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2022/01/11 City Council Resolution 2022-008 RESOLUTION NO. 2022-008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (THE "AUTHORITY") TO FORM A COMMUNITY FACILITIES DISTRICT WITHIN THE TERRITORIAL LIMITS OF THE CITY OF ROHNERT PARK AND RELATED MATTERS WHEREAS, the City of Rohnert Park ("City") is a municipal corporation duly organized and existing under and by virtue of the laws of the State of California("State"); and WHEREAS, the California Statewide Communities Development Authority ("Authority") is a California joint-exercise of powers authority lawfully formed and operating within the State pursuant to an agreement (the "Joint Powers Agreement") entered into as of June 1, 1988 under the authority of Title 1, Division 7, Chapter 5 (commencing with Section 6500) of the California Government Code; and WHEREAS, the City is a party to the Joint Powers Agreement and by virtue thereof a member(a"Program Participant") of the Authority; and WHEREAS, the Joint Powers Agreement was entered into to establish the Authority as an agency authorized to issue bonds to finance projects within the territorial limits of its Program Participants; and WHEREAS, the Joint Powers Agreement authorizes the Authority to undertake financing programs under any applicable provisions of State law to promote economic development, the stimulation of economic activity, and the increase of the tax base within the jurisdictional boundaries of its Program Participants; and WHEREAS, the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 (beginning with Section 53311) of the Government Code of the State (the "Act") is an applicable provision of State law available to, among other things, finance public improvements necessary to meet increased demands placed upon local agencies as a result of development; and WHEREAS, there is a development project known as the "SOMO Village Planned Development" in the City (the "SOMO Village Project") and the developer of said project, SOMO Village, LLC, a Delaware limited liability company (the "Developer"), has requested the City to form a community facilities district for its project under the Act as provided for in that certain Amended and Restated Development Agreement between Developer and the City dated May 28, 2021, and recorded as instrument No. 2021070368 in the official records of the County of Sonoma(the "Development Agreement"); and. WHEREAS, the City does not desire to allocate City resources and City staff time to the formation and administration of a community facilities district and to the issuance of bonds; and 4164-1781-1506 WHEREAS, the Development Project will promote economic development, the stimulation of economic activity, and the increase of the tax base within the City; and WHEREAS, both the Authority and the City are "local agencies"under the Act; and WHEREAS, the Act permits two or more local agencies to enter into a joint community facilities agreement to exercise any power authorized by the Act; and WHEREAS, the City desires to enter into such an agreement with the Authority, authorizing the Authority to form a community facilities district within its territorial limits to finance public improvements, fees and services required by the SOMO Village Project; and WHEREAS, nothing herein constitutes the City's approval of any applications, entitlements and/or permits, and such, to the extent required in the future, are subject to and contingent upon City Council approval following, to the extent applicable, environmental review in compliance with the California Environmental Quality Act ("CEQA"); and WHEREAS, nothing herein affects, without limitation, requirements for and/or compliance with any and all applicable and/or necessary improvement standards, land use requirements or subdivision requirements relating to the SOMO Village Project or any portion thereof, which obligations are and shall remain independent and subsisting; and WHEREAS, the City Council is fully advised in this matter. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby find, determine, declare and resolve as follows: Section 1. The City hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to municipal affairs of the City and the statements, findings and determinations of the City set forth in the recitals above and in the preambles of the documents approved herein are true and correct and material to the adoption of this resolution. Section 2. This resolution shall constitute full "local approval," under Section 9 of the Joint Powers Agreement, and under the Authority's Local Goals and Policies (see below), for the Authority to undertake and conduct proceedings in accordance herewith and under the Act to form a community facilities district (the "Community Facilities District") with boundaries, including area permitted to be annexed in to the Community Facilities District from time to time, substantially as shown on Exhibit A attached hereto and incorporated by this reference, to authorize a special tax within the Community Facilities District, to designate one or more improvement areas therein, and to issue bonds for the Community Facilities District. Section 3. The Joint Powers Agreement, together with the terms and provisions of this resolution, shall together constitute a joint community