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HomeMy WebLinkAbout115-88i 14015 -03 JHHW:SRC:ce 11/07/66 �"` S6646 RESOLUTION NO. 115-88 A RESOLUTION OF INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX PURSUANT TO THE MELLO —ROOS COMMUNITY FACILITIES ACT OF 1982 TOWN OF DANVILLE Community Facilities District No. 1988 -1 (Park Bonds and Services) RESOLVED by the Town Council (the "Council ") of the Town of Danville (the "Town "), County of Contra Costa, California, that: 1. This Council proposes to conduct proceedings to establish a community facilities district pursuant to the Mello —Roos Community Facilities Act of 1982, as amended (the "Act "), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code. 2. The name proposed for the District is Community Facilities District No. 1988 -1 (Park Bonds and Services). 3. The proposed boundaries of the District are as shown on the map of the District on file with the Town Clerk, which boundaries are hereby approved and to which map reference is hereby made for further particulars. The Town Clerk is hereby directed to record, or cause to be recorded, a map of the boundaries of the District in the office of the County Recorder of the County of Contra Costa within fifteen days of the date of adoption of this Resolution. 4. The type of public facilities proposed to be financed by the District and pursuant to the Act shall consist of those items described as facilities on Exhibit "A" hereto and by this reference incorporated herein (the "Facilities "), and the public services proposed to be financed by the District and pursuant to the Act shall consist of those services described on Exhibit "A" (the "Services "). 5. Except to the extent that funds are otherwise available to the District to pay for the Facilities, the Services and /or the principal and interest as it becomes due on bonds of the District issued to acquire the Facilities, a special tax sufficient to pay the costs thereof is intended to be levied annually within the District, and collected in the same manner as ordinary ad valorem property taxes. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit "B" attached hereto and by this reference incorporated herein. 6. It is the intention of this Council acting as the legislative body for the District to cause bonds of the Town to be issued for the District pursuant to the Act to finance in whole or in part the acquisition of the Facilities and the initial cost of the Services. Said bonds shall be in the aggregate principal amount of not to exceed $12,500,000 may be issued from time to time, shall bear interest payable semi — annually or in such other manner as this Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 30 years from the date of the issuance thereof. 7. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the District at a special election. The proposed voting procedure shall be by special election among the registered voters in said proposed District, with each registered voter having one vote. 8. Except as may otherwise be provided by law, all lands owned by any public entity, including the United States, the State of California and /or the Town, or any departments or political subdivisions thereof, shall be omitted from the levy of the special tax to be made to cover the costs and expenses of the Facilities and the Services. In the event that a portion of the property within the District shall become for —2— any reason exempt, wholly or in part, from the levy of the special tax described in Exhibit "B ", this Council will, on behalf of the District, increase the levy to the extent necessary upon the remaining property within the District which is not exempt in order to yield the required debt service payments and other annual expenses of the District, if any. 9. Janette Howell, Manager, Parks and Recreation of the Town, as the officer having charge and control of the Facilities and the Services in and for the District, is hereby directed to study said proposed Facilities and Services and to make, or cause to be made, and file with the Town Clerk a report in writing, presenting the following: (a) A description of the Facilities and Services by type which will be required to adequately meet the needs of the District. (b) An estimate of the fair and reasonable cost of providing the Services and of acquiring the Facilities including the cost of acquisition of lands, rights —of— way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection with said acquisition, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. Said report shall be made a part of the record of the public hearing provided for below. 