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HomeMy WebLinkAboutCC RES 06-006RESOLUTION NO. 06-6 A RESOLUTION OF FORMATION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT TO ESTABLISH CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK), TO MAKE ENVIRONMENTAL FINDINGS WITH RESPECT THERETO, TO ADOPT A MITIGATED NEGATIVE DECLARATION IN CONNECTION THEREWITH, TO ESTABLISH AN APPROPRIATIONS LIMIT THEREFOR, TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN, AND TO SUBMIT THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT AND THE LEVY OF A SPECIAL TAX TO THE QUALIFIED ELECTORS THEREOF RECITALS: WHEREAS, in accordance with a request set forth in a petition signed by the owners of certain land proposed for inclusion in a proposed community facilities district (the "Petitioning Landowners"), the City Council (the "City Council") of the City of Palm Desert, California (the "City"), has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park) and to Authorize the Levy of a Special Tax within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Intention to Establish District") stating its intention to conduct proceedings to form City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act") to finance certain public facilities to serve the District (the "Original Facilities"); and WHEREAS, a copy of the Resolution of Intention to Establish District setting forth a description of the proposed boundaries of the District, the Original Facilities to be financed by the District, including incidental expenses, and the rate and method of apportionment of the special tax proposed to be levied within the District is on file in the office of the City Clerk of the City and is incorporated herein by reference; and WHEREAS, the City Council has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Incur Bonded Indebtedness Within Proposed City of Palm Desert Community Facilities District No. 2005- 1 (University Park)" (the "Resolution of Intention to Incur Bonded Indebtedness") stating the City Council's intention, acting as the legislative body of the District, to authorize the issuance and sale of one or more series of bonds for the District in maximum aggregate principal amount of $70,000,000 to finance the cost of Original Facilities; and WHEREAS, the Resolution of Intention to Establish District and Resolution of Intention to Incur Bonded Indebtedness set December 8, 2005 (the "Original Hearing Date") as the date of a public hearing on the establishment of the District, the extent of the RESOLUTION NO. 06-6 District, the furnishing of Original Facilities to serve the District, the proposed rate and method of apportionment of the special tax within the District, and the proposed debt issue; and WHEREAS, a notice of the public hearing was published and was mailed to all landowners proposed to be included in the District in accordance with the Act; and WHEREAS, prior to the Original Hearing Date, the Petitioning Landowners made the determination to exclude the development impact fees of the Palm Springs Unified School District and the school improvements to be constructed thereby (the "School Facilities") from the list of public facilities to be financed by the District, in the interest of applying a greater portion of the District's financing to the facilities to be owned by the City and the Coachella Valley Water District (the "CVWD"); and WHEREAS, prior to the Original Hearing Date, there was filed with the City Council a report containing a description of the facilities necessary to adequately meet the needs of the District and an estimate of the cost of financing such facilities as required by Section 53321.5 of the Act (the "Report"), which Report amends the list of Original Facilities to delete the School Facilities from the list of public facilities to be financed by the District; and WHEREAS, Section 53316.2 of the Act permits the District to finance facilities to be owned or operated by a public agency other than the City, but only pursuant to a joint community facilities agreement ("JCFA") adopted by resolution of each of the public agencies that are party thereto and prior to the City Council's adoption of a resolution of formation to establish the District; and WHEREAS, prior to the Original Hearing Date, representatives of the Petitioning Landowners met with representatives of the CVWD to discuss the approval of a JCFA pursuant to Section 53316.2 of the Act, regarding certain of the Original Facilities which, if approved by the qualified electors within the District, would be owned and operated by the CVWD; and WHEREAS, the CVWD indicated that it would need more time beyond the Original Hearing Date to consider the terms and conditions of the proposed JCFA and for the Board of Directors of the CVWD to approve the JCFA by resolution; and WHEREAS, the aforementioned public hearing was duly continued from December 8, 2005 in the City Council Chamber to 4 p.m. on January 12, 2006 in the City Council Chamber upon a finding by the City Council that, pursuant to Section 53325 of the Act, it is appropriate and necessary to continue such hearing, in order to ensure adequate time to address the complexities of the District relating to the JCFA and to ensure adequate opportunity for public comment and participation, including without limitation the comment and participation of the CVWD, with respect to the proposed Original Facilities and JCFA; and _ WHEREAS, prior to the reconvening of the public hearing on January 12, 2006, it was determined that certain park improvements and park land site acquisition identified in Sections VIII.E. and VIII.F. of Exhibit "A" of the Resolution of Intention to Establish District P640 I.1032‘863108.5 2 RESOLUTION NO. 06-6 (the "Parks E and F Improvements"), also described as "Park E" and "Park F," respectively, will not be owned by the City or any other governmental entity and may not be financed by the District by the issuance of its tax-exempt bonds; and WHEREAS, Section 53325 of the Act permits the City Council to modify the Resolution of Intention to Establish District by eliminating proposed facilities, if the City Council makes such modifications at the aforementioned public hearing; and WHEREAS, at the public hearing, the City Council adopted a resolution entitled, "A Resolution of the City Council of the City of Palm Desert Modifying the Resolution of Intention to Eliminate Certain Facilities From Financing by Proposed City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Modification"), which is on file in the office of the City Clerk of the City and modifies and amends the Resolution of Intention to Establish District by amending the list of Original Facilities therein to eliminate the School Facilities and the Parks E and F Improvements, which revised list of authorized facilities is set forth in Exhibit "A" hereto (the "Facilities"); and WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the establishment of the District, the extent of the District, the furnishing of Facilities to serve the District, the proposed rate and method of apportionment of the special tax, and the proposed debt issue were heard and a full and fair hearing was held; and WHEREAS, at the public hearing, evidence was presented to the City Council on the matters before it, and the City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the District, the levy of the special tax, and the incurrence of bonded indebtedness therein; and WHEREAS, written protests with respect