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Resolution No. 3800159 RESOLUTION NO. 3800 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS DECLARING ITS INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO LEVY A SPECIAL TAX TO PAY FOR CERTAIN PUBLIC FACILITIES IN AND FOR PROPOSED COMMUNITY FACILITIES DISTRICT NO. 1 (SORRENTO HOMES) WHEREAS, a Petition requesting the institution of proceedings for formation of a community facilities district signed by the landowners within the proposed community facilities district has been received and filed with the City Clerk of the City of Cypress (the "City "); and WHEREAS, the City Council of the City (the "City Council ") has duly considered the advisability and necessity of instituting proceedings to establish a community facilities district under and pursuant to the terms and provisions of the "Mello -Roos Community Facilities Act of 1982 ", as amended, (the "Act "), being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and WHEREAS, the City Council has adopted Resolution No. 3799 on August 6, 1990, wherein it received and filed such petition; and WHEREAS, the City Council has determined to institute proceedings for the establishment of such community facilities district, and has determined to set forth the boundaries of the territory which is proposed for inclusion in such community facilities district and to state the public facilities to be provided in and for such community facilities district, and has determined to set a date time and place for a public hearing relating to the establishment of such community facilities district and the levy of a special tax therein to pay for such public facilities; and WHEREAS, the City Council has determined it is advisable to establish an appropriations limit, as defined by Article XIIIB, Section 8(h) of the California Constitution, for the community facility district; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CYPRESS, AS FOLLOWS: Section 1. All of the above recitals are true and correct. Section 2. The Petition is hereby accepted and proceedings are initiated pursuant to the authorization of Sections 53316 and 53318 of the Act. Section 3. It is the intention of the City Council to and the City Council hereby proposes to establish a com- munity facilities district under and pursuant to the terms and provisions of the Act, the boundaries of the territory RES23452 . 160 proposed for inclusion in such community facilities district are more particularly described and shown on that certain map entitled "Proposed Boundaries, Mello Roos Community Facilities District No. 1 (Sorrento Homes) City of Cypress, County of Orange, State of California" that has been filed with the City Clerk of the City and a copy of which, together with a legal description of such territory, is attached hereto as Exhibit A and incorporated herein and made a part hereof. The City Clerk is hereby authorized and directed to endorse the Certificate on said map evidencing the date and adoption of this resolution and is further authorized and directed to file said map with the County Recorder of the County of Orange in accordance with the provisions of Section 3111 of the California Streets and Highways Code within 15 days of the adoption of this resolution and not later than 15 days prior to the date of the public hearing as set forth in Section 10 hereof. Section 4. The communities facilities district proposed to be established shall be known and designated as "Community Facilities District No. 1" (Sorrento Homes) (the "Community Facilities District "). Section 5. It is the intention of the City Council to order the funding, financing, construction, installation, rehabilitation and acquisition of certain public facilities and appurtenances including streets and highways, drainage facilities, sewer facilities, traffic and safety lighting facilities, parkway landscaping improvements, and school facilities, together with appurtenances and appurtenant work, including equipment, real property and other tangible property with an estimated useful life of five (5) years or longer to serve properties within the Community Facilities District (the "Facilities "), which are public facilities that the City or a public agency is authorized by law to contribute revenue to or to construct, own or operate. A description of the types of Facilities to be funded, financed, constructed, installed, rehabilitated or acquired is set forth in Exhibit B, attached hereto and incorporated herein and made a part hereof. The Facilities to be funded, financed, constructed, installed, rehabilitated or acquired by or on behalf of the Community Facilities District are necessary to meet present or increased demand upon the City and other public agencies as a result of development occurring within the boundaries of the Community Facilities District. The cost of constructing, installing, rehabilitating and acquiring the Facilities includes incidental expenses consisting of the costs of planning and designing the Facilities, including the costs of environmental evaluations thereof, the cost of providing administrative and consultant services, all costs associated with the establishment of the Community Facilities District, the issuance of bonds, the determination of the amount of any special taxes to be levied, the cost of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District, together with any