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HomeMy WebLinkAbout16 ANNEX TO COT CFD 06-1 09-02-08Agenda Item 16 Reviewed: ' AGENDA REPORT City Manager Finance Director MEETING DATE: September 2, 2008 TO: William A. Huston, City Manager FROM: Ronald A. Nault, Finance Director SUBJECT: PETITION TO ANNEX TERRITORY TO CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 SUMMARY: When Tustin Community Facilities District No. 06-1 was created by the City Council in July 2006, a small portion of the property was within a LIFOC (Lease in Furtherance of Conveyance) area and still owned by the Department of the Navy. The additional area has been released by the Navy and transferred to Moffett Meadows Partners, LLC., Lennar Homes of California, Inc., and LandSource Holding Company, LLC, (collectively, the "Landowner"). Under the Mello-Roos Community Facilities Act, the Landowner has petitioned the City to annex approximately 46 parcels to CFD 06-1. RECOMMENDATION: 1. Accept the Landowner's petition to annex territory to Community Facilities District No. 06-1. 2. Adopt Resolution No. 08-62, a Resolution of the City Council of the City of Tustin, of intention to annex territory to City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages). FISCAL IMPACT: The full cost of the proposed annexation, estimated at $65,000, will be paid by the Landowner. A deposit in that amount has been submitted with the attached petition. DISCUSSION: When Community Facilities District No. 06-1 was created it was intended that when the LIFOC area was released by the Navy, the Landowner would petition for annexation to the District. There is a reference to that effect on the boundary map attached to Resolution No. 06-89 creating the District in June 2006. The original Resolution is attached to this report for reference. The Mello-Roos Community Facilities Act of 1982 allows the City Council to annex new territory to an existing CFD if it is petitioned by the Landowners with all costs to complete the annexation to be borne by the Landowners. The City Council's adoption of Resolution No. 08-62 will put the annexation in motion to include a public hearing, election, and the approval of a special tax to pay for all facilities and services previously outlined for the District. Ron Id A. Nault Finance Director Attachments CommunityFacilitiesDistrict06-1 PetitionToAnnexTerritoryStaffReport. doc RESOLUTION NO. 06-89 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN OF FORMATION OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT AND ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT WHEREAS, on June 5, 2006, the City Council (the "City Council"} of the City of Tustin (the "City"), pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act"), adopted a resolution entitled "A Resolution of the City Council of the City of Tustin of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes" (the "Resolution of Intention"), stating its intention to establish a community facilities district (the "Community Facilities District") proposed to be named City of Tustin Community Facilities District No. 06-1 {Tustin Legacy/Columbus Villages), to authorize the levy of special taxes within the Community Facilities District to finance certain public facilities and services and setting the date for a public hearing to be held on the establishment of the Community Facilities District; WHEREAS, pursuant to the Resolution of Intention, notice of said public hearing was published in the Orange County Regisfer, a newspaper of general circulation published in the area of the Community Facilities District, in accordance with the Act; WHEREAS, on this date, the City Council opened, conducted and closed said public hearing; WHEREAS, pursuant to the Resolution of Intention, each officer of the City who is or will be responsible for providing one or more of the proposed types of public facilities or services was directed to study, or cause to be studied, the proposed Community Facilities District and, at or before said public hearing, file a report with the City Council containing a brief description of the public facilities and services by type which will in his or her opinion be required to adequately meet the needs of the Community Facilities District, and his or her estimate of the cost of providing such public facilities and services; such officers were also directed to estimate the fair and reasonable cost of the public facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid; WHEREAS, said report was so filed with the City Council and made a part of the record of said public hearing; WHEREAS, at the hearing, the testimony of all interested persons and taxpayers for or against the establishment of the Community Facilities District, the extent of the Resolution No. 06-89 Page 1 of 34 Community Facilities District and the furnishing of the specified types of public facilities or services was heard; WHEREAS, written protests against the ~ establishment of the Community Facilities District, the furnishing of any specified type or types of facilities or services within the Community Facilities District or the levying of any specified special tax were not made or filed at or before said hearing by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the Community Facilities District, or the owners of one-half or more of the area of land in the territory proposed to be included in the Community Facilities District and not exempt from the special tax; WHEREAS, there has been filed with the City Clerk of the City a letter from the Registration and Elections Department of the County of Orange indicating that 12 or more persons have not been registered to vote within the territory of the proposed Community Facilities District for each of the 90 days preceding the close- of said public hearing; WHEREAS, Section 53314.9 of the Act provides that, at any time either before or after the formation of a community facilities district, the legislative body may accept advances of funds from any source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a community facilities district; WHEREAS, Section 53314.9 of the Act further provides that the legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds, to repay all or a portion of the funds advanced, as determined by the legislative body, with or without interest, under all the following conditions: (a) the proposal to repay the funds is included in both the resolution of intention to establish a community facilities district adopted pursuant to Section 53521 of the Act and in the resolution of formation to establish a community facilities district pursuant to .Section 53325.1 of the Act, (b) any proposed special tax is approved by the qualified electors of the community facilities district pursuant to the Act, and (c) any agreement shall specify that if the qualified electors of the community facilities district do not approve the proposed special tax, the local agency shall return any funds which have not been committed for any authorized purpose by the time of the election to the person or entity advancing the funds; WHEREAS, the City and Marble Mountain Partners, LLC. ("Marble Mountain"} have entered into a Cooperative Agreement, dated February 7, 2005 (the °Cooperative Agreement"), that provides for the advancement of funds by Marble Mountain to be used to pay costs of construction of certain public facilities proposed to be financed by the Community Facilities District, and provides for the reimbursement to Marble Resolution No. 06-89 Page 2 of 34 Mountain of such funds advanced, with .interest, from the proceeds of bonds issued by the Community Facilities District; and WHEREAS, the City and Lennar Homes of California, Inc. ("Lennar") have entered into a Deposit and Reimbursement Agreement, dated as of June 1, 2Q06 (the "Deposit Agreement"), pursuant to which Lennar has heretofore advanced certain funds, and Lennar has agreed to advance additional funds, which have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby and, in accordance with Section 53314.9 of the Act, the City desires to accept such advances and to reimburse Lennar therefor, without interest, from the proceeds of special tax bonds issued by the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section i. The foregoing recitals are true and correct. Act. Section 2. The Community Facilities District is hereby established pursuant to the Section 3. The Community Facilities District is hereby named "City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)." Section 4. The public facilities (the "Facilities") proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit A hereto, which is by this reference incorporated herein. The portion of such Facilities proposed to be purchased as completed public facilities is described under the caption "Completed Facilities" on Exhibit A hereto. The services (the "Services") proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit A hereto. The incidental expenses proposed to be incurred are identified under the caption "Incidental Expenses" on Exhibit A hereto. All or any portion of the Facilities may be financed through a financing plan, including, but not limited to, a lease, lease-purchase or installment-purchase arrangement. Section 5. The proposed special tax to be levied within the Community Facilities District has not been precluded by majority protest pursuant to Section 53324 of the Act. Section 6. Except where funds are otherwise available, a special tax sufficient to pay for all Facilities and Services, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District, will be annually levied within the Community Facilities District. The rate and method of apportionment of the special tax (the °Rate and Method"), in sufficient detail to allow each landowner within Resolution No. 06-89 Page 3 of 34 the proposed Community Facilities District to estimate the maximum amount that he or she will have to pay, is described in Exhibit B attached hereto, which is by this reference incorporated herein. The conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied are specified in the Rate and Method. The special tax will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council shall determine, including direct billing of the affected property owners. The tax year after which no further special tax to pay for public facilities will be levied against any parcel used for private residential purposes is specified in the Rate and Method. Under no circumstances shall the special tax to pay for public facilities levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District by more than 10%. For purposes of this paragraph, a parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. Section 7. