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HomeMy WebLinkAbout01 CFD 06-1 TUSTIN LEGACY 07-17-06AGENDA REPORT MEETING DATE: July 17, 2006 TO: William A. Huston, City Manager FROM: Ronald A. Nault, Finance Director SUBJECT: CONDUCT A PUBLIC HEARING AND HOLD A SPECIAL ELECTION FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) AND ADOPT VARIOUS RESOLUTIONS AND AN ORDINANCE FORMING THE DISTRICT SUMMARY: The actions taken by the City at this time will finalize the formation of the Community Facilities District (CFD) for Columbus Villages. The City Council will conduct and certify a special election of property owners in the proposed district. RECOMMENDATION: 1. Conduct a public hearing to hear questions and comments from the audience. 2. Adopt Resolution No. 06-89, a Resolution of the City Council of the City of Tustin, California, 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. 3. Adopt Resolution No. 06-90, a Resolution of the City Council of the City of Tustin, California, Deeming it Necessary to Incur Bonded Indebtedness within City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages). 4. Adopt Resolution No. 06-91, a Resolution of the City Council of the City of Tustin, California, Calling Special Election for City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages). 5. Direct the City Clerk to open ballots and announce the results of the election. 6. Adopt Resolution No. 06-92, a Resolution of the City Council of the City of Tustin, California, Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien. 7. Have first reading of Ordinance No. 1315, an Ordinance of the City of Tustin, California, Levying Special Taxes within the City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages). 8. Adopt Resolution No. 06-93, a Resolution of the City Council of the City of Tustin, California, declaring its official intent to reimburse certain expenditures from proceeds of indebtedness. FISCAL IMPACT: None. DISCUSSION: The recommended actions are necessary steps in the process of creating a Community Facilities District for the Legacy project. The second reading of Ordinance No. 1315 is scheduled for August 21st. The City Council will be asked to review and approve bond and disclosure documents at their September 5th meeting. We are hopeful of a closing for the CFD bonds by October 4, 2006. Staff and various Consultants will be available at the meeting to respond to questions from the City Council. Rib!d~ Finance Director RAN:ts Attachments CommunityFecilitiesDistricto6-1PublicHearingStaffReporl.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 Register, 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 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 OHS WEST.260051938.1 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 retum 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 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 Cali fomi a, Inc. ("Lennar") have entered into a Deposit and Reimbursement Agreement, dated as of June 1,2006 (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; OHS WFST.260051938.1 2 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. Section 2. The Community Facilities District is hereby established pursuant to the Act. 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 S. 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 the proposed Community Facilities District to estimate the maximum amount that he or she will have to pay, is described in Exhibit 8 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 OHS WEST.26005!938.! 3 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 for 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 California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the 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. Section 11. 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 or hand-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 OHS WEST,260051938.! 4 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 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 Deposit Agreement. The Deposit Agreement is hereby incorporated herein as though 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. 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. Doug Davert, Mayor ATTEST: Pamela Stoker, City Clerk OHS WEST:26005 [Y38.1 5 EXHIBIT A FACILITIES, SERVICES AND INCIDENTAL EXPENSES Facilities The types of facilities proposed to be financed by the Community Facilities District 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. 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. OHS WEST.260051938.1 A-I EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX OHS WEST.260051938.\ B-1 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 July 17, 2006, 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: ,2006 Pamela Stoker, City Clerk OHS WEsT.2600S1938.1 FINAL RATE AND METHOD OF APPORTIONMENT FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) 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 of the Rate and Method of Apportionment as described below. All of the 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 of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 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 of the 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 ofCFD 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 CFD No. 06-1 July 11, 2006 Page 1 Low Income (as defined in Sections 50079.5, 50093, and 50105 of the California Health and Safety Code.) Before the annexation of the Future Annexation Area, the total number of Affordable Units in Zone I shall not exceed 71 Moderate Income units, I 17 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 I 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, iffor either Zone, the total number of Affordable Units constructed in anyone 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. "Authorized 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 for Facilities and 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. City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 2 "Council" means the City Council ofthe City, acting as the legislative body ofCFD No. 06- 1. "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 I of the prior Fiscal Year and a building permit for new construction was issued after January 1,2005 and prior to May I 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 ofa 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 I 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, amended and/or supplemented from time to time. "Land Use Class" means any of the classes listed in Table I below. "Maximum Special Tax" means the maximum Special Tax A and/or 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. "N on-Residential Property" means all Assessor's Parcels ofDeve\oped 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. City of Tustin - Tustin Lega(y/Columbus ~7l1ages CFD No. 06-1 July 12, 2006 Page 3 "Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries ofCFD 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 ofthe 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 determination 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 Parcels 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 A and/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 for a 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. City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 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 calendar 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 calendar year commencing in such Fiscal Year; (ii) pay a proportionate share 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 California. "Taxable Property" means all of the Assessor's Parcels within the boundaries ofCFD 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 classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property. "Zone" means Zone I or Zone 2, as applicable. "Zone 1" means the land geographically identified as Tract 16851 on a map filed in Book 877, Pages 33 through 50 of Miscellaneous Maps, and as Instrument Number 200600148498, in Records of Orange County, California, excepting therefrom lots 242, 243, City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 5 244,245,332,333,341,342,346,348,349,350,351,352, 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 Fiscal 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 8 for each Land Use Class in each Zone is shown below in Tables I 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. City of Tu",tin - Tu",tin Legacy/Columbu", ~lllage", CFD No. 06-1 July 12, 2006 Page 6 TABLE 1 Maximum Special Tax for Developed Property in Zone 1 City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) Fiscal Year 2006-2007 1 Single Family Detached Property > 3,600 s.f. $3,256 per unit $1,950 per unit 2 Single Family Detached Property 3,226 - 3,600 s.f. $2,843 per unit $1,725 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 $1,170 per unit 7 Single Family Attached Property > 2,550 s.f. $2,410 per unit $1,335 per unit 8 Single Family Attached Property 2,301 - 2,550 s.f. $2,338 per unit $1,260 per unit 9 Single Family Attached Property 2,051 - 2,300 s.f. $2,217 per unit $1,170 per unit 10 Single Family Attached Property 1,801 - 2,050 s.f. $1,905 per unit $1,020 per unit II Single Family Attached Property 1,551 -1,800 s.f. $1,352 per unit $795 per unit 12 Single Family Attached Property <= 1,550 s.f. $895 per unit $600 per unit 13 Senior Units NA $734 per unit $488 per unit 14 Affordable Units - Moderate NA $350 per unit $600 per unit 15 Affordable Units - Low NA $200 per unit $200 per unit 16 Affordable Units - Very Low NA $50 per unit $50 per unit 17 Non-Residential Property NA $22,478 per Acre $6,000 per Acre City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 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 I 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 II 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 Soecial Tax On each July I, commencing on July 1,2007 the Maximum Special Tax A, identified in Tables I 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 I, commencing on July I, 2007, the Maximum Special Tax B listed in Tables I 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. City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 11, 2006 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 all 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 I, 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 I, commencing on July I, 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 TAXA 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. City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 1006 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 Fiscal 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 I through 17 for Zone I and Land Use Classes I 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 I 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. If 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- I 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 I and 465 for Zone 2 after the annexation of the Future Annexation Area, then a Letter of Compliance shall be submitted to the City by the CFD Administrator approving the issuance of the requested building permits. This Letter City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 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 Tables 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 I or 465 dwelling units in Zone 2 before the annexation of the Future Annexation Area or below 1,075 dwelling units in Zone I or 465 dwelling units in Zone 2 after the annexation of the Future Annexation Area, then a letter of Compliance will 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 I 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 > 2,550 s.f. 27 units 27 units 8 Single Family Attached Property 2,301 - 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 II Single Family Attached Property 1,551 - 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 City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 11 14 Affordable Units - Moderate NA 71 units 80 units 15 Affordable Units ~ Low NA 117 units 125 units 16 Affordable Units - Very Low NA 61 units 61 units 17 Non-Residential Property NA o Acres o Acres 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 Single Family Detached Property > 4,300 s.f. 20 units 2 Single Family Detached Property 3,951-4,300 s.f. 37 units 3 Single Family Detached Property 3,60 I - 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 II Affordable Units - Moderate NA 30 units 12 Affordable Units - Very Low NA 12 units 13 Non-Residential Property NA o Acres July /2, 2006 Page /2 City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 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. 06-1 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 of units or non-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 part of one or more current property owners of Undeveloped Property to provide information on their future development. The CFD Administrator shall then review the updated Tables 3 and 4 and determine the Special Tax A Buydown Requirement, if any, to be applied to the property identified in the request for Letter of Compliance to assure the CFD's ability 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 I. 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 development 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% 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 I 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 permits currently being requested. If the total sum computed pursuant to step I 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 I from the amount computed pursuant to step 2. Divide this Maximum Special Tax A shortfall by the amount computed pursuant to step 2. Step 5.The Special Tax A Buydown Requirement shall be calculated using the prepayment formula described in Section 1.1 , with the following exceptions: (i) skip Paragraphs I, 2 and 3, and begin with Paragraph 4; (ii) the Bond Redemption Amount in Paragraph 4 of the prepayment formula described in Section 1.1 shall equal the product of the quotient computed pursuant to step 4 above times the Previously Issued Bonds, as defined in Section 1.1; (iii) the City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 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 (less 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. If the 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 ofthe 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: If additional 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; City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 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 levied Proportionately on each Assessor's Parcel of Taxable Public Property at up to the Maximum 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 Tax Requirement for Services. The Special Tax B shall be levied each Fiscal Year as follows: First: The Special Tax B shall be levied Proportionately on each Assessor's Parcel 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 Services 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 Tax B for Undeveloped Property. F. EXEMPTIONS 1. Special Tax A Prior to Annexation 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 I, 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- exempt status 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 ofthe Special Tax A and shall be taxed Proportionately as part of the third and fourth steps in Section E.I. 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 I, and on up to 0.16 Acres of Public Property and up to 30.3 I Acres of Property Owner Association Property in Zone 2. Tax- exempt status 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. City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 15 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 ofthe Special Tax A and shall be taxed Proportionately as part of the third and fourth steps in Section E.I. 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 ofthe 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: "BuUdout" 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 I 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 City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 16 Administrator that is reasonably comparable to the Engineering News Record Building Cost 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 currently 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 ofCFD 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 are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. 