to the establishment of the District, the extent of the District, and the furnishing of Facilities to serve the District have not been filed with the City Clerk by fifty percent or more of any registered voters residing within the territory of the District or property owners of one-half or more of the area of land within the District and not exempt from the levy of the special tax; and WHEREAS, the special tax proposed to be levied in the District to pay for the costs of the Facilities has not been eliminated by protest by fifty percent or more of any registered voters residing within the territory of the District or property owners of one-half of more of the area of land within the District and not exempt from the levy of the special tax; and WHEREAS, City staff prepared an initial study (the "Initial Study") for the project, as defined in paragraph 8 of the Initial Study (the "Project"), including formation of the District and financing the Original Facilities (which include all of the Facilities listed in Exhibit "A" hereto), as required by the California Environmental Quality Act, commencing with Section 21000 of the California Public Resources Code and the California Environmental Quality Act Guidelines, Article 5 of Chapter 3 of Division 6 of Title 14 of the California Code of P6401.1032'863108.5 3 RESOLUTION NO. 06-6 Regulations, (collectively "CEQA"). The Initial Study concluded that the Project would not result in any significant adverse environmental impacts with the implementation of certain mitigation measures. Therefore a Mitigated Negative Declaration was prepared and circulated for a 20-day public review and comment period, during which the City received one comment letter from Sunline Transit Agency. The Sunline Transit Agency letter commented on sidewalk installation and transit services in the vicinity of the Project. Approximately 3 weeks after the close of the public review and comment period, the City also received one comment letter from the CVWD, and in response, staff has made minor corrections to the Initial Study and the Mitigated Negative Declaration. A Mitigation, Monitoring and Reporting Plan was prepared for this Project; and WHEREAS, the City Council desires to proceed with the establishment of the District and to make the necessary findings to incur the bonded indebtedness. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT: 1. Recitals. The above recitals are all true and correct. 2. Finding of Validity. Pursuant to Section 53325.1(b) of the Act, the City Council finds and determines that all of the proceedings prior hereto were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Act. 3. Name of District. The City Council hereby establishes and declares the formation of a community facilities district pursuant to the Act to be designated "City of Palm Desert Community Facilities District No. 2005-1 (University Park)." 4. Boundaries of District. The exterior boundaries of the District are shown on the map entitled "Map of Proposed Boundaries, Community Facilities District No. 2005-1 (University Park), City of Palm Desert, County of Riverside, State of California" (the "Map") and recorded in the Riverside County Recorder's office in Book 64, Page 78, of Maps of Assessment and Community Facilities Districts. The Map is hereby approved and incorporated herein by reference. 5. Facilities. The type of Facilities proposed to be provided to serve the District and to be financed under the Act shall consist of those facilities set forth on Exhibit "A" and incorporated herein by reference. The City Council hereby finds that the proposed Facilities are necessary to meet increased demands placed upon the City as a result of development occurring in the District. The City Council additionally finds that, except for the elimination of the School Facilities and the Parks E and F Improvements pursuant to the Resolution of Modification, the adjustments to the descriptions of the facilities from the Resolution of Intention to Establish District (a) are merely for clarification P6401.1032\863108.5 4 RESOLUTION NO. 06-6 purposes, (b) do not add any types of facilities that were not specified in the Resolution of Intention to Establish District, and (c) do not constitute a change in the types of authorized public facilities to be financed by the District. 6. CEQA. a. The City Council, as the lead agency for the Project, has considered the Mitigated Negative Declaration, the November 22, 2005, comment letter from Sunline Transit Agency, and the testimony received during the public hearing for the Project. Although the comment letter from CVWD was received approximately 3 weeks after the close of the public review and comment period, the City Council has also considered such comment letter. b. The Sunline Transit Agency comment letter discusses installation of sidewalks in conjunction with the CFD improvements which, as noted in Exhibit "A" of the Initial Study, are included within the street improvements to be completed by the Project. c. For reference to certain mitigation measures and mitigation monitoring/reporting programs, the Mitigated Negative Declaration included certain pages excerpted from the final Environmental Report relating to the General Plan and Environmental Impact Report (SCH #2003051103) (the "General Plan EIR"). The CVWD comments letter made inquiry or corrections to a few factual statements in the pages from the General Plan EIR. The City's staff has considered and responded to such inquiries or corrections in the staff report relating to this resolution. d. The CVWD comments letter also requested further analysis of the Project effects regarding water quality, discharge, and groundwater, because page 8 of 15 of the environmental checklist within the Initial Study has indicated "No Impact." However, excerpted pages III-73, Ill- 81-83, III-92-94 and from the General Plan EIR and included within the Mitigated Negative Declaration discuss the water quality, discharge, and groundwater at length, including lists of related mitigation measures. Therefore, the City Council hereby makes the corrections to page 8 of 15 of the environmental checklist within the Initial Study, to items a) and b) under the heading "HYDROLOGY AND WATER QUALITY," to indicate "Less Than Significant With Mitigation Incorporated" rather than "No Impact." Similarly, the City Council hereby amends Section 9 of the Environmental Checklist Discussion within the Mitigated Negative Declaration to clarify that the drainage facilities and retention basins required to be constructed as part of the Project, together with the mitigation measures identified P6401.1032\863108.5 5 RESOLUTION NO. 06-6 and attached to the Mitigated Negative Declaration from the General Plan EIR (such as water conservation and landscaping measures, wastewater treatment and reclamation), will be implemented and can mitigate the potential impacts of development on water quality, discharge, and groundwater resources to Tess than significant impacts. The City Council hereby additionally finds that these corrective and clarifying changes to the Initial Study and Mitigated Negative Declaration do not constitute "substantial revisions" as defined in Section 15073.5 of the CEQA Guidelines, that these revisions constitute insignificant modifications and information that merely clarify the Mitigated Negative Declaration, and that pursuant to Section 15073.5(c)(4) of the CEQA Guidelines, no recirculation of the Mitigated Negative Declaration