facilities agreement between the City and the Authority under the Act. As, without this resolution, the Authority has no power to conduct proceedings under the Act to form the Community Facilities District, adoption by the Commission of the Authority of the Resolution of Intention to form the Community Facilities District under the Act shall constitute acceptance of the terms hereof by the Authority. Resolution 2022-008 2 Section 4. This resolution and the agreement it embodies are determined to be beneficial to the residents of the City, and of the future residents of the area within the Community Facilities District. Section 5. The City has adopted Local Goals and Policies as required by Section 53312.7 of the Act. The City hereby agrees that the Authority may act in lieu of the City under those Local Goals and Policies in forming and administering the Community Facilities District. The Authority will comply strictly with the City's Local Goals and Policies as outlined in Resolution 2014-104, except as modified by the terms of the Development Agreement, in forming and administering the Community Facilities District and in the issuance of bonds. Except as explicitly set forth in the Development Agreement, including, without limitation, Section 4.04 thereof, no waiver or exception to any of those Local. Goals and Policies will be approved without prior written consent of the City. Section 6. Pursuant to the Act and this resolution, the Authority may conduct proceedings under the Act to form the Community Facilities District and to have it authorize the financing of the facilities, fees and services set forth on Exhibit C, attached hereto and incorporated by this reference. All of the facilities, whether to be financed directly or through fees, are facilities that have an expected useful life of five years or longer and are facilities that the City or other local public agencies, as the case may be, are authorized by law to construct, own or operate, or to which they may contribute revenue. The facilities are referred to herein as the "Improvements," and the Improvements to be owned by the City are referred to as the "City Improvements." The fees are referred to as the "Fees," and the Fees paid or to be paid to the City are referred to as the "City Fees." The services are referred to herein as "Services" and the Services to be provided by the City or the Developer on behalf of the City are referred to as the "City Services." Section 7. The City Council certifies to the Commission of the Authority that all of the City Improvements including the improvements to be constructed or acquired with the proceeds of City Fees are necessary to meet increased demands placed upon the City as a result of development occurring or expected to occur within the Community Facilities District. Section 8. The Authority will apply the special tax collections initially as required by any funding and acquisition agreement and the documents under which any bonds are issued; and thereafter, to the extent not provided in the bond documents, may pay its own reasonable administrative costs incurred in the administration of the Community Facilities District. The Authority will remit any special tax revenues remaining after the final retirement of all bonds to the City in the proportions specified in the Authority's proceedings. The City will apply any such special tax revenues it receives for authorized City Improvements or City Fees and its own administrative costs only as permitted by the Act. The City and the Authority acknowledge that nothing in this Resolution prevents the City from recovering its costs associated with supporting the formation of the Community Facilities District and/or the review, permitting, inspection, acquisition audit and acquisition of City Improvements and/or the administration of the City's fee programs through means other than the collection of special taxes. Section 9. The Authority will administer the Community Facilities District, including employing and paying all consultants; annually levying the special tax and all aspects Resolution 2022-008 3 of paying and administering the bonds, and complying with all State and Federal requirements appertaining to the proceedings, including the requirements of the United States Internal Revenue Code. The City will cooperate in a commercially reasonable manner with the Authority in respect to the requirements of the Internal Revenue Code as related to the City Improvements and City Fees, and to the extent information is required of the City to enable the Authority to perform its disclosure and continuing disclosure obligations with respect to the bonds, although the City will not participate in nor be considered to be a participant in the proceedings respecting the Community Facilities District (other than as a party to the agreement embodied by this Resolution) nor will the City be or be considered to be an issuer of the bonds. Section 10. In the event the Authority completes issuance and sale of bonds, and bond proceeds become available to finance the Improvements, the Authority shall establish and maintain a fund to be known as the "City of Rohnert Park SOMO Village Community Facilities District Acquisition and Construction Fund" (the "Acquisition and Construction Fund"). The portion of bond proceeds