other expenses incidental to the funding, financing, construction, installation, rehabilitation, acquisition, completion and inspection of the Facilities. The description of the Facilities shown on Exhibit B is general in nature. The final nature and location of the Facilities will be determined upon the preparation of final plans and specifications which may show substitutes in lieu of, or modifications to, the proposed work. Any such substitution RES23452 shall not be deemed a change or modification of the Facilities so long as the substitution provides a service substantially similar to the Facilities shown on Exhibit B. Section 6. It is the intention of the City Council that, except where funds are otherwise available, a special tax sufficient to pay for the Facilities, including the payment of interest on and principal of bonds proposed to be issued to finance the Facilities and the repayment of funds advanced to the Community Facilities District, annual administration expenses of the City and the Community Facilities District in determining, apportioning, levying and collecting such special taxes, secured by recordation of a continuing lien against all non - exempt real property in the Community Facilities District, will be levied annually on land within the boundaries of the Community Facilities District. The rate and method of apportionment of such proposed special tax is set forth in Exhibit C, attached hereto and incorporated herein and made a part hereof. Exhibit C provides sufficient detail to allow each landowner or resident within the Community Facilities District to estimate the maximum amount that such person will have to pay for the Facilities. The special tax as apportioned to each parcel pursuant to Exhibit C is apportioned on the basis of benefit as determined by the City Council and as permitted by Section 53325.3 of the Act, and the apportionment of the special tax is not on or based upon the value or ownership of real property. In the event that property within the Community Facilities District is acquired or dedicated to a public agency subsequent to the date of formation of the Community Facilities District the special tax on such property will be released and such parcel will become exempt property under the provisions of the rate and method of apportionment for the Community Facilities District as to all future obligations to pay the special tax imposed by the Community Facilities District. Section 7. It is the intention of the City Council, pursuant to Section 53340 of the Act, to levy the proposed special tax on property that is not otherwise exempt from the proposed special tax and that is not acquired by a public entity through a negotiated transaction, or by gift or devise. Section 8. According to the Funding and Acquisition Agreement by and between the owner of the lands proposed to be included in the Community Facilities District (the "Owner ") dated February 12, 1990 (the "Funding and Acquisition Agreement "), the Owner deposited $100,000 as a proceedings deposit with the City to compensate the City for all costs incurred by the City in conducting proceedings for the formation of the Community Facilities District and the issuance of bonds (the "Proceedings Deposit "). Pursuant to Section 53314.9 of the Act, it is the intention of the City that the Proceedings Deposit, subject to refund of any unused portion, be reimbursed to the Owner as provided in the Funding and Acquisition Agreement from the proceeds of bonds issued by the Community Facilities District. Section 9. Notice is given that on the 10th day of September, 1990, at the hour of 7:30 o'clock p.m., in the City Council Chambers, City of Cypress, a public hearing will be RES23452 3 161 162 held at which the City Council shall consider the establishment of the Community Facilities District, the proposed rate and method of apportionment of the special tax, the proposed appropriations limit for the Community Facilities District and all other matters as set forth in this Resolution of Intention. At the above - mentioned time and place for such public hearing, any persons interested, including all taxpayers, property owners and registered voters within the Community Facilities District, may appear and be heard, and the testimony of all interested persons and taxpayers for or against the establishment of the Community Facilities District and the levy of the special tax, or the extent of the Community Facilities District, or the funding, financing, construction, installation, rehabilitation and acquisition of Facilities or the establishment of an appropriations limit, or any other matters set forth herein, will be heard and considered. Any protests may be made orally or in writing, except that any protests pertaining to the regularity or sufficiency of such proceedings shall be in writing and shall clearly set forth the irregularities and defects to which the objection is made. All written protests shall be filed with the City Clerk on or before the time fixed for such public hearing, and any written protest may be withdrawn in writing at any time before the conclusion of such public hearing. If written protests against the establishment of the Community Facilities District are filed by fifty percent (50 %) or more of the registered voters, or six (6) registered voters, whichever is greater, residing within the Community Facilities District, or owners of one -half (1/2) or more of the area of land proposed to be included within the Community Facilities District, the proceedings shall be abandoned. If said majority protest is limited to certain types of facilities or certain provisions of the special tax, those facilities or those provisions of the tax must be eliminated by the City Council. Section 10. If, following the public hearing described herein, the City Council determines to establish the Community Facilities District, proposes to levy a special tax within the Community Facilities District and proposes to establish an appropriations limit for the Community Facilities District, the City Council shall then submit the levy of the special tax to the qualified electors of the Community Facilities District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the territory of the Community Facilities District for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of the Community Facilities District, with each voter having one (1) vote. Otherwise, the vote shall be a mail - ballot election, consistent with Section 53327.5 of the Act, by the landowners of the Community Facilities District who are owners of record at the close of the public hearing, with each landowner having one (1) vote for each acre or portion of an acre of land owned within the Community Facilities District. The number of votes to be voted by a particular landowner shall be specified on the ballot provided to that landowner. RES23452 I. 6) Section 11. The City Engineer and the Special Tax Engineer, pursuant to Section 53321.5 of the Act, are hereby directed, at or before the time of such public hearing, to cause to be prepared and filed with the City Council a report or reports which shall contain a brief description of the Facilities by type which are required to adequately meet the needs of the Community Facilities District, and an estimate of the cost for providing the Facilities and an estimate of the incidental expenses related thereto. Such report(s) shall further contain any other material that is related to the Facilities or the Community Facilities District, including a proposed appropriations limit, and shall be made a part of the record of the public hearing to be held to consider establishing the Community Facilities District. Section 12. In the opinion of the City Council, the public interest will not be served by allowing the property owners in the Community Facilities District to enter into a contract pursuant to Section 53329.5(a) of the Act to do the work to be financed under the Community Facilities District. Section 13. Notice of the time and place of such public hearing shall be given by the City Clerk in the following manner: A Notice of Public Hearing required by Section 53322 of the Act in substantially the form of Exhibit D attached hereto, shall be published in a newspaper of general circulation published in the area of the proposed Community Facilities District, such publication to be made pursuant to Section 6061 of the Government Code, which publication shall be completed at least seven (7) days prior to the date set for such public hearing. PASSED AND ADOPTED by the City Council of the City of Cypress at an adjourned regular meeting held on the 6th day of August, 1990. Y R OF THE CITY OF C;+4PRESS ATTEST: CITY CLERK HE C%1rY OF CYPRESS RES23452 16 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at an adjourned regular meeting of the said City Council held on the 6th day of August, 1990, by the following roll call vote: AYES: 4 COUNCIL MEMBERS: Arnold, Bowman, Kanel and Kerry NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAINED: 1 COUNCIL MEMBERS:/) Age CITY L6k 0/ZCIT4ZOF CYPRESS 6 SHEET 1 OF 1 SHEETS EXHIBIT A PROPOSED BOUNDARIES MELLO ROOS COMMUNITY FACILITIES DISTRICT NO. 1 SORRENTO HOMES CITY OF CYPRESS, COUNTY OF ORANGE STATE OF CALIFORNIA I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARIES OF COMMUNITY FACIL1TIFS DISTRICT NO. 1, CITY OF CYPRESS, COUNTY OF ORANGE, CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL AT A REGULAR MEETING HELD ON THE DAY OF , 1990, BY THE ADOPTION OF RESOLUTION CITY CLERK CITY OF CYPRESS FILED IN THE OFFICE OF THE CTTY CLERK THIS _ DAY OF , 1990. LEGEND or A QTY CLERK CITY OF CYPRESS DISTRICT BOUNDARY ZONE A- MINIMUM 5000 SQUARE FOOT LOTS ZONE B- MINIMUM 6000 SQUARE FOOT LOTS JORANGE AVENUE w w z z w 0 REQUEST OF • DATE 165 TIME FEE $ INSTRUMENT 1 BOOK PAGE LEE A. BRANCH COUNTY RECORDER BY DEPUTY PREPARED UNDER THE SUPERVISION OF: JAMES B. SAUER LS. 4453 DATE: BALL ROAD w w 0 0 0 300 200 100 0 16f LEGAL DESCRIPTION MELLO -ROOS COMMUNITY FACILITIES DISTRICT NO. 1 (SORRENTO HOMES) A parcel of land containing 143.9 gross acres, more or less, described as follows: The southeast quarter of Section 17, Township 4 South, Range 11 West in the Rancho Los Coyotes, as shown on a map recorded in Book 51, page 11 of Miscellaneous Maps, records of Orange County, California. Excepting therefrom the West 20.00 acres of the Northwest quarter of the Southeast quarter of said Section 17. Also excepting therefrom the public rights of way dedicated for Orange Avenue, Moody Street, Sall Road and Denni Street as shown per Vesting Tentative Tract Map No. 13228. Exhibit A - Page 2 16 EXHIBIT B COMMUNITY FACILITIES DISTRICT REPORT COMMUNITY FACT ITIES DISTRICT NO. 1 (Sorrento Homes) City of Cypress DESCRIPTION OF FACILITIES The Facilities proposed to be financed by the