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HomeMy WebLinkAboutCC AG PKT 2004-01-12 #V AGENDA REPORT DATE: January 12, 2004 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Mac Cummins, AICP, Associate Planner SUBJECT: Community Facilities District No. 2002 -1 (Heron Pointe) — Special Election to Levy Special Taxes SUMMARY OF REQUEST: Adopt 2 resolutions which would accomplish the following: 1. Call for a special election of property owners within the district to consider whether or not to levy special taxes for the purposes of financing public improvements 2. After the election is conducted, adopt a resolution certifying the results of the election. 3. Consider and adopt 1 reading of an Ordinance which will levy special taxes in a special tax financing district. BACKGROUND: At the December 12, 2003 meeting, the City Council adopted a resolution, which considered changing the Rate and Method of Apportionment in a special tax financing district. At tonight's meeting, the owners of the property will vote as to whether or not to tax themselves additional funds in conformance with the rate and method of apportionment. After the special election, the City Clerk will count the votes, and then the Council will be asked to adopt a resolution certifying the results of the special election. (This is all proposed to happen this evening) Following this, an ordinance will be introduced which will set the Rate and Method of Apportionment for the district. This ordinance, required by state law, authorizes the sale of bonds and incurs indebtedness. The City will not be responsible for the debt, as it will be passed on to future homeowners in the tract via a special tax assessment which will appear each year on their tax bills. FISCAL IMPACT: None. All staff time and incidental costs associated with to project will be billed to the developer, and the costs of the public facilities and consultants will be paid for with bond proceeds. The costs of the public improvements will be paid by.the special tax assessment levied against the new homeowners at Heron Pointe. Agenda Item V RECOMMENDATION: Adopt 2 resolutions which would accomplish the following: 1. Call for a special election of property owners within the district to consider whether or _ not to levy special taxes for the purposes of financing public improvements 2. After the election is conducted, adopt a resolution certifying the results of the election. 3. Consider and adopt 1 reading of an Ordinance which will levy special taxes in a special tax financing district. - Mac ummins, AICP, Associate Planner/ . ecial Projects Manager _ NOT i AN 1 ' PRO ED: Jo — B. B .4 •, ski, City Manager Attachments: 1. A resolution of the City Council of the City of Seal Beach calling a special election regarding the alteration of the rate and method of apportionment of special taxes for community facilities district no. 2002 -01 (Heron Pointe) 2. A resolution of the City Council of the City of Seal Beach declaring the results of a special election in community facilities district no. 2002 -01 (Heron Pointe), determining that the alteration of the rate and method of apportionment of special taxes for the district is lawfully authorized and directing the recording of an amended notice of special tax lien 3. An ordinance of the City Council of the City of Seal Beach, California, acting in its capacity as the legislative body of the city of seal beach community facilities district no. 2002 -01 (Heron Pointe) authorizing the levy of a special tax within that district pursuant to an amended and restated rate and method of apportionment of special taxes Agenda Item • Attachment 1 A resolution of the City Council of the City of Seal Beach calling a special election regarding the alteration of the rate and method of apportionment of special taxes for community facilities district no. 2002 -01 (Heron Pointe) • c Agenda Item RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH CALLING A SPECIAL ELECTION REGARDING THE ALTERATION OF THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2002- 01 (HERON POINTE) RECITALS: WHEREAS, on December 8, 2003, this City Council adopted a resolution entitled "A Resolution of the City Council of the City of Seal Beach to Consider Alterations to the Rate and Method of Apportionment of Special Tax for Community Facilities District No. 2002 -01 (Heron Pointe)" (the "Resolution of Consideration "), proposing to amend and restate the rate and . method of apportionment of the special taxes (the "Original RMA ") for Community Facilities District No. 2002 -01 (Heron Pointe) (the "District ") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act "); WHEREAS, the Resolution of Consideration, which makes reference to and incorporates by reference the map of the boundaries of the District and which makes reference to and incorporates by reference a proposed "Amended and Restated Rate and Method of Apportionment for City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe)" (the "Amended and Restated RMA "), is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; WHEREAS, on this date, this City Council held a noticed public hearing as required by the Act and the Resolution of Consideration relative to the proposed Amended and Restated RMA as set forth in Exhibit A hereto; WHEREAS, at said hearing all property owners and any other interested persons with respect to the District desiring to be heard on all matters pertaining to the Amended and Restated RMA were heard and a full and fair hearing was held; WHEREAS, written protests with respect to the Amended and Restated RMA have not been filed with the City Clerk by fifty percent or more of any registered voters residing within the territory of the District or property owners of one -half or more of the area of land within the District and not exempt from the levy of the special tax; and WHEREAS, the proposition of the amendment and restatement of the Original RMA shall be submitted to the qualified electors of the District as required by the Act. Agenda Item NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The foregoing recitals are true and correct. Section 2. The Amended and Restated RMA of the special tax to be levied within the District has not been precluded by majority protest in the District pursuant to 53337 of the Act. Section 3. All prior proceedings taken by this City Council in connection with the proposed alteration of the Original RMA for the District as set forth in the Resolution of Consideration have been duly considered and are hereby - found and determined to be valid and in conformity with the requirements of the Act. Section 4. Subject to the approval of the qualified electors of the District at the special - election referred to below, the Original RMA is hereby altered from that specified in the Resolution No. 5063 of the City Council, adopted on September 23, 2002 (the "Resolution of Formation "), and shall be as specified in the Amended and Restated RMA set forth in Exhibit A attached hereto and by this reference made a part hereof. Section 5. Pursuant to Sections 53338(a) and 53326 of the Act, the issue of the amendment and restatement of the Original RMA shall be submitted to the qualified electors of the District at an election called therefore as provided below. Section 6. The ballot measure shall be in the form attached hereto as Exhibit B and by this reference incorporated herein, and said form of ballot is hereby approved. Section 7. This City Council hereby finds that fewer than 12 persons have been • registered to vote within the territory of the District for each of the 90 days preceding the close of the public hearing heretofore conducted and concluded by this City Council for the purposes of these proceedings. Accordingly, and pursuant to Section of 53326 of the