Agenda packet — Aliso Viejo City Council, October 4, 2023 (part 1 of 2)

1 AGENDA

ALISO VIEJO CITY COUNCIL
WEDNESDAY, OCTOBER 4, 2023
6:30 PM CLOSED SESSION
7:00 PM REGULAR MEETING

City Hall
Council Chambers
12 Journey
Aliso Viejo, CA

Mayor Richard W. Hurt
Mayor Pro Tem Mike Munzing
Councilmember Tiffany Ackley
Councilmember Ross Chun
Councilmember Max Duncan

WELCOME to the City of Aliso Viejo City Council meeting. Those persons wishing to address the City Council are requested to complete and submit to the City Clerk a “Request to Address City Council” form available at the entrance to the City Council Chamber s. Speakers will be called at the appropriate time as their interested matter is heard. COMMENTS WILL BE LIMITED TO THREE MINUTES PER SPEAKER. Council proceedings are recorded.

It is the City’s intention to comply with the Americans with Disabilities Act (ADA). If you need special assistance to participate in the meeting, the City will make reasonable arrangements to ensure accessibility and/or accommodations. [28 CFR 35.102- 35.104 ADA Title II] Please contact the City Clerk’s Office at (949) 425- 2505 at least 48 hours prior to the meeting.

Regular meetings of the City Council are held on the first and third Wednesday of the month at the City Hall Council Chambers, 12 Journey, Aliso Viejo. Copies of the agenda are available in the lobby at City Hall on the Thursday preceding a regularly scheduled City Council meeting. All communications received by the City regarding an agenda item have been included in the agenda materials. Supplemental documents relating to specific agenda items, including communications received after agenda delivery, are presented at the dais and in the Public Copy agenda binder at the time of the meeting. Supplemental documents are also available for review in the City Clerk’s office, 12 Journey, Aliso Viejo. For more information, please contact City Hall at (949) 425- 2505.

This meeting will be broadcast live on Cox Communications Channel 851, AT&T U -Verse Channel 99 and the City's website. By attending the City Council Meeting, you are giving your permission to be televised. The Council Meetings are rebroadcast on Wednesday at 7:00 p.m. on Cox Communications Channel 851, AT&T U - Verse Channel 99, and can be viewed on the internet at www.avcity.org.

DAVID A. DOYLE SCOTT C. SMITH MITZI ORTIZ

CITY MANAGER CITY ATTORNEY CITY CLERK
1 2

PLEASE SILENCE ALL CELL PHONES AND OTHER

ELECTRONIC EQUIPMENT WHILE CITY COUNCIL IS IN SESSION

CALL TO ORDER: CONVENE SPECIAL MEETING

PUBLIC COMMENTS:

CLOSED SESSION:

CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION
Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4) Number of Potential Cases: 1

CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency Designated Representatives: City Manager and City Attorney Unrepresented Employees: All Employees

CALL TO ORDER: CONVENE REGULAR MEETING

ROLL CALL

PLEDGE OF ALLEGIANCE:

REPORT FROM CLOSED SESSION:

1. SPECIAL PRESENTATIONS:

1.1. FEATURED BUSINESS OF THE MONTH - PEDIATRIC DENTISTRY Certificate of Recognition

1.2. PROCLAMATION – FIRE PREVENTION WEEK
Proclamation

1.3. MOULTON NIGUEL WATER DISTRICT PRESENTATION REGARDING PROJECT &

DISTRICT UPDATES

2. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA:

2 3

3. COMMUNITY INPUT:

Members of the public wishing to address the City Council are requested to complete and submit to the City Clerk a “Request to Address City Council” form available at the entrance to the City Council Chambers. In compliance with the Brown Act, no discussi on or action may be taken on comments received at this time, except the City Council may briefly respond to statements made or questions posed. Comments are limited to three (3) minutes per speaker.

4. CONSENT CALENDAR:

All matters listed on the Consent Calendar will be acted upon by one vote unless members of the City Council, or staff request a matter to be discussed and/or removed from the Consent Calendar for separate action. Items removed from the Consent Calendar will be discussed and voted upon immediately following City Council action on the remainder of the Consent Calendar.

4.1. WAIVE THE READING OF ALL ORDINANCES AND RESOLUTIONS Recommended Action: Approve the reading by title only of all ordinances and resolutions wherein the titles appear on the public agenda; said titles shall be determined to have been read by title, and further reading is waived.

4.2. APPROVAL OF MINUTES
Recommended Action: Approve the Minutes as submitted for the September 6, 2023 Special Meeting and September 6, 2023 Regular Meeting.

Draft Minutes - September 6, 2023 Special Meeting
Draft Minutes - September 6, 2023 Regular Meeting

4.3. ACCOUNTS PAYABLE
Recommended Action: Ratify accounts payable checks and electronic funds transfers issued between August 18 and September 14, 2023, in the amount of $1,341,486.05.

Staff Report
Attachment 1 - Accounts Payable Report

4.4. TREASURER’S STATEMENT – AUGUST 2023
Recommended Action: Receive and file the August 2023 Treasurer’s Statement.

Staff Report
Attachment 1 - August 2023 Treasurer’s Statement

4.5. COMMUNITY FACILITIES DISTRICT NO. 2005 -01 (GLENWOOD AT ALISO VIEJO)

LOCAL AGENCY SPECIAL TAX AND BOND ACCOUNTABI LITY ACT COMPLIANCE (SB 165) REPORT FOR FISCAL YEAR ENDED JUNE 30, 2023
Recommended Action: For City Council to accept and file the Community Facilities District No. 2005 -01 (Glenwood at Aliso Viejo) Local Agency Special Tax and Bond Accountability Act Compliance (“SB 165”) Report for Fiscal Year June 30, 2023.

Staff Report
Attachment 1 – SB 165 Report
3 4

4.6. AWARD CONTRACT TO NIEVES LANDSCAPE, INC. FOR THE CITY HALL

LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
Recommended Action:

1. Approve Contract Documents, Specifications, and Plans for the City Hall Landscape and Irrigation Improvement Project;

2. Award a contract in the amount of $157,314 to Nieves Landscape, Inc. as the lowest responsible bidder for the City Hall Landscape and Irrigation Improvement Project;

3. Authorize the City Manager to execute a contract with Nieves Landscape, Inc.;

4. Authorize C ity staff to make total compensation to Nieves Landscape, Inc. up to $157,314 plus $31,462.80 (20% of the contract amount) to allow for contingencies, totaling $188,776.80; and

5. Declare this project categorically exempt from the California Environmental Quality Act (CEQA) process Per Title 14 of the California Code of Regulations, Chapter 3, Article 19, Section 15301 (Class 1: Existing Facilities).

Staff Report
Attachment 1 - Contract
Attachment 2 - Submitted Bid

4.7. RELEASE OF BONDS FOR THE GRADING AND LANDSCAPING IMPROVEMENTS FOR THE 15 -25 ENTERPRISE GRADING AND LANDSCAPING CONSTRUCTION

PROJECT
Recommended Action: Adopt a Resolution exonerating Grading Surety Bond No.

SU1190293 and Landscaping Surety Bond No. SU1190294 for the 15- 25 Enterprise Grading and Landscaping Construction Project.

Staff Report
Attachment 1 - Resolution

4.8. CALRECYCLE RESOLUTION FOR GRANT FUNDING
Recommended Action: Adopt a Resolution authorizing submittal of applications for all CalRecycle grants and payment programs for which the City of Aliso Viejo is eligible.

Staff Report
Attachment 1 - Resolution

4.9. ADOPTION OF THE 2022 -2023 CONSOLIDATED ANNUAL PERFORMANC E AND

EVALUATION REPORT (CAPER) FOR EXPENDITURES OF COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) FUNDS
Recommended Action:

1. Find that the 2022- 2023 Consolidated Annual Performance and Evaluation Report (CAPER) is not subject to the California Environmental Quality Act (CEQA) because the activity is not a project as defined in Section 15378 (b)(5) of the State CEQA Guidelines;

2. Approve and adopt the 2022-2023 CAPER; and

3. Authorize the City Manager to submit the CAPER to the United States Department of Housing and Urban Development (HUD) and authorize the City Manager to submit all related documents.

Staff Report
Attachment 1 - 2022-23 CAPER
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5. PUBLIC HEARINGS:

None.

6. DISCUSSION:

6.1. COMMUNITIES FACILITIES DISTRICT NO. 2005 -01 (GLENWOOD AT ALISO VIEJO) – 2023 SPECIAL TAX REFUNDING BONDS
Recommended Action:

1. Adopt a Resolution authorizing the 2023 special tax refunding bonds of the Community Facilities District 2005 -01 (Glenwood at Aliso Viejo), approving the form Fiscal Agent Agreement, authorizing negotiation of terms of the sale of bonds, approving a Preliminary Official Statement, authorizing preparation of a Final Official Statement; and approving other related documents and actions; and

2. Authorize the City Manager to execute necessary documents for the refinancing of the bonds.

Staff Report
Attachment 1 - Resolution
Attachment 2 - Fiscal Agent Agreement
Attachment 3 - Preliminary Official Statement
Attachment 4 - Bond Purchase Agreement
Attachment 5 - Irrevocable Refunding Instructions
Attachment 6 - Presentation

6.2. EMPLOYEE HEALTH BENEFIT ALLOWANCE
Recommended Action: Adopt a Resolution approving an increase to the employee health benefit allowance based on a tiered system determined by number of dependents, effective January 1, 2024.

