Resolution 12030RESOLUTION NO. 12 0 3 0
A RESOLUTION OF INTENTION TO ESTABLISH A COMMUNITY
FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL
TAXES
CITY OF ALAMEDA
immunity Facilities District 1++10. 2
(Paragon Gateway)
RESOLVED by the City Council of the City of Alameda (the "City") that:
WHEREAS, the City Clerk has received a written petition (the "Petition ") from the
expected owners of not less than ten percent (10%) of the area of land proposed to be included
within a community facilities district (the "CFD" , the proceedings for the formation of which CFD
are as hereafter provided; and
WHEREAS, under Chapter 16 of Title III of the Alameda Municipal Code (the "Code "),
this City Council is the legislative body for the proposed CFD and is empowered with the authority
j.o establish the CFD; and
WHEREAS, this City Council, with the aid of the City staff, has reviewed the Petition
-and found it to be in proper form and now desires to proceed with the establishment of the CFD.
NOW, THEREFORE, IT IS HEREBY ORDERED as follows:
1. This City Council proposes to conduct proceedings to establish a community facilities
district pursuant to the Code.
2. This City Council hereby acknowledges receipt of the Petition.
3. This City Council hereby acknowledges receipt of the $10,000 check submitted to the
City in connection with the Petition and determines that said amount is sufficient to compensate the
City for a portion of the costs incurred or to be incurred in conducting the proceedings to create the
CFD. The Finance Director of the City is hereby authorized and directed to negotiate said check
and hold the proceeds thereof in an account of the City, said proceeds to be used by the Finance g
Director solely to pay any costs incurred by the City in establishing the proposed CFD. It is the
intent of this Ci ty Council that said $10,000 to repaid to the petitioners,
without interest, from them
proceeds of special tax bonds to be issued by the City for the proposed CFD. In the event that sai
special tax bonds are not issued, the Finance Director is hereby authorized and directed to return,
without interest, any of such funds which have not been committed or theretofore used to pay costs
of the City in establishing the CFD.
The Finance Director is hereby authorized and directed to submit and collect from the
petitioners any expenses of the City incurred in establishing the proposed CFD in excess of said
deposit and not paid from the proceeds of special tax bonds issued for the CFD.
4. The name proposed for the CFD is Community Facilities District No. 2 (Paragon
Gateway).
5. The proposed boundaries of the CFD are as shown on the map of the CFD on file with
the City Clerk, which boundaries are hereby preliminarily approved and to which map reference is
hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be
recorded, said map of the boundaries of the CFD in the office of the County Recorder within ten
(10) days of the date of adoption of this Resolution.
6. The type of public facilities and services proposed to be financed by the CFD and
pursuant to the Code shall consist of those items listed as facilities on Exhibit A hereto and by this
reference incorporated herein (the "Facilities" and the "Services").
7. Except to the extent that funds are otherwise available to the CFD to pay for the
Facilities and Services and/or the principal and interest as it becomes due on bonds of the CFD
issued to finance the Facilities, a special tax sufficient to pay the costs thereof, secured by
recordation of a continuing lien against all non - exempt real property in the CFD, is intended to be
levied annually within the CFD, and collected in the same manner as ordinary ad valorem property
taxes. The proposed rate and method of apportionment of the special tax among the parcels of real
property within the CFD, in sufficient detail to allow each landowner within the proposed CFD to
estimate the maximum amount such owner will have to pay, are described in Exhibit B attached
hereto and by this reference incorporated herein.
8. It is the intention of this City Council acting as the legislative body for the CFD to
cause bonds of the City to be issued for the CFD pursuant to the Code to finance in whole or in
part the acquisition of the Facilities. Said bonds shall be in the aggregate principal amount of not to
exceed $2,100,000, shall bear interest payable semi - annually or in such other manner as this City
Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized
by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from
the date of the issuance thereof.
9. The levy of said proposed special tax shall be subject to the approval of the qualified
electors of the CFD at a special election. The proposed voting procedure shall be by mailed or
hand - delivered ballot among the landowners in the proposed CFD, with each owner having one
vote for each acre or portion of an acre such owner owns in the CFD.
10. Except as may otherwise be provided by law, all lands owned by any public entity,
including the United States, the State of California and/or the City, or any departments or political
subdivisions thereof, shall be omitted from the levy of the special tax to be made to cover the costs
and expenses of the Facilities and Services. In the event that a portion of the property within the
CFD shall become for any reason exempt, wholly or in part, from the levy of the special tax
described in Exhibit B, this City Council will, on behalf of the CH), increase the levy to the extent
necessary upon the remaining property within the CFD which is not exempt in order to yield the
required debt service payments and other annual expenses of the CFD, if any, subject to any
maximum special tax that may be levied.