Act, this City Council finds that for purposes of these proceedings the qualified electors of the District are landowners within the and that the vote shall be by said landowners, each having one vote for each acre or portion of an acre such landowner owns in the District as of the close of said public hearing. Section 8. This City Council hereby calls a special election to consider the measures described in Section 6 above, which election shall be held immediately following adoption of this Resolution in the City Council Chambers. The City Clerk is hereby designated as the official to conduct said election. It is hereby acknowledged that the City Clerk has on file a copy of this Resolution and a map of the boundaries of the District. Section 9. The voted ballot shall be returned to the City Clerk immediately following adoption of this Resolution, and when the qualified electors have voted, but not later than 11:30 p.m. on January 12, 2004, the election shall be closed. Agenda Item • • Section 10. Pursuant to Section 53327 of the Act, the election shall be conducted by mail ballot pursuant to the California Elections Code. This City Council hereby finds that paragraphs (a), (b), and (c)(1) of Section 4000 of the California Elections Code are applicable to this special election. Section 11. This City Council acknowledges that the City Clerk has caused to be delivered to the qualified electors of the District a ballot in the form set forth in Exhibit B hereto. The ballot was accompanied by all supplies and written instructions necessary to the use and return of the ballot. The envelope to be used to return the ballot was enclosed with the ballot, had the return postage prepaid, and contained the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is owner of record or authorized representative of the owner of record entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board. Analysis and arguments with respect to the ballot measures have been waived by the qualified electors, by means of the waiver contained in the voted ballot, as permitted by Section 53327 of the Act. The City Council hereby concurs in said waiver. • Section 12. The City Clerk shall accept the ballot of the qualified electors in the City Council Chambers upon and prior to the adoption of this Resolution, whether said ballot be personally delivered or received by mail. The City Clerk shall have available a ballot which may be marked at said location on the election day by said qualified electors. Section 13. This City Council hereby further finds that the provision of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the resolution calling the election to elapse before said special election is for the protection of the qualified electors of the District. The voted ballots of the qualified electors of the District contain a waiver of the time for said special election. Accordingly, this City Council finds and determines that said qualified electors have been fully apprised of and have agreed to the shortened time for the election and has thereby been fully protected in these proceedings. This City Council also finds and determines that the City Clerk has concurred in the shortened time for the election. • • Agenda Item Section 14. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a meeting thereof held on the day of , 2004 by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Joanne M. Yeo, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number on file in the office of the City Clerk, passed, approved and adopted by the City Council of the City of Seal Beach at a regular - meeting thereof held on the day of , 2004. City Clerk Agenda Item EXHIBIT A AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002-01 (HERON POINTE) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe) ( "CFD No. 2002 -01 ") and collected each Fiscal Year commencing in Fiscal Year 2002 -03, in an amount determined by the City Council of the City of Seal Beach, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 2002 -01, 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: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. "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" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2002 -01: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its. legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2002 -01 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2002 -01 or any designee thereof of complying with City, CFD No. 2002 -01 or obligated persons - disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure -- statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2002 -01 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from any escrow account; and the City's annual administration fees and third party expenses. • Administrative Expenses shall also include amounts estimated or advanced by the S7296.1085 756305v3 A -1 City or CFD No. 2002 -01 for any other administrative purposes of CFD No. 2002 -01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "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 designating parcels by Assessor's parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by the City on behalf of CFD No. 2002 -01 under the Act. "CFD Administrator" means an official of the. City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2002 -01" means the City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe). "City" means the City of Seal Beach. "Council" means the City Council of the City. "County" means the County of Orange. "Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which a building permit for new construction was issued after January 1, 2001 and prior to January 1 of the prior Fiscal Year. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other • instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time. "Land Use Class" means any of the classes listed in Table 1 below. S7296.1085 756305v3 A-2 • "Maximum Special Tax" means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non- Residential Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for a non - residential use. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property. For Taxable Public Property and Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Taxable Public Property or Taxable Property Owner Association Property, as applicable. "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 2002 -01 that was owned by a property owner association, including any master or sub - association, as of January 1 of the prior Fiscal Year. "Public Property" means, for each Fiscal Year, any property within CFD No. 2002 -01 that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by reference to, the building permit(s) issued for such Assessor's Parcel. S7296.1085 756305v3 A -3 "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "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 for CFD No. 2002 -01 to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited. to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay directly for acquisition or construction of CFD No. 2002 -01 facilities eligible under the Act; (vi) pay for reasonably anticipated delinquent , . Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2002 -01 which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2002 -01 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. S7296.1085 756305v3 A -4 C. MAXIMUM SPECIAL TAX 1. Developed Property a. Maximum Special Tax - The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived , by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. b. Assigned Special Tax The Fiscal Year 2002 -03 Assigned Special Tax for each Land Use • Class is shown below in Table 1. TABLE 1 Fiscal Year 2002 -03 Assigned Special Taxes for Developed Property in Community Facilities District No_. 