HomeMy WebLinkAbout10/5/2005 - STAFF REPORTS (2) °gyp ALM Sp?
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City Council Staff Report
CITY COUNCIL OCTOBER 5, 2005
PUBLIC HEARING
SUBJECT: CONSIDERATION OF THE FORMATION OF COMMUNITY
FACILITIES DISTRICT NO. 2005-2 (ESCENA) CITY OF
PALM SPRINGS; AND TO INCUR BONDED
INDEBTEDNESS IN THE AMOUNT NOT TO EXCEED
$21 ,000,000
FROM: David H. Ready, City Manager
BY: Finance Department and Public Works & Engineering Department
SUMMARY
Lennar Homes of California, Inc., filed an application for the formation of a
Community Facilities District encompassing approximately 1,150 lots in the
development known as Escena, requesting the City's issuance of special tax
bonds to fund certain development fees and public improvements associated
with the development, and to pay off the existing lien against this property related
to Assessment District No. 155. The property was purchased by Palm Springs
Classic, LLC, of which Lennar Homes of California, Inc., is its Manager. A
portion of the property has been sold to MW Housing Partners III, L.P., and to
Standard Pacific Corp. The development of the property will occur in two
phases, the first of is comprised of approximately 550 detached homes, and a
second phase comprised of approximately 600 attached homes.
On April 6, 2005, City Council approved further processing of the application for
formation of the Community Facilities District pursuant to the Mello-Roos
Community Facilities Act of 1982 for the Escena project. On June 1, 2005, City
Council approved contract service agreements with Albert A. Webb Associates
for the special tax consulting services, and with Harris Realty Appraisal for the
appraisal consultant services, necessary to provide professional services related
to the proposed formation of the Community Facilities District. On July 20, 2005,
City Council approved a Resolution of Intention to establish the Community
Facilities District ("CFD") which identified the area of land encompassing the CFD
and approved the special tax formula. At this meeting the City Council also
approved a Resolution of Intention to incur bonded indebtedness for this CFD
and approved a reimbursement agreement with the developer. The City Council /�
Item No. 1 A
City Council Staff Report
October 5, 2005— Page 2
Formation of CFD 2005-2
scheduled a formal public hearing on September 7, 2005, related to the formation
of the CFD and to conduct a special election of property owners within the CFD
to approve the levy of a special tax. All of the property owners within the CFD
have filed written waivers of the time period for conducting the election pursuant
to Section 53326 of Act, in order for the CFD to conduct the special election on
September 7, 2005. At the request of the property owners, the public hearing
was opened on September 7, 2005, and subsequently continued to October 5,
2005.
The actions proposed with this item will approve certain agreements relating to
the financing of the facilities and conclude the formation proceedings of the
proposed CFD. After the public hearing has been held, and all public testimony
heard, an election will be called and held and the ballots from property owners
within the CFD will be opened and counted by the City Clerk. The proposition for
the election requires a two-thirds vote in favor of the proposition to pass. Each
property owner will receive one vote for each acre or portion thereof in the
District. Assuming the election to form the CFD and levy the special taxes is
approved, the City Council then will consider introducing for first reading the
ordinance authorizing the levy of the special tax. At a subsequent meeting, the
City Council will consider approving documents in connection with the issuance
of special tax bonds in an amount not to exceed $15,000,000 for the first phase
of development in the CFD.
RECOMMENDATION
1. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS APPROVING AND ORDERING THE
EXECUTION OF THAT CERTAIN JOINT COMMUNITY FACILITIES
AGREEMENT WITH PALM SPRINGS CLASSIC, LLC AND DESERT
WATER AGENCY; AND MAKING CERTAIN FINDINGS AND
DETERMINATIONS IN CONNECTION THEREWITH."
2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS DETERMINING THE VALIDITY OF PRIOR
PROCEEDINGS, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO.
2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS; AUTHORIZING THE
LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT
NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS; ESTABLISHING
AN APPROPRIATIONS LIMIT; AND TAKING CERTAIN OTHER ACTIONS
RELATING TO SAID DISTRICT."
3. Adopt Resolution No. _, "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY
OF PALM SPRINGS, CALLING A SPECIAL ELECTION TO SUBMIT TO THE
QUALIFIED ELECTORS WITHIN SAID DISTRICT THE QUESTION OF
City Council Staff Report
October 5, 2005—Page 3
Formation of CFD 2005-2
LEVYING OF A SPECIAL TAX AND ISSUANCE OF BONDED
INDEBTEDNESS WITHIN THE DISTRICT."
4. Following public testimony, if any, at the Public Hearing, direct the City Clerk
to open and tabulate all valid ballots received by the City Clerk related to the
formation of Community Facilities District 2005-2 (Escena) of the City of Palm
Springs, and to announce the results of the special election.
5. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY
OF PALM SPRINGS, DECLARING THE RESULTS OF A SPECIAL
ELECTION ORDERING THE LEVYING OF A SPECIAL TAX WITHIN THE
DISTRICT; AUTHORIZING THE ISSUANCE OF BONDED INDEBTEDNESS;
AND DIRECTING THE RECORDING OF A NOTICE OF SPECIAL TAX
LIEN."
6. Adopt Resolution No. _, "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, APPROVING AND ORDERING THE
EXECUTION OF THAT CERTAIN ACQUISITION AND FUNDING
AGREEMENT RELATING TO COMMUNITY FACILITIES DISTRICT NO.
2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS; AND MAKING
CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION
THEREWITH."
7. Introduce First Reading of Ordinance No. , "AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF PALM SPRINGS ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA) OF THE CITY OF PALM SPRINGS AUTHORIZING THE LEVY
OF SPECIAL TAXES WITHIN SAID DISTRICT."
8. Authorize the City Manager and Director of Finance to execute all necessary
documents.
STAFF ANALYSIS:
On April 6, 2005 City Council approved further processing of an application
submitted by Palm Springs Classic, LLC, and Lennar Homes of California, Inc.,
its Manager, ("Lennar"), for formation of a Community Facilities District pursuant
to the Mello-Roos Community Facilities Act of 1982 (the "Act") for the Escena
project (see April 6, 2005, staff report). This proposed CFD has been formally
identified as Community Facilities District 2005-2 (Escena) of the City of Palm
Springs ("CFD 2005-2"), see Attachment 1 (April 6, 2005, staff report).
On June 1, 2005, City Council approved a contract services agreement to
perform special tax consulting with Albert A. Webb Associates, as well as a
contract services agreement to perform appraisal services with Harris Realty
City Council Staff Report
October 5, 2005—Page 4
Formation of CFD 2005-2
Appraisal for professional services related to CFD 2005-2. These services were
necessary to provide the City with information related to CFD 2005-2, namely, a
special tax analysis, identified as the "Rate and Method of Apportionment for
Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs"
(the "RMA"), and an appraisal to confirm that the current appraised value of the
development exceeds the City's Land Secured Financing Policy minimum criteria
of a 4 to 1 value to lien ratio before bonds are issued.
On July 20, 2005, City Council approved a Resolution of Intention to establish
CFD 2005-2 which identified the area of land to be included within CFD 2005-2
and approved the RMA's special tax formula. At this meeting the City Council
also approved a Resolution of Intention to incur bonded indebtedness in an
amount not to exceed $21,000,000 for CFD 2005-2. These resolutions were
adopted as part of the formal process outlined by the Act which allows the
creation of a CFD. City Council also approved a reimbursement agreement with
the developer for funds deposited with the City related to the formation of CFD
2005-2 (namely, the payment of various contract service agreements) which
would be reimbursed to the developer following the issuance of bonds. As
required by the Act, a formal public hearing and an election by the property
owners (in this case, Palm Springs Classic, LLC, MW Housing Partners III, L.P.,
and Standard Pacific Corp) was scheduled for September 7, 2005, which was at
least 30 days, but not more than 60 days, after the adoption of these resolutions
as required by the Act, see Attachment 2 (July 20, 2005, staff report).
At the September 7, 2005 meeting, the public hearing was opened and
subsequently continued to October 5, 2005 at the request of the property owners.
Following public testimony, if any, at the Public Hearing, at the close of the Public
Hearing the City Clerk will tabulate all valid ballots received related to the
formation of CFD 2005-2. Assuming the passage of the election to form CFD
2005-2, it is recommended that the City Council introduce for first reading an
ordinance approving the levy of special taxes within CFD 2005-2. Assuming that
the proceedings to form the District are concluded, at a subsequent meeting staff
will forward recommendations for City Council to consider the issuance of special
tax bonds for CFD 2005-2. Staff is recommending that the City Council consider
issuance of the bonds for CFD 2005-2 in two phases, or series, so that the
bonded indebtedness incurred keeps pace as the units are constructed, to
address the fact that Lennar is developing the Escena project in two different
phases (detached units in the first phase and attached units in the second
phase).
The special tax bonds issued for Phase 1 (542 detached homes) are expected to
finance up to: (1) approximately $4,580,000 of City development impact fees
(sewer connection fees, TUMF and Quimby Act fees); (2) $5,760,000 for public
infrastructure costs (sewer and water system construction, and construction of 3
project traffic signals); (3) approximately $2,830,000 for Desert Water Agency
(DWA) water connection and meter fees; and (4) $350,000 to pay off the City's
City Council Staff Report
October 5, 2005— Page 5
Formation of CFD 2005-2
existing AD 155 assessment against the development. Other fees and facilities
may be authorized in the Resolutions, the Joint Community Facilities Agreement
and the Acquisition and Funding Agreement to the extent there is capacity to
finance said fees and facilities. Further, in accordance with the terms of the
Memorandum of Understanding between the City and Palm Springs Classic,
LLC, upon issuance of the first series of bonds, Lennar is required to pay the City
$1.1 million from its own funds to be applied to the future construction of a new
fire station serving CFD 2005-2 and the surrounding community. It is anticipated
that the first series of bonds would be issued once the developments have been
approved by the City's Planning Commission.
The second series of bonds issued for Phase 2 (616 attached multi-family units)
will be less and will include financing of another $4,970,000 of City development
impact fees and $2,890,000 of DWA fees and such other fees and facilities as
may be authorized in the agreements and resolutions. The second series will
only be issued based upon the progress of the development, and only at such
time as development applications for the multi-family units have been approved.
It is expected at this time that the second series of bonds will be issued some
time in 2006, and approvals for that series of bonds will also be scheduled for
City Council consideration at a later date.
Until property is developed, the RMA establishes a tax rate for vacant land;
however, once a building permit is issued, a lot will be taxed in accordance with
the type and size of the unit to be constructed. The special taxes vary from
$1,650 to $2,450 per year for detached units, and from $550 to $1,450 per year
for attached multi-Family units. It is anticipated that the overall effective tax rate
will be no higher than 1.8% (including all other ad valorem taxes, special
assessments and the City's CFD 2005-1 for police and fire services).
A Joint Community Facilities Agreement is required between the City, Palm
Springs Classic, LLC, and Desert Water Agency to allow a portion of the bond
proceeds, when issued, to be used for DWA maintained improvements. In
addition, an Acquisition and Funding Agreement is required between the City and
Palm Springs Classic, LLC, to allow a portion of the bond proceeds, when
issued, to be used by the City to acquire the public improvements constructed by
the developer. A Resolution is recommended for approval by the City Council
which will approve the Joint Community Facilities Agreement and another to
approve the Acquisition and Funding Agreement. Other Resolutions are
recommended for approval by the City Council related to actions and findings
associated with the formation of CFD 2005-2, including the first reading of an
ordinance authorizing the special tax levy within CFD 2005-2.
FISCAL IMPACT: IFinance Director Review: fo;
Approval of the recommended actions does not commit the City in any way to
financial contribution or liability related to the proposed CFD 2005-2. Although
ultimately the City is the issuer of the tax-exempt bonds for CFD 2005-2, the City
City Council Staff Report
October 5, 2005— Page 6
Formation of CFD 2005-2
does not incur any obligation to satisfy payment of the special taxes levied to
secure payment of the bonds. Failure of payment of the special taxes levied
against the properties within CFD 2005-2 constitutes a foreclosable lien on such
properties if unpaid, which is used to secure and satisfy the annual bond
payments. No fiscal impact will result from the City's approval of this action. The
tax levy provides for administrative expenses of the City.
Crai raves David J. Barakian
D' ector of Finance & Treasurer Director of Public Works/City Engineer
s"
Thomas J. Wi on David H. Ready
Assistant Cit Manager City Manager
Attachments:
1 . July 20, 2005 staff report
ATTACHMENT
JULY 20, 2005, STAFF REPORT
' �o,�pA4M Sa'y
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XC CVFoFAity Ate, N,
City Council Staff Report
CITY COUNCIL JULY 20, 2005
LEGISLATIVE ITEM
SUBJECT: CONSIDERATION OF THE INTENTION OF THE FORMATION OF
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) CITY
OF PALM SPRINGS; AND THE INTENTION TO INCUR BONDED
INDEBTEDNESS IN THE AMOUNT NOT TO EXCEED
$21,000,000; AND APPROVAL OF A DEPOSIT AND
REIMBURSEMENT AGREEMENT WITH PALM SPRINGS
CLASSIC, LLC
FROM: David H. Ready, City Manager
BY: Finance Department and Public Works & Engineering Department
SUMMARY
On April 6, 2005, City Council approved further processing of an application submitted
by Palm Springs Classic, LLC, Lennar Homes of California, Inc., its Manager, for
formation of a Community Facilities District pursuant to the Mello-Roos Community
Facilities Act of 1982 for the Palm Springs Classic project (now known as "Escena").
Subsequently, on June 1, 2005, City Council approved contract service agreements
with Albert A. Webb Associates for the assessment engineering services, and with
Harris Realty Appraisal for the appraisal consultant services, necessary to provide
professional services related to the proposed formation of the Community Facilities
District. The actions proposed with this item formally establish the City's intention to
form the proposed Community Facilities District, as well as to incur bonded
indebtedness in an amount not to exceed $21,000,000 associated with the financing of
public improvements, fees, and incidental expenses within the proposed Community
Facilities District. Approval of the proposed actions schedules a formal Public Hearing
for September 7, 2005, and election of current landowners within the area subject to the
proposed Community Facilities District.
Item No. 3 . B.
City Council Staff Report
Ally 20, 2005—Page 2
Consideration of Formation of CFO 2005-2
RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION
TO ESTABLISH AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF
PALM SPRINGS."
2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION
TO INCUR BONDED INDEBTEDNESS IN THE AMOUNT NOT TO EXCEED
$21,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA) OF THE CITY OF PALM SPRINGS."
3. Adopt Resolution No , "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AND ORDERING THE
EXECUTION OF THAT CERTAIN DEPOSIT AND REIMBURSEMENT
AGREEMENT WITH PALM SPRINGS CLASSIC, LLC; AND MAKING CERTAIN
FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH."
4. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On April 6, 2005, City Council approved further processing of an application submitted
by Palm Springs Classic, LLC, Lennar Homes of California, Inc., its Manager, for
formation of a Community Facilities District ("CFD") pursuant to the Mello-Roos
Community Facilities Act of 1982 (the "Act') for the Palm Springs Classic project (now
known as "Escena"). (see April 6, 2005, staff report). City staff had originally designated
this proposed CFD as CFD 1; however, the City is currently processing formation of
another CFD for financing of additional police and fire services for new development,
which had already been designated as CFD 1 (formally identified as CFD 2005-1). As
such, this proposed CFD has been formally identified as Community Facilities District
2CI05-2 of the City of Palm Springs ("CFD 2005-2").
On June 1, 2005, City Council approved a contract services agreement to perform
special tax consulting with Albert A. Webb Associates, as well as a contract services
agreement to perform appraisal services with Harris Realty Appraisal for professional
services related to CFD 2005-2. These services were necessary to provide the City
with information related to CFD 2005-2, namely, an special tax analysis, identified as
the "Rate and Method of Apportionment for Community Facilities District No. 2005-2
(Escena Palm Springs) City of Palm Springs', and an appraisal to confirm that the
appraised value of the development exceeds the City's minimum criteria 'of a 4 to 1
value to lien ratio.
0Ou1-y43
City Council Staff Report
July 20, 2005— Page 3
Consideration of Formation of CFD 2005-2
Lennar Homes, Inc., the manager of Palm Springs Classic, LLC, developing the
"Fscena" project has requested that the City consider allowing formation of CFD 2005-2
to finance $14,887,048 of various public improvements, fees, and payoff of the existing
assessment against this property related to Assessment District No. 155 ("AD 155"), in
addition to all incidental costs related to the formation of CFD 2005-2 (see Attachment
2). The total amount to finance CFD 2005-2, including debt service and administrative
costs is proposed as not to exceed $21,000,000; however, it is expected that the total
amount of bonds to be issued would not exceed $19,000,000. The bonds actually
issued for CFD 2005-2 will only be for an amount sufficient to pay for the proposed
facilities, Fees, and existing assessment for AD 155.
Lennar Homes, Inc., has planned on developing the "Estero" project in two phases,
with the golf course having already been completed The first phase encompasses
approximately 542 single 'family detached homes, with a second phase encompassing
approximately 616 attached multi-family units. By forming CFD 2005-2, a special tax in
accordance with the `Rate and Method of Apportionment" (or "RMA")for CFD 2005-2, is
levied against the properties within the development. The proposed tax rate varies
depending upon the type of unit constructed (detached versus attached), as well as the
size of the unit. The RMA proposed to exempt the golf course and hotel properties from
CFD 2005-2, and as such, no special taxes will be levied on those portions of the
development.
In light of the fact that Lennar Homes, Inc., is developing the project in two phases, it
has been proposed that the City consider issuance of the bonds for CFD 2005-2 in two
phases, or series, so that the bonded indebtedness incurred keeps pace as the units
are constructed. Until property is developed, the RMA establishes a tax rate for vacant
land; however, once a building permit is issued the tax rate in accordance with the type
and size of the unit being constructed is levied against that property for the subsequent
fiscal year. As seen in Attachment 3, the special taxes vary from $1,650 to $1,950 per
year for detached units, and from $850 to $1,050 per year for attached multi-family
units. It is anticipated that the overall effective tax rate will be no higher than 1.8%
(including all other ad valorem taxes, special assessments and the City's CFD 2005-1
for police and fire services).
The proposed actions to be taken by the City Council with regard to CFD 2005-2 follow
the formal process outlined by the Act which allows the creation of CFD's_ It is required
that the City Council consider two separate actions related to the formation of CFD
2005-2: a Resolution of Intention to establish CFD 2005-2 which identifies the area of
land encompassing CFD 20D5-2 and incorporates and approves the RMA's special tax
formula, and a Resolution of Intention to incur bonded indebtedness of CFD 2005-2
upon its formation. Each of these Resolutions call for the scheduling of a formal Public
Hearing, and an election by the property owners within the proposed CFD 2005-2
(which in this case is Lennar Homes, Inc.), between 30 and 60 days after adoption of
the resolutions; the Public Hearing for CFD 2005-2, if approved, has been scheduled for
September 7, 2005.
City Council Staff Report
July 20, 2005—Page 4
Consideration of Formation of CFD 2005-2
A third action is recommended for the City Council's consideration which will approve a
reimbursement agreement with the developer for receipt of funds deposited with the
City related to the formation of CFD 2005-2 (namely, payment of the various contract
service agreements) which would be reimbursed to the developer upon City receipt of
bond proceeds following the issuance of bonds.
Assuming City Council's approval of these actions, and the passage of the election to
form CFD 2005-2 and the special taxes as proposed, it is expected that a first series of
bonds will he issued for Phase 1 (542 detached homes) that will finance $3,060,000 of
City development impact fees (sewer connection fees, TUMF and Quimby Act fees);
$5,530,000 for public infrastructure costs (sewer and water system construction, and
construction of 3 project traffic signals); $1,230,000 for Desert Water Agency (DWA)
water connection and meter fees; and finally $331,000 to payoff the existing AD 155
assessment against the development. The second series of bonds issued for Phase 2
will be smaller, comprising the 616 attached multi-family units, and will include financing
of another $3,300,000 of City development impact fees and $1,400,000 of DWA fees.
The second series will be issued dependent upon the progress of the development, and
only at such time tract maps for the multi-family units have been approved.
FISCAL IMPACT:
Approval of the recommended actions does not commit the City in any way to financial
contribution or liability related to the proposed CFD 2005-2. Although ultimately the City
is the issuer of the tax-exempt bonds for CFD 2005-2, the City does not incur any
obligation to satisfy payment of the special taxes levied to secure payment of the bonds.
Failure of payment of the special taxes levied against the properties within CFD 2005-2
constitute a foreclosable lien on such properties if unpaid, which is used to secure and
satisfy the annual bond payments. No fiscal impact will result from the City's approval
of this action.
1 w
CraigAraves V David H. Ready
P,LF66tor of Finance & Treasurer City Manager
David J, Barakian
Director of Public Works/City Engineer
Attachments:
1. April 6, 2005 staff report
2. CFD 2005-2 Bond Financed Facilities Summary
3. CFD 2005-2 Financial Summary
4. Resolutions (3)
ATTACHMENT
APRIL 6, 2005, STAFF REPORT
CITY COUNCIL Aprll6, 2005
LEGISLATIVE ITEM
Subject: PALM SPRINGS CLASSIC COMMUNITY FACILITIES DISTRICT NO. 1
Inillated by: Public Works and Engineoring Department
SUMMARY:
An application was filed with the City on February '13, 2004, for formation of a
Communities Facilities District pursuant to the Mello-Roos Community ReCillties Act of
1982 for the Palm Springs Classic project, previously approved as Case 5.0666B, PD-
231, and Tentative Parcel Map 30928 on Judy 16, 2003, and subsequently approved as
Tentative Tract Map 32233 on November 17, 2004. This development is being
conalructed by Palm Springs Classfe, LLC, Lennar Homes of California, Inc., its
Manager. The project consists of an 18-1101e golf course, hotel, vacation ownership
units, single family homes, and multi-famlly homes(with a maximum total of 1,450 units),
Woo and retail uses, and a fire station site. The City has established Policies and
Procedures for Special Assessment and Mello-Roos Community Facility District (CFD)
Municipal Bond Financing for Public Improvement for Development Projects that outlines
the minimum criteria for Special Assessment or Community Facility Districts formed in
the City, as well as the guidelines and process for their formation. The Policy established
a Special Districts Committee comprised of various staff members, and it is vie
Committee's responsibility to review the Community Facilities District application and
render an opinion regarding the City Councifs approval or denial of its formation.
RECOMMENDATION:
(1)That the City Council approve the application for further processing of the formation
of Community Facilities District No, 'I ("CFD 1"), submitted by Palm Springs Classic,
LLC, in accordance with the City$ Policies and Procedures for Special Assessment and
McII&Roes Community Facility District (CFD) Municipal .Bond Financing for Public
Improven'ient for Development Projects (the "Policy"); (2) authorize staff to select and
negotlafe contracts with consultants for an assessment engineer's report, appraisal and
market absorption study; and collect necessary deposits from the applicant to fund
consultant contracts; and (3) approve, in a fonn acceptable to the City Attorney, a
Memorandum of Understanding with Lennon Homes of California regarding certain
developer contributions to be made to the City in conjunction with the formation of the
CeminLinity Faclllites District,
STArF ANALYSIS:
Palm Springs Classic, LLC, by Lennar Homes of California, Inc., Its Manager, is the
developer of the Palm Springs Classic, now known as "Escena Palm Springs", Tentative
Tract Map 32233, located on the east side of Gene Autry Trail south of Vista Chino.
This development consists of an 1&-hole golf Course, hotel, vacation ownership units,-
single family homes, and multi-famlly homes(with a maximum total of 1,450 units),office
and relail uses,and a ill-e station site.
Shayne Morgan of David Taussig &Associates, Inc., acting on behalf of Lerner Homes,
submitted an application for formation of a Community Facilities District pursuant to the
Meile-Rcas Community Facilities Act of 1982 (the "Act"). In accordance with fhe Policy,
a pre-application conference with staff was held and the applicant submitted a $10,000
Initial application fee. The original application and fee were submitled to the City for
l l L H'- -n✓IYJ
Palrrr Springs Clssslc Community Facilities Dlstrlct No.1
April 6,2005
Flags 2
initial review on February 13, 2004, with a completed formal submittal received on
November 9, 2004. On Dacembar 2, 2004, the applicant met with the City's Special
Districts Committee to review the proposed application. Subsecluont meetings with the
applicant and the Committee to further refine the application and requested public
financing were held on January 20, 2005, and finally on March 4, 2005.
The proposed application represents the first Mello-Roos Community Facilities District
for the City of Palm Springs. The significant difference with a Mello-Roos CFD and a
standard Special Assessment District is that a Melle-Reos CFD has a broader range of
items [hot can be included in the District, and the Improvements, fees, and other costs
are considered of general benofit to the District, rather than "special benefit" that a
standard Special Assessment District indicates. Further, a Mello-Roos CFD places a
special tax on the properties within the District, while a standard Special Assessment
Districl places a Ilen against the properties until the levy (special assessment) is paid.
The applicant is proposing that CFD 1 fund public sewer improvements, water
improvements, reclaimed waterline improvements, traffic signal improvements, sewer
fees, water fees, pay-off of the existing Assessment District 155 assessments (AD 155
was esfahlished by the City for construction of the Gene Autry Trail and associated
improvements), Quimby Act park fees, Traffic Uniform Mitigation Fees (TUMF), and all
district formation and financing costs. The total estimated bond amount for CFD 1 is
$15,552,808(see Attachment'I).
The controlling criteria established in the Policy is outlined under Section 4, "Minimum
Requirements," Section 1, "Beneflf'. This section Indicates that the City ehould consider
formation of Special Assessment or Community Facility Districts if the following minimum
"benef[[" critarla are met;
1. The proposed project shall provide major infrastructure Improvements that
signifoantly benefit the general public, and/or
2. The project shall provide significant financial benefit to the City.
Determining whether the proposed Community Facilities District application meets these
two general criteria is somewhat subjective, The Palm Springs Classic will, with or
without public financing provided by CFD 1, be constructing significant public
improvements along Gene Autry Trail and Vi6ta Chine, including enhanced landscaped
parkways, bikepaths, new traffic signals, and other public improvements required of the
development. Further, the project,with or without public financing provided by CFD 1, is
likely to generate a significant financial benefit to the City through the generation of the
sale of up to 1,450 single or multi-family homes, increased property tax revenues, and
the associated revenues generated by additional residents of Palm 5prings,
It Is Important to note that the Palm Springs Classic development is obligated to provide
the City with a dedication for a one acre fire station site, approved by the Fire Chier,that
the residential units within the development be equipped with fire sprinlders due to the
fact the area is beyond the 5-minute response time,and further, that the project agree to
annex into the future Community Services District to be ferried by the City to assess a
special fee to new development for increased police and fire services caused by the
development.
Following the Special Districts Committee's meeting of March 4, 2005, an opinion was
rendered that the proposed application generally Insets the controlling criteria as
outlined in the Policy. This opinion was possible following the applicant's proposal to
provide certain developer contributions in conjunction with the formation of the CFD.