which is intended to be utilized to finance the Improvements and Fees shall be deposited in the Acquisition and Construction Fund. Section 11. As respects the Authority,the City agrees to fully administer, and to take full governmental responsibility for, the construction or acquisition of the City Improvements and for the administration and expenditure of the City Fees including but not limited to environmental review, approval of plans and specifications, bid requirements, performance and payment bond requirements, insurance requirements, contract and construction administration, staking, inspection, acquisition of necessary property interests in real or personal property, the holding back and administration of retention payments, punch list administration, and the Authority shall have no responsibility in that regard. The City reserves the right, as respects the Developer, to require the Developer to contract with the City to assume any portion or all of this responsibility. As described in Section 8, the City reserves the right to collect its reasonable costs for all activities, including consultant costs and administrative costs, through means available to it. Section 12. The City agrees to indemnify and to hold the Authority, its other members, and its other members' officers, agents and employees (collectively,the "Indemnified Parties") harmless from any and all claims, suits and damages (including costs and reasonable attorneys' fees) arising out of the design, engineering, construction and installation of the City Improvements and the improvements to be financed or acquired with the City Fees. The City reserves the right, as respects the Developer, to require the Developer to assume by contract with the City any portion or all of this responsibility. Section 13. As respects the Authority, the City agrees that once it determines that the City Improvements are constructed according to the approved plans and specifications, and the City and the Developer have put in place their agreed upon arrangements for the funding of maintenance of the City Improvements, the City will accept ownership of the City Improvements, to take maintenance responsibility for the City Improvements. and to indemnify and hold harmless the Indemnified Parties to the extent provided in the preceding paragraph from any and all claims, etc., arising out of the use and maintenance of the City Improvements The City reserves the right, as respects the Developer, to require the Developer by contract with the City to assume any portion or all of this responsibility. Resolution 2022-008 4 Section 14. The City acknowledges the requirement of the Act that if the City Improvements are not completed prior to the adoption, by the Authority Commission, of the Resolution of Formation of the Community Facilities District, the City Improvements must be constructed as if they had been constructed under the direction and supervision, or under the authority of, the City. The City acknowledges that this means all City Improvements must be constructed under contracts that require the payment of prevailing wages as required by Section 1720 and following of the Labor Code of the State of California. The Authority makes no representation that this requirement is the only applicable legal requirement in this regard. The City reserves the right, as respects the Developer, to assign appropriate responsibility for compliance with this paragraph to the Developer. Section 15. After completion of the City Improvements and appropriate arrangements for the maintenance of the City Improvements, or any discrete portion thereof as provided in Section 53313.51 of the Act to the satisfaction of the City, and in conjunction with the City's acceptance thereof, acquisition of the City Improvements shall be undertaken as provided in a separate funding and acquisition agreement that the City shall enter into with the Developer. Section 16. The Authority shall establish and maintain a special fund to be known as the "Rohnert Park SOMO Village Services Fund" (the "Services Fund"). As respects the Authority, the City agrees to fully administer, and to take full governmental responsibility for, the provision of the City Services, and the Authority shall have no responsibility whatsoever in that regard. The Authority shall deposit the portion of the special tax revenues collected in the Community Facilities District for the Services into the Services Fund upon receipt and thereafter shall promptly transfer such amount to the City for the provision of Services. The City reserves the right, as respects the Developer, to require the Developer to contract with the City to assume any portion or all of this responsibility. Section 17. The City accepts responsibility for and shall be responsible for identification of and for compliance with all applicable laws pertaining to the provision of the City Services. The Authority makes no representation as to the applicability or inapplicability of any laws relating to the provision of the City Services. The City agrees to indemnify and to hold the Indemnified Parties harmless from any and all claims, suits and damages (including costs and reasonable attorneys' fees) arising out of the provision of the City Services. The City reserves the right, as respects the Developer, to require