11. The City Engineer of the City, as the officer having charge and control of the Facilities
and Services in and for the CFD, is hereby directed to study said proposed Facilities and Services
and to make, or cause to be made, and file with the City Clerk a report in writing, presenting the
following:
(a) A description of the Facilities and Services by type which will be required to
adequately meet the needs of the CFD.
(b) An estimate of the fair and reasonable cost of financing the Facilities and
Services including the cost of acquisition of lands, rights -of -way and easements, any
physical facilities required in conjunction therewith and incidental expenses in connection
-2-
with said financing, including the costs of the proposed bond financing and all other related
costs as provided by the Code.
Said report shall be made a part of the record of the public hearing provided for below.
12. Tuesday, November 20, 1990, at 7:30 p.m., in the regular meeting place of this City
Council, Council Chambers, City Hall, 2263 Santa Clara Avenue, Alameda, California, be, and
the same are hereby appointed and fixed as the time and place when and where this City Council,
as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD and
consider and finally determine whether the public interest, convenience and necessity require the
formation of the CFD and the levy of said special tax.
13. The City Clerk is hereby directed to cause notice of said public hearing to be given by
publication one time in a newspaper published in the area of the CFD. The publication of said
notice shall be completed at least seven days before the date herein set for said hearing. Said notice
shall be substantially in the form of Exhibit C hereto.
14. The law firm of Jones Hall Hill & White, A Professional Law Corporation, is hereby
designated as bond counsel to the City in connection with the formation of the CFL) and the special
tax bonds expected to be issued by the City for the CFD. The City Attorney is hereby authorized to
execute and deliver an agreement with said firm for services in connection with the CFD and said
bonds, the fees of said firm to be payable solely from the proceeds of said bonds and to be no
more than those charged for similar work as determined by the City Attorney.
15. The firm of Pacific Securities, Inc., is hereby designated as underwriter to the City in
connection with the special tax bonds expected to be issued by the City for the CFD. The Finance
Director is hereby authorized to execute and deliver an agreement with said firm for underwriting
services for said bonds, in a form acceptable to the Finance Director.
CITY OF ALAMEDA
a • • r s •
(Paragon Gateway)
DESCRIPTION OF FACILITIES AND SERVICES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2 (PARAGON GATEWAY)
The following Facilities and Services shall be financed by Community Facilities District
No. 2 (Paragon Gateway) (the "CFD") of the City of Alameda:
FACILITIES
1. The acquisition of off -Site street tree planting, including the acquisition of nursery stock,
pavement removal as required, soil preparation and amendment, excavation, planting, staking
and the installation of required irrigation systems and related controls, sidewalk grates and
related appurtenances and auxiliary work required such planting activities
2. The acquisition of off -site transportation facilities, including public bicycle lockers and
appurtenances and BART shuttle vans and buses
3. The acquisition of a sidewalk and landscape buffer along the northern frontage of the lands of
Paragon Development on the south side of Mariner Square Loop, including all required
grading, excavation, site preparation, installation of curb, gutter, sidewalk, landscaping,
irrigation systems and controls and all auxiliary work required for completion.
4. The construction of all or a portion of the following improvements:
a. Sidewalk and striped bike path connecting the lands of Paragon Development with the
existing sidewalk along the eastern side of Mariner Square Drive presently terminating at
Tynan Avenue, including crosswalk striping at the Mariner Square Drive /Marina Village
Parkway intersection;
b . Road reconstruction and channelization improvements at the intersection of Tinker
Avenue and the Posey Tube Ramps, including all required demolition, excavation,
installation of curbs, gutters, sidewalks, pavement, median islands, lights, signs, striping
and appurtenances.
c. The extension of Mosely- Mitchell Avenue to connect Mariner Square Loop with Main
Street, including all required demolition, excavation, installation of curbs, gutters,
sidewalks, pavement, signals, signs, striping and appurtenances;
_I, Channelization improvements and a pedestrian crossing at the Tynan/Con stitution/
Mariner Square Drive intersection, including all required demolition, excavation,
installation of curbs, gutters, sidewalks, raised medians, signals, signs, striping and
appurtenances; and
e. Improvements to the Beltline Railroad street crossing at Sherman Street, including all
required demolition, excavation, roadway realignment, acquisition of rights -of -way,
easements, franchises and permits, and installation of all required curbs, gutters,
pavement, crossing protection gates, signals, signs, striping and appurtenances.