2002 -01 (Heron Pointe) : •.Land' Use � :�; : ;: ...:. ... ,•.. L Res1den1oor .• ... , - • • •• v-, - •s • .;--;',.Description Area "Assigned Special; • . Tax :i- - Class ° - •- , : •• ° • 1 Residential Property >_ 4,000 s.f. $5,350 per unit 2 Residential Property 3,750 — 3,999 s.f. $5,078 per unit, 3- Residential Property 3, 500 — 3,749 s.f. $4,900 per unit 4 Residential Property < 3,500 s.f. • $4,570 per unit 5 Non-Residential Property NA $41,977 per Acre c. Backup Special Tax The Fiscal Year 2002 -03 Backup Special Tax for an Assessor's Parcel of Developed Property shall equal $41,977 per Acre. d. Increase in the Assigned Special Tax and Backup Special Tax S7296 1085 756305v3 A -5 On each July 1, commencing on July 1, 2003 and through and including July 1, 2012, the Assigned Special Tax and the Backup Special Tax shall be increased by an amount equal to two percent (2 %) of the amount in effect for the previous Fiscal Year. There • will be no increase in the Assigned Tax or Backup Special Tax subsequent to July 1, 2012. 2. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property a. Maximum Special Tax The Fiscal Year 2002 -03 Maximum Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $47,043 per Acre. b. Increase in the Maximum Special Tax • On each July 1, commencing on July 1, 2003 and through and including July 1, 2012, the Maximum Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be increased by an amount equal to two percent (2 %) of the amount in effect for the previous Fiscal Year. There will be no increase in the Maximum Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property subsequent to July 1, 2012. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002 -03 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equal the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is S7296.1085 756305v3 A-6 determined through the application of the Backup Special Tax shall be increased • in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to the Maximum Special Tax for Taxable Property Owner Association Property; and Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property at up to the Maximum Special Tax for Taxable Public Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD. E. EXEMPTIONS No Special Tax shall be levied on up to 8.07 Acres of Property Owner Association Property. Tax - exempt status will be irrevocably assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as_Property Owner Association Property, its tax- exempt status will be revoked. No Public Property shall be exempt from Special Tax, except as required by law. Public Property or Property Owner Association Property that is not exempt from Special Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth or fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property or Taxable Property Owner Association Property. F. APPEALS AND INTERPRETATIONS Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must-specify the reasons why the appellant claims the calculation of the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems S7296.1085 756305v3 A -7 necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the CFD - Administrator's determination. 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; provided, however, that CFD No. 2002 -01 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section H: "CFD Public Facilities Cost" means either $3.015 million in 2002 dollars, which shall increase by the Construction Inflation Index on July 1, 2003, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be provided by CFD No. 2002 -01 under the authorized bonding program for CFD No. 2002 -01, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act. "Construction Inflation Index" means the annual percentage change in the • Engineering News - Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be • another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News - Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" - means the CFD Public Facilities Cost minus (i) public facility costs previously paid from the Construction Fund, (ii) moneys currently - S7296.1085 756305v3 A-8 on deposit in the Construction Fund, and (iii) moneys currently on deposit in an ' escrow fund that are expected to be available to finance facilities costs. • "Outstanding Bonds" means all Previously Issued Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. "Previously Issued Bonds" means all Bonds that have been issued by CFD No. 2002 -01 prior to the date of prepayment. • 1. Prepayment in Full The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid and permanently satisfied as described herein; provided that a prepayment may be made only for Assessor's Parcels of Developed Property or Undeveloped Property for which a building permit has been issued, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): , Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined - below) shall be calculated as follows: Paragraph No.: - • 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. S7296.1085 756305v3 A -9 2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax and Backup Special Tax applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property (for which a building permit has been issued) to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Special Taxes for the entire CFD No. 2002- • 01 based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 2002 -01, excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the estimated Backup Special Taxes at buildout of CFD No. 2002 -01 using' the Backup Special Tax amount for the current Fiscal Year, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) • by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount "). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium "). 6. Compute the current Future Facilities Costs 7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount "). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount (as defined below) less the Future Facilities Amount and the Administrative Fees and Expenses • S7296.1085 756305v3 A -10 • -- - -- -- - - -- - - - -- (as defined below) from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount "). 12. Verify the administrative fees and expenses of CFD No. 2002 -01, including ' the costs of computation of the prepayment, the costs to invest the prepayment_ proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses "). - 13. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit "). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and /or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit "). 15. The Special Tax prepayment is equal to the sum of the amounts computed . pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount "). 16. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt , service payments. The amount computed pursuant to paragraph 7 shall be deposited into the construction fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2002 -01. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County S7296.1085 756305v3 A-11 tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Assigned Special Taxes that may be levied on Taxable Property within CFD No. 2002 -01 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. . 