the Developer to assume by contract with the City any portion or all of this responsibility. Section 18. The City hereby consents to the formation of the Community Facilities District in accordance with this Resolution and consents to the assumption of jurisdiction by the Authority for the proceedings respecting the Community Facilities District with the understanding that the Authority will hereafter take each and every step required for or suitable for consummation of the proceedings, the levy, collection and enforcement of the special tax, and the issuance, sale, delivery and administration of the bonds, all at no cost to the City and without binding or obligating the City's general fund or taxing authority. Section 19. The terms of the Agreement embodied by this Resolution may be amended by a writing duly authorized, executed and delivered by the City and the Authority, Resolution 2022-008 5 except that no amendment may be made after the issuance of the bonds by-the Authority that would be detrimental to the interests of the bondholders without complying with all of the bondholder consent provisions for the amendment of the bond resolutions, bond indentures or. like instruments governing the issuance, delivery and administration of all outstanding bonds. Section 20. No person or entity, including the Developer, shall be deemed to be a third party beneficiary of this Resolution, and nothing in this Resolution (either express or implied) is intended to confer upon any person or entity other than the Authority and the City (and their respective successors and assigns)any rights,remedies, obligations or liabilities under or by reason of this Resolution. Section 21, This Resolution shall remain in force until all bonds have been retired and the authority to levy the special tax conferred by the Community Facilities District proceedings has ended or is otherwise terminated. • Section 22. The City Council hereby authorizes and directs the City Manager and other appropriate City staff to cooperate with the Authority and its consultants and to do all things reasonably necessary and appropriate to carry out the intent of this Resolution and the Community Facilities District financing, and to execute any and ail certificates and documents in connection with the bond issuance and to execute any and all documents as shall be approved by the City Manager after consultation with the City Attorney and the Authority's bond counsel. Section 23. The City Council hereby approves delivery of a certified copy of this Resolution to the Authority's Bond Counsel, Orrick, Herrington & Sutcliffe LLP. Section 24. This Resolution shall take effect upon its adoption. DULY AND REGULARLY ADOPTED this l lth day of January, 2022. CITY OF ROHNERT PARK ie . war , Mayoi ATTEST: Sylvia L o .Cuevas, City Clerk Exhibit A—Boundary Map Exhibit B —Mello Roos Goals & Policies Exhibit C—Authorized Improvements, Fees & Services GIUDICE OLLINGSWORTki-ADAMS: STAFFORD: ,L..t.4 (LJNAREJ. .ELWABD:. AYES: ( ) NOES: ( ABSENT: ( ) BSTATN: ) Resolution 2022-008 6 lT 3 �z I;" Ill ROHNERT PAR ESPRESSWAY � ::l :i: �-=.=a.......-..i<( :,; � n_ VICINITY MAP N.T.S. -�- GRAPHIC SCALE 500 0 ... � I ....250 500 1000 1 1--•1 ( IN FEET ) 1 inch = 500 ft. AUTHORIZED B OUNDARIES OF CALIFORNIA STATEWIDE COMMUNIT IES DEVELOPMENT AUTHORITY Exhibit A Boundary MapCOMMUNITY FACILITIES DISTRICT FOR SOMO VILLAGE WITHIN CITY OF ROHNERT PARK, COUNTY OF SONOMA STATE OF CALIFORNIA --------..., ��J l�-�JWI"'-----..-CAMINO COLEGIO 046-051-048---L-____J 046-051-049 046-051-049 046-051-04 7 046-051-050 DRIVE 046-051-051 046-051-040 E RAILROAD A VE LEGEND 046-051-045 ASSESSOR'S PARCEL NUMBER ASSESSOR'S PARCEL LOT LINE r I L MAXIMUM BOUNDARY FOR COMMUNITY FACILITIESDISTRICT FOR SOMO VILLAGE GCGGOODWIN CONSUL TING GROUP SHEET 1 OF 1 RESOLUTION NO. 2014 -104 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING THE AMENDED STATEMENT OF LOCAL GOALS AND POLICIES CONCERNING THE USE OF THE MELLO -ROOS COMMUNTIY FACILITIES ACT OF 1982 WHEREAS; pursuant to Section 533312.7 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, on November 28, 2006, the City Council of the City of Rohnert Park approved Resolution Number 2006 -276 adopting its statement of local goals and policies; and WHEREAS, on December 14, 2010, the City Council of the City of Rohnert Park adopted Ordinance Number 832 Approving a Development Agreement with Redwood Equities Inc. for the Southeast Specific Plan Area and this Development Agreement provided for the formation of CFDs to either fund public services and maintenance or to finance the construction of public facilities, or both; and WHEREAS On April 8, 2014, the City Council of the City of Rohnert Park adopted Ordinance Number 878 Approving a Development Agreement with Vast Oak Properties L.P. and the University District LLC for the University District Specific Plan Area and this Development Agreement also provided for the formation of CFDs with a focus on financing the construction of public facilities; and WHEREAS, representatives of the Southeast Specific Plan Area have requested that the City consider the formation of a CFD to fund the provision of public services and representatives of the University District Specific Plan Area have requested that the City consider the formation of a CFD to finance the construction of public facilities; and WHEREAS, the City's existing local goals and policies focus on financing the construction of the public facilities not on funding services as requested by the proponents of the Southeast Specific Plan Area; and WHEREAS, to date, the City has not formed any CFDs under these local goals and policies. The goals and policies may be amended or supplemented by the City Council of the City of Rohnert Park at any time and approval does not obligate the City Council in any way to create Community Facilities Districts. 