2006/11/28 City Council Resolution (10)RESOLUTION NO. 2006- 276
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
APPROVING A
STATEMENT OF LOCAL GOALS AND POLICIES CONCERNING THE USE OF THE
MELLO -ROOS COMMUNITY FACILITIES ACT OF 1982
WHEREAS, pursuant to Section 53312.7 of the California Government Code a local
agency may initiate proceedings to establish a Community Facilities District (CFD) only if it has
first considered and adopted Local Goals and Policies Concerning the use of the Mello -Roos
Community Facilities Act of 1982; and
WHEREAS, a CFD is one of three (3) approved principal financing mechanisms utilized
in the City of Rohnert Park's Public Facilities Finance Plan; and
WHEREAS, the City of Rohnert Park (City) has agreed to use its best effort to adopt
Local Goals and Policies within ninety (90) days following the Effective Date of the City's
Development Agreement with the University District LLC and Vast Oak Properties L.P.; and
WHEREAS, the Local Goals and Policies are designed to ensure that CFDs created are
made for the public good and comply with all relevant laws, acts and agreements; and
WHEREAS, the Goals and Policies may be amended or supplemented by City Council
resolution at any time, and approval does not obligate the City Council in any way to create
CFDs if they meet the parameters set forth; and
BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby
authorize and approve The City of Rohnert Park Statement of Local Goals and Policies
Concerning the use of the Mello -Roos Community Facilities Act of 1982, as outlined in Exhibit
"A" attached.
DULY AND REGULARLY ADOPTED this 28th day of November , 2006
CITY OF ROHNERT PARK
Mayor Tim smith
ATTEST:
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19 62
City Clerk `l
CALIFORNIA
BREEZE: AYE FLORES: AYE MACKENZIE: AYE
VIDAK•MARTINEZ: ABSENT SMITH: AYE
AYES: (4) NOES: (0) ABSENT: (1) ABSTAIN: (0)
EXHIBIT "A"
CITY OF ROHNERT PARK
STATEMENT OF LOCAL GOALS AND POLICIES
CONCERNING THE USE OF THE
MELLO -ROOS COMMUNITY FACILITIES ACT OF 1982
Pursuant to Section 53312.7 of the California Government Code, the City Council of Rohnert Park
(hereafter the "City Council ") hereby states its goals and policies concerning the use of the Mello -
Roos Community Facilities Act of 1982, Section 53311, et seq. of the California Government Code
(hereafter the "Act "), in providing adequate public infrastructure improvements for the City of
Rohnert Park (the "City ") and in refunding existing debt on land within the City. In addition, the Act
may be used to provide for the maintenance, repair, reconstruction and replacement of any of the
foregoing infrastructure improvements. The following goals and policies shall apply to each
community facilities district (a "CFD ") hereafter formed by the City.
Any policy or goal stated herein may be supplemented or amended or deviated from, and new goals
and policies may be added .hereto, from time to time upon a determination by the City Council that
such supplement, amendment, deviation or addition is necessary or desirable. Any policy or goal
stated herein shall be deemed amended or supplemented in the event, and as of the date, if ever, that
such amendment or supplement is required to ensure compliance with:
a. Development Agreements entered into or amended by the City in accordance with
Government Code Section 65864 et. seq.;
b. The Act;
c. Any other laws of the State of California; or
d. Laws of the United States of America.
1. Priority for Financing Various Kinds of Public Facilities Through the Use of the Act.
It is the policy of the City to give priority to the financing, through the use of the Act, as follows:
a) Refinancing of pre- existing assessment liens and refunding of any bonds secured by said
liens as these may affect land within the CFD;
b) Financing of the design, construction and/or acquisition of public infrastructure identified in
the City's Public Facilities Finance Plan (PFFP) as it may be amended from time to time, as
such infrastructure mitigates impacts caused by development occurring within the CFD, and
to the extent that such infrastructure may lawfully be financed under the Act; and
c) Financing of the design, construction and/or acquisition of other public infrastructure
improvements directly benefiting the City, which improvements may include, but are not
limited to, in -track improvements, park improvements, storm drainage improvements, public
roadways and sidewalks.