Staff Report
Attachment 1 - Resolution

7. CITY MANAGER' S REPORT:

8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:

9. ADJOURNMENT:

The next regularly scheduled City Council meeting is October 18, 2023.

5 Certificate of Recognition

Presented to

PEDIATRIC DENTISTRY

Aliso Viejo
Business of the Month
October 2023

Presented this 4th day of October, 2023

Richard Hurt, Mayor
6 Proclamation
Fire Prevention Week
October 8-14, 2023

WHEREAS, fire is a serious public safety concern both locally and nationally, and homes are where people are at greatest risk from fire; and

WHEREAS, cooking is the leading cause of house fires and injuries in the nation causing nearly half of all home structure fires; and

WHEREAS, an average of 358,500 homes experience a structural fire each year , resulting in 7 deaths every day; and

WHEREAS, more than a third of home fire deaths occur in homes with no smoke alarms, however, the risk of dying in reported home structure fires is 55 percent lower in homes with working smoke alarms; and

WHEREAS, Orange County residents are responsive to public education and outreach measures and can take personal steps to increase their safety from fire, especially in their homes; and

WHEREAS, the 2023 Fire Prevention Week theme, “Cooking Safety Starts with YOU.

Pay Attention to Fire Prevention” effectively serves to remind us to educate everyone about simple but important actions they can take to keep themselves and those around them safe from cooking fires.

NOW THEREFORE, BE IT RESOLVED, that the Aliso Viejo City Council does hereby declare October 8-14, 2023, as “Fire Prevention Week” and urges Aliso Viejo residents to practice safe cooking habits , such as s taying in the kitchen while cooking, remov ing items from around the stove that can catch fire, and support ing the many public safety activities and efforts of Orange County Fire Authority during Fire Prevention Week 2023.

Dated this 4th day of October, 2023

___________________________
Richard Hurt, Mayor
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Special Meeting Minutes

CITY OF ALISO VIEJO

CITY COUNCIL MINUTES

SPECIAL MEETING
September 6, 2023, 6:00 PM
Council Chambers, City Hall, 12 Journey
Aliso Viejo, California
CALL TO ORDER: Mayor Hurt called the Special Meeting of the City Council of the City of Aliso Viejo to order at 6:00 p.m.

ROLL CALL:

PRESENT: MAYOR RICHARD W. HURT

MAYOR PRO TEM MIKE MUNZING

COUNCILMEMBER TIFFANY ACKLEY

COUNCILMEMBER ROSS CHUN

COUNCILMEMBER MAX DUNCAN
ABSENT: NONE
STAFF PRESENT: DAVID A. DOYLE, CITY MANAGER

HONGDAO NGUYEN, ASSISTANT CITY ATTORNEY

PATRICIA CANTONWINE, HUMAN RESOURCES ANALYST
PUBLIC COMMENTS:

None.

CLOSED SESSION:

CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency Designated Representatives: City Manager and City Attorney Unrepresented Employees: All Employees

CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION
Initiation of Litigation Pursuant to Government Code Section 54956.9(d)(4) Number of Potential Cases: 1
REPORT FROM CLOSED SESSION:

Assistant City Attorney HongDao Nguyen stated there was no reportable action taken. 8

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Special Meeting Minutes
ADJOURNMENT: Mayor Hurt adjourned the meeting at 6:57 p.m. to the September 6, 2023 Regular Council Meeting.

Respectfully submitted: Approved by:
________________________ ________________________

MITZI ORTIZ, MMC RICHARD HURT

CITY CLERK MAYOR
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Regular Meeting Minutes

CITY OF ALISO VIEJO

CITY COUNCIL MINUTES

REGULAR MEETING
SEPTEMBER 6, 2023, 7:00 PM
Council Chambers, City Hall, 12 Journey
Aliso Viejo, California
CALL TO ORDER: Mayor Hurt called the Regular Meeting of the City Council of the City of Aliso Viejo to order at 7:05 p.m.

ROLL CALL
PRESENT: MAYOR RICHARD W. HURT

MAYOR PRO TEM MIKE MUNZING

COUNCILMEMBER TIFFANY ACKLEY

COUNCILMEMBER ROSS CHUN

COUNCILMEMBER MAX DUNCAN
ABSENT: NONE
STAFF PRESENT: DAVID A. DOYLE, CITY MANAGER

HONGDAO NGUYEN, ASSISTANT CITY ATTORNEY

MITZI ORTIZ, CITY CLERK

ANN EIFERT, FINANCIAL SERVICES DIRECTOR

SHAUN PELLETIER, PUBLIC WORKS DIRECTOR

SO KIM, COMMUNITY DEVELOPMENT DIRECTOR

ROSE RIVERA, SENIOR PLANNER

CINDY COLLINS, INTERIM COMMUNITY SERVICES MANAGER

ISAAC AZIZ, INFORMATION TECHNOLOGY MANAGER
CAPT. ALAN VILLANUEVA, CHIEF OF POLICE SERVICES
PLEDGE OF ALLEGIANCE: Chief of Police Services Captain Alan Villanueva led the pledge of allegiance.

REPORT FROM CLOSED SESSION:

Assistant City Attorney HongDao Nguyen stated there was no reportable action taken.

1. SPECIAL PRESENTATIONS:
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Regular Meeting Minutes

1.1. PROCLAMATION – 2023 HUNGER ACTION MONTH
Mayor Hurt presented the proclamation to Second Harvest Food Bank Board Member Dr.

John Ralls. Dr. Ralls expressed his appreciation and commented on the importance of the designation.

1.2. PROCLAMATION – NATIONAL PREPAREDNESS MONTH
Mayor Hurt presented the proclamation to Senior Emergency Management Program Coordinator Sarah Limones. Ms. Limones expressed her appreciation and commented on the importance of the designation.

2. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA:

None.

3. COMMUNITY INPUT:

1. Soodabeh Ehtesham provided information on financial education opportunities.

4. CONSENT CALENDAR:

Unless otherwise indicated below, the following pertains to all items on the Consent Calendar.

Motion: Councilmember Ackley moved and Mayor Pro Tem Munzing seconded to approve the recommended actions. Motion carried 5-0.

4.2. APPROVAL OF MINUTES
Recommended Action: Approve the Minutes as submitted for the August 16, 2023 Special Meeting and August 16, 2023 Regular Meeting.

4.3. ACCOUNTS PAYABLE
Recommended Action: Ratify accounts payable checks and electronic funds transfers issued between August 4 and August 17, 2023, in the amount of $1,361,964.06. 11

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Regular Meeting Minutes

4.4. TREASURER’S STATEMENT – JULY 2023
Recommended Action: Receive and file the July 2023 Treasurer’s Statement.

4.5. AGREEMENT WITH NV5, INC. FOR ON-CALL CIVIL ENGINEERING SERVICES Recommended Action:

1. Approve a 3-year agreement with NV5, Inc. to perform on- call civil engineering services; and

2. Authorize the City Manager to execute a professional services agreement with NV5, Inc. for an amount of $50,000.

4.6. SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH RDA,

LLC TO PROVIDE PLANNING CONSULTANT SERVICES
Councilmembers commented on the matter.

Recommended Action: Approve and authorize the City Manager to execute a second amendment to the Professional Services Agreement with RDA, LLA to increase the total compensation by $65,000.

Motion: Councilmember Ackley moved and Councilmember Chun seconded to approve the recommended action. Motion carried 5-0.

5. PUBLIC HEARINGS:

5.1. PUBLIC HEARING REGARDING CONSIDERATION OF THE OPERATING COVENANT

AGREEMENT WITH HUNT AND SONS, LLC, AND THE RELATED ECONOMIC

SUBSIDY REPORT
City Manager David Doyle provided an overview. Staff responded to questions regarding agreement term. Councilmembers commented on the matter. Mayor Hurt opened the public hearing. There were no comments. Mayor Hurt closed the public hearing.

Recommended Action:

1. Open and conduct a public hearing;

2. Declare that this project is exempt from the California Environmental Quality Act CEQA) under Section 15378(b)(4) because the Covenant Agreement involves the creation of a government funding mechanism, or other fiscal activity, that does not involve any commitment to any specific project which may result in a direct or indirect physical change in the environment;

3. Adopt Resolution No. 2023-26 approving the acceptance of the Economic Development Subsidy Report prepared pursuant to Government Code Section 5 3083 regarding an operating covenant agreement by and between the City of Aliso Viejo and 12

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Regular Meeting Minutes
Hunt and Sons, LLC, and approving the operating covenant agreement between the City of Aliso Viejo and Hunt and Sons, LLC and making related findings;

4. Authorize th e Director of Financial Services to appropriate $880,000 to the fiscal year 2023-24 budget for subsidy payments to Hunt and Sons, LLC; and

5. Authorize the City Manager to execute all related documents.

Motion: Mayor Pro Tem Munzing moved and Councilmember Chunseconded to approve the recommended actions. Motion carried 5-0.