Palm Springs Classic Commdnlly Faclllthes Clarrict No.i
April G,2005
Page 8
The developer's contribution includes a one-time payment to the City of 51,100,000 and
an agreement to provide and pay for services necessary to prepare construction
drawings for the future fire station site located within the Palm Springs Classic
development, at the north end of Bird Center Drive and off of its main entrance on Chia
Road, These two contributions, which are outlined in the draft Memorandum of
Understanding included as Attachment 2 (subject to further review and approval by the
City Attorney), will allow the City to move forward with construction of the much needed
fire station within the northeast,section of the City. On this basis, the Special Districts
Committee determined that the developer's contribution outside of CFD 1 meets the
general criteria of the Policy, and recommends that city Council authofte further
processing of CFD 1 for Palm Spl'ings Classic, LLC.
SUBMITTED;
DAVIDJ. BARMAN
Director of Public Works, City Engineer
APPROVED: %z ✓/ P
DAM H. READY
City Manager
ATTACHMENTS:
f. Proposed Community Facilities District Bond Financed Facilitles Summary
2, Draft Memorandum of Understanding
ATTACHMENT 2
CFD 2005-2 BOND FINANCED FACILITIES SUMMARY
David Taussig &Associates, Inc. 0612712C05
PROPOSED COMMUNITY FACILITIES DISTRICT No. 2005-2
CITY OF PALM SPRINGS (ESCENA PALM SPRINGS)
BOND FINANCED FACILITIES SUMMARY
Number of Fee per Improvements
Description Units Unit 1 Fees
City of Palm Springs I Public Improvements NA NA $2,0373935
West Spine Sewer Improvemenrs[11 NA NA $1,069,744
East Spine Sewer Improvements NA NA $186,700
Traffic Signalrzation Improvements NA NA $450,000
Assessment District No, 155 Payoff NA NA $331,491
City of Palm Springs 1 Fees NA NA $6,383,479
08
Sewer Connection Fee 1,158 $2,4 12,110,464
Quimby Park.Fees 1,158 $2,440 $2,825,520
TUMF-Detached Units 542 $794 $430.516
TUMF-Attached Units 616 $550 $338,979
Desert Water Agency [2] NA NA $6,465,635
West Spine Water improvements 111 NA ' NA $635,571
East Spine Water Improvements NA NA $1,394,634
Reclaimed Water Line Improvements NA NA $1,500,000
Water Connection Fee 1,158 $2,285 $2,646,030
Water Frontage Fee NA NA $289,400
I
Total CFD Eligible Public Improvements and Fees NA NA $14,887,048
ill Projecl is 100%complete and has not been dedicated to the City of Palm Springs or Desert Water Agency.
[21 Requires the execution of a Joint Community Facilities Agreement prior to CFD formation.
K\CI@nts2\LENNAR\PalmSpnnaslBudgel\Budget_062405 123
ATTACHMENT 3
CFD 2005-2 FINANCIAL SUMMARY
Community
Facilities District
No. 2005-2
(Escena)
.. - Via;
-
..........
Phase I Financing
Acquisition Fund $10,150,000
Reserve Fund 850,000
Capitalized Interest 820,000
UnderwritinglOID 300,000
Costs 260,000
Total Financing $12,370,000 Bond Term — 30 Years
Effective Interest Rate — 5.5%
Total Phase I & 11 Bonded Debt
Not to Exceed $21 Million
Phase 11 Financing Phase Financing
Not to E'
00,000
01000
0 P 000
01000 Estimated 00 1�
00 00 Detached 0 00, e Detached
e
: 400,000 etached — 2,800 SqFt $1,950
Acquisition Fund $4,700,000
Reserve Fund 400,000
Capitalized
1 0
apitalized Interest 400P000 Ol 1 5
Underwriting/OlD 1505000
L
Costs 150B4O00
t I c g 68 Estimated Annual Special Taxes:
Total Financing $6,800,000
Detached — 2,200 SqFt $1,650
Attached — 1,300 SqFt $ 850
Attached — 1,600 SqFt $1,05
Bonds Will Not Be Issued Until Overall Effective Tax Rate 1.8%
Value to Lien Equals 4 to 1
Phase 1 $4%480,000
Phase 11 23,200,000
Value Needed $72,680,000
July 8, 2005
.............
ATTACHMENT 4
RESOLUTIONS
(.1 :`"
RESOLUTION NO. 21381
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DECLARING ITS
INTENTION TO ESTABLISH AND TO AUTHORIZE THE
LEVY OF A SPECIAL TAX WITHIN COMMUNITY
FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE
CITY OF PALM SPRINGS
WHEREAS, the City Council has received a petition (including consent and waiver), (the
"Petition"), from Palm Springs Classic, LLC, by Lennar Homes of California, Inc., its
Manager, requesting the institution of proceedings for 'formation of a Community
Facilities District, pursuant to the Mello-Roos Community Facilities Act of 1982,
commencing with Section 53311 of the Government Code of the State of California (the
"Act"); and
WHEREAS, the City Council has determined that the Petition complies with the
requirements of Government Code Section 53318 and now intends to form Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs; and
WHEREAS, the Council desires to adopt this Resolution of Intention as provided in
Section 53321 of the Act to establish a Community Facilities District consisting of the
territory described in Exhibit "A" hereto and incorporated herein by this reference, which
the City Council hereby determines shall be Known as `Community Facilities District No.
2005-2 (Escena) of the City of Palm Springs", (the "Community Facilities District No.
2005-2" or the "District"), pursuant to the Act to finance (1) the purchase, construction,
modification, expansion, improvement or rehabilitation of certain real or other tangible
property described in Exhibit "B" attached hereto and incorporated herein by this
reference, including ail furnishings, equipment and supplies related thereto; (2) the
payment of development and other fees (collectively, the "Facilities'), which Facilities
have a useful life of five years or longer; (3) the incidental expenses to be incurred in
connection with financing the Facilities and forming and administering the District (the
'Incidental Expenses"); and (4) payment and retirement of assessments in Assessment
District No. 155 of the City of Palm Springs, (the "AD 155 Payment"); and
WHEREAS, it is the intention of the City Council to consider financing the Facilities, the
Incidental Expenses, and the AD 155 Payment through the formation of the proposed
District and the sale of bonded indebtedness in an amount not to exceed $21,000,000
within the District and the levy of a special tax within the District to pay for the Facilities
and the Incidental Expenses and to pay debt service on the bonded indebtedness
incurred by the District, provided that the bond sales and special tax levies are
approved at an election to be held within the District;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE
AS FOLLOWS:
Resolution No. 21381
Page 2
Section 1. The above recitals are all [rue and correct. ,
Section 2. The City Council hereby determines to institute proceedings for the
formation of a Community Facilities District under the terms of the Act pursuant to
Section 53350 of the Act. The exterior boundaries of the proposed District are hereby
specified and described to be as shown on that certain map, described in Exhibit "A,"
now on file in the office of the City Clerk entitled "Proposed Boundaries of Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs," which map indicates
by a boundary line the extent of the territory included in the proposed District and shall
govern for all details as to the extent of the proposed District. On the original and one
copy of the map of the proposed District on file in the City Clerk's office, the City Clerk
shall endorse the certificate evidencing the date and adoption of this Resolution of
Intention. The City Clerk shall file the original map in his office and, within fifteen (15)
days after the adoption of this Resolution of Intention, the City Clerk shall cause to have
recorded with the Riverside County Recorder a copy of the endorsed map.
Section 3. The name of the proposed District shall be designated as "Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs."
Section 4. The Facilities to be financed by the proposed District and to be financed in
pact by the proposed District are public infrastructure facilities and other governmental
facilities with an estimated useful life of five years or longer, which the City of Palm
Springs or Desert Water Agency ("DWA") is authorized by law to construct, acquire,
own, operate or contribute revenue to. The City Council hereby finds and determines
that the description of the Facilities herein is sufficiently informative to allow taxpayers
within the proposed District to understand what; the funds of the proposed District may
be used to finance. The Incidental Expenses expected to be incurred include the cost
of planning and designing the Facilities, the costs of forming the District, issuing bonds
and levying and collecting a special tax within the District. The City Council hereby
finds that the proposed Facilities are necessary to meet increased demands placed
upon the City of Palm Springs and DWA as a result of development occurring within the
proposed District. Such Facilities need not be physically located within the District.
Section 5. Except where funds are otherwise available, it is the intention of the City
Council to levy annually, in accordance with procedures contained in the Act, a special
tax within the proposed District (the "Special Tax") sufficient to pay for the costs of
financing the acquisition and/or construction of the Facilities, Incidental Expenses and
the AD 155 Payment, including the principal and interest and other periodic costs on
bonds or other indebtedness proposed to be issued to finance the Facilities, Incidental
Expenses and the AD 155 Payment, the establishment and replenishment of reserve
funds, the credit enhancement fees, the costs of administering the levy and collection of
the Special Tax and all other costs of the levy of the Special Tax and issuance of the
bonds, including any foreclosure proceedings, architectural, engineering, inspection,
legal, fiscal, and financial consultant fees, discount fees, interest on bonds due and ,
payable prior to the expiration of one year from the date of completion of Facilities (but
not to exceed two years), election costs and all costs of issuance of the bonds,
Resolution No. 21381
Page 3
including, but not limited to, fees for bond counsel, disclosure counsel, financing
consultants and printing costs, and all other administrative costs of the tax levy and
bond issue. The Special Tax will be secured by recordation of a continuing lien against
all non-exempt real property in the District. In the first year in which such a Special Tax
is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any,
transferred to the District pursuant to Section 53314 of the Act and interest thereon.
The schedule of the rate and method of apportionment and manner of collection of the
Special Tax within the District is described in detail in Exhibit "C" attached hereto and
incorporated herein by this reference. The Special Tax is based upon the cost of
financing the Facilities, Incidental Expenses and the AD 155 Payment in the District, the
demand that each parcel will place on the Facilities and the benefit (direct and/or
indirect) received by each parcel from the Facilities.
The Special Tax within the District is apportioned to each parcel on the foregoing basis
pursuant to Section 53325.3 of the Act. In the event that a portion of the property within
the District shall become for any reason exempt, wholly or partially, from the levy of the
Special Tax, the City Council shall, on behalf of the District, increase the levy to the
extent necessary upon the remaining property within the District which is not delinquent
or exempt in order to yield the required payments, subject to the maximum tax. If
special taxes of the District are levied against any parcel used for private residential
purposes, (i) the maximum special tax rate shall not be increased over time except that
it may be increased by an amount not to exceed two percent (2%) per year to the extent
permitted in the rate and method of apportionment; (ii) such tax shall be levied for a
period not to exceed forty-five (45) years commencing with Fiscal Year 2005-2006, as
further described in Exhibit "C" attached hereto; and (III) under no circumstances will
such special tax be increased as a consequence of delinquency or default by the owner
of any other parcels within the District by more than ten percent (10%).
Section 6. The special tax within the proposed District is based on the expected
demand that each parcel of real property within the proposed District will place on the
Facilities and on the benefit that each parcel derives from the right to access the
Facilities. The City Council hereby determines that the proposed Facilities are
necessary to meet the increased demand placed upon the City of Palm Springs and
DWA and the existing infrastructure in the City as a result of the development of land
proposed for inclusion in the District. The Council hereby determines the rate and
method of apportionment of the special tax for the District set forth in Exhibit "C'
attached hereto to be reasonable.
Section 7. A public hearing (the "Hearing") on the establishment of Community
Facilities District No, 2005-2, the proposed rate and method of apportionment of the
Special Tax and the proposed issuance of bands to finance the Facilities, the Incidental
Expenses and the AD 155 Payment shall be held on September 7, 2005 at 6:00 p.m., or
as soon thereafter as practicable, at the Council Chamber of the City Council of the City
of Palm Springs, 3200 East Tahquitz Canyon Way, Palm Springs, California 92262.
Should the City Council determine to form the District, a special election will be held
within the District to authorize the issuance of bonds and the levy of the Special Tax in
Resolution No, 21381
Page 4
accordance with the procedures contained in Government Code Section 53326. If held, ,
the proposed voting procedure at the election will be a landowner vote with each
landowner who is the owner of record of land within the District at the close of the
Hearing, or the authorized representative thereof, having one vote for each acre or
portion thereof owned within the District. Ballots for the special election may be.
distributed by mail or by personal service.
Section 8. At the time and place set forth above for the Hearing, any interested
person, including all persons owning lands or registered to vote within the proposed
District, may appear and be heard.
Section 9. Each City officer who is or will be responsible for the Facilities to be
financed by the District, if it is established, is hereby directed to study the proposed
District and, at or before the time of the above-mentioned Hearing, file a report with the
City Council, and which is to be made a part of the record of the Hearing, containing a
brief description of the Facilities and services by type which will in his or her opinion be
required to adequately meet the needs of the District and his or her estimate of the cost
of providing the Facilities and services, including an estimate of the fair and reasonable
cost of all Incidental Expenses, including the cost of planning and designing the
Facilities to be financed pursuant to the Act, the cost of environmental evaluations of
such Facilities, all costs associated with the creation of the District, issuance of bonds,
determination of the amount of any special taxes, collection of any special taxes, or
costs otherwise incurred in order to carry out the authorized purposes of the City with
respect to the District, and any other expenses incidental to the construction, completion
and inspection of the authorized work to be paid through the proposed financing.
Section 10. The City may accept advances of funds or work-in-kind from any sources,
including private persons or private entities, and is authorized and directed to use such
funds for any authorized purpose, including any cost incurred in creating the District.
The District may enter into an agreement to repay all of such funds as are not expended
or committed for any authorized purpose at the time of the election on the levy of the
Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds
advanced if the levy of the Special Tax shall be approved by the qualified electors of the
District.
Section 11. The City Clerk is hereby directed to publish a notice ("Notice") of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general
circulation published in the area of the proposed District. Such Notice shall contain the
text or a summary of this Resolution, state the time and place of the Hearing, a
statement that the testimony of all interested persons or taxpayers will be heard, a
description of the protest rights of the registered voters and landowners in the proposed
District as provided in Section 53324 of the Act and a description of the proposed voting
procedure for the election required by the Act. Such publication shall be completed at
least seven (7) days prior to the date of the Hearing. ,
Resolution No. 21381
Page 5
Section 12. The City Clerk may send a copy of the Notice of the Hearing by first-class
rnail, postage prepaid, to each registered voter and to each landowner within the
proposed District as shown on the last equalized assessment roll. Said mailing shall be
completed not less than-fifteen (15) days prior to the date of the Hearing.
Section 13. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves
to itself, in its sole discretion, the right and authority by subsequent Resolution to allow
any owner of property within the District, subject to the provisions of Section 53344.1 of
the Act and those conditions as it may impose, and any applicable prepayment
penalties as prescribed in the bond indenture or comparable instrument or document, to
tender to the District treasurer in full payment or part payment of any installment of the
special taxes or the interest or penalties thereon which may be due or delinquent, but
for which a bill has been received, any bond or other obligation secured thereby, the
bond or other obligation to be taken at par and credit to be given for the accrued interest
shown thereby computed to the date of tender.
Section 14. The voting procedure with respect to the establishment of the District and
the imposition of the special tax shall be by hand delivered ballot election.
ADOPTED this 20th day of July 2005.
y.,
David H. Ready, i anager
ATTEST:
f�mes Thompson, City Clerk
Resolution No. 21381
Page 6
CERTIFICATION '
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE } ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 21381 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on July 20, 2005, by Lhe
following Vote:
AYES: Councilmember Foat, Councilmember Pougnet, Councilmember Mills,
Mayor Pro Tem McCulloch and Mayor Oden.
NOES: None.
ABSENT: None.
ABSTAIN: None.
mes Thompson, City Clerk
City of Palm Springs, California
Resolution No. 21381
Page 7
EXHIBIT"A"
COMMUNITY FACILITIES DISTRICT NO, 2005-2 (ESCENA)
gg BOUNDARY MAP
a v PROPOSED BOLHOARIES
COKtMVY FACLITES DISTRICT NO. 2006-2
A ( ESCENA OF PALM SPRINGS 1
d�; r CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
I HEPEBY cEDTIFY TMT TIC WITHIN ANP YVFTW ONIVAPIES
OF M101ITY FACILITIES DISTOMT M.2lYr1E I ESCENA OF �152' ivn w'42E FILM IN TIE OFFICE OF RE- `5EQETAPe OF THE WAP9
PALM SPPTN09 I OF THE CITY CF PALM 5I44Ih•3E,COUNTY CF "§ {'IEEE OF BIPECRAS OF EE CITY BF P" SPDINSS,CU
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Resolution No. 21381
Page 8
EXHIBIT "B" '
TYPES OF FACILITIES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The General Description of the Improvements is as follows:
1. Street facilities, including, but not limited to, major arterials, highways, intersections,
access ramps, roadways, sidewalk, curb, gutters, striping, lighting, traffic
signalization, signage, landscaping of public streets and rights-of-way and
appurtenant facilities;
2. Storm control facilities, including, but not limited to, storm drains, channels,
detention, headwalls, riprap pads, retention and/or catch basins and appurtenant
facilities;
3. Sewer improvements, sanitary sewers, including, but not limited to, lift stations, force
mains, pump stations, transmission and main lines, valves, and appurtenant facilities
(including but not limited to, the West Spine Sewer Improvements which have
already been completed);
4. Domestic and reclaimed water facilities, including, but not limited to, reservoirs,
pump stations, transmission lines, distribution facilities, lift stations, main lines,
valves, fire hydrants and appurtenant facilities (including, but not limited to, the West
Spine Water Improvements which have already been completed);
5. Park and recreational facilities and appurtenant facilities;
6. Impact and other fees, including but not limited to, TUMF, Quimby Act fees, water
fees, drainage fees, sewer treatment and connection fees, water supply fees, water
meter fees, water connection fees and frontage fees, storm drain fees, and other city
fees;
7. Mitigation costs and incidental expenses.
1
Resolution No. 21381
Page 9
EXHIBIT "B"
(CONTINUED)
OTHER ITEMS TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The District may also finance any of the following:
1. Bond related expenses, including underwriters' discount, reserve fund, capitalized
interest, financial advisor fees and expenses, bond and disclosure counsel, special
tax consultant fees and expenses, dissemination agent fees and all other incidental
expenses.
2. Administrative 'fees of the City and the Bond trustee or fiscal agent related to the
District and the Bonds.
3. Reimbursement of costs related to the formation of the District advanced by the City
or any related entity, or any landowner or developer within the District, as well as
reimbursement of any costs advanced by the City or any related entity, or any
landowner or developer within the District, for facilities, fees or other purposes or
costs of the District.
4. Payment and retirement of all outstanding unpaid assessments in Assessment
District No. 155 of the City of Palm Springs.
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 substitutions 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 the Report.
Resolution No. 21381
Page 10
EXHIBIT "C '
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO,2005-2
(ESCENA PALM SPRINGS)
CITY OF PALM SPRINGS
A Special Tax shall be levied on all Assessor's Parcels in City ofPahn Springs Community Facilities
District No. 2005-2 (Escena Patin Springs) ("CFD No. 2005-2") and collected each Fiscal Year
conurrencing in Fiscal Year 2005-2006,in an amount determined through the application of the Rate
and Method of Apportioranent as described below. All of the real property in CID No. 2005-2,
unless exempted by law or by the provisions hereof,shall be taxed for the purposes, to the extent and
in the nignner bsrein provided.
A. DEFINITIONS
The teens 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 Comity
parcel map. The square footage of air Assessor's Parcel is'equal to the Acreage of such
parcel nnultiplied by 43,560.
"Act" means the Iv[eilo-Roos ConrinunityFacilities Act of 1982,being Chapter 2.5,Part 1,
Division 2 of Title 5 of the California Goverunenl Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No.2005-2:the costs of computing the Special
Taxes aid preparing the annual Special Tax collection schedules (whether by the City or
designee!hereof or both);the costs of collecting the Special Taxes(whether bythe 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 o f the duties required ofit under the Indenture;
the costs to the City, CFD No, 2005-2 or any designee thereof of complying with arbitrage
rebate requirements; the costs to'tlne City, CFD No. 2005-2 or any designee thereof of
complying with City, CFD No. 2005-2 or obligated persons disclosure requirements of
applicable federal and state securities laws and the Act;the costs associated with preparing
Special Tax disclosure statements and responding to public inquiries regarding the Special
Taxes;the costs of fie City,CFD No.2005-2 or any designee thereof related to an appeal of
the Special Tax; the costs associated with the release of funds from any escrow accomit-,amt
the City's amiaal administration fees and third party expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or CFD No, 2005-2 for any
other administrative purposes of CFD No.2005-2,imclud ng attorney's fees and other costs
related to cotmneneing and pursuing to completion any foreclosure as a result 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 mmnber.
Cij"y of Palm Springs(Eseena Paint Springs) July 3,2005
CID No.2005.2 Page I
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel nuanbcr.
"Assigned Special Tax" mekuis the Special Tax for each Land. Use Class of Developed
Property, as determined in accordance with Section C.L(b)below.
"Authorized Facilities" means those authorized improvements eligible under the Act and
provided by CFD No. 2005-2 miner the authorized bonding program for CFD No. 2005-2.
"Backup Special Tax " means the Special Tax applicable to each Assessor's Parcel of
Developed Property in each Zone, as determined in accordance with Section C.L(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 CFD No.2005-2 under the Act.
,,Certificate of Occupancy"means a certificate issued by the City that authorizes the actual
occupancy of a dwelling urrit for habitation by one or more residents.
"CFD Administrator" means au 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.2005-2" means City of Palm Springs Cormnanity Facilities District No.2005-2 '
(Escena Palm Springs).
"City" means the City of Palm Springs,California.
"Council" means the City Council of the City, acting as the legislative body of CFD No.
2005-1
"County" means the County of Riverside, California.
"Developed Property" means, for cacti Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Properly Owner Association Properly, for which the
Final Subdivision was recorded on or before Jarmary 1 of the piior Fiscal Year and abuildnmg
permit for new construction was issued after January 1,2005 kind on or before May 1 of the
Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied.
"Final Mapped Property" means,for each Fiscal Year,all Taxable Property,exclusive of
Developed Property, Taxable Property Owner Association Properly or Taxable Public
Property, which as of January I of the previous Fiscal Year was located within a Final
Subdivision.
"Final Subdivision"means a subdivision of property by recordation of a final map,parcel ,
map, or lot line adjustment,pursuant to the Subdivision Map Act(California Government
Code Section 66410 et seq.) or recordation of a condominium plan porsuaut to California
Civil Code Section 1352 that creates individual lots For which building permits mav4be
issued without.further subdivision.
City ofPalnr Springs(8sceraa Pulp?Springs) July 8,2005
CPD No. 2005-2 Page 2
' "Fiscal Year" means the period starling July 1 and ending on the following Ruie 30.
"Indenture" means the indenture, fiscal agent agreement, resolution or other inslrurnent
pursuant to which.Bonds arciss Lied,as modified,amended and/or supplemented from time to
time.
"Initial Maximunn Special Tax" means th,e initial maximum Special Tax, determned in
accordance with Section C.2.(a) below, that cau he levied in any Fiscal Year on any
Assessor's Parcel of Final Mapped Property and Undeveloped Property.
°Land Use Class" means any of the classes listed in Table I below.
"Maxirnunr Special Tax"means the maximum Special Tax,determined in accordance with
Seclion C below,that can be levied in any Fiscal Year on'auy Assessor's Parcel.
"Non-Residential Property"means all Assessor's Parcels of Developed Property for which
a building permit permitting the construction of one or more non-residential units or facilities
has been issued by the City.
"Outstanding Bonds" means all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association Property"means,for each Fiscal Year,any property within
the boundaries of CFD No. 2005-2 that was owned by a property owner association,
including any master or sub-association, as of January I of the prior Fiscal Year.
"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 Final Mapped Property, "Proportionately"means that the ratio of the actual Special Tax
levyper Acre to the Initial Maximum.Special Tax per Acre is equal for all Assessor's Parcels
ofFinalMappedPropetty. For Undeveloped Property,"Propottiouately°rneans that the ratio
of the actual Special Tax levy per Acre to the Initial Maximum Special Tax per Acre is equal
for all Assessor's Parcels of Undeveloped Property. The teran "Proportionately" may
similarly be applied to other categories of Taxable Property as listed in Section D below.
"Public Property" means, for eaeh Fiscal Year, (i) auyproperty within the boundaries of
CFD No.2005-2 owned by,irrevocably offered or dedicated to,or over,or through or under
which an easement for purposes of public right-of-way has been granted, to the federal
government,the State,the County,the City,or any local government or otherpublic agency
as of January 1 of the previous Fiscal Year, provided that any property leased by a public
agency to a private entity and subject to taxation wader Section,53340.1 of the Act shall be
taxed and classified according to its use;or(h) any property within the boundaries of CFD
No. 200.5-2 that was encumbered, as of January I of the previous Fiscal Year, by an
unmanned utility easement making impractical its utilization for other than the purpose set
forth in the easement.
City of PaIIII springs(ESCenaParin Springs) Jrtdy 8,2005
OTT No.2005-2 Page 3
"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 for an
Assessor's Parcel shall be made by reference to the building permit(s) issued for suc11
Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which a.
building permit permitting the construction thereon of one or more residential dwelling rurits
has been issued by the City.
"Single Family Attached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued for attached residential units.
"Single Family Detached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued for detached residential units.
"Special Tax" cleans the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 2005-2 to fund the Special Tax Requirement,
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2005-2 to: (i) pay debt service on all Outstanding Bonds due in the calendar year
commencing in such Fiscal Year; (h) pay periodic costs on the Bo,ods, including but not
limited to, credit enhancement and rebate payments on the Bonds due in the calendar year
commencing in such Fiscal Year; (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 Authorized Facilities to the extent that the
inclusion of such amount does not,increase the Special Tax levy on-Undeveloped Property;
(vi)pay For reasonably anticipated Special Tax delinquencies'based on the delinquency rate
for the Special Tax levy in the previous Fiscal Year;less(vii) a credit for funds available to
reduce the annual Special Tax levy,as determined by the CFD Achnhustrator pursuant to the
Indenture.
"State" means the State of California.
"Taxable Property"means all of the Assessor's Parcels withinthebomidaries of CFD No.
2005-2 that are not exempt fiom the Special Tax pursawit to law or Section E below.
"Taxable Property Owner Association Property" means, for each Fiscal Year, all
Assessor's Parcels of Property Owner Association Property that are not exempt frorn the
Special Tax pursuant to Section E below.
"Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public
Property that are not exempt from the Special Tax pursuant to Section E below.
"Trustee" means the trustee or fiscal agent: under the Indenture. ,
City afPalne Springs(Fseerza Pabn Springs) Jiaiy 8,2005
CFD No, 2005-2 Page 4
"Undeveloped Property"means,for each Fiscal Year,all Taxable Property not classified as
' Developed Properly,Final Mapped Properly,Taxable Property Owner Association Property
or Taxable Public Property.
"Zone" means Zone 1 or Zone 2, as applicable.
"Zone 1" means all property currently within CFD N o.2005-2 which is not located in Zone
2,
"Zone 2"'meats the laud area geographically identified as Lots 44 through 50 in Tract Map
No. 322334 recorded with the County ou May 23, 2005 as Document No,2005-0409493.