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves to itself the right and authority to allow any interested owner of property within the Community Facilities District, subject to the provisions of said Section 53344.1 and to those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the Community Facilities District treasurer in full payment or part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. Section 8. The name, address and telephone number of the office which will be responsible far preparing annually a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating further special tax levies pursuant to Section 53340.1 of the Act are as follows: Finance Director, City of Tustin, 300 Centennial Way, Tustin, California 92680, (714) 573-3061. Section 9. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Califomia Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the Community Facilities District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City Council ceases. Section 10. The boundary map of the Community Facilities District has been recorded in the County of Orange in Book 91 at Pages 37-39 of Maps of Assessments and Community Facilities Districts in the- office of the County Recorder of the County of Orange as Instrument No. 2006000399917. Resolution No. 06-89 Page 4 of 34 Section ii. The annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the Community Facilities District is hereby established at $65,000,000. Section 12. Pursuant to the provisions of the Act, the levy of the special tax and a proposition to establish the appropriations limit specified above shall be subject to the approval of the qualified electors of the Community Facilities District at a special election. The City Council hereby finds and determines that 12 or more persons have not been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearing held by the City Council on the establishment of the Community Facilities District. Accordingly, pursuant to Section 53326 of the Act, the vote shall be by the landowners of the Community Facilities District and each landowner who is the owner of record as of the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre that he or she owns within the Community Facilities District. The voting procedure shall be by mailed orhand-delivered ballot. Section 13. Marble Mountain has heretofore advanced certain funds, and may advance additional funds, which have been or may be used to pay costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council has previously approved the acceptance of such funds for the purpose of paying costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council proposes to repay all or a portion of such funds expended for such purpose, solely from the proceeds of such bonds, pursuant to the Cooperative Agreement. The Cooperative Agreement is hereby incorporated herein as though set forth in full herein. Section 14. Lennar ha.s heretofore advanced certain funds, and may advance additional funds, which have been or may be used to pay casts incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council has previously approved the acceptance of such funds for the purpose of paying costs incurred in connection with the creation of the Community Facilities District and the issuance of special tax bonds thereby. The City Council proposes to repay all or a portion of such funds expended for such purpose, solely from the proceeds of such bonds, pursuant to the Deposit Agreement. The Deposit Agreement is hereby incorpora#ed herein as #hough set forth in full herein. Section 15. The City Council hereby finds and determines that all proceedings up to and including the adoption of this Resolution were valid and in conformity with the requirements of the Act. In accordance with Section 53325.1 of the Act, such finding shall be final and conclusive. Resolution No. 06-89 Page 5 of 34 Section 16. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. Section 17. This Resolution shall take effect immediately upon its adoption. APPROVED and ADOPTED by the City Council of the City of Tustin on July 17, 2006. ATTEST: PA ELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) !, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 06-89 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17"' day of July, 2006 by the following vote: COUNCILMEMBER AYES: Davert, Hagen, Amante, Bone, Kawashima {5) COUNCILMEMBER NOES: ~o~ COUNCILMEMBER ABSTAINED: (o) COUNCILMEMBER ABSENT: ..,, PAMELA STOK7=F~ City .Clerk Resolution No. 06-89 Page 6 of 34 EXHIBIT A FACILITIES, SERVICES AND INCIDENTAL EXPENSES Facilities The types of facilities proposed to be financed by the Community Facilities District are s#reet improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, storm drains, utilities, public parks and recreation facilities, public library facilities, fire protection facilities and equipment and land, rights-of-way and easements necessary for any of such facili#ies. Completed Facilities The types of facilities to be purchased as completed facilities are street improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, storm drains, utilities, public parks and recreation facilities, public library facilities, fire protection facilities and equipment and land, rights-of-way and easements necessary for any of such facilities. Services The types of services proposed to be financed by the Community Facilities District are police protection services, fire protection services, ambulance and paramedic services, recreation program services, maintenance of parks, parkways and open space and flood and storm protection services. Incidental Expenses The incidental expenses proposed to be incurred include the following: {a} the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; (b) the costs associated with the creation of the Community Facilities District, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and (c) any other expenses incidental to the construction, completion, and inspection of the authorized work. Resolution No. 06-89 Page 7 of 34 EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Resolution No. 06-89 Page 8 of 34 RATE AND METHOD OF APPORTIONMENT FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT N0.06-1 (TUSTIN LEGACY/COLUMBUS VII,LAGES) A Special Tax shall be levied on all Assessor's Parcels in the City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) ("CFD No. 06-1 ") and collected each Fiscal Year commencing in Fiscal Year 2006-2007, in an amount determined through the application ofthe Rate and Method of Apportionment as described below. All ofthe real property in CFD No. 06-1, unless exempted by law or by the provisions hereof, 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 meanings: "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 map, parcel map, condominium plan, or other recorded County parcel map. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Division 2 of Title 5 of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 06-1: 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 or otherwise); the costs ofremitting the Special Taxes to the Trustee; the costs ofthe Trustee {including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 06-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 06-1 or any designee thereof of complying with City, CFD No. 06-1 or obligated persons disclosure requirements of applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs ofthe City, CFD No. 06-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from any escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 06-1 for any other administrative purposes of CFD No. 06-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure as a result of delinquent Special Taxes. "Affordable Units" means residential dwelling units located on one or more Assessor's Parcels of Residential Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units shall be further classified as Moderate Income, Lower Income, or Very City of Tustin -Tustin Legacy/Columbus Villages r~GSUw oa CFD No. 06-1 ag~~p~34 Low Income (as defined in Sections 50079.5, 50093, and 50105 of the California Health and Safety Code) and Affordable Housing Costs for said households are defined in Section 50052.5 (9b) of the California Health and Safety Code. Before the annexation of the Future Annexation Area, the total number of Affordable Units in Zone 1 shall not exceed 71 Moderate Income units, 117 Lower Income Units and 61 Very Low Income units and the total number of Affordable Units in Zone 2 shall not exceed 30 Moderate Income units and 12 Very Low Income units. After the annexation of the Future Annexation Area, the total number of Affordable Units in Zone 1 shall not exceed 80 Moderate Income units, 125 Lower Income Units and 61 Very Low Income units and the total number of Affordable Units in Zone 2 shall not exceed 30 Moderate Income units and 12 Very Low Income units. Affordable Units constructed within each Zone within the CFD shall be designated by the CFD Administrator in the chronological order in which the building permits for such units are issued within that Zone. However, if for either Zone, the total number of Affordable Units constructed in any one of the three affordable income categories exceeds the amount stated above for such income category, then the units exceeding such total shall not be considered Affordable Units and shall be assigned to a Land Use Class based on the type of use and Residential Floor Area for each such unit. "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. "AutLorized Services" means those authorized services proposed to be financed by CFD No. 06-1 pursuant to the Act and listed in Exhibit A to this Rate and Method of Apportionment. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 06-1 under the Act. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement forFacilitiesand the Special Tax Requirement for Services and providing for the levy and collection of the Special Taxes. "CFD No. 06-1" means City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages}. "City" means the City of Tustin. "Consumer Price Index" means, for each Fiscal Year, the Consumer Price Index published by the U.S. Bureau of Labor Statistics for "All Urban Consumers" in the Los Angeles - Anaheim -Riverside Area, measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the City of Los Angeles. Resolution No. 06-89 F8 n -Tustin Legacy/Columbus Villages July 17, 2006 CFD No. 06-1 Page 2 "Council" means the City Council of the City, acting as the legislative body of CFD No. 06- l. "County" means the County of Orange. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which the Final Subdivison was recorded on or prior to January 1 of the prior Fiscal Year and a building permit for new construction was issued after January 1, 2005 and prior to May 1 of the prior Fiscal Year. "Final Subdivision" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, 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 building permits may be issued without further subdivision. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Future Annexation Area" means the property designated as Future Annexation Area on the boundary map for CFD No. 06-1, as identified in Exhibit B. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amendedand/or supplemented from time to time. "Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax" means the maximum Special Tax A andlor maximum Special Tax B, as applicable. "Maximum Special Tax A" means the Maximum Special Tax A determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 06-1. "Maximum Special Tax B" means the Maximum Special Tax B determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 06-1. "Non-Residential Property" means all-Assessor's Parcels ofDeveloped Property for which a building permit permitting the construction of one or more non-residential units or facilities has been issued by the City. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. Resolution No. 06-89 Clty of Tustin -Tustin Legacy/Colutr~bus irllages u ~ 0 34 CFD No. 06-I page g "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 06-1 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax A levy to the Maximum Special Tax A is equal for all Assessor's Parcels of Developed Property and that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may similarly be applied to other categories of Taxable Property as listed in Section E below. "Public Property" means property within the boundaries of CFD No. 06-1 owned by, irrevocably offered or dedicated to, or over, through or under which an easement for purposes of public right-of--way has been granted, to the federal government, the State, the County, the City, or any local government or other public agency, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. "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 detenmination of Residential Floor Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Residential Property" means all Assessor's Pazcels of Developed Property for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Single Family Attached Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for attached residential units. "Single Family Detached Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for detached residential units. "Special Tax" means the Special Tax Aand/or Special Tax B, as applicable. "Special Tax A" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 06-1 to fund the Special Tax Requirement for Facilities. "Special Tax A Buydown" means a mandatory bond principal buydown payment made by the property owner to reduce the amount of Outstanding Bonds to compensate fora loss of Special Tax A revenues resulting from the construction of fewer residential dwelling units, smaller residential dwelling units, or a modified amount of non-residential Acreage, as determined in accordance with Section D below. Resolution No. 06-89 Pe ty u n -Tustin Legacy/Columbus Villages Ju! 17 2006 y CFD No. 06-1 _ Paxe 4 "Special Tax B" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 06-1 to fund the Special Tax Requirement for Services. "Special Tax Requirement for Facilities" means that amount required in any Fiscal Year for CFD No. 06-1 to: (i) pay debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds due in the calendaz year commencing in such Fiscal Year; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax A delinquencies based on the delinquency rate for the Special Tax A levy in the previous Fiscal Year; (vi) pay directly for acquisition or construction of Authorized Facilities to the extent that the inclusion of such amount does not increase the Special Tax for Facilities levy on Undeveloped Property; less {vii) a credit for funds available to reduce the annual Special Tax A levy, as determined by the CFD Administrator pursuant to the Indenture. "Special Tax Requirement for Services" means that amount required in any Fiscal Year for CFD No. 06-1 to (i) pay directly for Authorized Services due in the ca]endar year commencing in such Fiscal Year; (ii) pay a proportionate shaze of Administrative Expenses; less (iii) a credit for funds available to reduce the annual Special Tax B levy, as determined by the CFD Administrator. "State" means the State of Califona. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 06-1 which. are not exempt from the Special Tax pursuant to law or Section F below. "Taxable Property Owner Association Property" means, for each Fiscal Year, all Assessor's Parcels of Property Owner Association Property that are not exempt from the Special Tax pursuant to Section F below. "Taxable Public Property" means, for each- Fiscal Year, all Assessor's Parcels of Public Property that are not exempt from the Special Tax pursuant to Section F below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classi,ied as Developed Property, Taxable Public Property or Taxab]e Property Owner Association Property. "Zone" means Zone 1 or Zone 2, as applicable. "Zone 1" means the land geographically identified as Tract 16851 on a map filed in B~ Kok 877, Pages 33 through 50 of Miscellaneous Maps, and as Instrument Number 200600148498, in Records of Orange County, California, excepting therefrom lots 242, 243, Resolution No. 06-89 City of Tustin -Tustin Legacy/Columbus ~Ilages u ~ 0 34 CFD No. 06-1 Page S 244, 245, 332, 333, 341, 342, 346, 348, 349, 350, 351, 352, 353, 354, 355, 361, F (portion), G (portion), Z, AA, AB, AC, AM (portion}, AN, AO, AP, AQ, AR, BA, BB (portion}, ZA, ZB and DDL. "Zone 2" means the land geographically identified as Tract 16582 on a map filed in Book 874, Pages 1 through 30 of Miscellaneous Maps, and as instrument number 200500867370 in Records of Orange County, California. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fisca] Year, all Taxable Property within each Zone shall be classified as Developed Property, Taxable Public Property, Taxable Property Owner Association Property, or Undeveloped Property, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections C, D, and E below. C. MAXIMUM SPECIAL TAX 1. Developed Property (a}. Maximum Special Tax The Maximum Special Tax A and the Maximum Special Tax B for each Land Use Class in each Zone is shown below in Tables 1 and 2. The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the Maximum Special Tax A plus Maximum Special Tax B applicable to such Assessor's Parcel for the Zone in which the Assessor's Parcel is located. Resolution No. 06-89 Pa u n - Tusdn Le ac /Calun-bus Yilla es 8 y g July 17,1006 CFD No. 06-1 Page 6 TABLE 1 Maximum Special Taz for Developed Property in Zone City of Tustin Community Facilities District No. 06-1 (Tustin LegacylColumhus Villages) Fiscal Year 2006-2007 i l I i~ ` ---,, .