5.2. TIME EXTENSION REQUEST FOR A SITE DEVELOPMENT PERMIT AND EXTENSION PERMIT AT 6 POLARIS WAY
City Manager David Doyle introduced Community Development Director So Kim, who provided an overview. Staff responded to questions regarding limit on permit extensions.

Mayor Hurt opened the public hearing. There were no comments. Mayor Hurt closed the public hearing.

Recommended Action: Approve, via Minute Order, a time extension request to extend the validity of a Site Development Permit and Extension Permit for the construction of a 42,400 square foot, two- story general office building and a 423 space, 4½ level parking structure with a 7.6% parking reduction at 6 Polaris Way (PA15-030).

Motion: Mayor Pro Tem Munzing moved and Councilmember Ackley seconded to approve the recommended actions. Motion carried 5-0.

5.3. A REQUEST TO INCREASE THE NUMBER OF DINING ROOM SEATS IN AN EXISTING RESTAURANT LOCATED AT 22912 PACIFIC PARK DRIVE, SUITE B (TACOS DE

BIRRIA ESTILO GUADALAJARA)
City Manager David Doyle introduced Senior Planner Rose Rivera , who provided an overview. Applicant Jesus Serratos provided additional information. Staff responded to questions regarding floor plan. Councilmembers commented on the matter. Mayor Hurt opened the public hearing. There were no comments. Mayor Hurt closed the public hearing.

Recommended Action: Adopt Resolution No. 2023-27 approving a Conditional Use Permit to increase the number of seats to 40 in an existing restaurant located at 22912 Pacific Park Drive, Suite B (CUP-2023-00012).

Motion: Councilmember Ackley moved and Councilmember Duncan seconded to approve the recommended actions. Motion carried 5-0.

6. DISCUSSION:

None.
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Regular Meeting Minutes

7. CITY MANAGER' S REPORT:

City Manager David Doyle announced Furry Friends Pet Fair to be held from 9:00 a.m. to 12:00 p.m. on September 9, 2023, at Aliso Viejo Ranch; Red Cross Blood Drive to be held from 12:00 p.m. to 6:00 p.m. on September 13, 2023, at Aliso Viejo Ranch; and registration for recreation programs.

8. ANNOUNCEMENTS / COUNCIL COMMENTS / COMMITTEE UPDATES:

Councilmember Chun:
 Commented on Furry Friends Pet Fair
 Attended Soka University Tour Our Town
 Attended Aliso Niguel High School Dance Team Car Wash  Attended Aliso Viejo Chamber of Commerce After Hours Event  Attended meeting with OCFA, AVCA, and Moulton Niguel Water District  Announced Aliso Viejo Youth Council Music for Maui fundraising event Councilmember Duncan:
 Commented on OCSD bicycle and pedestrian safety enforcement operation Councilmember Ackley:
 Wished students well in the new school year
 Requested adjournment with moment of silence in remembrance of 9/11 Mayor Pro Tem Munzing:
 Attended Aliso Viejo Chamber of Commerce After Hours event Mayor Hurt:
 Expressed appreciation to staff

9. ADJOURNMENT:

Mayor Hurt adjourned the meeting at 7:47 to the regularly scheduled meeting of October 4, 2023.

Respectfully submitted: Approved by:
________________________ ________________________

MITZI ORTIZ, MMC RICHARD HURT

CITY CLERK MAYOR
14 City of Aliso Viejo

AGENDA ITEM
DATE: October 4, 2023
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services

SUBJECT: ACCOUNTS PAYABLE
Recommended Action:

Ratify accounts payable checks and electronic funds transfers issued between August 18 and September 14, 2023, in the amount of $1,341,486.05.

Fiscal Impact:

Expenditures in the amount of $1,341,486.05.

Background:

The City issues accounts payable checks on bi-weekly basis and presents it to City Council for ratification at its next regularly scheduled City Council meeting.

Discussion:

The attached register containing checks and electronic funds transfers between August 18 and September 14, 2023, for a total of $1,341,486.05 is being presented for ratification.

All payments have been made in compliance with the City’s purchasing policy and procedures. Payments have been reviewed and approved by the appropriate departmental staff. The issued accounts payable checks and electronic funds transfers have been reviewed and deemed in accordance with the fiscal year budget by the Director of Financial Services.

Attachment:

1. Accounts Payable Report
15 Accounts Payable
Description (Item)Vendor Name Amount
101 - GENERAL FUND
SEP'23 LIFE INSURANCEUNITED OF OMAHA LIFE INSURANCE CO. 1,645.28 SEP'23 CALPERS HEALTH PREMIUMCALPERS HEALTH 24,202.30
SEP'23 HEALTH PREMIUM - RCCALPERS HEALTH 1,815.15
FY22-23 TRUE UP RENEWABLE FARMSAARON FLORA (18,156.05)
PVR-2022-00033_1 ELDERWOOD_PERMIT REFUNDSUNRUN INSTALLATION SERVICES 153.50 PVR-2022-00016_26 WINDFLOWER_PERMIT REFUNDSUNRUN INSTALLATION SERVICES 153.50 PVR-2022-00045_23402 EL REPOSA_PERMIT REFUNDSUNRUN INSTALLATION SERVICES 153.50 PVR-2022-00114_32 MALLORN DR_PERMIT REFUNDSUNRUN INSTALLATION SERVICES 153.50 PVR-2022-00084_3 LAURELWOOD ST_PERMIT REFUNDSUNRUN INSTALLATION SERVICES 153.50 PVR-2022-00033_1 ELDERWOOD_FIXTURE FEE REFUNDSUNRUN INSTALLATION SERVICES 38.30 P#20-1109 REFUND-SUNNY KIM/3 BIRCHMONTSUNNY KIM 500.00
CE#21-85-REFUND OF APPEAL DEPOSIT-JASON BIRDJASON BIRD 460.00 BLDR-2022-00079_35 SANTA CLARA ST_ADVANCED PERMITADVANCED PERMIT SERVICES 93.31 BLDG-2020-0685_25 ALISAL CT_SAMUEL HUBINETTE RACINSAMUEL HUBINETTE RACING INC 2,456.51 BLDG-2020-0685_25 ALISAL CT_SAMUEL HUBINETTE RACINSAMUEL HUBINETTE RACING INC 259.71 BLDG-2020-0685_25 ALISAL CT_SAMUEL HUBINETTE RACINSAMUEL HUBINETTE RACING INC 175.62 BLDG-2020-0685_25 ALISAL CT_SAMUEL HUBINETTE RACINSAMUEL HUBINETTE RACING INC 274.65 CD-2023-00053_21 SPICEWOOD_PROFESSIONAL ROOFINGPROFESSIONAL ROOFING 500.00 OCT'23 DENTAL INSURANCECHOICE BUILDER 1,868.05
OCT'23 DENTAL - RCCHOICE BUILDER 145.88
OCT'23 DENTAL - RHCHOICE BUILDER 96.90
OCT'23 DENTAL - TACHOICE BUILDER 47.64
OCT'23 VISION INSURANCECHOICE BUILDER 307.36
OCT'23 VISION - RHCHOICE BUILDER 15.03
OCT'23 VISION - RCCHOICE BUILDER 24.19
JUL'23 ENG2247/SUMMIT IV 15-25 ENTERPRISE INSPECTRJM DESIGN GROUP INC 492.30 JUL'23 CITY LIGHTS LANDSCAPE - 3RD PLAN CHECKRJM DESIGN GROUP INC 257.00 JUL'23 FERREIRA (MNWD) -R.BRUNELLCHARLES ABBOTT ASSOC INC 735.00 JUL'23 SCE -R.BRUNELLCHARLES ABBOTT ASSOC INC 498.75
JUL'23 MNWD -R.BRUNELLCHARLES ABBOTT ASSOC INC 918.75
JUL'23 COX -R.BRUNELLCHARLES ABBOTT ASSOC INC 52.50
JUL'23 GAS COMPANY -R.BRUNELLCHARLES ABBOTT ASSOC INC 52.50 JUL'23 CITY LIGHTS GRADING -R.BRUNELLCHARLES ABBOTT ASSOC INC 52.50 JUL'23 15-25 ENTERPRISE SUMMIT IV -R.BRUNELLCHARLES ABBOTT ASSOC INC 105.00 JUL'23 WEBBS GRAINWORKS-R.BRUNELLCHARLES ABBOTT ASSOC INC 105.00 JUL'23 GLAUKOS1 GRADING -R.BRUNELLCHARLES ABBOTT ASSOC INC 131.25 JUL'23 COMMONS GRADING -R.BRUNELLCHARLES ABBOTT ASSOC INC 236.25 JUL'23 GLAUKOS2 GRADING - R.BRUNELLCHARLES ABBOTT ASSOC INC 288.75 JUL'23 GLAUKOS2 - S.WILSONCHARLES ABBOTT ASSOC INC 95.00 JUL'23 GLAUKOS1 - S.WILSONCHARLES ABBOTT ASSOC INC 95.00 JUL'23 COMMONS - S.WILSONCHARLES ABBOTT ASSOC INC 142.50 ELEC-2023-00028_7 JOURNEY_WEBBS GRAINWORKS_REFUNDROBERT TERRY BUNYAN 50.04 ELEC-2023-00028_7 JOURNEY_WEBBS GRAINWORKS_REFUNDROBERT TERRY BUNYAN 21.48 ELEC-2023-00028_7 JOURNEY_WEBBS GRAINWORKS_REFUNDROBERT TERRY BUNYAN 3.00 ELEC-2023-00028_7 JOURNEY_WEBBS GRAINWORKS_REFUNDROBERT TERRY BUNYAN 2.50 BLDC-2023-00071_1 GOLDEN RAIN_JIM MURRAY ROOFINGJIM MURRAY ROOFING INC 1,500.00 23,372.40