Zone 2 may be subject to amendment tzom time-to-time,or modification pursuant to a feral
map or precise site plan for such properly at the sole discretion of the CPD Administrator
provided that such amerrdmeut or mortification will not reduce the amount of Maximum
Special Tax below the amount required to equal at least 1.1 times the maxirnrim annual debt
service on all Outstanding Bonds, phis the Administrative Expenses.
B, ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year;all Taxable Property within CFD No. 2005-2 shall be assigned to a Zone
and Further classified as Developed Property,Final Mapped Property,Undeveloped Property,
Taxable Property Owner Association Properly, or Taxable Public Property, and shall be
subject to Special Taxes in accordance with this Rate and Method of Apportionment
determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
Residential Property shall be assigned to Land Use Classes 1 through 9 as listed in Table 1
below based on the type of use and the Residential Floor Area for eachrurit. Non-Residential
Property shall be assigned to Land Use Class 10. With respect to Residential Property,the
Residential Floor Area shall be determined f-om the most recent bruldiagpertnit issued prior
to the issuance of a,Certificate of Occupancy for such Assessor's Parcel.
1. Developed Properly
(a) Maxi mum 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.
(6) Assigned Special.Tax
The Fiscal Year 2005-2006 Assigned Special Tax for each Land Use Class is
shown below in Table 1,
City of Palm Springs(L+scena Palma Springs) Tally 8,2005
CFD No.2005-2 rage-5
TABLE 1
Fiscal Year 2005-2006 ,
Assigned Special Taxes for Developed Property
L1nd,CJSe RIsnddOtiS Assr ntd
Dcst Laplioin ", 5pcv a,1 !qx
Clsss r F;loor Ar, a,
l Single Family Detached Properly More than 3,200 sq. ft. $2,450 per unit
2 Single Family Detached Property 2,801 —3,200 sq. ft. $2,150 per Lmit
3 Single Family Detached Property 2,501 —2,800 sq. ft. $1,950 per unit
4 Single Family Detached Property 2,201—2,500 sq. R. $1,800 per taut
5 Single Family Detached Property less than 2,201 sq.ft. $1,650 per unut
6 Single Family Attached Property More t)z<vn 1,600 sq. ft. $1,450 per unit
7 Single Family Attached Property 1,401 -1,600 sq. ft. $1,050 per unit
8 Single Family Attached Property 1,201 - 1,400 sq, It. $850 per unit
9 Single Family Attached Property Less than 1,201 sq. ft. $550 per unit
10 Non-Residential Property NA $11,662 per Acre
(c) Backup Special Tax
The Fiscal Year 2005-2006 Backup Special Tax attributable to a Final
Subdivision in Zone 1 or Zone 2 will equal the applicable Backup Special
Tax for such Zone,identified in.Table 2 below,multiplied by the Acreage of
all Taxable Property, exclusive of any Taxable Property Owner Association
Propezty and Taxable Public Property,therein. The Backup Special Tax for
each Assessor's Parcel of Residential Property shall be computed by dividing
the Backup Special'Tax attributable to the applicable Final Subdivision by
the number of Assessor's Parcels for which building permits for residential
construction have or maybe issued(i.e.,the number of residential lots). The
Backup Special Tax for each Assessor's Parcel of Non-Residen.dal Property
in Zone 1 or Zone 2 shall equal the applicable Backup Special Tax for such
Zone, identified in Table 2 below, multiplied by the Acreage of such
Assessor's Parcel.
TABLE2
Fiscal Year 2005-2006
Backup Special Tax for Developed Property
:. Speca(Tax,Classrficatioin' 13�ckup Spec, ti1 ax
Zone 1 $12,277 per Acre
Zone 2 $16,907 per Acre
City of Paint Springs(Escena Pain Springs) July 8,2065
CFD No.2005-2 Page 6
If a Final Subdivision includes Assessor's Parcels of Taxable Property for
which building permits for both residential and non-residential construction
may be issued, exclusive of Taxable Property Owner Association Properly
and Taxable Public Properly, then the Back-lip Special Tax for each
Assessor's Parcel of Residential Property slrallbe computed exclusive of the
Acreage and Assessor's Parcels of property for which'building pennits for
non-residential construction may be issued.
Notwithstanding the foregoing, if all or any portion of the Final
S abdivisiou(s)described in the preceding paragraphs is subsequently charged
or modified'by recordation of a lot line adjustment or similar inslt current,and
only if the CFD Administrator determines that such change or modification
results in a decrease in the number of Assessor's Parcels 0f Taxable Properly
for which building permits for residential construction have or may be issued
within such Final Subdivision, then the Backup Special Tax for each
Assessor's Parcel of Developed Property that is pat of the lot line adjustment
or similar instrument for suclr Final Subdivision shall be a rate per Acre as
calculated below. The Backup Special Tax previously determined for arr
Assessor's Parcel of Developed Property that is not part of the lot line
adjustment or sitnilar instrument for such Final Subdivision shall not be
recalculated.
1. Determine the total Backup Special Tax anticipated to apply to
the changed or modified portion of the Final Subdivision area
prior to the change or modification.
2. The result of paragraph I above shall be divided by the Acreage
of Taxable Property which is ultimately expected to exist in such
changed or modified portion of the Final Subdivision area, as
reasonably determined by the(FD Admiaisn-ator.
3. The result of paragraph 2 above shall be the Backup Special Tax
per Acre which shall be applicable to Assessor's Parcels of
Developed Property in such changed or modified portion of the
Final Subdivision area for all remaining Fiscal Years in which the
Special Tax may be levied.
City of Min S)rt'iags(Esaena Palm Springs) July 8,2005
CTD No.2005�2 Page 7
Furthermore, all Assessors'Parcels within CFD No.2005-2 will be relieved
snnultaieously andperrnanenlly from the obligation to pay and disclose the '
Backup Special Tax if the CFD Administrator detennines that(i)the annual
debt, service rcgtdred for the Outstanding Bonds, when compared to the
Assigned Special Taxes that may be levied against all Assessors' Parcels of
Developed Property in CFD No.2005-2 result in 110%debt service coverage
(Le, the Assigned Special Taxes that maybe levied against all Developed
Property in CFD No. 2005-2 in each remaining Fiscal Year based on then
existing development in CFD No. 2005-2 is at least equal to the sum of(a)
the Administrative Expenses and (b) 1.10 times maximum annual debt
service in each remaining Fiscal Year on the Outstanding Bonds),and(ii)all
authorized Bonds have already been issued or the Council has covenanted
that it will not issue any additional Bonds (except rehrnding bonds) to be
supported by the Special Tax in CFD No. 2005-2.
(d) Increase in the Assigned Special Tax and Back-up Special Tax
The Fiscal Year 2005-2006 Assigned Special Tax, identified in Table 1
above, and Backup Special Tax, identified in Table 2 above, Fiscal Yea hh not e
subject to change and shall therefore remain the sane in every
(e) Multiple Land Use Classes '
In some instances an Assessor's Parcel of Developed Property may contain
more than one Laird Use Class. The Maximum Special Tax levied on an
Assessor's Parcel shall be the surn of the Maxirniun Special Tax for all Land
Use Classes located on that Assessor's Parcel, The CFD Adm nistrator's
allocation to each type of property shall be final.
2. Final Mapped Property, Undeveloped Property, Taxable Property Owner
Association Property,and Taxable Public Property
(a) Initial Maximurn Special Tax
The Fiscal Year 2005-2006 Initial Maximum Special Tax for Final Mapped.
Property and Undeveloped Property in I or Zone 2 shall be$11,662 per
Acre, and shall not be subject to change and shall therefore remain the same
in every Fiscal Year.
(b) Maximum Special Tax
The Fiscal Year 2005-2006 Maximum Special Tax for Final Mapped
Property, Undeveloped Property, Taxable Property Owner Association
Property, and Taxable Public Property is Zone 1 or Zone 2 shall be$16,907
per Acre, and shall not be subject to change and shall therefore remain the
sane in every Fiscal Year.
Jsly8,2005
City 0j,palvr Springs(Eseena Pala:Springs) page,8
CFD No. 2005-2 --
D. METHOD OF APPORTION NIENT OF TIE SPECIAL TAX
Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year,the Council
shall determine the Special Tax Requirement and shall levy the Special Tax until the total
Special Tax levy equals the Special Tax Requirement subject to the Maximum Special Tax.
The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in
Zone 1 and Zone 2 in an amount equal 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 Final Mapped Property in Zone 1 at up to 100%o'f the Initial Maximum
Special Tax for Final Mapped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the
second step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property in Zone 1 at up to 100%ofthelnitial Maximum
Special Tax for Undeveloped Properly;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
third step has been completed, the Special Tax shall be levied Proportionately on each
Assessor`s Parcel of Final Mapped Property in Zone 2 at up to 100%of the Initial Maximum
Special Tax for Final Mapped Property;
Fiflh: If additional monies are needed to satisfy the Special Tax Requirement afterthe fourth
stele has been completed,the Special Tax shall be levied Proportionately on each Assessor's
Parcel of Undeveloped Property in Zone 2 at up to 100%oflhe luitial Maximum Special Tax
for U ndeveloped Property;
Sixth: If additional monies are needed to satis fythe Special Tax Requirement after the fillh
step has been completed,then the levy of the Special Tax on each Assessor's Parcel of Final
Mapped Property and Undeveloped Property in Zone 1 and Zane 2 shall be increased in
equal percentages from the Initial Maximum Special Tax up to 100°% of the Maximum
Special Tax for Final Mapped Property and Undeveloped Property;
Seventh: If additional monies are needed to satisfy the Special Tax Requirement after the
sixth step has been completed,then the levy of the Special Tax on each Assessor's Parcel of
Developed Property in Zone 1 and Zone 2 whose Maxiammn Special Tax is 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;
Eighth: If additional monies are needed to satisfy the Special Tax Requirement, after the
seventh step has been completed, then the Special Tax shall be levied Proportionately on
each Assessor's Parcel of Taxable Public Property and Taxable Property Owner-Association
Properly at up to the 100% of Maxhnum Special Tax for Taxable Public Prolfq•? Gwl
Taxable Property Owner Association Property.
City of Palln Springs(Eseena Paine Springs) filly 8,2005
CFD No.2005-2 Page 9
Notwithstanding the above the Council may, in any Fi'seat year, levy Proportionately less ,
than 100%of the Aseigned Special Tax in step one(above),when(i)the Council is mo longer
required to levy the Special Tax parsuant to steps two through eight above in order to meet
the Special Tax Requirement, ii) all authorized Bonds have already been issued or the
Council has covenanted that it will not issue any additional l3onds(except refondingbonds)
to be supported by the Special Tax,and(iii)all Authorized Facilities havebeen constricted
and/or acquired.
Further notwithstanding the above, render no circumstances will the Special Tax levied
against any Assessor's Parcel of Residential'Property for which a Certificate of Occupancy
has been issued be increased by more than teat percent as a consequence of delinquency or
default by the owner of any other Assessor's Parcel within CFI)No. 2005-2,
E. EXEMPTIONS
No Special Tax shall be levied on up to 59.9 Acres of Public Property and Property Owner
Association Property in Zone 1 andup to 15.3 Acres of Public Property and Property Owner
Association Property in Zone 2. Tax-exempt status will be assigned by the CFD
Administrator in the cbronological order in which property becomes Public Property and/or
Property Owner Association Property. However,should an Assessor's Parcel no longer be
classified as Public Property or Property Owner Association Property,its tax-exempt status
will be revoked.
Public Property or Property Owner Association Property that is not exempt from the Special
Tax under this section shall be subject to the levy of the Special Tax and shall he taxed
Proportionately as part of the eighth step in Section D.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel sin error may submit a-written appeal to CFD No. 2005-2. The CFD
Administrator shall review the appeal and if the CFD Administrator concurs,the amomit of
the Special Tax levied shall be appropriately modified.
The Council may interpret this Date and Method of Apportionment for prn-poses of clarifying
any ambiguity and make determinations relative to the annual administration of the Special
Tax and any landowner or resident appeals. Any decision of the Council shall be final and
binding as to all persons.
G. MANNEAR OF COLLECTION
The Special Tax shall be collected in the sane manner and at the same time as ordinary act
valorem property taxes; provided, however, that CFD No. 2005-2 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.
City of Palm July 8,2005 Springs(Escena Palm Springs) page 14
CFD No. 2005-2 __
El. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section it:
"Buildout" means, for CFD No. 2005-2, that all expected building peuuits have been
issued.
"CFD Public Facilities" means either$14,S87,048 in 2005 dollars,which shall increaseby
the Construction Inflation Index on July 1,2006,and on cacti July 1 thereafter,er such lower
number as(i) determined by the CFD Administrator as saffrcienl to provide the Authorized
Facilities,or(ii)cleternimedby the Council concmrenllywith a covenant thatitwillnoti,ssue
any more Bonds(except refunding bonds)to be supporl.ed by the Special Taxes levied under
this Rate and Method of Apportionment as described in Section D.
"Colistrruction lutlation ,ludex" means the saunual percentage change in the Engineering
News Record Building Cost hndex 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 deterliabled 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 minus (i) public facility costs
previously paid from the Improvement Fund, (ii) moneys currently on deposit in the
linprovennent Fund, and(iii)moneys currently on deposit tit an escrow fund that are expected
to be available to finance the cost of CFD Public Facilities.
"Improvement Fund" rneans an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct CFD Public
Facilities eligible under the Act.
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding under the Indenture after the first interest and/or principal payment
date following the current Fiscal Year.
1. Prepayment to fidl
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 an Assessor's Parcel of Final
Mapped 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 prepayrneht amount for
such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for
pro-Ming this service. Prepayment must be made not less than 45 days prior to the
City, ofPalne Springs(Escena Palmr'Springs) Azzly.8,2005
C'FD No,2005 2 Page 11
next occurring date that notice of redemption of Bonds from the proceeds of such
prepayment may be given by the Trustee pursuant to the Indenture. '
The Special Tax Prepayment Amount (defined below) shall be calculated as
summarized below (capitalized terns as defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Ainoinit
plus Administrative Fees and Expenses
less Reserve Fund Credit
lass Capitalized interest Credit
Total: equals Prepayment Amount
As of the proposed date ofprepayment,the Special TaxPrepaymeut Amount shall be
calculated as follows:
Paragraph No.-
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax
and Backup Special Tax. For Assessor's Parcels of Final Mapped Property and
Undeveloped Property for which a building permit has been issued, compote the
Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as though it
Was already designated as Developed Property,based upon thebuilding 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. 2005-2 based on the
Developed Property Special Taxes which could be levied in the current Fiscal Year
on all expected development through Buildout of CFD No. 2005-2, excluding ally
Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the total
estimated Backup Special Taxes at Buildout for the entire CFD No. 2005-2,
excluding any Assessor's Parcels wluich have been prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
Previously Issued Bonds to compete the amount of Previously Issued Bonds to be
retired and prepaid(the "Bond Redemption Ainovnt").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the '
applicable redemption premimn (e.g., the redemption price-100%), if any, on the
Previously Issued Bonds to be redeemed(the"Redemption Preinium").
6. , Compute the current Future Facilities Costs.
hily 8,2005
City of Palm Springs(Escena Paint Springs) Page 12
CFD No.2005-2 —
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"Fuiure Facilities Amount").
8, Compute the amount needed to pay interest on the Bond Redemption Ainouuat from
the first bond interest and/or principal payment date following the current Fiscal Ycau
until the earliest redemption data for the Previously Issued Bonds.
9. Determine the Special Tax levied on the Assessor's Parcel in the current Fiscal Year
which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Special 'Tax Prepayment Amount less the Future
Facili lies A nownt and the Administrative Fees and Expenses (defined below)from
the dale of prepayment until the redemption date for the Previously Issued Bonds to
be redeemed vdtb 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, The admitvstrative fees and expenses of CFD No. 2005-2 are as calculated by the
CFD Administrator and include the costs of computation of the prepayment,Lhe 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
"Adninistnaive Fees and &penes").
13, The reserve fund credit(the"Reserve Fund Credit")shall equal the lesser of; (a)the
expected reduction in the reserve requirement (as defined in the Indenture), if any,
associated with, the redemption of Previously Issued Bonds as a result of the
prepayment,or(b)the amount derived by subtracting the new reserve requirement(as
defined in the Indenture)in effect after the redemption of Previously IssuedDonds as
a result of the prepayment from the balance in the reserve fund on the prepayment
date,but in no event shall such amount be less than zero. No Reserve Fund Credit
shall be granted if[lie amount then on deposit in the reserve fund for the Previously
Issued Bonds is below 100%of the reserve requirement(as defined,inthe Indenture).
14. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date itmuuediately following the first interest and/or principal
payment following the current Fiscal Year, a capitalized interest credit shall be
calculatedbymultiplyhng the larger quotient computed pursuant to paragraph 3(a)or
3(b) by the expected balance m the capitalized interest land or account under the
hnderlure after such first interest and/or principal payment(the"Capitalized Interest
Credit").
15. The Special Tax prepayment is equal to the sun of the ameuurts computed pursuant
to paragraphs 4, 5, 7, 11 and 12,less the amounts computed pursuant to paragraphs
13 and 14(the"PrepcaymentAmount").
City of Paint Springs(L'scena Paint Springs) Trily 8,2005
CT, No,2005-2 Page 13
From the Prepayment Amount,the amounts computed pursuant to paragraphs 4, 51 11, 13
and 14 shall,be deposited into the appropriate fiord as established under the bulenttue and be
used to retire Bonds or make debt service payments, The amount computed pursuant to
paragraph 7 shall be deposited into the hnprovement Fund. The amount computed pursuant
to paragraph 12 shall be retained by CFD No, 2005-2.
The Special Tax Prepayment Amount maybe ursuifrcient to redeein a fiill $5,000 increment
of Bonds. In such cases, the increment above $5 000 or integral multiple thereof will be
retained in the appropriate fiord established under the indenture to be used with the next
prepayment of Bonds or to make debt service payments.
As a result of the payrnenl of the current Fiscal Year's Special Tax levy as detennnted snider
paragraph 9(above),the GFD Administrator shall remove the current Fiscal Year's Special
Tax levy for such Assessor's Parcel from the County 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 ofihe Special Tax 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, at the
time of such proposed prepayment, the amount of Maximum Special Taxes that may be
levied on Taxable Property within CFD No. 2005-2 (after excluding 59.9 Acres of Public
Property and Property Owner Association Property in Zone 1 and 15.3 Acres of Public
Property and Property owner Association Property in Zone 2 as set forth in Section E)both
prior to and after the proposed prepayment is at least equal to the sum of (i) the
Administrative Expenses and (ii) 1.10 times maximum annual debt service, in each
remaining Fiscal Year on the outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Property,or an Assessor's Parcel of
Final Mapped Property or 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 Id.l;except that a partial prepayment shall be calculated according to the following
formula:
PP= [(PB—A)xF] +A
These tenras have the following meaning:
PP= the partial prepayment.
PE= the Special Tax Prepayment Amount calculated according m Section H:1.
F= the percentage,expressed as a decimal,by which the owner ofthe Assessor's Parcel '
is partially prepaying the Special Tax.
A= the Administrative Fees and Expenses calculated according to S2005
ection H.1.
City oj'PaGn Springs(Eseena Pahn Springs) Jraly 8,
CFD Na.2005-2 , Pagee4 1
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 ed for the partial prepayment of the Special Tax for an
Assessor's Parcel within 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
Council shall(i)distribute the funds remitted to it according to Section H.1,and(ii)indicate
in the records of CFD No.2005-2 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.
T. TERN[OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed forty-five years couunencing with
Fiscal Year 2005-2006,provided however that the Special Tax will cease to be levied in an
earlier Fiscal Year if the CFD Administrator has determined(i)that all required interest and
principal payments on the CFD No. 2005-2 Bonds have been paid; and(H) all Authorized
Facilities have been acquired and all reimbursements to the developer have been paid.
City,YPalm Springs(Escena Pains Springs) duly 3,2005
CEt7 No.200.5_2 Page 15
RESOLUTION NO. 21382
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DECLARING ITS
INTENTION TO INCUR BONDED INDEBTEDNESS IN THE
AMOUNT NOT TO EXCEED $21,000,000 WITHIN
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA) OF THE CITY OF PALM SPRINGS
WHEREAS, the City Council upon receipt of a petition (including consent and waiver)
(the "Petition ) as provided in Section 53318 of the Government Code of the State of
California instituted proceedings to form Community Facilities District No. 2005-2
(Escena) of the City of Palm Springs (the "Community Facilities District No. 2005-2" or
fire "District'), pursuant to the Mello-Roos Community Facilities Act of 1982,
commencing with Section 53311 of the Government Code of the State of California (the
"Act'), as amended, pursuant to a resolution adopted by the Council on the date hereof
to finance (1) the purchase, construction, modification, expansion, improvement or
rehabilitation of public facilities and the payment of development, impact and other fees
required therefore, identified in Exhibit "A" attached hereto and incorporated herein by
this reference, including all furnishings, equipment and supplies related thereto
(collectively, the "Facilities'); (2) the incidental expenses to be incurred in financing the
Facilities and forming and,administering the District (the "Incidental Expenses"); and (3)
payment and retirement of assessments in Assessment District No. 155 of the City of
Palm Springs, (the "AD 155 Payment"); and
WHEREAS, in order to finance the Facilities, incidental Expenses and the AD 155
Payment, the Council intends to authorize the issuance of bonds for the proposed
District in the maximum aggregate amount of not to exceed $21,000,000 within the
District; and
WHEREAS, the repayment of the bonds of the District is to be secured by special taxes
levied in the proposed District in accordance with Section 53328 of the Act, other than
those properties exempted from taxation in the rate and method of apportionment for
the proposed District set forth in Exhibit "C", adopted by the City Council by previous
Resolution.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE
AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. It is necessary to incur bonded indebtedness within the boundaries of the
proposed District in an amount not to exceed $21,000,000, to finance the costs of the
Facilities, Incidental Expenses and the AD 155 Payment, as permitted by the Act.
Resolution No. 21382
Page 2
Section 3. The bonds for the proposed District will be issued for the purpose of
financing the costs of the Facilities and the Incidental Expenses, including, but not
limited to, the funding of reserve funds for the bonds, the financing of costs associated
with the issuance of the bonds and all other costs and expenses necessary to finance
the Facilities which are permitted to be financed pursuant to the Act, and the payment of
all outstanding and unpaid assessments in Assessment District No. 155 of the City of
Palm Springs.
Section 4. It is the intent of the Council to authorize the sale of bonds for the
proposed District in one or more series, in the maximum aggregate principal amount not
to exceed $21,000,000 within the proposed District and at a maximum interest rate not
in excess of 12 percent per annum or such rate not in excess of the maximum rate
permitted by law at the time the bonds are issued. The term of the bonds of each series
shall be determined pursuant to a Resolution of the City Council acting in its capacity as
the legislative body of the District authorizing the issuance of the bonds of such series,
but such term shall in no event exceed 40 years or such longer term as is then
permitted by law.
Section 5. The City Council hereby declares its intention to conduct a Public Hearing
concerning the proposed debt issue in accordance with the Act. Any interested persons,
including all persons owning land or registered to vote within the proposed District, may
appear and be heard at the Hearing. '
Section 6. Notice is hereby given that a Public Hearing on these matters will be held
by the City Council on Wednesday September 7, 2005 at 6:00 p.m., or as soon
thereafter as feasible in the City Council Chambers at City Hall, located at 3200 E.
Tahquitz Canyon Way, Palm Springs, California.
Section 7. The proposition to incur bonded indebtedness in the maximum aggregate
principal amount not to exceed $21,000,000 shall be submitted to the qualified electors
of the District. A special community facilities district election shall be conducted on
September 7, 2005, which shall be conducted by a hand delivered or mailed ballot
election. The ballots shall be returned to the office of the election officer no later than
11:00 a.m. on September 7, 2005.
Section 8. The City Clerk shall cause notice to be given of the time and place of the
Public Hearing by causing the publishing of this Resolution once in the local paper not
less than seven (7) days before the date of the hearing and by posting a copy of this
Resolution on the official bulletin board customarily used by the City Council for the
posting of such notices, pursuant to the Act.
ADOPTED this 20th day of July 2005.
David H. Ready, Cit ,prtanager
Resolution No, 21382
Page 3
ATTEST:
Ja es Thompson, City Clerk
o/
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 21382 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on July 20, 2005, by the
following vote:
AYES: Councilmember Foat, Councilmember Pougnet, Councilmember Mills,
Mayor Pro Tom McCulloch and Mayor Oden.
NOES: None,
ABSENT: None.
ABSTAIN: None.
�fa4nes Thompson, City Clerk
ity of Palm Springs, California
Resolution No. 21382
Page 4
EXHIBIT "A"
TYPES OF FACILITIES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The General Description of the Improvements is as follows:
1. Street facilities, including, but not limited to, major arterials, highways, intersections,
access ramps, roadways, sidewalk, curb, gutters, striping, lighting, traffic
signalization, signage, landscaping of public streets and rights-of-way and
appurtenant facilities;
2. Storm control facilities, including, but not limited to, storm drains, channels,
detention, headwalls, riprap pads, retention and/or catch basins and appurtenant
facilities;
3. Sewer improvements, sanitary sewers, including, but not limited to, lift stations, force
mains, pump stations, transmission and main lines, valves, and appurtenant facilities
(including, but not limited to, the West Spine Sewer Improvements which have
already been completed);
4. Domestic and reclaimed water facilities, including, but not limited to, reservoirs,
pump stations, transmission lines, distribution facilities, lift stations, main lines,
valves, fire hydrants and appurtenant facilities (including, but not limited to, the West
Spine Water Improvements which have already been completed);
S. Park and recreational facilities and appurtenant facilities;
6. Impact and other fees, including but not limited to, TUMF, Quimby Act fees, water
fees, drainage fees, sewer treatment and connection fees, water supply fees, water
meter fees, water connection fees and frontage fees, storm drain fees, and other city
fees;
7. Mitigation costs and incidental expenses.
Resolution No. 21382
F'age 5
EXHIBIT "A"
(CONTINUED)
OTHER ITEMS TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The District may also finance any of the following:
1. Bond related expenses, including underwriters' discount, reserve fund, capitalized
interest, financial advisor fees and expenses, bond and disclosure counsel, special
tax consultant fees and expenses, dissemination agent fees and all other incidental
expenses.
2. Administrative fees of the City and the Bond trustee or fiscal agent related to the
District and the Bonds.
1 Reimbursement of costs related to the formation of the District advanced by the City
or any related entity, or any landowner or developer within the District, as well as
reimbursement of any costs advanced by the City or any related entity, or any
landowner or developer within the District, for facilities, fees or other purposes or
costs of the District.
4. Payment and retirement of all outstanding unpaid assessments in Assessment
District No. 155 of the City of Palm Springs.
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 substitutions 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 the Report.