It is also the policy of the City to assist in the financing of the design, construction and/or acquisition
of other public facilities, through the use of Joint Public Facilities Financing Agreements, when to do
so will, in the sole discretion of the City Council acting as the legislative body of the affected CFD,
result in a savings to residents or property owners, for example, by reducing costs of bond issuance
Rohnert Park Goals & Policies 10 27 06
and/or administrative expenses. Such joint financing assistance shall be considered when it does not
interfere with the financing of public infrastructure improvements directly benefiting the City.
2. Credit Quality Required of Bond Issues, Including Criteria in Evaluating the Credit Quality.
It is the policy of the City that prior to the issuance of any CFD bonds, the following conditions shall
be met:
a) Maximum special tax revenues from the CFD are reasonably expected to provide at least one
hundred ten percent (110 %) debt service coverage for each year of the term of such bonds;
b) The bond issuance document establishes, and includes a covenant to cause special taxes to be
levied in an amount sufficient to maintain, for the term of such bonds an aden„ately fiinr]aA
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reserve fund securing such bonds in accordance with the regulations of the Internal Revenue
Service (IRS).
In addition, in cases when development interests (Proponents) petition for CFD formation, the City
may require that Proponents provide a letter of credit or other credit enhancement instrument in form
and amount reasonably satisfactory to the City which is sufficient to ensure payment of the principal
and interest payments on the CFD bonds for up to two (2) years following issuance thereof
(computed without regard for the availability of capitalized interest or amounts on deposit in a debt
service reserve fund).
Further, it is the policy of the City to comply with all provisions of the Act including, but not limited
to, Section 53345.8, as such Section may be amended from time to time.
3. Steps to Ensure that Prospective Property Purchasers Are Fully Informed About Their
Taxpaying Obligations.
It is the goal of the City that the CFD Proponents provide actual and conspicuous notice to all
potential homeowners, taxpayers residing within, or taxnaverc nwnino nrnnPrfh7 x:„+h ;n tho
boundaries of a CFD.
In order to comply with this goal, it is the policy of the City that:
a) All notices provided by the CFD Proponents shall be in compliance with applicable legal
requirements, including, without limitation, applicable provisions of Government Code
Section 53341.5;
b) The form of such notice shall be acceptable to the City and shall at a minimum provide a
comprehensive listing of all the fees, taxes and assessments to be charged to any and all
owners of property within the CFD;
c) The proposed form of such notice shall be submitted to the City, for review, at the same time
that petition- requesting fortio of the ('FT) nra m, --A
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d) The Proponents shall make revisions to the proposed form of notice as requested by the City;
It is the policy of the City to refrain from the issuance of any CFD bonds until the aforementioned
notice is approved.
It is further the policy of the City that:
Rohnen Park Goals & Policies 10_27_06 2
a) In conformance with the Act, the Proponents shall provide potential property owners with a
written and itemized notice of such projected costs and the manner in which they will be
charged, which notice the potential property owner will sign;
b) The Proponents shall provide a copy of each signed notice to the City's Community
Development Director;
c) The Proponents shall retain a copy of such notice in Proponents' files for at least fifteen (15)
years following the date of such notice.
It is further the policy of the City to provide Section 53340.2 notice of special tax to any individual
requesting such notice or any owner of property subject to a special tax levied by the City within five
(5) working days of receiving a request for such notice.
4. Criteria for Evaluating the Equity of Tax Allocation Formulas, and Concerning Desirable
and Maximum Amounts of Special Tax.
It is the goal of the City that each taxpayer residing within, or owning property within, the boundaries
of any CFD hereafter established by the City pay special taxes which generally reflect such
taxpayer's fair and reasonable share of his or her projected benefit from, and/or burden upon, the
facilities to be constructed and/or maintained or of any refunding of existing debt within the CFD by
such CFD.
It is the goal of the City that maximum special taxes on residential owner - occupied property, when
taken together with (a) ad valorem taxes, (b) all other special taxes levied pursuant to the Act and
(c) all assessments applicable to such property, do not exceed in any year 1.75% of the greater of the
parcel's assessed value or a reasonable estimate of the sale price for the parcel and the residential or
commercial unit to be constructed thereon.
