Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  10-001660

 

MEETING DATE:

01/11/11

legal entity taking action:

Communities Facilities Districts

board of supervisors district(s):

5

SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

Laurie Sachar, 834-6009 

 

 

Colleen Clark, 834-5969

 

 

Subject:  CFD No. 88-1 (Aliso Viejo) AFDA Amendment

 

      ceo Concur

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

    Staffing Impact: No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

    Funding Source: N/A

 

    Prior Board Action: Minute Order dated September 25, 2007, Approval of AFDA #2 of 1992, Amendment Number 7

 

RECOMMENDED ACTION(S):

 

Acting as the legislative body of Community Facilities District (CFD) No. 88-1 (Aliso Viejo), approve Amendment Number 8 to the Acquisition, Funding and Disclosure Agreement Number 2 of 1992 for CFD No. 88-1.

 

 

 

 

SUMMARY:

 

The County Executive Office requests that the Board, acting as the legislative body of Community Facilities District (CFD) No. 88-1 (Aliso Viejo), approve Amendment Number 8 to the Acquisition, Funding and Disclosure Agreement Number 2 of 1992 for CFD No. 88-1.

 

 

 

BACKGROUND INFORMATION:

 

Community Facilities District (CFD) No. 88-1 (Aliso Viejo)

 

On May 18, 1988, your Board, as the legislative body, established CFD No. 88-1 (Aliso Viejo) and authorized potential bond debt in the total amount of $270 million.  As part of the district formation process, the Board also approved the Engineer's Report for the public facilities and improvements to be financed and the project budget amounts.  These projects included, but are not limited to, roadways, bridges, storm drains, traffic signals, electric facilities, a sheriff substation, a library, completion of a fire station and related equipment.

 

This CFD consists of approximately 2,990 gross acres of land in the Aliso Viejo planned community located in the southeastern portion of the County.  At the time of CFD formation, the major property owner was the Mission Viejo Company, which has been succeeded by merger and is now Shea Homes Limited Partnership (Shea).  The financings of the public projects are described as follows: 

 

1.  On October 18, 1988, this CFD issued the Series A of 1988 Special Tax Bonds (1988 Bonds) in the amount of $93.7 million to fund a portion of the aforementioned public projects included in the Engineer's Report.  The Acquisition, Funding and Disclosure Agreement (AFDA) Number 1 for this bond issue established the requirements for the reimbursement of bond proceeds to the landowner/developer for the construction of the public projects. 

 

2.  On July 28, 1992, this CFD issued the Series A of 1992 Special Tax Bonds (1992 Bonds) in the amount of $119.3 million which were issued as parity debt to the 1988 Bonds.  During this period, the Board had approved the AFDA Number 2 of 1992 for use of proceeds of the 1992 Bonds, which is separate from the AFDA for the 1988 Bonds.   At the point of bond issuance, the construction fund totaled approximately $95 million, which continues to be used to fund a portion of the public projects included in the Engineer's Report.  The following are the refinancings of the 1988 Bonds and 1992 Bonds:

 

a)  In 1994, the 1988 Bonds and 1992 Bonds were jointly refunded by the 1994 Series A Bonds (Senior) in the amount of $166.5 million and 1994 Series B Bonds (Junior) in the amount of $57 million. 

 

b)  In 1998, including a cash contribution to the financing, the 1994 Series B Bonds (Junior) were refunded by the 1998 Series B Bonds (Junior) in the amount of $29 million.

 

c)  In 2003, a portion of the 1994 Series A Bonds (Senior) was refunded by the 2003 Series A Bonds (Senior) in the amount of $49.8 million. 

 

As a result of these three refinancings, the current outstanding principal balance for all bond issues for this CFD is approximately:

 

1994 Series A (Senior)                       $12.5 million

2003 Series A (Senior)                         45.2

1998 Series B (Junior)                             3.9

                                                          $61.6 million

               

Amendment Number 8 to AFDA Number 2 of 1992

 

Presently the available balance of construction bond proceeds for this CFD is approximately $5.1 million.  Construction is complete on the public projects described below.  During the past several years, Shea has worked closely with staff of the City of Aliso Viejo which is the local planning agency. 

 

At this time, Shea is requesting the reallocation of a portion of existing funds within Exhibit B of AFDA Number 2 of 1992 to reimburse the costs of traffic signals.  These projects were required by the City, and consist of:  1) a traffic signal at Enterprise and Summit Ridge; and 2) a traffic signal at Aliso Viejo Parkway and Parker.  These projects were necessitated by safety concerns based on increasing traffic volume and patterns which developed over time.  Construction of these traffic signals have been completed, and reimbursement is pending.     

 

Attached is the proposed Amendment Number 8 which will replace Exhibit B of AFDA Number 2 of 1992.  The individual project budget amounts affected by the revised Exhibit B are listed below.  All other projects in Exhibit B will remain unchanged. 

 

Exhibit B Traffic Signals and Amended Project Budget Amounts:

 

Project                                         Current Amount              Amount (+ or -)             Revised Amount   

 

B.17.  Enterprise @                          $200,000                       +$52,257                      $252,257

PA 40

 

This traffic signal at Enterprise and Summit Ridge was needed based on increasing traffic volume developed over time.  Material costs have increased since the initial project cost estimate.   

 

B.19.  Laguna Hills Dr.                      $275,000                       +$66,768                      $341,768

@ PA 40

 

This traffic signal at Alicia Parkway and Parker Place was needed based on increasing traffic volume developed over time.

 

C.4.  Storm Drain @ PA 62              $234,000                       -$119,025                     $114,975

Drop Structure Wood Canyon

Drive

 

The additional funds totaling $119,025 for the two above listed traffic signal projects will come from this Exhibit B, C.4. PA 62 Drop Structure Wood Canyon Drive (PA 62) line item and will reduce its project budget amount from $234,000 to $114,975.  This project has already been completed.  

 

The construction bond proceeds are managed by CEO Public Finance and Auditor-Controller staff in accordance with the bond documents.  In addition to this proposed AFDA Amendment, attached for information is also the Amendment Number 7 to this AFDA Number 2, including the existing Exhibits A and B.  Since all of the project funding is from construction bond proceeds, the County's general fund is not impacted by this Amendment.  Staff recommends approval of this Amendment Number 8 as the traffic signals are eligible projects/eligible uses of funds within district.

 

 

 

 

 

FINANCIAL IMPACT:

 

N/A

 

 

 

STAFFING IMPACT:

 

N/A

 

 

 

EXHIBIT(S):

 

Executed copy of Acquisition, Funding and Disclosure Agreement Number 2 of 1992, Amendment Number 7 (approved 9/25/07)

 

ATTACHMENT(S):

 

Acquisition, Funding and Disclosure Agreement Number 2 of 1992, Proposed Amendment Number 8