RESOLUTION NO. 21383
' A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING AND ORDERING THE EXECUTION
OF THAT CERTAIN DEPOSIT AND
REIMBURSEMENT AGREEMENT WITH PALM
SPRINGS CLASSIC, LLC; AND MAKING CERTAlN
FINDINGS AND DETERMINATIONS IN
CONNECTION THEREWITH A5137
WHEREAS, there has been filed with the City Clerk that certain Deposit and
Reimbursement Agreement (the "Deposit and Reimbursement Agreement"), by
and between the City of Palm Springs (the "City") and Palm Springs Classic,
LLC, a Delaware Limited Liability Company (the "Developer"), the developer of
the real property (the "Property') described on Exhibit "A" attached hereto and
incorporated herein by this reference; and
WHEREAS, fhe Deposit and Reimbursement Agreement, the form of which is on
file with the City Clerk and by this reference incorporated herein, provides for the
deposit with City of certain funds to cover City expenses in connection with the
formation of a Community Facilities District comprising said Property, and
providing the means by which such deposit may be reimbursed to the Developer,
e such reimbursement to come from the proceeds from the sale of special tax
bonds to be issued pursuant to the Mello-Roos Community Facilities Act of 1982
(the "Mello-Roos Act'); and
WHEREAS, the City Council finds that the approval and execution of the Deposit
and Reimbursement Agreement is in the bell 'interest of the City and provides
the means by which such property development may occur without putting
general funds of the City at risk; and
WHEREAS, City will hold and disburse such funds pursuant to the Deposit and
Reimbursement Agreement;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2, That the Deposit and Reimbursement Agreement in the form on file
with the City Clerk is hereby approved.
Section 3. That the City Manager or Director of Finance is hereby authorized
and directed to execute the Deposit and Reimbursement Agreement for and on
behalf of the City.
Resolution No. 21383
Page 2
Section 4. The City Manager or Director of Finance is hereby instructed to '
receive the cash deposit heretofore made by the Developer and deposit the
same in a designated account to be used to pay the formation costs of the
Community Facilities District and the proper costs related thereto. Upon receipt
of bond proceeds, such funds advanced by the Developer shall be reimbursed to
the Developer from bond proceeds pursuant to the Deposit and Reimbursement
Agreement.
ADOPTED this 20th day of July 2005.
David H. Ready, City�F°a'nager
ATTEST:
/ ames Thompson, City Clerk
C CERTIFICATION
STATE OF CALIFORNIA ) '
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 21383 is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on July 20, 2005,
by the following vote:
AYES: Councilmember Foat, Councilmember Pougnet, Councilmember
Mills, Mayor Pro Tom McCulloch and Mayor Oden.
NOES: None.
ABSENT: None.
ABSTAIN: None. / l
ames Thompson, City Clerk
City of Palm Springs, California
Resolution No. 21383
Page 3
EXHIBIT "A°
PROPERTY DESCRIPTION
Tract Map No. 32233-1 - Planning Area 8
Tract Map No. 32233-2 - Planning Areas 7B & 70
Tract Map No. 32233-3 - Planning Areas 9A & 913
Tract Map No. 32233-4 - Planning Area 6
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS APPROVING AND
ORDERING THE EXECUTION OF THAT CERTAIN
JOINT COMMUNITY FACILITIES AGREEMENT
WITH PALM SPRINGS CLASSIC, LLC AND
DESERT WATER AGENCY; AND MAKING
CERTAIN FINDINGS AND DETERMINATIONS IN
CONNECTION THEREWITH
WHEREAS, there has been filed with the City Clerk that certain Joint Community
Facilities Agreement (the "Agreement'), by and among the CITY OF PALM
SPRINGS (the "City"), PALM SPRINGS CLASSIC, LLC, the developer of the real
property described on Exhibit "A" hereto and by this reference incorporated
herein, and DESERT WATER AGENCY, a public agency of the State of
California; and
WHEREAS, the City Council finds that the approval and execution of the
Agreement is in the best interest of the City and provides the means by which
such property development may occur without putting general funds of the City or
Desert at risk; and
WHEREAS, City will hold and disburse funds pursuant to the Agreement;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. That the recitals set forth hereinabove are true and correct in all
respects.
Section 2. That the Agreement in the form on file with the City Clerk is hereby
approved.
Section 3. That the City Manager or Director of Finance & Treasurer of the
City is hereby authorized and directed to execute the Agreement, and the City
Clerk is hereby authorized to attest to such signature, for and on behalf of the
City.
ADOPTED this 5t' day of October 2005.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on October 5,
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
EXHIBIT A
PROPERTY DESCRIPTION
The land referred to in the Agreement is situated in the State of California,
County of Riverside and is described as the Land included on the Boundary Map
of Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs,
recorded on July 28, 2005 in Book 63 at Page 60 of the Maps of Assessment and
Community Facilities Districts in the Office of the County Recorder of the County
of Riverside.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS DETERMINING THE
VALIDITY OF PRIOR PROCEEDINGS,
ESTABLISHING COMMUNITY FACILITIES
DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF
PALM SPRINGS; AUTHORIZING THE LEVY OF A
SPECIAL TAX WITHIN COMMUNITY FACILITIES
DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF
PALM SPRINGS; ESTABLISHING AN
APPROPRIATIONS LIMIT; AND TAKING CERTAIN
OTHER ACTIONS RELATING TO SAID DISTRICT
WHEREAS, the City Council (the "Council') of the City of Palm Springs,
California (the "City"), on July 20, 2005, has heretofore adopted Resolution No.
21381 (the 'Resolution of Intention") stating its intention to form Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs (the "District')
pursuant to 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, a copy of the Resolution of Intention, incorporating a description and
map of the proposed boundaries of the District and setting forth the rate and
method of apportionment and manner of collection of the special tax to be levied
within the proposed District is on file with the City Clerk and incorporated herein
by reference with such changes to the terms thereof, including but not limited to,
revisions to the rate and method of apportionment of the special tax as have
been made and submitted with this Resolution; and
WHEREAS, a report by each City officer who is or will be responsible for the
District (the `Report'), has been filed with the Council pursuant to the Resolution
of Intention; and
WHEREAS, the Resolution of Intention set September 7, 2005 as the date of the
public hearing on the formation of the District; and
WHEREAS, said hearing was opened and continued at the request of the owners
of the property in the proposed District to October 5, 2005; and
WHEREAS, at said hearing all persons not exempt from the special tax desiring
to be heard on all matters pertaining to the formation of the District were heard
and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to the Council on said
matters before it, and this Council at the conclusion of said hearing is fully
advised in the premises.
Resolution No.
Page 2
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. That the above recitals are all true and correct.
Section 2. Pursuant to Section 53325.1(b) of the Government Code, the
Council finds and determines that the proceedings prior hereto were valid and in
conformity with the requirements of the Act including, without limitation, the
following:
Filing of the petition of a landowner requesting institution of proceedings to
establish the District;
Adoption of a Resolution of Intention to establish the District;
Adoption of a Resolution of Intention to Incur Bonded Indebtedness (the
"Resolution of Intention to Incur Bonded Indebtedness") in an amount not to
exceed $21,000,000 within the proposed District;
Publication and mailing of notice of public hearing on the establishment of the
District and of the proposed debt issue;
Conducting of a public hearing on the establishment of the District, the proposed
public facilities and services and the incurring of the proposed debt, at which time
all interested persons or taxpayers not exempt from the special tax were
permitted to protest orally or in writing against the establishment of the District,
were permitted to file written protests to the regularity or sufficiency of the
proceedings, and any person interested, including persons owning property
within the District, were permitted to appear and present any matters material to
the questions set forth in the Resolution of Intention and the Resolution of
Intention to Incur Bonded Indebtedness.
Section 3. The Report, as now submitted is hereby approved and is made a
part of the record of the hearing, and is ordered kept on file with the transcript of
these proceedings and open for public inspection.
Section 4. A community facilities district to be designated "Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs" (the "District")
is hereby established pursuant to the Act.
Section 5. The description and map of the boundaries of the District on file in
the City Clerk's office and as described in said Resolution of Intention and
incorporated herein by reference, shall be the boundaries of the District. The
map of the proposed boundaries of the District has been recorded in the Office of
the County Recorder of Riverside County, California in Book 63, Page 60 of the
Book of Maps of Assessment and Community Facilities Districts (Document
Number 2005-0605183).
Resolution No.
Page 3
Section 6. The type of public facilities authorized to be provided within the
District include certain real and other tangible property with an estimated useful
life of five years or longer, including public infrastructure facilities, and other
governmental facilities which the City is authorized by law to construct, own or
operate, within or without the District, which is necessary to meet increased
demands placed upon the City as a result of development or rehabilitation
occurring within the District, and the payment of development, impact and other
fees of public agencies (the "Facilities"). The Facilities are more fully described
in Exhibit "B" attached hereto and by this reference incorporated herein.
Section 7. Except where funds are otherwise available, there shall be levied
annually in accordance with procedures contained in the Act a special tax within
the District, secured by recordation of a continuing lien against all nonexempt
real property in the District, sufficient to pay for: (i) the Facilities and Incidental
Expenses; and (ii) the principal and interest and other periodic costs on bonds or
other indebtedness issued to finance the Facilities, the payment and retirement
of assessments in Assessment District No. 155 of the City of Palm Springs (the
"AD 155 Payment"), and Incidental Expenses, including the establishment and
replenishment of any reserve funds deemed necessary by the District, and any
remarketing, credit enhancement and liquidity facility fees (including such fees for
instruments which serve as the basis of a reserve fund in lieu of cash). The rate
and method of apportionment and manner of collection of the special tax within
the District is described in detail in Exhibit "A" attached hereto and incorporated
herein by this reference. Exhibit "A" allows each landowner within the District to
estimate the maximum amount that may be levied against each parcel.
Section 8. If special taxes of the District are levied against any parcel used for
private residential purposes, (i) the maximum special tax rate shall not be
increased over time except that it may be increased by an amount not to exceed
two percent (2%) per year to the extent permitted in the rate and method of
apportionment; (ii) such tax shall be levied for a period not to exceed forty-five
(45) years commencing with Fiscal Year 2005-2006, as further described in
Exhibit "A" hereto; and (iii) under no circumstances will such special tax be
increased more than ten percent (10%) as a consequence of delinquency or
default by the owner of any other parcels within the District.
Section 9. The special tax within the District is based on the expected demand
that each parcel of real property the District will place on the Facilities, on the
benefit that each parcel derives from the right to access the Facilities, and on
other factors. The Council hereby determines the rate and method of
apportionment of the special tax set forth in Exhibit "A" to be reasonable. The
special tax is apportioned to each parcel on the foregoing basis pursuant to
Section 53325.3 of the Act and such special tax is not based upon the value or
ownership of real property. In the event that a portion of the property within
Community Facilities District No. 2005-2 shall become for any reason exempt,
wholly or partially, from the levy of the special tax specified on Exhibit "A", the
Council shall, on behalf of the District, cause the levy to be increased, subject to
the limitation of the maximum special tax for a parcel as set forth in Exhibit "A," to
Resolution No.
Page 4
the extent necessary upon the remaining property within the District which is not
delinquent or exempt in order to yield the special tax revenues required for the
purposes described herein. The obligation to pay special taxes may be prepaid
as set forth in Exhibit "A."
Section 10. Pursuant to and in compliance with the provisions of Government
Code Section 50075.1 , the City Council hereby establishes the following
accountability measures pertaining to the levy by the District of the Special Tax
described in Section 7 above:
A. Such Special Tax shall be levied for the specific purposes set forth in
Section 6 hereof.
B. The proceeds of the levy of such Special Tax shall be applied only to the
specific purposes set forth in Section 6 hereof.
C. The District shall establish an account or accounts into which the
proceeds of such Special Tax shall be deposited.
D. The City Manager or the Bond Purchase Agreement, or his or her
designee, acting for and on behalf of the District, shall annually file a report with
the City Council as required pursuant to Government Code Section 50075.3.
Section 11. Upon recordation of a notice of special tax lien pursuant to Section
3114.5 of the Streets and Highways Code, a continuing lien to secure each levy
of the special tax shall attach to all nonexempt real property in the District, and
this lien shall continue in force and effect until the special tax obligation is prepaid
or otherwise permanently satisfied and the lien cancelled in accordance with law
or until collection of the tax by the District ceases.
Section 12. The Council finds that the Facilities are necessary to meet the
increased demand put upon the City as a result of the development within the
District.
Section 13. The Council finds that there is not an ad valorem property tax
currently being levied on property within the proposed District for the exclusive
purpose of paying principal of or interest on bonds or other indebtedness
incurred to finance construction of capital facilities which provide the same
services to the territory of the District as provided by the Facilities.
Section 14. An appropriation limit for the District is hereby established as an
amount equal to all the proceeds of the special tax collected annually and as
defined by Article XIIIB of the California Constitution, as adjusted for changes in
the cost of living and changes in population.
Section 15. Written protests against the establishment of the District, or against
the furnishing of specified services or facilities or the levying of a specified
special tax within the District, have not been filed by fifty percent (50%) or more
Resolution No.
Page 5
of the registered voters or property owners of one-half (1/2) or more of the area of
land within the District.
Section 16. The proposed special tax to be levied in the District to pay for all
the proposed Facilities and the AD 155 Payment has not been precluded by
protests by owners of one-half or more of the land in the territory included in the
District pursuant to Government Code Section 53324.
Section 17. The Office of the City Manager, 3200 E. Tahquitz Canyon Way,
Palm Springs, California 92570, (760) 323-8229, or its designee, is designated to
be responsible for preparing annually a current roll of special tax levy obligations
by assessor's parcel number and for estimating future special tax levies pursuant
to Section 53340.1 of the Government Code.
Section 18. The City may accept advances of funds or work-in-kind from any
sources, including private persons or private entities, and is authorized and
directed to use such funds for any authorized purpose, including any cost
incurred in creating the District. The District may enter into an agreement to
repay all of such funds as are not expended or committed for any authorized
purpose at the time of the election on the levy of the Special Tax, if the proposal
to levy such tax should fail, and to repay all of such funds advanced if the levy of
the Special Tax shall be approved by the qualified electors of the District.
Section 19. The City Clerk is directed to certify and attest to this Resolution and
to take any and all necessary acts to call, hold, canvass and certify an election or
elections on the incurring of bonded indebtedness, the levy of the special tax,
and the establishment of the appropriation limit. The voting procedure with
respect to the establishment of the District and the imposition of the special tax
shall be by hand delivered ballot election.
ADOPTED this 5thth day of October, 2005.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on October 5,
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA)
CITY OF PALM SPRINGS
[See Attached]
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA)
OF THECITY OF PALM SPRINGS
A Special Tax shall be levied on all Assessor's Parcels in Community Facilities District No.2005-2
(Escena) of the City of Palm Springs ("CFD No. 2005-2") and collected each Fiscal Year
conmmencing in Fiscal Year 2005-2006,in an amount determined through the application of the Rate
and Method of Apportionment as described below. All of the real property in CFD No. 2005-2,
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. The square footage of an Assessor's Parcel is equal to the Acreage of such
parcel multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982,being Chapter 2.5,Part 1,
Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No.2005-2: 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. 2005-2 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2005-2 or any designee thereof of
complying with City, CFD No. 2005-2 or obligated persons disclosure requirements of
applicable federal and state securities laws and 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.2005-2 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 amival administration fees and third party expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or CFD No. 2005-2 for any
other administrative purposes of CFD No.2005-2,including attorney's fees and other costs
related to commencing and pursuing to completion any foreclosure as a result 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.
CFD No.2005-2(Escena)of the City of Palm Springs
page 1
"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.L(b)below.
"Authorized Facilities" means those authorized improvements eligible under the Act and
provided by CFD No. 2005-2 under the authorized bonding program for CFD No. 2005-2.
"Backup Special Tax " means the Special Tax applicable to each Assessor's Parcel of
Developed Property in each Zone, as determined in accordance with Section C.L(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 CFD No. 2005-2 under the Act.
"Certificate of Occupancy"means a certificate issued by the City that authorizes the actual
occupancy of a dwelling unit for habitation by one or more residents.
"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.2005-2"means Commnmity Facilities District No.2005-2(Escena)of the City of
Palm Springs.
"City" means the City of Palm Springs, California.
"Council" means the City Council of the City, acting as the legislative body of CFD No.
2005-2.
"County" means the County of Riverside, California.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Properly Owner Association Property, for which the
Final Subdivision was recorded on or before January 1 of the prior Fiscal Year and a
building permit for new construction was issued after January 1,2005 and on or before May
1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied.
"Final Mapped Property"means,for each Fiscal Year,all Taxable Property,exclusive of
Developed Property, Taxable Property Owner Association Property or Taxable Public
Property, which as of January 1 of the previous Fiscal Year was located within a Final
Subdivision.
"Final Subdivision" means a subdivision of property by recordation of a final map,parcel
map, or lot line adjustment, pursuant to the Subdivision Map Act(California Government
Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California
Civil Code Section 1352 that creates individual lots for which building permits may be
issued without farther subdivision.
CFD No.2005-2(Escena) of the City ofPaim Springs
Page 2
"Fiscal Year" means the period starting.hrly 1 and endnig 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.
"Initial Maximum Special Tax" means the initial maximum Special Tax, determined in
accordance with Section C.2.(a) below, that can be levied in any Fiscal Year on any
Assessor's Parcel of Final Mapped Property and Undeveloped Property.
"Land Use Class" means any of the classes listed in Table 1 below.
"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 permitting the construction of one or more non-residential units or
facilities has been issued by the City.
"Outstanding Bonds" mean all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association Property"means,for each Fiscal Year,any property within
the boundaries of CFD No. 2005-2 that was owned by a property owner association,
including any master or sub-association, as of January 1 of the prior Fiscal Year.
"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 Final Mapped Property, "Proportionately"means that the ratio of the actual Special Tax
levy per Acre to the Initial Maximum Special Tax per Acre is equal for all Assessor's
Parcels of Final Mapped Property. For Undeveloped Property, "Proportionately"means that
the ratio of the actual Special Tax levy per Acre to the Initial Maximum Special Tax per
Acre is equal for all Assessor's Parcels of Undeveloped Property. The term
"Proportionately"may similarly be applied to other categories of Taxable Property as listed
in Section D below.
"Public Property" means, for each Fiscal Year, (i) any property within the boundaries of
CFD No.2005-2 owned by,irrevocably offered or dedicated to,or over,or through or under
which an easement for purposes of public right-of-way has been granted, to the federal
government,the State,the County,the City,or any local government or other public agency
as of January 1 of the previous Fiscal Year, provided 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 according to its use; or(ii) any property within the boundaries of CFD
No. 2005-2 that was encumbered, as of January 1 of the previous Fiscal Year, by an
unmanned utility easement making impractical its utilization for other than the purpose set
forth in the easement.
CFD No. 2005-2(Escena)of the City of Palm Springs
Page 3
"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 for an
Assessor's Parcel shall be made by reference to the building pennit(s) issued for such
Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building pennitpennitting the constriction thereon of one ormore residential dwellingunits
has been issued by the City.
"Single Family Attached Property" means all Assessor's Parcels of Residential Property
for which building permits have been issued for attached residential units.
"Single Family Detached Property"means all Assessor's Parcels of Residential Property
for which building permits have been issued for detached residential units.
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 2005-2 to fiord the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2005-2 to: (i) pay debt service on all Outstanding Bonds due in the calendar year
commencing in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not
limited to, credit enhancement and rebate payments on the Bonds due in the calendar year
commencing in such Fiscal Year; (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 Authorized Facilities to the extent that the
inclusion of such amount does not increase the Special Tax levy on Undeveloped Property;
(vi)pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate
for the Special Tax levy in the previous Fiscal Year; less (vii)a credit for fiords 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.
2005-2 that are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means, for each Fiscal Year, all
Assessor's Parcels of Property Owner Association Property that are not exempt from the
Special Tax pursuant to Section E below.
"Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public
Property that are not exempt from the Special Tax pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture.
CFD No. 2005-2(Eseena)of the City of Pahn Springs
Page 4
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified
as Developed Property, Final Mapped Property, Taxable Property Owner Association
Property or Taxable Public Property.
"Zone" means Zone 1 or Zone 2, as applicable.
"Zone 1"means all property currently within CFD No.2005-2 which is not located in Zone
2.
"Zone 2"means the land area geographically identified as Lots 44 through 50 in Tract Map
No. 32233-1 recorded with the County on May 23, 2005 as Document No. 2005-0409493.
Zone 2 may be subject to amendment from time-to-time or modification pursuant to a final
map or precise site plan for such property at the sole discretion of the CFD Administrator
provided that such amendment or modification will not reduce the amount of Maximum
Special Tax below the amount required to equal at least 1.1 times the maximum amoral debt
service on all Outstanding Bonds, plus the Administrative Expenses.
B. ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, all Taxable Property within CFD No. 2005-2 shall be assigned to a Zone
and further classified as Developed Property,Filial Mapped Property,Undeveloped Property,
Taxable Property Owner Association Property, or Taxable Public Property, and shall be
subject to Special Taxes in accordance with this Rate and Method of Apportionment
determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
Residential Property shall be assigned to Land Use Classes 1 through 9 as listed in Table 1
below based on the type of use and the Residential Floor Area for each unit. Non-
Residential Property shall be assigned to Land Use Class 10. With respect to Residential
Property, the Residential Floor Area shall be determined from the most recent building
permit issued prior to the issuance of a Certificate of Occupancy for such Assessor's Parcel.
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 2005-2006 Assigned Special Tax for each Land Use Class is
shown below in Table 1.
CFD No. 2005-2(Escena) of the City of Paha Springs
Page 5
TABLE
Fiscal Year 2005-2006
Assigned Special Taxes for Developed Property
Land Use Residential
Description Assigned
Class
Floor Area Special Tax
1 Single Family Detached Property More than 3,200 sq. ft. $2,450 per unit
2 Single Family Detached Property 2,801 —3,200 sq, ft. $2,150 per unit
3 Single Family Detached Property 2,501 —2,800 sq. ft. $1,950 per unit
4 Single Family Detached Property 2,201—2,500 sq. ft. $1,800 per unit
5 Single Family Detached Property Less than 2,201 sq. ft. $1,650 per unit
6 Single Family Attached Property More than 1,600 sq. ft. $1,450 per umt
7 Single Family Attached Property 1,401 — 1,600 sq. ft. $1,050 per unit
8 Single Family Attached Property 1,201 — 1,400 sq. ft.
$850 per unit
9 Single Family Attached Property Less than 1,201 sq. ft. $550 per unit
10 Non-Residential Property NA $11,662 per Acre
(c) Backup Special Tax
The Fiscal Year 2005-2006 Backup Special Tax attributable to a Final
Subdivision in Zone 1 or Zone 2 will equal the applicable Backup Special
Tax for such Zone,identified in Table 2 below,multiplied by the Acreage of
all Taxable Property, exclusive of any Taxable Property Owner Association
Property and Taxable Public Property,therein. The Backup Special Tax for
each Assessor's Parcel of Residential Property shall be computed by dividing
the Backup Special Tax attributable to the applicable Final Subdivision by
the number of Assessor's Parcels for which building permits for residential
constriction have or maybe issued(i.e.,the number of residential lots). The
Backup Special Tax for each Assessor's Parcel of Non-Residential Property
in Zone 1 or Zone 2 shall equal the applicable Backup Special Tax for such
Zone, identified in Table 2 below, multiplied by the Acreage of such
Assessor's Parcel.
TABLE 2
Fiscal Year 2005-2006
Backup Special Tax for Developed Property
Special Tax Classification Backup Special Tax
Zone 1 $12,277 per Acre
Zone 2 $16,907 per Acre
CFD No.2005-2(Escena)of the City ofPalne Springs
Page 6
If a Final Subdivision includes Assessor's Parcels of Taxable Properly for
which building permits for both residential and non-residential construction
may be issued, exclusive of Taxable Property Owner Association Property
and Taxable Public Property, then the Backup Special Tax for each
Assessor's Parcel of Residential Property shall be computed exclusive of the
Acreage and Assessor's Parcels of property for which building permits for
non-residential constriction may be issued.
Notwithstanding the foregoing, if all or any portion of the Final
Subdivision(s) described in the preceding paragraphs is subsequently
changed or modified by recordation of a lot line adjustment or similar
instrument, and only if the CFD Administrator determines that such change
or modification results in a decrease in the number of Assessor's Parcels of
Taxable Property for which building permits for residential construction have
or may be issued within such Final Subdivision,then the Backup Special Tax
for each Assessor's Parcel of Developed Property that is part of the lot line
adjustment or similar instrument for such Final Subdivision shall be a rate
per Acre as calculated below. The Backup Special Tax previously
determined for an Assessor's Parcel of Developed Property that is not part of
the lot line adjustment or similar instrument for such Final Subdivision shall
not be recalculated.
1. Determine the total Backup Special Tax anticipated to apply to
the changed or modified portion of the Final Subdivision area
prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the Acreage
of Taxable Property which is ultimately expected to exist in such
changed or modified portion of the Final Subdivision area, as
reasonably determined by the CFD Administrator.
3. The result of paragraph 2 above shall be the Backup Special Tax
per Acre which shall be applicable to Assessor's Parcels of
Developed Property in such changed or modified portion of the
Final Subdivision area for all remaining Fiscal Years in which the
Special Tax may be levied.
CFD No. 2005-2(Eseena) of the City of Pabn Springs
Page 7
Furthermore,all Assessors' Parcels within CFD No.2005-2 will be relieved
simultaneously and permanently from the obligation to pay and disclose the
Backup Special Tax of the CFD Administrator determines that(i)the annual
debt service required for the Outstanding Bonds, when compared to the
Assigned Special Taxes that may be levied against all Assessors' Parcels of
Developed Property in CFD No.2005-2 result in 110%debt service coverage
(i.e., the Assigned Special Taxes that may be levied against all Developed
Property in CFD No. 2005-2 in each remaining Fiscal Year based on then
existing development in CFD No. 2005-2 is at least equal to the sum of(a)
the Administrative Expenses and (b) 1.10 tunes maximum annual debt
service in each remaining Fiscal Year on the Outstanding Bonds),and(ii)all
authorized Bonds have already been issued or the Council has covenanted
that it will not issue any additional Bonds (except refunding bonds) to be
supported by the Special Tax in CFD No. 2005-2.
(d) Increase in the Assigned Special Tax and Backup Special Tax
The Fiscal Year 2005-2006 Assigned Special Tax, identified in Table 1
above, and Backup Special Tax, identified in Table 2 above, shall not be
subject to change and shall therefore remain the same in every Fiscal Year.
(e) Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may contain
more than one Land Use Class. The Maximum Special Tax levied on an
Assessor's Parcel shall be the sum of the Maximum Special Tax for all Land
Use Classes located on that Assessor's Parcel. The CFD Administrator's
allocation to each type of property shall be final.
2. Final Mapped Property, Undeveloped Property, Taxable Property Owner
Association Property, and Taxable Public Property
(a) Initial Maximum Special Tax
The Fiscal Year 2005-2006 Initial Maximum Special Tax for Final Mapped
Property and Undeveloped Property in Zone 1 or Zone 2 shall be$11,662 per
Acre, and shall not be subject to change and shall therefore remain the same
in every Fiscal Year.
(b) Maximum Special Tax
The Fiscal Year 2005-2006 Maximum Special Tax for Final Mapped
Property, Undeveloped Property, Taxable Property Owner Association
Property,and Taxable Public Property in Zone 1 or Zone 2 shall be$16,907
per Acre, and shall not be subject to change and shall therefore remain the
same in every Fiscal Year.
CFD No.2005-2(Escena)of the City of Pahn Springs
Page 8
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the Council
shall determine the Special Tax Requirement and shall levy the Special Tax until the total
Special Tax levy equals the Special Tax Requirement subject to the Maximum Special Tax.
