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HomeMy WebLinkAbout12/15/2010 - STAFF REPORTS - 2.O. A.��P A`M SAS iy V u+ R OpATFp c4LPO CITY COUNCIL STAFF REPORT DATE: DECEMBER 15, 2010 CONSENT SUBJECT: ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS REPEALING ORDINANCE NO. 1672 AND DISSOLVING COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS FROM: David H. Ready, City Manager BY: Douglas Holland, City Attorney SUMMARY This Ordinance repeals Ordinance No. 1672, which created Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs, and dissolves Community Facilities District No. 2005-2. RECOMMENDATION: Waive reading and introduce "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS REPEALING ORDINANCE NO. 1672 AND DISSOLVING COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS." STAFF ANALYSIS: In 2005 the City Council, at the request of the developer of the Escena project, formed Community Facilities District No. 2005-02 to finance the construction and acquisition of various public improvements necessary to serve the Escena development and its residents. The District was never funded and did not incur any bonded indebtedness to finance the construction and acquisition of the improvements. The required improvements were financed entirely by the developer and its successors. The improvements have been installed and constructed and it is no longer necessary to maintain this community facilities district. The recommended action will dissolve Community Facility District 2005-02 (Escena) and cancel the special tax lien that has been recorded on all properties within the Escena development project. AI fr � F,�, .i�.•— ouglas Ho and David Ready City Attorney City Manager Attachment: Proposed Ordinance p r�� �.0 . ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS REPEALING ORDINANCE NO. 1672 AND DISSOLVING COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS. City Attorney Summary This Ordinance repeals Ordinance No. 1672 which created Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs. This Ordinance dissolves Community Facilities District No. 2005-2. The City Council of the City of Palm Springs finds: A. On July 20, 2005, the City Council of the City of Palm Springs (the "City Council"), adopted Resolution No. 21381 (the "Resolution of Intention to Establish the District") stating its intention to form Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs (the "District") pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code (the "Government Code"), commonly known as the "Mello-Roos Community Facilities Act of 1982," as amended (the "Act"). B. On July 20, 2005, the City Council also adopted Resolution No. 21382 (the "Resolution of Intention to Incur Bonded Indebtedness") stating its intention to incur bonded indebtedness in an amount not to exceed $21,000,000 within the District for the purpose of financing the construction and acquisition of certain facilities (the "Facilities"), and incidental expenses related thereto as authorized by the Act (the "Incidental Expenses"), including, but not limited to, the cost of planning and designing the Facilities, the costs associated with the creation of the District, issuance of the bonds, determination of the amount of and collection of taxes, the payment of taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District, and any other expenses incidental to the construction, completion and inspection of the Facilities, all as more fully described in the Resolution of Intention to Establish the District. C. Notice was published as required by law relative to the intention of the City Council to form the proposed District and to incur bonded indebtedness in an amount not to exceed $21,000,000 within the District. D. On October 5, 2005, the City Council held a noticed public hearing , consistent with the provisions of the Act, as required by law, (1) to determine whether it should proceed with the formation of the District and authorize the rate and method of apportionment of a special tax to be levied within the District for the purposes of paying for the Facilities and the Incidental Expenses relating thereto and the costs associated with the bonded indebtedness proposed to be issued to finance the Facilities, including Ordinance No. Page 2 the principal of and interest on the proposed bonded indebtedness, and (2) on the proposed issuance of the bonded indebtedness. E. At the hearing of October 5, 2005, all persons desiring to be heard on all matters pertaining to the formation of the District, the levy of the special tax, the proposed issuance of the bonded indebtedness, and all other matters set forth in the Resolution of Intention to Incur Bonded Indebtedness, were heard and considered and a full and fair hearing was held thereon. F. The City Council, subsequent to said hearing, adopted Resolution Nos. 21416 and 21417 which, taken together, formed the District, determined the necessity of incurring bonded indebtedness in an amount not to exceed $21,000,000, and called a special election for October 5, 2005 on the proposition of levying special taxes, incurring bonded indebtedness, and establishing an appropriations limit (collectively, the "Resolution Calling Election")- G. On October 5, 2005, in accordance with the Resolution Calling Election, a consolidated election was held within the District in which the qualified electors approved by more than two-thirds vote the propositions of incurring bonded indebtedness, levying a special tax and establishing an appropriations limit within the District. H. The City Council, subsequent to the consolidated election, adopted Resolution No. 21418, which certified the results of the election, ordered the levy of the special tax within the District, authorized the issuance of bonded indebtedness, and directed the recording of a Notice of Special Tax Lien. I. On October 19, 2005, the City Council adopted Ordinance No. 1672 (the "Ordinance Authorizing the Levy of the Special Tax") that authorizes the levy of a special tax consistent with the rate and method of apportionment that the qualified electors approved at the consolidated election held on October 5, 2005. J. On October 20, 2005, the Clerk of the City Council caused to be recorded with the Office of the Recorder for the County of Riverside a "Notice of Special Tax Lien" (the "Notice of Special Tax Lien") that bears Document No. 2005-0867366. K. The District has not incurred bonded indebtedness to finance the construction of the Facilities. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS: SECTION 1. The above recitals are all true and correct and this City Council so finds and determines. SECTION 2. By the passage of this Ordinance, the City Council finds that (i) no bonded indebtedness has been or will be incurred by the District to finance the construction of the Facilities, (ii) all of the outstanding assessments of the City of Palm Ordinance No. Page 3 Springs Assessment District No. 155 have been paid in full and, therefore, there is no lien of Assessment District No. 155 to be paid from the proceeds of District bonds, and (iii) there is no outstanding debt of any kind for which the District is obligated to pay. SECTION 3. The City Council finds that the District is not authorized to levy the special tax in the District due to (i) the special findings set forth in Section 2 of this Resolution, (ii) the completion of the Facilities, and (iii) the waiver by the Landowner of any right to payment of the acquisition prices of, or reimbursement for, the completed Facilities, or for any other payments from the bonded indebtedness. SECTION 4. By the passage of this Ordinance, the City Council repeals Ordinance No. 1672 adopted on October 19, 2005, and any concurrent or subsequent Ordinance of the City confirming the establishment of CFD 2005-2. SECTION 5. By the passage of this Ordinance, the City Council dissolves "Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs" and all associated liens. SECTION 6. This Ordinance relating to the dissolution of the District and the repeal of the Ordinance authorizing the levy of the special tax shall take effect immediately upon its final passage as authorized under Section 53338.5 of the Government Code. SECTION 7. The City Clerk of the City is authorized and directed to execute a Notice of Cancellation of Special Tax Lien for CFD No. 2005-2, substantially in the form attached hereto as Exhibit "A". SECTION 8. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provision of law, and this Ordinance shall take effect thirty (30) days after adoption. PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS THIS 5TH DAY OF JANUARY, 2011. ATTEST: STEPHEN P. POUGNET, MAYOR JAMES THOMPSON, CITY CLERK Ordinance No. Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 15t" day of December, 2010, and adopted at a regular meeting of the City Council held on the 5tn day of January, 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California EXHIBIT A RECORDING REQUESTED BY: COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) of the CITY OF PALM SPRINGS 3200 EAST TAHQUITZ CANYON WAY PALM SPRINGS,CALIFORNIA 92262 AND RETURN TO: CITY OF PALM SPRINGS 3200 EAST TAHQUITZ CANYON WAY PALM SPRINGS,CALIFORNIA 92262 Attn: City Clerk (Space Above Line for Recorder's Use) NOTICE OF DISSOLUTION AND CANCELLATION OF SPECIAL TAX LIEN FOR COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS NOTICE IS HEREBY GIVEN by the City of Palm Springs that Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs ("CFD No. 2005-2") and the lien for special taxes encumbering all of the parcels within CFD No. 2005-2 have been dissolved pursuant to Section 53338.5 of the California Government Code. This Notice of Dissolution and Cancellation Special Tax Lien for CFD No. 2005-2 hereby amends the NOTICE OF SPECIAL TAX LIEN FOR COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS recorded with the Riverside County Recorder's office on December 20, 2005, as Document No. 2005-0867366. NOTICE IS HEREBY GIVEN BY CFD NO. 2005-2 THAT UPON RECORDING OF THIS NOTICE OF DISSOLUTION AND CANCELLATION OF SPECIAL TAX LIEN, THE ABOVE-DESCRIBED LIEN FOR SPECIAL TAXES IS HEREBY CANCELLED AS AGAINST ALL OF THE PROPERTY WITHIN THE BOUNDARIES OF CFD NO. 2005-2, INCLUDING THE FOLLOWING DESCRIBED PROPERTIES: That real property located within the County of Riverside, State of California, described in Exhibit "A", attached hereto and incorporated herein by this reference. Reference is made to the Boundary Map of Community Facilities District No. 2005-2, recorded on July 28, 2005, in Book 63, page 60, of Maps of Community Facilities Districts and Assessment District, as Instrument No. 2005-0605183, in the Office of the Recorder for the County of Riverside, State of California, which map is now the final boundary map of Community Facilities District No. 2005-2. DATE: January 5, 2011 City Clerk of the City of Palm Springs ri STATE OF CALIFORNIA ) ) ss COUNTY OF RIVERSIDE ) On before me, (here insert name and title of the officer), personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) EXHIBIT "A" LISTING OF PROPERTIES AND OWNERS IN CFD NO. 2005-2 2.0. PROPOSED ORDINANCE DISSOLVING COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) AND TERMINATING THE LEVY OF SPECIAL TAXES WITHIN SAID DISTRICT: RECOMMENDATION: 1) Waive reading of the full text of the Ordinance, and introduce by title only; and 2) Introduce for first reading Ordinance No. "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2005-02 (ESCENA). MATERIALS TO FOLLOW ITEM NO. 'Z .