1. Prepayment in Full Only an Assessor's Parcel 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 ifthere 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 occurring date that notice of redemption ofCFD No. 06-1 Bonds from the proceeds of such prepayment may be 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 City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 17 As of the proposed date of prepayment, the Special Tax A Prepayment Amount shaH be calculated as follows: Paral!:raDh No.: I. 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. 3. Divide the Maximum Special Tax A computed pursuant to paragraph 2 by the total estimated Maximum Special Tax A for the entire CFD No. 06-1 based on the Developed Property Special Tax A which could be levied in the current Fiscal Year on all expected development through Buildout 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"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price-IOO%), 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 City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 11, 1006 Page 18 the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment. II. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). 12. The administrative fees and expenses ofCFD No. 06-1 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs ofredeeming 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. Ifreserve funds for the Previously Issued Bonds, if any, are at or above 100% ofthe 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 after 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, II 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, II, 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 ofCFD 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 determined under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year'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 City of Tustin - Tustin Legacy/Cotumbus Villages CFD No. 06-1 Juty 12, 2006 Page 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 Parcel, and the obligation of such Assessor's Parcel 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 I 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 LI ; except that a partial prepayment shall be calculated according to the following formula: PP=PExF. These terms have the following meaning: PP = the partial prepayment PE = the Special Tax A Prepayment Amount calculated according to Section LI 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 ofthe 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 LI, and (ii) indicate in the records ofCFD No. 06-1 that there has been a partial prepayment of the Special Tax A and that a portion ofthe 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.\. 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 I and Zone 2 as set forth in Section F) both City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 Page 20 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. J. TERM OF SPECIAL TAX The Special Tax A shall be levied for a period not to exceed forty years commencing with Fiscal Year 2006-2007. The Special Tax B shall be levied as long as necessary to meet the Special Tax Requirement for Services. K: ICLlENTS2\ Tustin.Cit\TustinMC AS\Lennar\RMA \Lennar _ 8.doc City of Tustin - Tustin Legacy/Columbus Villages CFD No. 06-1 July 12, 2006 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. EXHIBIT B BOUNDARY MAP - o ~ i:3 CD . =8 oN ~l CD_ ,5 0 ->- o '" ~ -01 ~ .!2 -.s= c=- - c= jiii .- " u.t- ...... clJ~ O~ "C) L1- ~~ o W 1-= w S,2>W<( [2ZO::WC)Z <(1-~1ilZO:: ~~Cl:::i:~fr .::ll-w30::::i 10 L1- !:!:! 0 L1- <( alOI-UOU 5:l~~;:~~ W;:;<(UZW o '-'L1-<(::l I- a.. >-C)O~ o I- W U '^ 0:: _...J on a.. 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RESOLUTION NO. 06-90 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN DEEMING IT NECESSARY TO INCUR BONDED INDEBTEDNESS WITHIN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) 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" stating its intention to form City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District") and to authorize the levy of special taxes within the Community Facilities District to finance certain public facilities and services; WHEREAS, on June 5, 2006, the City Council also adopted a resolution entitled "A Resolution of the City Council of the City of Tustin to Incur Bonded Indebtedness of the Proposed City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)" (the "Resolution to Incur Bonded Indebtedness") declaring the necessity for incurring bonded indebtedness and setting the date for a public hearing to be held on the proposed debt Issue; WHEREAS, pursuant to the Resolution to Incur Bonded Indebtedness, notice of said public hearing was published in the Orange County Register, 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, at said public hearing, any person interested, including persons owning property within the area and desiring to appear and present any matters material to the questions set forth in the Resolution to Incur Bonded Indebtedness appeared and presented such matters; WHEREAS, no oral or written protests against the proposed debt issue were made or filed at or before said public hearing; WHEREAS, on this date, the City Council adopted a resolution 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" (the "Resolution of Formation"); WHEREAS, the City Clerk of the City (the "City Clerk") is the election official that will conduct the special election on the proposition to incur bonded indebtedness for the Community Facilities District; OHS WEST:260052017 I WHEREAS, there has been filed with the City Clerk 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 ofthe Community Facilities District for each of the 90 days preceding the close of said public hearing; WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on July 17, 2006 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act; and WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on July 17, 2006; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. The foregoing recitals are true and correct. Section 2. The City Council deems it necessary to incur the bonded indebtedness. Section 3. The bonded indebtedness will be incurred for the purpose of financing the costs of the Facilities (as defined in the Resolution of Formation), including all costs and estimated costs incidental to, or connected with, the accomplishment of such purpose. Section 4. In accordance with the previous determination of the City Council, the whole of the Community Facilities District will pay for the bonded indebtedness. Section 5. The maximum amount of debt to be incurred is $65,000,000. Section 6. The maximum term the bonds to be issued shall run before maturity is 40 years. Section 7. The maximum annual rate of interest to be paid shall not exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds, payable semiannually or at such times as the City Council or its designee shall determine, the actual rate or rates and times of payment of such interest to be determined by the City Councilor its designee at the time or times of sale of the bonds. Section 8. The proposition to incur the bonded indebtedness will be submitted to the voters. Section 9. 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 hearings held by the City Council on the proposed debt issue for the Community Facilities District. Accordingly, pursuant to Section 53326 of the OHS WEST.260052017 I 2 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. Section 10. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), and (b) to the holding of said election on July 17, 2006. The City Council herby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on July 17, 2006. Section 11. The date of the special community facilities district election (which shall be consolidated with the special district election to levy a special tax within the Community Facilities District) at which time the proposition shall be submitted to the voters is July 17, 2006. Section 12. The election is to be conducted by mail ballot. The mailed ballots are required to be received in the office of the City Clerk no later than 8:00 p.m. on July 17, 2006; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed. Section 13. 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 14. 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. Doug Davert, Mayor ATTEST: Pamela Stoker, City Clerk OHS WEST.2600520171 3 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 July 17, 2006, 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: ,2006 Pamela Stoker, City Clerk OHS WEST.260052017 I OFFICIAL BALLOT CITY OF TUSTIN July 17, 2006 SPECIAL ELECTION This ballot is for a special, landowner election. The number of votes to be voted pursuant to this ballot is INSTRUCTIONS TO VOTERS: Tc', "(',If-' nn tllf-' ~Jn'pusit.i 'TL, nl.~d. a '-:l">,S 1+1 'n (X'I ifl th~ "ulinq S'-JUdLe a[~eL lhe word "YES" e'l aftel thl-' \v()lci "NO", All ,L~;t_i[Lyuishi!lq marks '~'l erasu:es are f-Clrbi,-j,jen ann mak>? th'-, ballnt vr,id. If Y'-Ju wrc)r.ql:r' mdLk, t-""on, '-'L Jefd.ee thlS baLL:>t, ri"turn Lt h. th<o Cit:r' CIF-'Lk 'l[ thp '~lty (,[ Tu::;Llll dn,i "btdlr. dIluth'=l. CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) PROPOSITION: Shall City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District") be authorized to incur bonded indebtedness in a maximum amount of not to exceed $65,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $65,000,000, all as specified in the Resolution 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" and the Resolution entitled "A Resolution of the City Council of the City of Tustin Deeming It Necessary to Incur Bonded Indebtedness within City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)," adopted by the City Council of the City of Tustin on July 17, 2006? OHS WEST:26005] 878.] Yes: D No: D RESOLUTION NO. 06-91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN CALLING SPECIAL ELECTION FOR CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06- 1 (TUSTIN LEGACY/COLUMBUS VILLAGES) WHEREAS, on this date, the City Council (the "City Council") ofthe City of Tustin (the "City") adopted, pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act"), a resolution 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" (the "Resolution of Formation"), establishing City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"), authorizing the levy of a special tax within the Community Facilities District and establishing an appropriations limit for the Community Facilities District; WHEREAS, on .this date, the City Council also adopted a resolution entitled "A Resolution of the City Council of the City of Tustin Deeming It Necessary to Incur Bonded Indebtedness within City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)," deeming it necessary to incur bonded indebtedness in the maximum amount of $65,000,000; WHEREAS, pursuant to the provisions of said resolutions, the propositions to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District are to be submitted to the qualified electors of the Community Facilities District as required by the Act; WHEREAS, the City Council desires to designate the City Clerk of the City (the "City Clerk") as the election official for the special election provided for herein; WHEREAS, there has been filed with the City Clerk 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 Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue for the Community Facilities District; WHEREAS, there has been filed with the City Clerk consents and waivers of all of the landowners of record in the Community Facilities District waiving any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), consenting to the holding of said special election on July 17, 2006 and waiving any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 ofthe Act; and WHEREAS, the City Clerk has concurred in said waivers and has concurred in holding said special election on July 17, 2006; OHS WEST:260052026.\ NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. Pursuant to Sections 53351, 53326 and 53325.7 of the Act, the propositions to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be submitted to the qualified electors of the Community Facilities District at an election called therefor as provided below. Section 2. The City Clerk is hereby designated as the official to conduct said election. Section 3. As authorized by Section 53353.5 of the Act, the propositions to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be combined into one ballot proposition. Section 4. 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 hearings heretofore held by the City Council on the establishment of the Community Facilities District and the proposed debt issue for 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. Section 5. The City Council hereby finds and determines that the qualified electors of the Community Facilities District have unanimously consented (a) to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), (b) to the holding of said election on July 17, 2006, and (c) to the waiver of any impartial analysis, arguments or rebuttals, as set forth in Sections 53326 and 53327 of the Act. The City Council herby finds and determines that the City Clerk has concurred in said waivers and has concurred in holding said election on July 17, 2006. Section 6. The City Council hereby calls a special election to submit to the qualified electors of the Community Facilities District the combined proposition to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District, which election shall be held at 300 Centennial Way, Tustin, California, on July 17, 2006. The City Council has caused to be provided to the City Clerk, as the official to conduct said election, the Resolution of Formation, a certified map of sufficient scale and clarity to show the boundaries of the Community Facilities District, and a sufficient description to allow the City Clerk to determine the boundaries of the Community Facilities District. OHS WEsr:260052026.l 2 The voted ballots shall be returned to the City Clerk not later than 8:00 p.m. on July 17, 2006; provided, however, that if all of the qualified electors have voted prior to such time, the election may be closed with the concurrence of the City Clerk. Section 7. Pursuant to Section 53327 of the Act, the election shall be conducted by mail or hand-delivered ballot pursuant to Section 4000 of the California Elections Code. The City Council hereby finds that paragraphs (a), (b), (c) (I) and (c)(3) of said Section 4000 are applicable to this special election. Section 8. The form of the ballot for said election is attached hereto as Exhibit A and by this reference incorporated herein, and such form of ballot is hereby approved. The City Clerk shall cause to be delivered to each of the qualified electors of the Community Facilities District a ballot in said form. Each ballot shall indicate the number of votes to be voted by the respective landowner to which it pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The identification envelope for return of the ballot shall be enclosed with the ballot, shall have the return postage prepaid, and shall contain: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration described in clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board. Analysis and arguments with respect to the ballot proposition are hereby waived, as provided in Section 53327 of the Act. Section 9. The City Clerk shall accept the ballots of the qualified electors in the office of the City Clerk at 300 Centennial Way, Tustin, California, to and including 8:00 p.m. on July 17, 2006, whether said ballots be personally delivered or received by mail. The City Clerk shall have available ballots which may be marked at said location on the election day by said qualified electors. Section 10. The City Council hereby determines that the facilities financed by the Community Facilities District are necessary to meet increased demands placed upon local agencies as a result of development occurring in the Community Facilities District. Section 11. The specific purposes of the bonded indebtedness proposed to be incurred is the financing of the Facilities (as defined in the Resolution of Formation), including all costs and estimated costs incidental to, or connected with, the accomplishment of such purpose, and the proceeds of such bonded indebtedness shall be applied only to such specific purposes. Upon approval of the proposition to incur bonded indebtedness, and the sale of any bonds evidencing such indebtedness, the City Council shall take such action as may be necessary to cause to be established an account for deposit of the proceeds of sale of the bonds. For so long as any proceeds of the bonds remain unexpended, the Finance Director of the City shall cause to be filed with the City Council, no later than January I of each year, a report stating (a) the OHS WEST:260052026.1 3 amount of bond proceeds received and expended during the preceding year, and (b) the status of any project funded or to be funded from bond proceeds. Said report may relate to the calendar year, fiscal year, or other appropriate annual period, as the Finance Director of the City shall determine, and may be incorporated into the annual budget, audit, or other appropriate routine report to the City Council. Section 12. 