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HomeMy WebLinkAbout20 - CIOSA ResolutionsCouncil Agenda Item #r 20 CITY OF NEWPORT BEACH DEPARTMENT OF FINANCE Interdepartmental Memorandum September 29,1995 BY THE CITY COUNCIL CITY OF NEWPORT BEACH TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dennis Danner, Director of Finance SUBJECT: CIOSA RESOLUTIONS DISCUSSION: The City of Newport Beach and The Irvine Company entered into the Circulation Improvement and Open Space Agreement (CIOSA) on June 30, 1993. This agreement allows for the petition of the Council to form a Special Improvement District for the sale of debt to finance public improvements including the construction of various street improvements, including access roads, sidewalks, street widening, signal relocations, median rework and landscaping, and storm drain facilities. This debt will be serviced by assessments on the improved property. At the Council meeting of June 12, 1995, the City Council approved the Special Improvement District Report, a Resolution of Formation of the City of Newport Beach Special Improvement District No. 95-1 (CIOSA), a Resolution Determining the Necessity to Incur Bonded Indebtedness, and a Resolution Calling for a Special Election. At the Council meeting of June 26, 1995 the City Council approved the Official Ballot, a Resolution Declaring the Results of the Special Election, an Ordinance Levying Special Taxes, and a Notice of Special Tax Lien. Subsequently, the Irvine Company requested permission to alter the Rate and Method of the apportionment of the special tax. Accordingly, on August 28, 1995, the City Council adopted a Resolution considering this alteration and set October 9, 1995, as the public hearing date to take action on the request. Recently it was discovered that a clerical error allowed the inclusion of an extraneous parcel in the district. In order to proceed with the CIOSA financing, the City Council should take the following actions: Proceedings to Exclude Extraneous Parcel, a. Resolution Ordering Correction of Clerical Errors; b. First Amendment to Notice of Special Tax Lien; and Amended boundary Map Instructions. CIOSA FINANCING DISTRICT Page Two 2. Proceedings to Alter Rate and Method of Apportionment a. Order of Proceedings; b. ResolutionCalling Special Election; c. Official Ballot and Ballot Envelope; d. Canvass and Statement of Results of Election e. Resolution of Change f. Second Amendment to Notice of Special Tax Lien; and g. Ordinance Levying Special Taxes Also to be approved is an Agreement for Bond Counsel Services between the City and Jones Hall Hill & White, A Professional Law corporation. At the Special City Council meeting of October 19, 1995, the City Council will be asked to approve: 1. Proceedings to Issue Bonds a. Resolution Authorizing Issuance; and b. Continuing Disclosure Certificate The Resolution Authorizing Issuance approves and authorizes the Fiscal Agent Agreement, Preliminary Official Statement, Purchase Contract, and Protocol Agreement. RECOMMENDATION: It is respectfully recommended that the City Council, at the meeting of October 9, 1995, approve the documents included in the Proceedings to Exclude Extraneous Parcel, and the Proceedings to Alter Rate and Method of Apportionment, and approve an Agreement for Bond Counsel Services between the City and Jones Hall Hill & White, a Professional Law corporation. It is further recommended that the City Council consider the Proceedings to Issue Bonds at the Special Council Meeting of October 19, 1995. 10/03/95 8:57 AM CIOSA.DOC :T 24005-02 JHHW:GH:bct 9/26/95 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ORDERING THE CORRECTION OF CLERICAL ERRORS MADE WITH RESPECT TO THE CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1(CIOSA) WHEREAS, on May 8, 1995 the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Newport Beach Declaring Intention to Establish a Special Improvement District and to Authorize the Levy of Special Taxes" (the "Resolution of Intention") stating its intention to establish the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"), pursuant to the City of Newport Beach Special Improvement District Financing Code (the "Code"), to finance certain facilities (the "Facilities"); WHEREAS, pursuant to the Resolution of Intention, the City Clerk was directed to record, or cause to be recorded, a map of the boundaries of the District (the "Boundary Map") in the office of the County Recorder within fifteen days of the date of adoption of the Resolution of Intention; WHEREAS, notice was published as required by the Code relative to the intention of the City Council to form the District and to provide for the Facilities; WHEREAS, the City Council has held a noticed public hearing as required by the Code relative to the determination to proceed with the formation of the District and the rate and method of apportionment of the special tax to be levied within the District to finance a portion of the costs of the Facilities; WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the District and the levy of said special taxes were heard, substantial evidence was presented and considered by the City Council and a full and fair hearing was held; WHEREAS, on June 12, 1995, the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Newport Beach of Formation of the City of Newport Beach Special Improvement District No. 95-1 (CIOSA), Authorizing the Levy of a Special Tax Within the District and Preliminarily Establishing an Appropriations Limit for the District", which resolution established the District, described the boundaries of the District by reference to and incorporation of the recorded Boundary Map and authorized the levy of a special tax within the District; WHEREAS, on June 12, 1995, the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Newport Beach Calling Special Election for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA)", which resolution called an election within the District on the proposition of incurring indebtedness, levying a special tax and establishing an appropriations limit within the District; WHEREAS, an election was held within the District in which the eligible landowner electors approved said propositions by more than the two-thirds vote required by the Code; WHEREAS, on June 26, 1995, the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Newport Beach Declaring Results of Special Election and Directing Recording of Special Tax Lien' (the "Resolution Directing Recording"), which resolution, among other things, directed the City Clerk to execute and cause to be recorded in the office of the County Recorder of the County of Orange a notice of special tax lien in the form required by the Code, said recording to occur no later than fifteen days following adoption by the City Council of the Resolution Directing Recording; WHEREAS, pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 320 of the Code, a notice of special tax lien with respect to the District (the 'Notice of Special Tax Lien") was recorded in the Office of the County Recorder of the County of Orange; WHEREAS, the City Council has been informed that, due to a clerical error, an extraneous parcel of property, identified as Orange County Assessor's Parcel No. 442-271-12 (the "Extraneous Parcel"), was inadvertently included in the Boundary Map and in the Notice of Special Tax Lien; WHEREAS, the City Council desires to cause the Boundary Map and the Notice of Special Tax Lien to be amended so as to exclude the Extraneous Parcel therefrom; and WHEREAS, an amended boundary map of the District (the "Amended Map"), which excludes from the District the Extraneous Parcel, is on file with the City Clerk; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: Section 1. The foregoing recitals are true and correct. Section 2. The City Council hereby finds and determines that the Extraneous Parcel was not intended to be a part of the proceedings for the District and was inadvertently included therein and in the Boundary Map and Notice of Special Tax Lien as a result of a clerical error. Section 3. The Amended Map is hereby approved and the City Clerk is hereby directed to record, or cause to be recorded, the Amended Map in the office of the County Recorder of the County of Orange. Section 4. In accordance with Section 3117.5 of the California Streets and Highways Code, the City Clerk is hereby directed to record, or cause to be recorded, in the office of the County Recorder of the County of Orange, a first amendment to the Notice of Special Tax Lien, substantially in the form attached hereto as Exhibit A. - 2 - - Section 5. Except for such modifications as are necessary in order to exclude the Extraneous Parcel, all prior proceedings taken by the City Council in connection with the District shall remain in full force and effect. Section 6. This Resolution shall take effect immediately upon its adoption. APPROVED and ADOPTED by the City Council of the City of Newport Beach on October 9, 1995. John W. Hedges, Mayor ATTEST: Wanda E. Raggio, City Clerk EXHIBIT A FIRST AMENDMENT TO NOTICE OF SPECIAL TAX LIEN CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 320 of the City of Newport Beach Special Improvement District Financing Code (the "Code"), a Notice of Special Tax Lien with respect to the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District") was recorded in the Office of the County Recorder of the County of Orange on July _, 1995, as Instrument No. Due to a clerical error, a parcel of property was inadvertently included in the boundary map for the District and in said Notice of Special Tax Lien. In order to rectify said error, an amended boundary map for the District, which excludes such extraneous parcel, has been prepared and recorded. Pursuant to the requirements of Section 3117.5 of the California Streets and Highways Code and Section 412 of the Code, the undersigned City Clerk of the City of Newport Beach, County of Orange, State of California, hereby gives notice that the parcel of real property described in Schedule I attached hereto and hereby made a part hereof is excluded from the District. The name of the owner and the assessor's tax parcel number of the real property excluded from the District is as set forth in Schedule I hereto. Reference is made to the amended boundary map of the District recorded at Book of Maps of Assessment .and Community Facilities Districts at Pages _ through --, in the office of the County Recorder for the County of Orange, State of California, which map is now the final boundary map of the District. Dated: October _,1995 A-1 Wanda E. Raggio, City Clerk SCHEDULE I CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) PARCEL BEING EXCLUDED FROM DISTRICT Name of Property Owner Assessor's Parcel No. 442-271-12 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss I, Wanda E. Raggio, City Clerk of the City of Newport Beach, California hereby certify that the foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on October 9, 1995, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 3300 Newport Boulevard, Newport Beach, California, a location freely accessible to members of the public, and a brief general description of said Resolution appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct copy of the original Resolution adopted at said meeting and entered in said minutes; and that said Resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: ,1995 Wanda E. Raggio, City Clerk RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 FIRST AMENDMENT TO NOTICE OF SPECIAL TAX LIEN CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 320 of the City of Newport Beach Special Improvement District Financing Code (the "Code"), a Notice of Special Tax Lien with respect to the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District") was recorded in the Office of the County Recorder of the County of Orange on July ___, 1995, as Instrument No. Due to a clerical error, a parcel of property was inadvertently included in the boundary map for the District and in said Notice of Special Tax Lien. In order to rectify said error, an amended boundary map for the District, which excludes such extraneous parcel, has been prepared and recorded. Pursuant to the requirements of Section 3117.5 of the California Streets and Highways Code and Section 412 of the Code, the undersigned City Clerk of the City of Newport Beach, County of Orange, State of California, hereby gives notice that the parcel of real property described in Schedule I attached hereto and hereby made a part hereof is excluded from the District. The name of the owner and the assessor's tax parcel number of the real property excluded from the District is as set forth in Schedule I hereto. Reference is made to the amended boundary map of the District recorded at Book _ of Maps of Assessment and Community Facilities Districts at Pages _ through . in the office of the County Recorder for the County of Orange, State of California, which map is now the final boundary map of the District. Dated: October _,1995 Wanda E. Raggio, City Clerk N SCHEDULE I CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) PARCEL BEING EXCLUDED FROM DISTRICT Name of Property Owner Assessor's Parcel No. 442-271-12 I-1 \0 24005-02 JHHW:GH:bct 9/25/95 CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) AMENDED BOUNDARY MAP INSTRUCTIONS The following are basic instructions for preparing the Amended Boundary Map for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"). Since these documents will be recorded, be sure to check with the County Recorder about any local requirements before completing the map. The amended boundary map must be legibly drawn, printed or reproduced by a process that provides a permanent record. Each sheet must be 18" by 26" in size, must clearly show the sheet number of the sheet, the total number of sheets comprising the map and its relation to each adjoining sheet (i.e., match lines) and must have a border 1" in width on all sides. An appropriate legend showing the new boundary line of the territory included in the District (which is the same territory as in the original map, less assessor's parcel number 442-271-12) must appear on the face of the map. The map should be labeled as follows: First Amended Map of City of Newport Beach Special Improvement District No. 95-1 (CIOSA), City of Newport Beach, County of Orange, State of California. If the map consists of more than one page, the same title must appear on each page. Near the label, the following must appear: Reference is hereby made to that certain map entitled "Proposed Boundaries of the City of Newport Beach Special Improvement District No. 95-1 (CIOSA), City of Newport Beach, County of Orange, State of California" filed the _ day of 1995, at the hour of o'clock a.m. in Book 68 at pages 26 through 35 of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of Orange, State of California, which this First Amended Map supersedes. The map must have the following certificates on the first page: Filed in the office of the City Clerk of the City of Newport Beach this _ day of .1995. City Clerk 2. I hereby certify that the within map showing the revised boundaries of the City of Newport Beach Special Improvement District No. 95-1 (CIOSA), City of Newport Beach, County of Orange, State of California, was approved by the City Council of the City of Newport Beach, at a meeting thereof, held on the 9th day of October, 1995, by its Resolution No. _. City Clerk 3. Filed this — day of .1995, at the hour of o'clock _.m., in Book of Maps of Assessment and Community Facilities Districts at Pages — through in the office of the County Recorder in the County of Orange, State of California. County Recorder, County of Orange -2- v�--- 24005-02 JHHW:GH CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) ORDER OF PROCEEDINGS FOR HEARING TO ALTER RATE AND METHOD OF APPORTIONMENT OCTOBER 9,1995 1. The Mayor makes the following opening remarks: 9/26/95 "This is the time and place for the public hearings in this Council's proceedings for alteration of the rate and method of apportionment of special taxes for City of Newport Beach Special Improvement District No. 95-1 (CIOSA). The hearings are to inquire into the proposed alteration of the rate and method of apportionment. "Before I formally open the hearings, are there any property owners or persons registered to vote in the District who wish to file written protests? If so, they must be filed with the City Clerk now. [Pause to see if there are any protests.] "The hearings are now officially opened. To have orderly hearings, we will first have presentations by staff and the consultants about the proposed alteration of the rate and method of apportionment of special taxes for the District. After that, we will receive comments and questions and any oral protests from any interested persons. When all comments have been received the hearings will be closed." 