is required. e. The City Council hereby finds, in its independent judgment after considering all relevant evidence in the record of proceedings for the Project, including without limitation the information set forth in the Mitigated Negative Declaration and the Initial Study, that there is not substantial evidence supporting a fair argument that the Project may actually produce any significant environmental impacts that cannot be mitigated to a less than significant level through implementation of those mitigation measures identified in the Mitigated Negative Declaration. Therefore, the City Council finds that the Project will not have a significant environmental effect. f. The City Council finds that the Mitigated Negative Declaration reflects the City Council's independent judgment and analysis. g. The City Council hereby adopts the final Mitigated Negative Declaration and the Mitigation, Monitoring and Reporting Plan for the proposed Project, attached hereto as Exhibit "C" and incorporated herein by reference, subject to the corrections and modifications contained in this Resolution. h. The City Council hereby directs staff to prepare a Notice of Determination, to file that Notice with the County Clerk in accordance with Section 15075(d) of the California Environmental Quality Act Guidelines, and to pay the applicable Fish and Game filing fee. 7. No Maioritv Protest. The City Council hereby finds that written protests against the establishment of the District, against the furnishing of a specified type of facility to serve the District, or against the levying of a specified special tax within the District have not been filed by any property owner or registered voter within the boundaries of the District. Therefore, the City Council finds and declares that the special tax to be levied in the District has not been precluded by majority protest pursuant to Section 53324 of the Act. P6401.1032\863108.5 6 RESOLUTION NO. 06-6 8. Special Tax. a. Except where funds are otherwise available 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 (the "Special Tax") is hereby authorized, subject to approval by two-thirds of the votes cast within the District, to be levied annually in accordance with the procedures of the Act within the boundaries of the District sufficient to pay for the costs thereof, including incidental expenses. The Special Tax will be secured by recordation of a continuing lien against all non-exempt real property in the District and will be collected in the same manner as ordinary ad valorem property taxes are collected, or in such other manner as may be provided by the City Council including, without limitation, direct billing of the affected property owner, and shall be subject to the same penalties, procedure, sale and lien priority in case of delinquency as applicable for ad valorem property taxes. In the first year in which the Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon. b. The proposed rate and method of apportionment of the Special Tax among parcels of real property in the District, in sufficient detail to allow each resident or landowner to estimate the maximum amount such resident or owner will have to pay, is shown in Exhibit "B", attached hereto and incorporated herein by reference (the "Rate and Method"). The City Council hereby determines the Rate and Method set forth in Exhibit "B" to be reasonable and, in accordance with the City's Goals and Policies for Community Facilities Districts adopted on October 13, 2005 under Section 53312.7 of the Act (the "Goals and Policies"), that the Overlapping Debt Burden (as used in the Goals and Policies and based on the applicable Special Tax) relating to commercial parcels within the District, while projected to exceed 2.0% percent of the projected assessed value of each improved commercial parcel within the District (based on the appraisal for such property within District obtained pursuant to the Goals and Policies), is fiscally prudent. c. In the case of any Special Tax to pay for the Facilities 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 and which amount shall not be increased over time over two percent (2%) per year; (ii) the tax year after which no further Special Tax subject to this sentence shall be levied or P6401.1032\863108.5 7 RESOLUTION NO. 06-6 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 within the District by more than ten percent (10%). For the purposes hereof, a parcel is used for "private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. 9. Notice of Special Tax Lien. Upon recordation of a notice of special tax lien with respect to the District pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property in the District, and this lien shall continue in force and effect until collection of the Special Tax by the City Council ceases. 10. Appropriations Limit. An appropriations limit for the District is hereby established, subject to voter approval, as an amount equal to all the proceeds of the Special Tax collected annually within such District and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population. 11. Preparation of Annual Roll. The then current Finance Director, 73-510 Fred Waring Drive, Palm Desert California 92260, telephone number (760) 346- 0611, is designated to be responsible for preparing annually, or authorizing a designee to prepare, a current roll of Special Tax levy obligations by assessor's parcel number and for estimating future Special Tax levies pursuant to Section 53340.2 of the Act. 12. Report. The Report is hereby approved, made a part of the record of the public hearing regarding the formation of the District, and ordered to be kept on file in the office of the City Clerk and open for public inspection. 13. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby establishes the following accountability measures pertaining to the levy by the District of the Special Tax described in Section 8 above: a. Such Special Tax shall be levied for the specific purposes set forth in Section 8(a) hereof. b. The proceeds of the levy of such Special Tax shall be applied only to the specific purposes set forth in Section 8(a) hereof. c. The District shall establish an account or accounts into which the proceeds of such Special Tax shall be deposited. P6401. I032\863108.5 8 RESOLUTION NO. 06-6 wit: d. The City Manager, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. 