Resolution 2006-53
RESOLUTION NO. 2006-53
RESOLUTION OF CHANGE
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. 2006-53
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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 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 City Council subsequently adopted "Resolution Declaring Result of
Special Election to Amend Rate and Method of Apportionment of Special Tax" on July 17, 2006,
in which it found that two-thirds of the votes cast at the election were in favor of the proposed
amendment of the Rate and Method.
NOW, THEREFORE, be it resolved as follows:
1. The City Council hereby approves Amendment No. 1 to Rate and Method of
Apportionment of Special Tax, attached hereto as Exhibit "A".
RESOLUTION NO, 2006-53
-2-
2. Hereafter, the special taxes levied in Improvement Area #1 to satisfy the
Supplemental Bonds Special Tax Requirement shall be levied in accordance with Amendment
NO.1 to Rate and Method of Apportionment of Special Tax.
3. The City Clerk is hereby directed to complete, execute and cause to be recorded
in the office of the County Recorder of the County an Amendment NO.1 to Notice of Special Tax
Lien in the form required by the Act, such recording to occur no later than fifteen (15) days
following adoption of this resolution.
4. This resolution is effective upon its adoption.
PASSED AND ADOPTED this 17th day of July, 2006 by the following vote:
AYES:
COUNCILMEMBERS: ARELLANO, BRACCO, CORREA, GARTMAN,
V ALIQUETTE, VELASCO, and PINHEIRO
NOES:
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ATT~T (2
~[d'A ~~(~A
Rhonda Pellin, City Clerk
RESOLUTION NO. 2006-53
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EXHIBIT A
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
CITY OF GILROY
Community Facilities District No. 2000-1
(Highway 152)
AMENDMENT NO.1 TO
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
This Amendment No. 1 to Rate and Method of Apportionment of Special Tax (this
"Amendment No.1") amends the Rate and Method of Apportionment of Special Tax (the
"Existing Rate and Method," and together with Amendment No.1, the "Rate and Method") for
City of Gilroy Community Facilities District No. 2000-1 (Highway 152) (the "CFD") as set forth
below.
Except as expressly set forth in this Amendment No.1, all provisions of the Existing
Rate and Method shall continue to govern the matters described therein. Capitalized terms that
are used but not defined in this Amendment No. 1 have the meaning given them in the Existing
Rate and Method.
Section D.2 of the Existing Rate and Method is hereby amended and restated as follows:
2. Supplemental Bonds Special Tax Requirement
a. General. Supplemental Bonds sold to fund improvements within an Improvement
Area shall be secured solely by Special Taxes collected within that Improvement Area. No
Special Tax shall be levied in any Improvement Area to pay debt service on Supplemental
Bonds sold to fund improvements in another Improvement Area.
b. Improvement Area #1
Commencing with Fiscal Year 2006-007 and for each following Fiscal Year, the
Administrator shall determine the Supplemental Bonds Special Tax Requirement for
Improvement Area #1 to be collected in that Fiscal Year. Once the Administrator has
determined the Supplemental Bonds Special Tax Requirement for Improvement Area #1, a
Special Tax shall then be levied, in addition to the Special Tax levied for Highway 152
improvements pursuant to Section D.1 above, according to the following steps:
Step 1. Using the Acreage of Taxable Property reflected on Assessor's
Parcel Maps, add together the following: (i) Acreage of Lots 1, 2, 3,
4, 5, 6, 7, 8, 9, 10, 11, 12 and 13 within Improvement Area #1, and
(ii) one-half of the Acreage of Lot A within Improvement Area #1.
RESOLUTION NO. 2006-53 -4-
Step 2.
Divide the Supplemental Bonds Special Tax Requirement for
Improvement Area #1 for the Fiscal Year by the Acreage calculated
in Step 1 to determine a per-Acre Special Tax.
Step 3.
For Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 and 13 in Improvement
Area # 1, multiply the per-Acre Special Tax determined in Step 2 by
the Acreage of each Parcel to determine the Special Tax to be levied
on each Parcel to pay the Supplemental Bonds Special Tax
Requirement for Improvement Area #1. For Lot A, multiply the
Acreage of the Parcel by one-half of the per-Acre Special Tax
determined in Step 2 to determine the Special Tax to be levied on
Lot A.
c. Improvement Areas #2-8
2. Supplemental Bonds Special Tax Requirement
Commencing with Fiscal Year 2002-03 and for each following Fiscal Year, the
Administrator shall determine the Supplemental Bonds Special Tax Requirement to be collected
in that Fiscal Year within Improvement Areas #2, #3, #6, #7 and/or #8 if Supplemental Bonds
have been issued for some or all of the Improvement Areas. Once the Administrator has
determined the separate Supplemental Bonds Special Tax Requirement for Improvement Areas
#2, #3, #6, #7 and/or #8 (as applicable), a Special Tax shall then be levied, in addition to the
Special Tax levied for Highway 152 improvements pursuant to Section D.1 above, according to
the following steps:
Step 1. Using the Acreage reflected on Assessor's Parcel Maps,
determine the Acreage of Taxable Property within Improvement
Areas on behalf of which Supplemental Bonds have been sold. If
a Subsequent Sale has occurred within Improvement Area #2,
only the Acreage of the property which was sold by Tenth Street
Enterprises shall be used for purposes of this Step 1.
Step 2. Separately for each Improvement Area for which Supplemental
Bonds have been sold, divide the applicable Supplemental Bonds
Special Tax Requirement for the then current Fiscal year by the
respective Acreages as calculated in Step 1 to determine a
separate per-Acre Special Tax for each Improvement Area on
behalf of which Supplemental Bonds have been issued.
Step 3. For each Assessor's Parcel within Improvement Areas for which
Supplemental Bonds have been sold, multiply the per-Acre
Special Tax determined in Step 2 by the Acreage of each Parcel
to determine the Special Tax to be levied on each Parcel to pay
the Supplemental Bonds Special Tax Requirement. The Special
Tax determined pursuant to this Step 3 shall be levied in addition
to the Special Tax determined for these Parcels in Section D.1
above.
RESOLUTION NO, 2006-53 -5-
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2006-5~ 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)