2. Staff and consultants make presentations. 3. Time for comments, questions and protests from audience. 4. Close hearings. 5. The City Council may then ask questions and discuss the proposed alteration of the rate and method of apportionment of special taxes for the District. 6. When discussion is through, the City Council considers and adopts A Resolution of the City Council of the City of Newport Beach Calling Special Election Regarding Alterations to the Rate and Method of Apportionment of Special Taxes for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA). 7. The Mayor then announces: "At this time, I ask the City Clerk to open the ballots and announce the results of the election." \ �D r1 [Pause for opening of ballots.] 8. The City Clerk opens the ballots and announces the results of the election. The City Clerk then completes one copy of the Canvass and Statement of Result of Election. 9. The Mayor then announces: "The results of the election being unanimously in favor of the alteration of the rate and method of apportionment of special taxes for the District, we may now proceed with the final actions for the District." 10. The City Council considers and takes the following actions: a. Adoption of A Resolution of the City Council of the City of Newport Beach of Change Determining that the Alterations to the Rate and Method of Apportionment of Special Tax Are Lawfully Authorized and Directing Recording of Amendment to Notice of Special Tax Lien b. First reading of Ordinance of the City of Newport Beach Levying Special Taxes within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) End of Item. -2 Ly RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CALLING SPECIAL ELECTION REGARDING ALTERATIONS TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR THE CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1(CIOSA) WHEREAS, in its proceedings for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"), the City Council, on June 12, 1995, adopted a resolution entitled "A Resolution of the City Council of the City of Newport Beach of Formation of the City of Newport Beach Special Improvement District No. 95-1 (CIOSA), Authorizing the Levy of a Special Tax Within the District and Preliminarily Establishing an Appropriations Limit for the District" (the "Resolution of Formation'), which resolution established the District and authorized the levy of a special tax within the District; WHEREAS, on August 28, 1995, the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Newport Beach of Consideration To Alter the Rate And Method of Apportionment of an Existing Special Tax" (the "Resolution of Consideration"), proposing to alter the rate and method of apportionment of the special tax to be levied within the District pursuant to the City of Newport Beach Special Improvement District Financing Code (the "Code"); WHEREAS, the Resolution of Consideration, incorporating the proposed alterations to the rate and method of apportionment of the special tax to be levied within the District, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; WHEREAS, on this date, the City Council held a noticed public hearing as required by the Code and the Resolution of Consideration relative to the proposed alterations to the rate and method of apportionment of the special tax to be levied within the District; WHEREAS, at said hearing all interested persons desiring to be heard on all matters pertaining to the proposed alterations to the rate and method of apportionment of the special tax to be levied within the District were heard and a full and fair hearing was held; WHEREAS, at said hearing evidence was presented to the City Council on said matters before it and the City Council at the conclusion of said hearing is fully advised in the premises; WHEREAS, written protests with respect to the proposed alterations to the rate and method of apportionment of the special tax to be levied within the District have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the District or property owners of one-half (1/2) or more of the area of land within the District and not exempt from the special tax; and WHEREAS, the proposition of the alterations to the rate and method of apportionment of the special tax to be levied within the District shall be submitted to the qualified electors of the District as required by the Code; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: Section 1. The foregoing recitals are true and correct. Section 2. The proposed alterations to the rate and method of apportionment of the special tax to be levied within the District have not been precluded by majority protest pursuant to Section 411 of the Code. Section 3. All prior proceedings taken by the City Council in connection with the alterations to the rate and method of apportionment of the special tax to be levied within the District have been duly considered and are hereby found and determined to be valid and in conformity with the requirements of the Code. Section 4. The rate and method of apportionment of the special tax to be levied within the District is hereby altered from that specified in the Resolution of Formation and shall be as specified in the Amended and Restated Rate and Method of Apportionment for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) set forth in Exhibit A attached hereto and hereby made a part hereof. The City Council hereby expressly finds and determines that said rate and method, as altered, will not interfere with the timely repayment of any indebtedness incurred with respect to the District. Section 5. Pursuant to Section 412 of the Code, the issue of the alterations to the rate and method of apportionment of the special tax to be levied within the District shall be submitted to the qualified electors of the District at an election called therefor as provided below. Section 6. The proposition to alter the rate and method of apportionment of the special tax to be levied within the District shall be submitted to the qualified electors of the District in a ballot measure, the form of which is attached hereto as Exhibit B and by this reference incorporated herein. Said form of ballot is hereby approved. Section 7. The City Council hereby finds that fewer than 12 persons have been registered to vote within the territory of the District for each of the 90 days preceding the close of the public hearings heretofore conducted and concluded by the City Council for the purposes of these proceedings. Accordingly, and pursuant to Section 316 of the Code, the City Council finds that for purposes of these proceedings the qualified electors are the landowners within the District and that the vote shall be by said landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the District as of the close of said public hearings. Section 8. The City Council hereby calls a special election to consider the measure described in Section 6 hereof, which election shall be held in the City Council Chambers at 7:00 p.m. on October 9, 1995. The City Clerk is hereby designated as the official to conduct said election. The City Clerk, as such election official, shall be provided with this Resolution, a certified map of the boundaries of the District and a sufficient description to allow the City Clerk to determine the boundaries of the District within three business days after the adoption of this Resolution. The voted ballots shall be returned to the City Clerk not later than 8:00 p.m. on October 9, 1995; provided, however, that, notwithstanding the foregoing, when all of the qualified voters have voted, the election shall be closed and canvassed. Section 9. Pursuant to Section 317 of the Code, the election shall be conducted by mail or hand -delivered ballot pursuant to Section 1340 of the California Elections Code. The City Council hereby finds that paragraphs (a), (b), (c) (1) and (c)(3) of said Section 1340 are applicable to this special election. Section 10. The City Clerk shall cause to be delivered to each of the qualified electors of the District a ballot in the form set forth in Exhibit B hereto. Each ballot indicates the number of votes to be voted by the respective landowner to which it pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot shall be enclosed with the ballot, shall have the return postage prepaid, and shall contain the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 317 of the Code. Section 11. The City Clerk shall accept the ballots of the qualified electors in her office or in the City Council Chambers to and including 8:00 p.m. on October 9, 1995, whether said ballots be personally delivered or received by mail. The City Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors. Section 12. The City Council hereby further finds that to the extent that the provisions of Section 316 of the Code require a minimum of 90 days following the adoption of this Resolution to elapse before said special election, such provisions are for the protection of the qualified elector of the District. There is on file with the City Clerk a written petition executed by the qualified elector of the District requesting a shortening of the time for said special election to expedite the completion of the proceedings for the alterations to the rate and method of apportionment of the special tax to be levied in the District, and waiving any requirement for analysis and arguments in connection with the election. Accordingly, the City Council finds and determines that said qualified elector has been fully apprised of and has agreed to the shortened time for the election and waiver of analysis and arguments, and has thereby been fully protected in these proceedings. The City Council also finds and determines that the City Clerk has concurred in the shortened time for the election. Section 13. This Resolution shall take effect immediately upon its adoption. APPROVED and ADOPTED by the City Council of the City of Newport Beach on j October 9, 1995. John W. Hedges, Mayor ATTEST: Wanda E. Raggio, City Clerk EXHIBIT A AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR CITY OF NTWPORT BEACH SPECIAL IlVIPROVEMY-NT DISTRICT NO. 95-1 (CIOSA) A Special Tax (the "Special Tax') shall be levied and collected in Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "CIOSA District") each Fiscal Year in an amount determined by the City Council of the City of Newport Beach, or its designee, as described below. Commencing in Fiscal Year 1995-96 all of the property within the CIOSA District shall be subject to the Special Tax for the purposes, to the extent and in the manner herein provided. A. Definitions The terms hereinafter set forth have the following meanings: "Administrative Expenses" means any reasonably necessary or appropriate expenses incurred by the City in the administration of the CIOSA District. 'Advance Amount" means the amount of the Advance as defined in the CIOSA Agreement. "Assessor's Parcel" means a lot or parcel with an assigned Assessor's Parcel number shown in an Assessor's Parcel Map. "Assessor's Parcel Map" means an official map of the County Assessor of the County of Orange designating parcels by Assessor's Parcel numbers. hereto. 'Bayview Landing" means that portion of the CIOSA District described -in Exhibit A "Block 800" means that portion of the CIOSA District described in Exhibit A hereto. "Bond Year' means, with respect to each issue of Bonds, the period which commences on the date on which such Bonds are issued and, subsequent to such issuance, on each September 2, and ends on the following September 1. "Bonds" means bonds, notes or other evidences of indebtedness issued by or on behalf of the CIOSA District pursuant to the Code which are payable from Special Taxes. "CIOSA Agreement" means the Circulation Improvement and Open Space Agreement dated June 30, 1993 by and between the City and The Irvine Company as the same may be amended from time to time. "CIOSA Agreement Amount" means the sum of (a) the Fair Share Fees Amount, (b) the Frontage Improvements Amount and (c) the Advance Amount. \ cl "CIOSA District" means Newport Beach Special Improvement District No. 95-1 (CIOSA) as formed by the City pursuant to the Code and as it may be amended from time to time. 'CIOSA District Improvement Fund" means the fund established and maintained by or on behalf of the City separate and apart from its other funds and accounts into which money is to be deposited and from which money is to be expended as provided herein and as may be provided in an agreement by and between the City and The Irvine Company. "CIOSA District Improvement Fund Requirement" means, as of any date of calculation, the CIOSA Agreement Amount as of such date, less the totalmouefrom sitedthe i le a CIOSA nds, District Improvement Fund on or before such date from (a) proceeds (b) Special Taxes, (c) the prepayment of Special Taxes, (d) repayments from the City pursuant to Section 3.7 of the CIOSA Agreement and (e) earnings derived from the investment of amounts on deposit in the CIOSA District Improvement Fund. "City" means the City of Newport Beach. "City Council" means the City Council of the City of Newport Beach, acting as the legislative body of the CIOSA District, or its designee. 'City Engineer" means the City Engineer of the City or such other person or firm as may from time to time be authorized and directed by the City Council to undertake the duties of the City Engineer hereunder. hereto. 'Code' means the City of Newport Beach Special Improvement District Financing Code. "Corporate Plaza" means that portion of the CIOSA District described in Exhibit A "Corporate Plaza West" means that portion of the CIOSA District described in Exhibit A hereto. "Debt Service Requirement" means for each Fiscal Year the sum of (a) one hundred percent (100%) of the principal of and interest on Bonds coming due in the Bond Year which ends in the next subsequent Fiscal Year, except to the extent such principal or interest is expected to be paid from proceeds from the sale of Bonds or other amounts then available in the applicable debt service fund for such purpose, (b) the product of the amount described in clause (a) times the larger of (i) the rate of delinquency in the payment of the Special Tax during the Fiscal Year immediately preceding the Fiscal Year for which the Debt Service Requirement is being determined or (ii) ten percent (10%), (c) the sum of all deposits then required to be made into any reserve fund established with respect to any Bonds, and (d) the reasonably estimated Administrative Expenses for the Bond Year referred to in clause (a). "Developed Property" means for any Fiscal Year all Taxable Property within a Zone in which is located an Assessor's Parcel for which a building permit (other than a building permit for a structure in a model home complex) was issued prior to May I of the preceding Fiscal Year. "Fair Share Fees Amount" means the total amount of the Fair Share Fees as defined in the CIOSA Agreement. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Freeway Reservation' means that portion of the CIOSA District described in Exhibit A hereto. "Frontage Improvements Amount' means the total cost of the Frontage Improvements as defined in the CIOSA Agreement. "Initial Final Subdivision Map' means for each Zone the first final subdivision map permitting the sale of lots for single family residential uses within the Zone. "Maximum Special Tax" means the highest Special Tax, determined in accordance with Sections C and H, that can be levied by the City Council on an Assessor's Parcel in any Fiscal Year. "Newport Village - PCH/MacArthur" means that portion of the CIOSA District described in Exhibit A hereto. "Newporter North" means that portion of the CIOSA District described in Exhibit A hereto. "Parcel Area" means the square footage of an Assessor's Parcel determined by the City Engineer from the subdivision map or parcel map creating such Assessor's Parcel. 