CITY COUNCIL
SEP'23 HEALTH PREMIUM PEMHCA MINIMUM - RCCALPERS HEALTH 151.00 AUG'23 CITY COUNCIL PHONE LINESAT&T 236.61
DL 7/31 RC-LOCC CONF-FLIGHTS-9/20-9/22US BANK PURCHASING CARD PROGRAM 295.96 DL 7/24 RC-LOCC CONF-REGISTRATION-9/20-9/22US BANK PURCHASING CARD PROGRAM 650.00 DL 7/24 RH-LOCC CONF-REGISTRATION-9/20-9/22US BANK PURCHASING CARD PROGRAM 650.00 CITY COUNCIL TOTAL: 1,983.57

CITY MANAGER
SEP'23-PG-HEALTH PREMIUMCALPERS HEALTH 151.00
16 Description (Item)Vendor Name Amount
AUG'23 HUMAN RESOURCE PHONEAT&T 50.34
AUG'23 CITY MANAGER PHONEAT&T 50.34
SEP'23 DENTAL - CCCHOICE BUILDER (65.71)
SEP'23 VISION - CCCHOICE BUILDER (6.48)
DD 7/25 CM FASTRACK/TOLL ROADS MONTHLY CHARGESUS BANK PURCHASING CARD PROGRAM 335.00 DD 8/10 PARKING-AVALON BAY-CM MEETINGUS BANK PURCHASING CARD PROGRAM 8.75 DL 7/27 OCCMA CATERING-AUGUST LUNCHEON-8/2US BANK PURCHASING CARD PROGRAM 3,345.51 DL 8/10 OCCMA JUNE RETREAT ATTENDANCE-SK & MOUS BANK PURCHASING CARD PROGRAM 116.00 DL 8/10 OCCMA DD MEMBERSHIP - 1/2*US BANK PURCHASING CARD PROGRAM 475.00 CITY MANAGER TOTAL: 4,459.75

ECONOMIC DEVELOPMENT
8/1/23-7/31/24 COMMERCIAL REAL ESTATE SUBSCRIPTIONCOSTAR REALTY INFORMATION, INC 4,977.00 JUL'23-BUS OF THE MONTH_CHUPONCITOERIC WINTER 772.19
AUG'23-BUS OF MONTH_CODE NINJASERIC WINTER 772.19
ECONOMIC DEVELOPMENT TOTAL: 6,521.38

HUMAN RESOURCES
AUG'23-RW/SB/KD SECURE LIVE SCAN FEESCHARLES C STILL 186.00 DL 8/09 OA PANEL SBUX-DL-CC-MO-JJ-CNUS BANK PURCHASING CARD PROGRAM 26.65 PC 8/9 OA PANEL LUNCH-EUREKA-PC-MO-CN-JJ-CCUS BANK PURCHASING CARD PROGRAM 124.52 HUMAN RESOURCES TOTAL: 337.17

CITY CLERK
MO 8/21 PARMA PUBLIC ENTITY MEMBERSHIPUS BANK PURCHASING CARD PROGRAM 300.00 DL 8/10 OCCMA AUG LUNCHEON - MO ATTENDANCE - 2/2*US BANK PURCHASING CARD PROGRAM 63.00 MUNI CODE-WEB UPD 2PGS W. PICS/TBLS ORD2023-236ICC GENERAL CODE, INC 159.00 CITY CLERK TOTAL: 522.00

CITY ATTORNEY
JUL'23 BBK GENERAL RETAINER LEGAL SERVICESBEST BEST & KRIEGER 24,150.00 JUL'23 BBK LABOR & EMPLOYMENTBEST BEST & KRIEGER 292.50 JUL'23 BBK LABOR & BENEFITSBEST BEST & KRIEGER 1,072.50 JUL'23 MAJOR GENERAL PLAN UPDATEBEST BEST & KRIEGER 1,127.10 JUL'23 BBK AIR FREEDOM LANEBEST BEST & KRIEGER 2,149.50 JUL'23 BBK GENERAL LITIGATIONBEST BEST & KRIEGER 2,605.00 JUL'23 BBK 89 PLAYA CIRCLEBEST BEST & KRIEGER 1,323.90
JUL'23 BBK GENERAL PLAN TOWN CTR SPECIFIC PLANBEST BEST & KRIEGER 317.90 CITY ATTORNEY TOTAL: 33,038.40

FINANCE
SEP'23 CALPERS ADMIN FEECALPERS HEALTH 83.23
SEP'23 CALPERS ADMIN FEECALPERS HEALTH 6.29
JUN'23 PARS REP FEESPARS 300.00
FY22-23 GASB 75 ACTUARIAL REPORTMACLEOD WATTS INC 1,325.00 OCT'23 ADMIN FEECHOICE BUILDER 35.00
AUG'23 FINANCE SUPPLIES - LOGITECH MOUSESTAPLES ADVANTAGE 53.86 AE 7/31 LMS VIRTUAL TRAINING REGISTRATIONUS BANK PURCHASING CARD PROGRAM 35.00 AE 8/01 GOVT. FINANCE OFFICERS RENEWALUS BANK PURCHASING CARD PROGRAM 305.00 JUL-SEP'23 PROPERTY TAX CONTRACT SERVICESHDL COREN & CONE 1,826.31 FINANCE TOTAL: 3,969.69

INFORMATION TECHNOLOGY
AUG'23 ACCT#0202 CH CABLE TVCOX COMMUNICATIONS, INC 178.10 AUG'23 ACCT#9302 CH SERVER ROOM INTERNETCOX COMMUNICATIONS, INC 85.39 APR'23 INSTALL NEW CAMERAS&REPAIR EXISTING NETWORKDIRECT SOURCE COMMUNICATION INC 9,132.07 AUG'23 EOC PHONES LINESAT&T 107.67
AUG'23 CITY HALL MIFIAT&T 163.96
AUG'23 FLEET COMPLETE GPSAT&T 203.72
AUG'23 EOC MIFIAT&T 160.96
AUG'23 CH AT&T FIBER INTERNET SERVICEAT&T 1,695.39
8/23/23-9/22/23 CH O365 - LICENSES & SUPPORTTANGENT COMPUTERS INC 2,999.86 SEP'23 CH-ALARM/POTS LINEAT&T 2,243.53
AUG'23 HP M454 TONERSTAPLES ADVANTAGE 324.64
IA 7/28 EOC YOUTUBE SUBSCRUS BANK PURCHASING CARD PROGRAM 72.99 IA 8/9 GODADDY.COM CITYOFALISOVIEJO.COMUS BANK PURCHASING CARD PROGRAM 17.88 IA 8/02 STELLAR DATA RECOVERYUS BANK PURCHASING CARD PROGRAM 49.95 IA 8/16 WAITWHILE SUBSCRIPTIONUS BANK PURCHASING CARD PROGRAM 159.00 SEP'23 CH GOTO VOIP SERVICE & SUPPORTGOTO COMMUNICATIONS 1,990.75 17 Description (Item)Vendor Name Amount
SEP'23 OFFSITE BACKUP STORAGELUNAVI, INC 1,267.98
INFORMATION TECHNOLOGY TOTAL: 20,853.84