The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in
Zone 1 and Zone 2 in an amount equal 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 Final Mapped Property in Zone 1 at up to 100%of the Initial Maximum
Special Tax for Final Mapped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the
second step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property in Zone 1 at up to 100%of the Initial Maximum
Special Tax for Undeveloped Property;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
third step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Final Mapped Property in Zone 2 at up to 100%of the Initial Maximum
Special Tax for Final Mapped Property;
Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the fourth
step has been completed,the Special Tax shall be levied Proportionately on each Assessor's
Parcel of Undeveloped Property in Zone 2 at up to 100% of the Initial Maximum Special
Tax for Undeveloped Property;
Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the fifth
step has been completed,then the levy of the Special Tax on each Assessor's Parcel of Final
Mapped Property and Undeveloped Property in Zone 1 and Zone 2 shall be increased in
equal percentages from the Initial Maximum Special Tax up to 100% of the Maximum
Special Tax for Final Mapped Property and Undeveloped Property;
Seventh: If additional monies are needed to satisfy the Special Tax Requirement after the
sixth step has been completed,then the levy of the Special Tax on each Assessor's Parcel of
Developed Property in Zone 1 and Zone 2 whose Maximum Special Tax is 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;
Eighth: If additional monies are needed to satisfy the Special Tax Requirement after the
seventh step has been completed, then the Special Tax shall be levied Proportionately on
each Assessor's Parcel of Taxable Public Properly and Taxable Property Owner Association
Properly at up to the 100% of Maximum Special Tax for Taxable Public Property and
Taxable Property Owner Association Property.
CFD No. 2005-2(Escena)of the City of Pahn Springs
Page 9
Notwithstanding the above the Council may, in any Fiscal year, levy Proportionately less
than 100% of the Assigned Special Tax in step one (above), when (i) the Council is no
longer required to levy the Special Tax pursuant to steps two through eight above in order to
meet the Special Tax Requirement,ii)all authorized Bonds have already been issued or the
Council has covenanted that it will not issue any additional Bonds(except refunding bonds)
to be supported by the Special Tax, and(iii)all Authorized Facilities have been constricted
and/or acquired.
Further notwithstanding the above, Linder no circumstances will the Special Tax levied
against any Assessor's Parcel of Residential Property for which a Certificate of Occupancy
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 CFD No. 2005-2.
E. EXEMPTIONS
No Special Tax shall be levied on up to 59.9 Acres of Public Property and Property Owner
Association Property in Zone 1 and up to 15.3 Acres of Public Property and Property Owner
Association Property in Zone 2. Tax-exempt status will be assigned by the CFD
Administrator in the chronological order in which property becomes Public Property and/or
Property Owner Association Property. However, should an Assessor's Parcel no longer be
classified as Public Property or Property Owner Association Property,its tax-exempt status
will be revoked.
Public Property or Property Owner Association Property that is not exempt from the Special
Tax under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the eighth step in Section D.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is in error may submit a written appeal to CFD No. 2005-2. The CFD
Administrator shall review the appeal and if the CFD Administrator concurs,the amount of
the Special Tax levied shall be appropriately modified.
The Council may interpret this Rate and Method of Apportionment forpurposes of clarifying
any ambiguity and make determinations relative to the annual administration of the Special
Tax and any landowner or resident appeals. Any decision of the Council shall be final and
binding as to all persons.
G. 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 CFD No. 2005-2 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.
CFD No.2005-2(Escena)o/'the City of Palm Springs
Page 10
H. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section H:
"Buildout" means, for CFD No. 2005-2, that all expected building permits have been
issued.
"CFD Public Facilities"means either$14,887,048 in 2005 dollars,which shall increase by
the Construction Inflation Index on July 1,2006,and on each July 1 thereafter,or such lower
number as(i)determined by the CFD Administrator as sufficient to provide the Authorized
Facilities, or (ii) determined by the Council concurrently with a covenant that it will not
issue any more Bonds(except refunding bonds)to be supported by the Special Taxes levied
under this Rate and Method of Apportionment as described in Section D.
"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 rims (i) public facility costs
previously paid from the Improvement Fund, (ii) moneys currently on deposit in the
Improvement Fumd, and (iii) moneys currently on deposit in an escrow fund that are
expected to be available to finance the cost of CFD Public Facilities.
"Improvement Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct CFD Public
Facilities eligible under the Act.
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding wider the Indenture after the first interest and/or principal payment
date following the current Fiscal Year.
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 an Assessor's Parcel of Final
Mapped 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 for
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
CFD No.2005-2(Escena)of the City of Pali Springs
Page 11
next occurring date that notice of redemption of Bonds from the proceeds of such
Prepayment may be given by the Trustee pursuant to the Indenture.
The Special Tax Prepayment Amount (defined below) shall be calculated as
surmnarized 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 Special Tax Prepayment Amount shall be
calculated as follows:
Paragraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax
and Backup Special Tax. For Assessor's Parcels of Final Mapped Property and
Undeveloped Property for which a building permit has been issued, 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. 2005-2 based on the
Developed Property Special Taxes which could be levied in the current Fiscal Year
on all expected development through Buildout of CFD No. 2005-2, excluding any
Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the total
estimated Backup Special Taxes at Buildout for the entire CFD No. 2005-2,
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
Previously Issued Bonds to compute the amount of Previously Issued 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 preinimn (e.g., the redemption price-100%), if any, on the
Previously Issued Bonds to be redeemed(the "Redemption Premium").
6. Compute the current Future Facilities Costs.
CFD No.2005-2(Fseena)of the City of Pahn Springs
Page12
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 Previously Issued Bonds.
9. Determine the Special Tax levied on the Assessor's Parcel in the current Fiscal Year
which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Special Tax Prepayment Amount less the Future
Facilities Amount and the Administrative Fees and Expenses (defined below) from
the date of prepayment until the redemption date for the Previously Issued 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. The administrative fees and expenses of CFD No. 2005-2 are as calculated by the
CFD Administrator and include 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. The reserve fund credit(the"Reserve Fund Credit")shall equal the lesser of: (a)the
expected reduction in the reserve requirement(as defined in the Indenture), if any,
associated with the redemption of Previously Issued Bonds as a result of the
prepayment, or(b) the amount derived by subtracting the new reserve requirement
(as defined in the Indenture) in effect after the redemption of Previously Issued
Bonds as a result of the prepayment from the balance in the reserve fund on the
prepayment date, but in no event shall such amount be less than zero. No Reserve
Frmd Credit shall be granted if the amount then on deposit in the reserve fund for the
Previously Issued Bonds is below 100%of the reserve requirement(as defined in the
Indenture).
14. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following 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 fimd or account under the
Indenture after such first interest and/or principal payment(the"Capitalized Interest
Credit").
CFD No. 2005-2(Escena)of the City of Palat Springs
Page 13
15. The Special Tax prepayment is equal to the surn of the amounts computed pursuant
to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs
13 and 14 (the "PrepaynientAmount").
From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13
and 14 shall be deposited into the appropriate fiend as established under the Indenture and be
used to retire Bonds or make debt service payments. The amount computed pursuant to
paragraph 7 shall be deposited into the Improvement Fund. The amount computed pursuant
to paragraph 12 shall be retained by CFD No. 2005-2.
The Special Tax Prepayment Amount may be insufficient to redeem a full$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 lax 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 the Special Tax 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 umless, at the
time of such proposed prepayment, the amount of Maximum Special Taxes that may be
levied on Taxable Property within CFD No. 2005-2 (after excluding 59.9 Acres of Public
Property and Property Owner Association Property in Zone 1 and 15.3 Acres of Public
Property and Property Owner Association Property in Zone 2 as set forth in Section E)both
prior to and after the proposed prepayment is at least equal to the sum of (i) the
Administrative Expenses and (ii) 1.10 times maximum annual debt service, in each
remaining Fiscal Year on the Outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Properly, or an Assessor's Parcel of
Final Mapped Property or 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=[(PE—A) x F] +A
These terms have the following meaning:
PP = the partial prepayment.
PE= the Special Tax Prepayment Amount calculated according to Section H.I.
F = the percentage,expressed as a decimal,by which the owner of the Assessor's Parcel
is partially prepaying the Special Tax.
CFD No. 2005-2(Escena)of the GO,of Patin Springs
Page 14
A= the Administrative Fees and Expenses calculated according to Section H.1.
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 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
Council shall(i)distribute the fiords remitted to it according to Section H.1,and(ii)indicate
in the records of CFD No. 2005-2 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.
I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed forty-five years commencing with
Fiscal Year 2005-2006,provided however that the Special Tax will cease to be levied in an
earlier Fiscal Year if the CFD Administrator has determined(i)that all required interest and
principal payments on the CFD No. 2005-2 Bonds have been paid; and(ii) all Authorized
Facilities have been acquired and all reimbursements to the developer have been paid.
CFD No. 2005-2(Escena)of the City of Palm Springs
Page 15
EXHIBIT B
TYPES OF FACILITIES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(Escena)
The General Description of the Improvements is as follows:
1. Street facilities, including, but not limited to, major arterials, highways,
intersections, access ramps, roadways, sidewalk, curb, gutters, striping,
lighting, traffic signalization, signage, landscaping of public streets and
rights-of-way and appurtenant facilities;
2. Storm control facilities, including, but not limited to, storm drains,
channels, detention, headwalls, riprap pads, retention and/or catch basins
and appurtenant facilities;
3. Sewer improvements, sanitary sewers, including, but not limited to, lift
stations, force mains, pump stations, transmission and main lines, valves,
and appurtenant facilities (including, but not limited to, the West Spine
Sewer Improvements which have already been completed);
4. Domestic and reclaimed water facilities, including, but not limited to,
reservoirs, pump stations, transmission lines, distribution facilities, lift
stations, main lines, valves, fire hydrants and appurtenant facilities
(including, but not limited to, the West Spine Water Improvements which
have already been completed);
5. Park and recreational facilities and appurtenant facilities;
6. Impact and other fees, including but not limited to, TUMF, Quimby Act
fees, water fees, drainage fees, sewer treatment and connection fees,
water supply fees, water meter fees, water connection fees and frontage
fees, storm drain fees, and other city fees;
7. Mitigation costs and incidental expenses.
EXHIBIT B
(CONTINUED)
TYPES OF FACILITIES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(Escena)
The District may also finance any of the following:
1. Bond related expenses, including underwriters' discount, reserve fund,
capitalized interest, financial advisor fees and expenses, bond and
disclosure counsel, special tax consultant fees and expenses,
dissemination agent fees and all other incidental expenses.
2. Administrative fees of the City and the Bond trustee or fiscal agent related
to the District and the Bonds.
3. Reimbursement of costs related to the formation of the District advanced
by the City or any related entity, or any landowner or developer within the
District, as well as reimbursement of any costs advanced by the City or
any related entity, or any landowner or developer within the District, for
facilities, fees or other purposes or costs of the District.
4. Payment and retirement of all outstanding unpaid assessments in
Assessment District No. 155 of the City.
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 the
Report.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF
PALM SPRINGS, CALLING A SPECIAL ELECTION
TO SUBMIT TO THE QUALIFIED ELECTORS
WITHIN SAID DISTRICT THE QUESTION OF
LEVYING OF A SPECIAL TAX AND ISSUANCE OF
BONDED INDEBTEDNESS WITHIN THE DISTRICT
WHEREAS, the City Council (the "Council') of the City of Palm Springs,
California (the "City'), acting in its capacity as the legislative body (the
"Legislative Body") of Community Facilities District No. 2005-2 (Escena) of the
City of Palm Springs (the "District"), on July 20, 2005, has heretofore adopted its
Resolution No. 21381 (the "Resolution of Intention") stating its intention to form
the District as described therein pursuant to 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 specifically Article 3.5
thereof, and calling a public hearing on the question of the formation of the
proposed District, including the levying of a special tax on the District and all
other matters as set forth in the Resolution of Intention; and
WHEREAS, a copy of the Resolution of Intention, incorporating a description and
map of the proposed boundaries of the District, stating the purpose of the
formation of the District to finance (1) the purchase, construction, modification,
expansion, improvement or rehabilitation of public facilities, including all
furnishings, equipment and supplies related thereto, and the payment of
development, impact and other fees required therefor identified in Exhibit "A"
hereto and incorporated herein by this reference, (collectively, the "Facilities"); (2)
the incidental expenses to be incurred in financing the Facilities and forming and
administering the District (the 'Incidental Expenses") and (3) payment and
retirement of assessments in Assessment District No. 155 of the City of Palm
Springs (the "AD 155 Payment'), and (4) funding of a Reserve Account and
specifying the special taxes to be levied within the District; and
WHEREAS, on July 20, 2005, the Council of the City has heretofore adopted its
resolution of intention to incur bonded indebtedness (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; and
WHEREAS, a copy of the Resolution of Intention to Incur Bonded Indebtedness
is on file with the City Clerk; and
WHEREAS, notice of the public hearing was duly given as required by the Act;
and
Resolution No.
Page 2
WHEREAS, the Resolution of Intention and Resolution to Incur Bonded
Indebtedness set September 7, 2005 as the date of the public hearing to
consider the question of the levying of a special tax on the property and all other
matters set forth in the Resolution of Intention, and the proposed bonded
indebtedness pursuant to the Resolution of Intention and the Resolution of
Intention to Incur Bonded Indebtedness, and this Council held said public hearing
as required by law; and
WHEREAS, said hearing was opened and continued to October 5, 2005, at the
request of the owners of the property in the District; and
WHEREAS, at said hearing all persons within the District and not exempt from
the special tax desiring to be heard on all matters pertaining to the formation of
the District, the levy of the special tax, and the issue of bonded indebtedness and
all other matters as set forth in the Resolution of Intention and Resolution to Incur
Bonded Indebtedness were heard and a full and fair hearing was held; and
WHEREAS, at the public hearing evidence was presented to the Legislative
Body on the matters before it, and the Legislative Body at the conclusion of the
hearing is fully advised as to all matters relating to formation of the District,
including the levy of the special tax on the property; and
WHEREAS, it has now been determined that written protests have not been
received from registered voters and/or property owners representing more than
one-half(1/2) of the area of land within the District; and
WHEREAS, there are less than twelve (12) registered voters residing within the
District, and have been for at least the preceding ninety (90) days; and
WHEREAS, on the basis of the foregoing, the Legislative Body has determined
at this time to proceed with the formation of the District, and to call an election
therein to authorize the levy of the special tax therein (as such tax is more
particularly described in the Resolution of Intention), to incur bonded
indebtedness within the District and to establish an appropriations limit for the
District;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. That the above recitals are all true and correct.
Section 2. Written protests against the furnishing of specified facilities or the
levying of a specified special tax within the District, have not been filed by fifty
percent (50%) or more of the registered voters or six (6) registered voters,
whichever is greater, residing within the boundaries of the District. All protests
and objections, if any, are hereby overruled.
Resolution No.
Page 3
Section 3. The boundaries of the property upon which the special taxes will be
levied in order to pay the bonded indebtedness are generally described as all
that territory within the District as said property is shown on a map as previously
approved by the Legislative Body, said map designated "Map of Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs," a copy of
which is on file in the office of the City Clerk and shall remain open for public
inspection. The map of the proposed boundaries of the District has been
recorded in the Office of the County Recorder of Riverside County, California in
Book 63, page 60 of the Book of Maps of Assessments and Community Facilities
Districts (Document Number 2005-0605183).
Section 4. The City Council hereby declares and deems that public
convenience and necessity require that it is necessary to incur bonded
indebtedness in a maximum aggregate principal amount not to exceed
$21,000,000 within the District for the purposes set forth in Section 5 below. The
entire District shall pay for the bonded indebtedness as authorized by the District
in Resolution No. 21382 adopted on July 20, 2005.
Section 5. The purpose of the proposed bonded indebtedness is generally
described as follows: to finance (1) the Facilities, which Facilities have a useful
life of five years or longer and the payment of development fees and other fees of
public agencies; (2) the Incidental Expenses; (3) the AD 155 Payment; and (4)
the funding of a Reserve Account.
Section 6. Except for property within the District that is exempt, wholly or
partially, from the levy of the special tax specified in the Rate and Method of
Apportionment of Special Tax attached to the Resolution of Formation, the whole
of the property within the District shall pay for the applicable bonded
indebtedness pursuant to the levy of the special tax authorized by the Resolution
of Intention.
Section 7. The maximum term of the bonds or any series thereof to be issued
shall in no event exceed forty (40) years.
Section 8. The bonds or any series thereof shall bear interest at a rate not to
exceed the greater of twelve percent (12%) per annum or the maximum interest
rate permitted by law, payable semiannually, with the actual rates and times of
payment to be determined at the time of sale thereof.
Section 9. Except where funds are otherwise available, a special tax is hereby
authorized, subject to the approval of the landowners as the eligible electors of
the District, to levy annually in accordance with procedures contained in the Act,
a special tax within the District, secured by recordation of a continuing lien
against all nonexempt real property in the District, sufficient to pay for bonded
indebtedness relating to the Facilities, the AD 155 Payment, the funding a
Reserve Account and the Incidental Expenses. The rate and method of
apportionment and manner of collection of the special tax within the District is
described in detail in Exhibit "B" attached hereto and incorporated herein by this
Resolution No.
Page 4
reference. Exhibit "B" allows each landowner within the District to estimate the
maximum amount that may be levied against each parcel.
Section 10. Pursuant to and in compliance with the provisions of Article 1.5
(commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of Title 5 of
the Government Code, the Council hereby establishes the following
accountability measures pertaining to any bonded indebtedness incurred by or
on behalf of the District:
A. Such bonded indebtedness shall be incurred for the specific
purposes set forth in Section 5 above.
B. The proceeds of any such bonded indebtedness shall be applied
only to the specific purposes identified in Section 5 above.
C. The document or documents establishing the terms and conditions
for the issuance of any such bonded indebtedness shall provide for the
creation of an account or accounts into which the proceeds of such
bonded indebtedness shall be deposited.
D. The City Manager or the Director of Finance & Treasurer, or his or
her designee, acting for and on behalf of the City, shall annually file a
report with the City Council as required by Government Code Section
53411.
Section 11. Pursuant to Government Code Section 53353.5, the Council hereby
submits to the qualified electors of the District a combined proposition
("Proposition A") to: (1) levy special taxes on property within the District in
accordance with the rate and method of apportionment with respect to the District
specified in the Resolution of Intention of the Council; (2) incur bonded
indebtedness in the maximum principal aggregate amount of $21,000,000 within
the District; and (3) establish an appropriations limit as defined by subdivision (h)
of Section 8 of Article XIIIB of the California Constitution, for the District. Said
appropriations limit shall equal the amount of all proceeds of the special tax for
the area within the District collected annually and as defined by said Article XIIIB,
as adjusted for changes in the cost of living and changes in population.
Section 12. The time for notice having been waived by all of the qualified
electors, the date of the special election for the District on Proposition A shall be
on the 5th day of October, 2005. The voter ballot shall be returned to the City
Clerk at 3200 East Tahquitz Canyon Way, Palm Springs, CA 92262, no later than
11:00 o'clock a.m. on October 5, 2005.
Section 13. The Council finds and determines that there were no registered
voters residing within the territory of the proposed District at the time of the
protest hearing and ninety (90) days prior thereto. The requirements of Section
53326 of the Government Code having been waived by the landowner, the
Resolution No.
Page 5
ballots for the special election shall be mailed or personally delivered to each
landowner within the District.
Section 14. Notice of said election and written argument for or against the
measure have been waived by each landowner within the District.
Section 15. The District shall constitute a single election precinct for the
purpose of holding said election.
Section 16. The Council hereby directs that the election be conducted by the
City Clerk of the City of Palm Springs, as the elections official.
Section 17. If two-thirds (2/3) of the votes cast upon the question of levying
such special tax, incurring of bonded indebtedness and establishing such
appropriations limit are cast in favor of levying such special tax within the District
as determined by the Legislative Body after the canvass of the returns of such
election, the Legislative Body may levy such special tax within the District under
the Act in the amount and for the purposes as specified in this Resolution. Such
special tax may be levied only at the rate and may be apportioned only in the
manner specified in this Resolution, subject to the Act, except that the special tax
may be levied at a rate lower than that specified herein and the maximum annual
tax rate may be lowered.
Section 18. An appropriation limit for the District is hereby established as an
amount equal to all the proceeds of the special tax collected annually and as
defined by Article XIIIB of the California Constitution, as adjusted for changes in
the cost of living and changes in population.
Section 19. The City Clerk is directed to certify and attest to this Resolution,
and to take any and all necessary acts to call, hold, canvass and certify an
election or elections on the levy of the special tax, the incurring of bonded
indebtedness, and the establishment of the appropriation limit.
Section 20. This Resolution shall take effect immediately upon its adoption.
ADOPTED this 5th day of October, 2005.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on October 5,
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
EXHIBIT A
DESCRIPTION OF FACILITIES
The General Description of Facilities is as listed:
1. Street facilities, including, but not limited to, major arterials, highways,
intersection, access ramps, roadways, sidewalk, curb, gutters, striping,
lighting, traffic signalization, signage, landscaping of public streets and
rights-of-way and appurtenant facilities;
2. Storm control facilities, including, but not limited to, storm drains,
channels, detention, headwalls, riprap pads, retention and/or catch basins
and appurtenant facilities;
3. Sewer improvements, sanitary sewers, including, but not limited, lift
stations, force mains, pump stations, transmission and main lines, valves,
and appurtenant facilities (including but not limited to, the West Spine
Sewer Improvements which have already been completed);
4. Domestic and reclaimed water facilities, including, but not limited to,
reservoirs, pump stations, transmission lines, distribution facilities, lift
stations, main lines, valves, fire hydrants and appurtenant facilities
(including, but not limited to, the West Spine Water Improvements which
have already been completed);
5. Park and recreational facilities and appurtenant facilities;
6. Impact and other fees, including but not limited to, TUMF, Quimby Act
fees, water fees, drainage fees, sewer treatment and connection fees,
water supply fees, water meter fees, water connection fees and frontage
fees, storm drain fees, and other city fees;
7. Mitigation costs and incidental expenses.
1
EXHIBIT "A"
(CONTINUED)
OTHER ITEMS TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
The District may also finance any of the following:
1 . Bond related expenses, including underwriters' discount, reserve fund,
capitalized interest, financial advisor fees and expenses, bond and
disclosure counsel, special tax consultant fees and expenses,
dissemination agent fees and all other incidental expenses.
2. Administrative fees of the City and the Bond trustee or fiscal agent related
to the District and the Bonds.
3. Reimbursement of costs related to the formation of the District advanced
by the City or any related entity, or any landowner or developer within the
District, as well as reimbursement of any costs advanced by the City or
any related entity, or any landowner or developer within the District, for
facilities, fees or other purposes or costs of the District.
4. Payment and retirement of all outstanding unpaid assessments in
Assessment District No. 155 of the City of Palm Springs.
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 substitutions 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 the
Report.
2
EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA)
OF THE CITY OF PALM SPRINGS
RATE AND METHOD OF APPORTIONMENT
[See Attached]
1
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA)
OF THECITY OF PALM SPRINGS
A Special Tax shall be levied on all Assessor's Parcels in Community Facilities District No.2005-2
(Escena) of the City of Palm Springs ("CFD No. 2005-2") and collected each Fiscal Year
commencing in Fiscal Year 2005-2006,in an amount determined through the application of the Rate
and Method of Apporliomnent as described below. All of the real property in CFD No. 2005-2,
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. The square footage of an Assessor's Parcel is equal to the Acreage of such
parcel multiplied by 43,560.
"Act"means the Mello-Roos Community Facilities Act of 1982,being Chapter 2.5,Part 1,
Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2005-2: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. 2005-2 or any designee thereof of complying with arbitrage
rebate requirements; the costs to the City, CFD No. 2005-2 or any designee thereof of
complying with City, CFD No. 2005-2 or obligated persons disclosure requirements of
applicable federal and state securities laws and 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.2005-2 or any designee thereof related to an appeal of
the Special Tax;the costs associated with the release of finds from any escrow account;and
the City's annual administration fees and third panty expenses. Administrative Expenses
shall also include amounts estimated or advanced by the City or CFD No. 2005-2 for any
other administrative purposes of CFD No.2005-2,including attorney's fees and other costs
related to commencing and pursuing to completion any foreclosure as a result 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.
CFD No.2005-2(Escena)of the City of Pahn Springs
Page I
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel member.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property, as determined in accordance with Section C.L(b) below.
"Authorized Facilities" means those authorized improvements eligible under the Act and
provided by CFD No. 2005-2 under the authorized bonding program for CFD No. 2005-2.
"Backup Special Tax " means the Special Tax applicable to each Assessor's Parcel of
Developed Property in each Zone,as determined in accordance with Section C.L(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 CFD No. 2005-2 under the Act.
"Certificate of Occupancy"means a certificate issued by the City that authorizes the actual
occupancy of a dwelling unit for habitation by one or more residents.
"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.2005-2"means Community Facilities District No.2005-2(Escena)of the City of
Palm Springs.
"City" means the City of Palm Springs, California.
"Council" means the City Council of the City, acting as the legislative body of CFD No.
2005-2.
"County" means the County of Riverside, California.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, for which the
Final Subdivision was recorded on or before January 1 of the prior Fiscal Year and a
building permit for new constriction was issued after January 1,2005 and on or before May
1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied.
"Final Mapped Property"means,for each Fiscal Year,all Taxable Property,exclusive of
Developed Property, Taxable Property Owner Association Property or Taxable Public
Property, which as of January 1 of the previous Fiscal Year was located within a Final
Subdivision.
"Final Subdivision"means a subdivision of property by recordation of final map,parcel
map, or lot line adjustment,pursuant to the Subdivision Map Act(California Govemmient
Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California
Civil Code Section 1352 that creates individual lots for which building permits may be
issued without further subdivision.
CFD No.2005-2(Eseena)of the City of Palm Springs
Page 2
"Fiscal Year" means the period starting Judy 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.
"Initial Maximum Special Tax" means the initial maximum Special Tax, determined in
accordance with Section C.2.(a) below, that can be levied in any Fiscal Year on ally
Assessor's Parcel of Final Mapped Property and Undeveloped Property.
"Land Use Class" means any of the classes listed in Table 1 below.
"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 permitting the constriction of one or more non-residential units or
facilities has been issued by the City.
"Outstanding Bonds" mean all Bonds which are deemed to be outstanding under the
Indenture.
"Property Owner Association Property"means,for each Fiscal Year,any property within
the boundaries of CFD No. 2005-2 that was owned by a property owner association,
including any master or sub-association, as of January 1 of the prior Fiscal Year.
"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 Final Mapped Property,"Proportionately"means that the ratio of the actual Special Tax
levy per Acre to the Initial Maximum Special Tax per Acre is equal for all Assessor's
Parcels of Final Mapped Property. For Undeveloped Property,"Proportionately"means that
the ratio of the actual Special Tax levy per Acre to the Initial Maximum Special Tax per
Acre is equal for all Assessor's Parcels of Undeveloped Property. The term
"Proportionately"may similarly be applied to other categories of Taxable Property as listed
in Section D below.