'Property Owner Association Property' means any Assessor's Parcel which is owned by a property owner association or which the City Engineer determines from the subdivision map or parcel map creating such Assessor's Parcel is intended to be so owned. "Proportionately" means, with respect to Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels and, with respect to Undeveloped Property, means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels. "Public Property" means any property within the boundaries of the CIOSA District owned by or dedicated to the federal government, the State of California, the City or any other public agency, provided that any leasehold or other possessory interest in such property (which leasehold or other possessory interest is not owned by a public agency) shall not be considered Public Property. 'San Diego Creek" means that portion of the CIOSA District described in Exhibit A hereto. "Share of Zone Area" shall mean: (1) in the case of an Assessor's Parcel within a Zone which contains no Single Family Residential Property, the quotient obtained by dividing the Parcel Area of the Assessor's Parcel by the Zone Area of the Zone; and A-3 3 \ r' (2) in the case of an Assessor's Parcel within a Zone which contains any Single Family Residential Property: (a) prior to the recordation of the Initial Final Subdivision Map, the quotient obtained by dividing the Parcel Area of the Assessor's Parcel by the Zone Area of the Zone; (b) from and after the recordation of the Initial Final Subdivision Map, but (in the case of any Assessor's Parcel within the Zone not included within the Initial Final Subdivision Map) prior to the recordation of a Subsequent Final Subdivision Map: (i) for each Assessor's Parcel included within the Initial Final Subdivision Map which is Taxable Property other than Single Family Residential Property, the quotient obtained by dividing the Parcel Area of the Assessor's Parcel by the sum of the aggregate Parcel Area of all Assessor's Parcels included within the Initial Final Subdivision Map which are Taxable Property plus the aggregate area which the City Engineer estimates (pursuant to clause (iii) hereof), at the time Initial Final Subdivision Map is recorded, will be Taxable Property of all Assessor's Parcels not included within the Initial Final Subdivision Map; (ii) for each Assessor's Parcel included within the Initial Final Subdivision Map which is Single Family Residential Property, the product of a fraction the numerator of which is the aggregate Parcel Area of all Assessor's Parcels included within the Initial Final Subdivision Map which are Single Family Residential Property and the denominator of which is the sum of the aggregate Parcel Area of all Assessor's Parcels included within the Initial Final Subdivision Map which are Taxable Property plus the aggregate area which the City Engineer estimates (pursuant to clause (iii) hereof), at the time Initial Final Subdivision Map is recorded, will be Taxable Property of all Assessor's Parcels not included within the Initial Final Subdivision edenominaMap, times a fraction the numerator of which is one (1) tor of which is the number of Assessor's Parcels included within the Initial Final Subdivision Map which are Single Family Residential Property; and (iii) for each Assessor's Parcel within the Zone not included within the Initial Final Subdivision Map, the quotient obtained by dividing the area of the portion thereof which the City Engineer estimates, at the time the Initial Final Subdivision Map is recorded, will be Taxable Property upon the subdivision thereof by the sum of the aggregate Parcel Area of all Assessor's Parcels included within the Initial Final Subdivision Map which are Taxable Property plus the aggregate area which the City Engineer estimates, at the time Initial Final Subdivision Map is recorded, will be Taxable Property of all Assessor's Parcels within the Zone not included within the Initial Final Subdivision Map; and A-4 �- (c) subsequent to the recordation of each Subsequent Final Subdivision Map (in each case, for Assessor's Parcels within the Zone which had not theretofore been included within either the Initial Final Subdivision Map or a Subsequent Final Subdivision Map): (i) for each Assessor's Parcel included within such Subsequent Final Subdivision Map which is Taxable Property other than Single Family Residential Property, the product of a fraction the numerator of which is the Parcel Area of the Assessor's Parcel and the denominator of which is the actual total of the area of all the Assessor's Parcels included in such Subsequent Final Subdivision Map which are Taxable Property, times a fraction the numerator of which is the area which the City Engineer estimated would be Taxable Property pursuant to clause (b)(iii) of all the Assessor's Parcels included in such Subsequent Final Subdivision Map (as a whole, and not individually) and the denominator of which is the sum of the aggregate Parcel Area of all Assessor's Parcels described in clauses (b)(i) and (b)(ii) plus the aggregate area which the City Engineer estimated pursuant to clause (b)(iii) would be Taxable Property of all Assessor's Parcels within the Zone which were not included within the Initial Final Subdivision Map; (ii) for each Assessor's Parcel included within the Subsequent Final Subdivision Map which is Single Family Residential Property, the product of a fraction the numerator of which is the total Parcel Area of all Assessor's Parcels included within the Subsequent Final Subdivision Map which are Single Family Residential Property and the denominator of which is the actual total of the area of all the Assessor's Parcels included in such Subsequent Final Subdivision Map which are Taxable Property, times a fraction the numerator of which is the area which the City Engineer estimated would be Taxable Property pursuant to clause (b)(iii) of all the Assessor's Parcels included in such Subsequent Final Subdivision Map (as a whole, and not individually) and the denominator of which is the sum of the aggregate Parcel Area of all Assessor's Parcels described in clauses (b)(i) and (b)(ii) plus the aggregate area which the City Engineer estimated pursuant to clause (b)(iii) would be Taxable Property of all Assessor's Parcels within the Zone which were not included within the Initial Final Subdivision Map, times a fraction the numerator of which is I and the denominator of which is the number of Assessor's Parcels which are included within such Subsequent Final Subdivision Map and which are Single Family Residential Property; and (iii) for each Assessor's Parcel within the Zone which is not included within such Subsequent Final Subdivision Map, the quotient obtained by dividing the area of such Assessor's Parcel which the City Engineer estimated would be Taxable Property pursuant to clause (b)(iii) by the sum of the aggregate Parcel Area of all Assessor's Parcels described in clauses (b)(i) and (b)(ii) plus the aggregate area which the City Engineer estimated pursuant to clause (b)(iii) would be Taxable Property of all Assessor's Parcels within the Zone which were not included within the Initial Final Subdivision Map. A-5 �- "Single Family Residential Property" means all Assessor's Parcels which are used, or are permitted under the City's planning and zoning laws to be used, as the site of one single family dwelling unit (either detached or attached) or a condominium unit, provided that Single Family Residential Property shall not include any Assessor's Parcel which is Property Owner Association Property or Public Property. "Special Tax" means the Special Tax, if any, to be levied in each Fiscal Year on each Assessor's Parcel within the CIOSA District. "Special Tax Reduction" means the product of 0.69 times a fraction the numerator of which is $14,300,000 minus the Advance Amount and the denominator of which is $14,300,000. "Subsequent Final Subdivision Map" means for each Zone a final subdivision map permitting the sale of lots for single family residential uses within the Zone which is recorded subsequent to the Initial Final Subdivision Map. "Taxable Property" means all of the Assessor's Parcels within the boundaries of the CIOSA District which are not exempt from the Special Tax pursuant to law or Section E below. 'Undeveloped Property" means for any Fiscal Year all Taxable Property which is not classified as Developed Property for such Fiscal Year. "Upper Castaways- means that portion of the CIOSA District described in Exhibit A hereto te aza -Zone,, means Bayview Landing, CB�aB�uCorporate Newporte North, SanaDieglo Creek or Freeway Reservation, Newport Village Upper Castaways, as the case may be. "Zone Area" means the sum of the Parcel Area of each Assessor's Parcel of Taxable Property included in such Zone. "Zone Prepayment Amount" means the respective amount set forth in the following table minus the product of such amount times the Special Tax Reduction, if any: Zone Bayview Landing Block 800 Corporate Plaza Corporate Plaza West Freeway Reservation Newport Village - PCH/MacArthur Newporter North San Diego Creek Upper Castaways Prepayment Amount $ 95,000 1,370,000 1,400,000 1,925,000 1,585,000 2,575,000 7,950,000 2,890,000 6,960,000 "Zone Special Tax' means, for Fiscaub Year en9i 9Fis al Year 1995 96,6, the respective uoneehundred two t forth in the following table and, for each Fiscal Year q A-6 percent (102%) of the amount for the preceding Fiscal Year, minus in each case the product of such amount (as increased in each Fiscal Year) times the Special Tax Reduction, if any. Zone Bayview Landing Block 800 Corporate Plaza Corporate Plaza West Freeway Reservation Newport Village - PCH/MacArthur Newporter North San Diego Creek Upper Castaways B. Determination as to Type of Property Special Tax $ 7,200 105,350 107,572 147,911 121,830 197,855 610,900 222,300 534,786 For each Fiscal Year, all Taxable Property within the CIOSA District shall be classified as Developed Property or Undeveloped Property and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C, D and H below. C. Maximum Special Tax Rate The Maximum Special Tax in each Fiscal Year for an Assessor's Parcel of Taxable Property shall be the product obtained by multiplying the Share of Zone Area for such Assessor's Parcel times the Zone Special Tax then applicable to the Zone in which such Assessor's Parcel is located. Notwithstanding the foregoing, the Maximum Special Tax for an Assessor's Parcel shall be reduced to reflect a prepayment of the Special Tax applicable thereto as provided for in Section H. D. Method of Apportionment of Special Tax For each Fiscal Year, commencing with Fiscal Year 1995-96 until the earlier of (i) the date on which the CIOSA District Improvement Fund Requirement has been reduced to zero and there are no Bonds outstanding, or (ii) June 30, 2036, the City Council shall levy the Special Tax as follows: First: Until the CIOSA District Improvement Fund Requirement has been reduced to zero, the Special Tax shall be levied on each Assessor's Parcel of Developed Property at a rate equal to its Maximum Special Tax; Second: To the extent additional money is needed in order to equal the Debt Service Requirement prior to the reduction of the CIOSA District Improvement Fund Requirement to zero, the Special Tax shall be levied Proportionately on all Undeveloped Property in an amount not in excess of the Maximum Special Tax; Third: After the CIOSA District Improvement Fund Requirement has been reduced to zero, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property such that the total thereof will equal the Debt Service Requirement, provided, however, that in no event shall the amount of the Special Tax so levied exceed the Maximum Special Tax; and A-7 � � Fourth: After the CIOSA District Improvement Fund Requirement has been reduced to zero, to the extent additional money is needed in order to equal eDebt Service Tax shall be levied Proportionately on all Undeveloped Property, provided, however, that in no event shall the amount of the Special Tax so levied exceed the Maximum Special Tax. G E. Exemptions The City Council shall not levy a Special Tax on either (a) Property Owner Association Property, except the Property Owner Association Property within a Zone which was included in the estimate of Taxable Property made pursuant to clause (b)(iii) of the definition of "Share of Zone Area" and which first became Property Owner Association Property subsequent to the date of recordation of the Initial Final Subdivision Map or (b) Public Property, except the Public Property within a Zone which was included in the estimate of Taxable Property made pursuant to clause (b)(iii) of the definition of "Share of Zone Area" and which first became Public Property subsequent to the date of recordation of the Initial OSA Agnal reivision ement) orap as a by g'ftresult or devise or through eminent f acquisition through a negotiated transaction (other than the C domain proceedings, provided that in the,°rte shauch lloperty betreated as if through wege a domain proceedings the obligation to pay the Special assessment. F. Appeals Any landowner or resident who feels that the amount of the Special Tis in error may that file a notice with the CIOSA District appealing the amount of the Special Tax; ll provided, the actual Special if Bonds are outstanding any appeal must be accompanied by pay and, if necessary, Tax levied. A representativeof findings sof thCIOSA eC OSA District representatiistrict will then review the ve that the amount meet with the applicant. If theg of the Special Tax should be modified or changed, en ��hall beas arefundredte, the from available Special axes ial Tax levy shall be corrected, or if the amount has been paid, levied and collected in the following Fiscal Year. G. Manner of Collection The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, the CIOSA District 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 on delinquent parcels as permitted by the Code. H. Prepayment of Special Tax I . Prior to Issuance of Bonds - Developed Property and Undeveloped Property: Prior to the initial issuance of Bonds, the Special Tax applicable to any Assessor's celmayobtained by e prepaid in whole by paying to the City Treasurer seventy-seven percent (77%) � product multiplying the Share of Zone Area for such Assessor's Parcel times the Zone Prepayment Amount applicable to the Zone in which such Assessor's Parcel is located. Prior to the initial issuance of Bonds, the Special Tax applicable to any Assessors Parcel may be prepaid in part by paying to the City Treasurer a specific dollar amount in lieu of the amount determined pursuant to the preceding sentence; and from and after the City Treasurer's receipt of such partial prepayment, the Maximum A -s 3 �p Special Tax applicable to such Assessor's Parcel shall be the product of the Maximum Special Tax which would have otherwise been applicable thereto times a fraction the numerator of which is the specific amount paid in lieu of the amount described in the first sentence of this paragraph and the denominator of which is the amount described in said sentence. 2. After Issuance of Bonds - Undeveloped Property If Test Met: Subsequent to the initial issuance of Bonds, if the aggregate amount of the Special Taxes applicable to all Developed Property is sufficient to satisfy the Debt Service Requirement for the Bonds then outstanding in the then current Fiscal Year and each Fiscal Year thereafter (determined without any credit for capitalized interest), the Special Tax applicable to any Assessor's Parcel which is then classified as Undeveloped Property may be prepaid in whole by paying to the City Treasurer seventy-seven percent (77%) of the product obtained by multiplying the Share of Zone Area for such Assessor's Parcel times the Zone Prepayment Amount applicable to the Zone in which such Assessor's Parcel is located. Under the circumstances described in the preceding sentence, the Special Tax applicable to any Assessor's Parcel may be prepaid in part by paying to the City Treasurer a specific dollar amount in lieu of the amount determined pursuant to the preceding sentence; and from and after the City Treasurer's receipt of such partial prepayment, the Maximum Special Tax applicable to such Assessor's Parcel shall be the product of the Maximum Special Tax which would have otherwise been applicable thereto times a fraction the numerator of which is the specific amount paid in lieu of the amount described in the first sentence of this paragraph and the denominator of which is the amount described in said sentence. 