NON-DEPARTMENTAL
JUN'23 2504EX (FRONT COUNTER)-PRINTS-LATECHGRICOH USA 5.00 SEP'23 38 COLONIAL WAY HOA FEESVANTIS MAINTENANCE CORPORATION 374.79 AUG'23 VISTA PARK LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 1,028.96 8/17/23-COUNCIL MAIL OUTGOING_RH TO RLLFEDERAL EXPRESS 11.45 6/19/23-7/17/23 METER#2206 VISTA WATER SVCMOULTON NIGUEL WATER DIST 616.45 7/17/23-8/14/23 METER#2206 VISTA WATER SVCMOULTON NIGUEL WATER DIST 984.75 FY23-24 ASCAP MUSIC LICENSEASCAP 435.00
SEP'23 - RECORDS OFF SITE STORAGECERTIFIED RECORDS MANAGEMENT 443.68 SEP'23 RICOH C5200S COPY ROOM LEASE (3260)RICOH USA 727.27 SEP'23 RICOH C5200S COPY ROOM LEASE TAX (3260)RICOH USA 2.65 JUL'23 CH COFFEE/WATER FILTRATION & FLTR SVCBLUETRITON BRANDS INC 59.00 AUG'23-CH-COFFEE/WATER FILTRATION & FLTR SVCBLUETRITON BRANDS INC 59.00 8/25 - MO BUSINESS SESSION/1 PHOTOSIMONSON PHOTOGRAPHY, INC 175.00 8/17 CH BOTTLED WATER SERVICE_5 CASESDS SERVICES OF AMERICA, INC 54.94 BUSINESS CARDS - AVRIPROMOTEU.COM INC 67.83
WEBSITE BANNER UPDATECIVICPLUS INC 160.00
AUG'23 - CH FIRST AID SUPPLIESCINTAS CORPORATION NO. 2 156.24 AUG'23 - COPY&BREAKROOM SUPPLIES NON DEPARTMENTALSTAPLES ADVANTAGE 365.16 QUADIENT POSTAGE-ADDED 8/31/23QUADIENT FINANCE USA, INC 500.00 JUL'23-9.11 HRS-PIO/MAYORS OUTREACHKYRSTI NICOLE ASHMALL 819.90 AUG'23-4.99 HRS-PIO_GENERALKYRSTI NICOLE ASHMALL 449.10 LL 8/16 COSTCO DELIVERYUS BANK PURCHASING CARD PROGRAM 265.89 LL 8/16 CC DINNER LUNA GRILLUS BANK PURCHASING CARD PROGRAM 17.76 LL 8/16 CC DINNER LUNA GRILLUS BANK PURCHASING CARD PROGRAM 306.91 SEP'23 35 PLAYA CIR HOA FEES + AUG'23 LATE CHGGLENWOOD MAINTENANCE CORPORATION 163.52 NON-DEPARTMENTAL TOTAL: 8,250.25
C. S. ADMINISTRATION
SEP'23-HW-HEALTH PREMIUMCALPERS HEALTH 151.00
SEP'23-DP-HEALTH PREMIUMCALPERS HEALTH 151.00
IA 8/03 OPAH SEAFOOD - IA CC EM MOUS BANK PURCHASING CARD PROGRAM 116.98 8/17 JB-DOMINOES - STAFF MEETINGUS BANK PURCHASING CARD PROGRAM 60.25 8/17 JB-DOMINOES - STAFF MEETINGUS BANK PURCHASING CARD PROGRAM 37.70 7/25 JB-TARGET-STORAGE BINUS BANK PURCHASING CARD PROGRAM 23.26 7/25 JB-SMART AND FINAL - BREAKROOM SUPPLIESUS BANK PURCHASING CARD PROGRAM 30.16 8/14 JB - COSTCO - OFFICE SUPPLIESUS BANK PURCHASING CARD PROGRAM 32.30 JNL 8/02 RALPHS PET FAIR SUPPLIES - 1/2*US BANK PURCHASING CARD PROGRAM 21.99 C. S. ADMINISTRATION TOTAL: 624.64

IGLESIA PARK
AUG'23 IGLESIA LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 6,846.00 AUG'23 IGLESIA PARK MAINTENANCEPV MAINTENANCE INC 571.55 AUG'23 ACCT#7997 IGELSIA PARKSO CAL EDISON 238.31
JUL'23 MTR#4114 IGLESIA PARKEL TORO WATER DISTRICT 889.23 JUL'23 MTR#3499 IGLESIA PARKEL TORO WATER DISTRICT 1,032.33 JUN'23 MTR#4114 IGLESIA PARKEL TORO WATER DISTRICT 580.77 JUN'23 MTR#3499 IGLESIA PARK 2EL TORO WATER DISTRICT 653.91 IGLESIA PARK TOTAL: 10,812.10

IGLESIA BUILDING
AUG'23 IGLESIA JANITORIAL SERVICETEAM ONE MANAGEMENT SERVICES 1,250.00 AUG'23 PEST CONTROL SERVICES IGLESIA PARKZAPP PEST MANAGEMENT 75.00 SEP'23 IGLESIA - ACCESS CONTROLSONITROL ORANGE COUNTY LLC 104.18 AUG'23 ACCT#7997 IGLESIA BLDGSO CAL EDISON 2,975.95
JUL'23 MTR#5016 IGLESIA BLDGEL TORO WATER DISTRICT 232.16 JUN'23 MTR#5016 IGLESIA BUILDINGEL TORO WATER DISTRICT 227.81 IGLESIA BUILDING TOTAL: 4,865.10

PLANNING
SEP'23-MF-HEALTH PREMIUMCALPERS HEALTH 151.00
JUL'23 JK GB PLANNING CONSULTANT SERVICESCIVIC SOLUTIONS INC 6,411.00 AUG'23 JK GB PLANNING CONSULTING SERVICESCIVIC SOLUTIONS INC 10,657.00 AUG'23 GB PLANNING CONSULTING SERVICESCIVIC SOLUTIONS INC 172.00 JUL'23 AFFORD.HOUSING CONSULTANT SERVICESREBECCA J CAHA 2,061.42 18 Description (Item)Vendor Name Amount
IA 7/30 CONSTANTCONTACT.COM SUBSCRUS BANK PURCHASING CARD PROGRAM 45.00 RR 8/31 APA 7TH ANNUAL HISTORIC SYMP PARKING REIMBROSE RIVERA 10.00 SK 08/31OC-APA 7TH ANNUAL HIST SYMP-RRIVERA & SKIMUS BANK PURCHASING CARD PROGRAM 40.00 PLANNING TOTAL: 19,547.42

BUILDING
JUL'23 BUILDING AND SAFETY CONTRACT SERVICESCHARLES ABBOTT ASSOC INC 56,558.58 SK 08/31 OC-APA 7TH ANNUAL HIST SYMP-EMCCANNUS BANK PURCHASING CARD PROGRAM 25.00 BUILDING TOTAL: 56,583.58

CODE ENFORCEMENT
JUL'23 CODE ENFORCEMENT CONTRACT SERVICESCHARLES ABBOTT ASSOC INC 8,585.00 CODE ENFORCEMENT TOTAL: 8,585.00

ENGINEERING (GENERAL)
AUG'23 PUBLIC WORKS TABLETSAT&T 120.72
SP 8/16 APWA CONFERENCE EXPOSITIONUS BANK PURCHASING CARD PROGRAM 50.00 SEP'23 WAREHOUSE LEASEPV MAINTENANCE INC 1,035.00
FY23-24 WCB ALISO CREEK RESTORATION MATHING FUNDSLAGUNA CANYON FOUNDATION 10,000.00 AUG'23 LANDSCAPE INSPECTION SERVICESRICHARD FISHER ASSOCIATES 4,877.21 JUL'23 NPDES SERVICESCHARLES ABBOTT ASSOC INC 12,587.50 JUL'23 SOLID WASTE SERVICECHARLES ABBOTT ASSOC INC 5,717.50 EM 8/17 PWX 2023 REGISTRATION 8/28/23 EXPOUS BANK PURCHASING CARD PROGRAM 50.00 FY23-24 NPDES WQ IMPLEMENTATION_COUNTY OF ORANGECOUNTY OF ORANGE 885.35 ENGINEERING (GENERAL) TOTAL: 35,323.28

STREET MAINTENANCE
AUG'23 STREET MAINTENANCEPV MAINTENANCE INC 21,414.06
AUG'23 TROPICAL STORM HILARY RESPONSEPV MAINTENANCE INC 6,641.50 JUL'23 STREET MAINTENANCE INVESTIGATIONCHARLES ABBOTT ASSOC INC 5,066.25 STREET MAINTENANCE TOTAL: 33,121.81

LAW ENFORCEMENT-CONTRACT
SEP'23 LAW ENFRCMNT |BODY CAMERAS | IN-CAR VIDEOCOUNTY OF ORANGE 814,017.58 LAW ENFORCEMENT-CONTRACT TOTAL: 814,017.58

LAW ENFORCEMENT-OTHER
AUG'23 PALS PHONE LINEAT&T 45.31
8/06-8/19/23 184 HRS-CROSSING GUARD SERVICESALL CITY MANAGEMENT SERVICES 5,694.80 RD 7/28 THE TOLL ROADS FOR CITY VEHICLES AND AVPSUS BANK PURCHASING CARD PROGRAM 575.00 RD 7/26 BATTERY FOR PALS VEHICLEUS BANK PURCHASING CARD PROGRAM 239.65 RD 7/24 TRAINING ANNUAL MADD CONFERENCEUS BANK PURCHASING CARD PROGRAM 70.00 RD 8/02 ANNUAL INTERNATIONAL CPTEDUS BANK PURCHASING CARD PROGRAM 68.98 LAW ENFORCEMENT-OTHER TOTAL: 6,693.74