-..... I(@ ll'ii r 1 ~~~ °' 1 t .- - ~ { _i11.. ilr_: ~~: ~{ ~ ,i ~ i'...~`~pp - :f1 ~ . ~.. ~ ~,ad,.-, t li" '~ 4 . ~ /~ II~N}! .! ! N1 ~1 i CI Single Family Detached Property ' - I t i ~ -. ,..:.~!' : ?r ~ iJdr. fra > 3,600 s.f. .. ~ !} .St-ISI.Nf .~' ~ Ai. 1 $3,256 per unit i '~13': i~i1~~k`~t ' ~, t S !f~(t I i :11 ~: ti;{+f $1,950 per unit 2 Single Family Detached Property 3,226 - 3,600 s.f. $2,843 per unit $1,7~ 5 per unit 3 Single Family Detached Property 2,851- 3,225 s.f. $2,507 per unit $1,538 per unit 4 Single.Family Detached Property 2,476 - 2,850 s.f. $2,498 per unit $1,425 per unit 5 Single Family Detached Property 2,101 - 2,475 s.f. $2,229 per unit $1,245 per unit 6 Single Family Detached Property <= 2,100 s.f. $2,217 per unit $1,1:'0 per unit 7 Single Family Attached Property > 2,550 s.f. $2,410 per unit $1,3:5 per unit 8 Single Family Attached Property 2,301 - 2,550 s.f. $2,338 per unit $1,2(10 per unit 9 Single Family Attached Property 2,051 - 2,300 s.f. $2,217 per unit $1,1; 0 per unit 10 Single Family Attached Property 1,801 -.2,050 s.f. $1,905 per unit $1,0:0 per unit 11 Single Family Attached Property 1,551 - 1,800 s.f. $1,352 per unit $7~5 per unit 12 Single Family Attached Property <= 1,550 s. f. $895 per unit $6(+0 per unit 13 Senior Units NA $734 per unit $4F.8 per unit 14 Affordable Units -Moderate NA $350 per unit $6C+0 per unit 15 Affordable Units -Low NA $200 per unit $200 per unit 16 Affordable Units -Very Low NA $50 per unit $SO per unit 17 Non-Residential Property NA $22,478 per Acre $6,001- per Acre Resolution No. 06-89 City ojTustie -Tustin Legacy/ColLmbus Vr!/ages u ~ 0 34 CFD No. 06-1 page 7 TABLE 2 Maximum Special Tax for Developed Property in Zone 2 City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) Fiscal Year 2006-2007 _.. { A ........, ,, •• ..... -'-:,- :< -' .,4, ?~~;~# f• : - ..., r.d z ,...,,, - ...-.... _.r.-.: , ,... .._.... r:,,,.; ,,N F; ..._>:;:::. ~,~t.,,+,• ,, ~f, - Il•,.•.,....._. ..__-:,-:::.{-.>{,,~#., Ih,t. ; ........_. _,~ ,!f !~ 4 7~i Sb Ic .u_!(,_,.,,! . • , ~4E ,~ ~ !i. ~'i:Slf !H}: --.?~_,.~.~ :1 t , ., I~ --._..~~:_.-....._, t r.rt+:1.E':~4E4, .t,!?fi! d E',; ;'=;:-:::::.,,_,~.r..~ r , .;r,.-. ~~ ;:feu: ~,~;~ t d:fi-. } c i-l-,....! i ... -y . '..~3 ""iii. + r ~' E! -; f`' ~ -4~•~1, S,~i4(t ~ r ~ ~ 4~i } j . i:~ p.:ii:: - ,ELI }'r _ 41i"N f +4:_ ri f, }, 4j # .c •~N:p.:..:.._°'.;., If~3~..444~ f 1. ~Si~€. , , ~, ~ -' ~ - E~,,1 ~ ,d,... g - _ }i .: _ ;4'..#'""_. o-:;`;: E ~ - 4. F,'~~- ~;ti,f!t.,~;t, :::y ... f'~ .:... ... ~:.~3~41~...•.,._::~:. r ,..,.,_ .. ~1~~_:.,.....•. e~{~,.,:;,~ „- ~{ __~ , ... r _ - E € t ~ .:; - ~~ ..: ,. , 'i'u ~ , ~;~ ~! ~ f - _ , tf .. f..~E. €`' ~, yam s . ` 'E tR; (~' 1::..,..;3,4..:. ~~EE~}. ,}n' r.r1r . c...,:cu.., 1 t~~!t` ~.. , - ri;f`i~rs ~ _ €~!i?.;....-;,. i'' ENE'-=.=_-. n`-~4 ~~~I~i . ,-..., •~ E ,_;i'~i. lif3t.f 't , 1 Single Family Detached Property > 4,300 s.f. $7,448 per unit $2,250 per unit 2 Single Family Detached Property 3,951- 4,300 s.f. $6,988 per unit $2,115 per unit 3 Single Family Detached Property 3,601 - 3,950 s.f. $6,629 per unit $2,010 per unit 4 Single Family Detached Property 3,251 - 3,600 s.f. $6,118 per unit $1,860 per unit 5 Single Family Detached Property 2,901 - 3,250 s.f. $5,094 per unit $1,560 per unit 6 Single Family Detached Property 2,551 - 2,900 s.f. $4,838 per unit $1,485 per unit 7 Single Family Detached Property <= 2,550 s.f. $4,582 per unit $1,410 per unit 8 Single Family Attached Property > 1,800 s.f. $3,268 per unit $1,020 per unit 9 Single Family Attached Property 1,601 -1,800 s.f. $2,961 per unit $930 per unit 10 Single Family Attached Property <= 1,600 s.f. $2,449 per unit $780 per unit 11 Affordable Units -Moderate NA $350 per unit $600 per unit 12 Affordable Units -Very Low NA $50 per unit $50 per unit 13 Non-Residential Property NA $39,534 per Acre $6,000 per Acre (b). • Increase in the Maximum Special Tax On each July 1, commencing on July 1, 2007 the Maximum Special Tax A, identified in Tables 1 and 2 above, be increased by an amount equal to two percent (2%) of the amount in effect for the previous fiscal year. On each July 1, commencing on July 1, 2007, the Maximum Special Tax B listed in Tables 1 and 2 above shall be increased based on the percentage change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%} per Fiscal Year. Resolution No. 06-89 Pa ty u ttn -Tustin Legacy/Columbus Villages July 17, 2006 CFD No. 06-i Page 8 (c). Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Special Taxes for al] Land Use Classes located on that Assessor's Parcel. 2. Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property (a). Maximum Special Tax A The Fiscal Year 2006-2007 Maximum Special Tax A for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $40,377 per Acre. (b). Maximum Special Tax B The Fiscal Year 2006-2007 Maximum Special Tax B for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $6,000 per Acre. (c). Increase in the Maximum Special Tax A and Special Tax B On each July 1, commencing on July 1, 2007 the Maximum Special Tax A for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property, shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous fiscal year. On each July 1, commencing on July 1, 2007, the Maximum Special Tax B for Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property, shall be increased based on the percentage change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per Fiscal Year. D. SPECIAL TAX A BUYDOWN All of the requirements of this Section D, which describes the need for a Special Tax A Buydown that may result from a change in development as determined pursuant to this Section D, shall only apply after the sale of Bonds by CFD No. 06-1. The following definitions apply to this Section D: "Certificate of Satisfaction of Special Tax A Buydown" means a certificate from the CFD Administrator stating that the property described in such certificate has sufficiently met the Special Tax A Buydown Requirement for such property as calculated under this Section D. Resolution No. 06-89 City of Tustin -Tustin Legacy/Columbus Villages u , 0 ~ CFD No. 06-1 Page 9 "Letter of Compliance" means a letter from the CFD Administrator allowing the issuance of building permits based on the prior submittal of a request for Letter of Compliance by a property owner. "Special Tax A Buydown Requirement" means the total amount of Special Tax A Buydown necessary to be prepaid to permit the issuance of building permits listed in a request for Letter of Compliance, as calculated under this Section D. "Update Property" means an Assessor's Parcel of Undeveloped Property for which a building permit has been issued. For purposes of all calculations in this Section D, Update Property shall be taxed as if it were already Developed Property during the current Fiscat Year. 1. Request for Letter of Compliance The CFD Administrator must submit a Letter of Compliance to the City for a specific Assessor's Parcel or lot prior to the issuance by the City of a building permit for the construction of any residential and/or non-residential development on that Assessor's Parcel or lot. If a Letter of Compliance has not yet been issued, and a property owner wishes to request a building permit for an Assessor's Parcel or lot, the property owner must first request a Letter of Compliance from the CFD Administrator. The request from the property owner shall contain a list of all building permits currently being requested, the Assessor's Parcels or tract and lot numbers on which the construction is to take place, and the Residential Floor Area {for each residential dwelling unit) or the Acreage (for each non- residential parcel) associated with each building permit. 