3. After Issuance of Bonds - Developed Property and Undeveloped Property If Test Not Met: Except as otherwise provided in the preceding two paragraphs, the Special Tax applicable to any Assessor's Parcel may be prepaid in whole by paying to the City Treasurer the sum of. (a) The remainder of (i) the product obtained by multiplying the Share of Zone Area for such Assessor's Parcel times the Zone Prepayment Amount applicable to the Zone in which such Assessor's Parcel is located minus (ii) the portion of said product which would have been amortized as principal through the application of the portion of the Special Taxes attributable to the principal of and interest on Bonds theretofore paid with respect to said Assessor's Parcel (as determined by the City Treasurer) assuming that said product had borne interest at an annual rate equal to the highest rate borne by any Bond (or, if no Bond is then outstanding, nine percent (9%)) and that it had been payable in annual installments (each of which is two percent (2%) larger than the prior year's installment) over the same number of years as the Bond with the longest maturity, measured from the date of issuance of such Bond (or, if no Bond is then outstanding, twenty-five (25) years); provided that, in the case of an Assessor's Parcel which is then classified as Developed Property, the remainder referred to in the previous clause of this subparagraph shall be reduced by twenty- three percent (23 %) of the product obtained by multiplying (iii) the Share of Zone Area for such Assessor's Parcel times (iv) a fraction the numerator of which is the Zone Prepayment Amount' applicable to the Zone in which such Assessor's Parcel is located and the denominator of which is the aggregate Zone Prepayment Amounts for all Zones which then include Developed Property times (v) the amount, if any, by which the aggregate Zone Prepayment Amounts for all Zones which then include Developed Property exceeds the aggregate principal amount of Bonds then outstanding; and A-9 (b) The amount of any delinquent Special Taxes applicable to said Assessor's Parcel, together with penalties, interest, and Administrative Expenses incurred as a result of said delinquencies accrued to the date of prepayment; and (c) An amount equal to the product of the amount determined pursuant to paragraph (a) above times the highest redemption premium applicable to any Bond at the next call date (as defined in paragraph (e) below); and (d) A reasonable fee, fixed by the City Treasurer, for the cost of administering the prepayment and, if applicable, the advance redemption of Bonds; and (e) interest to the next call date on the amount determined pursuant to paragraph (a) above, computed at the highest interest rate then applicable to any Bond. For purposes of this paragraph and paragraph (c) above, the next call date is the next Bond interest payment date which is not less than 90 days after the date of prepayment. A credit against the foregoing shall be given, or a refund paid, for the Special Tax applicable to said Assessor's Parcel posted to the current tax roll and actually paid. The Special Tax applicable to any Assessor's Parcel may be prepaid in part by paying to the City Treasurer a portion (in increments of five thousand dollars ($5,000)) of the amount determined pursuant to paragraph (a) above plus the respective amounts relative thereto described in paragraphs (b) through (e) above. From and after the City Treasurer's receipt of any such partial prepayment, the Maximum Special Tax applicable to such Assessor's Parcel shall be the product of the Maximum Special Tax which would have otherwise been applicable thereto times a fraction the numerator of which is the specific amount paid in lieu of the amount described in paragraph (a) above and the denominator of which is the amount described in paragraph (a) above. A-10 -, � EXHIBIT A NEWPORT BEACH CIOSA ASSESSOR PARCELS Upper Castaways 117-801-12 Bayview Landing 440-132-06 440-132-08 Newporter North 440-132-21 440-132-24 San Diego Creek 442-061-09 442-061-11 442-061-14 Corporate Plaza West 442-011-54 Corporate Plaza 442-271-09 442-271-10 442-271-11 442-271-12 442-271-19 442-271-26 Block 800 442-262-04 Newport Village - PCH/MacArthur 442-014-28 442-272-03 442-272-04 Freeway Reservation 458-142-07 EXHIBIT A-1 -C) 240055-02 JHHW:cHbd anb� NOTICE OF PUBLIC HEARING CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) Notice is hereby given that on August 28, 1995, the City Council of the City o Newport Beach adopted a Resolution entitled "A Resolution of the City Council of the Cit: of Newport Beach of Consideration to Alter the Rate and Method of Apportionment of ar Existing Special Tax". Pursuant to the City of Newport Beach Special Improvement Distric Financing Code, the City Council of the City of Newport Beach hereby gives notice a follows: A. The text of said Resolution of Consideration is as follows: B. The time and place established under said Resolution of Consideration for the public hearing required under the Code are Monday, October 9, 1995, at 7:00 p.m., in th, regular meeting place of the City Council of the City of Newport Beach, Council Chambers City Hall, 3300 Newport Boulevard, Newport Beach, California. C. At said hearing, the testimony of all interested persons or taxpayers for or Ls b the proposed alterations to the rate and method of apportionment of the special tax w ill heard. Any person interested may file a protest in writing as provided in Section 410 of th Code. If fifty percent or more of the registered voters, or six registered voters, whichever i, more, residing within the District, or the owners of one-half or more of the area of land it the territory included in the District and not exempt from the special tax, file writte protests against any proposed alteration to the rate and method of apportionment of th special tax, and the protests are not withdrawn so as to reduce the value of the protests t less than a majority, those changes shall be eliminated from the Resolution c Consideration and the changes shall not be included in a resolution of Consideration fo period of one year from the date of the decision of the City Council on the hearing. D. The proposed voting procedure shall be by special mail or hand -delivered ballc to the property owners within the District. Dated: ,1995 /s/ Wanda E Raggio City Clerk, City of Newport Beach �V v PETITION TO COMMENCE PROCEEDINGS TO ALTER RATE AND METHOD OF APPORTIONMENT City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92659 Members of the Council: This is a petition to commence proceedings, under the City of Newport Beach Special Improvement District Financing Code (the "Code") to alter the rate and method of apportionment of an existing special tax, and the undersigned hereby states as follows: 1. Petitioner. This petition is submitted by The Irvine Company ('Petitioner"), as the owner of all of the parcels of land within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"). By submitting this petition, Petitioner warrants to the City of Newport Beach (the "City") that it is the owner of such land. 2. Proceedings Requested. Petitioner hereby requests that the City Council of the City institute proceedings under the Code to alter the rate and method of apportionment of the special tax previously authorized to be levied on property within the District. 3. Alterations Proposed. The proposed alterations to the previously authorized rate and method of apportionment are incorporated into the amended and restated rate and method of apportionment set forth in Exhibit A attached hereto and made a part hereof. 4. Election. Petitioner hereby requests that the the Code to authorize the alterations to the previously apportionment be conducted by the City and its officials ballots and that such ballots be opened and canvassed an( meeting of the City Council as the public hearing on tl under the Code, or as soon thereafter as possible. special election to be held under authorized rate and method of using mailed or hand -delivered I the results certified at the same ie proposed alterations required 5. Waivers. To expedite the completion of the proceedings for the alterations to the previously authorized rate and method of apportionment, Petitioner hereby waives all notices of hearings (other than published notices required under the Code) and all notices of election, all applicable waiting periods under the Code for the election and all ballot analysis and arguments for the election. or receiving es is: 6. Mailing Address. The address of thePetitioner Beach f California 92660,cAttentione Irvine Company, 550 Newport Center Dave, Newport Vice President and General Counsel Land Development Group. This petition is dated August 21, 1995. The Irvine Company, ichigan corporation By: Its: ivislon of The Ini e' Co any i By: 0MAS • Its: (�{STfWT S STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss I, Wanda E. Raggio, City Clerk of the City of Newport Beach, California hereby certify that the foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on August 28, 1995, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 3300 Newport Boulevard, Newport Beach, California, a location freely accessible to members of the public, and a brief general description of said Resolution appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct copy of the original Resolution adopted at said meeting and entered in said minutes; and that said Resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: ,1995 Wanda E. Raggio, City Clerk 3--5 EXHIBIT B CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) OFFICIAL BALLOT SPECIAL ELECTION REGARDING ALTERATION OF RATE AND METHOD OF APPORTIONMENT (OCTOBER 9,1995) This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Newport Beach no later than 8:00 p.m. on October 9, 1995, either by mail or in person. The City Clerk's office is located at 3300 Newport Boulevard, Newport Beach, California 92663. Alternatively, you may hand deliver the ballot to the City Clerk in the City Council Chambers, 3300 Newport Boulevard, Newport Beach, California 92663 no later than 8:00 p.m. on October 9,1995. To vote, mark a cross (X) on the voting line after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Newport Beach and obtain another. BALLOT MEASURE: Shall the rate and method of apportionment of the special tax to be levied within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) be altered as described in the resolution of the City Council of the City of Newport Beach, adopted October 9, 1995, entitled "A Resolution of the City Council of the City of Newport Beach Calling Special Election Regarding Alterations To the Rate And Method of Apportionment of Special Taxes for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA)"? Yes: No: B-1 3'� By execution in the space provided below, you also indicate your waiver of the time limit pertaining to the conduct of the election and any requirement for analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Sections 316(a) and 317(b) of the City of Newport Beach Special Improvement District Financing Code. Number of Votes: Property Owner: B-2 Landowner STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss I, Wanda E. Raggio, City Clerk of the City of Newport Beach, California hereby certify that the foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on October 9, 1995, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 3300 Newport Boulevard, Newport Beach, California, a location freely accessible to members of the public, and a brief general description of said Resolution appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct copy of the original Resolution adopted at said meeting and entered in said minutes; and that said Resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: 1995 Wanda E. Raggio, City Clerk ?, �D CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) OFFICIAL BALLOT SPECIAL ELECTION REGARDING ALTERATION OF RATE AND METHOD OF APPORTIONMENT (OCTOBER 9,1995) This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Newport Beach no later than 8:00 p.m. on October 9, 1995, either by mail or in person. The City Clerk's office is located at 3300 Newport Boulevard, Newport Beach, California, 92663. Alternatively, you may hand .deliver the ballot to the City Clerk in the City Council Chambers, 3300 Newport Boulevard, Newport Beach, California 92663 no later than 8:00 p.m. on October 9, 1995. To vote, mark a cross (X) on the voting line after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Newport Beach and obtain another. BALLOT MEASURE: Shall the rate and method of apportionment of the special tax to be levied within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) be altered as described in the resolution of the City Council of the City of Newport Beach, adopted October 9, 1995, entitled "A Resolution of the City Council of the City of Yes: Newport Beach Calling Special Election Regarding Alterations To the Rate And Method of Apportionment of Special Taxes for the City of Newport Beach Special Improvement District No: No. 95-1 (CIOSA)"? By execution in the space provided below, you also indicate your waiver of the time limit pertaining to the conduct of the election and any requirement for analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Sections 316(a) and 317(b) of the City of Newport Beach Special Improvement District Financing Code. Number of Votes: [121] Property Owner: The Irvine Company The Irvine Company, a Michigan corporation By: Its: By: Its: CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) CANVASS AND STATEMENT OF RESULTS OF ELECTION REGARDING ALTERATION OF RATE AND METHOD OF APPORTIONMENT I hereby certify that on October 9, 1995, I canvassed. the returns of the election held on October 9, 1995, in the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) and the total number of ballots cast in said District and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct: Qualified Landowner Votes Votes Cast YES NO City of Newport Beach Special Improvement District No. 95-1 (CIOSA) Special Election, October 9, 1995. [121] BALLOT MEASURE: Shall the rate and method of apportionment of the special tax to be levied within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) be altered as described in the resolution of the City Council of the City of Newport Beach, adopted October 9, 1995, entitled "A Resolution of the City Council of the City of Newport Beach Calling Special Election Regarding Alterations To the Rate And Method of Apportionment of Special Taxes for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA)"? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 9th day of October, 1995. By: Wanda E. Raggio, City Clerk 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH OF CHANGE DETERMINING THAT ALTERATIONS TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX ARE LAWFULLY AUTHORIZED AND DIRECTING RECORDING OF AMENDMENT TO NOTICE OF SPECIAL TAX LIEN WHEREAS, in proceedings heretofore conducted by the City Council pursuant to the City of Newport Beach Special Improvement District Financing Code (the "Code"), the City Council, on October 9, 1995, adopted a resolution entitled "A Resolution of the City Council of the City of Newport Beach Calling Special Election Regarding Alterations to the Rate and Method of Apportionment of Special Taxes for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA)" (the "Resolution Calling Election"), calling for a special election of the qualified electors within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"); WHEREAS, pursuant to the terms of said Resolution, which are by this reference incorporated herein, said special election was held on this date, and the City Clerk has on file a Canvass and Statement of Results of Election Regarding Alteration of Rate and Method of Apportionment, a copy of which is attached hereto as Exhibit A; and WHEREAS, this City Council has reviewed and hereby approves said Canvass; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: Section 1. The issues presented at said special election were the alterations to the rate and method of apportionment of the special tax to be levied within the District, as described in the Resolution Calling Election. Section 2. Pursuant to said Canvass on file with the City Clerk, the issues presented at said special election were approved by the qualified electors of the District by more than two-thirds of the votes cast at said special election. Section 3. The City Council hereby determines that the alterations to the rate and method of apportionment of the special tax to be levied within the District, as described in the Resolution Calling Election, are lawfully authorized. Section 4. The City Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of the County of Orange an amendment to the notice of special tax lien recorded with respect to the District, in substantially the form attached hereto as Exhibit B, said recording to occur no later than fifteen days following adoption by the City Council of this Resolution. C) Section S. It is hereby found that all prior proceedings and actions taken by the City Council with respect to the District were valid and in conformity with the Code. / Section 6. This Resolution shall take effect immediately upon its adoption. l APPROVED and ADOPTED by the City Council of the City of Newport Beach on October 9, 1995. ATTEST: Wanda E. Raggio, City Clerk John W. Hedges, Mayor EXHIBIT A CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) CANVASS AND STATEMENT OF RESULTS OF ELECTION REGARDING ALTERATION OF RATE AND METHOD OF APPORTIONMENT I hereby certify that on October 9, 1995, I canvassed the returns of the election held on October 9, 1995, in the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) and the total number of ballots cast in said District and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct: City of Newport Beach Special Improvement District No. 95-1 (CIOSA) Special Election, October 9, 1995. Qualified Landowner Votes Votes Cast YES [121] n X BALLOT MEASURE: Shall the rate and method of apportionment of the special tax to be levied within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) be altered as described in the resolution of the City Council of the City of Newport Beach, adopted October 9, 1995, entitled "A Resolution of the City Council of the City of Newport Beach Calling Special Election Regarding Alterations To the Rate And Method of Apportionment of Special Taxes for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA)"? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 9th day of October, 1995. BY: Wanda E. Raggio, City Cl r EXHIBIT B CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) SECOND AMENDMENT TO NOTICE OF SPECIAL TAX LIEN Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 320 of the City of Newport Beach Special Improvement District Financing Code (the "Code"), a Notice of Special Tax Lien with respect to the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District") was recorded in the Office of the County Recorder of the County of Orange on July _, 1995, as Instrument No. . The original Notice of Special Tax Lien was previously amended in connection with the amendment of the boundary map for the District in order to exclude a parcel therefrom. Pursuant to proceedings conducted in accordance with the Code, the rate and method of apportionment of the special tax to be levied within the District has been altered so as to be as specified in the Amended and Restated Rate and Method of Apportionment for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) set forth in Schedule I attached hereto and hereby made a part hereof. Pursuant to the requirements of Section 3117.5 of the California Streets and Highways Code and Section 412 of the Code, the undersigned City Clerk of the City of Newport Beach, County of Orange, State of California, hereby gives notice of such changes. Conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied and the lien of the special tax canceled are as set forth in Schedule I hereto. The name of the owner and the assessor's tax parcel numbers of the real property included within the District and not exempt from the special tax are as set forth in Schedule II attached hereto and hereby made a part hereof. Reference is made to the amended boundary map of the District recorded at Book _ of Maps of Assessment and Community Facilities Districts at Pages _ through ---, in the office of the County Recorder for the County of Orange, State of California, which map is now the final boundary map of the District. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Finance Director of the City of Newport Beach, 3300 Newport Boulevard, Newport Beach, California, 92663, telephone number (714) 644-3311. Dated: October ,1995 :I LA Wanda E. Raggio, City Clerk SCHEDULE I AMENDED AND RESTATED RATE AND METHOD OF APPORTION:NIENT FOR CITY OF NEWPORT BEACH SPECIAL IlVIPROVEMENT DISTRICT NO. 95-1 (CIOSA) A Special Tax (the "Special Tax") shall be levied and collected in Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "CIOSA District") each Fiscal Year in an amount determined by the City Council of the City of Newport Beach, or its designee, as described below. Commencing in Fiscal Year 1995-96 all of the property within the CIOSA District shall be subject to the Special Tax for the purposes, to the extent and in the manner herein provided. A. Definitions The terms hereinafter set forth have the following meanings: "Administrative Expenses" means any reasonably necessary or appropriate expenses incurred by the City in the administration of the CIOSA District. "Advance Amount" means the amount of the Advance as defined in the CIOSA Agreement. "Assessor's Parcel" means a lot or parcel with an assigned Assessor's Parcel number shown in an Assessor's Parcel Map. "Assessor's Parcel Map" means an official map of the County Assessor of the County of Orange designating parcels by Assessor's Parcel numbers. hereto. "Bayview Landing" means that portion of the CIOSA District described in Exhibit A "Block 800" means that portion of the CIOSA District described in Exhibit A hereto. "Bond Year" means, with respect to each issue of Bonds, the period which commences on the date on which such Bonds are issued and, subsequent to such issuance, on each September 2, and ends on the following September 1. "Bonds" means bonds, notes or other evidences of indebtedness issued by or on behalf of the CIOSA District pursuant to the Code which are payable from Special Taxes. "CIOSA Agreement" means the Circulation Improvement and Open Space Agreement dated June 30, 1993 by and between the City and The Irvine Company as the same may be amended from time to time. "CIOSA Agreement Amount" means the sum of (a) the Fair Share Fees Amount, (b) the Frontage Improvements Amount and (c) the Advance Amount. L 2) r" (1—` "CIOSA District' means Ne%�Tort Beach Sp -c al Improvement District No. 95-1 (CIOSA) as formed by the City pursuant to the Code and as it may be amended from time to time. "CIOSA District Improvement Fund" means the fund established and maintained by or on behalf of the City separate and apart from its other funds and accounts into which money is to be deposited and from which money is to be expended as provided herein and as may be provided in an agreement by and between the City and The Irvine Company. "CIOSA District Improvement Fund Requirement" means, as of any date of calculation, the CIOSA Agreement Amount as of such date, less the total amount deposited in the of CIOS District Improvement Fund on or before such date from (a) p s e (b) Special Taxes, (c) the prepayment of Special Taxes, (d) repayments from the City pursuant to Section 3.7 of the CIOSA Agreement and (e) earnings derived from the investment of amounts on deposit in the CIOSA District Improvement Fund. "City" means the City of Newport Beach. "City Council" means the City Council of the City of Newport Beach, acting as the legislative body of the CIOSA District, or its designee. "City Engineer" means the City Engineer of the City or such other person or firm as may from time to time be authorized and directed by the City Council to undertake the duties of the City Engineer hereunder. hereto. "Code" means the City of Newport Beach Special Improvement District Financing Code. 'Corporate Plaza" means that portion of the CIOSA District described in Exhibit A "Corporate Plaza West" means that portion of the CIOSA District described in Exhibit A hereto. 'Debt Service Requirement" means for each Fiscal Year the sum of (a) one hundred percent (100%) of the principal of and interest on Bonds coming due in the Bond Year which ends in the next subsequent Fiscal Year, except to the extent such principal or interest is expected to be paid from proceeds from the sale of Bonds or other amounts then available in the applicable debt service fund for such purpose, (b) the product of the amount described in clause (a) times the larger of (i) the rate of delinquency in the payment of the Special Tax during the Fiscal Year immediately preceding the Fiscal Year for which the Debt Service Requirement is being determined or (ii) ten percent (10%), (c) the sum of all deposits then required to be made into any reserve fund established with respect to any Bonds, and (d) the reasonably estimated Administrative Expenses for the Bond Year referred to in clause (a). "Developed Property" means for any Fiscal Year all Taxable Property within a Zone in which is located an Assessor's Parcel for which a building permit (other than a building permit for a structure in a model home complex) was issued prior to May 1 of the preceding Fiscal Year. A-2 "Fair Share Fees Amount" means the total amount of the Fair Share Fees as defined in the CIOSA Agreement. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Freeway Reservation" means that portion of the CIOSA District described in Exhibit A hereto. "Frontage Improvements Amount" means the total cost of the Frontage Improvements as defined in the CIOSA Agreement. "Initial Final Subdivision Map" means for each Zone the first final subdivision map permitting the sale of lots for single family residential uses within the Zone. "Maximum Special Tax" means the highest Special Tax, determined in accordance with Sections C and H, that can be levied by the City Council on an Assessor's Parcel in any Fiscal Year. "Newport Village - PCH/MacArthur" means that portion of the CIOSA District described in Exhibit A hereto. "Newporter North" means that portion of the CIOSA District described in Exhibit A hereto. "Parcel Area" means the square footage of an Assessor's Parcel determined by the City Engineer from the subdivision map or parcel map creating such Assessor's Parcel. "Property Owner Association Property" means any Assessor's Parcel which is owned by a property owner association or which the City Engineer determines from the subdivision map or parcel map creating such Assessor's Parcel is intended to be so owned. "Proportionately" means, with respect to Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels and, with respect to Undeveloped Property, means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels. "Public Property" means any property within the boundaries of the CIOSA District owned by or dedicated to the federal government, the State of California, the City or any other public agency, provided that any leasehold or other possessory interest in such property (which leasehold or other possessory interest is not owned by a public agency) shall not be considered Public Property. "San Diego Creek" means that portion of the CIOSA District described in Exhibit A hereto. "Share of Zone Area" shall mean: (1) in the case of an Assessor's Parcel within a Zone which contains no Single Family Residential Property, the quotient obtained by dividing the Parcel Area of the Assessor's Parcel by the Zone Area of the Zone; and A-3 14 _—j (2) in the case of an Assessor's Parcel within a Zone which contains any Single Family Residential Property: (a) prior to the recordation of the Initial Final Subdivision Map, the quotient obtained by dividing the Parcel Area of the Assessor's Parcel by the Zone Area of the Zone; (b) from and after the recordation of the Initial Final Subdivision Map, but (in the case of any Assessor's Parcel within the Zone not included within the Initial Final Subdivision Map) prior to the recordation of a Subsequent Final Subdivision Map: (i) for each Assessor's Parcel included within the Initial Final Subdivision Map which is Taxable Property other than Single Family Residential Property, the quotient obtained by dividing the Parcel Area of the Assessor's Parcel by the sum of the aggregate Parcel Area of all Assessor's Parcels included within the Initial Final Subdivision Map which are Taxable Property plus the aggregate area which the City Engineer estimates (pursuant to clause (iii) hereof), at the time Initial Final Subdivision Map is recorded, will be Taxable Property of all Assessor's Parcels not included within the Initial Final Subdivision Map; (ii) for each Assessor's Parcel included within the Initial Final Subdivision Map which is Single Family Residential Property, the product of a fraction the numerator of which is the aggregate Parcel Area of all Assessor's Parcels included within the Initial Final Subdivision Map which are Single Family Residential Property and the denominator of which is the sum of the aggregate Parcel Area of all Assessor's Parcels included within the Initial Final Subdivision Map which are Taxable Property plus the aggregate area which the City Engineer estimates (pursuant to clause (iii) hereof), at the time Initial Final Subdivision Map is recorded, will be Taxable Property of all Assessor's Parcels not included within the Initial Final Subdivision Map, times a fraction the numerator of which is one (1) and the denominator of which is the number of Assessor's Parcels included within the Initial Final Subdivision Map which are Single Family Residential Property; and (iii) for each Assessor's Parcel within the Zone not included within the Initial Final Subdivision Map, the quotient obtained by dividing the area of the portion thereof which the City Engineer estimates, at the time the Initial Final Subdivision Map is recorded, will be Taxable Property upon the subdivision thereof by the sum of the aggregate Parcel Area of all Assessor's Parcels included within the Initial Final Subdivision Map which are Taxable Property plus the aggregate area which the City Engineer estimates, at the time Initial Final Subdivision Map is recorded, will be Taxable Property of all Assessor's Parcels within the Zone not included within the Initial Final Subdivision Map; and `-A �'D A-4 (c) subsequent to the recordation of each Subsequent Final Subdivision Map (in each case, for Assessor's Parcels within the Zone which had not theretofore been included within either the Initial Final Subdivision Map or a Subsequent Final Subdivision Map): (i) for each Assessor's Parcel included within such Subsequent Final Subdivision Map which is Taxable Property other than Single Family Residential Property, the product of a fraction the numerator of which is the Parcel Area of the Assessor's Parcel and the denominator of which is the actual total of the area of all the Assessor's Parcels included in such Subsequent Final Subdivision Map which are Taxable Property, times a fraction the numerator of which is the area which the City Engineer estimated would be Taxable Property pursuant to clause (b)(iii) of all the Assessor's Parcels included in such Subsequent Final Subdivision Map (as a whole, and not individually) and the denominator of which is the sum of the aggregate Parcel Area of all Assessor's Parcels described in clauses (b)(i) and (b)(ii) plus the aggregate area which the City Engineer estimated pursuant to clause (b)(iii) would be Taxable Property of all Assessor's Parcels within the Zone which were not included within the Initial Final Subdivision Map; (ii) for each Assessor's Parcel included within the Subsequent Final Subdivision Map which is Single Family Residential Property, the product of a fraction the numerator of which is the total Parcel Area of all Assessor's Parcels included within the Subsequent Final Subdivision Map which are Single Family