CRIME PREVENTION
MAR'23 CRIME PREVENTION OFFICE SUPPLIESSTAPLES ADVANTAGE 293.02 CRIME PREVENTION TOTAL: 293.02
EOC
SL 8/03 IAEM MEMBERSHIP DUESUS BANK PURCHASING CARD PROGRAM 199.00 SL 8/08 EVAC MGR KITSUS BANK PURCHASING CARD PROGRAM 19.38 SL 8/08 EVAC MGR KITSUS BANK PURCHASING CARD PROGRAM 98.42 SL 8/06 DISASTER FOOD AND AED SIGNSUS BANK PURCHASING CARD PROGRAM 176.98 SL 8/08 NATIONAL PREPAREDNESS MONTH -12 GIFTCARDSUS BANK PURCHASING CARD PROGRAM 185.00 SL 7/24 STOP THE BLEED KIT FOR BUNKHOUSEUS BANK PURCHASING CARD PROGRAM 641.06 9/7 - COACHING SESSION & ASSESSMENTS - S LIMONESLEE BROEKMAN 500.00 PC 8/20 EOC-TS HILARY-LUNCH-BEYOND THAI-PC-SLUS BANK PURCHASING CARD PROGRAM 55.94 EOC TOTAL: 1,875.78
GENERAL FUND TOTAL: 1,095,651.50
102 - GEN. FD-CITY HALL

NON-DEPARTMENTAL
AUG'23 CH JANITORIAL SERVICESTEAM ONE MANAGEMENT SERVICES 2,700.00 AUG'23 PEST CONTROL SERVICES CHZAPP PEST MANAGEMENT 75.00 AUG'23 CH PLANT MAINTENANCEFOSTERS' GARDENS INC 115.00
AUG'23 CH LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 678.00 7/17/23-8/14/23 METER#8510 CH WATER SVCMOULTON NIGUEL WATER DIST 166.34 6/19/23-7/17/23 METER#8510 CH WATER SVCMOULTON NIGUEL WATER DIST 163.80 6/19/23-7/17/23 METER#6010 CH WATER SVCMOULTON NIGUEL WATER DIST 144.01 19 Description (Item)Vendor Name Amount
7/17/23-8/14/23 METER#6010 CH WATER SVCMOULTON NIGUEL WATER DIST 161.79 6/19/23-7/17/23 METER#7051 CH WATER SVCMOULTON NIGUEL WATER DIST 336.23 7/17/23-8/14/23 METER#7051 CH WATER SVCMOULTON NIGUEL WATER DIST 336.23 EVACUATION MAPS CHSTARFISH SIGNS & GRAPHICS, INC 720.73 SEP'23 CH REPLACE STICKER ON GLASS DOORUNITED BUILDING AND DEVELOPMENT SERVICES LLC 946.00 SEP'23 CITY HALL - ACCESS CONTROLSONITROL ORANGE COUNTY LLC 580.38 SEP'23 CITY HALL - INTRUSION DETECTIONSONITROL ORANGE COUNTY LLC 367.04 FY23-24 CH FIRE EXTINGUISHER MAINTORANGE COUNTY FIRE PROTECTION 175.50 SEP'23 CH-ELEVATOR MAINTENANCETHURSTON ELEVATOR CONCEPTS INC 134.00 JUL-SEP'23 CH ASO ASSOCIATION DUESPACIFIC PARK II ASSOCIATION 1,275.00 8/01/23-8/30/23 MTR#16122180 CH GAS SERVICETHE GAS COMPANY 66.38 AUG'23 ACCT#7189 CITY HALLSO CAL EDISON 10,267.80
EM 8/11 THE HOME DEPOT - CH CARPET REPAIRUS BANK PURCHASING CARD PROGRAM 82.25 KB 8/10 THE HOMEDEPOT - CARPET REPAIR CHUS BANK PURCHASING CARD PROGRAM 43.46 KB 8/02 FERGUSON SUPPLY-TOILET FLUSH DIAPHR WMS CHUS BANK PURCHASING CARD PROGRAM 139.24 KB 7/31 JOHNSTONE SUPPLY - RUN CAPACITOR A/C CHUS BANK PURCHASING CARD PROGRAM 7.76 NON-DEPARTMENTAL TOTAL: 19,681.94
GEN. FD-CITY HALL TOTAL: 19,681.94
103 - GF-AV RECREATION SERVICES

RECREATION SERVICES
PROJECTOR REPLACEMENT LAMPSWESTERN A/V 909.14
AVR CABINETSMOEN WOODWORKS, INC 8,750.00
AUG'23 PEST CONTROL SERVICES AVRZAPP PEST MANAGEMENT 95.00 AUG'23 PEST CONTROL SERVICES AVRZAPP PEST MANAGEMENT 125.00 JUL'23 AVR OFFICE SUPPLIESAMAZON CAPITAL SERVICES INC 112.25 AUG'23 PUBLIC WORKS TABLETSAT&T 40.24
AUG'23 RECREATION PHONE LINESAT&T 181.24
AUG'23 AVR INTERIOR PLANT MAINTENANCEFOSTERS' GARDENS INC 110.00 AUG'23 AVR FIRST AID SUPPLIESCINTAS CORPORATION NO. 2 146.64 SUMMER2023-RSU068/RSU027 BALLET-2 PARTICIPANTSROXANNE BELL 224.00 SUMMER2023-LATE/RSU025/RSU002/RSU003-15 PARTICIPKIMBERLY DOWNEY ESMOND 667.00 AUG'23 AVR AT&T INTERNET SERVICEAT&T 1,009.89
SUMMER2023-RSU087/RSU083 PILATES YOGA-5 PARTICIPANRUIHONG LI 189.00 SUMMER2023-RSU102 BOXING-2 PARTICIPANTSSARA GUTIERREZ 96.00 SUMMER2023-RSU064/RSU066 HIP HOP-12 PARTICIPANTSFITNESS WITH FLAVOR LLC 288.00 SUMMER2023-RSU048 KARATE-1 PARTICIPANTWADORYU USA INC 49.00 SUMMER2023-RSU107/RSU109 YOGA-9 PARTICIPANTSJOY E. TORRES 432.00 SUMMER2023-RSU059/RSU062/RSU097/RSU100-33 PARTICIPCAROLYN WOJCIECHOWSKI 534.00 SUMMER2023-RSU029 GUITAR/UKULELE-7 PARTICIPANTSRONALD GORMAN 294.00 AUG'23 AVR LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 2,262.67 SUMMER2023-ETF002 ETTIQUETTE-8 PARTICIPANTSJENNIFER ANDRUS-NELSON 702.00 SUMMER2023-BCL009/LMS009 BEACH CAMP-7 PARTICIPANTSBEELER AQUATICS, INC 1,344.00 SUMMER2023-EVD001 ART-17 PARTICIPANTSERNA VAN DYK 2,199.00 SUMMER2023-PAE059/PAE004 CHEM & SCIENCE-31 PARTICLAURELINDA HAUKSSON 3,989.40 SUMMER2023-TNK001 GYMNASTICS-8 PARTICIPANTSTUMBLE-N-KIDS, INC 1,266.00 SUM23-SKY003/RSU050/RSU016/RSU017/RSU018-32 PARTICSKYHAWKS SPORTS ACADEMY, INC 2,619.60 AUG'23 AVR SMOKE DETECTOR TESTERW W GRAINGER INC 38.04
AUG'23 AVR SMOKE DETECTOR SPRAY LUBRICANTW W GRAINGER INC 152.07 6/19/23-7/17/23 METER#0819 FARM WATER SVCMOULTON NIGUEL WATER DIST 128.77 7/17/23-8/14/23 METER#0819 FARM WATER SVCMOULTON NIGUEL WATER DIST 123.69 6/26/23-7/24/23 METER#1100 FARM WATER SVCMOULTON NIGUEL WATER DIST 142.55 6/19/23-7/17/23 METER#5356 AVR WATER SVCMOULTON NIGUEL WATER DIST 336.23 7/17/23-8/14/23 METER#5356 AVR WATER SVCMOULTON NIGUEL WATER DIST 336.23 6/19/23-7/17/23 METER#7892/6534 AVR WATER SVCMOULTON NIGUEL WATER DIST 599.74 7/17/23-8/13/23 METER#7892/6534 AVR WATER SVCMOULTON NIGUEL WATER DIST 615.81 6/26/23-7/24/23 METER#0958 AVR WATER SVCMOULTON NIGUEL WATER DIST 267.15 6/19/23-7/17/23 METER#0973 AVR WATER SVCMOULTON NIGUEL WATER DIST 105.71 7/17/23-8/14/23 METER#0973 AVR WATER SVCMOULTON NIGUEL WATER DIST 88.13 8/23/23-9/22/23 AVR O365 - LICENSES & SUPPORTTANGENT COMPUTERS INC 529.39 JUL'23 RENEWABLE FARMS - 90% GROSS REVENUEAARON FLORA 16,866.00 JUL'23 RENEWABLE FARMS - CREDIT CARD FEESAARON FLORA (374.80) JUL'23 RENEWABLE FARMS - UTILITIESAARON FLORA (1,355.54) SEP'23 AVR-ALARM/POTS LINEAT&T 747.84
20 Description (Item)Vendor Name Amount
JUL-AUG'23 DRY CLEANING SERVICESPRESS-TIGE ENTERPRISES INC 3,146.47 SEP'23 AVR CASH COURIER SERVICEGARDAWORLD 412.94
SEP'23 AVRANCH - ACCESS CONTROLSONITROL ORANGE COUNTY LLC 510.07 SEP'23 AVCENTER & AVAQUATICS - ACCESS CONTROLSONITROL ORANGE COUNTY LLC 119.24 3/25/22 AVMS FACILITY PERMIT #12998CAPISTRANO UNIFIED SCHOOL DISTRICT 488.04 1/22-3/19/22 AVMS FACILITY PERMITS #13020CAPISTRANO UNIFIED SCHOOL DISTRICT 389.61 1/22-2/19/22 AVMS FACILITY PERMITS #1302CAPISTRANO UNIFIED SCHOOL DISTRICT 18.75 2/6-3/27/22 AVMS FACILITY PERMITS #13023CAPISTRANO UNIFIED SCHOOL DISTRICT 12.00 1/23-4/3/22 CANYON VISTA FACILITY PERMITS #13281CAPISTRANO UNIFIED SCHOOL DISTRICT 359.64 JUN'23 AVR JANITORIAL SUPPLIESGORM, INC 278.14
JUN'23 AVR JANITORIAL SUPPLIESGORM, INC 331.60
AUG'23 AVR JANITORIAL SUPPLIESGORM, INC 835.48
AV RANCH JANITORIAL SUPPLIESGORM, INC 127.08
AUG'23 AVR A-FRAME SIGNSWESTAMERICA COMMUNICATIONS INC 1,183.70 AUG'23 AVR EVENT SECURITY SERVICESLYONS SECURITY SERVICE IN 2,520.00 SEP'23 AVR FIRST AID SUPPLIESCINTAS CORPORATION NO. 2 222.51 SUM2023-RSU053 DOG TRAINING-3 PARTCIPANTSCLICKSTART DOG TRAINING ACADEMY, LLC 306.00 FALL2023-FCS154 POETRY WRITING- 6 PARTICIPANTSKIMBERLY KRANTZ 162.00 FALL2023-FCS103 WATERCOLORS-9 PARTICIPANTSERNA VAN DYK 189.00 FALL2023-FCS242 PICKLEBALL-7 PARTICIPANTSL & O ALISO VIEJO, LLC 343.00 AUG'23 ACCT#4551 FARMSO CAL EDISON 1,021.79
AUG'23 ACCT#6247 AVR ELECTRICITYSO CAL EDISON 5,105.98
SEP'23 AVR GOTO VOIP SERVICE & SUPPORTGOTO COMMUNICATIONS 663.58 8/03 JB- WK 9 EXCURSION LONG BEACH AQUARIUMUS BANK PURCHASING CARD PROGRAM 924.70 8/09 JB- SUBWAY WK 10 CITY DAY CAMPUS BANK PURCHASING CARD PROGRAM 29.95 7/25 JB-SMART AND FINAL - CITY DAY CAMP PRIZESUS BANK PURCHASING CARD PROGRAM 26.98 7/26 JB- SUBWAY WK 8 CITY DAY CAMPUS BANK PURCHASING CARD PROGRAM 30.55 8/02 JB- SUBWAY WK 9 CITY DAY CAMPUS BANK PURCHASING CARD PROGRAM 30.55 JNL 8/02JNL RALPHS CITY DAY CAMP ITEMS - 2/2*US BANK PURCHASING CARD PROGRAM 15.96 JNL 8/01 TOWER FANSUS BANK PURCHASING CARD PROGRAM 85.25 KB 8/08 THE HOMEDEPOT -TRASH CAN REPAIR AVRUS BANK PURCHASING CARD PROGRAM 82.15 KB 8/08 DENAULTS -SIGN REPAIR HARDWARE AVRUS BANK PURCHASING CARD PROGRAM 12.34 KB 7/25 THE HOME DEPOT- A/C INSULATION REPAIR FARMUS BANK PURCHASING CARD PROGRAM 34.53 KB 7/25 THE HOME DEPOT- A/C LIQUID LINE INSUL FARMUS BANK PURCHASING CARD PROGRAM 77.54 KB 8/20 FLEXFIRE LEDS - WALKWAY LIGHT REPAIR FARMUS BANK PURCHASING CARD PROGRAM 290.93 RECREATION SERVICES TOTAL: 68,370.13
GF-AV RECREATION SERVICES TOTAL: 68,370.13
203 - GAS TAX