10. Wednesday, November 30, 1988, at the hour of 7:30 o'clock p.m. at the Monte Vista High School Theater, 3131 Stone Valley Road, Danville, California, be, and the same are hereby appointed and fixed as the time and place when and where this Council, as legislative body for the District, will conduct a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special tax. —3— 11. The Town Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall be substantially in the form of Exhibit "C" hereto. 12. The law firm of Jones Hall Hill & White, A Professional Law Corporation, is hereby designated as bond counsel to the Town in connection with the formation of the District and the issuance of special tax bonds to be issued by the Town for the District, the fees of said firm to be payable solely from the proceeds of said bonds and to be established in the proceedings for the issuance of said bonds. ADOPTED by the Town Council of the Town of Danville at a regular meeting held on October 24, 1988, by the following vote: AYES: Councilmembers: Schlendorf, Greenberg, Ritchey, Jagger, and Mayor Lane NOES: None ABSENT: None 14" dvf/, t57�w ayor Town Clerk Approved as to form Mark �Doan�eTow�n -- TOWN OF DANVILLE Community Facilities District No. 1988 -1 (Park Bonds and Services) DESCRIPTION OF FACILITIES TO BE ACQUIRED AND SERVICES TO BE PROVIDED BY THE DISTRICT I. FACILITIES TO BE FINANCED The public facilities to be financed consist of parks and recreation facility projects. The following projects have been given priority by the City Council: Tassajara Park Crow Canyon Park Greenbrook School Greenvalley School Oak Hill Park Amphitheater Magee Park Trails Veterans Hall Village Theater Gymnasium Together with the acquisition of all required lands, easements, rights —of —way, licenses, permits and franchises and the construction of all auxiliary work necessary and /or convenient to the accomplishment of the foregoing. The City Council may alter the public facilities priorities providing that these changes are limited to parks and recreation facility projects benefiting the citizens of Danville. 11. SERVICES TO BE FINANCED The public services to be financed shall include a contribution to the maintenance of the facilities financed through Community Facilities District No. 1988 -1 (Park Bonds and Services). III. OTHER Bond related expenses, including underwriters discount, reserve fund, capitalized interest, consultants fees and all other incidental expenses, administrative fees of the Town and the Bond trustee or paying agent related to the District and the bonds. EXHIBIT A TOWN OF DANVILLE Community Facilities District No. 1988 -1 (Park Bonds and Services) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 1. Basis of Special Tax Levy The annual special tax shall be levied by the Town Council (the "Council ") of the Town of Danville (the "Town ") on each separate parcel within the Community Facilities District No. 1988 -1 (Park Bonds and Services) as shown on the Contra Costa County Assessor's records, subject to the maximum rate specified below. 2. Determination of Parcels Subject to Special Tax The records of the County Assessor of Contra Costa County shall be used to determine the parcels subject to the special tax. The basis for determining the parcels will be the Secured Property Tax Roll. The land use code contained in the Secured Property Tax Roll will be the basis for assigning the appropriate tax rate to each parcel. If no such code has been assigned on the Secured Property Tax Roll or the code is incorrect, the Town of Danville will assign the appropriate code based on its review of the status of the property. All special taxes shall be based on parcels established in the County Assessor's records as of March 1 of each year. Using the records of the County Assessor, on or before the first day of June in each year beginning in 1989, the Town shall prepare a list of the parcels subject to the special tax. The District shall establish the parcels subject to the special tax by excluding all parcels that are not classified as residential using the land code in the Assessor's record and the following: a) Exclude all non - residential parcels. b) Exclude all residential parcels that are not classified as developed. A developed parcel is defined as having an existing residential structure or a building permit issued. c) From the parcels remaining identify the following groups of parcels based upon Assessor's land use codes; • Single family residential parcels, consisting of all parcels with land use codes from 10 to 19 on the Secured Property Tax Roll or based on review by the Town of Danville. • Multi- family residential parcels, consisting of all parcels with land use codes from 20 to 29 on the Secured Property Tax Roll or based on review by the Town of Danville. EXHIBIT B B -1 3. Maximum Annual Special Tax The maximum annual tax shall not exceed the rates per dwelling unit in the base year (FY 1988/89) shown in Figure B -1 as adjusted by a 3% annual escalation factor after the base year. Figure B -2 shows the maximum annual special tax per dwF''ing unit for each land use category through the year 2020 after adjustment for the escalation factor. 