Residential Property and the denominator of which is the actual total of the area of all the Assessor's Parcels included in such Subsequent Final Subdivision Map which are Taxable Property, times a fraction the numerator of which is the area which the City Engineer estimated would be Taxable Property pursuant to clause (b)(iii) of all the Assessor's Parcels included in such Subsequent Final Subdivision Map (as a whole, and not individually) and the denominator of which is the sum of the aggregate Parcel Area of all Assessor's Parcels described in clauses (b)(i) and (b)(ii) plus the aggregate area which the City Engineer estimated pursuant to clause (b)(iii) would be Taxable Property of all Assessor's Parcels within the Zone which were not included within the Initial Final Subdivision Map, times a fraction the numerator of which is 1 and the denominator of which is the number of Assessor's Parcels which are included within such Subsequent Final Subdivision Map and which are Single Family Residential Property; and (iii) for each Assessor's Parcel within the Zone which is not included within such Subsequent Final Subdivision Map, the quotient obtained by dividing the area of such Assessor's Parcel which the City Engineer estimated would be Taxable Property pursuant to clause (b)(iii) by the sum of the aggregate Parcel Area of all Assessor's Parcels described in clauses (b)(i) and (b)(ii) plus the aggregate area which the City Engineer estimated pursuant to clause (b)(iii) would be Taxable Property of all Assessor's Parcels within the Zone which were not included within the Initial Final Subdivision Map. A-5 `) "Single Family Residential Property" means a'•1 Assessor's Parcels which are used, or are permitted under the City's planning and zoning laws to be used, as the site of one single family dwelling unit (either detached or attached) or a condominium unit, provided that Single Family Residential Property shall not include any Assessor's Parcel which is Property Owner Association Property or Public Property. "Special Tax" means the Special Tax, if any, to be levied in each Fiscal Year on each Assessor's Parcel within the CIOSA District. "Special Tax Reduction" means the product of 0.69 times a fraction the numerator of which is $14,300,000 minus the Advance Amount and the denominator of which is $14,300,000. "Subsequent Final Subdivision Map" means for each Zone a final subdivision map permitting the sale of lots for single family residential uses within the Zone which is recorded subsequent to the Initial Final Subdivision Map. "Taxable Property" means all of the Assessor's Parcels within the boundaries of the CIOSA District which are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means for any Fiscal Year all Taxable Property which is not classified as Developed Property for such Fiscal Year. "Upper Castaways' means that portion of the CIOSA District described in Exhibit A hereto. "Zone" means Bayview Landing, Block 800, Corporate Plaza, Corporate Plaza West, Freeway Reservation, Newport Village - PCH/MacArthur, Newporter North, San Diego Creek or Upper Castaways, as the case may be. "Zone Area" means the sum of the Parcel Area of each Assessor's Parcel of Taxable Property included in such Zone. "Zone Prepayment Amount" means the respective amount set forth in the following table minus the product of such amount times the Special Tax Reduction, if any: Zone Prepayment Amount Bayview Landing $ 95,000 Block 800 1,370,000 Corporate Plaza 1,400,000 Corporate Plaza West 1,925,000 Freeway Reservation 1,585,000 Newport Village - PCH/MacArthur 2,575,000 Newporter North 7,950,000 San Diego Creek 2,890,000 Upper Castaways 6,960,000 "Zone Special Tax" means, for Fiscal Year 1995-96, the respective amount set forth in the following table and, for each Fiscal Year subsequent to Fiscal Year 1995-96, one hundred two CAS A-6 percent (102%) of the amount for the preceding Fiscal Year, minus in each case the product of such amount (as increased in each Fiscal Year) times the Special Tax Reduction, if any. Zone Bayview Landing Block 800 Corporate Plaza Corporate Plaza West Freeway Reservation Newport Village - PCH/MacArthur Newporter North San Diego Creek Upper Castaways B. Determination as to Type of Property Special Tax $ 7,200 105,350 107,572 147,911 121,830 197,855 610,900 222,300 534,786 For each Fiscal Year, all Taxable Property within the CIOSA District shall be classified as Developed Property or Undeveloped Property and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined "pursuant to Sections C, D and H below. C. Maximum Special Tax Rate The Maximum Special Tax in each Fiscal Year for an Assessor's Parcel of Taxable Property shall be the product obtained by multiplying the Share of Zone Area for such Assessor's Parcel times the Zone Special Tax then applicable to the Zone in which such Assessor's Parcel is located. Notwithstanding the foregoing, the Maximum Special Tax for an Assessor's Parcel shall be reduced to reflect a prepayment of the Special Tax applicable thereto as provided for in Section H. D. Method of Apportionment of Special Tax For each Fiscal Year, commencing with Fiscal Year 1995-96 until the earlier of (i) the date on which the CIOSA District Improvement Fund Requirement has been reduced to zero and there are no Bonds outstanding, or (ii) June 30, 2036, the City Council shall levy the Special Tax as follows: First: Until the CIOSA District Improvement Fund Requirement has been reduced to zero, the Special Tax shall be levied on each Assessor's Parcel of Developed Property at a rate equal to its Maximum Special Tax; Second: To the extent additional money is needed in order to equal the Debt Service Requirement prior to the reduction of the CIOSA District Improvement Fund Requirement to zero, the Special Tax shall be levied Proportionately on all Undeveloped Property in an amount not in excess of the Maximum Special Tax; Third: After the CIOSA District Improvement Fund Requirement has been reduced to zero, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property such that the total thereof will equal the Debt Service Requirement, provided, however, that in no event shall the amount of the Special Tax so levied exceed the Maximum Special Tax; and A-7 a `1 Fourth: After the CIOSA District Improvement Fund Requirement has been reduced to zero, to the extent additional money is needed in order to equal the Debt Service Requirement, the Special Tax shall be levied Proportionately on all Undeveloped Property, provided, however, that in no event ` shall the amount of the Special Tax so levied exceed the Maximum Special Tax. E. Exemptions The City Council shall not levy a Special Tax on either (a) Property Owner Association Property, except the Property Owner Association Property within a Zone which was included in the estimate of Taxable Property made pursuant to clause (b)(iii) of the definition of "Share of Zone Area" and which first became Property Owner Association Property subsequent to the date of recordation of the Initial Final Subdivision Map or (b) Public Property, except the Public Property within a Zone which was included in the estimate of Taxable Property made pursuant to clause (b)(iii) of the definition of "Share of Zone Area" and which first became Public Property subsequent to the date of recordation of the Initial Final Subdivision Map as a result of acquisition through a negotiated transaction (other than the CIOSA Agreement) or by gift or devise or through eminent domain proceedings, provided that in the case of such property acquired through eminent domain proceedings the obligation to pay the Special Tax shall be treated as if it were a special annual assessment. F. Appeals Any landowner or resident who feels that the amount of the Special Tax is in error may file a notice with the CIOSA District appealing the amount of the Special Tax; provided, however, that if Bonds are outstanding any appeal must be accompanied by payment in full of the actual Special Tax levied. A representative of the CIOSA District will then review the appeal and, if necessary, meet with the applicant. If the findings of the CIOSA District representative verify that the amount of the Special Tax should be modified or changed, then, as appropriate, the Special Tax levy shall be corrected, or if the amount has been paid, then it shall be refunded from available Special Taxes levied and collected in the following Fiscal Year. G. Manner of Collection The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, the CIOSA District 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 on delinquent parcels as permitted by the Code. H. Prepayment of Special Tax 1. Prior to Issuance of Bonds - Developed Property and Undeveloped Property: Prior to the initial issuance of Bonds, the Special Tax applicable to any Assessor's Parcel may be prepaid in whole by paying to the City Treasurer seventy-seven percent (77%) of the product obtained by multiplying the Share of Zone Area for such Assessor's Parcel times the Zone Prepayment Amount applicable to the Zone in which such Assessor's Parcel is located. Prior to the initial issuance of Bonds, the Special Tax applicable to any Assessor's Parcel may be prepaid in part by paying to the City Treasurer a specific dollar amount in lieu of the amount determined pursuant to the preceding sentence; and from and after the City Treasurer's receipt of such partial prepayment, the Maximum 50 A-8 Special Tax applicable to such Assessor's Parcel shall be the product of the Maximum Special Tax which would have otherwise been applicable thereto times a fraction the numerator of which is the specific amount paid in lieu of the amount described in the first sentence of this paragraph and the denominator of which is the amount described in said sentence. 2. After Issuance of Bonds - Undeveloped Property If Test Met: Subsequent to the initial issuance of Bonds, if the aggregate amount of the Special Taxes applicable to all Developed Property is sufficient to satisfy the Debt Service Requirement for the Bonds then outstanding in the then current Fiscal Year and each Fiscal Year thereafter (determined without any credit for capitalized interest), the Special Tax applicable to any Assessor's Parcel which is then classified as Undeveloped Property may be prepaid in whole by paying to the City Treasurer seventy-seven percent (77%) of the product obtained by multiplying the Share of Zone Area for such Assessor's Parcel times the Zone Prepayment Amount applicable to the Zone in which such Assessor's Parcel is located. Under the circumstances described in the preceding sentence, the Special Tax applicable to any Assessor's Parcel may be prepaid in part by paying to the City Treasurer a specific dollar amount in lieu of the amount determined pursuant to the preceding sentence; and from and after the City Treasurer's receipt of such partial prepayment, the Maximum Special Tax applicable to such Assessor's Parcel shall be the product of the Maximum Special Tax which would have otherwise been applicable thereto times a fraction the numerator of which is the specific amount paid in lieu of the amount described in the first sentence of this paragraph and the denominator of which is the amount described in said sentence. 3. After Issuance of Bonds - Developed Property and Undeveloped Property If Test Not Met: Except as otherwise provided in the preceding two paragraphs, the Special Tax applicable to any Assessor's Parcel may be prepaid in whole by paying to the City Treasurer the sum of: (a) The remainder of (i) the product obtained by multiplying the Share of Zone Area for such Assessor's Parcel times the Zone Prepayment Amount applicable to the Zone in which such Assessor's Parcel is located minus (ii) the portion of said product which would have been amortized as principal through the application of the portion of the Special Taxes attributable to the principal of and interest on Bonds theretofore paid with respect to said Assessor's Parcel (as determined by the City Treasurer) assuming that said product had borne interest at an annual rate equal to the highest rate borne by any Bond (or, if no Bond is then outstanding, nine percent (9%)) and that it had been payable in annual installments (each of which is two percent (2%) larger than the prior year's installment) over the same number of years as the Bond with the longest maturity, measured from the date of issuance of such Bond (or, if no Bond is then outstanding, twenty-five (25) years); provided that, in the case of an Assessor's Parcel which is then classified as Developed Property, the remainder referred to in the previous clause of this subparagraph shall be reduced by twenty- three percent (23 %) of the product obtained by multiplying (iii) the Share of Zone Area for such Assessor's Parcel times (iv) a fraction the numerator of which is the Zone Prepayment Amount applicable to the Zone in which such Assessor's Parcel is located and the denominator of which is the aggregate Zone Prepayment Amounts for all Zones which then include Developed Property times (v) the amount, if any, by which the aggregate Zone Prepayment Amounts for all Zones which then include Developed Property exceeds the aggregate principal amount of Bonds then outstanding; and A-9 5 1 (b) The amount of any delinquent Special Taxes applicable to said Assessor's Parcel, together with penalties, interest, and Administrative Expenses incurred as a result of said delinquencies accrued to the date of prepayment; and / (c) An amount equal to the product of the amount determined pursuant to paragraph (a) above times the highest redemption premium applicable to any Bond at the next call date (as defined in paragraph (e) below); and (d) A reasonable fee, fixed by the City Treasurer, for the cost of administering the prepayment and, if applicable, the advance redemption of Bonds; and (e) Interest to the next call date on the amount determined pursuant to paragraph (a) above, computed at the highest interest rate then applicable to any Bond. For purposes of this paragraph and paragraph (c) above, the next call date is the next Bond interest payment date which is not less than 90 days after the date of prepayment. A credit against the foregoing shall be given, or a refund paid, for the Special Tax applicable to said Assessor's Parcel posted to the current tax roll and actually paid. The Special Tax applicable to any Assessor's Parcel may be prepaid in part by paying to the City Treasurer a portion (in increments of five thousand dollars ($5,000)) of the amount determined pursuant to paragraph (a) above plus the respective amounts relative thereto described in paragraphs (b) through (e) above. From and after the City Treasurer's receipt of any such partial prepayment, j the Maximum Special Tax applicable to such Assessor's Parcel shall be the product of the Maximum Special Tax which would have otherwise been applicable thereto times a fraction the numerator of which is the specific amount paid in lieu of the amount described in paragraph (a) above and the denominator of which is the amount described in paragraph (a) above. A-10 EXHIBIT A NEWPORT BEACH CIOSA ASSESSOR PARCELS Upper Castaways 117-801-12 Bayview Landing 440-132-06 440-132-08 Newporter North 440-132-21 440-132-24 San Diego Creek 442-061-09 442-061-11 442-061-14 Corporate Plaza West 442-011-54 Corporate Plaza 442-271-09 442-271-10 442-271-11 442-271-12 442-271-19 442-271-26 Block 800 442-262-04 Newport Village - PCH/MacArthur 442-014-28 442-272-03 442-272-04 Freeway Reservation 458-142-07 EXHIBIT A-1 240asm JHHW;GHbct gnb� NOTICE OF PUBLIC HEARING CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) Notice is hereby given that on August 28, 1995, the City Council of the City o Newport Beach adopted a Resolution entitled "A Resolution of the City Council of the Cit; of Newport Beach of Consideration to Alter the Rate and Method of Apportionment of ar Existing Special Tax". Pursuant to the City of Newport Beach Special Improvement Distric Financing Code, the City Council of the City of Newport Beach hereby gives notice a follows: A. The text of said Resolution of Consideration is as follows: B. The time and place established under said Resolution of Consideration for the public hearing required under the Code are Monday, October 9, 1995, at 7:00 p.m., in th, regular meeting place of the City Council of the City of Newport Beach, Council Chambers City Hall, 3300 Newport Boulevard, Newport Beach, California. r C. At said hearing, the testimony of all interested persons or taxpayers for or again the proposed alterations to the rate and method of apportionment of the special tax will b heard. Any person interested may file a protest in writing as provided in Section 410 of th Code. If fifty percent or more of the registered voters, or six registered voters, whichever iF more, residing within the District, or the owners of one-half or more of the area of land it the territory included in the District and not exempt from the special tax, file writte. protests against any proposed alteration to the rate and method of apportionment of th special tax, and the protests are not withdrawn so as to reduce the value of the protests t, less than a majority, those changes shall be eliminated from the Resolution c Consideration and the changes shall not be included in a resolution of Consideration fo period of one year from the date of the decision of the City Council on the hearing. D. The proposed voting procedure shall be by special mail or hand -delivered ballo to the property owners within the District. Dated: ,1995 /s/ Wanda E Raggi�, o City Clerk, City of Newport Beach PETITION TO COMMENCE PROCEEDINGS TO ALTER RATE AND METHOD OF APPORTIONMENT City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92659 Members of the Council: This is a petition to commence proceedings, under the City of Newport Beach Special Improvement District Financing Code (the "Code") to alter the rate and method of apportionment of an existing special tax, and the undersigned hereby states as follows: 1. Petitioner. This petition is submitted by The Irvine Company ('Petitioner"), as the owner of all of the parcels of land within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"). By submitting this petition, Petitioner warrants to the City of Newport Beach (the "City") that it is the owner of such land. 2. Proceedings Requested. Petitioner hereby requests that the City Council of the City institute proceedings under the Code to alter the rate and method of apportionment of the special tax previously authorized to be levied on property within the District. 