STREET MAINTENANCE
JUL'23 TRAFFIC SIGNAL RESPONSEBEAR ELECTRICAL SOLUTIONS INC 5,416.82 JUL'23 TRAFFIC SIGNAL MAINTENANCE ROUTINEBEAR ELECTRICAL SOLUTIONS INC 3,162.60 AUG'23 MEDIANS LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 1,586.00 6/26/23-7/24/23 METER#8838 MEDIANS WATER SVCMOULTON NIGUEL WATER DIST 131.87 6/26/23-7/24/23 METER#6544 MEDIANS WATER SVCMOULTON NIGUEL WATER DIST 125.60 6/26/23-7/24/23 METER#2066 MEDIANS WATER SVCMOULTON NIGUEL WATER DIST 126.47 AUG'23 STREET MAINTENANCEPV MAINTENANCE INC 26,172.74
AUG'23 STREET SWEEPING SERVICESSCA OF CA LLC 8,668.66
AUG'23 DATABASE MAINT + 34 TICKETSUNDERGROUND SERVICE ALERT OF SOUTHERN CA 69.50 AUG'23 ACCT#2125 GS1 MEDIANSSO CAL EDISON 65.31
AUG'23 ACCT#6377 LS2 ST LIGHTSSO CAL EDISON 1,347.06
AUG'23 ACCT#7241 LS1 ST LIGHTSSO CAL EDISON 16,998.44
AUG'23 ACCT#8254 TC1 ST LIGHTSSO CAL EDISON 3,612.01
JUL'23 MTR#5675 CALLE CORTEZEL TORO WATER DISTRICT 157.34 JUL'23 ACCT#6953 ST LIGHTS & TRAFFIC CTRLRSSAN DIEGO GAS & ELECTRIC 2,894.36 JUN'23 MTR#5675 CALLE CORTEZ MEDIANEL TORO WATER DISTRICT 109.61 STREET MAINTENANCE TOTAL: 70,644.39
GAS TAX TOTAL: 70,644.39
215 - PUBLIC SAFETY GRANTS

LAW ENFORCEMENT-OTHER
SEP'23 ECITATIONS|MTRCYCLE REPLCMNT|MOBILE DATACOUNTY OF ORANGE 5,932.50 21 Description (Item)Vendor Name Amount
SEP'23 AUTOMATED FINGERPRINT IDENTIFICATION SYSTEMCOUNTY OF ORANGE 1,843.00 LAW ENFORCEMENT-OTHER TOTAL: 7,775.50
PUBLIC SAFETY GRANTS TOTAL: 7,775.50
231 - OTHER GRANTS

OTHER GRANTS
7/05/23 SOLAR APP IMPLEMENTATIONTYLER TECHNOLOGIES-INCODE DIVISION 145.00 OTHER GRANTS TOTAL: 145.00
OTHER GRANTS TOTAL: 145.00
241 - TECHNOLOGY FUND

GEN-TECHNOLOGY GRANTS
JUL'23-CC MTG 7/19 & ADMINERIC WINTER 468.38
AUG'23-CC MTG8/16 SPRTSZONE1-2/SITEVST&ADMINUERIC WINTER 680.38 GEN-TECHNOLOGY GRANTS TOTAL: 1,148.76
TECHNOLOGY FUND TOTAL: 1,148.76
251 - FEDERAL GRANTS

OTHER GRANTS
AUG'23 HAZARD MITIGATION PLAN CONSULTANT SERVICESATLAS PLANNING SOLUTIONS 3,891.00 OTHER GRANTS TOTAL: 3,891.00
FEDERAL GRANTS TOTAL: 3,891.00
261 - CITY FAC.-AQUATIC CENTER
FY22-23 AQC RETENTIONPREMIER AQUATIC SERVICES 14,499.60 SEP'23 AQC RETENTIONPREMIER AQUATIC SERVICES (1,208.30) 13,291.30