1 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby approve and adopt the City of Rohnert Park Amended Statement of Local Goals and Policies Concerning the Use of the Mello -Roos Community Facilities Act of 1982, as outlined in Exhibit A, which is attached hereto and incorporated by this reference, which shall supersede the statement adopted by Resolution Number 2006 -276. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute documents pertaining to the same for and on behalf of the City of Rohnert Park. DULY AND REGULARLY ADOPTED this 26th day of August, 2014. CITY OF ROHNERT PARK ATTEST: x / 1 ..L.. 1 DA Anne M. Buergler, City Clerk Attachment: Exhibit A- Amended Statement Joseph Callinan, Mayor BELFORTE: it MACKENZIE: C- -ki STAFFORD: ''-v- \t AHANOTU: CALLINAN: i' f,5 AYES: ( ) NOES: (0 ) ABSENT: ( 0 ) ABSTAIN: ( ) 2014 -104 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 the City 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 for certain public services, in refunding existing debt on land within the City, and in providing adequate public infrastructure improvements for the City of Rohnert Park (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. Eligible Services and Public Facilities It is the policy of the City to consider the formation of a CFD only when the development proposed within the CFD is consistent with the City's general plan and the specific plan for the project area and has received any required zoning or specific plan approvals. It is the policy of the City to permit the funding of all services allowed by the Act including and without limitation, police and fire protection, ambulance and paramedic services, street sweeping, traffic signal maintenance, maintenance of City -owned parks, parkways and open spaces, lighting, flood and storm protection services and the operation of storm drainage systems. It is that policy of the City that, except where the CFD special tax is approved by a vote of the registered voters of the CFD (as opposed to the owners of land within the CFD), all of the services to be funded must be in addition to those provided within the boundaries of the CFD before the CFD is created, and shall not supplant services already available within that territory when the CFD is created. It is the policy of the City that to be eligible for funding or financing through a CFD, public facilities or improvements must be owned by a public agency or public utility, and must have a useful life of at least five (5) years. Rohnert Park Goals &Policies 08_12_14 1 2. Priority for Funding Services and Financing Various Kinds of Public Facilities Through the Use of the Act. It is the policy of the City to give priority to the funding of service or financing of facilities, through the use of the Act, in the following order: a) Funding of services allowed under the Act; b) Refinancing of pre - existing assessment liens and refunding of any bonds secured by said liens as these may affect land within the CFD; c) 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 d) Financing of the design, construction and /or acquisition of other public infrastructure improvements directly benefiting the City, and to the extent lawfully permitted under the Act, which may include, but are not limited to, in -tract 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 ofJoint 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 and /or administrative expenses. Such joint financing assistance shall be considered when it does interfere with the financing of public infrastructure improvements directly benefiting the City. 3. Credit Quality Required of Bond Issues, Including Criteria for Evaluating the Credit Quality. It is the policy of the City that, prior to the issuance of any bonds by or on behalf of the CFD, the following conditions shall be met: a) Total maximum annual special tax revenue generated from taxable property in the CFD, taking into account any potential changes in land use or development density or rate, and less all amounts required for eligible services and administrative expenses, must be reasonably expected to equal at least one hundred ten percent (110 %) of the gross annual debt service on the bonds in each year that said bonds will remain outstanding; b) The rate and method of apportionment of the special tax shall include a provision for a backup tax to protect against any changes in development that would result in insufficient special tax revenues to meet the debt service requirements of the CFD; c) All backup taxes shall be structured in such a manner that it shall not violate any provisions of the Act regarding cross - collateralization limitations for residential properties; d) 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 adequately funded reserve fund securing such bonds in accordance with the regulations of the Internal Revenue Service (IRS); e) The term of the CFD Bonds issued for facilities shall not exceed thirty -one (31) years. 