Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  25-000641

 

MEETING DATE:

09/23/25

legal entity taking action:

Board of Supervisors and Community Facilities District No. 2023-1

board of supervisors district(s):

5

SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

Louis McClure (714) 834-5999 

 

 

Christine Gardea (714) 834-3014

 

 

Subject:  Amendment to Agreements for Community Facilities District 23-1

 

     ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost:  See Financial Impact Section

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:           

Sole Source:   N/A

    Current Fiscal Year Revenue: N/A

   Funding Source:    Community Facilities District: 100%

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         10/31/2023 #20, 4/11/2023 #29, 11/8/2004 #1

 

RECOMMENDED ACTION(S):

 

 

Acting as the Board of Supervisors and as the legislative body of the Community Facilities District No. 2023-1 of the County of Orange (Rienda Phase 2B):

1.

Adopt resolution approving the first amendment to the Series A of 2023 Special Tax Bonds Acquisition, Funding and Disclosure Agreement and authorize County Executive Officer or designee to execute the amendment.

 

Acting as the Board of Supervisors:

2.

Adopt resolution approving the first amendment to Joint Community Facilities Agreement between the County, RMV PA 3 Development, LLC and Santa Margarita Water District and authorize County Executive Officer or designee to execute the amendment.

 

 

 

 

SUMMARY:

 

Approval of amendments to the Acquisition, Funding and Disclosure Agreement and Joint Community Facilities Agreement will reallocate funds available for the purpose of financing projects and improvements within the Community Facilities District.

 

 

 

BACKGROUND INFORMATION:

 

On November 8, 2004, the Board of Supervisors (Board) approved the Ranch Plan Development Agreement (Development Agreement) between the County of Orange and RMV PA3 Development, LLC (Developer) allowing up to 14,000 dwelling units, as well as retail, office, and recreational uses within a development area of approximately 7,700 acres with approximately 15,000 acres retained in open space.  The Developer proposed the formation of one or more community facilities districts (CFD) and financing of the public facilities and projects that are required pursuant to the Development Agreement, to be completed in phases, as development occurs.

 

Community Facilities District 2023-1 (CFD 2023-1) located in the unincorporated area of the County of Orange (County) was established by the Board of Supervisors (Board) on April 11, 2023, pursuant to Resolution No. 23-043. 

 

Acquisition, Funding and Disclosure Agreement

The Acquisition, Funding and Disclosure Agreement (AFDA) for CFD 2023-1 was approved by the Board on October 31, 2023.  The AFDA contains an itemized list of the public facilities to be financed and their budget amounts (estimated costs). The public facilities financed include roadways and roadways improvements, tunnels, regional hiking and biking trails, storm drains and basins, water and wastewater facilities, wet and dry utilities, bridges and pedestrian bridges, parks, traffic signals, school sites, school facilities and equipment, facilities and equipment relating to fire protection and suppression, sheriff’s substations and equipment and library facilities and equipment, and related infrastructure improvements, both onsite and offsite, and all appurtenances and appurtenant work. The County Executive Office (CEO) is requesting that the AFDA be amended to include language to allow interest earnings realized in one account of the Acquisition and Construction Fund be reallocated to another account within the Acquisition and Construction Fund upon mutual consent of the County and the Developer. The reallocation will provide for the reimbursement of project facilities and the timely drawdown of bond proceeds as required by the Internal Revenue Service.

 

Joint Community Facilities Agreement

The Joint Community Facilities Agreement (JCFA) for CFD 2023-1 with Santa Margarita Water District (SMWD) and Orange County Fire Authority were approved by the Board on April 11, 2023.

 

The JCFA with SMWD was established for financing certain water facilities required under the Development Agreement. CEO is requesting that the JCFA with SMWD be amended to update the eligible water facilities listed on Exhibit A of the original JCFA with SMWD to replace the “Zone B Pump Station” project with the “Chiquita Water Reclamation Plant” project to provide reimbursement for newly eligible projects and to disburse bond proceeds in a timely manner. The new eligible project will be funded from moving funds from one project that is not yet ready for reimbursement. The SMWD Board of Directors approved a resolution to amend to the JCFA at its August 6, 2025, meeting.

 

 

 

FINANCIAL IMPACT:

 

Approval of the amendments will allow for the reallocation of interest earnings for projects which provides flexibility for the reimbursement for CFD 2023-1 projects and the timely drawdown of bond proceeds required by the Internal Revenue Service. There are no additional costs related to this item.

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A - Resolution for the Board
Attachment B - Resolution for the Legislative Body of the CFD
Attachment C - Amendment No. 1 to AFDA for CFD 2023-1
Attachment D - Original AFDA for CFD 2023-1
Attachment E - Amendment No. 1 to SMWD JCFA for CFD 2023-1
Attachment F - Original SMWD JCFA for CFD 2023-1
Attachment G - Schedule of proposed line item changes