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HomeMy WebLinkAbout06-12-1995 Item #40BY THE CITY COUNCIL CITY OF NEWPORT BEACH A IN i 2 1995 May ;i1, 1995 CITY OF NEWPORT BEACH DEPARTMENT OF FINANCE Interdepartmental Memorandum �. -7.6 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. In order to proceed with the formation of the Special Improvement District the City Council must take several actions. In connection with the referenced financing the City Council must approve the Special Improvement District Report; and adopt three (3) resolutions as follows: 1. Resolution of Formation of the City of Newport Beach Special Improvement District No. 95-1 (CIOSA). 2. Resolution Determining the Necessity to Incur Bonded Indebtedness. 3. Resolution Calling Special Election. RECOMMENDATION: It is respectfully recommended that the City Council approve the Special Improvement District Report, the Resolution of Formation, the Resolution Determining Necessity to Incur Bonded Indebtedness, and the Resolution Calling Special Election, for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) Special Tax Bonds. 06/01/95 2:24 PM CIOSA.DOC '24005-02 RECORDING REQUESTED BY AND AFTER RECORDATION RETURN TO: City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663_ THE OF-IGINA� O THIS POI.t►NENT nMW-.G :ea WAS REi:,UEU Ufi 07/06//M&95 !! LUMDInurRH Gyn,J �IiYiivJil i �, i., }��,_JiG(,I�iillFh ' Nr•r COU:`E.,'y �.�:�, ucR ., OFFi�� CONFORMED COPY NOTICE OF SPECIAL TAX LIEN Not Compared with Original 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"), the undersigned City Clerk of the City of Newport Beach (the "City"), County of Orange, State of California, hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City. The special tax secured by this lien is authorized to be levied for the purpose of paying the principal of and interest on bonds, the proceeds of which are being used to finance the acquisition and construction of public facilities described on Exhibit A attached hereto and hereby made a part hereof. The special tax is authorized to be levied within the City of Newport Beach Special Improvement District No..95-1 (CIOSA) (the District) which has now been officially formed and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 403 of the Code. The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. 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 Exhibit B hereto. Notice is further given that upon the recording of this notice in the office of the County Recorder of the County of Orange, the obligation to pay the special tax levy shall become alien upon all nonexempt real property within the District in accordance with Section 3115.5 of the California Streets and Highways Code. The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within the District and not exempt from the special tax are as set forth in Exhibit C attached hereto and hereby made a part hereof. Reference is made to the boundary map of the District recorded at Book 68 of Maps of Assessment and Community Facilities Districts at Pages 26 through 35, 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: July 3,1995 -2- By: Wanda E. Raggio, City 1 k EXHIBIT A CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) FACILITIES TO BE FINANCED Facilities The planned public improvements include the construction of various street improvements, including access roads, sidewalks, street widening, signal relocations, median rework and landscaping, and storm drain facilities, including all costs of engineering, design, planning and coordination incident thereto. The facilities shall be constructed, whether or not acquired in their completed states, pursuant to plans and specifications approved by the City of Newport Beach and the applicable officials thereof. Other Bond related expenses, including underwriters' discount, appraisals, reserve fund, capitalized interest, bond counsel, bond and official statement printing and all other expenses related thereto, and administrative fees of the City and the Bond trustee or fiscal agent related to the District and the Bonds. A-1 EXHIBIT B RATE AND METHOD OF APPORTIONMENT FOR CITY OF NEWPORT BEACH SPECIAL EMPROVEMENT 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. "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 total amount deposited in the CIOSA District Improvement Fund on or before such date from (a) proceeds from the sale of Bonds, (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 the foregoing. "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. "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 hereto. "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. M "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" 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. "PCH - MacArthur" means that portion of the CIOSA District described in Exhibit A hereto. "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 1-2 (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 (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. "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. "Zone" means Bayview Landing, Block 800, Corporate Plaza, Corporate Plaza West, Freeway Reservation, Newport Village, Newporter North, PCH - MacArthur, 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 435,000 Newporter North 7,950,000 PCH - MacArthur 2,140,000 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 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 $ 7,920 116,865 119,910 164,406 135,270 37,304 182,718 678,397 246,600 593,810 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 IM 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 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 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 M 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. 2. Subsequent to the initial issuance of Bonds, during any Fiscal Year in which the aggregate amount of the Special Taxes applicable to all Developed Property is sufficient to satisfy the Debt Service Requirement for such Fiscal Year (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. During any Fiscal Year 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. 