14. Election. The proposition related to the incurring of the bonded indebtedness and the proposition relating to the levy of the Special Tax shall be combined into one ballot proposition, and shall be submitted to the qualified voters of the District, together with a proposition to establish an appropriations limit for the District. The election shall be held on January 12, 2006, in the City Council Chamber, 73-510 Fred Waring Drive, Palm Desert, California 92260. Pursuant to Section 53327 of the Act, the election shall be conducted by mail ballot in accordance with the California Elections Code and the voted ballots shall be returned to the City Clerk immediately following adoption of a resolution calling the special election. The election shall be closed when the qualified electors have voted, but not later than 8 p.m. on January 12, 2006. PASSED AND ADOPTED this 12th day of January, 2006, by the following vote to AYES: BENSON, CRITES, KELLY, SPIEGEL, and FERGUSON NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: RA H LE D. KLASSE , CITY CLERk P6401.1032\863108.5 9 RESOLUTION NO. 06-6 EXHIBIT "A" DESCRIPTION OF FACILITIES The public facilities (the "Facilities") described below are proposed to be financed by City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District') and include a pedestrian bridge, traffic signals, landscaping, street improvements, water improvements, well site improvements and land acquisition, sewer improvements, storm drain improvements, utility improvements, public art improvements, park improvements, and park site land acquisition, together with all appurtenances and appurtenant work, such as related clearing and grubbing, grading, and any removal or temporary signage or markings related thereto. The cost of the Facilities shall include incidental expenses, including costs associated with forming the District, issuance of bonds, determination of the amount of the Special Tax, collection of the Special Tax, payment of the Special Tax, costs incurred in order to carry out the authorized purposes of the District, and the costs of engineering, inspecting, coordinating, completing, planning and designing the Facilities, including the costs of environmental evaluations. The Facilities include, but shall not be limited to, the facilities listed below, and other facilities of the same type or types may be substituted in the place of one or more of the specific facilities listed below. Any of the Facilities to be constructed shall be constructed, whether or not acquired in their completed states, pursuant to plans and specifications approved by the City of Palm Desert (or the Coachella Valley Water District, as applicable) and the officials thereof, including the City Engineer. The final nature and location of the Facilities will be determined upon the preparation of final plans and specifications for such Facilities. The Facilities may include facilities financed pursuant to public agency development impact fees. I. One half of Cook Street Pedestrian Bridge (including, but not limited to bridge, ADA access ramps, elevator, retaining walls, hand railing, pedestrian lighting, revised sidewalks and minor grading) II. Street Improvements (including, but not limited to, street widening, excavation, signing and striping, access ramps, grading, median and parkway landscaping, curbs and gutters, sidewalks, street lights, dry utility infrastructure, bus stops, fringe toed lizard fee and City fees) A. Frank Sinatra Drive: from West of Cook Street to-College-prive B. Cook Street: from Frank Sinatra Drive to Gerald Ford Drive `. C. Portola Avenue: from College Drive to Gerald Ford -Drive D. Southern half of Gerald Ford Drive: from Portola Avenue_to Cook Street E. University Park Drive: from College Drive to Cook Street F. Technology Drive: from College Drive to Gerald Ford Drive G. Pacific Avenue: from College Drive to Gerald Ford Drive H. College Drive: from Portola Avenue to Frank Sinatra Drive I. In -tract streets RESOLUTION NO. 06-6 III. Water Improvements A. University Park Drive: from West intersection College Drive to East intersection College Drive B. Technology Drive: from College Drive to Gerald Ford Drive C. Pacific Avenue: from College Drive to Gerald Ford Drive D. College Drive: from Portola Avenue to Frank Sinatra Drive E. Well Sites (including land acquisition and improvements) to be located at four sites to be determined by the Coachella Valley Water District concurrently with land plan, final tentative map(s), or similar document(s) (as appropriate) to be approved by the City's Planning Commission and City Council. The tentatively approved locations of the well sites are as follows: 1. Adjacent to Gerald Ford Drive between Pacific Avenue and Technology Drive; 2. Northeast corner of College Drive and Portola Avenue; 3. Adjacent to University Park Drive close to the western intersection with College Drive; and 4. Adjacent to College Drive South of University Park Drive F. In -tract water facilities G. Water improvements to be funded from water capacity and water supplemental fees IV. Traffic Signals A. The intersection of Cook Street/Gerald Ford (modified) B. The intersection of Cook Street/University Park Drive (modified) C. The intersection of Frank Sinatra Drive/College Drive D. The intersection of Portola Avenue/College Drive E. Signals to be located on the south side of the intersection of Gerald Ford Drive/Pacific Avenue F. Signals to be located on the south side of the intersection of Gerald Ford Drive/Technology Drive G. Signals to be located on the south side of the intersection of Gerald Ford Drive/Portola Avenue (cost participation only) V. Sewer Improvements A. Technology Drive: from College Drive to Gerald Ford Drive B. Pacific Avenue: from College Drive to Gerald Ford Drive C. College Drive: from the West intersection University Park Drive to Technology Drive to North of Frank Sinatra Drive D. University Park Drive: from West intersection College Drive to Southwest of West intersection of College Drive and West of the East intersection College Drive to the East intersection College Drive P6401.1032,863108.5 A-2 RESOLUTION NO. 06-6 E. In -tract sewer improvements F. Sewer improvements to be funded from sewer connection fees VI. Storm Drain Improvements A. Pacific Avenue: Catch basins and interim -condition retention basins on the east and west sides of Pacific, adjacent to Gerald Ford Drive B. College Drive: Catch basins and interim -condition retention basin on the southwest corner of College Drive and University Park Drive (west intersection); catch basins on the east and west sides of the intersection with Technology Drive and a permanent retention basin along Technology Drive; and a catch basin and interim -condition retention basin on the east side of College Drive south of the east intersection with University Park Drive C. University Park Drive: Catch basins on the east and west sides of University Park Drive at the west intersection with College Drive and an interim - condition retention basin in the southwestern comer of the intersection; catch basins on the north and south sides of University Park Drive and an interim - condition retention basin in the northwest quadrant of the east intersection of College Drive and University Park Drive; and, as indicated above under VI.B., a catch basin and interim -condition retention basin on the south side of University Park Drive, west of Cook Street D. Technology Drive: Catch basins on the east and west sides of Technology Drive and an interim -condition retention basin west of Technology Drive and south of Gerald Ford Drive E. Gerald Ford Drive: Catch basin and interim -condition retention basin between Pacific and Technology Drive on the south side of Gerald Ford Drive; as indicated above under VI.A., catch basin and interim -condition retention basin on the south side of Gerald Ford Drive west of Pacific Avenue; and, as indicated above under VI.D., catch basin and interim - condition retention basin west of Technology Drive F. Cook Street: As indicated above under VI.B., catch basin and interim - condition retention basin south of University Park Drive, west side of Cook Street G. In -tract storm drains VII. Utilities Improvements A. Frank Sinatra Drive: from West of Cook Street to College Drive B. University Park Drive: from West intersection College Drive to Cook Street C. Technology Drive: from College Drive to Gerald Ford Drive D. Pacific Avenue: from College Drive to Gerald Ford Drive E. College Drive: from Portola Avenue to Frank Sinatra Drive F. Southern half of Gerald Ford Drive: from Technology Drive to Pacific Avenue VIII. Park Improvements and Park Site Land Acquisition (including, but not limited to, site development, lighting and landscaping improvements, restroom facilities, age- P6401. 