4. Annual Tax Rate The tax rate shall be established annually by the Council of the Town not later than its final meeting in July as follows: a) Annually, at the time of levying the special tax for the District, the Council shall determine all amounts necessary to pay current scheduled debt service on all outstanding bonds (including any scheduled mandatory sinking fund payments), to pay all annual and current expenses of administering the District (the Town may specify an estimate for the annual expenses in each levy), to cure any delinquencies in the payment of principal or interest on the bonds which have occurred or (based on delinquencies in the payment of special taxes which have already taken place) will occur in the Fiscal Year in which the tax will be collected, to replenish any bond reserve fund to the applicable bond reserve requirement as necessary (including, in the replenishment, charges against the reserve account which will be necessary in the future because of delinquencies in the payment of special taxes which have already taken place), to pay for eligible pay -as- you -go expenditures, and to accumulate special tax proceeds for future debt service or directly for authorized projects. The total amount so determined shall be the "Special Tax Requirement ". b) Revenues received by the Town from development fees, donations, grants, or other similar sources may be subtracted from the annual Special Tax Requirement calculated in Step a), at the sole determination and discretion of the Council. c) The remaining Special Tax Requirement calculated in Step b) shall be collected from the taxable parcels within the District by increasing the applicable tax rate per dwelling unit for each land use type by equal proportions of the maximum authorized tax rates shown in Figure B -2 until the tax produces sufficient revenue, but in no event more than the maximum authorized special tax rates. d) Calculate the annual tax for each parcel in the District by multiplying the applicable special tax rate times the number of dwelling units or approved dwelling units on each parcel. e) Notify the appropriate county official of the annual special tax for each parcel. The Town's levy of the special tax rate and calculation of the annual special tax liability for each parcel shall be presumed correct and conclusive. It shall be the responsibility of the taxpayer to correct any errors in the determination of the parcels subject to the tax and their special taxes. EXHIBIT B B -2 TOWN OF DANVILLE Community Facilities District No. 1988 -1 (Park Bonds and Services) Proposed Initial Year Special Tax Rates Fiscal Year 1988/89 Base Year Land Use Single Family Parcels Maximum Special Tax 1 $ 84.00 per dwelling unit Multi Family Parcels Commercial /Industrial $ 71.40 per dwelling unit exempt 2 Notes: 1) Maximum Annual Tax shall be inflated 3% per year over the Fiscal Year 1988/89 base year. 2) Commercial /Industrial parcels are exempt from paying the special tax. EXHIBIT B Figure B -1 TOWN OF DANVILLE Community Facilities District No. 1988 -1 (Park Bonds and Services) Proposed Maximum Annual Tax Rates with 3% Escalation Rate 1 Fiscal Single Multi Year Family Family Ending - - per dwelling unit - - 1989 $ 84.00 $ 71.40 1990 86.52 73.54 1991 89.12 75.75 1992 91.79 78.02 1993 94.54 80.36 1 994 97.38 82.77 1995 100.30 85.26 1996 103.31 87.81 1997 106.41 90.45 1998 109.60 93.16 1999 112.89 95.96 2000 116.28 98.83 2001 119.76 101.80 2002 123.36 104.85 2003 127.06 108.00 2004 130.87 111.24 2005 134.80 114.58 2006 138.84 118.01 2007 143.00 121.55 2008 147.29 125.20 2009 151.71 128.96 2010 156.26 132.83 2011 160.95 136.81 2012 165.78 140.91 2013 170.75 145.14 2014 175.88 149.50 2015 181.15 153.98 2016 186.59 158.60 2017 192.19 163.36 2018 197.95 168.26 2019 203.89 173.31 Notes: 1) Annual Escalation Rate = 3 9 /b 2) All parcels are taxed for each dwelling unit or approved dwelling unit. EXHIBIT B Figure B -2 TOWN OF DANVILLE Community Facilities District No. 1988 -1 (Park Bonds and Services) NOTICE OF PUBLIC HEARING Notice is hereby given that on October 24, 1988, the Town Council of the Town of Danville adopted a Resolution entitled "A Resolution of Intention to Establish a Community Facilities District and to Authorize the Levy of a Special Tax Pursuant to the Mello —Roos Community Facilities Act of 1982 ". Pursuant to the Mello —Roos Community Facilities Act of 1982, the Town Council hereby gives notice as follows: A. The text of said Resolution of Intention is as follows: RESOLVED by the Town Council (the "Council ") of the Town of Danville (the "Town'), County of Contra Costa, California, that: 1. This Council proposes to conduct proceedings to establish a community facilities district pursuant to the Mello —Roos Community Facilities Act of 1982, as amended (the "Act'), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code. 2. The name proposed for the District is Community Facilities District No. 1988 -1 (Park Bonds and Services). 