District consist of infrastructure and rehabilitation of school facilities required for development of the area. These are area -wide improvements which are required to permit development consistent with a residential land use. Based on current City service requirements, the following series of backbone improvements have been identified. The District will fund construction, installation and rehabilitation of the following items together with appurtenances and appurtenant work: Parkway Landscaping Includes soil preparation, finish grading, automatic irrigation, sodded turf, and ground covers (rooted cuttings, shrubs and vines, and trees) for perimeter streets, the on -site collector street, and entry monumentation. On -Site Streets Includes curb and gutter, local depression, sidewalk, drive approach, access ramp, grading, asphalt concrete, aggregate base, and street signs for all interior streets, including internal collector street. 165 Traffic Steals and Safety Lighting Includes new traffic signalization for Ball Road at Sorrento Drive and Moody Street at Sorrento Drive and modifications of existing traffic signals at Ball Road /Moody Street, Orange Avenue /Moody Street and Ball Road /Denni Street required for development of the area. Sewer System Includes vitrified clay pipe main lines and laterals and manholes in all on -site streets. Storm Drain System Includes RCP main lines and laterals, junction structures, manholes and catch basins in all on -site streets. School Facilities Fees Anaheim High School District fees are to be used for rehabilitation of school facilities. Incidentals and Fees Drainage fees, design and engineering, along with the costs necessary to form the District and sell bonds. This description of the public capital facilities is general in nature. The final nature and location of improvements and facilities will be determined upon the preparation of final plans and specifications. The final plans and specifications may show substitutes in lieu of, or modifications to, proposed work. Any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service substantially similar to that as set forth in this Report. 169 EXHIBIT C COMMUNITY FACILITIES DISTRICT REPORT COMMUNITY FACILITIES DISTRICT NO. 1 (Sorrento Homes) City of Cypress MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Introduction The special tax to be levied upon each assessor's parcel in Community Facilities District No. 1 (Sorrento Homes) ( "CFD" or 'District ") of the City of Cypress shall be levied by the District by application of the appropriate rate as described below. All of the property in the CFD, unless exempt by law or by the provisions herein, shall be taxed for the purposes, to the extent, and in the manner herein provided. This Exhibit D conforms to the Rate and Method of Apportionment of Special Tax contained in the Resolution of Intention adopted by the City Council and the ballot to be voted on by the landowner, however, in the event of discrepancies between this Exhibit D and Resolutions or the ballot, the resolutions and /or ballot will control. Definitions The terms used in this Exhibit have the following meaning: "Acre" or "Acreage" The area of a parcel as shown on an assessor parcel map, a recorded tract or Parcel Map, or other recorded map, or as determined by the City Engineer. "Alternate Maximum Special Tax Rate" A tax that may be levied against the area of a parcel in the event that the maximum special tax for developed and undeveloped property is insufficient. 170 "Amount of Annual Levy" The amount necessary to pay interest and principal of the bonds, replenish bond reserves, and to fund incidental and /or administrative expenses previously incurred or estimated to be incurred in the current Fiscal Year. The administrative expenses shall not exceed 520,000 a year escalating 3% each year beginning Fiscal Year 1992 -93. The amount of the above shall be reduced by any bond reserve earnings except those earnings that may be required for rebate purposes. "Bond Year" The period beginning the day after a bond principal payment date and ending with the following bond principal payment date. "Developed Property" Assessor Parcels in the CFD for which a subdivision map has been recorded prior to March 1 of the preceding Fiscal Year for sale of residential or non- residential lots. "Exempt Property" Parcels shown on the Vesting Tentative Tract Map 13228, that meet, or upon final recordation will meet, one of the following conditions are exempt from the annual levy of the special tax. 1. Property owned by a public agency or which is in public use (such as streets, sewer easements, etc.) 2. Property which is an unmanned utility property 3. Property irrevocably dedicated to a public agency for a public use 4. Property designated as park or as open space S. Other property which has no intrinsic value upon foreclosure, such as sliver parcels at entries, monuments, landscaped parcels on a perimeter, etc. 6. Property exempt by operation of law. "Fiscal Year" The period starting July 1 and ending the following June 30. "Full Development" 1'71 Occurs when the last subdivision or parcel map is recorded to allow construction of 671 units (or such adjusted number of units allowed by the City of Cypress) within the CFD. "Maximum Special Tax Rate" The maximum tax rate that may be levied by the District in any Fiscal Year for each class of Developed Property and Undeveloped Property. "SFR" A single family residence which is not attached to another residential unit. "Taxable Property" All property within the CFD which is not Exempt Property. "Undeveloped Property" All property within the CFD not classified as Developed Property or Exempt Property. 