1032\863108.5 A-3 RESOLUTION NO. 06-6 appropriate tot lots, sand volleyball and basketball facilities, picnic pavilions, greenspace (including without limitation greenspace large enough for sports activities), shade structures, walking paths, water spray features, dog park improvements, and parking improvements) A. Park A (approximately 2 acres) — Generally surrounded by Portola Avenue, College Drive, Pacific Avenue and Gerald Ford Drive B. Park B (approximately 4.5 acres) — Generally surrounded by Gerald Ford Drive, Pacific Avenue, College Drive and to the west of the intersection of College Drive and University Park Drive C. Park C (approximately 2.3 acres)— Located in the southwest corner of the west intersection of University Park Drive and College Drive D. Park D (approximately 2.8 acres)— Generally surrounded by College Drive and University Park Drive IX. Landscaoinq (includes all planting, irrigation, trees, and necessary hardscape/rocking) A. All street median areas as well as parkway areas (listed under Section II) between the back of curb and gutter and street right of way (excluding the sidewalk) will be landscaped. P6401.1032\863108.5 A-4 RESOLUTION NO. 06-6 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT FOR CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT No. 2005-1 (UNIVERSITY PARK) [see attached] P6401. 1032/863 108.5 B-1 RESOLUTION NO. 06-6 RATE AND METHOD OF APPORTIONMENT FOR CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (University Park) A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "CFD"), and collected each Fiscal Year commencing in Fiscal Year 2006-2007 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," "Undeveloped Property" and "Provisional Undeveloped Property" as described below. All of the Taxable Property within the CFD shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the land area. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. The minimum acreage of Taxable Property is determined for each Zone within the CFD in accordance with Section E.1. "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Fees and Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 2005-1 including, but not limited to, the following: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2005-1, or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2005-1, or any designee thereof of providing continuing disclosure; the costs of the City, CFD No. 2005-1 or any designee thereof of preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2005-1, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2005-1 for any other administrative purposes, including, but not limited to attomey's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Palm Desert, CFD 2005-1 (University Park) 1 RESOLUTION NO. 06-6 "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property as determined in accordance with Section C.1.a. "Available Funds" means (a) the balance in the reserve fund established pursuant to the terms of the Indenture in excess of the reserve requirement as defined in such Indenture, (b) delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year, (c) that portion of Special Tax prepayments allocated to the payment of interest on Bonds, and (d) other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the Special Tax as determined in accordance with Section C.1.b. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred by CFD No. 2005-1 under the Act. na "Bond Year" means a one-year period beginning on September 2 in each year and St ending on September 1 in the following year, unless defined otherwise in the applicable Indenture. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2005-1" means City of Palm Desert Community Facilities District No. 2005-1. "City" means the City of Palm Desert. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2005-1. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property for which a building permit has been issued prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. City of Palm Desert, CFD 2005-1 (University Park) 2 RESOLUTION NO. 06-6 "Dwelling Unit" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Exempt Property" means all Assessor's Parcels that are exempt from the Special Tax pursuant to Section E. "Final Subdivision Map" means a subdivision of property, created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which residential building permits may be issued without further subdivision of such property. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Section C. "Maximum Annual Special Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Multifamily Property" means all Assessor's Parcels of Residential Property consisting of one or more dwelling units within a building comprised of attached residential units. "Non -Residential Property" means all Assessor's Parcels of Developed Property, for which a building permit(s) has been issued to allow the construction of one or more buildings or structures for a non-residential use. "Open Space" means property within the boundaries of CFD No. 2005-1 in which st prior to June 1 of the preceding Fiscal Year (a) has been designated with specific boundaries and acreage on a Final Subdivision Map as open space, (b) is classified by the County Assessor as open space, (c) has been irrevocably offered for dedication as open space to the federal government, the State of California, the County, the City, or any other public agency or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. "Outstanding Bonds" means all Bonds, which remain outstanding as defined in the Indenture. "Property Owner Association Property" means any property within the boundaries City of Palm Desert, CFD 2005-1 (University Park) 3 RESOLUTION NO. 06-6 of CFD No. 2005-1 which is (a) owned by a property owner association or (b) is designated with specific boundaries and acreage on a Final Subdivision Map as property owner association property. As used in this definition, a property owner association includes any master or sub -association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors' Parcels of the Developed Property within The CFD. For Undeveloped Property and Provisional Undeveloped Property "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of like classification within the CFD. "Provisional Undeveloped Property" means all Assessor's Parcels of Public Property, Property Owner Association Property, Open Space or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum acreage as set forth in Section E.1 for Zone A, Zone B, Zone C, Zone D or Zone E as applicable. "Public Property" means any property within the boundaries of CFD No. 2005-1 which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency or (c) is designated with specific boundaries and acreage on a Final Subdivision Map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City or any other public agency. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD Administrator by reference to appropriate records kept by the City's Building Department. Residential Floor Area for a residential structure will be based on the initial building permit(s) issued for such structure. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued to allow the construction of one or more Dwelling Units. "Single Family Property" means all Assessor's Parcels of Residential Property other than Multifamily Property. "Special Tax" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount of Special Tax revenue required in any Fiscal Year for the CFD to: (i) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate City of Palm Desert, CFD 2005-1 (University Park) 4 RESOLUTION NO. 06-6 payment; (iii) pay Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) subject to the Last paragraph of Section D, pay for reasonably anticipated Special Tax delinquencies based on the delinquency rates for the Special Tax levy in the previous Fiscal Year, and (vi) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD No. 2005-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property; less (vii) a credit for Available Funds. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2005-1 that are not exempt from the Special Tax pursuant to law or Section E below. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means, for each Fiscal year, all Taxable Property not classified as Developed Property or Provisional Undeveloped Property. "Zone A" means a specific geographic area as depicted in Exhibit A attached hereto. "Zone B" means a specific geographic area as depicted in Exhibit A attached hereto. "Zone C" means a specific geographic area as depicted in Exhibit A attached hereto. "Zone D" means a specific geographic area as depicted in Exhibit A attached hereto. "Zone E" means a specific geographic area as depicted in Exhibit A attached hereto. City of Palm Desert, CFD 2005-1 (University Park) 5 RESOLUTION NO. 06-6 B. ASSIGNMENT TO LAND USE CLASSES Each Fiscal Year, all Assessors' Parcels of Taxable Property within the CFD shall be (a) categorized as being located in either Zone A, Zone B, Zone C, Zone D, or Zone E, (b) classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property and (c) subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Developed Property shall be further classified as either Residential Property or Non -Residential Property. In addition, each Assessor's Parcel of Residential Property shall further be classified as a Single Family Property or Multifamily Property, and each Assessor's Parcel of Single Family Property shall be assigned to its appropriate Assigned Special Tax rate based on its Residential Floor Area. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property or Non -Residential Property shall be the greater of (1) the Assigned Special Tax described in Section a. below or (2) the Backup Special Tax computed pursuant to Section b. below. a. Assigned Special Tax The Assigned Special Tax for Developed Property shall be $21,000 per Acre for Zone A, $27,000 per Acre for Zone B, $27,000 per Acre for Zone C and $23,000 per Acre for Zone D. The Assigned Special Tax for each Land Use Class of Developed Property for Zone E is shown in Table 1. City of Palm Desert, CFD 2005-1 (University Park) 6 RESOLUTION NO. 06-6 TABLE 1 Assigned Special Tax for Developed Property Within Zone E Residential Floor Area Land Use Class Single Family Property Single Family Property Single Family Property Multifamily Property Non Residential Property b. Backup Special Tax greater than 2,300 s.f. 2,300 s.f. to 1,725 s.f. less than 1,725 s.f. N/A N/A Assigned Special Tax $1.44 per square foot of Residential Floor Area $1.67 per square foot of Residential Floor Area $1.38 per square foot of Residential Floor Area $1.50 per square foot of Residential Floor Area $28,000 per Acre When a Final Subdivision Map is recorded within a Zone, the Backup Special Tax for Residential Property and Non -Residential Property, shall be determined as follows: For each Assessor's Parcel of Residential Property or Undeveloped Property to be classified as Residential Property upon its development within the Final Subdivision Map area, the Backup Special Tax shall be the rate per Dwelling Unit calculated according to the following formula: B= RxA The terms above have the following meanings: B = Backup Special Tax per Dwelling Unit in each Fiscal Year. R = Applicable rate as follows: i.e. $28,000 for Zone E. A = Acreage classified or to be classified as Residential Property in such Final Subdivision Map. U = Number of Dwelling Units in the Final Subdivision Map which are classified or expected to be classified as Residential Property. City of Palm Desert, CFD 2005-1 (University Park) 7 RESOLUTION NO. 06-6 For each Assessor's Parcel of Developed Property classified as Non - Residential Property or for each Assessor's Parcel of Undeveloped Property to be classified as Non -Residential Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $21,000 for Zone A, $27,000 for Zone B, $27,000 for Zone C, $23,000 for Zone D, and $28,000 for Zone E by the total Acreage of any such Assessor's Parcel. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Non -Residential Property, or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Subdivision Map, then the Backup Special Tax applicable to such Assessor's Parcels shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change did not take place. 2. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $21,000 per Acre for Zone A, $27,000 per Acre for Zone B, $27,000 per Acre for Zone C, S23,000 per Acre for Zone D, and $28,000 per Acre for Zone E. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2006-2007 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Undeveloped Property within Zone A, Zone B, Zone C, Zone D, and Zone E, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. In determining the Acreage of an Assessor's Parcel of Undeveloped Property for purposes of determining the annual Special Tax to be levied on such Assessor's Parcels of Undeveloped Property, the CFD Administrator shall not include any Acreage shown on any applicable tentative subdivision map or other land use entitlement approved by the City that designates such Acreage for a use that would be classified as Open Space, Property Owner Association Property, or Public Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel of Developed Property whose Maximum Annual Special Tax is derived by the City of Palm Desert, CFD 2005-1 (University Park) 8 RESOLUTION NO. 06-6 application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's Parcel. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on all Provisional Undeveloped Property at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property be increased by more than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Assessor's Parcel in the CFD. E. EXEMPTIONS 1. The CFD Administrator shall classify the following as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Open Space and (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 7.07 Acres for Zone A, 17.64 Acres for Zone B, 22.37 Acres for Zone C, 10.1 Acres for Zone D, and 129.5 Acres for Zone E. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 7.07 Acres for Zone A, 17.64 Acres for Zone B, 22.37 Acres for Zone C, 10.1 Acres for Zone D, and 129.5 Acres for Zone E will be classified as Provisional Undeveloped Property and shall be taxed pursuant to the fourth step of Section D. Exempt status for purposes of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes Exempt Property. 2. The Maximum Annual Special Tax obligation for any property which would be classified as Public Property upon its transfer or dedication to a public agency but which is classified as Provisional Undeveloped Property pursuant to E.1 above shall be prepaid in full by the seller pursuant to Section H.1, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Special Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Provisional Undeveloped Property. 