3. The proposed boundaries of the District are as shown on the map of the District on file with the Town Clerk, which boundaries are hereby approved and to which map reference is hereby made for further particulars. The Town Clerk is hereby directed to record, or cause to be recorded, a map of the boundaries of the District in the office of the County Recorder of the County of Contra Costa within fifteen days of the date of adoption of this Resolution. 4. The type of public facilities proposed to be financed by the District and pursuant to the Act shall consist of those items described as facilities on Exhibit "A" hereto and by this reference incorporated herein (the "Facilities'), and the public services proposed to be financed by the District and pursuant to the Act shall consist of those services described on Exhibit "A" (the "Services "). 5. Except to the extent that funds are otherwise available to the District to pay for the Facilities, the Services and /or the principal and interest as it becomes due on bonds of the District issued to acquire the Facilities, a special tax sufficient to pay the costs thereof is intended to be levied annually within the District, and collected in the same manner as ordinary ad valorem property taxes. The proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit "B" attached hereto and by this reference incorporated herein. 6. It is the intention of this Council acting as the legislative body for the District to cause bonds of the Town to be issued for the District pursuant to the Act to finance in whole or in part the acquisition of the Facilities and the initial cost of the Services. Said bonds shall be in the aggregate principal amount of not to exceed $12,500,000 may be issued from time to time, shall bear interest payable semi— annually or in such other manner as this Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 30 years from the date of the issuance thereof. 7. The levy of said proposed special tax shall be subject to the approval of the qualified electors of the District at a special election. The proposed voting EXHIBIT C C -1 procedure shall be by special election among the registered voters in said proposed District, with each registered voter having one vote. 8. Except as may otherwise be provided by law, all lands owned by any public entity, including the United States, the State of California and /or the Town, or any departments or political subdivisions thereof, shall be omitted from the levy of the special tax to be made to cover the costs and expenses of the Facilities and the Services. In the event that a portion of the property within the District shall become for any reason exempt, wholly or in part, from the levy of the special tax described in Exhibit "B ", this Council will, on behalf of the District, increase the levy to the extent necessary upon the remaining property within the District which, is not exempt in order to yield the required debt service payments and other annual expenses of the District, if any. 9. Janette Howell, Manager, Parks and Recreation of the Town, as the officer having charge and control of the Facilities and the Services in and for the District, is hereby directed to study said proposed Facilities and Services and to make, or cause to be made, and file with the Town Clerk a report in writing, presenting the following: (a) A description of the Facilities and Services by type which will be required to adequately meet the needs of the District. (b) An estimate of the fair and reasonable cost of providing the Services and of acquiring the Facilities including the cost of acquisition of lands, rights —of —way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection with said acquisition, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act. Said report shall be made a part of the record of the public hearing provided for below. 10. Wednesday, November 30, 1988, at the hour of 7:30 o'clock p.m. at the Monte Vista High. School Theater, 3131 Stone Valley Road, Danville, California, be, and the same are hereby appointed and fixed as the time and place when and where this Council, as legislative body for the District, will conduct a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special tax. 11. The Town Clerk is herebv directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall be substantially in the form of Exhibit "C" hereto. 