"Public Property" means, for each Fiscal Year, (i) any property within the boundaries of
CFD No.2005-2 owned by,irrevocably offered or dedicated to,or over,or through or under
which an easement for purposes of public right-of-way has been granted, to the federal
govermnent,the State,the County,the City, or any local govermnent or other public agency
as of January 1 of the previous Fiscal Year,provided 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 according to its use; or(ii) any property within the boundaries of CFD
No. 2005-2 that was encumbered, as of January 1 of the previous Fiscal Year, by an
umnarmed utility easement making impractical its utilization for other than the purpose set
forth in the easement.
CFD No.2005-2(Escena)of the City of Pahn Springs
Page 3
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential stricture,not including any carport, walkway, garage, overhang,
patio, enclosed patio, or similar area. The determination of Residential Floor Area for an
Assessor's Parcel shall be made by reference to the building pernit(s) issued for such
Assessor's Parcel.
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit permitting the constriction thereon of one or more residential dwelling units
has been issued by the City.
"Single Family Attached Property" means all Assessor's Parcels of Residential Property
for which building perm is have been issued for attached residential miits.
"Single Family Detached Property"means all Assessor's Parcels of Residential Property
for which building permits have been issued for detached residential units.
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Taxable Property within CFD No. 2005-2 to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2005-2 to: (i) pay debt service on all Outstanding Bonds due in the calendar year
commencing in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not
limited to, credit enhancement and rebate payments on the Bonds clue in the calendar year
conunencing in such Fiscal Year; (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 Authorized Facilities to the extent that the
inclusion of such amount does not increase the Special Tax levy on Undeveloped Property;
(vi)pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate
for the Special Tax levy in the previous Fiscal Year; less(vii)a credit for fiords 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.
2005-2 that are not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means, for each Fiscal Year, all
Assessor's Parcels of Property Owner Association Property that are not exempt from the
Special Tax pursuant to Section E below.
"Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public
Property that are not exempt from the Special Tax pursuant to Section E below.
"Trustee" means the trustee or fiscal agent under the Indenture.
CFD No.2005-2(Eseena)of the City of Pali Springs
Page 4
"Undeveloped Property" means,for each Fiscal Year, all Taxable Property not classified
as Developed Property, Final Mapped Property, Taxable Properly Owner Association
Property or Taxable Public Property.
"Zone" means Zone 1 or Zone 2, as applicable.
"Zone 1"means all property currently within CFD No.2005-2 which is not located in Zone
2.
"Zone 2"means the land area geographically identified as Lots 44 through 50 in Tract Map
No. 32233-1 recorded with the County on May 23, 2005 as Document No. 2005-0409493.
Zone 2 may be subject to amendment from time-to-time or modification pursuant to a final
map or precise site plan for such property at the sole discretion of the CFD Administrator
provided that such amendment or modification will not reduce the amount of Maximum
Special Tax below the amount required to equal at least 1.1 tunes the maximum annual debt
service on all Outstanding Bonds, plus the Administrative Expenses.
B. ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, all Taxable Property within CFD No. 2005-2 shall be assigned to a Zone
and farther classified as Developed Property,Final Mapped Property,Undeveloped Property,
Taxable Property Owner Association Properly, or Taxable Public Property, and shall be
subject to Special Taxes in accordance with this Rate and Method of Apportionment
determined pursuant to Sections C and D below.
C. MAXIMUM SPECIAL TAX RATE
Residential Property shall be assigned to Land Use Classes 1 through 9 as listed in Table 1
below based on the type of use and the Residential Floor Area for each unit. Non-
Residential Property shall be assigned to Land Use Class 10. With respect to Residential
Property, the Residential Floor Area shall be detenined from the most recent building
permit issued prior to the issuance of a Certificate of Occupancy for such Assessor's Parcel.
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 2005-2006 Assigned Special Tax for each Land Use Class is
shown below in Table 1.
CFD No.2005-2(Escena)of the City gfPattiz Springs
Page 5
TABLE f
Fiscal Year 2005-2006
Assigned Special Taxes for Developed Property
Land Use Description Residential Assigned
Class Floor Area Special Tax
1 Single Family Detached Property More than 3,200 sq. ft. $2,450 per unit
2 Single Family Detached Property 2,801—3,200 sq. ft. $2,150 per unit
3 Single Family Detached Property 2,501 —2,800 sq. ft. $1,950 per unit
4 Single Family Detached Property 2,201 —2,500 sq. ft. $1,800 per unit
5 Single Family Detached Property Less than 2,201 sq. ft. $1,650 per unit
6 Single Family Attached Property More than 1,600 sq. ft. $1,450 per unit
7 Single Family Attached Property 1,401 — 1,600 sq. ft. $1,050 per unit
8 Single Family Attached Properly 1,201 —1,400 sq. ft. $850 per unit
9 Single Family Attached Property Less than 1,201 sq. ft. $5 5 0 per unit
10 Non-Residential Property NA $11,662 per Acre
(c) Backup Special Tax
The Fiscal Year 2005-2006 Backup Special Tax attributable to a Final
Subdivision in Zone 1 or Zone 2 will equal the applicable Backup Special
Tax for such Zone,identified in Table 2 below,multiplied by the Acreage of
all Taxable Property, exclusive of any Taxable Property Owner Association
Property and Taxable Public Property,therein. The Backup Special Tax for
each Assessor's Parcel of Residential Property shall be computed by dividing
the Backup Special Tax attributable to the applicable Final Subdivision by
the munber of Assessor's Parcels for which building permits for residential
construction have or may be issued(i.e.,the number of residential lots). The
Backup Special Tax for each Assessor's Parcel of Non-Residential Property
in Zone 1 or Zone 2 shall equal the applicable Backup Special Tax for such
Zone, identified in Table 2 below, multiplied by the Acreage of such
Assessor's Parcel.
TABLE 2
Fiscal Year 2005-2006
Backup Special Tax for Developed Property
Special Tax Classification Backup Special Tax
Zone 1 $12,277 per Acre
Zone 2 $16,907 per Acre
CFD No.2005-2(Escena)of the City of Palnt Springs
Page 6
If a Final Subdivision includes Assessor's Parcels of Taxable Property for
which building permits for both residential and non-residential construction
may be issued, exclusive of Taxable Property Owner Association Property
and Taxable Public Property, then the Backup Special Tax for each
Assessor's Parcel of Residential Property shall be computed exclusive of the
Acreage and Assessor's Parcels of property for which building permits for
non-residential constriction may be issued.
Notwithstanding the foregoing, if all or any portion of the Final
Subdivisions) described in the preceding paragraphs is subsequently
changed or modified by recordation of a lot line adjustment or similar
instrument, and only if the CFD Administrator determines that such change
or modification results in a decrease in the number of Assessor's Parcels of
Taxable Property for which building permits for residential construction have
or may be issued within such Final Subdivision,then the Backup Special Tax
for each Assessor's Parcel of Developed Property that is part of the lot line
adjustment or similar instrument for such Final Subdivision shall be a rate
per Acre as calculated below. The Backup Special Tax previously
determined for an Assessor's Parcel of Developed Property that is not part of
the lot line adjustment or similar instrument for such Final Subdivision shall
not be recalculated.
1. Determine the total Backup Special Tax anticipated to apply to
the changed or modified portion of the Final Subdivision area
prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the Acreage
of Taxable Property which is ultimately expected to exist in such
changed or modified portion of the Final Subdivision area, as
reasonably determined by the CFD Administrator.
3. The result of paragraph 2 above shall be the Backup Special Tax
per Acre which shall be applicable to Assessor's Parcels of
Developed Property in such changed or modified portion of the
Final Subdivision area for all remaining Fiscal Years in which the
Special Tax may be levied.
CFD No.2005-2(Esema)of the City of Palls Springs
Page 7
Furthermore,all Assessors' Parcels within CFD No.2005-2 will be relieved
simultaneously and permanently from the obligation to pay and disclose the
Backup Special Tax if the CFD Administrator determines that(i)the annual
debt service required for the Outstanding Bonds, when compared to the
Assigned Special Taxes that may be levied against all Assessors' Parcels of
Developed Property in CFD No.2005-2 result in 110%debt service coverage
(i.e., the Assigned Special Taxes that may be levied against all Developed
Property in CFD No. 2005-2 in each remaining Fiscal Year based on then
existing development in CFD No. 2005-2 is at least equal to the sum of(a)
the Administrative Expenses and (b) 1.10 times maximum annual debt
service in each remaining Fiscal Year on the Outstanding Bonds),and(ii)all
authorized Bonds have already been issued or the Council has covenanted
that it will not issue any additional Bonds (except refunding bonds) to be
supported by the Special Tax in CFD No. 2005-2.
(d) Increase in the Assigned Special Tax and Backup Special Tax
The Fiscal Year 2005-2006 Assigned Special Tax, identified in Table 1
above, and Backup Special Tax, identified in Table 2 above, shall not be
subject to change and shall therefore remain the same in every Fiscal Year.
(e) Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may contain
more than one Land Use Class. The Maximum Special Tax levied on an
Assessor's Parcel shall be the sum of the Maximum Special Tax for all Land
Use Classes located on that Assessor's Parcel. The CFD Administrator's
allocation to each type of property shall be final.
2. Final Mapped Property, Undeveloped Property, Taxable Property Owner
Association Property, and Taxable Public Property
(a) Initial Maximum Special Tax
The Fiscal Year 2005-2006 Initial Maximmn Special Tax for Final Mapped
Property and Undeveloped Property in Zone 1 or Zone 2 shall be$11,662 per
Acre, and shall not be subject to change and shall therefore remain the same
in every Fiscal Year.
(b) Maximum Special Tax
The Fiscal Year 2005-2006 Maximum Special Tax for Final Mapped
Property, Undeveloped Property, Taxable Property Owner Association
Property,and Taxable Public Property in Zone 1 or Zone 2 shall be$16,907
per Acre, and shall not be subject to change and shall therefore remain the
same in every Fiscal Year.
CFD No. 2005-2(Eseena) of the City of Pahn Springs
Page 8
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Coimnencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the Council
shall deternmine the Special Tax Requirement and shall levy the Special Tax until the total
Special Tax levy equals the Special Tax Requirement subject to the Maximum Special Tax.
The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in
Zone 1 and Zone 2 in an amount equal 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 Final Mapped Property in Zone 1 at up to 100%of the Initial Maximum
Special Tax for Final Mapped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the
second step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property in Zone 1 at up to 100%of the Initial Maximum
Special Tax for Undeveloped Property;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
third step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Final Mapped Property in Zone 2 at up to 100%of the Initial Maximum
Special Tax for Final Mapped Property;
Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the fourth
step has been completed,the Special Tax shall be levied Proportionately on each Assessor's
Parcel of Undeveloped Property in Zone 2 at up to 100% of the Initial Maximum Special
Tax for Undeveloped Property;
Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the fifth
step has been completed,then the levy of the Special Tax on each Assessor's Parcel of Final
Mapped Property and Undeveloped Property in Zone 1 and Zone 2 shall be increased in
equal percentages from the Initial Maximum Special Tax up to 100% of the Maximum
Special Tax for Final Mapped Property and Undeveloped Property;
Seventh: If additional monies are needed to satisfy the Special Tax Requirement after the
sixth step has been completed,then the levy of the Special Tax on each Assessor's Parcel of
Developed Property in Zone 1 and Zone 2 whose Maximum Special Tax is determined
through the application of the Backup Special Tax shall be increased in equal percentages
from the Assigned Special Tax up to the Maxiinum Special Tax for each such Assessor's
Parcel;
Eighth: If additional monies are needed to satisfy the Special Tax Requirement after the
seventh step has been completed, then the Special Tax shall be levied Proportionately on
each Assessor's Parcel of Taxable Public Property and Taxable Property Owner Association
Property at up to the 100% of Maximmn Special Tax for Taxable Public Property and
Taxable Property Owner Association Property.
CFD No.2005-2(Escena)of the City ofPaInt Springs
Page 9
Notwithstanding the above the Council may, in any Fiscal year, levy Proportionately less
than 100% of the Assigned Special Tax in step one (above), when (i) the Council is no
longer required to levy the Special Tax pursuant to steps two through eight above in order to
meet the Special Tax Requirement,ii) all authorized Bonds have already been issued or the
Council has covenanted that it will not issue any additional Bonds(except refunding bonds)
to be supported by the Special Tax, and(iii)all Authorized Facilities have been constructed
and/or acquired.
Further notwithstanding the above, tinder no circumstances will the Special Tax levied
against any Assessor's Parcel of Residential Property for which a Certificate of Occupancy
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 CFD No. 2005-2.
E. EXEMPTIONS
No Special Tax shall be levied on up to 59.9 Acres of Public Property and Property Owner
Association Property in Zone 1 and up to 15.3 Acres of Public Property and Property Owner
Association Property in Zone 2. Tax-exempt status will be assigned by the CFD
Administrator in the chronological order in which property becomes Public Property and/or
Property Owner Association Property. However, should an Assessor's Parcel no longer be
classified as Public Property or Property Owner Association Property,its tax-exempt status
will be revoked.
Public Property or Property Owner Association Property that is not exeiupt from the Special
Tax under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the eighth step in Section D.
F. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is in error may submit a written appeal to CFD No. 2005-2. The CFD
Administrator shall review the appeal and if the CFD Administrator concurs,the amount of
the Special Tax levied shall be appropriately modified.
The Council may interpret this Rate and Method of Apportionment forpurposes of clarifying
any ambiguity and make determinations relative to the annual administration of the Special
Tax and any landowner or resident appeals. Any decision of the Council shall be final and
binding as to all persons.
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad
valoren2 property taxes; provided, however, that CFD No. 2005-2 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.
CFD No.2005-2(Escena)of the City of Palm Springs
Page 10
H. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section H:
"Buildout" means, for CFD No. 2005-2, that all expected building permits have been
issued.
"CFD Public Facilities"means either$14,887,048 in 2005 dollars,which shall increase by
the Construction Inflation Index on July 1,2006,and on each July 1 thereafter,or such lower
number as(i)determined by the CFD Administrator as sufficient to provide the Authorized
Facilities, or (ii) determined by the Council concurrently with a covenant that it will not
issue any more Bonds(except refunding bonds)to be supported by the Special Taxes levied
under this Rate and Method of Apportionment as described in Section D.
"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 minus (i) public facility costs
previously paid from the Improvement Fund, (ii) moneys currently on deposit in the
Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are
expected to be available to finance the cost of CFD Public Facilities.
"Improvement Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct CFD Public
Facilities eligible under the Act.
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding tinder the Indenture after the first interest and/or principal payment
date following the current Fiscal Year.
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 an Assessor's Parcel of Final
Mapped 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 for
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
CFD No.2005-2(Eseena)of the City of Palne Springs
Page 11
next occurring date that notice of redemption of Bonds from the proceeds of such
Prepayment may be given by the Trustee pursuant to the Indenture.
The Special Tax 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
phis Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment,the Special Tax Prepayment Amount shall be
calculated as follows:
Paragraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax
and Backup Special Tax. For Assessor's Parcels of Filial Mapped Property and
Undeveloped Properly for which a building permit has been issued, 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. 2005-2 based on the
Developed Property Special Taxes which could be levied in the current Fiscal Year
on all expected development through Buildout of CFD No. 2005-2, excluding any
Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the total
estimated Backup Special Taxes at Buildout for the entire CFD No. 2005-2,
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
Previously Issued Bonds to compute the amount of Previously Issued 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 (e.g., the redemption price-100%), if any, on the
Previously Issued Bonds to be redeemed(the "Redemption Premium").
6. Compute the current Future Facilities Costs.
CFD No.2005-2(Eseena)o/Yhe City of Palm Springs
Page 12
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 Previously Issued Bonds.
9. Determine the Special Tax levied on the Assessor's Parcel in the current Fiscal Year
which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to derive
from the reinvestment of the Special Tax Prepayment Amomrt less the Future
Facilities Amount and the Administrative Fees and Expenses(defined below) from
the date of prepayment until the redemption date for the Previously Issued 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. The administrative fees and expenses of CFD No. 2005-2 are as calculated by the
CFD Administrator and include 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. The reserve fund credit(the"Reserve Fund Credit") shall equal the lesser of. (a)the
expected reduction in the reserve requirement(as defined in the Indenture), if any,
associated with the redemption of Previously Issued Bonds as a result of the
prepayment, or(b) the amount derived by subtracting the new reserve requirement
(as defined in the Indenture) in effect after the redemption of Previously Issued
Bonds as a result of the prepayment from the balance in the reserve fund on the
prepayment date,but in no event shall such amount be less than zero. No Reserve
Fund Credit shall be granted if the amount then on deposit in the reserve fluid for the
Previously Issued Bonds is below 100%of the reserve requirement(as defined in the
Indenture).
14. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following 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 or account under the
Indenture after such first interest and/or principal payment(the"Capitalized Interest
Credit").
CED No.2005-2(Eseeia)of the City of Patin Springs
Page 13
15. The Special Tax prepayment is equal to the stun of the amounts computed pursuant
to paragraphs 4, 5,7, 11 and 12, less the amounts computed pursuant to paragraphs
13 and 14 (the "PrepaynaentAmount").
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 Bonds or make debt service payments. The amount computed pursuant to
paragraph 7 shall be deposited into the Improvement Fund. The amount computed pursuant
to paragraph 12 shall be retained by CFD No. 2005-2.
The Special Tax Prepayment Amount may be insufficient to redeem a frill$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 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 the Special Tax 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, at the
time of such proposed prepayment, the amount of Maximum Special Taxes that may be
levied on Taxable Properly within CFD No. 2005-2 (after excluding 59.9 Acres of Public
Property and Property Owner Association Property in Zone 1 and 15.3 Acres of Public
Property and Property Owner Association Property in Zone 2 as set forth in Section E)both
prior to and after the proposed prepayment is at least equal to the stun of (i) the
Administrative Expenses and (ii) 1.10 tunes maximum annual debt service, in each
remaining Fiscal Year on the Outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Property,or an Assessor's Parcel of
Final Mapped Property or Undeveloped Property for which a building permit has been
issued, may be partially prepaid. The amormt 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 = [(PE—A)x F] +A
These terns have the following meaning:
PP= the partial prepayment.
PE= the Special Tax Prepayment Amount calculated according to Section H.I.
F= the percentage,expressed as a decimal,by which the owner of the Assessor's Parcel
is partially prepaying the Special Tax.
CFD No.2005-2(Escena)of the City of Palnr Springs
Page 14
A= the Administrative Fees and Expenses calculated according to Section H.1.
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 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
Council shall(i)distribute the funds remitted to it according to Section H.1,and(ii)indicate
in the records of CFD No. 2005-2 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.
I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed forty-five years commencing with
Fiscal Year 2005-2006,provided however that the Special Tax will cease to be levied in an
earlier Fiscal Year if the CFD Administrator has determined(i)that all required interest and
principal payments on the CFD No. 2005-2 Bonds have been paid; and(ii) all Authorized
Facilities have been acquired and all reimbursements to the developer have been paid.
CFD No.2005-2(Eseena)of the City of Palm Springs
Page 15
EXHIBIT C
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
SPECIAL BOND, TAX AND APPROPRIATIONS LIMIT ELECTION
October 5, 2005
To vote, mark a cross (+) in the voting square after the word "YES" or after
the word "NO." All marks otherwise made are forbidden.
This ballot is provided to , as sole owner or authorized
representative of such sole owner of acres of land within Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs and represents
votes.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of
the City of Palm Springs at 3200 East Tahquitz Canyon Way, Palm Springs,
California 92262.
PROPOSITION A: Shall Community Facilities District No. 2005-2 (Escena) of
the City of Palm Springs incur an indebtedness and be authorized to issue bonds
in the maximum aggregate principal amount of $21,000,000 with interest at a rate
or rates established at such time as the bonds are sold in one or more series at
fixed or variable interest rates, however not to exceed any applicable statutory
rate for such bonds, the proceeds of which will be used to finance
(1) the purchase, construction, modification, expansion,
improvement or rehabilitation of certain real or other tangible YES ❑
property, including all furnishings, equipment and supplies related
thereto, and the payment of development, impact and other fees
of public agencies (collectively, the "Facilities"), which Facilities NO ❑
have a useful life of five years or longer; (2) the payment and
retirement of assessments in Assessment District No. 155 of the
City of Palm Springs; (3) the funding of.a Reserve Account; and
(4) the incidental expenses to 'be incurred in connection with financing the
Facilities and forming and administering the District (the "Incidental Expenses'),
as provided in Resolution of Intention No. 21381, adopted by the City Council of
the City of Palm Springs on July 20, 2005, declaring its intention to establish the
Community Facilities District No. 2005-2, (Escena) of the City of Palm Springs
(the "Resolution"); and shall a Special Tax be levied to pay the principal of and
interest on such indebtedness and bonds and to pay directly the cost of
acquisition and construction of Facilities and Incidental Expenses as authorized
in the Resolution; and shall an appropriations limit be established for Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs pursuant to
Article XIIIB of the California Constitution, said appropriations limit to be equal to
1
the amount of all proceeds of the special tax collected annually, as adjusted for
changes in the cost of living and changes in population?
Signed this 5th day of October, 2005
[property owner]
By
Name
Title
RETURN THIS BALLOT TO:
City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Your completed ballot may be mailed or personally delivered, but it must be
received prior to 11:00 a.m. on October 5, 2005. Incomplete, late or unsigned
ballots will not be considered in the tabulation.
[Signature Page to Ballot for Community Facilities District No. 2005-2
(Escena) of the City of Palm Springs]
2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF
PALM SPRINGS, DECLARING THE RESULTS OF A
SPECIAL ELECTION ORDERING THE LEVYING OF
A SPECIAL TAX WITHIN THE DISTRICT;
AUTHORIZING THE ISSUANCE OF BONDED
INDEBTEDNESS; AND DIRECTING THE
RECORDING OF A NOTICE OF SPECIAL TAX LIEN
The City Council (the "Council') of the City of Palm Springs, California (the
"City'), acting in its capacity as the legislative body (the "Legislative Body") of the
Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs
(the "District'), does hereby resolve as follows:
WHEREAS, the Legislative Body duly called and held an election in the District
pursuant to Resolution No. ('Resolution Calling Election") for the purpose
of presenting to the qualified electors within the District, a proposition for the levy
of a special tax and the establishment of an appropriations limit ('Proposition A")
and the issuance of bonded indebtedness in accordance with the method set
forth in Resolution No. 21381 (the "Resolution of Intention"); and
WHEREAS, the landowners of record within the Property as of the close of the
public hearing held on October 5, 2005 unanimously consented to a waiver of the
time limits for setting the election and a waiver of any written analysis, arguments
or rebuttals as set forth in California Government Code sections 53326 and
53327. Such waivers are set forth in written certificates executed by the
landowners which are on file with the City Clerk as election official (the "Election
Official') concurring therein; and
WHEREAS, pursuant to the terms of the Resolution Calling Election and the
provisions of the Mello-Roos Community Facilities Act of 1982 (the "Act'), the
special election was held on October 5, 2005; and
WHEREAS, there has been presented to this Legislative Body a Certificate of the
Election Official as to the Results of the Canvass of the Election Returns (the
"Certificate of the Election Official'), a copy of which is attached hereto as Exhibit
"A"
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. That the above recitals are all true and correct.
Section 2. The canvass of the votes cast at the special election held in the
District on October 5, 2005, as shown in the Certificate of the Election Official, is
hereby approved and confirmed.
Resolution No.
Page 2
Section 3. Proposition A presented to the qualified electors for receipt by the
Election Official on October 5, 2005, has received a unanimous vote of the
qualified electors voting at said election, and Proposition A has carried. The
Legislative Body is hereby authorized to take the necessary steps to levy the
special tax authorized by Proposition A and to issue from time to time as it
deems appropriate, bonds for the District secured by such special tax.
Section 4. The City Clerk is hereby directed to enter the title of this Resolution
on the minutes of the Legislative Body and to indicate the official declaration of
the result of such special election.
Section 5. The Legislative Body hereby authorizes the levy of a special tax at
the Rate and Method of Apportionment set forth in Exhibit C to the Resolution of
Intention.
Section 6. Pursuant to and in compliance with the provisions of Government
Code Section 50075.1 , the Legislative Body hereby establishes the following
accountability measures pertaining to the levy by the District of the Special Tax
described in Section 3 above:
A. Such Special Tax with respect to the District shall be levied for the
specific purposes set forth in Proposition A and Section 3 hereof.
B. The proceeds of the levy of such Special Tax shall be applied only
to the specific purposes set forth in Section 3 hereof and Proposition A
referred to therein.
C. The District shall establish an account or accounts into which the
proceeds of such Special Tax shall be deposited.
D. The City Manager or Director of Finance & Treasurer, or his
designee, acting for and on behalf of the District, shall annually file a
report with the City Council as required pursuant to Government Code
Section 50075.3.
Section 7. The City Clerk is hereby directed to execute and cause to be
recorded in the office of the County Recorder of the County of Riverside a notice
of special tax lien in the form required by the Act, said recording to occur no later
than fifteen days following adoption by the City Council of this Resolution.
Section 8. This Resolution shall take effect immediately upon its adoption.
Section 9. The City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original resolutions.
Resolution No.
Page 3
ADOPTED this 5th day of October, 2005.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on October 5,
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
EXHIBIT A
CITY OF PALM SPRINGS, CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA)
OF THE CITY OF PALM SPRINGS
CERTIFICATE OF THE ELECTION OFFICIAL
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk in my capacity as Elections Official in the City
of Palm Springs, California, whose City Council is the legislative body of
Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs,
DO HEREBY CERTIFY, that pursuant to the provisions of Section 53325.4 of the
Government Code and Division 15, commencing with Section 15000 of the
Elections Code of the State of California, I did canvass the return of the votes
cast at the Special Tax Election on October 5, 2005, held in
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
I FURTHER CERTIFY that the Statement of All Votes Cast, to which this
certificate is attached, shows the total number of ballots cast within the District,
and the totals of the respective columns and the totals as shown for the
Proposition are full, true and correct.
WITNESS my hand and Official Seal this 5`h day of October, 2005.
CITY OF PALM SPRINGS,
CALIFORNIA, whose City Council is the
LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2005-2
(ESCENA) OF THE CITY OF PALM
SPRINGS
James Thompson, City Clerk
COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA)
OF THE CITY OF PALM SPRINGS
STATEMENT OF ALL VOTES CAST
SPECIAL TAX ELECTION
OCTOBER 5, 2005
Qualified
Landowner Votes
Votes Cast YES NO
City of Palm Springs, Community
Facilities District No. 2005-2
(Escena) of the City of Palm
Springs, Special Election,
October 5, 2005
PROPOSITION A SUBMITTED TO VOTE OF VOTERS:
Shall the Community Facilities District No. 2005-2 (Escena) of the City of Palm
Springs (the "District') incur an indebtedness and be authorized to issue bonds in
the maximum aggregate principal amount of $21,000,000 with interest at a rate
or rates established at such time as the bonds are sold in one or more series at
fixed or variable interest rates, however not to exceed any applicable statutory
rate for such bonds, the proceeds of which will be used to finance or refinance
(1) the purchase, construction, modification, expansion, improvement or
rehabilitation of certain real or other tangible property, including all furnishings,
equipment and supplies related thereto and the payment of development, impact
and other fees of public agencies (collectively, the "Facilities"), which Facilities
have a useful life of five years or longer; and (2) the payment and retirement of
assessments in Assessment District No. 155 of the City of Palm Springs; and (3)
the funding of a Reserve Account; and (4) the incidental expenses to be incurred
in connection with financing the Facilities, and administering the District (the
"Incidental Expenses"), as provided in Resolution of Intention No. 21381,
adopted by the City Council of the City of Palm Springs on July 20, 2005,
declaring its intention to establish Community Facilities district No. 2005-2
(Escena) of the City of Palm Springs (the "Resolution"); and shall a Special Tax
be levied to pay the principal of and interest on such indebtedness and bonds
and to pay directly the cost of acquisition and construction of Facilities and
Incidental Expenses as authorized in the Resolution; and shall an appropriations
limit be established for the District pursuant to Article XIIIB of the California
Constitution, said appropriations limit to be equal to the amount of all proceeds of
the special tax collected annually, as adjusted for changes in the cost of living
and changes in population?