'Zone A Lot" A lot designated in the Sorrento Specific Plan and the Vesting Tentative Tract Map 13228 as a minimum 5,000 square foot lot and shown on the District Boundary Map as a part of Zone A. "Zone B Lot" A lot designated in the Sorrento Specific Plan and the Vesting Tentative Tract Map 13228 as a minimum 6,000 square foot lot and shown on the District Boundary Map as part of Zone B. Maximum Special Tax Rate, Undeveloped Property The Maximum Special Tax Rate for Undeveloped Property shall be S20,000 per Acre per year as shown in Table 1. 3 Developed Property The Maximum Special Tax Rate for Developed Property shall be the Maximum Special Tax Rate as shown in Table 1 or, if the conditions of paragraph 4, under Method of Apportionment of Special Tax apply, Alternate Maximum Special Tax Rate of $0.4302 per parcel square foot. See the Method of Apportionment of Special Tax for further detail. Table 1 Maximum Special Tax Rate Maximum Special Category Classification Tax Rate 0 Undeveloped per Acre S20,000 1 Developed per Zone A Lot 2,151 2 Developed per Zone B Lot 2,581 3 Exempt 0 Method of Apportionment of Special Tax The District will determine the Amount of Annual Levy for the Fiscal Year to be collected from Taxable Property in the CFD for that Fiscal Year. Such determination will begin with the Fiscal Year following District formation. The District will levy the special tax as follows: 1. All property will be classified as Developed Property, Undeveloped Property, or Exempt according to the categories listed on Table 1 as of March 1 of the preceding fiscal year. 2. The special tax shall be levied on each parcel of Developed Property at the Maximum Special Tax Rate for Developed Property from Table 1. 1'7 3 3. The total of 2. shall be subtracted from the Amount of Annual Levy: a. if the Amount of Annual Levy is less than the total of 2., then the special tax on Developed Property shall be reduced, pro rata, to the Amount of Annual Levy. b. if the Amount of Annual Levy is more than the total of 2., then the special tax shall be levied upon Undeveloped Property pro rata on an Acreage basis, to the extent necessary, when added to the total of 2. to equal the Amount of Annual Levy, but not to exceed the Maximum Special Tax Rate for Undeveloped Property. 4. If the Maximum Special Tax Rates for Developed Property and Undeveloped Property, when applied, produce an amount less than the Amount of Annual Levy, then the Alternate Maximum Special Tax Rate shall be used in the manner described below. a. Determine the Alternate Maximum Special Tax for each parcel of Developed and Undeveloped Property by multiplying the parcels' square feet by the Alternate Maximum Special Tax Rate of $0.4302 per parcel square foot. b. Compare the sum of the Alternate Maximum Special Tax from a., to the Amount of Annual Levy. If the Alternate Maximum Special Tax is greater than the Amount of Annual Levy, reduce the Alternate Maximum Special Tax per parcel, pro rata, on a parcel square footage basis, but not lower than the Maximum Special Tax Rates shown in Table 1. Discharge of Special Tax Obligation Any owner of property subject to the special tax may discharge the special tax obligation in full, partial discharge is not permitted, by making payment as follows: 1. Prior to Full Development of all parcels within the CFD: a. Compute the present value of the remaining payments of special tax at the average coupon rate of the outstanding bonds using the Maximum Special Tax Rate for the parcel; 17 -3 b. To the result of a. add; i) call premium as required in the bond instrument; ii) interest on a. at the applicable bond rate for each year, if any, to the next bond call date; unpaid special taxes which have been entered on the assessor's roll; iv) a $250 administrative fee; and v) subtract the parcel's pro rata share of the bond reserve fund. c. To the result of a. and b. subtract the interest earnings to be generated at the reinvestment rate as determined by the District and from the discharge date to the next bond call date. 2. After Full Development of all parcels within the CFD: a. Divide the special tax of the parcel for the first Fiscal Year, for which the special tax obligation is to be discharged, by the total special tax for all parcels for the Fiscal Year. b. Multiply the bond principal to be outstanding at the end of the current bond year, by the quotient obtained in a. c. To the result of b. add; i) call premium as required in the bond instrument; ii) interest on b. at the applicable bond rate for each year, if any, to the next bond call date; iii) unpaid special taxes which have been entered on the assessor's roll; iv) a $250 administrative fee; and v) subtract the parcel's pro rata share of the bond reserve fund. d. To the result of b. and c., subtract the interest earnings to be generated at the reinvestment rate as determined by the District and from the discharge date to the next bond call date. Manner of Collection The special tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that the special tax may be collected at a different time or in a different manner if necessary