EXHIBIT A
Page 1
5. The construction of a portion of the improvements to the 7th Street/Harrison Street intersection
of the exit from the Posey Tube in Oaldand, including all required demolition, excavation, and
the installation of a double right -turn lane, controller upgrades, required median modifications
and any required relocation of EBMUD water mains.
6. The acquisition of electric duct systems for the Alameda Bureau of Electricity adjacent to the
lands of Paragon Development, including all required easements, rights -of -way, franchises
and permits, excavation, installation of ducts, pull boxes and appurtenances, backfilling and
repavement.
7. The acquisition of public sculpture to be located within public right of way adjacent to the
lands of Paragon Development.
8. The acquisition of a detailed acoustical analysis, to be prepared by a licensed acoustical
engineer, demonstrating compliance with Community Noise Standards of the City of
Alameda Zoning Ordinance Chapter 5.
SERVICES
1. The provision of a portion of the transportation services by the City of Alameda, including the
operation and administration of shuttle vans or buses connecting with existing local and
regional transportation facilities and public park - and -ride facilities, the operation and
maintenance of public car pool parking facilities and bicycle lockers and the dissemination of
information related to such public transportation facilities; and
2. Administrative services of the City relating to the annual collection of the special taxes,
investment of funds related to and the timely payment of the installments of principal and
interest on any special tax bonds to be issued by the City for the CFD and any other expenses
incurred by the City with respect to the CFD, including outside consultants, trustees, paying
agents and legal counsel.
The foregoing Facilities shall include the attributable costs of engineering, design, planning
and coordination, together with the expenses related to the issuance and sale of any special tax
bonds, including underwriters' discount, appraisals, reserve fund, capitalized interest, bond
counsel, special tax consultant, bond and official statement printing and all other expenses
incidental thereto, The Facilities shall be constructed, whether or not acquired in their completed
states, pursuant to plans and specifications approved by the City of Alameda and the officials
thereof, including the City Engineer.
EXHIBIT A
Page 2
CITY OF ALAMEDA
(Paragon Gateway)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax applicable to each assessor's parcel in the CFD shall be levied and collected
according to the tax liability determined by the Finance Director of the City of Alameda, or his or
her designee, through the application of the rate and method of apportionment of the Special Tax
set forth below. All of the property in the CFD, unless exempted by law, shall be taxed to the
extent and in the manner herein provided.
The Special Tax is to be levied by the CFD each Fiscal Year in an amount sufficient to pay
Annual Costs as defined and provided below. The Special Tax may be levied each Fiscal Year in
an aggregate amount not to exceed $280,000 which shall be the Maximum Special Tax. The
maximum bonded indebtedness for the CFD is $2,1 00,000.
The actual Special Tax to be levied each Fiscal Year will be calculated for each Parcel as
follows:
Taxable Square Foot of improvements Per Parcel X Annual Costs = Special Tax
Total Taxable Square Feet of Improvements of the CH)
In the event all or a portion of the Special Tax is prepaid (the "Prepaid Special Tax "), the
Special Tax and the Maximum Special Tax shall be reduced in the proportion that the amount of the
Prepaid Special Tax bears to the Total Special Tax prior to such prepayment, as provided by the
Formula for Prepayment of Special Tax Obligation attached hereto as Attachment 1 and
incorporated herein by reference.
DEFINITIONS
"Administrative Fees or Expenses" means any or all of the following: the fees and
expenses of the Fiscal Agent (including any reasonable fees or expenses of its counsel), the
expenses of the City of Alameda in carrying out its duties with respect to the CFD (including, but
not limited to, the levy and collection of the Special Taxes), including the fees and expenses of its
counsel, any fees of the County of Alameda, with respect to the collection of the Special Taxes for
the CFD, an allocable share of the salaries of the City of Alameda staff directly related to the
administration of the CFD, a proportionate amount of general City of Alameda general
administrative overhead related thereto, any amounts paid by the City of Alameda from its general
funds with respect to the CFD, and all other costs and expenses of the City of Alameda or the
Fiscal Agent incurred in connection with the discharge of their respective duties under the CFD
and, in the case of the City of Alameda, in any way related to administration of the CFD.