2. Issuance of Letter of Compliance Upon the receipt of a request for Letter of Compliance, the CFD Administrator shall assign each building permit identified in such request to Land Use Classes 1 through 17 for Zone 1 and Land Use Classes 1 through 13 for Zone 2 as listed in Tables 3 and 4 below, based on the type of use and the Residential Floor Area identified for each such building permit. When using Table 3, if Bonds are secured solely by parcels in the portion of Zone 1 that does not include the Future Annexation Area, the column entitled "Expected Units Without Future Annexation Area" shall be utilized for purposes of this analysis. If Bonds are secured by all of Zone 1, including the Future Annexation Area, the column entitled "Expected Units Including Future Annexation Area" shall be utilized for purposes of this analysis. ]f the CFD Administrator determines (i) that the number of building permits requested for each Land Use Class, plus those building permits previously issued for each Land Use Class, will not cause the total number of residential units or non-residential Acreage within any such Land Use Class to exceed the number of units or Acreage for such Land Use Class identified in Tables 3 and 4 below, and (ii) that the total number of residential dwelling units anticipated to. be constructed pursuant to the current development plan for CFD No. 06-1 will not be less than 989 for Zone 1 and 465 for Zone 2 prior to the annexation of the Future Annexation Area and not less than 1,075 for Zone 1 and 465 for Zone 2 after the annexation of the Future Annexation Area, then a Leiter of Compliance shall be submitted to the City by the CFD Administrator approving the issuance of the requested building permits. This Letter Resolution No. 06-89 Pa ~, usttn - Tustix Legacy/Columbus Ylllages Jul 17 2006 J' CFD No. 06-1 Page 10 of Compliance shall be submitted by the CFD Administrator within ten days of the submittal of the request for Letter of Compliance by the property owner. However, should (i) the building permits requested, plus those previously issued, cause the total number of residential units or non-residential Acreage within any such Land Use Class to exceed the number of. units or non-residential Acreage for such Land Use Class identified in Tablas 3 and 4 below, or (ii) the CFD Administrator determine that changes in the development plan may cause a decrease in the number of residential dwelling units within CFD No. 06-1 to below 989 dwelling units in Zone 1 or 465 dwelling units in Zone 2 before the annexation of the Future Annexation Area or below 1,075 dwelling units in Zone 1 or 465 dwelling units in Zone 2 after the annexation of the Future Annexation Area, then a letter of Compliance 3vi11 not be issued and the CFD Administrator will be directed to determine if a Special Tax A Buydown shall be required. TABLE 3 Expected Dwelling Units per Land Use Class and Non-Residential Acreage City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) Zone 1 ~li{ij~~{~&~::.,{:? :~~i{i-,:%~-;'-ff t{~+flgp ~.. -:_. f. ~391i~ ,.~~.;i..i. _(;~}~~~~1~...,~ 7l s~;i~ i+i,ri,*_~;__;r a ~~~ :1 1 J 3 , 1•i,~'~~I., . ~ 11: • ~- ~`3 - , ikt`j, s ~f?~, {'~~' NI `' .. i{Ikl ` i 11 r'' ~ t R!s 1 y ! . , __.. . ..,...... ~4 , -fo "tlfl -;_ E #.. ~ 1 ti „~ ~~i7~.ri_~sssaf ~ ~~ ;;. - + - ~t - ,tl.G:-::•.:. e, -, t. ~"~ _ - t i=._ ~yi;, '~' - Jar . ` ' ~ ' ` `.d.C;,;[ i;• n..€A d~.'h-` ,.r.it.i, JWniiaac.~,:l ~3, ~ f} 3 s •:r~ IiG. 1 Single Family Detached Property > 3,600 s.f. 10 units 10 units 2 Single Family Detached Property 3,226 - 3,600 s.f. 61 units 62 units 3 Single Family Detached Property 2,851- 3,225 s.f. 66 units 67 units 4 Single Family Detached Property 2,476 - 2,850 s.f. 25 units 27 units 5 Single Family Detached Property 2,101 - 2,475 s.f. 86 units 86 units 6 Single Family Detached Property <= 2,100 s.f. 31 units 31 units 7 Single Family Attached Property > Z,550 s.f. 27 units 27 units 8 Single Family Attached Property 2,30] - 2,550 s.f. 9 units 9 units 9 Single Family Attached Property 2,051 - 2,300 s.f. 24 units 24 units 10 Single Family Attached Property 1,801 - 2,050 s.f. 32 units 38 units 11 Single Family Attached Property 1,SSl -1,800 s.f. 164 units 217 units 12 Single Family Attached Property <= 1,550 s.f. 118 units 124 units 13 Senior Units NA 87 units 87 units Resolution No. 06-89 Clty ojTustin -Tustin Legacy/Columbus [pillages u ~ ~ 34 CFD No. 06-1 Page II TABLE 4 Expected Dwelling Units per Land Use Class and Non-Residential Acreage City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages} Zone 2 ~~{~+i~4~ .:~1:I:T~ 1 ~'7~ -' ;~2,? ~• ~`+t,-;' I 'i;: E+~ -:+:rir: 1 ~ -n'' ~~~`a' ~ i+j, i F~ ~ ~~ t ' .[ ~ I ,~,_I;, '. ~ ?i ',. - , ~ -}' ~ r ~:, } ..:! '~~~~'~~'f~ ~- -,:. = , , - ~ ~ . t.. i.. js_r_s t ~ f k. , .r `rti~_3~+ , ~lfi_ r r; Single Family Detached Property ~ i~ i~!i. = -ohs' +,;~:.:.- } , ' ,,;,_ ~ i 4i~: ~" ' ,t .i~S j ' I ~ ~{ is i. >.4,300 s.f. x~ ~ '~ ; ~+~~.ii ~«t~ct~u~j1~.'-~'i~y cy. , 'i = .r - I i ~'~;_% ~ ,fit ~ ; f% I,'-'{~~~1~ ' t~~+'; ~~+ 4' cS L 20 units 2 Single Family Detached Property 3,951 - 4,300 s.f. 37 units 3 Single Family Detached Property 3,601- 3,950 s.f. 26 units 4 Single Family Detached Property 3,251 - 3,600 s.f. 23 units 5 Single Family Detached Property 2,901 - 3,250 s.f. 51 units 6 Single Family Detached Property 2,551 - 2,900 s.f. 107 units 7 Single Family Detached Property <= 2,550 s.f. 15 units 8 Single Family Attached Property > 1,800 s.f. 51 units 9 Single Family Attached Property 1,601 - 1,800 s.f. 85 units 10 Single Family Attached Property <= 1,600 s.f. 8 units 11 Affordable Units -Moderate ~ NA 30 units 12 Affordable Units -Very Low NA 12 units 13 Non-Residential Property NA 0 Acres Resolution No. 06-85 Pa n -Tustin Le ac /Columbus VIUa es g y 8 July 17, 2006 CFD No. 06-1 Page 12 3. Calculation of Special Tax A Buydown If a Special Tax A Buydown calculation is required as a result of item 2, above, the CFD Administrator shall review the current development plan for CFD No. 06- I in consultation with the current property owners for all remaining Undeveloped Property in CFD No. 06-1, and shall prepare an updated version of Tables 3 and 4 identifying the revised number ofunits ornon-residential Acreage anticipated within each Land Use Class. The CFD Administrator shall not be responsible for any delays in preparing the updated Tables 3 and 4 that result from a refusal on the Dart of one or more current property owners of Undeveloped Property to prop ide information on their future development. The CFD Administrator shall then review the updated Tables 3 and 4 and deterrr ine the Special Tax A Buydown Requirement, if any, to be applied to the props:riy identified in the request for Letter of Compliance to assure the CFD's abilit;~ to collect Special Taxes equal to 110% debt service coverage on the Outstanding Bonds, plus the cost of annual CFD administration. The calculations shall be undertaken by the CFD Administrator as follows: Step 1. Compute the sum of the Maximum Special Tax A to be levied on all Developed Property and Update Property within CFD No. 06-1, plus the sum of the Maximum Special Tax A to be levied on all future developmen t as identified in the current development plan as determined by the CFD Administrator in consultation with the property owner. Step 2. Determine the amount of Special Tax A required to provide 110°1o debt service coverage on the Outstanding Bonds, plus any other costs associated with the Special Tax Requirement for Facilities. Step 3. If the total sum computed pursuant to step 1 is greater than or equal to the amount computed pursuant to step 2, then no Special Tax A Buydown will be required and a Letter of Compliance shall immediately be issued by the CFD Administrator for all of the building pemuts currently being requested. If the total sum computed pursuant to step 1 is less than the amount computed pursuant to step 2, then continue to step 4. Step 4. Determine the Maximum Special Tax A shortfall by subtracting the total sum computed pursuant to step 1 from the amount computed pursuant to step 2. Divide this Maximum Special Tax A shortfall by the amount computed pursuant to step 2. Step S.The Special Tax A Buydown Requirement shall be calculated using the prepayment formula described in Section I. l ,with the following exceptions: (i) skip Paragraphs 1, 2 and 3, and begin with Paragraph 4; (ii) the Band Redemption Amount in Paragraph 4 of the prepayment formula describes in Section I.1 shall equal the product of the quotient computed pursuant to step 4 above times the Previously Issued Bonds, as defined in Section I.1; (iii) the Resolution No. 06-89 City of Tustin -Tustin Legocy/Columbus Pillages u ~ p 34 CFD No. 06-1 Pape 13 Capitalized Interest Credit described in Paragraph 12 of Section I.1 shall be $0; and (iv) any payments of the Special Tax A Buydown (Iess Administrative Fees and Expenses) shall be disbursed pursuant to the Indenture. The Special Tax A Buydown computed under step 5 shall be billed directly to the property owner of each Assessor's Parcel identified in the request for Letter of Compliance and shall be due within 30 days of the billing date. Ifthe Special Tax A Buydown is not paid within 45 days of the billing date, a delinquent penalty of 10 percent shall be added to the Special Tax A Buydown. Upon receipt of the Special Tax A Buydown payment, the CFD Administrator shall issue a Letter of Compliance and a Certificate of Satisfaction of Special Tax A Buydown for the subject property. 4. Costs and Expenses Related to Implementation of Special Tax A Buydown The property owner of each Assessor's Parcel identified in the request for Letter of Compliance shall pay all costs of the CFD Administrator or other consultants required to review the application for building permits, calculate the Special Tax A Buydown, issue Letters of Compliance or any other actions required under Section D. Such payments shall be due 30 days after receipt of invoice by such property owner. A deposit may be required by the CFD Administrator prior to undertaking work related to the Special Tax A Buydown. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1. Special Tax A Commencing with Fiscal Year 2006-2007 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement for Facilities and shall levy the Special Tax A until the total Special Tax A levy equals the Special Tax Requirement for Facilities. The Special Tax A shall be levied each Fiscal Year as follows: First: The Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax A; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax A for Undeveloped Property; Third: Ifadditional monies are needed to satisfy the Special.Tax Requirement for Facilities after the first two steps have been completed, then the Special Tax A shall be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to the Maximum Special Tax A for Taxable Property Owner Association Property; Resolution No. 06-89 P ty o u bn -Tustin Legacy/Columbus Villages July 17, 2006 CFD No. 06-1 Page 14 Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Special Tax A shall be le~zed Proportionately on each Assessor's Parcel of Taxable Public Property at up to the Maxur~um Special Tax A for Taxable Public Property. 2. Special Tax B Commencing with Fiscal Year 2006-2007 and for each following Fiscal Year, the Council shall levy the Special Tax B until the total Special Tax B levy equals the Special 'fax Requirement for Services. The Special Tax B shall be levied each Fiscal Yeaz as follows: First: The Special Tax B shall be levied Proportionately on each Assessor's Parce~ of Developed Property at up to 100% of the applicable Maximum Special Tax B; Second: If additional monies are needed to satisfy the Special Tax Requirement for Serve ces after the first step has been completed, the Special Tax B shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special ' Cax B for Undeveloped Property. F. 1. Special Tax A Prior to Annezation of Future Annexation Area No Special Tax A shall be levied on up to 0.13 Acres of Public Property and up to 31.01 Acres of Property Owner Association Property in Zone 1, and on up to 0.16 Acres of Public Property and up to 30.31 Acres of Property Owner Association Property in Zone 2. Tax- exemptstatus will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property and Property Owner Association Property within each Zone. However, should an Assessor's Parcel no longer be classified as Public Property or Property Owner Association Property, its tax-exempt status will be revoked. Public Property or Property Owner Association Property that is not exempt from the Special Tax A under this section shall be subject to the levy of the Special Tax A and shall be taxed Proportionately as part of the third and fourth steps in Section E.1. 2. Special Tax A After Annexation of Future Annexation Area No Special Tax A shall be levied on up to 0.20 Acres of Public Property and up to 32.80 Acres of Property Owner Association Property in Zone 1, and on up to 0.16 Acres of Public Property and up to 30.31 Acres of Property Owner Association Property in Zone 2. Tax- exemptstatus will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property and Property Owner Association Property within each Zone. However, should an Assessor's Parcel no longer be classified as Public Property or Property Owner Association Property, its tax-exempt status will be revoked. Resolution No. 06-89 City ojTustin -Tustin Legacy/Columbr~s Villages u 34 CFD No. 06-I Page 1 S Public Property or Property Owner Association Property that is not exempt from the Special Tax A under this section shall be subject to the levy of the Special Tax A and shall be taxed Proportionately as part of the third and fourth steps in Section E.1. 3. Special Tax B No Special Tax B shall be levied on Public Property or Property Owner Association Property. G. APPEALS AND INTERPRETATIONS Any landowner or resident who feels that the amount of the Special Tax levied on such landowner's or resident's Assessor's Parcel is in error may submit a written appeal to CFD No. 06-1. The CFD Administrator shall review the appeal and if the CFD Administrator concurs, the amount of the Special Tax levied shall be appropriately modified. The Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. H. MANNER OF COLLECTION Special Tax A and Special Tax B will be collected in the same manner as ordinary ad valorem property taxes or in such other manner as the Council shall determine, including direct billing of the affected property owners. The Special Tax A Buydown shall be directly billed to the property owner at the time such Special Tax is being levied. I. PREPAYMENT OF SPECIAL TAX A The following additional definitions apply to this Section I: "Buildout" means, for CFD No. 06-1, that all expected building permits have been issued. "CFD Public Facilities" means either $42,949,043 in 2006 dollars, which shall increase by the Construction Inflation Index on July 1, 2007, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be provided by CFD No. 06-1 under the authorized bonding program for CFD No. 06-1, or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more CFD No. 06-1 Bonds (except refunding bonds) to be supported by the Special Tax for Facilities levy under this Rate and Method of Apportionment as described in Section D above. "Construction Inflation Index" means the annual percentage change in the Engineering News Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Resolution No. 06-89 F urn - Tustix Le ac /Columbus Villa es g .V 8 July 17, ?006 CFD No. 06-I Page 16 Administrator that is reasonably comparable to the Engineering News Record Building (:ost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs previously paid from the Improvement Fund, (ii) moneys cunrently on deposit in the Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance the cost of CFD Public Facilities. "Improvement Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct CFD Public Facilities eligible under the Act. "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that aze deemed to be outstanding under the Indenture after the first interestand/or principal payn gent date following the current Fiscal Year. 1. Prepayment in Full Only an Assessor's Pazcel of Developed Property, or Taxable Property Owner Association Property, Taxable Public Property or Undeveloped Property for which a building permit has been issued, may be prepaid. The obligation of the Assessor's Parcel to pay the Special Tax for Facilities may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel only if there are 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 Special Tax for Facilities 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 for such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occumng date that notice of redemption of CFD No. 06-1 Bonds from the proceeds of such prepayment maybe given by the Trustee pursuant to the Indenture. The Special Tax B may not be prepaid. The Special Tax A Prepayment Amount {defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus plus plus plus less less Total: equals Redemption Premium Future Facilities Amount Defeasance Amount Administrative Fees and Expenses Reserve Fund Credit Capitalized Interest Credit Special Tax A Prepayment Amount Resolution No. 06-89 City of Tustin - Tustin Legacy/Columbus Villages u 4 CFD No. 06-1 Pare 17 As of the proposed date of prepayment, the Special Tax A Prepayment Amount shall be calculated as follows: Paraeraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel 2. For Assessor's Parcels of Developed Property, Taxable Property Owner Association Property, or Taxable Public Property for which a building permit has been issued, compute the Maximum Special Tax A for the current Fiscal Year applicable for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued, compute the Maximum Special Tax A for the current Fiscal Year applicable for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total estimated Maximum Special Tax A for the entire CFD No. 06-] based on the Developed Property Special Tax A which could be levied in the current Fiscal Year on all expected development through BuiIdout of CFD No. 06-1, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the quotient computed pursuant to paragraph 3 by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be retired and prepaid (the "Bond Redemption Amount"). Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price-100%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium"}. 6. Compute the current Future Facilities Costs. 7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount"). 8. 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 Previously Issued Bonds. 9. Determine the Special Tax A levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Special Tax A Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses (defined below} from Resolution No. 06-89 P8 u t n -Tustin Le ac /Columbus Villa es g y S July 17, 2006 CFD No. 06-1 Page 18 the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amc-unt computed pursuant to paragraph 10 (the "Defeasance Amount"). 12. The administrative fees and expenses of CFD No. 06-1 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the cost s to invest the prepayment proceeds,,the costs of redeeming CFD No. 06-1 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 13. If reserve funds for the Previously Issued Bonds, if any, are at or above 100% of'the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Previously Issued Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit'. No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement. 14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund or account under the Indenture a fter such first interest, and/or principal payment (the "Capitalized Interest Credit"). 