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 13. 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. Doug Davert, Mayor ATTEST: Pamela Stoker, City Clerk OHS WEST:260052026.1 4 EXHIBIT A OFFICIAL BALLOT CITY OF TUSTIN July 17,2006 SPECIAL ELECTION This ballot is for a special, landowner election. The number of votes to be voted pursuant to this ballot is INSTRUCTIONS TO VOTERS: Tel V()~e "[1 thp pr()p()5it.i-'1l, ~drk ;). ~[:'S:3 !.) ,-,r IXI in th,.., V:>t.Lll'J SqUdP~ dfter t-he word "YES" (.'1 dtt'='L lhp ,,,,,td "NO". All dlstinquisl"llrJ'l Tnarks ,H PL'd::;'..!I,,:"; dl<-' t"Lbiddpn~[ld mdkf' t_h~ b,'lllvt v,-,1d. It y,:,u wroJlgly %Hk, tP~l, "r ejptace thL~ ballJt, retunl it to rhl-O ':::1t'l '-::lprk "f tljl' ':":ity "t T',Jst-ir, ",nd ,)braln another. CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) PROPOSITION: Shall City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District") be authorized to incur bonded indebtedness in a maximum amount of not to exceed $65,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $65,000,000, all as specified in the Resolution 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" and the Resolution entitled "A Resolution of the City Council of the City of Tustin Deeming It Necessary to Incur Bonded Indebtedness within City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)," adopted by the City Council of the City of Tustin on July 17, 2006? Yes: D No: D OHS WEST:260052026.1 A-I 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 July 17, 2006, 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: ,2006 Pamela Stoker, City Clerk OHS WEsr260052026.1 RESOLUTION NO. 06-92 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN DECLARING RESULTS OF SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN WHEREAS, on July 17, 2006, the City Council (the "City Council") of the City of Tustin (the "City") adopted, pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act"), a resolution entitled "A Resolution of the City Council of the City of Tustin Calling Special Election for City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)" (the "Resolution Calling Election"), calling for a special election of the qualified electors within City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"); WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the special election was held on July 17, 2006; and WHEREAS, the City Clerk of the City (the "City Clerk") has certified the canvass of the returns of the election and has filed a Canvass and Statement of Results of Election (the "Canvass"), a copy of which is attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. The City Council has received, reviewed and hereby accepts the Canvass. Section 2. The City Council hereby finds and declares that the ballot proposition submitted to the qualified electors of the Community Facilities District pursuant to the Resolution Calling Election has been passed and approved by such electors in accordance with Section 53328(a), Section 53355 and Section 53325.7 of the Act. Section 3. The City Clerk is hereby directed to execute and cause to be recorded in the office of the County Recorder of Orange County a notice of special tax lien in the form required by the Act, said recording to occur no later than 15 days following adoption by the City Council of this Resolution. Section 4. 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 5. This Resolution shall take effect immediately upon its adoption. OHS West:260052030.\ APPROVED and ADOPTED by the City Council of the City of Tustin on July 17, 2006. Doug Davert, Mayor ATTEST: Pamela Stoker, City Clerk OHS W.,.:260052030.1 2 EXHIBIT A CANVASS AND STATEMENT OF RESULTS OF ELECTION CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) I hereby certify that on July 17, 2006, 1 canvassed the returns of the special election held on July 17, 2006 for City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages), that the total number of ballots cast in said Community Facilities District and the total number of votes cast for and against the proposition are as follows and that the totals as shown for and against the proposition are true and correct: Qualified Landowner Votes Votes Cast YES NO City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) Special Election, July 17, 2006 PROPOSITION: Shall City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District") be authorized to incur bonded indebtedness in a maximum amount of not to exceed $65,000,000 and levy a special tax in order to finance certain facilities and services and shall the annual appropriations limit of the Community Facilities District be established in the amount of $65,000,000, all as specified in the Resolution 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" and the Resolution entitled "A Resolution of the City Council of the City of Tustin Deeming It Necessary to Incur Bonded Indebtedness within City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)," adopted by the City Council of the City of Tustin on July 17, 2006? IN WITNESS WHEREOF, I have hereunto set my hand this 17th day of July, 2006. Pamela Stoker, City Clerk of the City of Tustin OHS W.st:2600520JO.1 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 July 17, 2006, 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 ofrecord 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: ,2006 Pamela Stoker, City Clerk OHS West:260052030.1 CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) CONCURRENCE OF ELECTION OFFICIAL I, Pamela Stoker. City Clerk of the City of Tustin (the "City"). hereby certify as follows: (i) City; and that I am the election official responsible for conducting special elections in the (ii) that, pursuant to Section 53326(a) of the Mello-Roos Community Facilities Act of 1982 (the "Act"), I do hereby concur to (a) the holding of a special election on Monday, July 17, 2006, for the purpose of submitting to the qualified electors of proposed City of Tustin Community Facilities District No.. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District") the propositions to incur bonded indebtedness, to levy a special tax within the Community Facilities District and to establish an appropriations limit for the Community Facilities District, as provided in Resolution No. 06-89, proposed to be adopted by the City Council of the City on July 17,2006, and (b) with respect to such special election, the waiving by the qualified electors of the Community Facilities District of any time limit specified by Section 53326 of the Act, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). Dated: July 17, 2006 Pamela Stoker, City Clerk OHS West:260051873.1 RECORDING REQUESTED BY AND AFTER RECORDA nON RETURN TO: City Clerk City of Tustin 300 Centennial Way Tustin, California 92680 NOTICE OF SPECIAL TAX LIEN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO, 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 53328.3 of the Mello-Roos Community Facilities Act of 1982 (the "Act"), the undersigned City Clerk ofthe City of Tustin (the "City"), hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City. The special tax secured by this lien is authorized to be levied for the purpose of (al paying the principal of and interest on bonds, the proceeds of which are being used to finance the facilities described under the caption "Facilities" on Exhibit A attached hereto and hereby made a part hereof (the "Facilities"), and (b) providing the services described under the caption "Services" on Exhibit A attached hereto (the "Services"). The special tax is authorized to be levied within City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District") which has now been officially formed and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Act. The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in Exhibit B attached hereto and hereby made a part hereof. Conditions under which the obligation to pay the special tax for the Facilities may be prepaid and permanently satisfied and the lien of the special tax canceled are as set forth in Exhibit B hereto. The obligation to pay the special tax for the Services may not be prepaid. Notice is further given that upon the recording of this notice in the office of the County Recorder of the County of Orange, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the Community Facilities District in accordance with Section 3115.5 of the California Streets and Highways Code. us _ WEST.260051821.2 The name(s) of the owner(s) and the assessor's tax parcel number(s) of the real property included within the Community Facilities District and not exempt from the special tax are as set forth in Exhibit C attached hereto and hereby made a part hereof. Reference is made to the boundary map of the Community Facilities District recorded in Book 91 of Maps of Assessment and Community Facilities Districts at Pages 37 -39, in the office of the County Recorder of the County of Orange as Instrument No. 2006000399917, which map is now the final boundary map of the Community Facilities District. For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Finance Director of the City of Tustin, 300 Centennial Way, Tustin, California 92680, (714) 573-3061. Dated: July 17,2006 Pamela Stoker, City Clerk of the City of Tustin us _ WEST.2600S1821.2 2 EXHIBIT A FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities to be financed by the Community Facilities District 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 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. us WEST.260051821.2 A-I EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX US_ WEST:260051821.2 B-1 EXHIBIT C PROPERTY OWNERS AND ASSESSOR'S PARCEL OR TRACT NUMBERS Name of Property Owner Moffett Meadows Partners, LLC Tustin Villas Partners, LLC William Lyon Homes, Inc. ORA Astoria, LLC MW Housing Partners, III, L.P. us _ WEST.260051821.2 Assessor's Parcel/Tract Nos. Lots 263, 264, 293, 33 I and 365, and Lettered Lots A through E, H through M, P, Q, R, U, X, CA through CF, DA through OJ, EA, EB, FA through FD, AAA through AAJ, BAB, BAC, BAD, BAE, BAF, BAA, BBA through BBZ, CCA through CCO, DAA, DEA, DDA through DDK and DDM through DDZ of Tract No. 1658 I. Lot 237, and Lettered Lots A through Z, AA through AZ and BA through BR of Tract No. 16582 Lots 265 and Lettered Lots S, T and Y of Tract No. 16581. Lots 8 through 86, 212 through 215, 266 through 292 and 366 through 383 and Lettered Lots EC through EG and IA through IL of Tract No. 16581. Lots 54 through 56, 69 through 79 and 238 through 243 of Tract No. 16582. Lots 103 through 136, 181 through 211,216 through 241,246,247 and 248 of Tract No. 16581. Lots 1 through 7, 87 through 94,98 through 102, 137 through 160, 164 through 175, 249 through 262, 295, 299 through 306, 310 through 314, 317 through 324, 328 through 330, 334 through 340, 343 through 345, 347 and 356 through 360 and Lettered Lots AD through AL, BC, GA through GH and HA through HO of Tract No. 1658 I. Units 106 through 114, as shown and described on that certain Condominium Plan recorded May 22, 2006, as Instrument No. 2006000343410, in Official Records of Orange County, California ("Condominium Plan"), affecting a portion of Lot 315 and all of Lots 316 and 325 of Tract No. 16581. (As shown on the Map recorded in Book 877 Pages 33 through 50 of C-I ORA Ciara, LLC Lennar Homes of California, Inc. KB Homes Coastal, Inc. US WEST:260051821.2 Miscellaneous Maps, Records of Orange County, California). Lots 25 through 35, 80 through 98, 110 through 130, 134, 135, 147, 148, 160 through 172, 180 through 194, 197 through 210, 231 through 236 and 244 through 286 of Tract No. 16582. Lots I through 23, 36 through 53 and 57 through 68 of Tract No. 16582. Lots 95, 96, 97,161,162,163,176,177,178,179,180, 294,296,297,298,307,308,309,362,363 and 364 of Tract No. 16581. Unit 1, 2 and 3, as shown and described on that certain Condominium Plan recorded May 22, 2006, as Instrument No. 2006000343409, and amended by a document entitled "Amendment to Condominium Plan for Meriwether in Columbus Square (Model Phase- Units 1 to 3 of Lot 315, Tract No. 16581)" recorded June 19, 2006, as Instrument No. 2006000409780, both of Official Records of Orange County, California ("Condominium Plan"), affecting a portion of Lot 315 of Tract No. 16581, as shown on the Map recorded in Book 877 Pages 33 through 50 of Miscellaneous Maps, Records of Orange County, California. Units 4 through 15, as shown and described on that certain Condominium Plan recorded May 22, 2006, as Instrument No. 2006000343408, in Official Records of Orange County, California ("Condominium Plan"), affecting Lots 326 and 327 of Tract No. 16581, as shown on the Map recorded in Book 877, Pages 33 through 50 of Miscellaneous Maps, Records of Orange County, California. Lots 99 through 109, 131 through 133, 136 through 146 and 149 through 159 of Tract No. 16582. Lots 24, 173 through 179, 195, 196 and 211 through 230 ofTract No. 16582. C-2 ORDINANCE NO. 1315 AN ORDINANCE OF THE CITY OF TUSTIN LEVYING SPECIAL TAXES WITHIN CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) WHEREAS, on June 5, 2006, the City Council (the "City Council") of the City of Tustin, 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" stating its intention to establish City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District") and to finance certain public facilities (the "Facilities") and services (the "Services") and setting the date for a public hearing to be held on the establishment of the Community Facilities District; WHEREAS, on July 17, 2006, the City Council held a noticed public hearing on the establishment of the Community Facilities District, as required by the Act; WHEREAS, subsequent to the close of said hearing, on July 17, 2006, the City Council adopted resolutions 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" (the "Resolution of Formation"), "A Resolution of the City Council of the City of Tustin Deeming it Necessary to Incur Bonded Indebtedness within City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)" and "A Resolution of the City Council of the City of Tustin Calling Special Election for City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)," which resolutions established the Community Facilities District, authorized the levy of a special tax within the Community Facilities District and called an election within the Community Facilities District on the proposition of incurring indebtedness, levying a special tax within the Community Facilities District and establishing an appropriations limit for the Community Facilities District, respectively; and WHEREAS, on July 17, 2006, an election was held in which the qualified electors of the Community Facilities District approved said proposition by more than the two-thirds vote required by the Act; THE CITY COUNCIL OF THE CITY OF TUSTIN DOES ORDAIN AS FOLLOWS: Section 1. The City Council hereby authorizes and levies special taxes within the Community Facilities District pursuant to Sections 53328 and 53340 of the Act, at the rate and in accordance with the method of apportionment set forth in Exhibit A to the Resolution of Formation (the "Rate and Method of Apportionment"). The special taxes are hereby levied commencing in fiscal year 2006-07 and in each fiscal year thereafter until the last fiscal year in OHS West:260052038.1 which such special taxes are authorized to be levied pursuant to the Rate and Method of Apportionment. Section 2. The City Council may, in accordance with subdivision (b) of Section 53340 of the Act, provide, by resolution, for the levy of the special tax in future tax years at the same rate or at a lower rate than the rate provided by this Ordinance. In no event shall the special tax be levied on any parcel within the Community Facilities District in excess of the maximum tax specified therefor in the Rate and Method of Apportionment. Section 3. The special tax shall be levied on all of the parcels in the Community Facilities District, unless exempted by law or by the Rate and Method of Apportionment. Section 4. The proceeds of the special tax shall only be used to pay, in whole or in part, the cost of providing the Facilities and Services and incidental expenses pursuant to the Act. Section 5. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes, unless another procedure is adopted by the City Council. Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the Community Facilities District, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the Community Facilities District shall not be affected. Section 7. This Ordinance shall take effect and shall be in force 30 days after the date of its adoption and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Tustin News, a newspaper of general circulation, printed and published in the City of Tustin, State of California, together with the names of the City Council members voting for and against the same. OHS West:260052038.! 2 PASSED, ADOPTED and APPROVED this _ day of City Council of the City of Tustin, California. , 2006, by the Doug Davert, Mayor ATTEST: Pamela Stoker, City Clerk APPROVED AS TO FORM: CITY ATTORNEY By: OHS West:2600520J8.1 3 CLERK'S CERTIFICATE ST ATE 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 the Ordinance introduced at a regular meeting of the City Council of the City of Tustin duly held on July 17, 2006, of which meeting all of the members of said City Council had due notice and at which a majority thereof were present; and was finally passed and adopted not less than five days thereafter on , 2006, 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 Ordinance 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 Ordinance is a full, true and correct copy of the original Ordinance adopted at said meeting and entered in said minutes; and that said Ordinance has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: ,2006 Pamela Stoker, City Clerk OHS West:260052U3R.1 CONSENT AND WAIVER CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 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 consent and 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; Property. This Consent and Waiver is submitted by Moffett Meadows Partners, LLC ("Landowner"), as the legal owner of approximately -QQ...2 acres of land described in Exhibit A attached hereto and made a part hereof (the "Property"). Pursuant to a petition of the Landowner, the City Council (the "City Council") of the City of Tustin (the "City") has commenced proceedings under the Act to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"). All of the Property is within the boundaries of the Community Facilities District. 2. Proceedings. The Landowner hereby acknowledges and agrees that the City Council has, pursuant to a petition of the Landowner, commenced proceedings pursuant to the Act to establish the Community Facilities District, to levy a special tax in the Community Facilities District to finance certain public facilities and services and to authorize special tax bonds for the Community Facilities District in an amount not to exceed $65,000,000. The public facilities proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit 8 attached hereto and the services proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit 8 attached hereto. The City Council has fixed July 17, 2006 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 where the City Council will conduct public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District. The Landowner hereby acknowledges and agrees that notices of the hearings were published by the City Clerk on July 6, 2006 in The Orange County Register, a newspaper of general circulation published in the area of the Community Facilities District. The Landowner hereby acknowledges and agrees that it had actual notice of the public hearings, that notice of such hearings has been given in accordance with the Act, that it waives any and all (ms H'1'.'1:2(()1I51()71.IIJS WFST'260051h71 2 defects (if any) in such notice, and that it waives any rights it may have to make any protest or complaint or to undertake any legal action challenging the adequacy of such notice. 3. Ownership of Property; No Registered Voters; Landowner Election. The Landowner represents and warrants to the City that it is the legal owner of the fee interest in all of the Property and that no other person or entity is the legal owner of all or any portion of the fee interest in any of such Property. To the best of the Landowner's knowledge, there are no registered voters residing within the boundaries of the Property and there have been none during the 90-day period preceding the date of this Consent and Waiver. The Landowner hereby acknowledges and agrees that, pursuant to Section 53326(b) of the Act, if fewer than 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District, the vote on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be by the landowners of the Community Facilities District and each landowner who is the owner of record at the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District. The Landowner hereby acknowledges and agrees that if, as anticipated, said public hearings are closed on the date hereof, said vote shall, pursuant to Section 53326(b) of the Act, be by the landowners of the Community Facilities District. 4. Request. The Landowner hereby requests that the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District be conducted using mailed or hand-delivered ballots, that such ballots be opened and canvassed at such election, and that the results of such election be certified at the same meeting of the City Council as the public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District, or as soon thereafter as possible. 5. Consent and Waiver. The Landowner hereby acknowledges and agrees that if the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District is held on July 17, 2006, said election would be held less than 90 days after the anticipated close of the July 17, 2006 public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District. The Landowner hereby acknowledges and agrees that the qualified electors of the Community Facilities District are entitled, pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). The Landowner hereby consents to the waiver of, and hereby waives, any time limit specified by Section 53326 of the Act and any OJ..lS Ult_t26{11\.~ltJ71.IlJS WFST-2600S1671 2 2 requirement pertammg to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), including, but not limited to, all notices with respect thereto (published, mailed or otherwise to be given), any voter qualification requirements, any time limitations, any requirements as to form or content of election materials, all publication requirements, all pre-election, election or voting procedures (other than the right to vote) and all canvass, recount and tie vote procedures. The Landowner hereby consents to the holding of said special election on July 17, 2006. The Landowner hereby acknowledges and agrees that the landowners of the Community Facilities District are entitled (a) pursuant to Section 53327(b) of the Act, to consent to the waiver of any impartial analysis, arguments or rebuttals, with respect to the special election on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and (b) pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any requirement pertaining to the conduct of said special election. The Landowner hereby acknowledges and agrees that said special election is to be held without the preparation of an impartial analysis and arguments and rebuttals, if any, as permitted by Section 53327(b) of the Act. The Landowner hereby consents to the waiver of, and hereby waives, the requirement in Section 53327(a) that there be prepared and included in the ballot material provided to each voter an impartial analysis pursuant to Section 9160, 9280 or 9500 of the California Elections Code, and arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the California Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the California Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of the California Elections Code, or pursuant to other provisions of law applicable to other special districts as appropriate. The Landowner hereby represents that it has obtained such information with respect to the consents and waivers contained herein as it has deemed necessary or appropriate. The Landowner hereby confirms and represents that it is fully informed with respect to such consents and waivers and fully understands the consequences thereof. The Landowner hereby waives any and all defects in notice or procedure in any proceedings to establish the Community Facilities District, to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District, or in the conduct of the election, whether known or unknown (other than, in the case of the election, the right to have ballots accurately counted), and the Landowner hereby represents that the election is being expedited pursuant to this Consent and Waiver, at the particular request of the Landowner. The Landowner further waives its right to make any protest or complaint or to undertake any legal action challenging the validity of the election. 6. Authorized Representative. The undersigned John Baayoun, Vice President of Lennar Homes of California, Inc., has been duly authorized by the Landowner and possesses all authority necessary to execute this Consent and Waiver on behalf of the Landowner in connection with the election to be held by the City Council of the City under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special ows \\'~.f:2e'i\516"71.I(JS WEST 2600516712 3 tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and is the authorized representative of the Landowner authorized to execute ballots on behalf of the Landowner and to vote in the election referred to herein. The signature set forth opposite the name of such authorized representative is the genuine signature of such person: Name Signature John Baayoun, Vice President 7. Mailing Address. The address of the Landowner for receiving notices and ballots is:- Lennar - Land Division, Project Management, 25 Enterprise, Suite 500, Aliso Viejo, CA 92656, Attn: Marsha Santry. This Consent and Waiver is dated as of July 17, 2006. 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 Califomia, Inc., A California corporation Managing member Its: By: Name: Title: John Baayoun Vice President OHS\\ll'L"JtiW)~l{7111JS WFST2600'i]671 ') 4 EXHIBIT A DESCRIPTION OF PROPERTY That certain real property situated in the County of Orange, State of California, described as follows: LOTS 263, 264, 293, 331 AND 365 OF TRACT NO. 16581, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. and LETTERED LOTS A THROUGH E INCUJSIVE. H THROUGH M INCLUSIVE. P. O. R. U. X. CA THROUGH CF INCLUSIVE. DA THROUGH DJ INCLUSIVE. EA. EB. FA THROUGH FD INCLUSIVE. AAA THROUGH AAJ INCLUSIVE. BAB. BAC. BAD. BAE. BAF. BAA. BBA THROUGH BBZ INCLUSIVE. CCA THROUGH CCO INCLUSIVE. DAA. DEA. DDA THROUGH DDK INCLUSIVE. DDM THROUGH DDZ INCLUSIVE OF TRACT NO. 16581. IN THE CITY OF TUSTIN COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE. IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. and LOT 237 OF TRACT NO. 16582, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 874 PAGES I THROUGH 30 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. LETTERED LOTS "A" THROUGH "Z" INCLUSIVE. "AA" THROUGH "AZ" INCLUSIVE AND "BA" THROUGH "BR" INCLUSIVE. OF TRACT NO. 16582. IN THE CITY OF TUSTIN. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON THE MAP RECORDED IN BOOK 874 PAGES I THROUGH 30 INCLUSIVE. IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. 01=1:.; \\'.!:l:2fl{\'l~16:1.lIJS WEST'2hOOSlh71 2 A-I EXHIBIT B FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities proposed to be financed by the Community Facilities District 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. OMS \l'~,'t:~{1t'11:::[671.1IJS WFST 260051 671 2 B-1 CONSENT AND WAIVER CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 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 consent and 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; Property. This Consent and Waiver is submitted by Tustin Villas Partners, LLC ("Landowner"), as the legal owner of approximately -lQ...2 acres of land described in Exhibit A attached hereto and made a part hereof (the "Property"). Pursuant to a petition of the Landowner, the City Council (the "City Council") of the City of Tustin (the "City") has commenced proceedings under the Act to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"). All of the Property is within the boundaries of the Community Facilities District. 2. Proceedings. The Landowner hereby acknowledges and agrees that the City Council has, pursuant to a petition of the Landowner, commenced proceedings pursuant to the Act to establish the Community Facilities District, to levy a special tax in the Community Facilities District to finance certain public facilities and services and to authorize special tax bonds for the Community Facilities District in an amount not to exceed $65,000,000. The public facilities proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit B attached hereto and the services proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit B attached hereto. The City Council has fixed July 17, 2006 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 where the City Council will conduct public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District. The Landowner hereby acknowledges and agrees that notices of the hearings were published by the City Clerk on July 6, 2006 in The Orange County Register, a newspaper of general circulation published in the area of the Community Facilities District. The Landowner hereby acknowledges and agrees that it had actual notice of the public hearings, that notice of such hearings has been given in accordance with the Act, that it waives any and all OHS: H'l!:(:2hPP::lfi7j,\IJS WEST2h()O~lh71 2 defects (if any) in such notice, and that it waives any rights it may have to make any protest or complaint or to undertake any legal action challenging the adequacy of such notice. 3. Ownership of Property; No Registered Voters; Landowner Election. The Landowner represents and warrants to the City that it is the legal owner of the fee interest in all of the Property and that no other person or entity is the legal owner of all or any portion of the fee interest in any of such Property. To the best of the Landowner's knowledge, there are no registered voters residing within the boundaries of the Property and there have been none during the 90-day period preceding the date of this Consent and Waiver. The Landowner hereby acknowledges and agrees that, pursuant to Section 53326(b) of the Act, if fewer than 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District, the vote on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be by the landowners of the Community Facilities District and each landowner who is the owner of record at the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District. The Landowner hereby acknowledges and agrees that if, as anticipated, said public hearings are closed on the date hereof, said vote shall, pursuant to Section 53326(b) of the Act, be by the landowners of the Community Facilities District. 4. Request. The Landowner hereby requests that the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District be conducted using mailed or hand-delivered ballots, that such ballots be opened and canvassed at such election, and that the results of such election be certified at the same meeting of the City Council as the public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District, or as soon thereafter as possible. 5. Consent and Waiver. The Landowner hereby acknowledges and agrees that if the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District is held on July 17, 2006, said election would be held less than 90 days after the anticipated close of the July 17, 2006 public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District. The Landowner hereby acknowledges and agrees that the qualified electors of the Community Facilities District are entitled, pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). The Landowner hereby consents to the waiver of, and hereby waives, any time limit specified by Section 53326 of the Act and any OHS \l!(':'t.~6f\P.