008-1 in a maximum aggregate principal amount not to exceed $7,500,000. SECTION 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities, as described in the Resolution of Intention and the Resolution of Formation, financing the Incidental Expenses, and carrying out the powers and purposes of Community Facilities District No. 2008-1, including, but not limited to, financing the -- costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act. SECTION 3. The whole of the property within the District, other than property exempted from the special tax pursuant to the provisions of the Rate and Method for the District attached to the Resolution of Formation as Attachment "B", shall pay for the bonded indebtedness pursuant to the levy of the special tax within the District to the extent authorized by the Resolution of Formation. SECTION 4. The maximum term the bonds to be issued shall run before maturity shall be 40 years. SECTION 5. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof. SECTION 6. The bonds may bear a variable or fixed interest rate, provided that such variable rate or the fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act, or any other applicable provision of law limiting the maximum --- interest rate on the bonds. Page 2 of 3 09/16/2008 DOC SOC/1297880v2/022658-0023 SECTION 7. Pursuant to Section 53351 of the Act, a special election is hereby ' called for Community Facilities District No. 2008-1 on the proposition of incurring the bonded indebtedness for the District. The proposition relative to incurring bonded indebtedness shall be in the form set forth in Attachment "A" of the Resolution of Formation. The election in the District on the proposition of incurring bonded indebtedness shall be consolidated with the election on the propositions to approve the levy of a special tax within the District and to establish an appropriations limit for the District, which propositions shall be in the forms set forth in Attachment "A" of the Resolution of Formation. I I SECTION 8. The date of the special elections for Community Facilities District No. 2008-1 shall be on September 16, 2008, or such later date as is consented to by the City Clerk and the landowners within the District and the polls shall be open for said election if conducted on a date other then September 16, 2008 at 7:00 p.m. or such later time or date as is consented to by the landowners in the District and the City Clerk. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the elections following the adoption of the Resolution of Formation and this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 7:00 p.m. on the election day; provided the elections shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act or such later time or date as is consented to by the landowners in the District and the City Clerk. It is hereby found based on information provided by the Registrar of Voters of the County of Orange that there are fewer than 12 registered voters within the territory of Community Facilities District No. 2008-1 and, pursuant to Section 53326 of the Act, the ballots for the special elections shall be distributed in person or by mail with return postage prepaid to the landowners of record within Community Facilities District No. 2008-1 as of the close of the September 16, 2008 hearing regarding the formation of the District. Each landowner shall have one vote for each acre or portion thereof that he or she owns within Community Facilities District No. 2008-1, as provided in Section 53326 of the Act. PASSED, APPROVED, AND ADOPT this 6" f September 2008. ofo 0 2 JOE SO -VO, MAYOR ATTEST: R. MONAHAN, CITY CLERK DOCSOC/ I297880v2/022658-0023 Page 3 of 3 09/16/2008 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. 08-09-16-03 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 16'" day of September 2008, by the following vote: AYES: COUNCIL MEMBERS: Allevato, Hribar, Uso, and Mayor Soto NOES: COUNCIL MEMBER: Mayor pro tem Nielsen RECUSE: COUNCIL EMBER: None id k� 6�—. M R ET R. MONAHAN, City Clerk