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP = - These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H.1 F = the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of such owner's intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor's Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section H.1, and (ii) indicate in the records of CFD No. 2002 -01 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to Section D. S7296.1085 756305v3 A -12 • I. TERM OF SPECIAL TAX The Special Tax shall be levied for the period necessary to fully satisfy the Special Tax Requirement, but in no event shall it be levied after Fiscal Year 2042- 43. • • S7296.1085 756305v3 A -13 • EXHIBIT B OFFICIAL BALLOT SPECIAL ELECTION City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe) This ballot is for a special landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Seal Beach no later than 11:30 p.m. on January 12, 2004, either by mail or in person. The City Clerk's office is located at 211 Eighth Street, Seal Beach, California, 90740. To vote, mark a cross (X) 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 City Clerk of the City of Seal Beach and obtain another. BALLOT MEASURE: Shall the rate and method of apportionment of the special taxes to be levied within the City Yes of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe) (the "District ") be altered as described in the resolution of the City Council of the City of Seal Beach adopted January 12, 2004, entitled "A Resolution of the City Council of the City of Seal Beach Calling a Special Election No Regarding the Alteration of the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 2002 -01 (Heron Pointe) "? By execution in the space provided below, you also indicate your desire to have this election occur as soon as practicable. Accordingly, all notices of hearings are hereby waived. In connection with any election required for altering the rate and method of apportionment of special taxes for City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe), you consent to the shortening of time limits, and waive analysis, arguments and rebuttals, all notice, mailing of the ballots in the event ballots are distributed by personal service, and any protest, complaint, or legal action in relation to all time periods which will be shortened. Number of votes: 19 Property Owner: WL Homes, LLC By: • S7296.1085 756355v1 14 Attachment 2 A resolution of the City Council of the City of Seal Beach declaring the results of a special election in community facilities district no. 2002 -01 (Heron Pointe), determining that the alteration of the rate and method of apportionment of special taxes for the district is lawfully authorized and directing the recording of an amended notice of special tax lien S7296 1085 756355v1 15 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH DECLARING THE RESULTS OF A SPECIAL ELECTION IN COMMUNITY FACILITIES DISTRICT NO. 2002 -01 (HERON POINTE), DETERMINING THAT THE ALTERATION OF THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR THE DISTRICT IS LAWFULLY AUTHORIZED AND DIRECTING THE RECORDING OF AN AMENDED NOTICE OF SPECIAL TAX LIEN RECITALS: WHEREAS, in proceedings heretofore conducted by this City Council adopted pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code.(the "Act "), on this date this City Council adopted a resolution entitled "A Resolution of the City Council of the City of Seal Beach Calling A Special Election Regarding the Alteration of the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 2002 -01 (Heron Pointe)" (the "Resolution Calling Election "), calling for a special election of the qualified electors within Community Facilities District No. 2002 -01 (Heron Pointe) (the "District "); and WHEREAS, pursuant to the terms of said resolution, which are by this reference incorporated herein, said special election was held on this date, and the City Clerk has on file a Certificate of the City Clerk as to the Results of the Canvass of the Election Returns (the "Certificate "), a copy of which is attached hereto as Attachment A; and WHEREAS, this City Council has reviewed said Certificate and hereby approves it. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The issue presented at said election was the alteration of the rate and method of apportionment of the special taxes to be levied within the District, as described in the Resolution Calling Election. Section 2: The results of said special election are as set forth in said Certificate on file with the City Clerk and attached to this Resolution as Attachment A, which is S7296.1085 756355v1 16 incorporated herein by this reference. Pursuant to said Certificate on file with the City • Clerk, the issue presented at said special election was approved by the qualified electors • of the District. • Section 3. This City Council hereby determines that the alteration of the rate and method of apportionment of the special taxes to be levied within the District, as described in the Resolution Calling Election, is lawfully authorized. Section 4. The City Clerk is hereby directed to execute and cause to be recorded in • the office of the County Recorder of the County of Orange an amended notice of special tax lien with respect to the District in substantially the form attached hereto as Attachment B, said recording to occur no later than 15 days following adoption by this City Council of this Resolution. Section 5. It is hereby found that all prior proceeding and actions taken by this City Council with respect to the District and the alteration of the rate and method of apportionment of special taxes for the District were valid and in conformity with the Act. Section 6. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a meeting thereof held on the day of 2004 by the following vote: AYES: • Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councilmembers • Mayor • ATTEST: City Clerk - S7296.1085 756355v1 17 • STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Joanne M. Yeo, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number on file in the office • of the City Clerk, passed, approved and adopted by the City Council of the City of Seal Beach at a regular meeting thereof held on the day of , 2004. - City Clerk • • • S7296.1085 756355v1 18 ATTACHMENT A CERTIFICATE OF THE CITY CLERK AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS , CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002-01 (Heron Pointe) I, Joanne Yeo, City Clerk of the City of Seal Beach, hereby certify that I canvassed the returns of the Special Election in the City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe) (the "District "), that the election was held in the Chambers of the City Council at 211 Eighth Street, Seal Beach, California 90740 on January 12, 2004, and that the total number of ballots cast in said election and the total number of votes cast for and against the Ballot Measure are full, true and correct: 'Qualified Eligible Votes Voters Cast Yes No BALLOT MEASURE: Shall the rate and method of apportionment of the special taxes to be levied within the City of Seal Beach Community Facilities District No. 2002- • 01 (Heron Pointe) (the "District ") be altered as described in the resolution of the City Council of the City of Seal Beach adopted January 12, 2004, entitled "A Resolution of the City Council of the City of Seal Beach Calling A Special Election Regarding the Alteration of the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 2002 -01 (Heron Pointe) "? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 12th day of January, 2004. By: Joanne Yeo _ • City Clerk City of Seal Beach • S7296.1085 756355v1 A -1 ATTACHMENT B • AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002-01 (HERON POINTE) • A Special Tax as hereinafter defined "shall be levied on all Assessor's Parcels in the City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe) ( "CFD No. 2002 -01 ") and collected each Fiscal Year commencing in Fiscal Year 2002 -03, in an amount determined by the City Council of the City of Seal Beach, through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 2002 -01, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the mariner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. "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" - means the following actual or reasonabl -y estimated costs directly related to the administration of CFD No. 2002 -01: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2002 -01 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2002 -01 or any designee thereof of complying with City, CFD No. 2002 -01 or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2002 -01 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from any escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the Agenda Item City or CFD No. 2002 -01 for any other administrative purposes of CFD No. 2002 -01, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "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 designating parcels by Assessor's parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C below. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by the City on behalf of CFD No. 2002 -01 under the Act. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2002 -01" means the City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe). "City" means the City of Seal Beach. - "Council" means the City Council of the City. "County" means the County of Orange. "Developed Property" means for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which a building permit for new construction was issued after ' January 1, 2001 and prior to January 1 of the prior Fiscal Year. "Fiscal Year" means the period starting July 1 and ending on the following June 30. . "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time. "Land Use Class" means any of the classes listed in Table 1 below. Agenda Item • "Maximum Special Tax" means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non- Residential Property" means all Assessor's Parcels of Developed Property for which a building permit was issued for a non - residential use. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property. For Taxable Public Property and Taxable Property Owner Association Property, "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal for all Assessor's Parcels of Taxable Public Property or Taxable Property Owner Association Property, as applicable. "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No.,2002 -01 that was owned by a property owner association, including any master or sub - association, as of January 1 of the prior Fiscal Year. "Public Property" means, for each Fiscal Year, any property within CFD No. 2002 -01 that is owned by, irrevocably offered for dedication to, or dedicated to the federal government, the State, the County, the City or any other public agency as of June 30 of the prior Fiscal Year; provided however that any property leased , by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. To ensure that property is classified as Public Property in the first Fiscal Year after it is acquired by, irrevocably offered for dedication to, or dedicated to a public agency, the property owner shall notify the CFD Administrator in writing of such acquisition, offer, or dedication not later than June 30 of the Fiscal Year in which the acquisition, offer, or dedication occurred. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, - garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by reference to the building permit(s) issued for such Assessor's Parcel. Agenda Item "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "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 for CFD No. 2002 -01 to: (i) pay debt service on all Outstanding Bonds; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay directly for acquisition or construction of CFD No. 2002 -01 facilities eligible under the Act; (vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2002 -01 which are not exempt from the Special Tax pursuant to law or Section E below. • "Taxable Property Owner Association Property" means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E below. "Taxable Public Property" means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E below. "Trustee" mean's the trustee or fiscal agent under the Indenture. • "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. • 2002 -01 shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. Agenda Item • C. MAXIMUM SPECIAL TAX 1. Developed Property - a. Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. ' b. Assigned Special Tax The Fiscal Year 2002 -03 Assigned Special Tax for each Land Use Class is shown below in Table 1. TABLE 1 Fiscal Year 2002 -03 Assigned Special Taxes for Developed Property in Community Facilities District No. 2002 -01 _ (Heron Pointe) Land' Use u •.. :. • • X � Clas ^. e s c ripti on Residential Floor Area, Assigned Special Tax <i : 1 Residential Property ? 4,000 s.f. $5,350 per unit 2 Residential Property 3,750 — 3,999 s.f. $5,078 per unit 3 ` Residential Property 3, 500 — 3,749 s.f. . $4,900 per unit 4 Residential Property < 3,500 s.f. $4,570 per unit 5 Non - Residential Property NA $41,977 per Acre - c. Backup Special Tax The Fiscal Year 2002 -03 Backup Special Tax for an Assessor's Parcel of Developed Property shall equal $41,977 per Acre. e. Increase in the Assigned Special Tax and Backup Special Tax Agenda Item _ On each July 1, commencing on July 1, 2003 and through and including July 1, 2012, the Assigned Special Tax and the Backup Special Tax shall be increased by an amount equal to two percent (2 %) of the amount in effect for the previous Fiscal Year. There will be no increase in the Assigned Tax or Backup Special Tax subsequent to July 1, 2012. 2. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property a. Maximum Special Tax The Fiscal Year 2002 -03 Maximum Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be S47,043 per Acre. c. Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2003 and through and including July 1, 2012, the Maximum Special Tax for Undeveloped Property, _Taxable Public Property, and Taxable Property Owner Association Property shall be increased by an amount equal to two percent (2 %) �f the amount in effect for the previous Fiscal Year. There will be no increase in the Maximum Special Tax for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property subsequent to July 1, 2012. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX • Commencing with Fiscal Year 2002 -03 and for each following Fiscal Year, the - Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equal the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax; Second: If additional monies needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is Agenda Item determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to the Maximum Special Tax for Taxable Property Owner Association Property; and Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of.Taxable Public Property at up to the Maximum Special Tax for Taxable Public Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD. E. EXEMPTIONS No Special Tax shall be levied on up to 8.07 Acres of Property Owner Association Property. Tax - exempt status will be irrevocably assigned by the CFD • Administrator in the chronological order in which property becomes Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property, its tax - exempt status will be revoked. No Public Property shall be exempt from Special Tax, except as required by law. Public Property or Property Owner Association Property that is not exempt from Special Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the fourth or fifth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property or Taxable Property Owner Association Property. F. APPEALS AND INTERPRETATIONS Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the calculation of the Special Tax is in error. The CFI) Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems Agenda Item • necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the CFD Administrator's determination. 