to meet its financial obligations. The special tax shall be subject to the same penalties and procedures, sale and lien priority in 1/5 case of delinquency as is provided for ad valorem taxes. In the event of a delinquency, the District will pursue foreclosure in a timely manner. Review /Appeal Council The District shall establish as part of its proceedings and administration of the special tax a three- member Review /Appeal Council which shall consist of those persons currently holding the positions of City Manager, Finance Director, and Director of Planning for the City of Cypress. Any owner subject to the special tax who desires to protest the accuracy of the amount of the special tax imposed on the owner's parcel may file a notice with the Review /Appeal Council, appealing the amount of the special tax assigned to such parcel. The Review /Appeal Council shall make determinations relative to the annual administration of the special tax pursuant to this Rate and Method of Apportionment of the Special Tax and of any owner appeals hereunder, as herein specified and shall perform the duties specified in Sec. 53340.2 Gov., C.A., as amended. The annual roll of special tax levy obligations shall be presented to the District and placed on the Consent Calendar of the appropriate meeting for action by the District's governing body. Any owner of property subject to the lien of the special tax may appeal the determination of the Review /Appeal Council to the District's governing body. 176 EXHIBIT D NOTICE OF PUBLIC HEARING CITY OF CYPRESS Community Facilities District No. 1 (Sorrento Homes) Notice is hereby given that on , 1990, the City Council of the City of Cypress adopted a Resolution entitled "Resolution of the City Council of the City of Cypress Declaring its Intention to Establish a Community Facilities District and to Levy a Special Tax to Pay for Certain Public Facilities in and for Proposed Community Facilities District No. 1 (Sorrento Homes) ". Pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act ") the City Council of the City of Cypress hereby gives notice as follows: A. The text of said Resolution is as follows: WHEREAS, a Petition requesting the institution of proceedings for formation of a community facilities district signed by the landowners within the proposed community facilities district has been received and filed with the City Clerk of the City of Cypress (the "City "); and WHEREAS, the City Council of the City (the "City Council ") has duly considered the advisability and necessity of instituting proceedings to establish a community facilities district under and pursuant to the terms and provisions of the "Mello -Roos Community Facilities Act of 1982 ", as amended, (the "Act "), being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and WHEREAS, the City Council has adopted Resolution No. on , 1990, wherein it received and filed such petition; and WHEREAS, the City Council has determined to institute proceedings for the establishment of such community facilities district, and has determined to set forth the boundaries of the territory which is proposed for inclusion in such community facilities district and to state the public facilities to be provided in and for such community facilities district, and has determined to set a date time and place for a public hearing relating to the establishment of such community facilities district and the levy of a special tax therein to pay for such public facilities; and WHEREAS, the City Council has determined it is advisable to establish an appropriations limit, as defined by Article XIIIB, Section 8(h) of the California Constitution, for the community facility district; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CYPRESS, AS FOLLOWS: correct. RES23452 Section 1. All of the above recitals are true and -1- 177 Section 2. The Petition is hereby accepted and proceedings are initiated pursuant to the authorization of Sections 53316 and 53318 of the Act. Section 3. It is the intention of the City Council to and the City Council hereby proposes to establish a community facilities district under and pursuant to the terms and provisions of the Act, the boundaries of the territory proposed for inclusion in such community facilities district are more particularly described and shown on that certain map entitled "Proposed Boundaries, Mello Roos Community Facilities District No. 1 (Sorrento Homes) City of Cypress, County of Orange, State of California" that has been filed with the City Clerk of the City and a copy of which, together with a legal description of such territory, is attached hereto as Exhibit A and incorporated herein and made a part hereof. The City Clerk is hereby authorized and directed to endorse the Certificate on said map evidencing the date and adoption of this resolution and is further authorized and directed to file said map with the County Recorder of the County of Orange in accordance with the provisions of Section 3111 of the California Streets and Highways Code within 15 days of the adoption of this resolution and not later than 15 days prior to the date of the public hearing as set forth in Section 10 hereof. Section 4. The communities facilities district proposed to be established shall be known and designated as "Community Facilities District No. 1" (Sorrento Homes) (the "Community Facilities District "). Section 5. It is the intention of the City Council