In order to comply with this goal and when the Proponent requests that a "reasonable estimate" be
used to calculate the maximum allowable special tax it is the policy of the City that:
a) At least 120 days prior to the anticipated election date, as defined in the Act, the Proponent,
at its cost, shall submit its method of estimating value for approval by the City;
b) At least 100 days prior to the anticipated election date, the City shall provide the Proponent
with requested changes to said method; and
c) At least 30 days prior to the anticipated election date, the Proponent, at its cost, shall provide
the City with the estimated values to be used in making the final determination of the
maximum special tax.
It is the policy of the City to refrain from the issuance of any CFD bonds until the aforementioned
appraisal process is satisfactorily completed.
It is further the policy of the City that the rate method of apportionment for special tax levied
pursuant to the Act be drafted to allow a property owner to permanently satisfy the special tax (and
remove the lien thereof) as to any taxable parcel by prepayment pursuant to Section 53344 of the
Act.
It is further the policy of the City not to permit the escalation of maximum taxes.
Robnert Park Goals & Policies 10 27 06
5. Definitions, Standards, and Assumptions for Appraisals Required by Section 53345.8.
It is the goal of the City to conform, as nearly as practicable, to the California Debt and Investment
Advisory Commission's Appraisal Standards for Land - Secured Financings, as such standards may be
amended from time to time, provided, however, that the City Council may additionally amend such
standards from time to time as it deems necessary and reasonable, in its own discretion, to provide
needed infrastructure improvements within the City, while still accomplishing the goals set forth
herein.
6. Standard for Advance of Expenses; Reimbursement.
It is the policy of the City that the Proponents of the CFD shall advance to the City actual out of
pocket costs of formation of the CFD, sale of CFD bonds, and other costs and expenses associated
with. the CFD ( "Advanced Costs "). Such Advanced Costs may include, without limitation, legal,
financial, appraisal and engineering costs and expenses associated with:
a) Formation of the CFD;
b) Determination of the rate and method of apportionment and levy of the special tax;
c) Review and approval of the plans and specifications for construction of the improvements;
d) Determination of the value of the property;
e) Sale of CFD bonds; and
f) Any other costs or expenses reasonably incurred in connection with the CFD.
It is further the policy of the City that all such Advanced Costs, together with those reasonable out -
of- pocket legal, engineering, and financial services costs incurred by Proponent directly related to
establishment and implementation of the CFD, which may lawfully be financed under the Mello -
Roos Act and other applicable law, shall be reimbursed from proceeds of the sale of CFD bonds in
accordance with the nrnviciong of the ReimL,,,,�o.,,o... A a�_ L_ , ,____
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event that the City is unable to make legally required findings in connection with the formation of
the CFD and the issuance of CFD bonds for any reason, the City shall not be liable for any costs
incurred by Proponents.
It is the policy of the City that when the proceeds of CFD bonds will be used for either
reimbursement of costs incurred by Proponents or acquisition of facilities constructed by Proponents
that City and Proponents will enter into a either a Reimbursement or Funding and Acquisition
Agreement. The form of said agreements shall be reasonably acceptable to the City's bond counsel
setting forth, among other things, the procedures for and mechanisms by which Proponents will be
reimbursed, out of available proceeds of the CFD bonds, for improvements constructed and/or paid
for by Proponents.
7. issuance of Bonds
It is the goal of the City that the amounts, timing and terms of the issuance and sale of the CFD
bonds shall be coordinated, as closely as possible, with the phasing of the development of the
property to provide financing for the improvements in a timely fashion to meet the needs of the
respective phases of development of the project. If necessary, the CFD bonds may be issued in series
to help correspond to such phases. The amounts, timing and terms of the issuance and sale of the
Rohnert Park Goals & Policies 10_27_06 4
CFD bonds shall be determined by the City, in consultation with the Developer, and the City's bond
counsel, financial advisors an/or underwriters.
It is the policy of the City that the Proponents shall commit in writing at least 30 days before the
election date to the following:
a) To assist the City in the issuance of the CFD bonds by providing financial and development
information reasonably required for due - diligence and disclosures relating to the issuance of
the CFD bonds;
b) To provide for any required continuing disclosures under applicable securities laws.
Rohnert Park Goals & Policies 10 27 06