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; provided, however, that CFD No. 2002 -01 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section H: "CFD Public Facilities Cost" means either $3.015 million in 2002 dollars, which shall increase by the Construction Inflation Index on July 1, 2003, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be provided by CFD No. 2002 -01 under the 'authorized bonding program for CFD No. 2002 -01, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct . public facilities eligible under the Act. "Construction Inflation Index" means the annual percentage change in the Engineering News - Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News - Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities Cost minus (i) public facility costs previously paid from the Construction Fund, (ii) moneys currently Agenda Item on deposit in the Construction Fund, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance facilities costs. "Outstanding Bonds" means all Previously Issued Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. "Previously Issued Bonds" means all Bonds that have been issued by CFD No. 2002 -01 prior to the date of prepayment. 2. Prepayment in Full The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid and permanently satisfied as described herein; provided that a prepayment may be made only for Assessor's Parcels of Developed • Property or Undeveloped Property for which a building permit has been issued, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): - Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount ' plus Administrative Fees and Expenses • less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined • below)" shall be calculated as follows: Paragraph No.: 3. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. Agenda Item 4. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax and Backup Special Tax applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property (for which • a building permit has been issued) to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Special Taxes for the entire CFD No. 2002- 01 based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 2002 -01, excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the estimated Backup Special Taxes at buildout of CFD No. 2002 -01 using the. Backup Special Tax amount for the current Fiscal Year, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount "). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium "). 17. Compute the current Future Facilities Costs • 18. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the 'Future Facilities Amount "). 19. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 20. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 21. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of -the Prepayment Amount (as defined below) less the Future Facilities Amount and the Administrative Fees and Expenses Agenda Item (as defined below) from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 22. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount "). 23. Verify the administrative fees and expenses of CFD No. 2002 -01, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses "). 24. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit "). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 25. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit "). 26. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount "). 27. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 7 shall be deposited into the construction fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2002 -01. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds: In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County Agenda Item tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Assigned Special Taxes that may be levied on Taxable Property within CFD No. 2002 -01 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP = These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H.1 F = the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of such owner's intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor's Parcel within thirty (30) days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section H.1, and (ii) indicate in the records of _ CFD No. 2002 -01 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to Section D. Agenda Item TERM OF SPECIAL TAX The Special Tax shall be levied for the period necessary to fully satisfy the Special Tax Requirement, but in no event shall it be levied after Fiscal Year 2042- 43. • • Agenda Item Attachment 3 An ordinance of the City Council of the City of Seal Beach, California, acting in its capacity as the legislative body of the City of Seal Beach community facilities district no. 2002 -01 (Heron Pointe) authorizing the levy of a special tax within that district pursuant to an amended and restated rate and method of apportionment of special taxes • Agenda Item ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE • CITY OF SEAL BEACH, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF THE CITY OF SEAL BEACH COMMUNITY FACILITIES DISTRICT NO. 2002 -01 (HERON POINTE) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THAT DISTRICT PURSUANT TO AN AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES RECITALS: WHEREAS, the City Council (the "City Council ") of the City of Seal Beach, California (the "City "), has 'conducted proceedings in accordance with the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act "), for the establishment of the City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe) (the "District "); and WHEREAS, the District was established pursuant to Resolution No. 5063 of the City Council, adopted on September 23, 2002 (the "Resolution of Formation "); and WHEREAS, the Resolution of Formation, among other things, provided a description of facilities for the District, as set forth in Exhibit A to the Resolution of Formation and prescribed a rate and method of apportionment of special tax for the District, as set forth in Exhibit B to the Resolution of Formation; and WHEREAS, the City Council previously adopted Resolution No. stating its intention to consider alterations to the rate and method of apportionment of special tax for the district (the "Resolution of Consideration "); and WHEREAS, a copy of the Resolution of Consideration making reference to and incorporating by reference the map of boundaries of the District and making reference to and incorporating by reference a proposed "Amended and Restated Rate and Method of Apportionment for City of Seal Beach Community Facilities District No. 2002 -01 (Heron Pointe)" (the "Amended and Restated RMA "), as set forth in Exhibit A to the Resolution of Consideration, is on file in the office of the City Clerk, and is incorporated herein by reference; and - WHEREAS, in accordance with the Act, notice was published and mailed to all landowners within the District regarding a public hearing (the "Hearing ") set for January 12, 2004 at 7:00 p.m. or as soon thereafter as possible on the alteration of the rate and method of apportionment of special taxes for the District; and S7296.1085 758089v1 A -1 WHEREAS, prior to the Hearing there was filed with the City Council a revised report in connection with the Amended and Restated RMA containing a brief description of the facilities by type necessary to adequately meet the needs of the District, and an estimate of the fair and reasonable costs of financing the facilities, including the cost of acquiring land and easements • and any incidental expenses, and including the costs of the proposed bond financing and all other related costs, as provided for in Section 53345.4 of the Act; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the Amended and Restated RMA were heard and a full and fair hearing was held; and WHEREAS, at the public hearing evidence was presented to the City Council