12. The law firm of Jones Hall Hill & White, A Professional Law Corporation, is hereby designated as bond counsel to the Town in connection with the formation of the District and the issuance of special tax bonds to be issued by the Town for the District, the fees of said firm to be payable solely from the proceeds of said bonds and to be established in the proceedings for the issuance of said bonds. ADOPTED by the Town Council of the Town of Danville at a regular meeting held on October 24, 1988, by the following vote: AYES: Councilmember: Sch.lendor f, Greenberg, Ritchey, Jagger, and Mayor Lane NOES: None ABSENT: None /s/ Beverly Lane Approved as to form Mayor /s/ Mark Doane /s/ George Sivel Mark Doane, Town Attorney Town Clerk EXHIBIT C C -2 EXHIBIT A DESCRIPTION OF FACILITIES TO BE ACQUIRED AND SERVICES TO BE PROVIDED BY THE DISTRICT I. FACILITIES TO BE FINANCED The public facilities to be financed consist of parks and recreation facility projects. The following projects have been given priority by the City Council: Tassajara Park Crow Canyon Park Greenbrook School Greenvalley School Oak Hill Park Amphitheater Magee Park Trails Veterans Hall Village Theater Gymnasium Together with the acquisition of all required lands, easements, rights —of— way, licenses, permits and franchises and the construction of all auxiliary work necessary and /or convenient to the accomplishment of the foregoing. The City Council may alter the public facilities priorities providing that these changes are limited to parks and recreation facility projects benefiting the citizens of Danville. II. SERVICES TO BE FINANCED The public services to be financed shall include a contribution to the maintenance of the facilities financed through Community Facilities District No. 1988 -1 (Park Bonds and Services). III. OTHER Bond related expenses, including underwriters discount, reserve fund, capitalized interest, consultants fees and all other incidental expenses, administrative fees of the Town and the Bond trustee or paying agent related to the District and the bonds. EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 1. Basis of Special Tax Levy The annual special tax shall be levied by the Town Council (the "Council ") of the Town of Danville (the "Town ") on each separate parcel within the Community Facilities District No. 1988 -1 (Park Bonds and Services) as shown on the Contra Costa County Assessor's records, subject to the maximum rate specified below. 2. Determination of Parcels Subject to Special Tax The records of the County Assessor of Contra Costa County shall be used to determine the parcels subject to the special tax. The basis for determining the parcels will be the Secured Property Tax Roll. The land use code contained in the Secured Property Tax Roll will be the basis for assigning the appropriate tax rate to each parcel. If no such code has been assigned on the Secured Property Tax Roll or the code is incorrect, the Town of Danville will assign the appropriate code based on its review of the status of the property. All special taxes shall be based on pareelg established in the County Assessor's records as of March. 1 of each year. Using the records of the County Assessor, on or before the first day of June in each year beginning in 1989, the Town shall prepare a list of the parcels subject to the special tax. The District shall establish the parcels subject to the special tax EXHIBIT C C -3 by excluding all parcels that are not classified as residential using the land code in the Assessor's record and the following: a) Exclude all non— residential parcels. b) Exclude all residential parcels that are not classified as developed. A developed parcel is defined as having an existing residential structure or a building permit issued. c) From the parcels remaining identify the following groups of parcels based upon Assessor's land use codes; • Single family residential parcels, consisting of all parcels with land use codes from 10 to 19 oil the Secured Property Tax Roll or based on review by the Town of Danville. • Multi— family residential parcels, consisting of all parcels with. land use codes from 20 to 29 on the Secured Property Tax Roll or based on review by the Town of Danville. 3. Maximum. Annual Special Tax The maximum annual tax shall not exceed the rates per dwelling unit in the base year (FY 1988189) shown in Figure B -1 as adjusted by a 3% annual escalation factor after the base year. Figure B -2 shows the maximum annual special tax per dwelling unit for each land use category through the year 2020 after adjustment for the escalation factor. 