<ltJ71.11JS WEST'')6onSlh71 ') 2 requirement pertammg to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), including, but not limited to, all notices with respect thereto (published, mailed or otherwise to be given), any voter qualification requirements, any time limitations, any requirements as to form or content of election materials, all publication requirements, all pre-election, election or voting procedures (other than the right to vote) and all canvass, recount and tie vote procedures. The Landowner hereby consents to the holding of said special election on July 17,2006. The Landowner hereby acknowledges and agrees that the landowners of the Community Facilities District are entitled (a) pursuant to Section 53327(b) of the Act, to consent to the waiver of any impartial analysis, arguments or rebuttals, with respect to the special election on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and (b) pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any requirement pertaining to the conduct of said special election. The Landowner hereby acknowledges and agrees that said special election is to be held without the preparation of an impartial analysis and arguments and rebuttals, if any, as permitted by Section 53327(b) of the Act. The Landowner hereby consents to the waiver of, and hereby waives, the requirement in Section 53327(a) that there be prepared and included in the ballot material provided to each voter an impartial analysis pursuant to Section 9160,9280 or 9500 of the California Elections Code, and arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the California Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the California Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of the California Elections Code, or pursuant to other provisions of law applicable to other special districts as appropriate. The Landowner hereby represents that it has obtained such information with respect to the consents and waivers contained herein as it has deemed necessary or appropriate. The Landowner hereby confirms and represents that it is fully informed with respect to such consents and waivers and fully understands the consequences thereof. The Landowner hereby waives any and all defects in notice or procedure in any proceedings to establish the Community Facilities District, to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District, or in the conduct of the election, whether known or unknown (other than, in the case of the election, the right to have ballots accurately counted), and the Landowner hereby represents that the election is being expedited pursuant to this Consent and Waiver, at the particular request of the Landowner. The Landowner further waives its right to make any protest or complaint or to undertake any legal action challenging the validity of the election. 6. Authorized Representative. The undersigned John Baayoun, Vice President of Lennar Homes of California, Inc., has been duly authorized by the Landowner and possesses all authority necessary to execute this Consent and Waiver on behalf of the Landowner in connection with the election to be held by the City Council of the City under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special OH~: H:~,'l:261\1\'::lt 71.IlJS WEST2600:<=ilh71 2 3 tax in the Community Facilities District and to establish an appropnatlOns limit for the Community Facilities District, and is the authorized representative of the Landowner authorized to execute ballots on behalf of the Landowner and to vote in the election referred to herein. The signature set forth opposite the name of such authorized representative is the genuine signature of such person: Name Signature John Baayoun, Vice President 7. Mailing Address. The address of the Landowner for receiving notices and ballots is: Lennar - Land Division, Project Management, 25 Enterprise, Suite 500, Aliso Viejo, CA 92656, Attn: Marsha Santry. This Consent and Waiver is dated as of July 17,2006. TUSTIN VILLAS PARTNERS, LLC, A Delaware limited liability company By: Lennar Homes of California, Inc., A California corporation Its: Managing member By: Name: John Baayoun Title: Vice President OHS \\'l'.'l:2&(U)~11171.1IJS WF:ST26005167] 2 4 EXHIBIT A DESCRIPTION OF PROPERTY That certain real property situated in the County of Orange, State of California, described as follows: LOTS 265 OF TRACT NO. 16581, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. and LETTERED LOTS S. T AND Y. OF TRACT NO. 16581. IN THE CITY OF TUSTIN. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE. IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. OHS url!~,t:"1hO{).?If.1'lI,llJS WEST"hOO:'i]h71 2 A-I EXHIBIT B FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities proposed to be financed by the Community Facilities District 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. OilS \\ll,-,(..~(i(~(\~1671 lllS WFST260OS1671 2 B-1 CONSENT AND WAIVER CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 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 consent and 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; Property. This Consent and Waiver is submitted by William Lyon Homes, Inc. ("Landowner"), as the legal owner of approximately ___36.7 acres of land described in Exhibit A attached hereto and made a part hereof (the "Property"). Pursuant to a petition of the Landowner, the City Council (the "City Council") of the City of Tustin (the "City") has commenced proceedings under the Act to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"). All of the Property is within the boundaries of the Community Facilities District. 2. Proceedings. The Landowner hereby acknowledges and agrees that the City Council has, pursuant to a petition of the Landowner, commenced proceedings pursuant to the Act to establish the Community Facilities District, to levy a special tax in the Community Facilities District to finance certain public facilities and services and to authorize special tax bonds for the Community Facilities District in an amount not to exceed $65,000,000. The public facilities proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit B attached hereto and the services proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit B attached hereto. The City Council has fixed July 17, 2006 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 where the City Council will conduct public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District. The Landowner hereby acknowledges and agrees that notices of the hearings were published by the City Clerk on July 6, 2006 in The Orange County Register, a newspaper of general circulation published in the area of the Community Facilities District. The Landowner hereby acknowledges and agrees that it had actual notice of the public hearings, that notice of such hearings has been given in accordance with the Act, that it waives any and all OH~, H'u:2!i()II5167].]lJS WEST 260051671 2 defects (if any) in such notice, and that it waives any rights it may have to make any protest or complaint or to undertake any legal action challenging the adequacy of such notice. 3. Ownership of Property; No Registered Voters; Landowner Election. The Landowner represents and warrants to the City that it is the legal owner of the fee interest in all of the Property and that no other person or entity is the legal owner of all or any portion of the fee interest in any of such Property. To the best of the Landowner's knowledge, there are no registered voters residing within the boundaries of the Property and there have been none during the 90-day period preceding the date of this Consent and Waiver. The Landowner hereby acknowledges and agrees that, pursuant to Section 53326(b) of the Act, if fewer than 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District, the vote on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be by the landowners of the Community Facilities District and each landowner who is the owner of record at the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District. The Landowner hereby acknowledges and agrees that if, as anticipated, said public hearings are closed on the date hereof, said vote shall, pursuant to Section 53326(b) of the Act, be by the landowners of the Community Facilities District. 4. Request. The Landowner hereby requests that the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District be conducted using mailed or hand-delivered ballots, that such ballots be opened and canvassed at such election, and that the results of such election be certified at the same meeting of the City Council as the public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District, or as soon thereafter as possible. 5. Consent and Waiver. The Landowner hereby acknowledges and agrees that if the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District is held on July 17, 2006, said election would be held less than 90 days after the anticipated close of the July 17, 2006 public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District. The Landowner hereby acknowledges and agrees that the qualified electors of the Community Facilities District are entitled, pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). The Landowner hereby consents to the waiver of, and hereby waives, any time limit specified by Section 53326 of the Act and any OMS U\"..t:2(0H5I~:1.IlJS WEST7f,OOSlh71 2 2 requirement pertammg to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 ofthe Act (commencing with Section 53345 of the Act), including, but not limited to, all notices with respect thereto (published, mailed or otherwise to be given), any voter qualification requirements, any time limitations, any requirements as to form or content of election materials, all publication requirements, all pre-election, election or voting procedures (other than the right to vote) and all canvass, recount and tie vote procedures. The Landowner hereby consents to the holding of said special election on July 17, 2006. The Landowner hereby acknowledges and agrees that the landowners of the Community Facilities District are entitled (a) pursuant to Section 53327(b) of the Act, to consent to the waiver of any impartial analysis, arguments or rebuttals, with respect to the special election on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and (b) pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any requirement pertaining to the conduct of said special election. The Landowner hereby acknowledges and agrees that said special election is to be held without the preparation of an impartial analysis and arguments and rebuttals, if any, as permitted by Section 53327(b) of the Act. The Landowner hereby consents to the waiver of, and hereby waives, the requirement in Section 53327(a) that there be prepared and included in the ballot material provided to each voter an impartial analysis pursuant to Section 9160, 9280 or 9500 of the California Elections Code, and arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the California Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the California Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of the California Elections Code, or pursuant to other provisions of law applicable to other special districts as appropriate. The Landowner hereby represents that it has obtained such information with respect to the consents and waivers contained herein as it has deemed necessary or appropriate. The Landowner hereby confirms and represents that it is fully informed with respect to such consents and waivers and fully understands the consequences thereof. The Landowner hereby waives any and all defects in notice or procedure in any proceedings to establish the Community Facilities District, to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District, or in the conduct of the election, whether known or unknown (other than, in the case of the election, the right to have ballots accurately counted), and the Landowner hereby represents that the election is being expedited pursuant to this Consent and Waiver, at the particular request of the Landowner. The Landowner further waives its right to make any protest or complaint or to undertake any legal action challenging the validity of the election. 6. Authorized Representative. The undersigned Richard S. Robinson, Senior Vice President, and Matthew R. Zaist, Assistant Secretary of the Landowner, have been duly authorized by the Landowner and possess all authority necessary to execute this Consent and Waiver on behalf of the Landowner in connection with the election to be held by the City Council of the City under the Act on the proposition to incur bonded indebtedness of the ('1-1>1 H'~"1:2~gr151~:I.IUS WFST261l05]671 2 3 Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and are the authorized representatives of the Landowner authorized to execute ballots on behalf of the Landowner and to vote in the election referred to herein. The signature set forth opposite the name of each such authorized representative is the genuine signature of such person: Name Signature Richard S. Robinson, Senior Vice President Matthew R. Zaist, Assistant Secretary 7. Mailing Address. The address of the Landowner for receiving notices and ballots is: William Lyon Homes, 4490 Von Karman Avenue, Newport Beach, CA 92660, Attn: Matt Zaist. This Consent and Waiver is dated as of July 17,2006. WILLIAM LYON HOMES, INC., A California corporation By: Name: Its: Richard S. Robinson Senior Vice President By: Name: Its: Matthew R. Zaist Assistant Secretary OH~: \\Il~'(:2lJ{"\:11)71_1IJS WF:ST26005t671 2 4 EXHIBIT A DESCRIPTION OF PROPERTY That certain real property situated in the County of Orange, State of California, described as follows: LOTS 8 THROUGH 86 INCLUSIVE, 212 THROUGH 215 INCLUSIVE, 266 THROUGH 292 INCLUSIVE AND 366 THROUGH 383 OF TRACT NO. 16581, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. and LETTERED LOTS EC THROUGH EG INCLUSIVE AND IA THROUGH IL INCLUSIVE. OF TRACT NO. 16581. IN THE CITY OF TUSTIN. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE. IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. and LOTS 54 THROUGH 'sM6. 69 THROUGH 79 AND 238 THROUGH 243 INCLUSIVE, OF TRACT NO. 16582, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 874 PAGES I THROUGH 30 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. ow; HI ..t:~fln'15It)"'l.llJS WFST260051671 2 A-I EXHIBIT B FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities proposed to be financed by the Community Facilities District 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. OHS \\r~..t:2(')1)~lb71.1lJS WEST 2600'i]h71 ') B-1 CONSENT AND WAIVER CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 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 consent and 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; Property. This Consent and Waiver is submitted by ORA Astoria, LLC ("Landowner"), as the legal owner of approximately -l.!Ll acres of land described in Exhibit A attached hereto and made a part hereof (the "Property"). Pursuant to a petition of the Landowner, the City Council (the "City Council") of the City of Tustin (the "City") has commenced proceedings under the Act to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"). All of the Property is within the boundaries of the Community Facilities District. 2. Proceedings. The Landowner hereby acknowledges and agrees that the City Council has, pursuant to a petition of the Landowner, commenced proceedings pursuant to the Act to establish the Community Facilities District, to levy a special tax in the Community Facilities District to finance certain public facilities and services and to authorize special tax bonds for the Community Facilities District in an amount not to exceed $65,000,000. The public facilities proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit B attached hereto and the services proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit B attached hereto. The City Council has fixed July 17, 2006 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 where the City Council will conduct public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District. The Landowner hereby acknowledges and agrees that notices of the hearings were published by the City Clerk on July 6, 2006 in The Orange County Register, a newspaper of general circulation published in the area of the Community Facilities District. The Landowner hereby acknowledges and agrees that it had actual notice of the public hearings, that notice of such hearings has been given in accordance with the Act, that it waives any and all OI-lS U.~:l:2()()05IH:I,IIJS WFST'Jh00516712 defects (if any) in such notice, and that it waives any rights it may have to make any protest or complaint or to undertake any legal action challenging the adequacy of such notice. 3. Ownership of Property; No Registered Voters; Landowner Election. The Landowner represents and warrants to the City that it is the legal owner of the fee interest in all of the Property and that no other person or entity is the legal owner of all or any portion of the fee interest in any of such Property. To the best of the Landowner's knowledge, there are no registered voters residing within the boundaries of the Property and there have been none during the 90-day period preceding the date of this Consent and Waiver. The Landowner hereby acknowledges and agrees that, pursuant to Section 53326(b) of the Act, if fewer than 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District, the vote on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be by the landowners of the Community Facilities District and each landowner who is the owner of record at the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District. The Landowner hereby acknowledges and agrees that if, as anticipated, said public hearings are closed on the date hereof, said vote shall, pursuant to Section 53326(b) of the Act, be by the landowners of the Community Facilities District. 