on the matters before it and the City Council at the conclusion of the hearing is fully advised as to all matters relating to the alteration of the rate and method of apportionment of special taxes for the District; and • WHEREAS, subsequent to the public hearing, the City Council adopted Resolution No. which, subject to the approval of the qualified electors of the District, altered the rate and method of apportionment of special taxes for the District; and WHEREAS, on January 12, 2004, a special election was held within the District at which the qualified electors of the District approved the alteration of the rate and method of apportionment of special taxes for the District; and WHEREAS, on January 12, 2004, the City Council adopted Resolution No. which declared the results of the January 12, 2004 election conducted by the City Clerk,which results showed that more than two - thirds of the votes cast in the District were in favor of the proposition to alter the rate and method of apportionment of special taxes for the District; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Recitals. The above recitals are all true and correct. Section 2. Authorization of Levy of Special Tax. By passage of this Ordinance, the City Council authorizes the levy of a special tax within the District at the maximum rate and in accordance with the Amended and Restated RMA set forth in Exhibit A to the Resolution of Consideration, which is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein. Section 3. Annual Rate Determination. The City Council is hereby further authorized to detennine on or before August 10 of each year, or such other date as is established by law or by the County Auditor - Controller of the County of Orange, the specific special tax to be levied on each parcel of land in the District, except that the special tax rate to be levied shall not exceed the maximum rates set forth in the Amended and Restated RMA but the special tax may be levied at a lower rate. Section 4. Exemption of Government Property. Properties or entities of the state, federal, or other local governments shall be exempt from the above - referenced and approved special tax only to the extent set forth in the Amended and Restated RMA and otherwise shall be subject to tax consistent with the provisions of Section 53317.3 and 53317.5 of the Act. Section 5. Use of Collections. All of the collections of the special tax shall be used only as provided for in the Act and in the Resolution of Formation. The special tax shall be levied only so long as needed for its purpose as described in the Resolution of Formation. Section 6. Collection. The special tax shall be collected in the same manner as ordinary ad valorem taxes and shall be subject to the same penalties and the same procedure, sale and lien in any case of delinquency as applicable for ad valorem property taxes; provided, however, that the special tax may be collected in such other manner as may be provided by the City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to any delinquent Special Tax payments. Section 7. Authorization. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act. Section 8. Certification. The City Clerk shall certify to the passage of this Ordinance and cause it to be published or posted in accordance with law. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a meeting thereof held on the • day of , 2004. • Mayor City of Seal Beach ATTEST: City Clerk - STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Joanne M. Yeo, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing • Ordinance is an original copy of Ordinance Number on file in the office of the City Clerk, introduced at a meeting held on the day of , 2004, and passed, approved and adopted by the City Council of the City of Seal Beach at a meeting held on the day of , 2004 by the following vote: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers ABSTAIN: Councihnembers and do hereby further certify that Ordinance Number has been published pursuant to the Seal Beach City Charter and Resolution Number 2836. City Clerk - - Zoning Text Amendment 03 -3 Second Residential Units Planning Commission Staff Report December 3, 2003 ATTACHMENT 3 SURVEY OF CITIES REGARDING OWNER OCCUPANCY - AND /OR DEED RESTRICTION PROVISIONS ZTA 03 -3 PC Staff Report Second Residential Units 26 , , , , , Question. Does your 2nd Unit Ordinance require an owner to occupy one of the units on the lot, and does the Ordinance require a deed restriction to enforce this requirement? Owner occupancy Deed restriction City/County requirement? requirement? Comments Albany Yes Yes Bell Gardens Yes Undecided Pending Berkeley Yes Yes Beverly Hills No No - Brentwood Yes Yes Buena Park Yes Yes _Carmel No Chula Vista No Costa Mesa Yes Yes - • Dana Point: 2nd unit restricted to 1 adult; 2 seniors, must be Dana Point No available to low income persons Davis No No Del Mar No No El Cajon Yes Yes All conditions are recorded Foster City Yes Yes Pending Fremont Yes Yes Goleta Yes Yes Pending Hanford Yes - Yes Haywood Yes No La Canada Flintridge Yes - Yes Lafayette Yes Yes Lakeport No Livermore • No Lomita Yes Yes Los Altos Yes Yes Madera County Yes Yes Modesto Yes No Montebello Yes Yes Monterey Park Yes Yes Morgan Hill No Oakdale Yes Yes Orinda Yes Yes Pacific Grove Yes _ Yes Pacifica Yes Yes Pismo Beach No No Redding Yes Yes Pending Redondo Beach Yes Yes Redondo Beach: No more than Redwood City Yes No one of the units may be rented Riverbank Yes Yes Sacramento Yes No San Bernardino No No San Marcos Yes Yes San Mateo Yes San Mateo occupancy - of more than 1 unit unless owner San Rafael Yes Yes lives in 1 of the units Santa Cruz Yes Yes Santa Cruz County Yes Yes _ Santa Rosa Yes Yes Saratoga No Saratoga. Size bonus if deed Scotts Valley No No restricted for low income rental Sebastopol No No Solvang Yes Yes Sonoma (City) Yes, No Yes at time of _ Sonoma County application No . South Pasadena Yes Yes Southgate Yes Yes St. Helena Yes No Pending Susanvdle Yes Yes Tiburon Yes No Turlock Yes Yes Turlock Yes • Yes Vallejo Yes Yes Watsonville No Westminster Yes • Yes Winters Yes Yes Pending Yorba Linda Yes Yes Yuba City Yes No est ,0- AGENDA REPORT 1611 DATE: January 12, 2004 �' � Ua ,+ TO: Honorable r Mayor and City Council • THRU: John B. Bahorski, City Manager FROM: Lee Whittenberg, Director of Development Services Quinn Barrow, City Attorney SUBJECT: Appropriate Development Standards - Residential Low • Density Zone, Planning District II (Bridgeport/Suburbia) SUMMARY OF REQUEST: Adopt Ordinance No. , An Interim Ordinance of the City of Seal Beach Enacted Pursuant to California Government Code Section 65858 Prohibiting the Issuance of Building Permits and Other Land Use Entitlements for any Additions to Dwelling Units in the Bridgeport Area During the Pendency of the City's Review and Adoption of Permanent Zoning Regulations for Such Uses and Declaring the Urgency Thereof. BACKGROUND: Current Zoning Provisions: The subject properties are located in the Residential Low Density, District II zoned area of the City. The development standards for this area are substantially similar to the development standards for the Low Density Residential, District V zoning standards, which are applicable to the 5,000 square foot lots of the "Hill" area of the City. These standards are not in accordance with previous "Precise Plan" and "Redevelopment Plan" approvals that are discussed below. Precise Plan PP -I -66: A precise plan was approved by the Planning Commission on November 30, 1966 in conjunction with Commission approval of Zone Change CZ -1 -66 and Tentative Tract Maps 6345 and 6346. The City Council subsequently adopted Ordinance No. 700 on January 16, 1967. This ordinance adopted CZ -1 -66 and PP -1 -66, subject to terms and conditions. Section 1 and