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); and (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. EXHIBIT 70 EXHIBIT B 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 and PCH -MacArthur 442-014-28 442-272-03 442-272-04 Freeway Reservation 458-142-07 EXHIBIT TO EXHIBIT B EXHIBIT C CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) PROPERTY OWNER 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 442-271-12 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 C-1 24005-02 JHHW:GH:bct 5/17/95 .Mt 6/2/915 CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) SPECIAL IMPROVEMENT DISTRICT REPORT CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) INTRODUCTION. The City Council of the City of Newport Beach did, pursuant to the provisions of the City of Newport Beach Special Improvement District Financing Code (the "Code"), on May 8, 1994, adopt 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"). In the Resolution of Intention, the City Council expressly ordered the preparation of a written Special Improvement District Report (the "Report"), for the proposed City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"). The Resolution of Intention ordering the Report did direct that the Report generally contain the following: 1. A brief description of the facilities by type which will be required to adequately meet the needs of the District; and 2. An estimate of the fair and reasonable cost of the facilities, including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 702 of the Code. For particulars, reference is made to the Resolution of Intention for the District, as previously adopted by the City Council. NOW, THEREFORE, I, the Director of Public Works/City Engineer of the City of Newport Beach, do hereby submit the following data: A. DESCRIPTION OF FACILITIES. A brief description of the proposed facilities is as shown in Exhibit "A" attached hereto and hereby made a part hereof. B. PROPOSED BOUNDARIES OF THE DISTRICT. The proposed boundaries of the District are those properties and parcels in which special taxes may be levied to pay for the costs and expenses of the facilities. The proposed boundaries of the District are described on the map of the District on file with the City Clerk. -1- C. COST ESTIMATE. The cost estimate for the facilities for the District is set forth in Exhibit 'B" attached hereto and hereby made a part hereof. Dated: June 12,1995 -2- By: Don Webb, Director of Public Works/ City Engineer EXHIBIT A CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) FACILITIES TO BE FINANCED Facilities The planned public improvements include the construction of various street improvements, including access roads, sidewalks, street widening, signal relocations, median rework and landscaping, and storm drain facilities, including all costs of engineering, design, planning and coordination incident thereto. The facilities shall be constructed, whether or not acquired in their completed states, pursuant to plans and specifications approved by the City of Newport Beach and the applicable officials thereof. Other Bond related expenses, including underwriters' discount, appraisals, reserve fund, capitalized interest, bond counsel, bond and official statement printing and all other expenses related thereto, and administrative fees of the City and the Bond trustee or fiscal agent related to the District and the Bonds. A-1 EXHIBIT B CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) COST ESTIMATE ACQUISITIONS AND CONSTRUCTION $ INCIDENTALS (a) Report Preparation and other City Administrative Costs (b) Bond Administration and Registration (c) Bond and Official Statement Printing (d) Boundary Map Preparation (e) Special Tax Consultation Fees (f) Bond Reserve Fund (g) Bond Discount (h) Legal Fees (i) Capitalized Bond Interest (j) Appraisal CONTINGENCIES TOTAL B -i $29,000,000 2400.5+-02 JHHW:GH:bct 5/15/C6 :Mt 6/2/% CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) OFFICIAL BALLOT SPECIAL TAX ELECTION (JUNE 26,1995) 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 7:00 p.m. on June 26, 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 7:00 p.m. on June 26, 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 City of Newport Beach incur an indebtedness and issue bonds in the maximum aggregate principal amount of $29,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds on behalf of the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"), the proceeds of which will be used to finance certain public improvements; shall a special tax payable solely from lands within the District be levied annually upon lands within the District to pay for said public improvements, the principal and interest upon such bonds and the costs of the City in administering the District, and shall the annual appropriations limit of the District be established in the amount of $29,000,000? Yes: K 20 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 /I X/ By: Its: stal Commpjity Builders By: Its: Assistant Secretary T F Irvine Company Authorized to Publish Advertisements of all kinds L. --ding 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 ) I 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, 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: June 15, 1995 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on June 15 1 199 5 at Costa Mesa, California. t Z-111 Signat 6 e ��S- cjas'�' A PU3LIC NOTICE RESOLUTION NO. 95.76 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) WHEREAS, on this date, the City Council adopted a resolution entitled "A Reso- lution of the City Council of the City of Newport Beach of Formation of the City of Newport Beach Special Im- provement District No. 95-1 (CIOSA), Authorizing thy Levy of a Special Tax Within the District and Pre- Iirninarily Establishing an Appropriations Limit for the District" (the "Resolution of Formation"), ordering the formation of the City of Newport Beach Special Im- provement District No. 95.1 (CIOSA) (the "District"), authorizing the levy of a special tax on property within the District and pre- liminarify establishing an j appropriations limit for the District; WHEREAS, on this date, the City Council also adopted a resolution en- titled "A Resolution of the City Council of the City of Newport Beach Determin- t ing the Necessity to Incur Bonded Indebtedness Within the City of Newport Beach Special Im- i provement District No. 95.1 (CIOSA) ' (the "Resolution to Incur Indebtedness"), determining the necessity to incur bonded indebted- ness in the maximum ag gregate principal amount of $29,000,000 upon the secu- rity of said special tax t0 t be levied within the District and ! WHEREAS, pursuant to the provisions of said reso- lutions, the propositions o the levy of said special tax the establishment of the appropriations limit and the incurring of the bonded in debtedness shall be sub mitted to the qualified elec tors of the District as re quired by the City of New port Beach Special .im provement District Financ Ing Code (the "Code"). NOW THEREFORE, BE IT RESOLVED by the City Council of the City of New- port Beach as follows: Section 1. Pursuant to Sections 316, 707 anti 315 of the Code, the issues of the levy of said special tax, the incurring of bonded in- debtedness and the estab- lishment of said appropria- tions .limit shall be sub- mitted to the qualified elec- tors of the District at an election called therefor as provided below. Section 2. As authorized by Section 709 of the Code, the three proposi- tions described in Section 1 hereof shall be combined into a single ballot mea- sure, the form of which is attached hereto as Exhibit "A and by this reference incorporated herein. Said form of ballot is hereby ap- proved. Section 3. The City Coun- cil 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 pro- ceedings. 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 Dis- trict and that the vote shall be by said landowners or their authorized representa- tives, 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 4. The City Coun- cil hereby calls a special election to consider the measures described in Section 2 hereof, which election shall be held in the City Council Chambers at 7:00 p.m. on June 26, 1995. The City Clerk is hereby designated as the official. to conduct said election. It is hereby ac- knowledged that the City I Clerk has on file the Reso- lution of Formation, a certi- fied map of the proposed boundaries of the District and a sufficient description to allow the City Clerk tc determine the boundaries of the District. The voted ballots shall be returned to the City ClerF iot later than 7:00 p.m. on the provision of Section June 26, 1995, and when 316 of the Code requiring a all of the qualified voters minimum of 90 days fol- iaoted the election lowing the adoption of the ah,closed.. Resolution of Formation to Seouon - 5. Pursuant to 'elapse before said special Section 317 of the Code, election is for the protec- he election shall be con- tion of the qualified elector Jucted by mail or hand- of the District. There iso on Jelivered ballot pursuant to file with the City Clerk a Section 1340 of the Califor- written petition executed by nia Elections Code. The the qualified elector of the City Council hereby finds District requesting a short - that paragraphs (a),(b),(c) ening of -the time for said (1) and (c)(3) of said Sec- special election to expedite tion 1340 are applicable to the process of formation of this special election. the District and waiving any Section 6. The City Clerk requirement for analysis shall cause to be delivered and arguments in connec- lo each of the qualified tion with the election. Ac - electors of the District a cordingly, the City Council ballot in the form set forth finds and determines that! in Exhibit "A" hereto. Each said qualified elector has ballot indicates the number been fully apprised of and of votes to be voted by the has agreed to the short respective landowner to ened time for the election. which it pertains. and waiver of analysis and Each ballot shall be ac- arguments, and has companied by all supplies thereby been fully pro - and written instructions tected in these pro -1 necessary for the use and ceedings. The City Councili return of the ballot. The en- also finds and determinesi velope to be used to return that the City Clerk has con the ballot shall be enclosed curred in the shortened with the ballot, shall have time for the election. the return postage prepaid, Section 9. The City Clerk and shall contain the fol- is hereby directed to pub - lowing: (a) the name and lish in a.newspaper of gen- address of the landowner, eral circulation circulating (b) a declaration, under within the District a copy of penalty of perjury, stating this Resolution as soon as that the voter is the owner practicable after the date of of record or the authorized adoption of this Resolution. representative of the land- Section 10. This Reso- owner.entitled to vote and lution shall take effect Im- is the person whose name mediately upon its adop- appears on the envelope, tion. (c) the printed name, sig- A P P R O V E D a n d nature and address of the ADOPTED by the City, voter, (d) the date of sign- Council of the City of New- ing and place of execution port Beach on June 12, of the declaration pursuant 1995. to clause (b) above; and /s/ John W. Hedges (e) a notice that the en- John W. Hedges, Mayor velope contains an official ATTEST: ballot and is to be opened only by the canvassing /s/ Wanda E. Ragglo board., Wanda E. Ragglo, City Analysis and arguments Clerk with respect to the ballot Published Newport measures are hereby Beach -Costa Mesa Daily waived, as provided in Sec- Pitot June 15, 1995. tion 317 of the Code. th875 Section 7. The shall accept the ballots of the qualified electors in her office or in the City Council Chambers to and including 7:00 p.m. on June 26, 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 8. The City Coun- cil hereby further finds that 24005-02 JHHW:GH:bct 5/16/95 NOTICE OF PUBLIC HEARING CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) Notice is hereby given that on May 8, 1995, the City Council of the City of Newport Beach adopted a Resolution entitled "A Resolution of the City Council of the City of Newport Beach Declaring Intention to Incur Bonded Indebtedness of the Proposed City of Newport Beach Special Improvement District No. 95-1 (CIOSA)". Pursuant to Section 703 of the City of Newport Beach Special Improvement District Financing Code (the "Code"), the City Council hereby gives notice as follows: A. The text of said Resolution is as follows: WHEREAS, the City Council (the "City Council") of the City of Newport Beach (the "City") has this date adopted its 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", stating its intention to form a special improvement district pursuant to the City of Newport Beach Special Improvement District Financing Code (the "Code"), for the purpose of financing certain public improvements (the "Facilities"), as further provided in said Resolution; WHEREAS, the City Council estimates the amount required for the financing of the Facilities to be not more than $29,000,000; and WHEREAS, in order to finance said Facilities it is necessary to incur bonded indebtedness in the amount of up to $29,000,000; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: Section 1. It is necessary to incur bonded indebtedness within the boundaries of the proposed City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District") in the amount of up to $29,000,000 to finance the costs of the Facilities. Section 2. The bonded indebtedness is proposed to be incurred for the purpose of financing the costs of the Facilities, including construction costs and all costs incidental to or connected with the accomplishment of said purposes and of the financing thereof, as permitted by Section 702 of the Code. Section 3. The City Council, acting as legislative body for the District, intends to authorize the issuance and sale of bonds in the maximum aggregate principal amount of not to exceed $29,000,000, bearing interest payable semi- annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and maturing not to exceed 40 years from the date of the issuance of said bonds. Section 4. Monday, June 12, 1995, at 7:00 p.m., in the regular meeting place of the City Council, Council Chambers, City Hall, 3300 Newport Boulevard, Newport 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 District, will conduct a public hearing on the proposed debt issue and consider and finally determine whether the public interest, convenience and necessity require the issuance of bonds of the City for the District. Section 5. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper of general circulation circulated within the District. The publication of said notice shall be completed at least seven days before the date herein set for said public hearing. Said notice shall contain the information prescribed by Section 7.03 of the Code. Section 6. The officers and employees of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. Section 7. This Resolution shall take effect immediately upon its adoption. B. The hearing referred to in the aforesaid Resolution shall be at the time and place specified in said Resolution. C. At that time and place the testimony of all interested persons, including persons owning property in the area of the proposed District, will be heard. Dated: 6--77-K 1995 2 /s/ Wanda E. Raggio City Clerk, City of Newport Beach 24005-02 JHHW:GH:bct 5/16/95 NOTICE OF PUBLIC HEARING CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) Notice is hereby given that on May 8, 1995, the City Council of the City of Newport Beach 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". Pursuant to the City of Newport Beach Special Improvement District Financing Code, the City Council of the City of Newport Beach hereby gives notice as follows: A. The text of said Resolution of Intention is as follows: WHEREAS, the City Clerk of the City of Newport Beach (the "City") has received a written petition (the "Petition") from the owners of not less than 10% of the area of land proposed to be included within a special improvement district (the "District"), the proceedings for the formation of which District are as hereafter provided; WHEREAS, under the City of Newport Beach Special Improvement District Financing Code (the "Code"), the City Council of the City (the "City Council") is the legislative body for the proposed District and is empowered with the authority to establish the District; and WHEREAS, on the date hereof the City Council adopted a Resolution acknowledging receipt of the Petition and now desires to proceed with the establishment of the District as contemplated by said Resolution; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: Section 1. The City Council proposes to conduct proceedings to establish a special improvement district pursuant to the Code. Section 2. The name proposed for the District is "City of Newport Beach Special Improvement District No. 95-1 (CIOSA)". Section 3. The proposed boundaries of the District are as shown on the map of the District on file with the City Clerk, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, said map of the boundaries of the District in the office of the County Recorder within fifteen days of the date of adoption of this Resolution. Section 4. The public facilities proposed to be financed by the District and pursuant to the Code shall consist of those items listed as facilities on Exhibit A hereto and by this reference incorporated herein (the "Facilities"). The City Council hereby finds and determines that the public interest will not be served by allowing the property owners in the District to enter into a contract in accordance with Section 323 of the Code; however the City may enter into one or more contracts directly with any of the property owners with respect to the construction and/or operation of the Facilities. Section 5. Except to the extent that funds are otherwise available to the District to pay for the Facilities and/or the principal and interest