to order the funding, financing, construction, installation, rehabilitation and acquisition of certain public facilities and appurtenances including streets and highways, drainage facilities, sewer facilities, traffic and safety lighting facilities parkway landscaping improvements, and school facilities, together with appurtenances and appurtenant work, including equipment, real property and other tangible property with an estimated useful life of five (5) years or longer to serve properties within the Community Facilities District (the "Facilities "), which are public facilities that the City or a public agency is authorized by law to contribute revenue to or to construct, own or operate. A description of the types of Facilities to be funded, financed, constructed, installed, rehabilitated or acquired is set forth in Exhibit B, attached hereto and incorporated herein and made a part hereof. The Facilities to be funded, financed, constructed, installed, rehabilitated or acquired by or on behalf of the Community Facilities District are necessary to meet present or increased demand upon the City and other public agencies as a result of development occurring within the boundaries of the Community Facilities District. The cost of constructing, installing, rehabilitating and acquiring the Facilities includes incidental expenses consisting of the costs of planning and designing the Facilities, including the costs of environmental evaluations thereof, the cost of providing administrative and consultant services, all costs associated with the establishment of the Community Facilities District, the issuance of bonds, the determination of the amount of any special taxes to be levied, the cost of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District, RES23452 -2- together with any other expenses incidental to the funding, financing, construction, installation, rehabilitation, acquisition, completion and inspection of the Facilities. The description of the Facilities shown on Exhibit B is general in nature. The final nature and location of the Facilities will be determined upon the preparation of final plans and specifications which may show substitutes in lieu of, or modifications to, the proposed work. Any such substitution shall not be deemed a change or modification of the Facilities so long as the substitution provides a service substantially similar to the Facilities shown on Exhibit B. Section 6. It is the intention of the City Council that, except where funds are otherwise available, a special tax sufficient to pay for the Facilities, including the payment of interest on and principal of bonds proposed to be issued to finance the Facilities and the repayment of funds advanced to the Community Facilities District, annual administration expenses of the City and the Community Facilities District in determining, apportioning, levying and collecting such special taxes, secured by recordation of a continuing lien against all non - exempt real property in the Community Facilities District, will be levied annually on land within the boundaries of the Community Facilities District. The rate and method of apportionment of such proposed special tax is set forth in Exhibit C, attached hereto and incorporated herein and made a part hereof. Exhibit C provides sufficient detail to allow each landowner or resident within the Community Facilities District to estimate the maximum amount that such person will have to pay for the Facilities. The special tax as apportioned to each parcel pursuant to Exhibit C is apportioned on the basis of benefit as determined by the City Council and as permitted by Section 53325.3 of the Act, and the apportionment of the special tax is not on or based upon the value or ownership of real property. In the event that property within the Community Facilities District is acquired or dedicated to a public agency subsequent to the date of formation of the Community Facilities District the special tax on such property will be released and such parcel will become exempt property under the provisions of the rate and method of apportionment for the Community Facilities District as to all future obligations to pay the special tax imposed by the Community Facilities District. Section 7. It is the intention of the City Council, pursuant to Section 53340 of the Act, to levy the proposed special tax on property that is not otherwise exempt from the proposed special tax and that is not acquired by a public entity through a negotiated transaction, or by gift or devise. Section 8. According to the Funding and Acquisition Agreement by and between the owner of the lands proposed to be included in the Community Facilities District (the "Owner ") dated February 12, 1990 (the "Funding and Acquisition Agreement "), the Owner deposited $100,000 as a proceedings deposit with the City to compensate the City for all costs incurred by the City in conducting proceedings for the formation of the Community Facilities District and the issuance of bonds (the "Proceedings Deposit "). Pursuant to Section 53314.9 of the Act, it is the intention of the City RES23452 -3- 179 that the Proceedings Deposit, subject to refund of any unused portion, be reimbursed to the Owner as provided in the Funding and Acquisition Agreement from the proceeds of bonds issued by the Community Facilities District. Section 9. Notice is given that on the 10th day of September, 1990, at the