Resolution 2006-52
RESOLUTION NO. 2006-52
RESOLUTION DECLARING RESULTS OF SPECIAL ELECTION
TO AMEND RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
City of Gilroy
Community Facilities District No. 2000-1
(Highway 152)
WHEREAS, the City Council of the City of Gilroy (the "City") has conducted proceedings
under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter
2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California
Government Code (the "Act"), to form City of Gilroy Community Facilities District No. 2000-1
(Highway 152) (the "CFD"), to authorize the levy of special taxes upon the land within the CFD,
and to issue bonds secured by the special taxes, the proceeds of which are to be used to
finance certain public improvements, all as described in those proceedings; and
WHEREAS, the City previously issued the City of Gilroy Community Facilities District
No. 2000-1 (Highway 152) Special Tax Bonds, Series 2002 (the" 2002 Bonds") in the initial
principal amount of $7,185,000; and
WHEREAS, the Rate and Method of Apportionment of Special Tax for the CFD (the
"Rate and Method"), attached as Exhibit B to the City Council's Resolution No. 2000-87 adopted
by the City Council on December 18, 2000, authorizes the levy of a "Special Tax" in the CFD in
any fiscal year to pay the "Highway 152 Special Tax Requirement" and lor the "Supplemental
Bonds Special Tax Requirement"; and
WHEREAS, the Highway 152 Special Tax Requirement generally is defined in the Rate
and Method as the amount necessary to pay principal and interest on "Highway 152 Bonds", to
create or replenish reserve funds for Highway 152 Bonds, to cure delinquencies in the payment
of principal or interest on Highway 152 Bonds, and to pay administrative expenses not
associated with "Supplemental Bonds"; and
WHEREAS, Highway 152 Bonds are defined in the Rate and Method as bonds or other
debt issued by the CFD to pay for the construction or acquisition of improvements to Highway
152; and
WHEREAS, the Supplemental Bonds Special Tax Requirement generally is defined in
the Rate and Method as the amount necessary to pay principal and interest on Supplemental
Bonds, to create or replenish reserve funds for Supplemental Bonds, to cure delinquencies in
the payment of principal or interest on Supplemental Bonds, and to pay administrative expenses
not associated with Highway 152 Bonds; and
WHEREAS, Supplemental Bonds are defined in the Rate and Method as any bonds, the
debt service on which are secured by the Supplemental Special Tax in an Improvement Area
(as defined in the Rate and Method) within the CFD that have been issued to pay for public
facilities other than improvements to Highway 152; and
WHEREAS, the Rate and Method dictates that Supplemental Bonds sold to fund
improvements within an Improvement Area shall be secured solely by special taxes collected
within that Improvement Area and that no special tax shall be levied in any Improvement Area to
RESOLUTION NO, 2006-52
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pay debt service on Supplemental Bonds sold to fund improvements in another Improvement
Area; and
WHEREAS, pursuant to the Rate and Method, the Maximum Special Tax in
Improvement Area NO.1 is $2,046 per Acre (subject to annual increase) until such time as
Supplemental Bonds are issued for public improvements within Improvement Area # 1 of the
CFD ("Improvement Area #1"), at which time the Maximum Special Tax increases to $15,262
per Acre (subject to annual increase); and
WHEREAS, the Series 2002 Bonds are Highway 152 Bonds as defined in the Rate and
Method and are secured by special taxes levied throughout the CFD, Le., in Improvement Area
#s 1 through 8, up to the Maximum Special Tax specified for Highway 152 Bonds in each
Improvement Area; and
WHEREAS, the City has been asked by the owner of the property in Improvement Area
# 1 (i) to issue bonds to finance acquisition and construction of certain public facilities other than
improvements to Highway 152 and (ii) to amend the Rate and Method as it applies to the
Special Tax levied in Improvement Area #1 to pay the Supplemental Bond Special Tax
Requirement; and
WHEREAS, the City Council has received a petition from the owner of the property in
Improvement Area #1 with respect to the proposed amendment of the Rate and Method; and
WHEREAS, Section 53331(a) of the Act authorizes the City Council, if it determines that
the public convenience and necessity require a change in the Rate and Method, to adopt a
resolution of consideration to alter the Rate and Method; and
WHEREAS, the City Council has determined that the proposed amendment to the Rate
and Method would not adversely impact owners of the Series 2002 Bonds because the
proposed amendment will not impact the Special Tax levied to pay the Highway 152 Special
Tax Requirement; and
WHEREAS, the City Council, acting as the legislative body of the CFD, adopted
"Resolution Calling Special Election To Amend Rate and Method of Apportionment of Special
Tax" calling for a special landowner election of the qualified electors within Improvement Area
#1 to be held on July 17, 2006; and
WHEREAS, the special election was held on July 17, 2006, and the ballots were
submitted to the City Clerk as the official conducting the election; and
WHEREAS, the Clerk has completed a Canvass and Statement of Results of Election
(Canvass), a copy of which is attached as Exhibit "A", and the City Council hereby approves the
Canvass.