as it becomes due on bonds of the District issued to finance the Facilities, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the District, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto and by this reference incorporated herein. The conditions under which the obligation to pay the specified special tax may be prepaid and permanently satisfied are specified in Exhibit B hereto. In the case of any special tax to pay for the Facilities and to be levied against any parcel used for private residential purposes, (i) the maximum special tax shall be specified as a dollar amount which shall be calculated and thereby established not later than the date on which the parcel is first subject to the tax because of its use for private residential purposes, which amount shall not be increased over time except that it may be increased by an amount not to exceed 2% per year, (ii) the tax year after which no further special tax subject to this sentence shall be levied or collected shall be as set forth in Exhibit B hereto, and (iii) under no circumstances will the special tax levied against any parcel subject to this sentence be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the district by more than 10%. For purposes of this paragraph, a parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. Section 6. It is the intention of the City Council acting as the legislative body for the District to cause bonds of the City to be issued for the District pursuant to the Code to finance in whole or in part the construction of the Facilities. Said bonds shall be in the aggregate principal amount of not to exceed $29,000,000, shall bear interest payable semi-annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. Section 7. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the District at a special election. The proposed voting procedure shall be by mailed or hand -delivered ballot among the landowners in said proposed District, with each owner having one vote for each acre or portion of an acre such owner owns in the District. Section 8. The Director of Public Works/City Engineer of the City, as the officer having charge and control of the Facilities in and for the District, is hereby directed to study said proposed Facilities and to make, or cause to be made, and file with the City Clerk a report in writing, presenting the following: (a) A brief description of the Facilities by type which will be required to adequately meet the needs of the District. (b) An estimate of the fair and reasonable cost of the Facilities, including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 702 of the Code. Said report shall be made a part of the record of the public hearing provided for below. Section 9. Monday, June 12, 1995, at 7:00 p.m., in the regular meeting place of the City Council, Council Chambers, City Hall, 3300 Newport Boulevard, Newport 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 District, will conduct a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special tax. Section 10. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall contain the information prescribed by Section 3.07 of the Code. Section 11. The officers and employees of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. Section 12. This Resolution shall take effect immediately upon its adoption. B. The exhibits to the Resolution which describe the facilities to be financed and the rate and method of apportionment of the special taxes for the district are on file in the office of the City Clerk. C. The time and place established under said Resolution for the public hearing required under the Code are Monday, June 12, 1995, at 7:00 p.m., in the regular meeting place of the City Council of the City of Newport Beach, Council Chambers, City Hall, 3300 Newport Boulevard, Newport Beach, California. D. At said hearing, the testimony of all interested persons or taxpayers for or against the establishment of the District, the extent of the District or the furnishing of the specified types of public facilities will be heard. Any person interested may file a protest in writing as provided in Section 309 of the Code. If fifty percent or more of the registered voters, or six registered voters, whichever is more, residing in the territory proposed to be included in the District, or the owners of one-half or more of the area of land in the territory proposed to be included in the District and not exempt from the special tax, file written protests against the establishment of the District, and the protests are not withdrawn so as to reduce the value of 3 the protests to less than a majority, the City Council shall take no further action to create the District or levy the special taxes for period of one year from the date of the decision of the City Council, and if the majority protests of the registered voters or of the landowners are only against the furnishing of a type or types of facilities within the District, or against levying a specified special tax, those types of facilities or the specified special tax will be eliminated from the proceedings to form the District. E. The proposed voting procedure shall be by special mail or hand -delivered ballot to the property owners within the territory proposed to be included in the District. Dated: E/1- 'r 1995 4 /s/ Wanda E. Raggio City Clerk, City of Newport Beach Authorized to Publish Advertisements of all kir.. 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 I 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. 