3. Alterations Proposed. The proposed alterations to the previously authorized rate and method of apportionment are incorporated into the amended and restated rate and method of apportionment set forth in Exhibit A attached hereto and made a part hereof. 4. Election. Petitioner hereby requests that the special election to be held under the Code to authorize the alterations to the previously authorized rate and method of apportionment be conducted by the City and its officials using mailed or hand -delivered ballots and that such ballots be opened and canvassed and the results certified at the same meeting of the City Council as the public hearing on the proposed alterations required under the Code, or as soon thereafter as possible. 5. Waivers. To expedite the completion of the proceedings for the alterations to the previously authorized rate and method of apportionment, Petitioner hereby waives all notices of hearings (other than published notices required under the Code) and all notices of election, all applicable waiting periods under the Code for the election and all ballot analysis and arguments for the election. �J � tioner or receivin es is: 6. Mailing Address. The add-ress of Newporte1Beach f California 92660,cAttentione Irvine Company, 550 Newport Center Drive Vice President and General Counsel Land Development Group. This petition is dated August 21, 1995. The Irvine Company, ichigan corporation By: .v Its: 2 gd!jvisi:cno1he Irvi a Co anyiBy:1 Its: jiszAN F s -2- Su STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss I, Wanda E. Raggio, City Clerk of the City of Newport Beach, California hereby certify that the foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on August 28, 1995, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 3300 Newport Boulevard, Newport Beach, California, a location freely accessible to members of the public, and a brief general description of said Resolution appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct copy of the original Resolution adopted at said meeting and entered in said minutes; and that said Resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: ,1995 Wanda E. Raggio, City Clerk G r. SCHEDULE II CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) PROPERTY OWNER AND ASSESSOR'S PARCEL NUMBERS Name of Property Owner Assessor's Parcel Nos. The Irvine Company 117-801-12 The Irvine Company 440-132-06 The Irvine Company 440-132-08 The Irvine Company 440-132-21 The Irvine Company 440-132-24 The Irvine Company 442-061-09 The Irvine Company 442-061-11 The Irvine Company 442-061-14 The Irvine Company 442-011-54 The Irvine Company 442-271-09 The Irvine Company 442-271-10 The Irvine Company 442-271-11 The Irvine Company 442-271-19 The Irvine Company 442-271-26 The Irvine Company 442-262-04 The Irvine Company 442-014-28 The Irvine Company 442-272-03 The Irvine Company 442-272-04 The Irvine Company 458-142-07 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss I, Wanda E. Raggio, City Clerk of the City of Newport Beach, California hereby certify that the foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on October 9, 1995, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 3300 Newport Boulevard, Newport Beach, California, a location freely accessible to members of the public, and a brief general description of said Resolution appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct copy of the original Resolution adopted at said meeting and entered in said minutes; and that said Resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: 1995 Wanda E. Raggio, City Clerk 24005-02 7HHW.CRbd 9125/95 RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 SECOND AMENDMENT TO NOTICE OF SPECIAL TAX LIEN CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 320 of the City of Newport Beach Special Improvement District Financing Code (the "Code"), a Notice of Special Tax Lien with respect to the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District") was recorded in the Office of the County Recorder of the County of Orange on July _, 1995, as Instrument No. . The original Notice of Special Tax Lien was previously amended in connection with the amendment of the boundary map for the District in order to exclude a parcel therefrom. Pursuant to proceedings conducted in accordance with the Code, the rate and method of apportionment of the special tax to be levied within the District has been altered so as to be as specified in the Amended and Restated Rate and Method of Apportionment for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) set forth in Schedule I attached hereto and hereby made a part hereof. Pursuant to the requirements of Section 3117.5 of the California Streets and Highways Code and Section 412 of the Code, the undersigned City Clerk of the City of Newport Beach, County of Orange, State of California, hereby gives notice of such changes. Conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied and the lien of the special tax canceled are as set forth in Schedule I hereto. The name of the owner and the assessor's tax parcel numbers of the real property included within the District and not exempt from the special tax are as set forth in Schedule II attached hereto and hereby made a part hereof. Reference is made to the amended boundary map of the District recorded at Book _ of Maps of Assessment and Community Facilities Districts at Pages _ through --, in the office of the County Recorder for the County of Orange, State of California, which map is now the final boundary map of the District. U0 For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Finance Director of the City of Newport Beach, 3300 Newport Boulevard, Newport Beach, California, 92663, telephone number (714) 644-3311. Dated: October _,1995 2 Wanda E. Raggio, City Clerk SCHEDULE I CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX C I-1 SCHEDULE II CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) PROPERTY OWNER AND ASSESSOR'S PARCEL NUMBERS Name of Property Owner Assessor's Parcel Nos. The Irvine Company 117-801-12 The Irvine Company 440-132-06 The Irvine Company 440-132-08 The Irvine Company 440-132-21 The Irvine Company 440-132-24 The Irvine Company 442-061-09 The Irvine Company 442-061-11 The Irvine Company 442-061-14 The Irvine Company 442-011-54 The Irvine Company 442-271-09 The Irvine Company 442-271-10 The Irvine Company 442-271-11 The Irvine Company 442-271-19 The Irvine Company 442-271-26 The Irvine Company 442-262-04 The Irvine Company 442-014-28 The Irvine Company 442-272-03 The Irvine Company 442-272-04 The Irvine Company 458-142-07 r-, ORDINANCE NO. ORDINANCE OF THE CITY OF NEWPORT BEACH LEVYING SPECIAL TAXES WITHIN THE CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) WHEREAS, on May 8, 1995, the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Newport Beach Declaring Intention to Establish a Special Improvement District and to Authorize the Levy of Special Taxes" (the "Resolution of Intention") stating its intention to establish the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"), pursuant to the City of Newport Beach Special Improvement District Financing Code (the "Code"), to finance certain facilities (the "Facilities"); WHEREAS, notice was published as required by the Code relative to the intention of this City Council to form the District and to provide for the Facilities; WHEREAS, the City Council has held a noticed public hearing as required by the Code relative to the determination to proceed with the formation of the District and the rate and method of apportionment of the special tax to be levied within the District to finance a portion of the costs of the Facilities; WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the District and the levy of said special taxes were heard, substantial evidence was presented and considered by the City Council and a full and fair hearing was held; WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "A Resolution of the City Council of the City of Newport Beach of Formation of the City of Newport Beach Special Improvement District No. 95-1 (CIOSA), Authorizing the Levy of a Special Tax Within the District and Preliminarily Establishing an Appropriations Limit for the District" (the 'Resolution of Formation"), "A Resolution of the City Council of the City of Newport Beach Determining the Necessity to Incur Bonded Indebtedness Within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA)" and "A Resolution of the City Council of the City of Newport Beach Calling Special Election for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA)", which resolutions established the District, authorized the levy of a special tax with the District, and called an election within the District on the proposition of incurring indebtedness, levying a special tax, and establishing an appropriations limit within the District, respectively; WHEREAS, an election was held within the District in which the eligible landowner electors approved said propositions by more than the two-thirds vote required by the Code; WHEREAS, subsequent to said election, the City Council adopted resolutions entitled "A Resolution of the City Council of the City of Newport Beach of Consideration To Alter the Rate And Method of Apportionment of an Existing Special Tax" and "A Resolution of the City Council of the City of Newport Beach Calling Special Election Regarding Alterations to the Rate and Method of Apportionment of Special Taxes for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA)" (the "Resolution Regarding Alterations"), proposing to alter the rate and method of apportionment of the special tax for the District and calling for a special election of the qualified electors within the District; and WHEREAS, an election was held within the District in which the eligible landowner electors approved by more than the two-thirds vote required by the Code the proposition to alter the rate and method of apportionment of the special tax to be levied in the District; THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ORDAIN AS FOLLOWS: Section 1. By the passage of this Ordinance the City Council hereby authorizes and levies special taxes within the District pursuant to Sections 319 and 601 of the Code, at the rate and in accordance with the method of apportionment set forth in Exhibit A to the Resolution Regarding Alterations (the "Amended and Restated Rate and Method of Apportionment"). The special taxes are hereby levied commencing in fiscal year 1995-96 and in each fiscal year thereafter until the earlier of (i) the date on which the CIOSA District Improvement Fund Requirement (as defined in the Amended and Restated Rate and Method of Apportionment) has been reduced to zero and there are no bonds of the City issued for the District (the 'Bonds") outstanding, or (iii) the fiscal year ending June 30, 2036. Section 2. The Finance Director of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Amended and Restated Rate and Method of Apportionment. Section 3. Properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes, to the extent set forth in the Amended and Restated Rate and Method of Apportionment. In no event shall the special taxes be levied on any parcel within the District in excess of the maximum tax specified in the Amended and Restated Rate and Method of Apportionment. Section 4. All of the collections of the special tax shall be used as provided for in the Code, the Amended and Restated Rate and Method of Apportionment and the Resolution of Formation including, but not limited to, the payment of principal of and interest on the Bonds, the payment of the costs of the Facilities, the replenishment of the reserve fund for the Bonds, the payment of the costs of the City in administering the District and the costs of collecting and administering the special tax. 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. 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 713 of the Code shall apply to delinquent special tax payments. The Finance Director of the City �_� -2- is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Orange and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at the times necessary to satisfy the financial obligations of the District in each fiscal year. Notwithstanding the foregoing, the Finance Director of the City may collect one or more installments of the special taxes by means of direct billing by the City of the property owners within the District if, in the judgment of the Finance Director, such means of collection will reduce the administrative burden on the City in administering the District or 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. Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the District shall not be affected. Section 7. This Ordinance shall be in full force and effect from and after the date of its adoption. Attest: Wanda E. Raggio, City Clerk -3- John W. Hedges, Mayor G (0 I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the City Council of the City of Newport Beach in regular meeting assembled on the day of ,1995 by the following vote to wit: AYE: NOES: ABSENT: ABSTENTION: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of said City this day of . 