NOW THEREFORE, be it resolved as follows:
1. The issue presented at said special election was the approval of an Amendment
NO.1 to Rate and Method of Apportionment of Special Tax.
RESOLUTION NO. 2006-52
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2. Pursuant to said Canvass on file with the Clerk, the issue presented at said
special election was approved by the qualified electors within Improvement Area #1 by more
than two-thirds (2/3) of the votes cast at said special election.
3. It is hereby found that all prior proceedings and actions taken by this City Council
with respect to the CFD, including but not limited to Improvement Area #1, were valid and in
conformity with the Act.
4. The Clerk is hereby directed to execute and cause to be recorded in the office of
the County Recorder of the County of Santa Clara an Amended Notice of Special Tax Lien for
Improvement Area #1 in the form required by the Act, said recording to occur no later than
fifteen (15) days following adoption by the City Council of this Resolution.
5. This Resolution shall take effect upon its adoption.
PASSED AND ADOPTED this 17th day of July, 2006 by the following vote:
AYES:
COUNCILMEMBERS: ARELLANO, BRACCO, CORREA, GARTMAN,
V ALlQUETTE, VELASCO, and PINHEIRO
NOES:
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
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ATT....~~T~.. .___
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. / - IYL/;;t!I( Lt[-L-t-e4!'-
Rhonda Pellin, City Clerk
RESOLUTION NO. 2006-52
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EXHIBIT A
CANVASS AND STATEMENT OF RESULT OF ELECTION
City of Gilroy
Community Facilities District No. 2000-1
(Highway 152)
I hereby certify that on July 17, 2006, I canvassed the returns of the election held on July
17, 2006, in Improvement Area #1 of City of Gilroy Community Facilities District No. 2000-1
(Highway 152), and the total number of ballots cast in said District and the total number of votes
cast for and against the measure are as follows, and the totals as shown for and against the
measure are full, true and correct:
Qualified
Landowner
Votes
Votes
Cast
YES
NO
Improvement Area #1 of City of Gilroy Community Facilities District No,
2000-1 Special Election - July 17, 2006
109
loq
..L
BALLOT MEASURE: Shall the Rate and Method of Apportionment of Special Tax for the
City of Gilroy Community Facilities District No. 2000-1 (Highway 152) be amended as set forth
in Amendment NO.1 to Rate and Method of Apportionment of Special Tax, a copy of which
Amendment NO.1 has been provided to me and which I have read and approved, as it relates
to the levy of the Special Tax in Improvement Area #1 to pay the Supplemental Bond Special
Tax Requirement?
IN WITNESS WHEREOF, ~HAVE HE) ~NTO SET 1;lY RA' THIS 17th DAY OF
JUL Y 2006.//
\...._.-, ,/ 7/:, -- /J ~ #' ,,_ )
By: -'C (~
City Clerk
RESOLUTION NO. 2006-52
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I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2006-52 is an original resolution, or true and correct copy of a city resolution,
duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the
17th day of July, 2006, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 24th day of July, 2006.
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~~~~~,
City Clerk of the City of Gilroy
(Seal)