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS APPROVING AND
ORDERING THE EXECUTION OF THAT CERTAIN
ACQUISITION AND FUNDING AGREEMENT
RELATING TO COMMUNITY FACILITIES DISTRICT
NO. 2005-2 (ESCENA) OF THE CITY OF PALM
SPRINGS; AND MAKING CERTAIN FINDINGS AND
DETERMINATIONS IN CONNECTION THEREWITH
WHEREAS, there has been filed with the City Clerk that certain Acquisition and
Funding Agreement (the "Agreement"), by and among the City of Palm Springs
(the "City"), Community Facilities District No. 2005-2 (Escena) of the City of Palm
Springs (the "District"), and Palm Springs Classic, LLC, MW Housing Partners III,
L.P. and Standard Pacific Corp., developers and owners of the real property
described on Exhibit "A" hereto and by this reference incorporated herein; and
WHEREAS, the City Council finds that the approval and execution of the
Agreement is in the best interest of the City and provides the means by which the
City will acquire certain public facilities and disburse certain funds from bonds to
be issued by the District.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. That the recitals set forth hereinabove are true and correct in all
respects.
Section 2. That the Agreement in the form on file with the City Clerk is hereby
approved in substantially the form thereof with such changes as may be
approved by the City Manager or Director of Finance & Treasurer, said City
Manager's or Director of Finance & Treasurer's signature to be conclusive
evidence of approval of such changes.
Section 3. That the City Manager or Director of Finance & Treasurer of the
City is hereby authorized and directed to execute the Agreement for and on
behalf of the City and the District.
ADOPTED this 51h day of October 2005.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
1, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on October 5,
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
EXHIBIT A
PROPERTY DESCRIPTION
The land referred is situated in the State of California, County of Riverside and is
described as the Land included on the Boundary Map of Community Facilities
District No. 2005-2 (Escena) of the City of Palm Springs, recorded on July 28,
2005 in Book 63 at Page 60 of the Maps of Assessment and Community
Facilities Districts in the Office of the County Recorder of the County of
Riverside.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF
PALM SPRINGS AUTHORIZING THE LEVY OF
SPECIAL TAXES WITHIN SAID DISTRICT
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ACTING IN ITS
CAPACITY AS THE LEGISLATIVE BODY OF THE COMMUNITY FACILITIES
DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS DOES
ORDAIN AS FOLLOWS:
Section 1. By the passage of this ordinance, the City Council authorizes the
levy of a special tax at the rate and formula within Community Facilities District
No. 2005-2 (Escena) of the City of Palm Springs (the "District') set forth in Exhibit
1", attached hereto and incorporated herein by this reference (the "Rate and
Method of Apportionment'). The Rate and Method of Apportionment was
approved by the City Council of the City as Exhibit "C" to Resolution No. 21381
(the 'Resolution"), and by the qualified electors within the District.
Section 2. The City Council or its designee is hereby further authorized to
determine, by ordinance, resolution, or by other action if permitted by then
applicable law, on or before August 1 of each year, the specific special tax to be
levied on each parcel of land in the District. The special tax to be levied shall not
exceed the maximum rates set forth in the Rate and Method of Apportionment,
but the special tax may be levied at a lower rate. The City Clerk is authorized
and directed to file with the County Auditor on or before the 10th day of August of
each tax year a certified copy of such ordinance or resolution accompanied by a
list of all parcels subject to the special tax levy with the tax to be levied on each
parcel.
Section 3. Properties or entities of the state, federal or other local
governments shall be exempt from the above-referenced and approved special
taxes only to the extent set forth in the Rate and Method of Apportionment and
otherwise shall be subject to the tax consistent with the provisions of Section
53317.3 of the Act in effect as of the date of adoption of this Ordinance.
Section 4. All of the collections of the special taxes shall be used only as
provided for in the Act and the Resolution. The special taxes shall be levied only
so long as needed to accomplish the purposes described in the Resolution.
Section 5. The special taxes shall be collected from time to time as necessary
to meet the financial obligations of the District on the secured real property tax
roll in the same manner as ordinary ad valorem taxes are collected, or other
procedures as may be adopted by the City Council. The City Manager and
Director of Finance & Treasurer are each hereby authorized and directed to
provide or to cause to be provided all necessary information to the Auditor/Tax
Ordinance No.
Page 2
Collector of the County of Riverside and to otherwise take all actions necessary
in order to effect proper billing and collection of the special taxes, so that the
special taxes shall be levied and collected in sufficient amounts and at times
necessary to satisfy the financial obligations of the District in each fiscal year until
the Bonds are paid in full, the Facilities have been paid for, and provision has
been made for payment of all of the administrative costs of the District. The
special taxes may be subject to the same penalties and the same procedure,
sale and lien priority in cases of delinquency as provided for ad valorem taxes as
such procedure may be modified by law or this City Council from time to time.
Notwithstanding the foregoing, the City Manager may collect, or cause to be
collected, one or more installments of the special taxes by means of direct billing
by the District of the property owners within the District, if, in the judgment of the
City Manager, or Director of Finance & Treasurer, such means of collection will
reduce the administrative burden of the District in administering the District or
where it is otherwise appropriate in the circumstances. In such event, the special
taxes shall become delinquent if not paid when due as set forth in any such
respective billing to the property owners.
Whether the special taxes are levied in the manner provided in the first or the
second preceding paragraph, the special taxes shall have the same lien priority,
and be subject to the same penalties and the same procedure and sale in cases
of delinquency as provided for ad valorem taxes. In addition, the provisions of
Section 53356.1 of the Act shall apply to delinquent special tax payments.
Section 6. As a cumulative remedy, if any amount levied as a special tax for
payment of bond interest or principal, together with any penalties and other
charges accruing under this ordinance, are not paid when due, the City Council
may, institute foreclosure proceedings by an action brought in the superior court
against the delinquent parcel, in the manner and at the time described in the
Fiscal Agent Agreement, by and between the District and The Bank of New York
Trust Company, N.A., as fiscal agent.
Section 7. This Ordinance relating to the levy of the special taxes shall take
effect immediately upon its final passage in accordance with the provisions of
Section 36937(a) of the Government Code, and the specific authorization for
adoption is pursuant to the provisions of Section 53340 of the Government Code.
Section 8. The City Clerk is hereby directed to execute and cause to be
recorded in the office of the County Recorder of the County of Riverside a notice
of special tax lien in the form required by the Act and Division 4.5 of the
California Streets and Highways Code, said recording to occur no later than
fifteen days following final passage by the City Council of this Ordinance.
Section 9. The Mayor shall sign this Ordinance and the City Clerk shall attest
to the Mayor's signature and then cause the same to be published within fifteen
(15) days after its passage at least once in a newspaper of general circulation
published and circulated in the City.
Ordinance No.
Page 3
Section 10. The City Clerk shall certify to the passage of this Ordinance and
shall cause the same to be published as required by law.
ADOPTED this _ day of 2005.
Roo Oden, Mayor
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss..
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Ordinance No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
EXHIBIT "1"
[SEE ATTACHED]
EXHIBIT T' - I
Q?ALM s,
A. 01. City ®f Palmy Springs
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Office of the City Clerk
* �ro ^' * 3200 E.Tah uirz Canyon Wa Palm 8 rin s California 92262
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f q 4fFOR \ Tel: (760) 323-8204 • Fax: (760)322-8332 • Web: wwwca.palm-sprmgs.ca.us NP
NOTICE OF CONTINUANCE
NOTICE IS HEREBY GIVEN that the regular meeting of September 7, 2005, Public Hearing
Item No. 1.A
CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES
DISTRICT NO. 2005-2 (ESCENA) CITY OF PALM SPRINGS; AND TO
INCUR BONDED INDEBTEDNESS IN THE AMOUNT NOT TO EXCEED
$21,000,000; AND APPROVAL OF A JOINT COMMUNITY FACILITIES
AGREEMENT WITH DESERT WATER AGENCY:
On September 7, 2006, no persons came forth to provide public testimony; therefore, on motion
by Councilmember Foat, seconded by Mayor Pro Tern McCulloch, and unanimously carried,
the public hearing was continued to 6:00 p.m., October 5, 2005, Council Chamber, 3200
Tahquitz Canyon Way.
I, James Thompson, City Clerk of the City of Palm Springs, California, certify this Notice of
Continuance was posted at or before 5:00 p.m., September 8, 2005, as required by established
policies and procedures.
JAMES THOMPSON
City Clerk
H:\USERS\C-CLK\Agenda Preparation\10-05-05\NOTICE OF CONT--CFD 2005-02 Escena.doc
Post Office Box 2743 • Palm Springs, California 92263-2743
NOTICE OF PUBLIC HEARING
CITY OF PALM SPRINGS
TO INCUR BONDED INDEBTEDNESS IN THE AMOUNT
OF NOT TO EXCEED $21,000,000 WITHIN
PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA) OF THE CITY OF PALM SPRINGS
Notice is hereby given that on July 20, 2005, the City Council of the City of Palm
Springs, California (the "City Council") adopted a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA,
DECLARING ITS INTENTION TO INCUR BONDED
INDEBTEDNESS IN THE AMOUNT NOT TO
EXCEED $21,000,000 WITHIN COMMUNITY
FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF
THE CITY OF PALM SPRINGS
(the 'Resolution to Incur Bonded Indebtedness"). Pursuant to the Mello-Roos
Community Facilities Act of 1982 (the "Act"), the City Council hereby gives notice
as follows:
A. The text of the Resolution to Incur Bonded Indebtedness (excluding
Exhibit A which is on file with the City Clerk) is as follows:
"WHEREAS, the City Council upon receipt of a petition (including consent and
waiver) (the "Petition") as provided in Section 53318 of the Government Code of
the State of California instituted proceedings to form Community Facilities District
No. 2005-2 (Escena) of the City of Palm Springs (the "Community Facilities
District No. 2005-2" or the "District') pursuant to the Mello-Roos Community
Facilities Act of 1982, commencing with Section 53311 of the Government Code
of the State of California (the "Act'), as amended, pursuant to a resolution
adopted by the Council on the date hereof to finance (1) the purchase,
construction, modification, expansion, improvement or rehabilitation of public
facilities and the payment of development, impact and other fees required
therefor, identified in Exhibit "A"attached hereto and incorporated herein by this
reference, including all furnishings, equipment and supplies related thereto
(collectively, the "Facilities"); (2) the incidental expenses to be incurred in
financing the Facilities and forming and administering the District (the 'Incidental
Expenses"); and (3) payment and retirement of assessments in Assessment
District No. 155 of the City of Palm Springs, (the "AD 155 Payment'); and
WHEREAS, in order to finance the Facilities, Incidental Expenses and the AD
155 Payment, the Council intends to authorize the issuance of bonds for the
proposed District in the maximum aggregate amount of not to exceed
$21,000,000 within the District; and
WHEREAS, the repayment of the bonds of the District is to be secured by special
taxes levied in the proposed District in accordance with Section 53328 of the Act,
01003 0090.40936 vl
WHEREAS, the repayment of the bonds of the District is to be secured by special
taxes levied in the proposed District in accordance with Section 53328 of the Act,
other than those properties exempted from taxation in the rate and method of
apportionment for the proposed District set forth in Exhibit "C" adopted by the
City Council by previous Resolution.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. It is necessary to incur bonded indebtedness within the proposed
boundaries of the proposed District in an amount not to exceed $21,000,000, to
finance the costs of the Facilities, Incidental Expenses and the AD 155 Payment,
as permitted by the Act.
Section 3. The bonds for the proposed District will be issued for the purpose of
financing the costs of the Facilities and the Incidental Expenses, including, but
not limited to, the funding of reserve funds for the bonds, the financing of costs
associated with the issuance of the bonds and all other costs and expenses
necessary to finance the Facilities which are permitted to be financed pursuant to
the Act, and the payment of all outstanding and unpaid assessments in
Assessment District No. 155 of the City of Palm Springs.
Section 4. It is the intent of the Council to authorize the sale of bonds for the
proposed District in one or more series, in the maximum aggregate principal
amount of not to exceed $21,000,000 within the proposed District and at a
maximum interest rate not in excess of 12 percent per annum or such rate not in
excess of the maximum rate permitted by law at the time the bonds are issued.
The term of the bonds of each series shall be determined pursuant to a
resolution of the Council acting in its capacity as the legislative body of the
District authorizing the issuance of the bonds of such series, but such term shall
in no event exceed 40 years or such longer term as is then permitted by law.
Section 5. The City Council hereby declares its intention to conduct a Public
Hearing concerning the proposed debt issue in accordance with the Act. Any
interested persons, including all persons owning land or registered to vote within
the proposed District may appear and be heard at the Hearing.
Section 6. Notice is hereby given that a Public Hearing on these matters will
be heard by the City Council on Wednesday, September 7, 2005 at 6:00 p.m., or
as, soon thereafter as feasible in the City Council Chambers at City Hall, located
at 3200 East Tahquitz Way, Palm Springs, California 92262.
Section 7. The proposition to incur bonded indebtedness in the maximum
aggregate principal amount not to exceed $21,000,000 shall be submitted to the
qualified electors of the District. A special community facilities district election
shall be conducted on September 7, 2005, the special election shall be
conducted by hand delivered or mailed ballot election. The ballots shall be
01003 0090 40936 vl 2
returned to the office of the election officer no later than 11:00 a.m. on
September 7, 2005.
Section 8. The City Clerk shall cause notice to be given of the time and Place
of the Public Hearing by causing the publishing of this Resolution once in the
local paper not less than seven (7) days before the date of the hearing and by
posting a copy of this Resolution on the official bulletin board customarily used by
the City Council for the posting of such notices, pursuant to the Act."
B. The hearing referred to in the aforesaid Resolution of Intention to Incur
Bonded Indebtedness shall be on the 7th day of September, 2005 at the hour of
6:00 p.m., or as soon thereafter as practicable, at the chambers of the City
Council of the City of Palm Springs, 3200 E. Tahquitz Canyon Way, Palm
Springs, California 92262.
C. At that time and place the testimony of all interested persons, including all
persons owning property in the area, for or against the proposed debt issuance,
will be heard.
D. A copy of the boundary map relating to the District is on file in the Office of
the City Clerk.
Aity
mes Thompson, City Clerk
Of Palm Springs
01003,0090.40936 vt 3
NOTICE OF PUBLIC HEARING
CITY OF PALM SPRINGS
FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 2005-2
(ESCENA ) OF THE CITY OF PALM SPRINGS
AND THE LEVY OF A SPECIAL TAX WITHIN SAID DISTRICT
Notice is hereby given that on July 20, 2005, the City Council of the City of Palm
Springs, California (the "City Council") of the City of Palm Springs, California (the
"District'), adopted a Resolution entitled:
A RESOLUTION OF THE CITY OF PALM SPRINGS,
CALIFORNIA, DECLARING ITS INTENTION TO
ESTABLISH AND TO AUTHORIZE THE LEVY OF A
SPECIAL TAX WITHIN COMMUNITY FACILITIES
DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF
PALM SPRINGS
(the 'Resolution of Intention"). Pursuant to the Mello-Roos Community Facilities
Act of 1982 (the "Act'), the City Council hereby gives notice as follows:
A. The text of the Resolution of Intention (excluding Exhibits A, B and C
which are on file with the City Clerk) is as follows:
"WHEREAS, the City Council has received a petition (including consent and
waiver) (the "Petition") from Palm Springs Classic, LLC, by Lennar Homes of
California, Inc., its Manager, requesting the institution of proceedings for
formation of a Community Facilities District, pursuant to the Mello-Roos
Community Facilities Act of 1982, commencing with Section 53311 of the
Government Code of the State of California (the "Act'); and
WHEREAS, the Council has determined that the Petition complies with the
requirements of Government Code Section 53318 and now intends to form
Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs;
and
WHEREAS, the Council desires to adopt this Resolution of intention as provided
in Section 53321 of the Act to establish a Community Facilities District consisting
of the territory described in Exhibit "A" hereto and incorporated herein by this
reference, which the Council hereby determines shall be known as "Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs" (the
"Community Facilities District No. 2005-2" or the "District') pursuant to the Act to
finance (1) the purchase, construction, modification, expansion, improvement or
rehabilitation of certain real or other tangible property described in Exhibit "B"
attached hereto and incorporated herein by this reference, including all
furnishings, equipment and supplies related thereto; (2) the payment of
development and other fees (collectively, the "Facilities"), which Facilities have a
useful life of five years of longer; and (3) the incidental expenses to be incurred in
connection with financing the Facilities and forming and administering the district
01003 OO80.40935 v1
(the "Incidental Expenses"); and (4) payment and retirement of assessments in
Assessment District No, 155 of the City of Palm Springs, (the "AD 155
Payment"); and
WHEREAS, it is the intention of the City Council to consider financing the
Facilities, the Incidental Expenses, and the AD 155 Payment through the
formation of the proposed District and the sale of bonded indebtedness in an
amount not to exceed $21,000,000 within the District and the levy of a special tax
within the District to pay for the Facilities and the Incidental Expenses and to pay
debt service on the bonded indebtedness incurred by the District, provided that
the bond sales and special tax levies are approved at an election to be held
within the District;
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. The Council hereby determines to institute proceedings for the
formation of a Community Facilities District under the terms of the Act pursuant
to Section 53350 of the Act. The exterior boundaries of the District are hereby
specified and described to be as shown on that certain map, described in Exhibit
A, now on file in the office of the City Clerk entitled "Proposed Boundaries of
Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs,"
which map indicates by a boundary line the extent of the territory included in the
proposed District and shall govern for all details as to the extent of the District.
On the original and one copy of the map of such District on file in the Clerk's
office, the City Clerk shall endorse the certificate evidencing the date and
adoption of this Resolution of Intention. The City Clerk shall file the original of
such map in his office and, within fifteen (15) days after the adoption of this
Resolution of Intention, the City Clerk shall cause to have recorded with the
Riverside County Recorder a copy of the endorsed map.
Section 3. The name of the proposed District shall be designated as
"Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs."
Section 4. The Facilities to be financed by the proposed District and to be
financed in part by the proposed District are public infrastructure facilities and
other governmental facilities with an estimated useful life of five years or longer,
which the City of Palm Springs or Desert Water Agency ("DWA") is authorized by
law to construct, acquire, own, operate or contribute revenue to. The City
Council hereby finds and determines that the description of the Facilities herein is
sufficiently informative to allow taxpayers within the proposed District to
understand what the funds of the District may be used to finance. The Incidental
Expenses expected to be incurred include the cost of planning and designing the
Facilities, the costs of forming the District, issuing bonds and levying and
collecting a special tax within the District. The Council hereby finds that the
proposed Facilities are necessary to meet increased demands placed upon the
City and DWA as a result of development occurring within the proposed District.
Such Facilities need not be physically located within the District.
01003 0080.40935 v1 2
Section 5. Except where funds are otherwise available, it is the intention of the
Council to levy annually in accordance with procedures contained in the Act a
special tax within the proposed District (the "Special Tax") sufficient to pay for the
costs of financing the acquisition and/or construction of the Facilities, Incidental
Expenses and the AD 155 Payment, including the principal and interest and
other periodic costs on bonds or other indebtedness proposed to be issued to
finance the Facilities, Incidental Expenses and the AD 155 Payment, the
establishment and replenishment of reserve funds, the credit enhancement fees,
the costs of administering the levy and collection of the Special Tax and all other
costs of the levy of the Special Tax and issuance of the bonds, including any
foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and
financial consultant fees, discount fees, interest on bonds due and payable prior
to the expiration of one year from the date of completion of Facilities (but not to
exceed two years), election costs and all costs of issuance of the bonds,
including, but not limited to, fees for bond counsel, disclosure counsel, financing
consultants and printing costs, and all other administrative costs of the tax levy
and bond issue. The Special Tax will be secured by recordation of a continuing
lien against all non-exempt real property in the District. In the first year in which
such a Special Tax is levied, the levy shall include a sum sufficient to repay to
the City all amounts, if any, transferred to the District pursuant to Section 53314
of the Act and interest thereon. The schedule of the rate and method of
apportionment and manner of collection of the Special Tax within the District is
described in detail in Exhibit "C attached hereto and incorporated herein by this
reference. The Special Tax is based upon the cost of financing the Facilities,
Incidental Expenses and the AD 155 Payment in the District, the demand that
each parcel will place on the Facilities and the benefit (direct and/or indirect)
received by each parcel from the Facilities.
The Special Tax within the District is apportioned to each parcel on the foregoing
basis pursuant to Section 53325.3 of the Act. In the event that a portion of the
property within the District shall become for any reason exempt, wholly or
partially, from the levy of the Special Tax, the City Council shall, on behalf of the
District, increase the levy to the extent necessary upon the remaining property
within the District which is not delinquent or exempt in order to yield the required
payments, subject to the maximum tax. If special taxes of the District are levied
against any parcel used for private residential purposes, (i) the maximum special
tax rate shall not be increased over time except that it may be increased by an
amount not to exceed two percent (2%) per year to the extent permitted in the
rate and method of apportionment; (ii) such tax shall be levied for a period not to
exceed forty-five (45) years commencing with Fiscal Year 2005-2006, as further
described in Exhibit "C" attached hereto; and (iii) under no circumstances will
such special tax be increased as a consequence of delinquency or default by the
owner of any other parcels within the District by more than ten percent (10%).
Section 6. The special tax within the proposed District is based on the
expected demand that each parcel of real property within the proposed District
will place on the Facilities and on the benefit that each parcel derives from the
right to access the Facilities. The City Council hereby determines that the
proposed Facilities are necessary to meet the increased demand placed upon
01003.0080,40933 v1 3
the City of Palm Springs and DWA and the existing infrastructure in the City as a
result of the development of land proposed for inclusion in the District. The
Council hereby determines the rate and method of apportionment of the special
tax set forth in Exhibit "C" attached hereto to be reasonable.
Section 7. A public hearing (the "Hearing") on the establishment of Community
Facilities District No. 2005-2, the proposed rate and method of apportionment of
the Special Tax and the proposed issuance of bonds to finance the Facilities, the
Incidental Expenses and the AD 155 Payment shall be held on September 7,
2005 at 6:00 p.m., or as soon thereafter as practicable, at the Council Chambers
of the City Council of the City of Palm Springs, 3200 East Tahquitz Canyon Way,
Palm Springs, California 92262. Should the City Council determine to form the
District, a special election will be held within the District to authorize the issuance
of bonds and the levy of the Special Tax in accordance with the procedures
contained in Government Code Section 53326. If held, the proposed voting
procedure at the election will be a landowner vote with each landowner who is
the owner of record of land within the District at the close of the Hearing, or the
authorized representative thereof, having one vote for each acre or portion
thereof owned within the District. Ballots for the special election may be
distributed by mail or by personal service.
Section 8. At the time and place set forth above for the Hearing, any
interested person, including all persons owning lands or registered to vote within
the proposed District, may appear and be heard.
Section 9. Each City officer who is or will be responsible for the Facilities to be
financed by the District, if it is established, is hereby directed to study the
proposed District and, at or before the time of the above-mentioned Hearing, file
a report with the Council, and which is to be made a part of the record of the
Hearing, containing a brief description of the Facilities and services by type which
will in his or her opinion be required to adequately meet the needs of the District
and his or her estimate of the cost of providing the Facilities and services,
including an estimate of the fair and reasonable cost of all Incidental Expenses,
including the cost of planning and designing the Facilities to be financed pursuant
to the Act, the cost of environmental evaluations of such Facilities, all costs
associated with the creation of the District, issuance of bonds, determination of
the amount of any special taxes, collection of any special taxes, or costs
otherwise incurred in order to carry out the authorized purposes of the City with
respect to the District, and any other expenses incidental to the construction,
completion and inspection of the authorized work to be paid through the
proposed financing.
Section 10. The City may accept advances of funds or work-in-kind from any
sources, including private persons or private entities, and is authorized and
directed to use such funds for any authorized purpose, including any cost
incurred in creating the District. The District may enter into an agreement to
repay all of such funds as are not expended or committed for any authorized
purpose at the time of the election on the levy of the Special Tax, if the proposal
to levy such tax should fail, and to repay all of such funds advanced if the levy of
the Special Tax shall be approved by the qualified electors of the District.
01003 0090.40935 v1 4
Section 11. The City Clerk is hereby directed to publish a notice ("Notice") of
the Hearing pursuant to Section 6061 of the Government Code in a newspaper of
general circulation published in the area of the proposed District. Such Notice
shall contain the text or a summary of this Resolution, state the time and place of
the Hearing, a statement that the testimony of all interested persons or taxpayers
will be heard, a description of the protest rights of the registered voters and
landowners in the proposed District as provided in Section 53324 of the Act and
a description of the proposed voting procedure for the election required by the
Act. Such publication shall be completed at least seven (7) days prior to the date
of the Hearing.
Section 12, The City Clerk may send a copy of the Notice of the Hearing by
first-class mail, postage prepaid, to each registered voter and to each landowner
within the proposed District as shown on the last equalized assessment roll.
Said mailing shall be completed not less than fifteen (15) days prior to the date of
the Hearing.
Section 13. Pursuant to Section 53344.1 of the Act, the Council hereby
reserves to itself, in its sole discretion, the right and authority by subsequent
resolution to allow any owner of property within the District, subject to the
provisions of Section 53344.1 of the Act and those conditions as it may impose,
and any applicable prepayment penalties as prescribed in the bond indenture or
comparable instrument or document, to tender to the District treasurer in full
payment or part payment of any installment of the special taxes or the interest or
penalties thereon which may be due or delinquent, but for which a bill has been
received, any bond or other obligation secured thereby, the bond or other
obligation to be taken at par and credit to be given for the accrued interest shown
thereby computed to the date of tender.
Section 14. The voting procedure with respect to the establishment of the
District and the imposition of the special tax shall be by hand delivered ballot
election."
B. The hearing referred to in the aforesaid Resolution of Intention shall be on
the 7th day of September, 2005 at the hour of 6:00 p.m., or as soon thereafter as
practicable, at the chambers of the City Council of the City of Palm Springs,
California, 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262.
