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HomeMy WebLinkAbout10 - CIOSA Resolutions/OrdinanceCouncil Agenda Item #-. 20 CITY OF NEWPORT BEACH DEPARTMENT OF FINANCE Interdepartmental Memorandum September 29, 1995 (6s') /0 ��.._.. ,.._,_._-........., BY THE Ui CG�.l"V i'I • CITY OF NEWPORT BEACH OCT 191995 2"/?,/i 93-sV- TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dennis Danner, Director of Finance 4404, SUBJECT: CIOSA RESOLUTION S/0RDINANCE 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: 1. Proceedings to Exclude Extraneous Parcel, a. Resolution Ordering Correction of Clerical Errors; b. First Amendment to Notice of Special Tax Lien; and c. Amended boundary Map Instructions. 10 CIOSA FINANCING DISTRICT Page Two 2. Proceedings to Alter Rate and Method of Apportionment a. Order of Proceedings; b. Resolution Calling 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 Halill l Professional Law corporation. It is further recommended that the City Council considerthe Proceedings to Issue Bonds at the Special Council Meeting of October 19, 1995. 10/03/95 8:57 AM CIOSA.DOC 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 6, 1995, as Document No. 95-0288272. 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 9,1995 By: _ Wanda E. Raggio, City Cie , 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. Frederick Aladjem I-1 442-271-12 RECORDING REQUESTED BY AND AFFER 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 6, 1995, as Instrument No. 95-0288272. 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 9,1995 By. Wanda E. Raggio, City Cle SCHEDULE I CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT DISTRICT NO. 95-1 (CIOSA) AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX I-1 SCHEDULE I AMENDED AND RESTATED RATE AND METHOD OF APPORTIONINIENT FOR CITY OF NEWPORT BEACH SPECIAL IMPROVEMENT 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. al rovement District 'CIOSA District' means N°r� Beache Code and asPt may be amendedlf from time to (CIOSA) as formed by the City pursuant 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 a rein and asts into may mobeney is to be deposited and from which money is to be expended as provided 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 in the l of CIOnds, SA 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 Agreementand (eFearnings derived from the investment of amounts on deposit in the CIOSA District Imp "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. hereto. "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. LA kA 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 (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; (n) 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 q�'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 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. Block 800, Corporate te Plaza, Corporate Plaza West, means Bayview Landing, orter North, San Diego Creek or Freeway Reservation, Newport Village - PCH/MacArthur, Newp 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. 'Zane Prepayment Amount' means the respective amount set forth in the following table minus the product of such amount tunes 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 t forth 'Zone Special Tax' means, for FiscaYear 96, the respective amont Fis al Year 1995-96, oneehundredntwo the following table and, for each Fiscal Yearsubsequent LAS 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 LA I 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 Dbt Service however, that in no reent, the pedal Tax shall be levied Proportionately on all Undeveloped Property, p vent 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 wtin a Zone hich was of Share included in Zone the estimate of Taxable Property made pursuant to clause (b)("i) of t Area' and which first became Property Owner Association Property subsequent to the date of recordation of the Initial Final Subdivision Map or (b) Public Pro 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 ftro deof se or through cquisition through o gent negotiated transaction (other than the CIOSA Agreement) or by g' 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 TQ �� hoor, may that file a notice with the CIOSA District appealing the amount of the Special in pr of the actual Special if Bonds are outstanding any appeal must be accompanied by payment and, if necessary, Tax levied. A representative of the CIOSA District will then review the appeal 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 pad �n it shall be refunded from available Special Taxes levied and collected in the following Fiscal 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 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 res parcelcel is lmay be ppepaid in part byior to the to the l issuance of Bonds, the Special Tax applicable to any Asses 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. Af3er 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 (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 Cin 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 117-841-12 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 53 EXHIBIT A-1 24005 M JHHW:CH-bd Snb� 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 e 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 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 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 5 � 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 (C10SA) (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. Ss titioner or receiving es is: 6. Mailine Address. The address of the each f California 926b0,cAttentione Irvine Company, 550 Newport Center Drive, Newport Vice president and General Counsel Land Development Group. This petition is dated August 21, 1995. The Irvine Company, ichigan corporation By. V Its: . 141044A 2&,,AUDr By: -2- 5� 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 SCHEDULER 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