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; May 22, 1995 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on May 22 199 at Costa Mesa, California. Signature �7 S9 PUBLIC NOTICE j NOTICE OF " y PUBLIC HEAR CITY OF f NEWPORT BEACH > SPECIAL IMPROVEMENT DISTRICT NO.95.1 (CIOSA) Notice is hereby giver that on May 8, 1995, thr City Council of the City o Newport Beach adopted : Resolution entitled "A Res olution of the City Counci of the City of Newpor Beach Declaring Intention' to Incur Bonded Indebted ness of the Proposed Cit of Newport Beach Specia Improvement Distric No.95-1 (CIOSA)". Pursu ant to Section 703 of the City of Newport Beach Special Improvement Dis trict Financing Code (the "Code"), the City Counci hereby gives notice as fol- lows: A. The text of said Res- olution is as follows: WHEREAS, the City Coun- cil (the "City Council") of the City of Newport Beach (the ' City") has this date adopted its Resolution en- titled "A Resolution of the City Council of the City of Newport Beach Declaring Intention to Establish a Special Improvement Dis- trict and to Authorize the Levy of Special Taxes", stating its intention to form a special improvement dis- trict pursuant to the City of Newport Beach Special Im. provement District Financ- ing Code (the 'Code"), for the purpose of financing certain public im- provements (the "Facili- ties") as further, providec in said Resolution; WHEREAS, the City Coun• cil estimates the amount required for the financincot of the Facilities to be n more than $29,000,000; and WHEREAS, in order to fi• nance said Facilities it is necessary to incur bonded indebtedness in the amount of up to $29,000,000; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New- port Beach as follows: Section 1, It is necessary to incur bonded indebted- ness within the boundaries of the proposed City of Newport Beach Special im. provement District No.95-1 (CIOSA) (the "District") in the amount of up to $29,000,000 to finance the costs of the Facilities. Section 2. The bonded in- debtedness is proposed to be incurred for the purpose of financing the costs of the Facilities, including construction costs and all costs incidental to or con- nected with the ac- complishment of said pur. poses and of the financing' thereof, as permitted by Section 702 of the Code. Section 3. The City Coun- cil, acting as legislative body for the District, in. tends to authorize the issu- ance and sale of bonds in the maximum aggregate principal amount of not to exceed $29,000,000, bear- ing Interest payable semi- annually or in such other manner as the City Council Yshall determine, at a rate not to exceed the maxi• t mum rate of interest as may be authorized by ap- plicable law at the time o1 sale of such bonds, and maturing not to exceed 40 years from the date of the issuance of said bonds. Section 4. Monday, June 12, 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 debt issue and consider and finally determine whether the public interest, convenience and necessity require the issuance of bonds of the City for the District. Section 5. 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 of general .circulation circulated within the Dis- trict. The publication of said notice shall be com- pleted at least seven days before the date herein set for said public hearing. Said notice shall contain the information prescribed by Section 7.03 of the Code. Section 6. The officers and employees of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desir- able to accomplish the pur- poses of this Resolution and not inconsistent with the provisions hereof. Section 7. This Resolution 'shall take effect im- I mediately upon its adop- tion. B. The hearing referred to in the aforesaid Resolution shall be at the time and place specified in said Res- olution. C. At that time and place the testimony of all Inter- ested persons, including persons owning property in, the area of the proposed District, will be heard. Dated: 5.17.95 /s/ W:Snda.E. Ragglo City Clerk, City of Newport Beach Published Newport Beach -Costa Mesa Daily Pilot May 22, 1995. _____M840.,3 Authorized to Publish Advertisements of all kir... Including public notices by Dccrec of the Superior Court of Orange County, Califo(nia. Number A•6214, September 29, 1961, and A•24831 June 11, 1963. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. County of Orange ) I 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; May 22, 1995 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on May 22 199-5 at Costa Mesa, California. Signature a)•°Nm'C m0«NCON ,Q.- 0) OOCa C QN.CLO U) NO30" O.. 20 E -CY)c_-a1XNwa `Lal .0U m0tLALN@'�U@OQL'pa•O p�j�m _�:i l0 �i z ui 3 C 0'- y «'!n L L �.... w r« a- v> N N U. O'-', mdC U) ,. m a .0 a C) Z w W Oa'p -o- 2-oJ2 CONN Ca'0 Ue TL•C "' @.+wC m E y 0 �. 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Oe�LLC24SZa8 - '-Uo� yw7°-a mo�yoN U3ccNpN �E vi aci-L" 0006 L@c0:=0 =m oL'ocENNo,..-°) °)No='ATE ��' m°0o-'o aro0 <a)CUi°7Na�ioUOVo 1Y N @._ 3 @... c �= o N w"_ o c'c m N 0y _ p E W VWF-OL orocNT° m°o No -=m X- tn- L @cam m ¢o m��toE @¢ rn@ N I->_@c°v o" o-op@N L)M=TD NV Naa)o o-r-0U7',ja N6 N d @() t U= �W>V NA=NNL pL -'ZEc° �°. ¢Ur@'�o--6 N awdaEicr N� -� °acaoac �umoQN�7._a @Z c -C c2o'.9LovcLo'cN C`2CNo� -0 a) NL F- O U NN. c p U N ._ NNNN O m'= N• -a- v pc 7,-•- U= N@oma- @Lc �c F ci O4 V' - Cmc U [NUI -@7 w d N EV a[t3> d NLN UWO~-._N.Oo�i c pap U. do?TN� N7N N LNm oo @7onti/LF CL Q ._c� 03 ZmVaya� N 7-000 w NN N XO -C ° Oct C N� NLa. N OOC N�LU6W NO C'o -• L•y=0) oo U C O(O7aN O QU(OOUOU�p LOQE 3LdNd1 pL CfLa' UCdU- 3 ~ UCOO7CNL E`p@ @LLU ayF o>iwrpN Co 0L0 ~uloxZ aro°"' c7Nzi da CN O N d-'Z¢i�OdN'UON.` Q. (O 9d0- gUl OU Q_L NN F p _3N O= @>N °= O � E Uo=Z5 Mp L@YO OE« O 7 W o 09-ow.>L_TN�-T 3_ N'd�3o opa 0_c: 0. Z O ZIC6 o) 0.2 w °� °=°�UZo)¢oo>'omUZ_0-a3 a: �<UZrt o om ° n¢'uUm Authorized to Publish Advertisements of all kine, Including public notices by Decree of the Superior Court of Orange County, California. Number A-6214, September 19, 1961, and A-24831 June 11, 1963. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. County of Orange ) I 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: May 22, 1995 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on May 22 199 _5____, at Costa Mesa, California. Signature PUBLIC NOTI NOTICE OF PUBLIC HEARING CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO.95.1 Notice is hereby given that on May 8, 1995, the City Council of the City of Newport Beach adopted a Resolution entitled "A Res. olution of the City Council of the City of Newport Beach Declaring Intention to Incur Bonded Indebted. ness of the Proposed City of Newport Beach Special Improvement District No.95-1 (CIOSA)". Pursu- ant to Section 703 of the City of Newport Beach Special Improvement Dis- trict Financing Code (the "Code"), the City Council hereby gives notice as fol- lows: A. The text of said Res. olution is as follows: WHEREAS, the City Coun. cil (the "City Council") of the City of Newport Beach. (the 'City") has this date adopted its Resolution en. titled "A Resolution of the City Council of the City of. Newport Beach Declaring Intention to Establish a Special Improvement Dis. trict and to Authorize the Levy of Special Taxes", stating its intention to form a special improvement dis. trict pursuant to the City of Newport Beach Special Im-f provement District Financ. ing Code (the "Code"), for the purpose of financing) certain public im-', provements (the "Facili-I ties"), as further provided in said Resolution; WHEREAS, the City Coun- cil estimates the amount required for the financing of the Facilities to be not more than $29,000,000; and WHEREAS, in order to fi- nance said Facilities it is necessary to incur bonded indebtedness in the amount of up to $29,000,000; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New- port Beach as follows: Section 1. It is necessary to incur bonded indebted- I ness within the boundaries of the proposed City of Newport Beach Special Im. provement District No.95.1 (CIOSA) (the "District") in the amount of up to $29,000,000 to finance the costs of the Facilities. Section 2. The bonded in- debtedness is proposed to be incurred for the purpose of financing the costs of the Facilities, including construction costs and all costs incidental to or con. nected with the ac- complishment of said pur- poses and of the financing thereof, as permitted by Section 702 of the Code. Section 3. The City Coun. cil, acting as legislative, body for the District, in- tends to authorize the issu t ance and sale of bonds in the maximum aggregate principal amount of not to exceed $29,000,000, bear- ing interest Pavable semi- annually or in -such othei manner as the City Counci. shall determine, at a rate not to exceed the maxi• mum rate of interest as may be authorized by ap. plicable law at the time of sale of such bonds, and maturing not to exceed 40 years from the date of the issuance of said bonds. Section 4. Monday, June 12, 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 debt issue and consider and finally determine whether the public interest, convenience and necessity require the issuance of bonds of the City for the District. Section 5. 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 of general circulation circulated within the Dis- trict. The publication of said notice shall be com- pleted at least seven days before the date herein set for said public hearing. Said notice shall contain the information prescribed by Section 7.03 of the Code. Section 6. The officers and employees of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desir- able to accomplish the pur- poses of this Resolution and not inconsistent with the provisions hereof. Section 7. This Resolution shall take effect im- mediately upon its adop- tion. B. The hearing referred to in the aforesaid Resolution shall be at the time and place specified in said Res- olution. C. At that time and place the testimony of all inter- ested persons, including P ersons owning property in he area of the proposed District, will be heard. Dated: 5.17.95 /s/ Wanda E. Ragglo City Clerk, City of Newport Beach Published Newport 3each-Costa Mesa Daily 'ilot May 22, 1995. m840 Authorized to Publish Advertisements of all kine. including public notices by Ocoee of the Superior Court of Orange County, California. Number A•6214, Septcmber 19, 1961, and A•24831 June 11, 1961, PROOF OF PUBLICATION STATE Of CALIFORNIA) ) ss, County of Orange ) I 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. 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: May 22, 1995 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on May 22 199-5 at Costa Mesa, California. _zx Signature CHARLES F. ADAMS STEVEN R. CASALEGGIO MICHAEL D. CASTELLI THOMAS A. DOWNEY ANDREW C. HALL, Jit. GREG HARRINGTON CHRISTOPHER H. LYNCH WILLIAM H. MADLSON DAVID.I. OS CER BRIAN D. QUINT PAULJ. THIMJ-1IG DAVID A. WALTON SHARON Sr ANTON W=E ,-JONES HALL HILL & WHITE, A PROFESSIONAL LAW CORPORATION ATTORNEYS AT LAW June 2, 1995 VIA FEDERAL EXPRESS r To: Distribution FOUR EMBARCADERO CENTER NINETEENTH FLOOR SAN FRANCISCO, CA 94111 (415) 391-5780 FACSIMILE. (415) 391-5784 E-MAIL: gharrington@jhhw.com KENNETH L JONES OF COUNSEL ROBERT J. HILL (1922-1988) Re: City of Newport Beach Special Improvement District No. 95-1 (CIOSA) Special Tax Bonds Ladies and Gentlemen: As most of you know, the election for the City of Newport Beach Special Improvement District No. 95-1 (CIOSA) (the "District"), which was originally scheduled for June 12, 1995, has been rescheduled for June 26, 1995. Therefore, the proceedings to be undertaken on June 12, 1995 will include only those matters up to and including the calling of the special election. For the City Council meeting of June 12, 1995, enclosed please find the following: 1. Order of Proceedings for Hearings. The Order sets forth the agenda to be followed to conduct the hearings and for the adoption of the items needed to complete the formation of the District and to call the election. .2. Special Improvement District Report. The Report describes the facilities to be provided by the District. The Director of Public Works/City Engineer was directed to prepare the Report by the first Resolution of Intention adopted for the District on May 8, 1995. Exhibit B to the Report is required to set forth the estimated costs of the various facilities and the costs to issue the bonds and to administer the District. I will work with Dennis Danner, John Gibson and Dan Tonini to complete Exhibit B prior to the City Council meeting. One copy of the completed Report must be signed by the Director of Public Works/City Engineer and filed with the City Clerk by June 12, 1995. To: Distribution June 2, 1995 Page 2 3. Resolution of Formation. This Resolution officially forms the District, authorizes the special taxes to be collected and calls for the required landowner vote on the levy taxes and the establishment of an appropriations limit for the District. The exhibits to this Resolution describe the facilities to be financed and the formula by which the special taxes will be levied in the District. I am hereby requesting John Murphy to provide to the City Clerk a conformed copy of the Rate and Method of Apportionment for insertion as Exhibit A to the Resolution. 