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 annual cost of RohnertPark Goals &Policies 08_12_14 2 services and /or 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). The City will examine carefully the primary sources of payment of the Bonds as well as the provider of any required credit facility and the form that the credit facility will take. The rating of the provider, as well as the provider's capitalization, are of principal concern, and a reduction in either during the term of the credit facility to a level unacceptable to the City may require that an alternate credit facility be secured from an acceptable provider. The City reserves the right, in its sole discretion, to determine the acceptability of both the credit facility and its provider. 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. 4. Steps to Ensure that Prospective Property Purchasers Are Fully Informed About Their Taxpaying Obligations. It is the policy of the City that the CFD Proponents provide actual and conspicuous notice to all potential homeowners, taxpayers residing within, or taxpayers owning property within, the boundaries of a CFD. In order to comply with this policy, all notices will include the following: 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 petitions requesting formation of the CFD are submitted; and 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 funding services or issuing any CFD bonds until the form of the aforementioned notice is approved. It is further the policy of the City that: 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 Manager or his /her designee; 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. 5. Criteria for Evaluating the Equity of Tax Allocation Formulas, and Concerning Desirable and Maximum Amounts of Special Tax. It is the policy 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 RohnertParkGoals &Policies 08_12_14 3 and reasonable share of his or her projected benefit from, and /or burden upon, the services provided and the facilities to be constructed and /or maintained or of any refunding of existing debt within the CFD by such CFD. The rate and method of apportionment of the special tax must be both reasonable and equitable in apportioning the costs of the services and public facilities to be financed to each of the parcels within the boundaries of the proposed CFD. The rate and method of apportionment of the special tax is to provide for the administrative expenses of the proposed CFD, including, but not limited to, those expenses necessary for the enrollment and collection of the special tax and bond administration. All property not otherwise exempted by the Act from taxation shall be subject to the special tax. Except that the rate and method of apportionment may provide for exemptions to be extended to parcels that are to be dedicated at a future date to public entities, held by a home owner's association, or designated as open space. The maximum annual special tax, together with ad valorem property taxes, special assessments or taxes for an overlapping financing district, or any other charges, taxes, or fees payable from and secured by the property, including potential charges, taxes, or fees relating to authorized but unissued debt of public entities other than the City, in relation to the expected assessed value of each parcel upon completion of the private improvements to the parcel is of great importance to the City in evaluating the proposed financing. It is the policy of the City to limit the "overlapping" tax burden represented by the maximum special taxes on residential owner - occupied property, 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, to 1.75% of the parcel's expected assessed value or estimated sale price for the parcel and the residential or commercial unit to be constructed upon completion of the improvements. In order to comply with this policy 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 at least 30 days prior to the anticipated Resolution of Intention to form the district, as defined in the Act, the City, at Proponent's cost, shall provide the Proponent with the estimated values, as determined by a qualified price point study consultant, to be used in making the final determination of the maximum special tax. 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 for facilities (and remove the lien thereof) as to any taxable parcel by prepayment pursuant to Section 53344 of the Act. The City will allow an annual escalation factor for services but it is the policy of the City to not permit the escalation of maximum special taxes for facilities. 6. Definitions, Standards, and Assumptions for Appraisals Required by Section 53345.8. It is the policy of the City to conform, as nearly as practicable, to the California Debt and hlvestment 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 policy set forth herein. Rohnert Park Goals &Policies 08_12_14 4 7. 