"Annual Costs" for any Fiscal Year, equals the sum of (i) Debt Service for such Fiscal
Year; (ii) expected Administrative Fees or Expenses for such Fiscal Year (iii) the amount, if any,
necessary to replenish the Reserve Fund for the Bonds, plus an amount equal to delinquencies in
the payment of Special Taxes levied in the previous Fiscal Year (iv) the Services; and (v) any other
payment required under the Fiscal Agent Agreement and any supplement or amendment thereto, for
such Fiscal Year.
EXHIBIT B
Page 1
"Bonds" means any and all bonds issued by or for the City of Alameda Community
Facilities District No. 2 (Paragon Gateway).
"CFD " means City of Alameda Community Facilities District No. 2 (Paragon Gateway) of
the City of Alameda.
"City Council" means the City Council of the City of Alameda acting as the legislative body
of the CFD.
"Code" means Chapter 16 of Title Ill of the Alameda Municipal Code.
"Debt Service ", for each Fiscal Year, means the total annual principal and interest payments
on the Bonds during such Fiscal Year, less investment earnings on the Reserve Fund not required
to be set aside pursuant to the Fiscal Agent Agreement for purposes of rebate pursuant to the
federal government pursuant to the Internal Revenue Code of 1986, and less any capitalized
interest and any other amounts remaining in the Bond Fund held under the Fiscal Agent Agreement
from the previous Fiscal Year.
"Fiscal Agent" means Fiscal Agent under the Fiscal Agent Agreement,
"Fiscal Agent Agreement" means the agreement or agreements by and between the City of
Alameda Community Facilities District No. 2 (Paragon Gateway) and the Fiscal Agent approved
pursuant to a resolution adopted by the City Council as the legislative body of the CFD, including
any amendments or supplements thereto.
"Fiscal Year" means the period starting on July 1 and ending the following June 30 in any
year in which the Bonds are outstanding.
"Maximum Special Tax" means the maximum Special Tax that may be levied by the CFD in
any Fiscal Year.
"Par-cer' means any County of Alameda Assessor's parcel or portion thereof that is within
the boundaries of the CFD, based on the equalized tax rolls of the County of Alameda as of March
1 in the prior Fiscal Year.
"Reserve Fund" means the fund of that name created under the Fiscal Agent Agreement(s).
"Resolution of Issuance" means any resolution adopted by the City Council, acting as the
legislative body of the CFD, authorizing the issuance of the Bonds in accordance with the Code.
"Services" means the transportation services to be funded annually by the CFD in an
amount not to exceed $35,000 each fiscal year.
"Special Tax" means any tax levied within the OD pursuant the the Code.
"Taxable Square Feet" means the gross square footage of improvements on a Parcel as
indicated on building permits), duly filed and approved by the City of Alameda, on any Parcel
within the boundaries of the CFD that is not exempt by law from the Special Tax.
"Total Special Tax" means the total special taxes that will be levied on the Total Taxable
Square Feet of the �D.
EXHIBIT B
Page 2
"Total Taxable Square Feet of the CFD" means the aggregate Taxable Square Feet of
improvements on all the Parcels in the CFD, excluding those Taxable Square Feet of improvements
on a Parcel for which the Special Tax has been prepaid.
EXHIBIT B
Page 3
FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATION
Any property owner in the CFD that desires to prepay the Special Tax shall notify the Finance
Director of the City of Alameda of such intention and the amount of prepayment no more than sixty(60)
days and no less than forty -five (45) days prior to date of such prepayment. The entire Special Tax for any
Parcel of property in the CFD may be prepaid at least ten (10) Business Days (as defined in the Fiscal Agent
Agreement) prior to any Interest Payment Date (as such term is defined in the Fiscal Agent Agreement) as
follows:
a. The Parcel to be prepaid must not be delinquent in any payment of Special Tax. Prepayment hereunder
shall not relieve any property owner from paying those Special Taxes which have already become due
and payable, and the Notice of Cessation of Special Tax Lien shall not be recorded pursuant to
California Government Code, Section 53344, until those Special Taxes have been paid.
b. All of the authorized Bonds of the CFD must be issued, or the City Council, acting as the legislative
body of the CH), must pass a resolution stating that no further bonds will be issued by the CFD.
c. The Special Tax and the Minimum Special Tax for the Parcel to be prepaid, as of the prepayment date
which shall be on an Interest Payment Date, shall be calculated as a percentage of the annual Special Tax
and the Maximum Special Tax that could be levied on the Total Taxable Square Feet of the CFD as of
the Interest Payment Date.
d. The percentage set forth in "c" above shall be applied to the total amount of outstanding Bonded
Indebtedness of the CFD. The total amount of Bonded Indebtedness of the CFD shall be calculated as
of the date through which principal has been paid (or will be paid by Special Taxes which have already
become due and payable).
