Agdapkt 2010-12-06 clsd and regular

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� 7.0 Page 2 1. Fiscal Agent Agreement 2. Acquisition and Reimbursement Agreement 3. Continuing Disclosure Agreement 4. Bond Purchase Agreement lf Council authorizes the sale of bonds, the underwriter will market the bonds during December with the goal of arranging pricing commitments from the bond purchasers during the first week of February. Future Actions The bond safe presented for approval tonight is the first of three proposed bond sales. The dates of subsequent bond sales will depend on the pace at which One Marina is built and the ability of the real estate to support more Mello-Roos bonds. Future bond sales are currently planned to take place in late 2011 and in 2014. ALTERNATIVES The Council is under no obligation to adopt the resolution before it tonight. If the Council declines to adopt the resolution the developer of the One Marina Project will still be required to construct all of the public infrastructure stipulated in the Development Agreement and dedicate it to the City pursuant to the terms of the Development Agreement. If bonds are not sold, a deposit previously paid by the developer will pay for all costs associated with creating the District. FISCAL IMPACT If bonds are sold, the City will reimburse the developer's deposit from the proceeds of the bonds. In addition, the City will incur periodic bond trustee fees, County tax collection fees, annual rebate calculation fees, audit expenses and direct and indirect City administrative costs associated with classifying properties within the District, calculating the annual special tax levies for taxable parcels within the District, and preparing and transmitting to the County a list of special tax levies to be placed on the secured tax roll. These costs wifl be recovered from the praperty owner or owners from the proceeds of the annual special taxes collected by the County. Based on its experience with prior community facilities districts and bids obtained in connection with this District, the City has established an annual administrative expense budget of $25,000 (to increase at 2% annualfy) that will be funded from special taxes prior to the payment of debt service on the bonds. The City is authorized to bill the District annually for expenses that exceed this budget after annual debt service on the bonds has been satisfied. As special taxes wifl be levied in an amount equal to approximately 110% of debt service, it is expected that there will be sufficient special tax proceeds to pay all annual administrative expenses. In the event there are material tax delinquencies and the amount of special taxes collected is insufficient to pay debt service, the City could incur unreimbursed administrative expenses. The City is authorized under the Act to institute foreclosure proceedings to recover delinquent special taxes and to recover administrative expenses, interest, and penalties from foreclosure proceeds.