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 ofthe rate and method of apportionment and levy ofthe special tax; c) Review and approval of the plans and specifications for construction of the improvements; d) Determination ofthe value ofthe 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 provisions of the Reimbursement or Funding and Acquisition Agreement described below. However, in the 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 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. 8. Issuance of Bonds It is the policy 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 CFD bonds shall be determined by the City, in consultation with the Developer, and the City's bond counsel, financial advisors and /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 08_q_14 5 RESOLUTION NO. 2006-2m 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 BREEZE: AYE FLORES: AYE MACKENZIE: AYE VIAAK•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 Me110- 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 adequately funded 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 taxpayers owning . property within, the 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 petitions requesting formation of the CFD are submitted; and 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: Rohnert Park Goals & Policies 10_27_6 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 CommunityDevelopmentDirector; 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 ofspecial 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. Rohnert 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 provisions of the Reimbursement Agreement described below. However, in the 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 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 1027 06 5 EXHIBIT C AUTHORIZED IMPROVEMENTS, FEES AND SERVICES Facilities that may be financed by and through the proposed Community Facilities District include publicly-owned infrastructure with eligible costs including but not limited to: acquisition of land and easements; design; construction; project management and administration; permit and agency fees, resource mitigation fees including acquisition of land and easements, and contingencies. Roadway and Regional Transportation Improvements Camino Colegio Frontage Improvements – project limits to Bodway Parkway East Cotati/Camino Colegio Intersection Improvements Bodway Parkway Frontage Improvements – Camino Colegio to Valley House Petaluma Hill Road/Railroad Avenue Intersection Improvements Valley House Drive In-Tract Improvements Bodway/East Cotati Intersection Improvements Bodway/Valley House Intersection Improvements Snyder/East Cotati Intersection Improvements Bodway Parkway Construction – Valley House to Railroad Petaluma Hill Road/Valley House Intersection Improvements Petaluma Hill Road/East Cotati Intersection Improvements La Salle/East Cotati Intersection Improvements Water System Improvements: Water Tank 9 Improvements Valley House Drive Transmission Main Improvements Storm Drain Improvements: Detention Basin north of Valley House Detention Basin south of Valley House Sewer Improvements: Pump Station 3 – Phase 1 Improvements Pump Station 3 – Future Phase Improvements Parks, Trails, Landscaping, and Open Space Improvements: SMART Trail Improvements – north project limit to Railroad Avenue F Park Improvements B Park Improvements G Park and Wetlands Observatory Improvements C Park Improvements H Park Improvements E Park Improvements I Park Improvements Other Onsites: Land Development Phase 1NA – Public Utilities & Public Street Improvements for One Planet Place, Manchester, Mitchell, Waterside, Mainsail Land Development Phase 1S – Public Utilities & Public Street Improvements of B Street, C Street, 3rd Street, D Street, Manchester, Mainsail Land Development Phase 1NB – Public Utilities & Public Street Improvements for Mainsail, Wisdom, Valley House Land Development Phase 2S – Public Utilities & Public Street Improvements for B Street, D Street, 4th Street Land Development Phase 2N – Public Utilities & Public Street Improvements for One Planet Place, A Street, B Street Land Development Phase 3S – Public Utilities & Public Street Improvements for Mainsail, B Street, 4th Street, 5th Street Land Development Phase 3N – Public Utilities & Public Street Improvements for Improvements for Mitchell, Earth, 1st Street Other Public Improvements: Fire Station 4 Improvements (including Developer’s Fire Station Contribution) Type of Services to Be Financed by the Proposed CFD The services authorized to be funded by the Community Facilities District and paid by the special taxes levied within the Community Facilities District (the “Services”) are described below. For purposes of the Community Facilities District, the Services shall incorporate and have the meaning given to the term “services” in section 53313 of the Mello-Roos Community Facilities Act of 1982. Maintenance and services for the SOMO Village Planned Development including without limitation: • Public Safety services • Stormwater treatment and program management services • Roadway maintenance, • Sidewalk, curb and gutter repair • Streetlight power, maintenance and operations, • Landscaping, park, parkway, median and open space maintenance, including erosion prevention, The cost of the Services shall include all related administrative costs and expenses, necessary utility (water and electricity) costs, and related reserves for replacement of vehicles, equipment and facilities.