WHEREAS, on January 12, 1999, this City Council of the City of Sunnyvale adopted a resolution entitled "A Resolution of Intention to Establish a Community Facilities District" stating its intention to establish Community Facilities District No. 1 of the City (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, sections 53311, et seq., of the California Government Code to finance the acquisition of certain facilities; and

WHEREAS, notice was published as required by the Mello-Roos Act relative to the intention of the Council to form the CFD and to provide for the Facilities; and

WHEREAS, the Council has held a noticed public hearing as required by the Mello-Roos Act relative to the determination to proceed with the formation of the CFD and the rate and method of apportionment of the special tax to be levied within the CFD to finance the costs of the Facilities; and

WHEREAS, at the hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD and the levy of the special taxes were heard, substantial evidence was presented and considered by this Council and a full and fair hearing was held; and

WHEREAS, subsequent to the hearing, this City Council adopted resolutions entitled "A Resolution of Formation of Community Facilities District," "A Resolution Determining the Necessity to Incur Bonded Indebtedness," and "A Resolution Calling Special Election," which resolutions established the CFD, authorized the levy of a special tax with the CFD, determined the necessity to incur bonded indebtedness in the CFD and called an election within the CFD on the propositions of incurring indebtedness, levying a special tax, and establishing an appropriations limit within the CFD, respectively; and

WHEREAS, on February 23, 1999, a special election was held within the CFD at which the eligible landowner-electors approved such propositions by the two-thirds vote required by the Mello-Roos Act;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SUNNYVALE DOES ORDAIN AS FOLLOWS:

Section 1. By the adoption of this ordinance the Council hereby authorizes and levies special taxes within the CFD pursuant to the Mello-Roos Act, at the rate and in accordance with the formula set forth in the Resolution of Formation which Resolution is by this reference incorporated herein. The special taxes are hereby levied commencing in fiscal year 1999-2000 and in each fiscal year thereafter until payment in full of any bonds issued by the City for the CFD (the "Bonds"), as contemplated by the Resolution of Formation and the Resolution Determining Necessity, and all costs of administering the CFD.

Section 2. The Director of Finance of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the CFD, in the manner and as provided in the Resolution of Formation.

Section 3. Properties or entities of the state, federal or local governments shall be exempt from any levy of the special taxes. In no event shall the special taxes be levied on any parcel within the CFD in excess of the maximum tax specified in the Resolution of Formation.

Section 4. All of the collections of the special tax shall be used as provided for in the Mello-Roos Act and in the Resolution of Formation including, but not limited to, the payment of principal and interest on the Bonds, the replenishment of the reserve fund for the Bonds, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the special tax.

Section 5. The special taxes shall be collected either by direct billing of the property owner(s) or in the same manner as ordinary ad valorem taxes are collected, and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the Council may provide for other appropriate methods of collection by resolutions of the Council. In addition, the provisions of Section 53356.1 of the Mello-Roos Act shall apply to delinquent special tax payments. The Director of Finance of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Santa Clara in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of Santa Clara for fiscal year 1999-2000 and for each fiscal year thereafter until the Bonds are paid in full; provided, however, that the special tax shall continue to be collected for the purposes of providing for the acquisition and construction of the Facilities and the administrative expenses thereof so long as such Facilities are provided.

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 CFD, by a Court of competent jurisdiction, the balance of this ordinance and the application of the special tax to the remaining parcels within the CFD shall not be affected.

SECTION 7. EXEMPTION FROM CEQA. The City Council finds, pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3), that this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a Project which has the potential for causing a significant effect on the environment. The Council therefore directs that a Notice of Exemption be filed with the Santa Clara County Clerk in accordance with Section 14 of the Sunnyvale Guidelines for the implementation of CEQA adopted by Resolution No. 193-86.

SECTION 8. EFFECTIVE DATE. This ordinance shall be in full force and effect immediately upon its adoption.

SECTION 9. POSTING AND PUBLICATION. The City Clerk is directed to cause copies of this ordinance to be posted in three (3) prominent places in the City of Sunnyvale and to cause publication once in The Sun, the official newspaper of the City of Sunnyvale, of a notice setting forth the date of adoption, the title of this ordinance, and a list of places where copies of this ordinance are posted, within fifteen (15) days after adoption of this ordinance.

AYES:

NOES:

ABSENT:

(SEAL)