Section 3 of Ordinance No. 700 stipulates: Agenda Item W Z: \My Documents \Bridgeport Development Standards \Interim OnI.CC Staff Report.doc\ LW\01 -08-04 r Appropriate Development Standards - Residential Low Density Zone, Planning District II (Bridgeport/Suburbia) City Council Staff Report January 12, 2004 "Section 1. All property included and described in Rezone Application No. CZ -1 -66, Precise Plan Application No. PP -1 -66, and on Map Sheet No. 1 of Precise Plan No, PP -1 -66 is hereby zoned R -1 -3000 (Single Family Residential) and C -2 (General Commercial) as shown on Map Sheet No. 1 of said Precise Plan No. PP -1 -66. Said zoning shall be subject to land use and development conditions and regulations adopted as Precise Plan No. PP -1 -66, which Precise Plan shall be considered an integral part of the zoning of said property. Section 3. All maps, plans, applications and reports stated in Section 1 and 2 above are made a part hereof and are incorporated herein with the same force and effect as though set forth in full herein." As indicated by the above language, the standards set forth on Precise Plan No. PP -1 -66 "... shall be considered an integral part of the zoning of said property." Precise Plan No. PP -1 -66 establishes different development standards for the subject property than those established in Section 28 -401 of the Code regarding property within the RLD, District II zone and have never been incorporated into the Zoning Ordinance. The current RLD District II development standards do not comport with the standards established by the City Council adoption of PP -1 -66, and the subject properties have been developed in accordance with the provisions of PP -1 -66. Bridgeport/Suburbia does not have garages on the front; they are located off alleys to the rear of the properties. All of the residences in Bridgeport/Suburbia are built with a zero lot line on one side of the property, while the District II regulations do not allow this situation to exist. Riverfront Redevelopment Plan: The Riverfront Redevelopment Plan (the "Plan") was adopted by the City Council on March 3, 1969 through the adoption of Ordinance No. 780. Section 500 of the Plan establishes permitted uses and development standards for the areas subject to the Plan. The Bridgeport/Suburbia area is located within Area 7 of the Plan, and Section 503 of the Plan indicates the following: "503 Single Family Residential Development Area 7 shown on the map shall be developed and used as for single family residential development according to the following standards. Single family parcels shall be no less than 3000 square feet per parcel. The amount of land in each parcel which may be covered by residential buildings shall not exceed 67 percent and the building height shall not exceed two (2) stories." 2 Intenm Ord.CC Staff Report . , Appropriate Development Standards - Residential Low Density Zone, Planning District II (Bridgeport/Suburbia) City Council Staff Report January 12, 2004 The current RLD District II development standards do not comport with the standards established by the City Council adoption of the Riverfront Redevelopment Plan, and the subject properties have been developed in accordance with the provisions of PP -1 -66 and the Riverfront Redevelopment Plan. The residences within Bridgeport do not comply with the RLD District II lot coverage provision of 45 %, they do comply with the Plan provision of 67% lot coverage. Section 700 of the Plan discusses actions by the City that shall be undertaken ". . . to ensure the continued fulfillment of the purposes of this Plan ", and lists several types of actions. Sub - section C states: • "C. Revision of zoning within the Project Area to permit the land uses and development authorized by this Plan." Case law supports the general proposition that a redevelopment plan supersedes local zoning. Thus, unless the redevelopment plan or an amendment either adopts the City's zoning regulations or requires consistency, it would appear that the Redevelopment Plan would control. The development standards set forth within Ordinance No. 700 and 780 have never been incorporated into the Zoning Ordinance to accurately reflect the approved development standards for these two Tracts within the City. "Architectural Committee" Status and CC &R Standards: Further, Tracts No. 6345 and 6346 are subject to recorded CC &R's regulating uses of property and setting forth additional development standards that are inconsistent with the provisions of the Residential Low Density, District II Zoning standards, and are also inconsistent with the provisions of Ordinance No. 700 and Ordinance No. 780. Between 1968 and 1998 the CC &R's provided for an "Architectural Committee" to review and approve development plans within these tracts, and that committee is not longer legally constituted. This lack of architectural review to insure compliance with the terms of the recorded CC &R's has caused confusion between the property owners of parcels within these tracts and the City, creating confusion and uncertainty as what development standards the City will enforce when reviewing requests for development in Tract No. 6345 and Tract No. 6346. Overview of Inconsistent Development Standards: As a result of the above discussed different development standards and review procedures that are applicable to Tract No. 6345 and Tract No. 6346, the uncertainty and confusion as to the appropriate level of City review of development projects, and the uncertainty as to the application of which set of adopted development standards that are applicable to these tracts has become exacerbated. The Planning Commission, this City Council, and the people of Seal Beach require a reasonable, limited, yet sufficient period of time to consider and study legally appropriate and reasonable policies regulating residential buildings and uses located within Interim Ord.CC Staff Report 3 . , Appropriate Development Standards - Residential Low Density Zone, Planning District II (Bridgeport/Suburbia) City Council Staff Report January 12, 2004 Tract No. 6345 and Tract No. 6346. Given the time required to undertake the study and planning necessitated by the proliferation of applications, the City Council finds that it is necessary that this interim ordinance be adopted, to ensure that improvements to buildings and uses that may be in conflict with the contemplated new development policies are not permitted in the interim. The City Council has the authority to adopt an interim ordinance pursuant to the City Charter and Government Code Section 65858 in order to protect the public health, safety, or welfare. FISCAL IMPACT: None. The re- allocation of existing staff projects will be required to prepare the necessary studies and prepare the necessary public hearing documents for Planning Commission and City Council considerations. RECOMMENDATION: Adopt Ordinance No. , An Interim Ordinance of the City of Seal Beach Enacted Pursuant to California Government Code Section 65858 Prohibiting the Issuance of Building Permits and Other Land Use Entitlements for any Additions to Dwelling Units in the Bridgeport Area During the Pendency of the City's Review and Adoption of Permanent Zoning Regulations for Such Uses and Declaring the Urgency Thereof NOTED - D i PPROV 1 Al, - Whittenberg Jo or 1 I irector of Development Servi : ity Manager Attachment: Ordinance No. , An Interim dinance of the City of Seal Beach Enacted Pursuant to California Government Code Section 65858 Prohibiting the Issuance of Building Permits and Other Land Use Entitlements for any Additions to Dwelling Units in the Bridgeport Area During the Pendency of the City's Review and Adoption of Permanent Zoning Regulations for Such Uses and Declaring the Urgency Thereof • 4 Interim Ord.CC Staff Report ■ t