C. At that time and place the testimony of all interested persons for or against
the establishment of the District, the extent of the District, or the furnishing of
specified types of public facilities or services within the District, will be heard. If
50 percent or more of the registered voters, or six registered voters, whichever is
more, residing within the territory proposed to be included in the district, or the
owners of one-half or more of the area of the land in the territory proposed to be
included in the district and not exempt from the special tax, file written protests
against the establishment of the district, and protests are not withdrawn so as to
reduce the value of the protests to less than a majority, no further proceedings to
create the specified community facilities district or to levy the specified special
tax shall be taken for a period of one year from the date of the decision of the
01003,0080.40935 vl 5
City Council. If the majority protests of the registered voters or of the landowners
are only against the furnishing of a specified type or types of facilities or services
within the District, or against levying a specified special tax, those types of
facilities or services or the specified special tax shall be eliminated from the
resolution of formation.
D. The voting procedure with respect to the establishment of the District
specified by the Resolution of Intention and the imposition of the special tax shall
be by hand delivery or mailed ballot election.
E. A copy of the boundary map relating to the District is on file in the office of
the City Clerk. j
es Thompson, City Clerk
ity of Palm Springs
01003,0080.40935 V1 6
1�17P 15 f�' 8: S o
005 SE
Lennar Communities Inland
391 North Main Street, Suite 301 .1 C ii.S y I 'J i, L
Corona, California 92880 CV Y CL E X
Tel: 951.817.3600 Fax: 951.817.3699
DOCUMENT TRANSMITTAL
r=
Date: September 9, 2005
To: City Clerk
Co: City of Palm Springs
Frorn: Chris Evans, Financial Analyst
Subject: Request to Continue Public Hearing for Palm Springs Classic
(Escena) — relating to City of Palm Springs Community Facilities
District No. 2005-2
Dear City Clerk,
Please find included the executed Request to Continue Public Hearing for Palm
Springs Classic, LLC and for Standard Pacific Corp., relating to Community
Facilities District No. 2005-2.
Please be advised that the Request from MW Housing Partners III, LP was
submitted to the City under separate cover.
If you have any questions or need further information, please do not hesitate
to contact me.
Thank you.
Sincerely,
Chris Evans
Financial Analyst
TO: CITY COUNCIL OF THE CITY OF PALM SPRINGS
FROM: STANDARD PACIFIC CORP.
REQUEST TO CONTINUE THE PUBLIC HEARING
AND RESCHEDULE THE ELECTION ON THE ESTABLISHMENT OF
COMMUNITY FACILITY DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
The landowner identified below(the "Landowner") does hereby certify that the following
statements are all true and correct:
1. The Landowner is authorized to make the request contained herein to the City
Council (the "Council") of the City of Palm Springs (the "City") with respect to Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs to be established over, among
other parcels, the properties described in this request (the "CFD") and to be formed under the
provisions of the Mello-Roos Community Facilities Act of 1982 (the "Act"), being Chapter 2.5
of Part 1 of Division 2 of title 5 (commencing with Section 53311) of the California Government
Code.
2. The Landowner is the owner of the property described in Exhibit "A" hereto (the
`'Property"), which is a portion of the property within the proposed boundary of the CFD.
3. The Landowner acknowledges that the public hearing is currently scheduled for
September 7, 2005 (the "Public Hearing"). The Landowner also acknowledges that the property
owner election (the "Election") on the establishment of the CFD was scheduled to be held at the
conclusion of the Public Hearing on September 7, 2005. The Landowner is, by this document,
requesting the continuation of the Public Hearing and the rescheduling of the Election.
4. Accordingly, the Landowner does hereby request that the Public Hearing be
opened on September 7 as currently scheduled, but that the City Council takes the necessary
steps to continue the Public Hearing without closing it until the October 5, 2005 meeting of the
City Council. Furthermore, the Landowner does hereby request that the City Council take the
necessary steps to hold the Election on October 5, 2005.
IN WITNESS WHEREOF, I hereunto set my hand this 2nd day of September, 2005.
STANDARD PACIFIC CORP.,
a Dela re corporation
��
By: _
Name: 1'y17�� , -
Title: kit l� i ed Ropresentative
1
EXHIBIT A
THE LAND REFERRED TO IN THIS REQUEST IS SITUATED IN THE
STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF PALM
SPRINGS AND IS DESCRIBED AS FOLLOWS:
Tract No. 32233-1, Planning Area 6; and
Tract No. 32233-4, Planning Area 8.
2
TO: CITY COUNCIL OF THE CITY OF PALM SPRINGS
FROM: PALM SPRINGS CLASSIC, LLC
REQUEST TO CONTINUE THE PUBLIC HEARING
AND RESCHEDULE THE ELECTION ON THE ESTABLISHMENT OF
COMMUNITY FACILITY DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
The landowner identified below (the "Landowner") does hereby certify that the following
statements are all true and correct:
1. The Landowner is authorized to make the request contained herein to the City
Council (the "Council") of the City of Palm Springs (the "City") with respect to Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs to be established over, among
other parcels, the properties described in this request (the "CFD") and to be formed under the
provisions of the Mello-Roos Connnrmity Facilities Act of 1982 (the "Act'), being Chapter 2.5
of Part 1 of Division 2 of title 5 (commencing with Section 53311) of the California Government
Code.
2. The Landowner is the owner of the property described in Exhibit "A" hereto (the
"Property"), which is a portion of the property within the proposed boundary of the CFD.
3. The Landowner acknowledges that the public hearing is currently scheduled for
September 7, 2005 (the "Public Hearing"). The Landowner also acknowledges that the property
owner election (the "Election") on the establislnnent of the CFD was scheduled to be held at the
conclusion of the Public Hearing on September 7, 2005. The Landowner is, by this docrmlent,
requesting the continuation of the Public Hearing and the rescheduling of the Election.
4. Accordingly, the Landowner does hereby request that the Public Hearing be
opened on September 7 as currently scheduled, but that the City Council takes the necessary
steps to continue the Public Hearing without closing it until the October 5, 2005 meeting of the
City Council. Furthennore, the Landowner does hereby request that the City Council take the
necessary steps to hold the Election on October 5, 2005.
1
IN WITNESS WHEREOF, I hereunto set my band this 2nd day of September, 2005.
PALM SPRINGS CLASSIC, LLC,
a Delaware limited liability company
By: Lemur Homes of California, Inc.,
a California corporation
Its: Manager
By: �/
Name: �S ��rrr
Title: _ ,r y
z®°
2
EXHIBIT A
THE LAND REFERRED TO IN THIS REQUEST IS SITUATED IN THE
STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF PALM
SPRINGS AND IS DESCRIBED AS FOLLOWS:
Tract No. 32233-1, Planning Areas 1, 5A and 7A;
Tract No. 32233-1, Lots F through J, M through W, AE and AF;
Tract No. 32233, Plaiming Areas 5B and 5C; and
Tract No. 32233, Plamiing Areas 213 and 2C.
3
h
Lennar Communities Inland i
391 North Main Street, Suite 301 CITY C L EP
Corona, California 92880
Tel: 951.817.3600 Fax: 951.817.3699
DOCUMENT TRANSMITTAL
Date: September 12, 2005
To: City Clerk
Cc: City of Palm Springs
From: Chris Evans, Financial Analyst
Subject: Request to Continue Public Hearing for Palm Springs Classic
(Escena) — relating to City of Palm Springs Community Facilities
District No. 2005-2
Dear City Clerk,
Please find included the executed Request to Continue Public Hearing for MW
Housing Partners III, LP relating to Community Facilities District No. 2005-2.
If you have any questions or need further information, please do not hesitate
to contact me.
Thank you.
Sincerely,
Chris Evans
Financial Analyst
TO: CITY COUNCIL OF THE CITY OF PALM SPRINGS
FROM: MW HOUSING PARTNERS III, L.P.
REQUEST TO CONTINUE THE PUBLIC HEARING
AND RESCHEDULE THE ELECTION ON THE ESTABLISHMENT OF
COMMUNITY FACILITY DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
The landowner identified below (the "Landowner") does hereby certify that the following
statements are all true and correct:
1. The Landowner is authorized to make the request contained herein to the City
Council (the "Council') of the City of Palm Springs (the "City") with respect to Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs to be established over, among
other parcels, the properties described in this request (the "CFD") and to be formed under the
provisions of the Mello-Roos Community Facilities Act of 1982 (the "Act"), being Chapter 2.5
of Part 1 of Division 2 of title 5 (commmencing with Section 53311) of the California Govermnent
Code.
2. The Landowner is the owner of the property described in Exhibit "A" hereto (the
"Property"), which is a portion of the property within the proposed boundary of the CFD.
3. The Landowner acknowledges that the public hearing is currently scheduled for
September 7, 2005 (the "Public Hearing"). The Landowner also acknowledges that the property
owner election (the "Election") on the establislument of the CFD was scheduled to be held at the
conclusion of the Public Hearing on September 7, 2005. The Landowner is, by this document,
requesting the continuation of the Public Hearing and the rescheduling of the Election.
4. Accordingly, the Landowner does hereby request that the Public Hearing be
opened on September 7 as currently scheduled, but that the City Council takes the necessary
steps to continue the Public Hearing without closing it until the October 5, 2005 meeting of the
City Council. Furthermore, the Landowner does hereby request that the City Council take the
necessary steps to hold the Election on October 5, 2005.
1
IN WITNESS WHEREOF, I hereunto set my hand this 2nd day of September, 2005.
MW HOUSING PARTNERS III, L.P.,
a California limited partnership
By: MW Housing Management III, LLC,
A California limited liability company
Its: General Partner
By: WRI CP Investments III LLC,
a Washington limited liability company
Its: Co-Manager
By: Weyerhaeuser Realty Investors, Inc.,
a Washington corporation
Its: Manager
By:
--
Trtle: �-
2
EXHIBIT A
THE LAND REFERRED TO IN THIS REQUEST IS SITUATED IN THE
STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF PALM
SPRINGS AND IS DESCRIBED AS FOLLOWS:
Tract No. 32233-2, Planning Areas 7B and 7C; and
Tract No. 32233-3, Plara ing Areas 9A and 9B.
3
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
SPECIAL BOND, TAX AND APPROPRIATIONS LIMIT ELECTION
October 5, 2005
To vote, mark a cross (+) in the voting square after the word "YES" or after the
word "NO." All marks otherwise made are forbidden.
This ballot is provided to STANDARD PACIFIC CORP., as sole owner-or
authorized representative of such sole owner of 25.02 acres of land within Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs and represents 26
votes.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the
City of Palm Springs at 3200 East Tahquitz Canyon Way, Palm Springs, California
92262.
PROPOSITION A: Shall Community Facilities District No. 2005-2 (Escena) of the City
of Palm Springs incur an indebtedness and be authorized to issue bonds in the
maximum aggregate principal amount of $21,000,000 with interest at a rate or rates
established at such time as the bonds are sold in one or more series at fixed or variable
interest rates, however not to exceed any applicable statutory rate for such bonds, the
proceeds of which will be used to finance (1) the purchase,
construction, modification, expansion, improvement or
rehabilitation of certain real or other tangible property, including all YES
furnishings, equipment and supplies related thereto, and the
payment of development, impact and other fees of public
agencies (collectively, the "Facilities"), which Facilities have a NO ❑
useful life of five years or longer; (2) the payment and retirement
of assessments in Assessment District No. 155 of the City of
Palm Springs; (3) the funding of a Reserve Account; and (4) the
incidental expenses to be incurred in connection with financing the Facilities and
forming and administering the District (the 'Incidental Expenses"), as provided in
Resolution of Intention No. 21381, adopted by the City Council of the City of Palm
Springs on July 20, 2005, declaring its intention to establish the Community Facilities
District No. 2005-2 (Escena) of the City of Palm Springs (the 'Resolution"); and shall a
Special Tax be levied to pay the principal of and interest on such indebtedness and
bonds and to pay directly the cost of acquisition and construction of Facilities and
Incidental Expenses as authorized in the Resolution; and shall an appropriations limit be
established for Community Facilities District No. 2005-2 (Escena) of the City of Palm
Springs pursuant to Article XIIIB of the California Constitution, said appropriations limit
01003/0080/41191.02
to be equal to the amount of all proceeds of the special tax collected annually, as
adjusted for changes in the cost of living and changes in population?
Signed this 5th of October, 2005
STANDARD PACIFIC CORP.,
AB De e corporation
/J y6L 4I
Name (�I u-Mg l ruLLaq $F-
-- Title - -
RETURN THIS BALLOT TO:
City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Your completed ballot may be mailed or personally delivered, but it must be received
prior to 11:00 a.m. on October 5, 2005. Incomplete, late or unsigned ballots will not be
considered in the tabulation.
[Signature Page to Ballot for Community Facilities District No. 2005-2
(Escena) of the City of Palm Springs]
01003/0080/4119102
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
SPECIAL TAX ELECTION
OCTOBER 5, 2005
VOTER IDENTIFICATION CERTIFICATION
The undersigned hereby declares under penalty of perjury as follows:
I have been duly authorized to cast ballots on behalf of the landowner as set forth below:
LANDOWNER: STANDARD PACIFIC CORP.,
a Dela � p �— vUJ�or or tion �
By �Pt�
Name: U In"/4 t1n r(nu.�W
Title:
NAME OF VOTER: STANDARD PACIFIC CORP.
ADDRESS OF VOTER: 15326 ALTON PARKWAY
IRVINE, CALIFORNIA 92618
ATTENTION: RAM FULLEN
DATE OF SIGNING: OCTOBER 5, 2005
PLACE OF SIGNING: ATADDRESSABOVE
01003/0080/40955.03
FAILURE TO COMPLETE THE ABOVE INFORMATION WILL INVALIDATE YOUR BALLOT.
Please Return with Ballot
HOW TO VOTE YOUR BALLOT
Vote your official ballot by placing a cross (+) in the voting square opposite your choice
with a pen or pencil.
SPOILING YOUR BALLOT
If you tear your ballot or make an error in voting, you may secure another by
surrendering the ballot you spoiled, in person or by mail, at the address below, or by executing
an affidavit to the effect that you lost your ballot, and you will be given another ballot.
LAST DAY TO RETURN TO CITY CLERK AS ELECTION OFFICIAL
Your ballot must be returned to the office of the City Clerk of the City of Palm Springs, as
Election Official not later 11 a.m. on October 5 2005 for it to be counted. YOUR BALLOT
CANNOT BE ACCEPTED BEYOND THIS DEADLINE. PLEASE RETURN YOUR VOTER
IDENTIFICATION WITH YOUR BALLOT.
Your ballot and voter identification must be mailed in the envelope provided for this
purpose, or it may be delivered in the envelope to the office of the City Clerk of the City of Palm
Springs, as Election Official, at East Tahquitz Canyon Way, Palm Springs, California 92262.
NOTE
YOU WILL RECEIVE ONLY ONE BALLOT WITH RESPECT TO PROPERTY WITHIN
THE DISTRICT, BUT THAT BALLOT MAY HAVE VALUE OF MORE THAN ONE VOTE. (See
enclosed letter to voter.)
01003/0080/40955.03
James Thompson 1• ' �� t �,..
City Clerk.
3200 E. Tahquitz Canyon Way
Payrn Springs, CA 92262
IIJILJ,I,IIol,llolosl
BALLOT FOR OCTOBER 5,2005 ELECTION— CFD NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS
THIS ENVELOPE CONTAINS AN OFFICIAL BALLOT AND IS TO BE OPENED ONLY BY THE CANVASSING
BOARD.
OWNER: STANDARD PACIFIC CORP.
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
SPECIAL BOND, TAX AND APPROPRIATIONS LIMIT ELECTION
October 5, 2005
To vote, mark a cross (+) in the voting square after the word "YES" or after the
word "NO." All marks otherwise made are forbidden.
This ballot is provided to Palm Springs Classic, LLC, as sole owner or authorized
representative of such sole owner of 116.95 acres of land within Community Facilities
District No. 2005-2 (Escena) of the City of Palm Springs and represents 117 votes.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the
City of Palm Springs at 3200 East Tahquitz Canyon Way, Palm Springs, California
92262.
PROPOSITION A: Shall Community Facilities District No. 2005-2 (Escena) of the City
of Palm Springs incur an indebtedness and be authorized to issue bonds in the
maximum aggregate principal amount of $21,000,000 with interest at a rate or rates
established at such time as the bonds are sold in one or more series at fixed or variable
interest rates, however not to exceed any applicable statutory rate for such bonds, the
proceeds of which will be used to finance (1) the purchase,
construction, modification, expansion, improvement or
rehabilitation of certain real or other tangible property, including all
furnishings, equipment and supplies related thereto, and the YES
payment of development, impact and other fees of public
agencies (collectively, the "Facilities"), which Facilities have a NO
El
useful life of five years or longer; (2) the payment and retirement
of assessments in Assessment District No. 155 of the City of
Palm Springs; (3) the funding of a Reserve Account; and (4) the
incidental expenses to be incurred in connection with financing the Facilities and
forming and administering the District (the 'Incidental Expenses"), as provided in
Resolution of Intention No. 21381, adopted by the City Council of the City of Palm
Springs on July 20, 2005, declaring its intention to establish the Community Facilities
District No. 2005-2 (Escena) of the City of Palm Springs (the 'Resolution"); and shall a
Special Tax be levied to pay the principal of and interest on such indebtedness and
bonds and to pay directly the cost of acquisition and construction of Facilities and
Incidental Expenses as authorized in the Resolution; and shall an appropriations limit be
established for Community Facilities District No. 2005-2 (Escena) of the City of Palm
Springs pursuant to Article XIIIB of the California Constitution, said appropriations limit
to be equal to the amount of all proceeds of the special tax collected annually, as
adjusted for changes in the cost of living and changes in population?
01003/0080/4 1 1 8 8.03
. I.
Signed this 51h of October, 2005
PALM SPRINGS CLASSIC, LLC,
a Delaware limited liability company
By: Lennar Homes of California, Inc.,
a California corporation,
Its Manager
By.
/ 4
Title:
RETURN THIS BALLOT TO:
City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Your completed ballot may be mailed or personally delivered, but it must be received
prior to 11:00 a.m. on October 5, 2005. Incomplete, late or unsigned ballots will not be
considered in the tabulation.
[Signature Page to Ballot for Community Facilities District No. 2005-2
(Escena) of the City of Palm Springs]
01003/0090/41188.03
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
SPECIAL TAX ELECTION
OCTOBER 5, 2005
VOTER IDENTIFICATION CERTIFICATION
The undersigned hereby declares under penalty of perjury as follows:
I have been duly authorized to cast ballots on behalf of the landowner as set forth below:
LANDOWNER: PALM SPRINGS CLASSIC, LLC,
a Delaware limited liability company
By: Lennar Homes of California, Inc.,
a California corporation,
Its Managg i
By:
Na
Title:
NAME OF VOTER: PALM SPRINGS CLASSIC, LLC
ADDRESS OF VOTER: C/O LENNAR HOMES OF CALIFORNIA, INC.
391 NORTH MAIN STREET, SUITE 301
CORONA, CALIFORNIA 92880
ATTENTION: CHRIS EVANS
DATE OF SIGNING: OCTOBER 5, 2005
PLACE OF SIGNING: AT ADDRESS ABOVE
0100.3/0080/40955.03
FAILURE TO COMPLETE THE ABOVE INFORMATION WILL INVALIDATE YOUR BALLOT.
Please Return with Ballot
HOW TO VOTE YOUR BALLOT
Vote your official ballot by placing a cross (+) in the voting square opposite your choice
with a pen or pencil.
SPOILING YOUR BALLOT
If you tear your ballot or make an error in voting, you may secure another by
surrendering the ballot you spoiled, in person or by mail, at the address below, or by executing
an affidavit to the effect that you lost your ballot, and you will be given another ballot.
LAST DAY TO RETURN TO CITY CLERK AS ELECTION OFFICIAL
Your ballot must be returned to the office of the City Clerk of the City of Palm Springs, as
Election Official not later 11 a.m. on October 5 2005 for it to be counted. YOUR BALLOT
CANNOT BE ACCEPTED BEYOND THIS DEADLINE. PLEASE RETURN YOUR VOTER
IDENTIFICATION WITH YOUR BALLOT.
Your ballot and voter identification must be mailed in the envelope provided for this
Purpose, or it may be delivered in the envelope to the office of the City Clerk of the City of Palm
Springs, as Election Official, at East Tahquitz Canyon Way, Palm Springs, California 92262.
NOTE
YOU WILL RECEIVE ONLY ONE BALLOT WITH RESPECT TO PROPERTY WITHIN
THE DISTRICT, BUT THAT BALLOT MAY HAVE VALUE OF MORE THAN ONE VOTE. -(See
enclosed letter to voter.)
0100310080140955.03
(]ITT CLE� James Thompson
City Clerk.
3200 E. Tahquitz Canyon Way
Paihn++Springs, CA 92262
�BEEItl VIIf IIIIIIIIYIIIIIIIi�lii
BALLOT FOR OCTOBER 5,2005 ELECTION—CFD NO. 2005.2 (ESCENA) OF TFIE CITY OF PALM SPRINGS
THIS ENVELOPE CONTAINS AN OFFICIAL BALLOT AND IS TO BE OPENED ONLY BY THE CANVASSING
BOARD.
OWNER: PALM SPRINGS CLASSIC,LLC
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
SPECIAL BOND, TAX AND APPROPRIATIONS LIMIT ELECTION
October 5, 2005
To vote, mark a cross (+) in the voting square after the word "YES" or after the
word "NO." All marks otherwise made are forbidden.
This ballot is provided to MW HOUSING PARTNERS III, L.P., as sole owner or
authorized representative of such sole owner of 52.82 acres of land within Community
Facilities District No. 2005-2 (Escena) of the City of Palm Springs and represents 53
votes.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the
City of Palm Springs at 3200 East Tahquitz Canyon Way, Palm Springs, California
92262.
PROPOSITION A: Shall Community Facilities District No. 2005-2 (Escena) of the City
of Palm Springs incur an indebtedness and be authorized to issue bonds in the
maximum aggregate principal amount of $21,000,000 with interest at a rate or rates
established at such time as the bonds are sold in one or more series at fixed or variable
interest rates, however not to exceed any applicable statutory rate for such bonds, the
proceeds of which will be used to finance (1) the purchase,
construction, modification, expansion, improvement or
rehabilitation of certain real or other tangible property, including all YES
furnishings, equipment and supplies related thereto, and the
payment of development, impact and other fees of public
agencies (collectively, the "Facilities"), which Facilities have a NO
useful life of five years or longer; (2) the payment and retirement
of assessments in Assessment District No. 155 of the City of
Palm Springs; (3) the funding of a Reserve Account; and (4) the
incidental expenses to be incurred in connection with financing the Facilities and
forming and administering the District (the 'Incidental Expenses"), as provided in
Resolution of Intention No. 21381, adopted by the City Council of the City of Palm
Springs on July 20, 2005, declaring its intention to establish the Community Facilities
District No. 2005-2 (Escena) of the City of Palm Springs (the 'Resolution"); and shall a
Special Tax be levied to pay the principal of and interest on such indebtedness and
bonds and to pay directly the cost of acquisition and construction of Facilities and
Incidental Expenses as authorized in the Resolution; and shall an appropriations limit be
established for Community Facilities District No. 2005-2 (Escena) of the City of Palm
Springs pursuant to Article XIIIB of the California Constitution, said appropriations limit
01003/0080/41190.02
to be equal 'to the amount of all proceeds of the special tax collected annually, as
adjusted for changes in the cost of living and changes in population?
Signed this 5ch of October, 2005
MW HOUSING PARTNERS III, L.P.,
a California limited partnership
By: MW Housing Management III, LLC,
A California limited liability company
Its: General Partner
By: WRI CP Investments III LLC,
a Washington limited liability company
Its: Co-Manager
By: Weyerhaeuser Realty Investors, Inc.,
a Washington corporation
Its: ManagerLI
�)
��� //
Name: Quic( -vy-,I ) v\S-k�r—
Title: c'A" qe 1
RETURN THIS BALLOT TO:
City Clerk
City of Palm Springs _
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Your completed ballot may be mailed or personally delivered, but it must be received
prior to 11:00 a.m. on October 5, 2005. Incomplete, late or unsigned ballots will not be
considered in the tabulation.
[Signature Page to Ballot for Community Facilities District No. 2005-2
(Escena) of the City of Palm Springs]
01003/0080141190.02
COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA)
OF THE CITY OF PALM SPRINGS
SPECIAL TAX ELECTION
OCTOBER 5, 2005
VOTER IDENTIFICATION CERTIFICATION
The undersigned hereby declares under penalty of perjury as follows:
I have been duly authorized to cast ballots on behalf of the landowner as set forth below:
LANDOWNER: MW HOUSING PARTNERS III, L.P.,
a California limited partnership
By: MW Housing Management III, LLC,
A California limited liability company
Its: General Partner
By: WRI CP Investments III LLC,
a Washington limited liability company
Its: Co-Manager
By: Weyerhaeuser Realty Investors, Inc.,
a Washington corporation
Its: Manager
Title: ev�
NAME OF VOTER: MW HOUSING PARTNERS III, L.P.
ADDRESS OF VOTER: MW HOUSING PARTNERS III, L.P.
ATTENTION: DAVID BRENTLINGER
1301 FIFTH AVE SUITE 3100
SEATTLE, WA 98101-2647
DATE OF SIGNING: OCTOBER 5, 2005
PLACE OF SIGNING: ATADDRESSABOVE
01003/0080/40955 03
a
FAILURE TO COMPLETE THE ABOVE INFORMATION WILL INVALIDATE YOUR BALLOT.
Please Return with Ballot
HOW TO VOTE YOUR BALLOT
Vote your official ballot by placing a cross (+) in the voting square opposite your choice
with a pen or pencil.
SPOILING YOUR BALLOT
If you tear your ballot or make an error in voting, you may secure another by
surrendering the ballot you spoiled, in person or by mail, at the address below, or by executing
an affidavit to the effect that you lost your ballot, and you will be given another ballot.
LAST DAY TO RETURN TO CITY CLERK AS ELECTION OFFICIAL
Your ballot must be returned to the office of the City Clerk of the City of Palm Springs, as
Election Official not later 11 a.m. on October 5 2005 for it to be counted. YOUR BALLOT
CANNOT BE ACCEPTED BEYOND THIS DEADLINE. PLEASE RETURN YOUR VOTER
IDENTIFICATION WITH YOUR BALLOT.
Your ballot and voter identification must be mailed in the envelope provided for this
purpose, or it may be delivered in the envelope to the office of the City Clerk of the City of Palm
Springs, as Election Official, at East Tahquitz Canyon Way, Palm Springs, California 92262.
NOTE
YOU WILL RECEIVE ONLY ONE BALLOT WITH RESPECT TO PROPERTY WITHIN
THE DISTRICT, BUT THAT BALLOT MAY HAVE VALUE OF MORE THAN ONE VOTE. (See
enclosed letter to voter.)
01003/0080/40955 03
James Thompson
City Clerk C11
3200 F, T'ahyuitz Canyon Way
Pawn Springs, CA 92262
Il,I000rlIIIIILIIIo!
BALLOT FOR.OCTOBER 5 2005 ELECTION—CFID ?PTO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS
1ITIS ENVELOPE CONT�,INS AN OFFICIAL O BA,L LU i AND IS TO BE OPENED ONLY BY THE CANVASSING
BARD.
OWNER._M-W%MOUSING PART'NE IS 1II,L.P.