15. The Special Tax A prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Special Tax A Prepayment Amount"). From the Special Tax for Facilities Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture and be used to retire CFD No. 06-1 Bonds or make debt service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Improvement Fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 06-1. The Special Tax for Facilities Prepayment Amount may be insufficient to redeem a full $5,000 increment of CFD No. 06-1 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 CFD No. 06-1 Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax A levy as determilied under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Ye~.r's Special Tax A levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the City Council shall cause a suitable notice to be Resolution No. 06-89 City ojTustin -Tustin Legacy/Columbus Villages u ~ 34 CFD No. 06-1 Pale 19 recorded in compliance with the Act, to indicate the prepayment of the Special Tax A and the release of the Special Tax A lien on such Assessor's Pazcel, and the obligation of such Assessor's Pazcel to pay the Special Tax A shall cease. Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless,, at the time of such proposed prepayment, the amount of Maximum Special Tax A that may be levied on Taxable Property within CFD No. 06-1 (after excluding Public Property and Property Owner Association Property in Zone 1 and Zone 2 as set forth in Section F} both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Previously Issued Bonds, plus the cost of annual CFD administration. 2. Prepayment in Part The Special Tax A on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Taxable Property Owner Association Property, Taxable Public Property, or Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section I.1; except that a partial prepayment shall be calculated according to the following formula: PP = PE x F. These terms have the following meaning: PP = the partial prepayment PE = the Special Tax A Prepayment Amount calculated according to Section I.1 F = the percentage, expressed as a decimal, by which the owner of the Assessor's Parcel is partially prepaying the Special Tax A. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of such owner's intent to partially prepay the Special Tax A and the percentage by which the Special Tax A shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax A 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 Council shall (i) distribute the funds remitted to it according to Section I. I, and (ii) indicate in the records of CFD No. 06-1 that there has been a partial prepayment of the Special Tax A and that a portion of the Special Tax A with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax A, shall continue to be levied on such Assessor's Parcel pursuant to Section E.1. Notwithstanding the foregoing, no Special Tax A prepayment shall be allowed unless, at the time of such proposed prepayment, the amount of Maximum Special Tax A that may be levied on Taxable Property within CFD No. 06-1 (after excluding Public Property and Property Owner Association Property in Zone 1 and Zone 2 as set forth in Section F) both Resolution No. 06-89 P uy o u hx -Tustin Legacy/Columbus ~Ilages Jul 17 2006 y , CFD No. 06-1 Page 20 prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on ali Previously Issued Bonds, plus the cost of annual CFD administration. J. TERM OF SPECIAL TAX The Special Tax A shall be levied for a period not to exceed forty years commencing with Fiscal Year 2406-2007. The Special Tax B shall be levied as long as necessary to meet the Special Tax Requirement for Services. K:\CLIENTS2\Tustin.Cit\TustinMCAS\I,ennarUtMA\Lennar 9.doc Reso{ution No. 06-89 City ojTustin -Tustin Legary/Columbus Villages u 0 ~ CFD Na. 06-1 Page 21 EXHIBIT A AUTHORIZED SERVICES The types of services proposed to be financed by CFD No. 06-1 are police protection services, fire protection services, ambulance and paramedic services, recreation program services, maintenance of parks, parkways and open space and flood and storm protection services. Resolution No. 06-89 Page 30 of 34 O U ~ ~ ~ O O N m U U ~ o a o~ U 0 C ~j N ii F~- r ~ ~ CO fn O W (~ LL Z O f.,. ~ icn U> W Q W L~ fn (~ z ~ Z ~ m Z ~ ~~Q~~O ~I-~J~J Ou.WOpU wOVU~O o~~Q?a a. 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N n N pa N l :, ~. d u li . a ~ M ~p T ~ O y '•~ b .,~~'J U "~ O t1 ~ O LL re A O ~~ O ~~ r L M ~ O C ' W 7 ~ ~ O.O :~ m ~ ~ 1~ V p •'~ O ~ 2 V •I N ~ V .I ppG~ M I` LAN ~~ 6 ~ O II w ^ ^ . ~ _ :::~---{zU J f Resolution I Par r I `-- ow I LL Z V ~ W Q r~^ ry~'~ (O NZ /~~/ V J 5W ~ I.L. '~ VJ ~ w ~ O ~F=-~JOQ Ou_WOpU OO.~v~O U Z W o"IiQOQ C~ o ~W~~ J ~ Z a ~ H ~ ~ O~ . 1 r' yj a\~v' ,ay, ~ y~. ~1~.~ \ .4s'Iy~~..~ y-` ,` ,` ,_, N a. ~. ,, r, r,. ~] ~~ LL ,1 1 ~i I K• ~r '~~ • ~~ .~ ri •• .-- , L ^J ' L T • a H ~ F-OD000O Z O O O .- N 3 r-i ! ~NNNN 0 V CJ LOOOO M L C (g ~ ~ ~ i ttl O et ~ tT ~t ~ a N wc*~chc~M ~,,~ O E N ~ F~solution No 06-89 a , ~ge 34 of 34 Q ~ ~-- M •' ~ ~r°~ ~o-~ ~, r-1 L C'7 l1) •• . ~ •r-1 ~'O h O A 4- ~ C(CO++ ' ~ O ctf GD N C d L O ~ O (~.~ "O w0 ,,,,~ E +•+ to l!7 O U ~ e0 r {C O ~ O cts ~ N L nf•rl C ~ ~ C C ~ O O O L ,p cd L ,~ ~ ~ d O L O ~ C CO O A ~+ O '~- ~~ ~.c°ac~ac~o~ v ~ d' ~ C V ,~ p ~ ~ ~ C O ~ c~ U O a L Y to E O O • ~ N O •ri 3 ~ U O~ O~ L L O . O to W i~ O D: N ~ C O C ~ •ri •~"~ L ~; W ~ r~ l~ I J ~- V ~+m a „~~ a ~Vy M J u,~ c w -+ ., p u V Q LL N A p 7 r-1 M ~' ~ M ~~ > N C ~ b ~ • o a °o .5 m U ~ ,..+ ~ C Z U . -I M n ~ +°i o F t ~ «• a ~ 0 ^ ^ w ^ ^ ^ ^ EXHIBIT B BOUNDARY MAP Resolution No. 06-89 Page 31 of 34 PETITION TO ANNEX TERRITORY TO CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT N0.06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) City Council City of Tustin 300 Centennial Way Tustin, California 92680 Members of the City Council: This is a petition to annex territory to City of Tustin Community Facilities District No. 06-I (Tustin Legacy/Columbus Villages) (the "Community Facilities District"), and a waiver with respect to certain procedural matters, under the Mello-Roos Community Facilities Act of 1982 (the "Act"), and the undersigned hereby states as follows: 1. Landowner. This Petition is submitted by Moffett Meadows Partners, LLC, Lennar Homes of California, Inc. and LandSource Holding Company, LLC (collectively, the "Landowner"), as the owners of all of the area of land proposed to be annexed to the Community Facilities District. 2. Proceedings Requested. The Landowner hereby requests that the City Council (the "City Council") of the City of Tustin (the "City") institute proceedings pursuant to the Act to annex certain territory (the "Additional Territory") to the Community Facilities District and to levy special taxes in the Community Facilities District. 3. Boundaries of Additional Territory to be Annexed to Community Facilities District. The boundaries of the Additional Territory which is proposed for inclusion in the Community Facilities District are described in Exhibit A attached hereto and made a part hereof. 4. Types of Facilities and Services. The types of facilities and services financed by the Community Facilities District and proposed to be provided in the Additional Territory are described under the caption "Facilities" and "Services" respectively, on Exhibit A to Resolution No. 06-89 of the City Council entitled "A Resolution of the City Council of the City of Tustin of Formation of City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages), Authorizing the Levy of a Special Tax within the District and Establishing an Appropriations Limit for the District." 5. Election. The Landowner hereby requests that the special election to be held under the Act to authorize the special taxes for the Additional Territory to be annexed to the Community Facilities District be conducted by the City and its officials using mailed or hand- delivered ballots and that such ballots be opened and canvassed and the results certified at the same meeting of the City Council as the public hearing on proposed annexation of the Additional Territory to the Community Facilities District under the Act, or as soon thereafter as possible. OHS West:260493300.2 6. Waiver. To expedite the completion of the proceedings for the annexation of the Additional Territory to the Community Facilities District, the Landowner hereby waives all notices of hearings (other than published notices required under the Act) and all notices of election, all applicable waiting periods under the Act for the election, all ballot analysis and arguments for the election and all requirements as to the form of the ballot. 7. Deposit. Submitted herewith is a check in the amount of $65,000, which shall constitute the deposit required by the City to be used to compensate the City Council and the City for all costs incurred in conducting the proceedings to annex the Additional Territory to the Community Facilities District. 8. Representations and Warranties. The Landowner hereby represents and warrants to the City that (a) the Landowner is, as of the date of this Petition, the legal owner of the fee interest in all of the Additional Territory proposed to be included within the Community Facilities District and that no other person or entity is the legal owner of any portion of the fee interest in any of such property, (b) the Landowner has the power and authority to execute and deliver this Petition, and has taken all action necessary to cause this Petition to be executed and delivered on its behalf, and this Petition has been duly and validly executed and delivered on behalf of the Landowner. 