3. If the use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in Section E.1 that would make such Assessor's Parcel no longer eligible to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as City of Palm Desert, CFD 2005-1 (University Park) 9 RESOLUTION NO. 06-6 Exempt Property and shall be deemed to be Taxable Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the CFD Administrator), the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of CFD No. 2005-1 a special three -member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2005-1 may directly bill the Special Tax, 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 and may actually foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of Special Taxes as permitted by the Act. Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case -by -case basis as specifically approved by the Council. H. PREPAYMENT OF SPECIAL TAX The following definitions apply to this Section H: "CFD Public Facilities" means those public facilities authorized to be financed by CFD No. 2005-1. "CFD Public Facilities Costs" means either $55 million, or such lower number as shall be determined either by (a) the CFD Administrator as sufficient to finance the CFD Public Facilities, or (b) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this Rate and City of Palm Desert, CFD 2005-1 (University Park) 10 RESOLUTION NO. 06-6 Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. "Future Facilities Costs" means the CFD Public Facilities Costs minus that (a) portion of the CFD Public Facilities Costs previously funded (i) from the proceeds of all previously issued Bonds, (ii) from interest earnings on the Construction Fund actually earned prior to the date of prepayment and (iii) directly from Special Tax revenues and (b) the amount of the proceeds of all previously issued Bonds then on deposit in the Construction Fund. "Outstanding Bonds" means all previously issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Annual Special Taxes. 1. Prepayment in Full The Maximum Annual Special Tax obligation may only be prepaid and permanently satisfied for an Assessor's Parcel of Developed Property or Undeveloped Property for which a building permit has been issued, or Provisional Undeveloped Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, however that a prepayment may be made only if there arc no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Maximum Annual Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The CFD Administrator may charge a reasonable fee for providing this figure, which can be collected prior to preparing such calculation. The prepayment amount shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Prepayment Fees and Expenses less Reserve Fund Credit k,5s Capitalized Interest Credit equals Prepayment Amount City of Palm Desert, CFD 2005-1 (University Park) 11 RESOLUTION NO. 06-6 As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Step No.. 1. For Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property, for which a building permit has been issued, to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit issued for that Assessor's Parcel. For Assessor's Parcels of Provisional Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for Provisional Undeveloped Property. 2. Divide the Maximum Annual Special Tax computed pursuant to step 1 by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within CFD No. 2005-1 excluding any Assessors Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. 3. Multiply the quotient computed pursuant to step 2 by the principal amount of the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount). 4. Multiply the Bond Redemption Amount computed pursuant to step 3 by the applicable redemption premiums) on the next possible Bond call date, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). 5. If all the Bonds authorized to be issued by CFD No. 2005-1 have not been issued, then compute the Future Facilities Costs. 6. Multiply the quotient computed pursuant to step 2 by the amount if any, determined pursuant to step 5 to compute the amount of Future Facilities Costs to be allocated to such Assessor's Parcel (the 'Future FacilitiesAmount'). 7. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 8. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year, which have not yet been paid. 10. Determine the fees and expenses of CFD No. 2005-1 including but not limited to, City of Palm Desert, CFD 2005-1 (University Park) 12 RESOLUTION NO. 06-6 the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds from the proceeds of such prepayment, and the cost of recording any notices to evidence the prepayment and the redemption (the "Prepayment Fee and Expenses"). 11. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the prepayment amount, less the Prepayment Fees and Expenses, pursuant to step 10, from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 12. Add the amounts computed pursuant to steps 7 and 9 and subtract the amount computed pursuant to step 11 (the "Defearance Amount"). 13. The reserve fund credit (the "Reserve Fund Credit) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to step 2 by the expected balance in the capitalized interest fund after such first interest payment (the "Capitalized Interest Credit'). 15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to steps 3, 4, 6, 10, and 12, less the amounts computed pursuant to steps 13 and 14 (the "Prepayment Amount'). 16. From the Prepayment Amount, the amounts computed pursuant to steps 3, 4, 12, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to step 10 shall be retained by CFD No. 2005-1. The amount computed pursuant to step 6 shall be deposited in the Construction Fund. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under step 9 above, the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be City of Palm Desert, CFD 2005-1 (University Park) 13 RESOLUTION NO. 06-6 recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Annual Special Taxes that may be levied on Taxable Property within CFD No. 2005-1 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds plus the cost of annual Administrative Fees and Expenses. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as presented in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP=((PE—A)xF)+A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H.1, minus Prepayment Fees and Expenses determined pursuant to step 10. F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the Maximum Annual Special Tax. A= the Prepayment Fees and Expenses determined pursuant to step 10. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum Annual Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to step 16 of Section H.1, and (ii) indicate in the records of CFD No. 2005-1 that there has been a partial prepayment of the Maximum Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. City of Palm Desert, CFD 2005-1 (University Park) 14 RESOLUTION NO. 06-6 '^' I. TERM OF SPECIAL TAX The Special Tax shall be levied commencing in Fiscal Year 2006-2007 to the extent necessary to fully satisfy the Special Tax Requirement until the Special Tax Requirement is equal to or less than SO and shall be levied for a period no longer than the 2045-2046 Fiscal Year. City of Palm Desert, CFD 2005-1 (University Park) 15 RESOLUTION NO. 06-6 EXHIBIT "C" — MITIGATION, MONITORING AND REPORTING PLAN [see attached] P6401.1032\863108.5 C-1 RESOLUTION NO. 06-6 Environmental Mitigation Monitoring and Reporting Program for CFD 2005-1 University Park AUTHORITY This Environmental Mitigation Monitoring and Reporting Program has been prepared pursuant to Section 21081.6 of the California Environmental Quality Act, known as CEQA (Public Resources Code Section 21000 et seq.), to provide for the monitoring of mitigation measures required of the University Park CFD 2005-1 Project, as set forth in the Mitigated Negative Declaration prepared for the. project. This report will be kept on file in the offices of the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260. MONITORING SCHEDULE Prior to the issuance of permits, while detailed development plans are being prepared for approval by City staff, City staff will be responsible for ensuring compliance with mitigation monitoring applicable to the project design phase. City staff will prepare or cause to be prepared reports identifying compliance with mitigation measures. Once construction has begun and is underway, monitoring of the mitigation measures associated with construction will be included in the responsibilities of designated City staff, who shall prepare or cause to be prepared reports of such monitoring periodically until construction has been completed. Once construction has been completed, the City will monitor the project as appropriate and provided in the monitoring plan. FORMAT OF MITIGATION MONITORING MATRIX The mitigation monitoring matrix on the following pages identifies the environmental issue areas for which monitoring is required, the required mitigation measures, the time frame for monitoring, and the responsible monitoring agencies. P6401.1032\864795.4 Environmental Mitigation Monitoring and Reporting Program for CFD 2005-1 University Park Impad Aesthetics Mitigation Measure AES-1 Air Quality Mitigation Measure AQ-1. Biological Resources Mitigation Measure BI0-1. Geology and Soils Mitigation Measure GEO-1. Mitigation Monitoring and Reporting Program Matrix Tim Myna/ MirvationMeaures I Maia%wMiadone The lighting funded and constructed by this Project shall comply with the City's Municipal Code Chapter 24.16 regulations regarding lighting levels and horizontal and vertical light trespass. Construction Details demonstrating compliance shall be approved prior to commencement of construction. During stabilization of the sand dunes and construction activity, all contractors shall During Construction comply with the City's Fugitive Dust Control Ordinance, set forth in Chapter 24.12 of the Municipal Code and the 2002 Coachella State Implementation Plan prepared by the Air Quality Management District. The $600.00 per acre mitigation fee required by the Coachella Valley Fringe -toed Prior to disturbing any Lizard Habitat Conservation Plan shall be paid before lands to which the fee applies Fringe -Toed Lizard are disturbed. Habitat The proposed Project and future development will comply with the City's grading and building codes and implement the following mitigation measures listed in the General Plan EIR as applicable to the Project or components thereof: A. The City shall establish and maintain an information database containing maps and Ongoing other information, which describe seismic and other geotechnical hazards occurring within the City boundaries, sphere -of -influence and planning area. B. Proper structural engineering, which takes into account the forces that will be Construction Plan applied to structures by anticipated ground motions, shall provide mitigation for Preparation ground shaking hazards. Seismic design shall be in accordance with the most recently adopted editions of the Uniform Building Code and/or International Building Code, and the seismic design parameters of the Structural Engineers' Association of California. C. Proposals for development on wind or stream -deposited sediment on the valley Prior to floor shall include site -specific subsurface geotechnical investigations that address Construction/During Plan settlement, liquefaction, and collapsible soils. These hazards can generally be Preparation mitigated by proper excavation, compaction and foundation design. P6401.1032\864795.4 2 Reiparble Maniasg Party Building Department, Department of Public Works Department of Public Works, Inspectors Department of Public Works Development Services Department Building and Safety Department Department of Public Works XI m cn 1— C —I z z 2 1O Q2 In f 1 RES0Ut0NNO• 0,6:6. O qD a 0 Str )E D dE m 'gr*O i 0-6 "d tt° co 7B mmEDe 4 No .t E .Dr O O Dpr tOr D E dOD A _ O.NtE tc .¢rE'+ 2. 4 O D 4 v" r9+ c p-D ay °o t.$ -D c °O L n O`Ou T—ss O*. o f CAC Sd a y D."0Vs, O • 0 O °' , 0, 0 O c�+ Environmental Mitigation Monitoring and Reporting Program for CFD 2005-1 University Par* biped Mitigation Monitoring and Reporting Program Matrix MiirhionMania J. Fill materials shall be completely and uniformly compacted to not Tess than 90% of the laboratory maximum density as determined by ASTM test method 0-1557-78. The project soils engineer shall observe the placement of fill and take sufficient tests to verify the moisture content, uniformity, and degree of compaction obtained. In -place soil density should be determined by the sand -cone method, in accordance with ASTM Test Method 0-1556-64 (74), or equivalent test method acceptable to the City Building and Safety Department. Tine Frans/ ResporaleMaaoiig MaracayMilestone Paty During Grading Department of Public Works K. Finish cut slopes generally shall not be inclined steeper than 2: 1 (horizontal to During Construction Plan Department of vertical). Attempts to excavate near -vertical temporary cuts for retaining walls or Preparation and During Public Works utility installations in excess of 5 feet may result in gross failure of the cut and may Grading possibly damage equipment and injure workers. All cut slopes must be inspected during grading to provide additional recommendations for safe construction. L Finish fill slopes shall not be inclined steeper than 2: 1 (horizontal to vertical). Fill During Construction Plan Department of slope surfaces shall be compacted to 90% of the laboratory maximum density by Preparation and During Public Works either over -filling and cutting back to expose a compacted core or by approved Grading mechanical methods. M. Foundation systems that utilize continuous and spread footings are recommended During Construction Plan Building and for the support of one and two-story structures. Foundations for higher structures must Preparation and During Safety be evaluated based on structure design and on -site soil conditions. Grading Department N. Positive site drainage shall be established during finish grading. Finish lot grading During Construction Plan Building and shall include a. minimum positive gradient of 2% away from structures for a minimum Preparation and During Safety distance of three (3) feet and a minimum gradient of 1 % to the street or other Grading Department approved drainage course. O. An adequate subdrain system shall be constructed behind and at the base of all During Construction Plan Building and retaining walls to allow for adequate drainage and to prevent excessive hydrostatic Preparation and During Safety pressure. Grading Department. P6401.1032\864795.4 4 9-90 'ON NOI1t11OS32! %Oo to',� 0 0. 0 � Ot ■ ■ I.il 1 %'3 ■tt%''g ) s ■ a ? oi 5 ° ■ % co s1«i% ■ & e ; _■— ©. t ■ & % & at g