4. Request. The Landowner hereby requests that the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District be conducted using mailed or hand-delivered ballots, that such ballots be opened and canvassed at such election, and that the results of such election be certified at the same meeting of the City Council as the public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District, or as soon thereafter as possible. 5. Consent and Waiver. The Landowner hereby acknowledges and agrees that if the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District is held on July 17, 2006, said election would be held less than 90 days after the anticipated close of the July 17, 2006 public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District. The Landowner hereby acknowledges and agrees that the qualified electors of the Community Facilities District are entitled, pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). The Landowner hereby consents to the waiver of, and hereby waives, any time limit specified by Section 53326 of the Act and any om; Hll.'l:2f;O')~!(,:1 IllS WEST'2hOO<ilh71 ' 2 requirement pertammg to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), including, but not limited to, all notices with respect thereto (published, mailed or otherwise to be given), any voter qualification requirements, any time limitations, any requirements as to form or content of election materials, all publication requirements, all pre-election, election or voting procedures (other than the right to vote) and all canvass, recount and tie vote procedures. The Landowner hereby consents to the holding of said special election on July 17, 2006. The Landowner hereby acknowledges and agrees that the landowners of the Community Facilities District are entitled (a) pursuant to Section 53327(b) of the Act, to consent to the waiver of any impartial analysis, arguments or rebuttals, with respect to the special election on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and (b) pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any requirement pertaining to the conduct of said special election. The Landowner hereby acknowledges and agrees that said special election is to be held without the preparation of an impartial analysis and arguments and rebuttals, if any, as permitted by Section 53327(b) of the Act. The Landowner hereby consents to the waiver of, and hereby waives, the requirement in Section 53327(a) that there be prepared and included in the ballot material provided to each voter an impartial analysis pursuant to Section 9160, 9280 or 9500 of the California Elections Code, and arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the California Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the California Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of the California Elections Code, or pursuant to other provisions of law applicable to other special districts as appropriate. The Landowner hereby represents that it has obtained such information with respect to the consents and waivers contained herein as it has deemed necessary or appropriate. The Landowner hereby confirms and represents that it is fully informed with respect to such consents and waivers and fully understands the consequences thereof. The Landowner hereby waives any and all defects in notice or procedure in any proceedings to establish the Community Facilities District, to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District, or in the conduct of the election, whether known or unknown (other than, in the case of the election, the right to have ballots accurately counted), and the Landowner hereby represents that the election is being expedited pursuant to this Consent and Waiver, at the particular request of the Landowner. The Landowner further waives its right to make any protest or complaint or to undertake any legal action challenging the validity of the election. 6. Authorized Representative. The undersigned Robert N. Goodman, President of Resmark Equity Partners, LLC, has been duly authorized by the Landowner and possesses all authority necessary to execute this Consent and Waiver on behalf of the Landowner in connection with the election to be held by the City Council of the City under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special OIW \\.'L,'!:2fl('O~II1:1.11JS WFST2fiOOSI671? 3 tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and is the authorized representative of the Landowner authorized to execute ballots on behalf of the Landowner and to vote in the election referred to herein. The signature set forth opposite the name of such authorized representative is the genuine signature of such person: Name S i !mature Robert N. Goodman, President 7. Mailing Address. The address of the Landowner for receiving notices and ballots is: Resmark LLC, 10880 Wilshire Blvd., Suite 1420, Los Angeles, CA 90024, Altn: Mitch Goodman. This Consent and Waiver is dated as of July 17, 2006. ORA ASTORIA, LLC, A California limited liability company By: ORA Residential Investments I, L.P., A California limited partnership Its: Sole member By: ORA California II, LLC, A Delaware limited liability company Its: General partner By: Resmark Equity Partners, LLC, A Delaware limited liability company Its: Manager By: Robert N. Goodman President om: ":iC,..l:26r'O::I~:1.IIIS WF:ST2600'iln71'" 4 EXHIBIT A DESCRIPTION OF PROPERTY That certain real property situated in the County of Orange, State of California, described as follows: LOTS 103 THROUGH 136 INCLUSIVE, 181 THROUGH 211 INCLUSIVE, 216 THROUGH 241 INCLUSIVE, 246, 247, AND 248 OF TRACT NO. 16581, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. OMS lI'~"I:'(){)f1516:1,IIJS WEST"2600516712 A-I EXHIBIT B FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities proposed to be financed by the Community Facilities District 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. ows \\'1!.'1:2!l~)fI~I~"7I.IIJS WEST2600SI/171 2 B-1 CONSENT AND WAIVER CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 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 consent and 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; Property. This Consent and Waiver is submitted by MW Housing Partners, III, L.P. ("Landowner"), as the legal owner of approximately 12.Q acres of land described in Exhibit A attached hereto and made a part hereof (the "Property"). Pursuant to a petition of the Landowner, the City Council (the "City Council") of the City of Tustin (the "City") has commenced proceedings under the Act to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"). All of the Property is within the boundaries of the Community Facilities District. 2. Proceedings. The Landowner hereby acknowledges and agrees that the City Council has, pursuant to a petition of the Landowner, commenced proceedings pursuant to the Act to establish the Community Facilities District, to levy a special tax in the Community Facilities District to finance certain public facilities and services and to authorize special tax bonds for the Community Facilities District in an amount not to exceed $65,000,000. The public facilities proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit B attached hereto and the services proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit B attached hereto. The City Council has fixed July 17, 2006 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 where the City Council will conduct public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District. The Landowner hereby acknowledges and agrees that notices of the hearings were published by the City Clerk on July 6, 2006 in The Orange County Register, a newspaper of general circulation published in the area of the Community Facilities District. The Landowner hereby acknowledges and agrees that it had actual notice of the public hearings, that notice of such hearings has been given in accordance with the Act, that it waives any and all OMS H'"..t:2t(\Il?IA~lJS WFST2hOOSlh71 2 defects (if any) in such notice, and that it waives any rights it may have to make any protest or complaint or to undertake any legal action challenging the adequacy of such notice. 3. Ownership of Property; No Registered Voters; Landowner Election. The Landowner represents and warrants to the City that it is the legal owner of the fee interest in all of the Property and that no other person or entity is the legal owner of all or any portion of the fee interest in any of such Property. To the best of the Landowner's knowledge, there are no registered voters residing within the boundaries of the Property and there have been none during the 90-day period preceding the date of this Consent and Waiver. The Landowner hereby acknowledges and agrees that, pursuant to Section 53326(b) of the Act, if fewer than 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District, the vote on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be by the landowners of the Community Facilities District and each landowner who is the owner of record at the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District. The Landowner hereby acknowledges and agrees that if, as anticipated, said public hearings are closed on the date hereof, said vote shall, pursuant to Section 53326(b) of the Act, be by the landowners of the Community Facilities District. 4. Request. The Landowner hereby requests that the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District be conducted using mailed or hand-delivered ballots, that such ballots be opened and canvassed at such election, and that the results of such election be certified at the same meeting of the City Council as the public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District, or as soon thereafter as possible. 5. Consent and Waiver. The Landowner hereby acknowledges and agrees that if the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District is held on July 17, 2006, said election would be held less than 90 days after the anticipated close of the July 17, 2006 public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District. The Landowner hereby acknowledges and agrees that the qualified electors of the Community Facilities District are entitled, pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). The Landowner hereby consents to the waiver of, and hereby waives, any time limit specified by Section 53326 of the Act and any OM~ H.l<.t:2"M)~lt)7l.!1JS WFST260()')1671 2 2 requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), including, but not limited to, all notices with respect thereto (published, mailed or otherwise to be given), any voter qualification requirements, any time limitations, any requirements as to form or content of election materials, all publication requirements, all pre-election, election or voting procedures (other than the right to vote) and all canvass, recount and tie vote procedures. The Landowner hereby consents to the holding of said special election on July 17, 2006. The Landowner hereby acknowledges and agrees that the landowners of the Community Facilities District are entitled (a) pursuant to Section 53327(b) of the Act, to consent to the waiver of any impartial analysis, arguments or rebuttals, with respect to the special election on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and (b) pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any requirement pertaining to the conduct of said special election. The Landowner hereby acknowledges and agrees that said special election is to be held without the preparation of an impartial analysis and arguments and rebuttals, if any, as permitted by Section 53327(b) of the Act. The Landowner hereby consents to the waiver of, and hereby waives, the requirement in Section 53327(a) that there be prepared and included in the ballot material provided to each voter an impartial analysis pursuant to Section 9160, 9280 or 9500 of the California Elections Code, and arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the California Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the California Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of the California Elections Code, or pursuant to other provisions of law applicable to other special districts as appropriate. The Landowner hereby represents that it has obtained such information with respect to the consents and waivers contained herein as it has deemed necessary or appropriate. The Landowner hereby confirms and represents that it is fully informed with respect to such consents and waivers and fully understands the consequences thereof. The Landowner hereby waives any and all defects in notice or procedure in any proceedings to establish the Community Facilities District, to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District, or in the conduct of the election, whether known or unknown (other than, in the case of the election, the right to have ballots accurately counted), and the Landowner hereby represents that the election is being expedited pursuant to this Consent and Waiver, at the particular request of the Landowner. The Landowner further waives its right to make any protest or complaint or to undertake any legal action challenging the validity of the election. 6. Authorized Representative. The undersigned David Brentlinger, Senior Vice President, and Ann M. Richards, Assistant Vice President of Weyerhaeuser Realty Investors, Inc., have been duly authorized by the Landowner and possess all authority necessary to execute this Consent and Waiver on behalf of the Landowner in connection with the election to be held by the City Council ofthe City under the Act on the proposition to incur bonded indebtedness of OHS H'l!l:2tl'''::;1671.IlJS WFST2110051671 2 3 the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and are the authorized representatives of the Landowner authorized to execute ballots on behalf of the Landowner and to vote in the election referred to herein. The signature set forth opposite the name of each such authorized representative is the genuine signature of such person: Name Signature David Brentlinger, Senior Vice President Ann M. Richards, Assistant Vice President 7. Mailing Address. The address of the Landowner for receiving notices and ballots is: Weyerhauser Realty, 1301 Fifth Avenue, Suite 3100, Seattle, WA 98101, Attn: David Brentlinger. This Consent and Waiver is dated as of July 17, 2006. MW HOUSING PARTNERS, III, L.P., a California limited partnership By: MW Housing Management III, LLC, A California limited liability company Its: General Partner By: WRI CP Investments III, LLC, A Washington limited liability company Its: Co-Manager By: Weyerhaeuser Realty Investors, Inc., A Washington corporation Its: Manager By: Name: David Brentlinger Its: Senior Vice President By: Name: Ann M. Richards Its: Assistant Vice President OHS H':~t:2~"P~1(.;j'7I.llJS WFST2600S16712 4 EXHIBIT A DESCRIPTION OF PROPERTY That certain real property situated in the County of Orange, State of California, described as follows: LOTS I THROUGH 7 INCLUSIVE, 87 THROUGH 94 INCLUSIVE, 98 THROUGH 102 INCLUSIVE, 137 THROUGH 160 INCLUSIVE, 164 THROUGH +Will INCLUSIVE, 249 THROUGH 262 INCLUSIVE, 295, 299 THROUGH 306 INCLUSIVE, 310 THROUGH 314 INCLUSIVE. 317 THROUGH 324 INCLUSIVE. 328 THROUGH 330 INCLUSIVE, 334 THROUGH 340 INCLUSIVE, 343 THROUGH 345 INCLUSIVE, M+,347 AND 356 THROUGH 360 INCLUSIVE ."'ND 362 THROUGH 3€l1 INCLUSIVE, OF TRACT NO. 16581, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. and UNITS 106 THROUGH 114 INCLUSIVE. AS SHOWN AND DESCRIBED ON THAT CERTAIN CONDOMINIUM PLAN RECORDED MAY 22.2006. AS INSTRUMENT NO. 2006000343410. IN OFFICIAL RECORDS OF ORANGE COUNTY. CALIFORNIA ("CONDOMINIUM PLAN"). AFFECTING A PORTION OF LOT 315 AND ALL OF LOTS 316 AND 325 OF TRACT NO. 16581. AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE OF MISCELLANEOUS MAPS. RECORDS OF ORANGE COUNTY. CALIFORNIA. TOGETHER WITH AN UNDIVIDED 9/9THS INTEREST IN AND TO THE COMMON AREA. AS SHOWN AND DESCRIBED IN SAID CONDOMINIUM PLAN. and LETTERED LOTS AD THROUGH AL INCLUSIVE. BC. GA THROUGH GH INCLUSIVE AND HA THROUGH HO INCLUSIVE OF TRACT NO. 16581. IN THE CITY OF TUSTIN. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE. IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. and LOTS ;1425. THROUGH 35, 80 THROUGH 130, 13198. 110 THROUGH +41-;130. 134. ~ 147,148,160 THROUGH 172 INCLUSIVE. 180 THROUGH 194 INCLUSIVE. 