4. Resoluiion Determining Necessity to Incur Bonded Indebtedness. This Resolution makes the determination to issue bonds to be paid from the special taxes levied within the District. The Resolution also calls for the required landowner vote on the issuance of bonds. 5. Resolution Calling Special Election. This Resolution sets the election for June 26, 1995 and provides the form of the special ballot to be used by the landowner voter. 6. Official Ballot and Envelope. This is the ballot material to be used by the landowner voter to vote in the election. By its copy hereof, The Irvine Company is requested to use the Ballot and Envelope to vote at the June 26, 1995 election. I have included in Bob Burnham's package a floppy disk containing copies of the above items. If you have any questions or comments, please do not hesitate to call. Very truly yours, 2400502 JHHW:GH:bct City of Newport Beach Special Improvement District No. 95-1 (CIOSA) Special Tax Bonds Distribution List ISSUER -Kevin Murphy, City Manager -Robert Burnham, Esq., City Attorney -Dennis Danner, Finance Director -Don Webb, Director of Public Works/City Engineer CITY OF NEWPORT BEACH 3300 Newport Boulevard Newport Beach, California 92663 (714) 644-3309 (Murphy/Danner) (714) 644-3131 (Burnham) (714) 6443311 (Webb) (714) 6443020 (Murphy/Danner-Fax) (714) 644-3139 (Burnham -Fax) (714) 644-3318 (Webb -Fax) DEVELOPER -Dan Tonini -Norman E. Witt THE IRVINE COMPANY 550 Newport Center Drive Newport Beach, California 92660-9959 (714) 720-2884 (Tonin) (714) 720-2129 (Witt) (714) 720-9453 (Tonin Fax) (714) 720-2111 (Witt Fax) DEVELOPER'S COUNSEL -John Murphy, Esq. STRADLING, YOCCA, CARLSON & RAUTH 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660 (714) 640-7035 (714) 725-4100 (Fax) LAX CONSULTANT -Peter Placey GOVERNMENT FINANCE GROUP 3200 Bristol Street, Suite 500 Costa Mesa, California 92626 (714)540-3200 (714) 540-3232 (Fax) 6/2/95 BOND COUNSEL -Greg Harrington, Esq. -Sharon Stanton White, Esq. (Tax Matters) JONES HALL HILL & WHITE, A Professional Law Corporation 4 Embarcadero Center, 19th Floor San Francisco, California 94111 (415) 391-5780 (415) 391-5784 (Fax) UNDERWRITER -John H. Gibson STONE & YOUNGBERG 4350 La Jolla Village Drive, Suite 840 San Diego, California 92122 (619) 452-0556 (619)452-6131 (Fax) UNDERWRITER'S COUNSEL -Samuel Sperry, Esq. ORRICK, HERRINGTON & SUTCLIFFE 400 Sansome Street San Francisco, California 94111 (415) 773-5467 (415) 773-4246 (Fax) JoNE S HALL HILL & WHITE, A PROFESSIONAL LAW CORPORATION CHARLES F. ADAMS STEPHEN R. CASALEGGIO MICHAEL D. GASTELLI THOMAS A. DOWNEY ANDREW C. HALL, JR. GREG HARRINGTON CHRISTOPHER K. LYNCH WILLIAM H. MADISON DAVID J. OSTER BRIAN D. QUINT PAUL J. THIMMIG DAVID A. WALTON SHARON STANTON WHITE Wanda E. Raggio, City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 ATTORNEYS AT LAW May 16, 1995 FOUR EMBARCADERO CENTER NINETEENTH FLOOR SAN FRANCISCO, CA 94111 (415) 391-5780 FACSIMILE (415) 391-5784 KENNETH I. JONES OF COUNSEL ROBERT J. HILL (1922-1988) Re: City of Newport Beach Special Improvement District No. 95-1 (CIOSA) Instructions re Recording and Publication Dear Ms. Raggio: On May 8, 1995, the City Council adopted two resolutions of intention for the above district. Those resolutions required that certain actions be done by the City Clerk. To comply with those requirements, I enclose: 1. Notice of Public Hearing (Re Establishment of Special Improvement District); and 2. Notice of Public Hearing (Re Incurring Bonded Debt for Special Improvement District). Publications of Notices Both of the enclosed notices must be published once in a local newspaper circulated in the City of Newport Beach. The publications must occur not later than June 5, 1995. When arranging for publication, please have the newspaper provide you with two affidavits or legal proofs of publication for each notice. When you receive them, retain one of each for your files and send the other two to me for the official bond transcript. The costs of publication are to be reimbursed from the bond issue. Recording the Map The first resolution of intention (A Resolution of Intention to Establish a Special Improvement District and to Authorize the Levy of Special Taxes) requires that the Boundary Map of the district be completed and recorded. This must be done not later than May 26, 1995. A representative of The Irvine Company will provide you with a Boundary Map prepared in proper form. In order to complete the Boundary Map for recording, please follow the steps set forth below: Wanda E. Raggio, City Clerk City of Newport Beach May 16, 1995 Page 2 a. The small Clerk's filing certificate must be completed to show a date that is not later than May 8, 1995 (the date of adoption of the first resolution of intention); b. The long Clerk's certificate must be completed to show the date of adoption and number of the first resolution of intention and be signed by the Clerk; and c. The County Recorder's certificate must be completed by the County Recorder (or Deputy) to show recording not later than May 26, 1995. When arranging for recording, please have two extra copies of the completed and recorded map provided to you. Retain one copy for your files and send the other to me for the transcript. By copies hereof, I am requesting that Don Webb and Norm Witt help with the Boundary Map completion and recording process. Thank you for your assistance and cooperation. If you have any questions please do not hesitate to call. Very truly yours, Greg . gton Enclosure cc: Don Webb Norm Witt