9. Mailing Address. The address of each of the Landowners for receiving notices is as follows: Moffett Meadows Partners, LLC: Lennar -Land Division, Project Management 25 Enterprise, Suite 300 Aliso Viejo, CA 92656 Telephone No: (949) 349-8214 Attn: Marsha Santry Lennar Homes of California, Inc.: Lennar -Land Division, Project Management 25 Enterprise, Suite 300 Aliso Viejo, CA 92656 Telephone No: (949) 349-8214 Attn: Marsha Santry LandSource Holding Company, LLC LandSource Holding Company, LLC 25 Enterprise Drive, Suite 500, Aliso Viejo, CA 92656 Telephone No: (949) 349-8224 Attn: Ed Giermann, Deputy General Counsel OHS West:260493300.2 2 10. Counterparts. This Petition may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. This Petition is dated as of September 2, 2008. MOFFETT MEADOWS PARTNERS, LLC, A Delaware limited liability company By: Marble Mountain Partners, LLC, A Delaware limited liability corporation Its: Sole member By: Tustin Villas Partners, LLC, A Delaware limited liability company Its: Administrative member By: Lennar Homes of California, Inc., A California corporation Its: Managing member By: Name: Title: LENNAR HOMES OF CALIFORNIA, INC., a California corporation By: Name: Title: LANDSOURCE HOLDING COMPANY, LLC, a Delaware limited liability company By: Lennar Homes of California, Inc., a California corporation, its California manager By: Name: Edward. C. Giermann Its: Vice President OHS West:260493300.2 3 EXHIBIT A BOUNDARIES OF ADDITIONAL TERRITORY PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT The boundaries of the Additional Temtory which is proposed for annexation to the Community Facilities District are depicted in the attached map. The Additional Territory proposed for annexation to the Community Facilities District and owned by each Landowner is identified as the following Orange County Assessor Parcel Nos.: Landowner APN Moffet Meadows Partners, LLC 43036228 43036221 43036227 43036222 43036226 43036223 43036225 43036224 43036229 43036230 43036231 43035182 43035183 Lennar Homes of California, Inc. 43035101 43035154 43035155 43035153 43035201 43035202 43035246 43035247 43035212 43035245 43035243 43035244 43035210 43035211 43035248 43035209 43035216 43035241 43035215 43035214 43035242 OHS West:260493300.2 A-1 Landowner APN Lennar Homes of California, Inc. (cont.) 43035213 43035229 43035230 43035232 43035233 43035231 Land Source Holding Company, LLC 43035102 43035152 43035203 43035208 43035217 43035218 OHS West:260493300.2 A-2 RESOLUTION NO. 08-62 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, OF INTENTION TO ANNEX TERRITORY TO CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT N0.06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) WHEREAS, the City Council (the "City Council") of the City of Tustin (the "City") has received a written petition (the "Petition") from Moffett Meadows Partners, LLC, Lennar Homes of California, Inc. and LandSource Holding Company, LLC (collectively, the "Landowners" and individually, each a "Landowner") requesting the institution of proceedings for the annexation of territory to City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"); WHEREAS, the Landowners have represented and warranted to the City Council that they are the owners of all of the area of land proposed to be annexed to the Community Facilities District (the "Annexed Territory"); WHEREAS, Section 53339.2 of the Mello-Roos Community Facilities Act of 1982 (the "Act") provides that if the landowners request the legislative body to include territory within a district, the legislative body may adopt a resolution of intention to annex the territory; WHEREAS, pursuant to the Act, the City Council is the legislative body of the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. All of the above recitals are true and correct. Section 2. The name of the Community Facilities District is "City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)." Section 3. The City Council proposes to annex the Additional Territory to the Community Facilities District under the terms of the Act. The existing boundaries of the territory of the Community Facilities District are described in the boundary map of the Community Facilities District recorded in the office of the Orange County Recorder in Book 91 at Pages 37-39 of Maps of Assessment and Community Facilities District as Instrument No. 2006000399917. The boundaries of the Additional Territory proposed to be annexed to the Community Facilities District are described in the map showing the proposed Additional Territory ("Annexation Map No. 1 ") on file with the City Clerk of the City (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 sign Annexation Map No. 1 and record, or cause to be recorded, Annexation Map No. 1 with all proper endorsements thereon in the office of the Orange County Recorder within 15 days of the date of adoption of this Resolution, all as required by Section 3111 of the California Streets and Highways Code. OHS West:260493220.2 Section 4. The public facilities (the "Facilities") provided pursuant to the Act in the Community Facilities District and' proposed to be provided in the Additional Territory are described under the caption "Facilities" on Exhibit A to Resolution No. 06-89 of the City Council entitled "A Resolution of the City Council of the City of Tustin of Formation of City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages), Authorizing the Levy of a Special Tax with the District and Establishing an Appropriations Limit for the District," adopted by the City Council on July 17, 2006 (the "Resolution of Formation"), which is by this reference incorporated herein. The services (the "Services") provided in the Community Facilities District pursuant to the Act and proposed to be provided in the Additional Territory are described under the caption "Services" on Exhibit A to the Resolution of Formation. The Facilities will be available to and will benefit landowners within the Community Facilities District and the proposed Additional Territory without preference or priority, and, as such is the case, no specific plan for sharing facilities as contemplated by Section 53339.3 of the Act is necessary. Section 5. Except where funds are otherwise available, a special tax sufficient to pay for all Facilities and Services, secured by recordation of a continuing lien against all nonexempt real property in the Community Facilities District and the proposed Additional Territory, will be annually levied within the Community Facilities District and the proposed Additional Territory. The rate and method of apportionment of the special tax (the "Rate and Method"), in sufficient detail to allow each landowner within the Community Facilities District and the proposed Additional Territory to estimate the maximum amount that he or she will have to pay, is described in Exhibit B to the Resolution of Formation, which is by this reference incorporated herein. No alteration of the Rate and Method is contemplated by these proceedings. Section 6. The City Council hereby fixes Tuesday, October 7, 2007, at 7:00 p.m., or as soon thereafter as the City Council may reach the matter, at 300 Centennial Way, Tustin, California, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the Additional Territory to the Community Facilities District. Section 7. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing one time in a newspaper of general circulation published in the area of the Community Facilities District and the Additional Territory. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53339.4 of the Act. Section 8. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. Section 9. This Resolution shall take effect immediately upon its adoption. APPROVED and ADOPTED by the City Council of the City of Tustin on September 2, 2008. OHS West:260493220.2 2 Jerry Amante, Mayor ATTEST: Pamela Stoker, City Clerk OHS West:260493220.2 CLERK'S CERTIFICATE STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF TUSTIN I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held at the regular meeting place thereof on September 2, 2008, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: An agenda of said meeting was posted at least 72 hours before said meeting at 300 Centennial Way, Tustin, California, a location freely accessible to members of the public, and a brief general description of said Resolution appeared on said agenda. I further certify that I have carefully compared the same with the original minutes of said meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct copy of the original Resolution adopted at said meeting and entered in said minutes; and that said Resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: , 2008 Pamela Stoker, City Clerk OHS West:260493220.2 a m ca vii ~ c f° ~ o m CL U •O G L N Q T C 0 o~U ~ o ~ ~ ~ j o fl- c a~ ~ >' ~ ~ ° io O J O CO m o ~ U U °c~~ ~~ U o °o N c z N N O ~ (n ~ 0 f6 N ao 3 N ."gyp-~ ..L_. 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