197 THROUGH 210 INCLUSIVE, 231 THROUGH 236 INCLUSIVE AND 244 THROUGH 286 INCLUSIVE, OF TRACT NO. 16582, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP OHS U.l:'..t:2t{H'~I(J:l,IIJS WF:ST.2600<:;lh71 2 A-I RECORDED IN BOOK 874 PAGES 1 THROUGH 30 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. eFlS H'l!lt:2()\,n~I('1.1IJS WFST2h0051671 2 A-2 EXHIBIT B FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities proposed to be financed by the Community Facilities District 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. om: \\'I!:t:2W'/,<:16'"'1 IUS WFST2hOOSI671 2 B-1 CONSENT AND WAIVER CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) City Council City of Tustin 300 Centennial Way Tustin, California 92680 Members ofthe City Council: This is a consent and 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; Property. This Consent and Waiver is submitted by Lennar Homes of California, Inc. ("Landowner"), as the legal owner of approximately -.a..2 acres of land described in Exhibit A attached hereto and made a part hereof (the "Property"). Pursuant to a petition of the Landowner, the City Council (the "City Council") of the City of Tustin (the "City") has commenced proceedings under the Act to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"). All of the Property is within the boundaries of the Community Facilities District. 2. Proceedings. The Landowner hereby acknowledges and agrees that the City Council has, pursuant to a petition of the Landowner, commenced proceedings pursuant to the Act to establish the Community Facilities District, to levy a special tax in the Community Facilities District to finance certain public facilities and services and to authorize special tax bonds for the Community Facilities District in an amount not to exceed $65,000,000. The public facilities proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit B attached hereto and the services proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit B attached hereto. The City Council has fixed July 17, 2006 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 where the City Council will conduct public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District. The Landowner hereby acknowledges and agrees that notices of the hearings were published by the City Clerk on July 6, 2006 in The Orange County Register, a' newspaper of general circulation published in the area of the Community Facilities District. The Landowner hereby acknowledges and agrees that it had actual notice of the public hearings, that notice of such hearings has been given in accordance with the Act, that it waives any and all OMS H'~..t:26f'I\::I!1:1.1IJS WEST260051671 2 defects (if any) in such notice, and that it waives any rights it may have to make any protest or complaint or to undertake any legal action challenging the adequacy of such notice. 3. Ownership of Property; No Registered Voters; Landowner Election. The Landowner represents and warrants to the City that it is the legal owner of the fee interest in all of the Property and that no other person or entity is the legal owner of all or any portion of the fee interest in any of such Property. To the best of the Landowner's knowledge, there are no registered voters residing within the boundaries of the Property and there have been none during the 90-day period preceding the date of this Consent and Waiver. The Landowner hereby acknowledges and agrees that, pursuant to Section 53326(b) of the Act, if fewer than 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District, the vote on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be by the landowners of the Community Facilities District and each landowner who is the owner of record at the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District. The Landowner hereby acknowledges and agrees that if, as anticipated, said public hearings are closed on the date hereof, said vote shall, pursuant to Section 53326(b) of the Act, be by the landowners of the Community Facilities District. 4. Request. The Landowner hereby requests that the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District be conducted using mailed or hand-delivered ballots, that such ballots be opened and canvassed at such election, and that the results of such election be certified at the same meeting of the City Council as the public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District, or as soon thereafter as possible. 5. Consent and Waiver. The Landowner hereby acknowledges and agrees that if the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District is held on July 17, 2006, said election would be held less than 90 days after the anticipated close of the July 17, 2006 public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District. The Landowner hereby acknowledges and agrees that the qualified electors of the Community Facilities District are entitled, pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). The Landowner hereby consents to the waiver of, and hereby waives, any time limit specified by Section 53326 of the Act and any OilS \H!::,,(:1fJ("'?16:1.IIJS WFST260051671 2 2 requirement pertallllllg to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), including, but not limited to, all notices with respect thereto (published, mailed or otherwise to be given), any voter qualification requirements, any time limitations, any requirements as to form or content of election materials, all publication requirements, all pre-election, election or voting procedures (other than the right to vote) and all canvass, recount and tie vote procedures. The Landowner hereby consents to the holding of said special election on July 17, 2006. The Landowner hereby acknowledges and agrees that the landowners of the Community Facilities District are entitled (a) pursuant to Section 53327(b) of the Act, to consent to the waiver of any impartial analysis, arguments or rebuttals, with respect to the special election on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and (b) pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any requirement pertaining to the conduct of said special election. The Landowner hereby acknowledges and agrees that said special election is to be held without the preparation of an impartial analysis and arguments and rebuttals, if any, as permitted by Section 53327(b) of the Act. The Landowner hereby consents to the waiver of, and hereby waives, the requirement in Section 53327(a) that there be prepared and included in the ballot material provided to each voter an impartial analysis pursuant to Section 9160, 9280 or 9500 of the California Elections Code, and arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the California Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the California Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of the California Elections Code, or pursuant to other provisions of law applicable to other special districts as appropriate. The Landowner hereby represents that it has obtained such information with respect to the consents and waivers contained herein as it has deemed necessary or appropriate. The Landowner hereby confirms and represents that it is fully informed with respect to such consents and waivers and fully understands the consequences thereof. The Landowner hereby waives any and all defects III notice or procedure in any proceedings to establish the Community Facilities District, to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District, or in the conduct of the election, whether known or unknown (other than, in the case of the election, the right to have ballots accurately counted), and the Landowner hereby represents that the election is being expedited pursuant to this Consent and Waiver, at the particular request of the Landowner. The Landowner further waives its right to make any protest or complaint or to undertake any legal action challenging the validity of the election. 6. Authorized Representative. The undersigned John Baayoun, Vice President of the Landowner, has been duly authorized by the Landowner and possesses all authority necessary to execute this Consent and Waiver on behalf of the Landowner in connection with the election to be held by the City Council of the City under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community ow;;; \\II:',':2h(\IO~lfJ71.1IJS WFST"2h0011h71 ') 3 Facilities District and to establish an appropriations limit for the Community Facilities District, and is the authorized representative of the Landowner authorized to execute ballots on behalf of the Landowner and to vote in the election referred to herein. The signature set forth opposite the name of such authorized representative is the genuine signature of such person: Name Signature John Baayoun, Vice President 7. Mailing Address. The address of the Landowner for receiving notices and ballots is: Lennar - Land Division, Project Management, 25 Enterprise, Suite 500, Aliso Viejo, CA 92656, Attn: Marsha Santry. This Consent and Waiver is dated as of July 17,2006. LENNAR HOMES OF CALIFORNIA, INC., a California corporation By: Name: John Baayoun Title: Vice President Ol-lS "'1!..l::;6(~n':;:16:1.11JS WEST2hOOSlh71 2 4 EXHIBIT A DESCRIPTION OF PROPERTY That certain real property situated in the County of Orange, State of California, described as follows: PARCEL I: LOTS 95, 96, 97, 161, 162, 163, 176. In 178, 179, 180,294,296,297,298,307, 'w&308, 309, 362, 363 AND ~364 OF TRACT NO. 16581, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE. IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. PARCEL 2: UNIT 1. 2 AND 3. AS SHOWN AND DESCRIBED ON THAT CERTAIN CONDOMINIUM PLAN RECORDED MAY 22. 2006. AS INSTRUMENT NO. 2006000343409. AND AMENDED BY A DOCUMENT ENTITLED "AMENDMENT TO CONDOMINIUM PLAN FOR MERIWETHER IN COLUMBUS SOUARE (MODEL PHASE-UNITS I TO 3 OF LOT 315. TRACT NO. 16581)" RECORDED JlJNE 19. 2006 AS INSTRUMENT NO. 2006000409780. BOTH OF OFFICIAL RECORDS OF ORANGE COUNTY. CALIFORNIA ("CONDOMINIUM PLAN"), AFFECTING A PORTION OF LOT 315 OF TRACT NO. 16581. AS SHOWN ON THE MAP RECORDED IN BOOK 877 PAGES 33 THROUGH 50 INCLUSIVE OF MISCELLANEOUS MAPS. RECORDS OF ORANGE COUNTY. CALIFORNIA. TOGETHER WITH AN UNDIVIDED 3/3RDS INTEREST IN AND TO THE COMMON AREA. AS SHOWN AND DESCRIBED IN SAID CONDOMINIUM PLAN. PARCEL 3: UNITS 4 THROUGH 15 INCLUSIVE. AS SHOWN AND DESCRIBED ON THAT CERTAIN CONDOMINIUM PLAN RECORDED MAY 22. 2006. AS INSTRUMENT NO. 2006000343408. IN OFFICIAL RECORDS OF ORANGE COUNTY. CALIFORNIA ("CONDOMINIUM PLAN"), AFFECTING LOTS 326 AND 327 OF TRACT NO. 16581. AS SHOWN ON THE MAP RECORDED IN BOOK 871. PAGES 33 THROUGH 50 INCLUSIVE OF MISCELLANEOUS MAPS. RECORDS OF ORANGE COUNTY. CALIFORNIA. TOGETHER WITH AN UNDIVIDED 12/12THS INTEREST IN AND TO THE COMMON AREA. AS SHOWN AND DESCRIBED IN SAID CONDOMINIUM PLAN. and LOTS 99 THROUGH 109 INCLUSIVE. 131 THROUGH 133 INCLUSIVE, ~136 THROUGH 146 INCLUSIVE AND 149 THROUGH 159 INCLUSIVE, OF TRACT NO. 16582, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF OMS u'...(:26('O~I€J71.11JS WFST2600'ilh71 2 A-I CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 874 PAGES I THROUGH 30 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. OHS Ul,!..!:2(fY'.<:IC"I.llJS WFST?60051671 2 A-2 EXHIBIT B FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities proposed to be financed by the Community Facilities District 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. OHS "'i<.:l:2tl'I\<:lll:l.1IJS WEST 26()OSlh71 2 B-1 CONSENT AND WAIVER CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 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 consent and 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: I. Landowner; Property. This Consent and Waiver is submitted by KB Homes Coastal, Inc. ("Landowner"), as the legal owner of approximately 4.1 acres of land described in Exhibit A attached hereto and made a part hereof (the "Property"). Pursuant to a petition of the Landowner, the City Council (the "City Council") of the City of Tustin (the "City") has commenced proceedings under the Act to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"). All of the Property is within the boundaries of the Community Facilities District. 2. Proceedings. The Landowner hereby acknowledges and agrees that the City Council has, pursuant to a petition of the Landowner, commenced proceedings pursuant to the Act to establish the Community Facilities District, to levy a special tax in the Community Facilities District to finance certain public facilities and services and to authorize special tax bonds for the Community Facilities District in an amount not to exceed $65,000,000. The public facilities proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit B attached hereto and the services proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit B attached hereto. The City Council has fixed July 17, 2006 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 where the City Council will conduct public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District. The Landowner hereby acknowledges and agrees that notices of the hearings were published by the City Clerk on July 6, 2006 in The Orange County Register, a newspaper of general circulation published in the area of the Community Facilities District. The Landowner hereby acknowledges and agrees that it had actual notice of the public hearings, that notice of such hearings has been given in accordance with the Act, that it waives any and all 0W~ \\'I!.t:2!:lf'~)~lh?1,I{jS WFST260051671 2 defects (if any) in such notice, and that it waives any rights it may have to make any protest or complaint or to undertake any legal action challenging the adequacy of such notice. 3. Ownership of Property; No Registered Voters; Landowner Election. The Landowner represents and warrants to the City that it is the legal owner of the fee interest in all of the Property and that no other person or entity is the legal owner of all or any portion of the fee interest in any of such Property. To the best of the Landowner's knowledge, there are no registered voters residing within the boundaries of the Property and there have been none during the 90-day period preceding the date of this Consent and Waiver. The Landowner hereby acknowledges and agrees that, pursuant to Section 53326(b) of the Act, if fewer than 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District, the vote on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be by the landowners of the Community Facilities District and each landowner who is the owner of record at the close of said public hearings, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District. The Landowner hereby acknowledges and agrees that if, as anticipated, said public hearings are closed on the date hereof, said vote shall, pursuant to Section 53326(b) of the Act, be by the landowners of the Community Facilities District. 4. Request. The Landowner hereby requests that the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District be conducted using mailed or hand-delivered ballots, that such ballots be opened and canvassed at such election, and that the results of such election be certified at the same meeting of the City Council as the public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District, or as soon thereafter as possible. 5. Consent and Waiver. The Landowner hereby acknowledges and agrees that if the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District is held on July 17, 2006, said election would be held less than 90 days after the anticipated close of the July 17, 2006 public hearings on. the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District. The Landowner hereby acknowledges and agrees that the qualified electors of the Community Facilities District are entitled, pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). The Landowner hereby consents to the waiver of, and hereby waives, any time limit specified by Section 53326 of the Act and any OHS \\'i!:t:21l1J1l.'lh-I,llJS WF:ST'2600')lh71 2 2 requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), including, but not limited to, all notices with respect thereto (published, mailed or otherwise to be given), any voter qualification requirements, any time limitations, any requirements as to form or content of election materials, all publication requirements, all pre-election, election or voting procedures (other than the right to vote) and all canvass, recount and tie vote procedures. The Landowner hereby consents to the holding of said special election on July 17,2006. The Landowner hereby acknowledges and agrees that the landowners of the Community Facilities District are entitled (a) pursuant to Section 53327(b) of the Act, to consent to the waiver of any impartial analysis, arguments or rebuttals, with respect to the special election on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and (b) pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any requirement pertaining to the conduct of said special election. The Landowner hereby acknowledges and agrees that said special election is to be held without the preparation of an impartial analysis and arguments and rebuttals, if any, as permitted by Section 53327(b) of the Act. The Landowner hereby consents to the waiver of, and hereby waives, the requirement in Section 53327(a) that there be prepared and included in the ballot material provided to each voter an impartial analysis pursuant to Section 9160, 9280 or 9500 of the California Elections Code, and arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the California Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the California Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of the California Elections Code, or pursuant to other provisions of law applicable to other special districts as appropriate. The Landowner hereby represents that it has obtained such information with respect to the consents and waivers contained herein as it has deemed necessary or appropriate. The Landowner hereby confirms and represents that it is fully informed with respect to such consents and waivers and fully understands the consequences thereof. The Landowner hereby waives any and all defects in notice or procedure in any proceedings to establish the Community Facilities District, to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District, or in the conduct of the election, whether known or unknown (other than, in the case of the election, the right to have ballots accurately counted), and the Landowner hereby represents that the election is being expedited pursuant to this Consent and Waiver, at the particular request of the Landowner. The Landowner further waives its right to make any protest or complaint or to undertake any legal action challenging the validity ofthe election. 