hour of 7:30 o'clock p.m., in the City Council Chambers, City of Cypress, a public hearing will be held at which the City Council shall consider the establishment of the Community Facilities District, the proposed rate and method of apportionment of the special tax, the proposed appropriations limit for the Community Facilities District and all other matters as set forth in this Resolution of Intention. At the above - mentioned time and place for such public hearing, any persons interested, including all taxpayers, property owners and registered voters within the Community Facilities District, may appear and be heard, and the testimony of all interested persons and taxpayers for or against the establishment of the Community Facilities District and the levy of the special tax, or the extent of the Community Facilities District, or the funding, financing, construction, installation, rehabilitation and acquisition of Facilities or the establishment of an appropriations limit, or any other matters set forth herein, will be heard and considered. Any protests may be made orally or in writing, except that any protests pertaining to the regularity or sufficiency of such proceedings shall be in writing and shall clearly set forth the irregularities and defects to which the objection is made. All written protests shall be filed with the City Clerk on or before the time fixed for such public hearing, and any written protest may be withdrawn in writing at any time before the conclusion of such public hearing. If written protests against the establishment of the Community Facilities District are filed by fifty percent (50 %) or more of the registered voters, or six (6) registered voters, whichever is greater, residing within the Community Facilities District, or owners of one -half (1/2) or more of the area of land proposed to be included within the Community Facilities District, the proceedings shall be abandoned. If said majority protest is limited to certain types of facilities or certain provisions of the special tax, those facilities or those provisions of the tax must be eliminated by the City Council. Section 10. If, following the public hearing described herein, the City Council determines to establish the Community Facilities District and proposes to levy a special tax within the Community Facilities District, proposes to establish an appropriations limit for the Community Facilities District, the City Council shall then submit the levy of the special tax to the qualified electors of the Community Facilities District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the territory of the Community Facilities District for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of the Community Facilities District, with each voter having one (1) vote. Otherwise, the vote shall be a mail - ballot election, consistent with Section 53327.5 of the Act, by the landowners of the Community Facilities District who are owners of record at the close of the public hearing, with each landowner having one (1) vote for each acre or RES23452 -4- 1() portion of an acre of land owned within the Community Facilities District. The number of votes to be voted by a particular landowner shall be specified on the ballot provided to that landowner. Section 11. The City Engineer and the Special Tax Engineer, pursuant to Section 53321.5 of the Act, are hereby directed, at or before the time of such public hearing, to cause to be prepared and filed with the City Council a report or reports which shall contain a brief description of the Facilities by type which are required to adequately meet the needs of the Community Facilities District, and an estimate of the cost for providing the Facilities and an estimate of the incidental expenses related thereto. Such report(s) shall further contain any other material that is related to the Facilities or the Community Facilities District, including a proposed appropriations limit, and shall be made a part of the record of the public hearing to be held to consider establishing the Community Facilities District. Section 12. In the opinion of the City Council, the public interest will not be served by allowing the property owners in the Community Facilities District to enter into a contract pursuant to Section 53329.5(a) of the Act to do the work to be financed under the Community Facilities District. Section 13. Notice of the time and place of such public hearing shall be given by the City Clerk in the following manner: A Notice of Public Hearing required by Section 53322 of the Act in substantially the form of Exhibit D attached hereto, shall be published in a newspaper of general circulation published in the area of the proposed Community Facilities District, such publication to be made pursuant to Section 6061 of the Government Code, which publication shall be completed at least seven (7) days prior to the date set for such public hearing. B. The time and place established in said Resolution for the public hearing under the Act is September 10, 1990, at the hour of 7:30 o'clock p.m., in the regular meeting place of the City Council of the City of Cypress, 5275 Orange Avenue, Cypress, California 90630. C. At that time and place any person interested, including persons owning property in the area of the proposed Community Facilities District, will be heard upon the proposed Community Facilities District. Dated: RES23452 /s/ City Clerk -5-