1995. Wanda E. Raggio, City Clerk -4- 0 2400502 JHHW:GH AGREEMENT FOR BOND COUNSEL SERVICES r THIS AGREEMENT is made and entered into as of ,1995, by and between the City of Newport Beach (the "City") and Jones Hall Hill & White, A Professional Law Corporation ("Counsel'). RECITALS WHEREAS, the owners of certain real property within the City have submitted a petition to the City requesting the City to take proceedings pursuant to the City of Newport Beach Special Improvement District Financing Code to establish a special improvement district (the "District") in order to finance certain facilities (the "Facilities"); WHEREAS, the City is desirous of causing the financing of the Facilities through the issuance of one or more series of special tax bonds (the 'Bonds") payable from special taxes to be levied in the District; WHEREAS, the City desires to employ Counsel to provide legal services incident to the formation of the District and the issuance and sale of the Bonds for the purpose of financing the Facilities; and WHEREAS, Counsel is prepared and able to provide all legal services required and necessary incident to the formation of the District and the authorization, issuance, sale and delivery of the Bonds, as more fully described below; NOW, THEREFORE, it is mutually agreed by the parties hereto as follows: Section 1. Agreement for Services. The City employs Counsel to render, and Counsel agrees to render, legal services incident to the formation of the District and the authorization, issuance and sale of the Bonds as follows: a. Consultation with appropriate representatives of the City, the City Attorney, consultants to the City, the underwriter, underwriter's counsel and the owners of property within the District and their counsel concerning the formation of the District, the proposed financing and its timing, terms and structure, and including the rendering of legal advice with respect to the proceedings deemed necessary or desirable to comply with all requirements of law preliminary to the formation of the District and the authorization, issuance and sale of each series of Bonds. b. Preparation of all legal proceedings for the formation of the District and the authorization, issuance and sale of each series of Bonds, including preparation and/or review of all proceedings undertaken to form the District, preparation of a fiscal agent agreement, and any supplemental agreements, providing for the issuance of each series of Bonds, and preparation of all other proceedings incidental to or in connection with the G13 authorization, issuance and sale of each series of Bonds, including examination of other appropriate contracts or commitments of the City . c. Attendance at such meetings of the City as shall be deemed necessary for the proper conduct of the proceedings. d. Review, as to those matters that are related to the formation of the District and the authorization, issuance and sale of each series of Bonds, of the official statement describing the District and each series of Bonds to be prepared by the underwriter of such series of Bonds and its counsel, and participation in meetings reviewing such official statement; but Counsel shall not be responsible for the preparation or the content of such official statement. e. Assistance, if requested, in connection with securing investment ratings and/or insurance for a series of Bonds, including attendance at and participation in meetings with representatives of rating agencies or insurance companies, if requested. f. Examination of proofs of the Bonds, preparation of the final closing papers required to effect the delivery of each series of Bonds and organization of and attendance at the bond closings. g. The rendering of a final approving legal opinion on the validity of each series of Bonds and the tax-exempt status of interest thereon, and the rendering of such other legal opinions as may be appropriate in connection with the delivery of each series of Bonds. h. Such other legal services as may be incidental to the foregoing. Notwithstanding the foregoing, services to be rendered hereunder shall not include services in connection with any litigation involving the City or the District or the financing proceedings relating to the Bonds. For such services which Counsel is directed to render, compensation shall be on the basis of reasonable fees to be agreed upon by the City and Counsel. Section 2. Legal Fees. For the services described in Section 1 in connection with the formation of the District and the authorization, issuance and sale of the initial series of Bonds, Counsel shall be paid a fee based on the following schedule: 2% of the first $1,000,000 principal amount of Bonds, plus 1% of the next $4,000,000 principal amount of Bonds, plus 1/2% of the next $10,000,000 principal amount of Bonds, plus 1/8% of the principal amount of Bonds in excess of $15,000,000. For the services described in Section 1 in connection with the authorization, issuance and sale of each subsequent series of Bonds, Counsel shall be paid a fee based on the following schedule: 1% of the first $4,000,000 principal amount of Bonds, plus 1/2% of the next $6,000,000 principal amount of Bonds, plus 1/8% of the principal amount of Bonds in excess of $10,000,000. -2- The foregoing fee for each series of Bonds is contingent upon the issuance and sale of the Bonds of such series and shall be paid form the proceeds of the sale of the Bonds of such series within a reasonable time after the sale and delivery thereof. Section 3. Costs. In addition to the fee described in Section 2, Counsel shall be reimbursed for out-of-pocket expenses incurred in connection with the issuance of each series of Bonds, including shipping, delivery and courier service, photocopying and official transcript duplication, and travel outside of the State of California, if requested. The foregoing costs for each series of Bonds are contingent upon the sale and delivery of the Bonds of such series and shall be paid from the proceeds of the sale of the Bonds of such series within a reasonable time after sale and delivery thereof. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. CITY OF NEWPORT BEACH Director of Finance JONES HALL HILL & WHITE, A PROFESSIONAL LAW CORPORATION By: Vice President -3- % ,7 CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) OFFICIAL BALLOT SPECIAL ELECTION REGARDING ALTERATION OF RATE AND METHOD OF APPORTIONMENT (OCTOBER 9,1995) This ballot is for a special, landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Newport Beach no later than 8:00 p.m. on October 9, 1995, either by mail or in person. The City Clerk's office is located at 3300 Newport Boulevard, Newport Beach, California, 92663. Alternatively, you may hand deliver the ballot to the City Clerk in the City Council Chambers, 3300 Newport Boulevard, Newport Beach, California 92663 no later than 8:00 p.m. on October 9, 1995. To vote, mark a cross (X) on the voting line after the word "YES" or after the word "NO". All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Newport Beach and obtain another. BALLOT MEASURE: Shall the rate and method of apportionment of the special tax to be levied within the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) be altered as described in the resolution of the City Council of the City of Newport Beach, adopted October 9, 1995, entitled "A Resolution of the City Council of the City of Yes: Newport Beach Calling Special Election Regarding Alterations To the Rate And Method of Apportionment of Special Taxes for the City of Newport Beach Special Improvement District No: No. 95-1 (CIOSA)"? By execution in the space provided below, you also indicate your waiver of the time limit pertaining to the conduct of the election and any requirement for analysis and arguments with respect to the ballot measure, as such waivers are described and permitted by Sections 316(a) and 317(b) of the City of Newport Beach Special Improvement District Financing Code. Number of Votes: 124 Property Owner: The Irvine Company The Irvine Com an , a Michigan corporation By. ItS: BERNARD A. mANISCALCO A"fle�'arl-ek"A division of The Iie mpany By: - C. L-, Its: THOAAAR SAKAI ASSISTA,NIT SECRETARY �? APP c T+ r _\ y. Authorized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange County, California. Number A-6214, September 29, 1961, and A-24831 June 11, 1963. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. County of Orange ) am a Citizen of the United States and a resident of the County aforesaid; I am over the age of .eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the NEWPORT BEACH -COSTA MESA DAILY PILOT, a newspaper of general circulation, printed and published in the City, of Costa Mesa, County of -Orange, State of California, and that attached Notice is a true and complete copy as was printed and published on the following dates: September 18, 1995 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on September 18 199 5 at Costa Mesa, California. Signature of Newport Beach Deter- mining the Necessity to Incur Bonded Indebted- "Allu NOT)b ness Within the City of Newport Beach Special im- NOTICE OF provement District No. 95.1 PUBLIC HEARING (CIOSA)" and "A Resolu- CITY OF NEWPORT tion of the City Council of BEACH SPECIAL the City of Newport Beach IMPROVEMENT Calling Special Election for the City of Newport Beach DISTRICT NO. 95.1 Special Improvement Dis- (CIOSA) trict No, 95.1 (CIOSA)", Notice is hereby given which resolutions estab- that on August 28, 1995, lished the District, autho- the City Council of the City rized the levy of a special of Newport Beach adopted tax within the District and a Resolution entitled "A called an election within Resolution of the City the District on the proposi- Council of the City of New- tion of incurring Indebted. port Beach of Consider- ness, levying a special tax, ation to Alter the Rate and and eslablishing an ap- Method of Apportionment propriations limit within the of an Existing Special Tax". District, respectively; Pursuant to the City of WHEREAS, an election Newport Beach Special Im- was held within the District provement District Financ- in which the eligible land- ing Code, the City Council owner electors approved of the City of Newport said propositions by more Beach hereby gives notice than the two-thirds vote ye- as follows: quired by the Code; A. The text of said Resolu- WHEREAS, the City Clerk tion of Consideration is as of the City has received a follows: written petition (the "Peti- WHEREAS, on May 8, tion") from the owners of 1995, the City Council not less than 25% of the adopted a resolution en- area of the territory within titled "A Resolution of the the District requesting that City Council of the City of proceedings be com- Newport Beach Declaring menced to alter the rate Intention to Establish a and method of apportion. Special Improvement Dis- ment of the special tax au. trict and to Authorize the thorized to be levied within Levy of Special Taxes" the District; and stating its intention to es- WHEREAS, the City Coun tablish the City of Newport cil desires to acknowledge Beach Special Im- receipt of the Petition and provement District No. 95.1 to commence proceedings (CIOSA) (the "District') to alter the rate and pursuant to the City of method of apportionment Newport Beach Special Im. of the special tax autho- provement District Financ- rized to be levied within the ing Code (the "Code"), to District; finance certain facilities NOW, THEREFORE, BE IT (the "Facilities"); RESOLVED by the City WHEREAS, notice was Council of the City of New - published as required by port Beach as follows: the Code relative to the in- Section 1. Receipt by the tention of the City Council City Council of the Petition to form the District and to is hereby acknowledged. provide for the Facilities; Section 2. The City Coun- WHEREAS, the City Coun- cil hereby finds and deter. cil has held a noticed pub- mines that public conve- lic hearing as required by nience and necessity re - the Code relative to the de- quire that the rate and termination to proceed with method of apportionment the formation of the District of the special tax autho- and the rate and method of rized to be levied within the apportionment of the spe- District be altered. cial tax to be levied within Section 3. The name of the District to finance a the District is "City of New - portion of the costs of the port Beach Special Im- Facilities; provement District No. 95-1 WHEREAS, at said hear- (CIOSA)". ing all persons desiring to Section 4. The boundaries be heard on all matters of the District are shown on pertaining to the formation the map of the District re - of the District and the levy corded at Book 68 of Maps of said special taxes were of Assessment and Com - heard, substantial evidence munity Facilities Districts at was presented and consid- Pages 26 through 35, in ered by the City Council the office of the County Re. and a full and fair hearing corder for the Orange, of was held; Orange, State of California, WHEREAS, subsequent to which map is the final said hearing, the City boundary map of the Dis- Council adopted resolu. trict. tions entitled "A Resolution Section 5. The rate and of the City Council of the method of apportionment l City of Newport Beach of of the special tax among Formation of the City of the parcels.of real property Newport Beach Special Im. within the District is pro. provement District No. 95.1 posed to be amended and (CIOS'A), Authorizing the restated as set forth in Ex. Levy of a Special Tax hibit A attached hereto and Within the District and Pre- by this reference incorpo- liminarily Establishing an ratad herein. The condi. Appropriations Limit for the tions under which the obli- District', "A Resolution of crstion to pay the specified the City Council of the City, ipecial tax may be prepaid and permanently satisfied are specified in said Exhibit A. Such amended and re- stated rate and method of ,apportionment Is in suf- ficient detail to allow each landowner within the Dis- trict to estimate the maxi- mum amount such owner �( they, or any of them, ma} deem necessary or desin able to accomplish the pur• poses of this Resolutior and not inconsistent will- the iththe provisions hereof. Section 9. This Resolutior shall take effect im• mediately upon its adop• tion. B. The exhibit to the Res. olution which describes the alterations to the rate and method of apportionment of the special tax for the District is on file in the of- fice of the City Clerk. C. The time and place es- tablished under said Reso- lution of Consideration for the public hearing required under the Code are Mon- day, October 9, 1995, at 7:00 p.m., in the regular meeting place of the City Council of the City of New- port Beach, Council Cham- bers, City Hall, 3300 New- port Boulevard, Newport Beach, California. D. At said hearing, the testimony of all interested persons or taxpayers for or against the proposed alter- ations to the rate and method of apportionment of the special tax will be heard. Any person inter- ested may file a protest in writing as provided in Sec- tion 410 of the Code. If fifty percent or more of the reg- istered voters, or six reg- istered voters, whichever is more, residing within the District, or the owners of one-half or more of the area of land in the territory included in the District and not exempt from the spe- cial tax, file written protests against any proposed alter- ation to the rate and method of apportionment of the special tax, and the protests are not withdrawn so as to reduce the value of the protests to less than a majority, those changes shall be eliminated from the Resolution of Consider- ation and the changes shall not be included in a resolu- tion of Consideration for period of one year from the date of the decision of the City Council on the hear- �nE The proposed voting procedure shall be by spe- cial mail or hand -delivered ballot to the property own- ers within the District. Dated: 9-11, 1995 /s/Wanda E. Ragglo, City Clerk, City of New- port Beach Published Newport Beach -Costa Mesa Daily Pilot September 18, 1995 M958 will have to pay. The City' Council hereby finds and determines that the pro- posed alterations to the rate and method of ap- portionment, as incorpo- rated in said amended and restated rate and method of apportionment, will not Interfere with the timely re- tirement of any debt in- curred with respect to the District. Section 6. Monday, Octo- ber 9, 1995, at 7:00 p.m., in the regular meeting place of the City Council, Council Chambers, City Hall, 3300 Newport Boulevard, New- port Beach, California, be, and the same are hereby appointed and fixed as the time and place when and where the City Council, as legislative body for the Dis- trict, will conduct a public hearing on the proposed alterations to the rate and method of apportionment of the special tax. Section 7. The City Clerk is hereby directed to cause notice of said public hear- ing to be given by publica- tion one time in a newspa- per published in the area of the District. The publica- tion of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall contain the in., formation prescribed by Section 410 of the Code. Section 8. The officers and employees of the City are hereby authorized and directed to take all actions, and do all things which