6. Authorized Representative. The undersigned Jay L. Moss, Regional General Manager, and David L. Hendryx, Executive Vice President of the Landowner, have been duly authorized by the Landowner and possess all authority necessary to execute this Consent and Waiver on behalf of the Landowner in connection with the election to be held by the City Council of the City under the Act on the proposition to incur bonded indebtedness of the Oll~' \\rli:,-'t.::;~f''l~1!l71.11JS WEST 2600SIh71 2 3 Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and are the authorized representatives of the Landowner authorized to execute ballots on behalf of the Landowner and to vote in the election referred to herein. The signature set forth opposite the name of each such authorized representative is the genuine signature of such person: Name Signature Jay L. Moss, Regional General Manager David L. Hendryx, Executive Vice President 7. Mailing Address. The address of the Landowner for receiving notices and ballots is: KB Homes, 3 Jenner, Suite 100, Irvine, CA 92618, Altn: Eric Scheck. This Consent and Waiver is dated as of July 17,2006. KB HOMES COASTAL, INC., a California corporation By: Name: Jay L. Moss Title: Regional General Manager By: Name: David L. Hendryx Title: Executive Vice President C)WSH't,>:T2(;('P51€l71.lllS WEST2h0051h71 2 4 EXHIBIT A DESCRIPTION OF PROPERTY That certain real property situated in the County of Orange, State of California, described as follows: LOTS 24. 173 THROUGH 179 INCLUSIVE. 195. 196 AND 211 THROUGH 230 INCLUSIVE, OF TRACT NO. 16582, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 874 PAGES I THROUGH 30 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. om' H'i!_'t:~fl\l).~1€171.1lJS WFST2hOO"ilh71 2 A-I EXHIBIT B FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities proposed to be financed by the Community Facilities District 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. OI-lS "'1!:t:2H{)'1':::I(i71,llJS WEST-200n')]!)?1 2 B-1 CONSENT AND WAIVER CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 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 consent and waiver with respect to certain procedural matters under the Mello- Roos Community Facilities Act of 1982 (the "Acf'), and the undersigned hereby states as follows: 1. Landowner; Property. This Consent and Waiver is submitted by ORA Ciara, LLC ("Landowner"), as the legal owner of approximately -.8J) acres of land described in Exhibit A attached hereto and made a part hereof (the "Property"). Pursuant to a petition of the Landowner, the City Council (the "City Council") of the City of Tustin (the "City") has commenced proceedings under the Act to establish a community facilities district proposed to be named City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) (the "Community Facilities District"). All of the Property is within the boundaries of the Community Facilities District. 2. Proceedings. The Landowner hereby acknowledges and agrees that the City Council has, pursuant to a petition of the Landowner, commenced proceedings pursuant to the Act to establish the Community Facilities District, to levy a special tax in the Community Facilities District to finance certain public facilities and services and to authorize special tax bonds for the Community Facilities District in an amount not to exceed $65,000,000. The public facilities proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Facilities" on Exhibit B attached hereto and the services proposed to be financed by the Community Facilities District pursuant to the Act are described under the caption "Services" on Exhibit B attached hereto. The City Council has fixed July 17,2006 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 where the City Council will conduct public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District. The Landowner hereby acknowledges and agrees that notices of the hearings were published by the City Clerk on July 6, 2006 in The Orange County Register, a newspaper of general circulation published in the area of the Community Facilities District. The Landowner hereby acknowledges and agrees that it had actual notice of the public hearings, that notice of such hearings has been given in accordance with the Act, that it waives any and all OWS nrl,'l:~hl\'I<:16'I.IIJS WFST2fl00516712 defects (if any) in such notice, and that it waives any rights it may have to make any protest or complaint or to undertake any legal action chal1enging the adequacy of such notice. 3. Ownership of Property; No Registered Voters; Landowner Election. The Landowner represents and warrants to the City that it is the legal owner of the fee interest in all of the Property and that no other person or entity is the legal owner of al1 or any portion of the fee interest in any of such Property. To the best of the Landowner's knowledge, there are no registered voters residing within the boundaries of the Property and there have been none during the 90-day period preceding the date of this Consent and Waiver. The Landowner hereby acknowledges and agrees that, pursuant to Section 53326(b) of the Act, if fewer than 12 persons have been registered to vote within the territory of the Community Facilities District for each of the 90 days preceding the close of the public hearings on the establishment of the Community Facilities District and the proposed debt issue of the Community Facilities District, the vote on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District shall be by the landowners of the Community Facilities District and each landowner who is the owner of record at the close of said public hearings, or the authorized representative thereof, shal1 have one vote for each acre or portion of an acre of land that he or she owns within the Community Facilities District. The Landowner hereby acknowledges and agrees that if, as anticipated, said public hearings are closed on the date hereot: said vote shall, pursuant to Section 53326(b) of the Act, be by the landowners of the Community Facilities District. 4. Request. The Landowner hereby requests that the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District be conducted using mailed or hand-delivered ballots, that such bal10ts be opened and canvassed at such election, and that the results of such election be certified at the same meeting of the City Council as the public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District, or as soon thereafter as possible. 5. Consent and Waiver. The Landowner hereby acknowledges and agrees that if the special election to be held under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District is held on July 17, 2006, said election would be held less than 90 days after the anticipated close of the July 17, 2006 public hearings on the establishment of the Community Facilities District and the proposed issuance of bonded indebtedness of the Community Facilities District. The Landowner hereby acknowledges and agrees that the qualified electors of the Community Facilities District are entitled, pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any time limit specified by Section 53326 of the Act and any requirement pertaining to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act). The Landowner hereby consents to the waiver of, and hereby waives, any time limit specified by Section 53326 of the Act and any OHS "'L,'(:2MI/''<:I(,'"'1 IllS WEST 260051671 2 2 requirement pertammg to the conduct of said special election, including any time limit or requirement applicable to an election pursuant to Article 5, Chapter 2.5, Division 3, Title 5 of the Act (commencing with Section 53345 of the Act), including, but not limited to, all notices with respect thereto (published, mailed or otherwise to be given), any voter qualification requirements, any time limitations, any requirements as to form or content of election materials, all publication requirements, all pre-election, election or voting procedures (other than the right to vote) and all canvass, recount and tie vote procedures. The Landowner hereby consents to the holding of said special election on July 17, 2006. The Landowner hereby acknowledges and agrees that the landowners of the Community Facilities District are entitled (a) pursuant to Section 53327(b) of the Act, to consent to the waiver of any impartial analysis, arguments or rebuttals, with respect to the special election on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special tax in the Community Facilities District and to establish an appropriations limit for the Community Facilities District, and (b) pursuant to Section 53326 of the Act, with the concurrence of the election official for said special election, to consent to the waiver of any requirement pertaining to the conduct of said special election. The Landowner hereby acknowledges and agrees that said special election is to be held without the preparation of an impartial analysis and arguments and rebuttals, if any, as permitted by Section 53327(b) of the Act. The Landowner hereby consents to the waiver of, and hereby waives, the requirement in Section 53327(a) that there be prepared and included in the ballot material provided to each voter an impartial analysis pursuant to Section 9160, 9280 or 9500 of the California Elections Code, and arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the California Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the California Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of the California Elections Code, or pursuant to other provisions of law applicable to other special districts as appropriate. The Landowner hereby represents that it has obtained such information with respect to the consents and waivers contained herein as it has deemed necessary or appropriate. The Landowner hereby confirms and represents that it is fully informed with respect to such consents and waivers and fully understands the consequences thereof. The Landowner hereby waives any and all defects in notice or procedure in any proceedings to establish the Community Facilities District, to levy special taxes in the Community Facilities District and to authorize special tax bonds for the Community Facilities District, or in the conduct of the election, whether known or unknown (other than, in the case of the election, the right to have ballots accurately counted), and the Landowner hereby represents that the election is being expedited pursuant to this Consent and Waiver, at the particular request of the Landowner. The Landowner further waives its right to make any protest or complaint or to undertake any legal action challenging the validity of the election. 6. Authorized Representative. The undersigned Robert N. Goodman, President of Resmark Equity Partners, LLC, has been duly authorized by the Landowner and possesses all authority necessary to execute this Consent and Waiver on behalf of the Landowner in connection with the election to be held by the City Council of the City under the Act on the proposition to incur bonded indebtedness of the Community Facilities District, to levy a special OHE \\1(.~.t:"!/Hl51t'7I.lIJS WEST2hOOSlh71 2 3 tax in the Community Facilities District and to establish an appropnatJOns limit for the Community Facilities District, and is the authorized representative of the Landowner authorized to execute ballots on behalf of the Landowner and to vote in the election referred to herein. The signature set forth opposite the name of such authorized representative is the genuine signature of such person: Name Signature Robert N. Goodman, President 7. Mailing Address. The address of the Landowner for receiving notices and ballots is: Resmark LLC, 10880 Wilshire Blvd., Suite 1420, Los Angeles, CA 90024, Attn: Mitch Goodman. This Consent and Waiver is dated as of July 17, 2006. ORA ClARA, LLC, A California limited liability company By: ORA Residential Investments I, L.P., A California limited partnership Its: Sole member By: ORA California II, LLC, A Delaware limited liability company Its: General partner By: Resmark Equity Partners, LLC, A Delaware limited liability company Its: Manager By: Robert N. Goodman President om: U!l',l:~fiO""16:1.llJS WFST'2600l;j1671 2 4 EXHIBIT A DESCRIPTION OF PROPERTY That certain real property situated in the County of Orange, State of California, described as follows: LOTS 1 THROUGH 23 INCLUSIVE, 36 THROUGH 53 INCLUSIVE AND 57 THROUGH +968 INCLUSIVE, OF TRACT NO. 16582, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED IN BOOK 874 PAGES 1 THROUGH 30 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. OMS ufi!'t:~MY\.<:16:1.ltJS WFST'2600,,)h71 2 A-I EXHIBIT B FACILITIES AND SERVICES TO BE FINANCED Facilities The types of facilities proposed to be financed by the Community Facilities District 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. OH~' U'c,,!.'"l/f'{\:'I4i++IJS WF:ST2hOO'ilft71 2 B-1 RESOLUTION NO. 06-93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN DECLARING ITS OFFICIAL INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS WHEREAS, the City Council (the "City Council") of the City of Tustin (the "City) has this date adopted its Resolution 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" for the purpose of financing certain public facilities (the "Project") as further provided in said Resolution; WHEREAS, the City expects to pay certain expenditures (the "Reimbursement Expenditures") in connection with the Project prior to the issuance of tax-exempt indebtedness for the purpose of financing costs associated with the Project on a long-term basis; WHEREAS, the City reasonably expects that the tax-exempt debt obligations in an amount not to exceed $65,000,000 will be issued and that certain of the proceeds of such debt obligations will be used to reimburse the City for the Reimbursement Expenditures incurred in connection with the Project; and WHEREAS, Section 1.150-2 of the Treasury Regulations requires the City to declare its reasonable official intent to reimburse prior expenditures for the Project with proceeds of a subsequent tax-exempt borrowing; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: Section 1. The City Council hereby finds and determines that the foregoing recitals are true and correct. Section 2. This declaration is made solely for purposes of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This declaration does not bind the City to make any expenditures, to incur or cause to be incurred any indebtedness, or to proceed with the Project. Section 3. The City Council hereby declares its official intent to use proceeds of indebtedness to reimburse itself for Reimbursement Expenditures. Section 4. 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 5. This declaration shall take effect from and after its adoption. OHS WEST .260052054.1 APPROVED and ADOPTED by the City Council of the City of Tustin on July 17, 2006. Doug Davert, Mayor ATTEST: Pamela Stoker, City Clerk -2- OHS WEST .260052054.1 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 July 17, 2006, 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: ,2006 Pamela Stoker, City Clerk OHS WEST.260052054.! Document comparison done by Workshare Professional on Tuesday, July 11, 2006 6:05:12 PM Document 1 Document 2 Renderin set interwovenSite:IILADMS01 IUS WEST/260051671/1 interwovenSite:/lLADMSO 1 IUS WEST 1260051671/2 standard Insertion DeletioR !\'Io"cd !i'0il1 Moved to Style chan e Format chan e A4+\'~;d i.k+l-t~HBft Count 89 67 o o o o 156