e. Interest on the amount calculated under "d" above shall be calculated at the bond interest rate from the
last preceding Interest Payment Date on the Bonds to the prepayment date, which shall be an Interest
Payment Date, unless interest to the next Interest Payment Date is to be paid from Special Taxes which
have already been paid or which have become due and payable.
f. The Reserve Fund shall be reduced in the same proportion as the prepaid Special Tax bears to the Total
Special Tax, and such reduction in the Reserve Fund (the `Reserve Fund Credit ") may be (i) applied to
the prepayment of the Special Tax, or (ii) refunded to the taxpayer prepaying the Special Tax in the
event that the taxpayer chooses to prepay the Special Tax without regard to the proportionate amount
contained within the Reserve Fund relating to said taxpayers parcel.
An additional premium for any negative arbitrage during any period of defeasance (investment of
prepaid monies, in direct U.S. Government securities, as more fully described in the Fiscal Agent
Agreement, during the call- protection period and prior to the retirement of Bonds) shall be calculated
thirty (30) days in advance of the prepayment date, which shall be any Interest Payment Date, by an
independent certified public accountant acceptable to the CFD, in a writing addressed to the CFD,
effective as of the prepayment date. The fee of the independent certified public accountant shall be paid
by the owner of the Parcel to be prepaid.
h. The prepayment premium on the Bonds at the end of the call - protection period, as set forth in the Fiscal
Agent Agreement, if any, shall be applied to the amount determined under "d" above. The owner of the
Parcel to be prepaid may request that redemption be postponed until Bonds may be called without
premium. This may have an impact on the amount calculated under "g" above.
i. The amount to be prepaid for any Parcel of property shall be the sum of the amounts calculated for that
parcel under paragraphs "d" through "h ", above, plus the reasonable costs and expenses of performing
the calculations, preparing and recording the Notice of Cessation of Special Tax Lien and any other acts
or procedures required to be performed in connection with the prepayment (such amount shall be
referred to in the Fiscal Agent Agreement as the "Prepayment Amount").
g.
Attachment 1
EXHIBIT B
Page 4
NOTICE OF PUBLIC HEARI NG
CITY OF ALAMEDA
Community Facilitio District No. 2
(Paragon Gateway)
Notice is hereby given that on November 7, 1990, the City Council of the City of Alameda
adopted a Resolution entitled "A Resolution of Intention To Establish A Community Facilities
District And To Authorize The Levy Of Special Taxes ". Pursuant to Chapter 16 of Title III of the
Alameda Municipal Code (the "Code' ") the City Council hereby gives notice as follows:
A. The text of said Resolution of Intention is as follows:
[text of resolution goes here]
. The time and place established under said Resolution for the public hearing required
under the Code are Tuesday, November 20, 1990, at the hour of 7:30 p.m., in the regular meeting
place of the City Council of the City of Alameda, Council Chambers, City Hall, 2263 Santa Clara
Avenue, Alameda, California.
C. At said hearing, the testimony of all interested persons or taxpayers for or against the
establishment of the CFD, the extent of the CFD or the furnishing of the specified types of facilities
will be heard. Any person interested may file a protest in writing as provided by the Code. If the
owners of one-half or more of the area of land in the territory proposed to be included in the CFD
file written protests against the establishment of the CFD and the protests are not withdrawn to
reduce the value of the protests to less than a majority, the City Council shall take no further action
to establish the CFD for period of one year from the date of said hearing, and if the majority
protests of the landowners are only against the furnishing of a type or types of facilities within the
CFD, or against levying a specified special tax, those types of facilities or the specified special tax
will be eliminated from the proceedings to form the CFD.
D. The proposed voting procedure shall be by special mail or hand - delivered ballot to the
property owners within the territory proposed to be included in the CFD.
Dated as of November 7, 1990
City Clerk
City of Alameda
EXHIBIT C
1, the undersigned, hereby certify that-the foregoing
Resolution was duly and regularly adopted and passed by
the Council of the City of Alameda in adjourned regular
meeting assembled on the 7th of November, 1990
by the following vote to wit:
AYES: Councilmembers Arnerich, Camicia, Thomas, Withrow
and President Corica 5,
NOES: None.
ABSENT: None,
IN WITNESS WHEREOF, I have hereunto set any hand and
affixed the official seal of said City this 8th day of
November, 1990.
nane e sch, City Clerk
City of Alameda