4. Annual Tax Rate The tax rate shall be established annually by the Council of the Town not later than its final meeting in July as follows: a) Annually, at the time of levying the special tax for the District, the Council shall determine all amounts necessary to pay current scheduled debt service on all outstanding bonds (including any scheduled mandatory sinking fund payments), to pay all annual and current expenses of administering the District (the Town may specify all estimate for the annual expenses in each levy), to cure any delinquencies in the payment of principal or interest on the bonds which have occurred or (based on delinquencies in the payment of special taxes which have already taken place) will occur• in the Fiscal Year in which the tax will be collected, to replenish any bond reserve fund to the applicable bond reserve requirement as necessary (including, in the replenishment, charges against the reserve account which will be necessary in the future because of delinquencies in the payment of special taxes which have already taken place), to pay for eligible pay —as— you —go expenditures, and to accumulate special tax proceeds for future debt service or directly for authorized projects. The total amount so determined shall be the "Special Tax Requirement ". b) Revenues received by the Town from development fees, donations, grants, or other similar sources may be subtracted from the annual Special Tax Requirement calculated in Step a), at the sole determination and discretion of the Council. c) The remaining Special Tax Requirement calculated in Step b) shall be collected from the taxable parcels within the District by increasing the applicable tax rate per dwelling unit for each land use type by equal proportions of the maximum authorized tax rates shown in Figure B -2 until the tax produces sufficient revenue, but in no event more than the maximum authorized special tax rates. d) Calculate the annual tax for each parcel in the District by multiplying the applicable special tax rate times the number of dwelling units or approved dwelling units on each parcel. e) Notify the appropriate county official of the annual special tax for each parcel. EXHIBIT C C -4 I-- The Town's levy of the special tax rate and calculation of the annual special tax liability for each parcel shall be presumed correct and conclusive. It shall be the responsibility of the taxpayer to correct any errors in the determination of the parcels subject to the tax and their special taxes. Figure B -1 PROPOSED INITIAL YEAR SPECIAL TAX RATES FISCAL YEAR 1988189 BASE YEAR LAND USE MAXIMUM SPECIAL TAX 1 Single Family Parcels $ 84.00 per dwelling unit Multi Family Parcels $ 71.40 per dwelling unit Commercial/Industrial exempt 2 Notes: 1) Maximum Annual Tax shall be inflated 3% per year over the Fiscal Year 1988189 base year. 2) Commercial /Industrial parcels are exempt from paying the special tax. Figure B -2 PROPOSED MAXIMUM ANNUAL TAX RATES WITH 3% ESCALATION RATE 1 Fiscal Single Multi Year Family Family Ending - - per dwelling unit - - 1989 $ 84.00 $ 71.40 1990 86.52 73.54 1991 89.12 75.75 1992 91.79 78.02 1993 94.54 80.36 1994 97.38 82.77 1995 100.30 85.26 1996 103.31 87.81 1997 106.41 90.45 1998 109.60 93.16 1999 112.89 95.96 2000 116.28 98.83 2001 119.76 101.80 2002 123.36 104.85 2003 127.06 108.00 2004 130.87 111.24 2005 134.80 114.58 2006 138.84 118.01 2007 143.00 121.55 2008 147.29 125.20 2009 151.71 128.96 2010 156.26 132.83 2011 160.95 136.81 2012 165.78 140.91 EXHIBIT C C -5 I--- 2013 170.75 145.14 2014 175.88 149.50 2015 181.15 153.98 2016 186.59 158.60 2017 192.19 163.36 2018 197.95 168.26 2019 203.89 173.31 Notes: 1) Annual Escalation Rate = 3% 2) All parcels are taxed for each dwelling unit or approved dwelling unit. B. As provided in said Resolution, the time and place for the establishment of the District are: Wednesday, November 30, 1988, at 7:30 o'clock p.m. in the Monte Vista High School Theater, 3131 Stone Valley Road, Danville, California. C. At the hearing, the testimony of all interested persons or tax payers for and against the establishment of the District, the extent of the District, or the funding of the Facilities and Services will be heard. D. If fifty percent (50 %) or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the District, or the owners of one —half ( or more of the area of land in the territory proposed to be included in the District, file written protests against the establishment of the District, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to create the District or to levy the specified special tax shall be taken for a period of one year from the date of the decision of the Town Council. If the majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of Facilities or Services within the District, or against levying a specified special tax, those types of Facilities or Services or the specified special tax shall be eliminated from the resolution of formation for the District. Dated as of November 1, 1988 /s/ George Sipel Town Clerk Town of Danville EXHIBIT C C -6