GEN-AQUATIC CENTER
AUG'23 ACCT#6701 AQC INTERNETCOX COMMUNICATIONS, INC 502.76 AUG'23 PEST CONTROL SERVICES AQCZAPP PEST MANAGEMENT 75.00 AUG'23 AQC JANITORIAL SERVICESTEAM ONE MANAGEMENT SERVICES 2,327.22 AUG'23 AQC LANDSCAPE MAINTENANCENIEVES LANDSCAPE INC 912.48 AUG'23 AQC POOL CHEMICALS - ACIDHASA INC 390.52
6/19/23-7/17/23 METER#6054 AQC WATER SVCMOULTON NIGUEL WATER DIST 377.16 7/17/23-8/14/23 METER#6054 AQC WATER SVCMOULTON NIGUEL WATER DIST 232.38 6/19/13-7/17/23 METER#2996 AQC WATER SVCMOULTON NIGUEL WATER DIST 233.49 7/17/23-8/14/23 METER#2996 AQC WATER SVCMOULTON NIGUEL WATER DIST 233.49 FY22-23 AQC MGMT FEE ROUNDING CORRECTIONPREMIER AQUATIC SERVICES 4.00 SEP'23 AQC CASH COURIER SERVICEGARDAWORLD 476.85
JUL'23AQC POOL MAINTENANCE PARTS-CONTROLLER GAUGESKNORR SYSTEMS INC 61.35 JUL'23 AQC MONTHLY MAINTENANCE SERVICESKNORR SYSTEMS INC 1,993.75 AUG'23 AQC MONTHLY MAINTENANCE SEVICESKNORR SYSTEMS INC 1,983.25 SEP'23 AQC MANAGEMENT FEESPREMIER AQUATIC SERVICES 12,083.00 AUG'23 AQC LAMP REPLACEMENTCONSOLIDATED ELECTRICAL DISTRIBUTORS, INC 162.52 AUG'23 AQC BACKFLOW AND REPAIR OF RISER VALVESSIERRA ANALYTICAL LABS INC 475.00 AUG'23 AQC POOL CHEMICALS CHLORINE & ACIDHASA INC 1,814.10 8/31 AQC EQUIPMENTW W GRAINGER INC 61.07
8/31 AQC CONNECTION FITTINGW W GRAINGER INC 25.71
8/2/23-8/31/23 MTR#15672349 AQC GAS SERVICETHE GAS COMPANY 1,148.50 KB 8/01 THE HOME DEPOT - URINAL ACID CLEAN AQCUS BANK PURCHASING CARD PROGRAM 17.22 GEN-AQUATIC CENTER TOTAL: 25,590.82
CITY FAC.-AQUATIC CENTER TOTAL: 38,882.12
311 - STREET IMPROVEMENTS
#057 CH FURNISH INSTALL PULLBOX AND CAT6 RETENTIONCROSSTOWN ELECTRICAL & DATA, INC 315.51 315.51

STREETS & HIGHWAYS
JUL'23 #134 ALISO CREEK RD REHAB-ENT/SR73 FED SUP.LOCAL AGENCY ENGINEERING, INC 323.00 STREETS & HIGHWAYS TOTAL: 323.00
STREET IMPROVEMENTS TOTAL: 638.51
22 Description (Item)Vendor Name Amount
411 - DEBT SERVICE

DEBT SERVICE
FY 23-24 COP ADMINISTRATION FEETHE BANK OF NEW YORK 1,500.00 DEBT SERVICE TOTAL: 1,500.00
DEBT SERVICE TOTAL: 1,500.00
741 - RENEWABLE FARMS
FY22-23 TRUE UP RENEWABLE FARMSAARON FLORA 33,157.20
33,157.20
RENEWABLE FARMS TOTAL: 33,157.20
GRAND TOTAL: 1,341,486.05
Fund Summary
Payment AmountFund Expense Amount
101 - GENERAL FUND 1,095,651.50 1,095,651.50
102 - GEN. FD-CITY HALL 19,681.94 19,681.94
103 - GF-AV RECREATION SERVICES 68,370.13 68,370.13
203 - GAS TAX 70,644.39 70,644.39
215 - PUBLIC SAFETY GRANTS 7,775.50 7,775.50
231 - OTHER GRANTS 145.00 145.00
241 - TECHNOLOGY FUND 1,148.76 1,148.76
251 - FEDERAL GRANTS 3,891.00 3,891.00
261 - CITY FAC.-AQUATIC CENTER 38,882.12 38,882.12
311 - STREET IMPROVEMENTS 638.51 638.51
411 - DEBT SERVICE 1,500.00 1,500.00
741 - RENEWABLE FARMS 33,157.20 33,157.20
1,341,486.05Grand Total: 1,341,486.05
23 Accounts Payable Payable Dates: 08/18/2023 - 09/14/2023 9/20/2023 3:56:00 PM Page 9 of 11
Report Summary
Fund Summary
Payment AmountFund
101 - GENERAL FUND 1,095,651.50
102 - GEN. FD-CITY HALL 19,681.94
103 - GF-AV RECREATION SERVICES 68,370.13
203 - GAS TAX 70,644.39
215 - PUBLIC SAFETY GRANTS 7,775.50
231 - OTHER GRANTS 145.00
241 - TECHNOLOGY FUND 1,148.76
251 - FEDERAL GRANTS 3,891.00
261 - CITY FAC.-AQUATIC CENTER 38,882.12
311 - STREET IMPROVEMENTS 638.51
411 - DEBT SERVICE 1,500.00
741 - RENEWABLE FARMS 33,157.20
1,341,486.05Grand Total:

Account Summary
Payment AmountAccount Number Account Name
101-1203-000 ACCOUNTS RECEIVABLE 1,815.15
101-2505-000 DENTAL INSURANCE PAY 2,158.47
101-2506-000 MEDICAL INSURANCE PA 24,202.30
101-2507-000 LIFE INSURANCE PAYABL 1,645.28
101-2508-000 VISION INSURANCE PAYA 346.58
101-2603-000 ENGINEERING DEPOSIT 4,258.05
101-2606-000 C & D DEPOSIT 2,500.00
101-2610-000 MISCELLANEOUS DEPOS 460.00
101-32010 BUILDING PERMITS 3,317.32
101-32020 ELECTRICAL PERMITS 348.05
101-32030 PLUMBING PERMITS 175.62
101-32040 MECHANICAL PERMITS 274.65
101-32090 ISSUANCE FEE 21.48
101-34160 PROGRAM REVENUE -18,156.05
101-36440 SCANNING 3.00
101-37505 INFORMATION TECHNOL 2.50
101-4-1101-4206-000 MEDICAL INSURANCE 151.00
101-4-1101-4511-000 COMMUNICATION 236.61
101-4-1101-4520-000 MTGS/CONF./TRNG & D 1,595.96
101-4-1501-4206-000 MEDICAL INSURANCE 151.00
101-4-1501-4207-000 DENTAL INSURANCE -65.71
101-4-1501-4208-000 VISION INSURANCE -6.48
101-4-1501-4225-000 VEHICLE/CELL 335.00
101-4-1501-4511-000 COMMUNICATION 100.68
101-4-1501-4520-000 MTGS/CONF./TRNG & D 3,470.26
101-4-1501-4521-000 MEMBERSHIP & DUES 475.00
101-4-1502-4302-000 ECONOMIC DEVELOPME 6,521.38
101-4-1503-4309-000 OTHER CONTRACTUAL S 186.00
101-4-1503-4612-000 OPERATING SUPPLIES 151.17
101-4-1601-4520-000 MTGS/CONF./TRNG & D 63.00
101-4-1601-4521-000 MEMBERSHIP & DUES 300.00
101-4-1601-4734-000 CODIFICATION 159.00
101-4-2101-4304-000 LEGAL SERVICES 25,515.00
101-4-2101-4532-000 SPECIAL PROJECTS 3,473.40
101-4-2101-4731-000 GENERAL PLAN 1,445.00
101-4-2101-4735-000 LITIGATION 2,605.00
101-4-2501-4301-000 PROFESSIONAL SERVICE 3,151.31
101-4-2501-4309-000 OTHER CONTRACTUAL S 424.52
101-4-2501-4520-000 MTGS/CONF./TRNG & D 35.00
101-4-2501-4521-000 MEMBERSHIP & DUES 305.00
101-4-2501-4601-000 SUPPLIES 53.86
24 Accounts Payable Payable Dates: 08/18/2023 - 09/14/2023 9/20/2023 3:56:00 PM Page 10 of 11
Account Summary
Payment AmountAccount Number Account Name
101-4-3101-4305-000 TECHNOLOGY SERVICES 6,902.46
101-4-3101-4481-000 COMPUTER EXPENSE 13,951.38
101-4-3501-4301-000 PROFESSIONAL SERVICE 1,269.00
101-4-3501-4306-000 WEBSITE SERVICES 160.00
101-4-3501-4422-000 EQUIP RENTAL LEASE - P 727.27
101-4-3501-4431-000 BUILDING & GROUND M 3,168.47
101-4-3501-4471-000 RENT 443.68
101-4-3501-4512-000 POSTAGE 511.45
101-4-3501-4513-000 PRINTING 72.83
101-4-3501-4521-000 MEMBERSHIP & DUES 435.00
101-4-3501-4542-000 INTEREST EXPENSE - LEA 2.65
101-4-3501-4601-000 SUPPLIES 869.34
101-4-3501-4612-000 OPERATING SUPPLIES 590.56
101-4-4101-4206-000 MEDICAL INSURANCE 302.00
101-4-4101-4520-000 MTGS/CONF./TRNG & D 214.93
101-4-4101-4527-000 REC-CITY SPECIAL EVENT 21.99
101-4-4101-4601-000 SUPPLIES 85.72
101-4-4102-4411-000 UTILITIES 3,394.55
101-4-4102-4431-000 BUILDING & GROUND M 7,417.55
101-4-4103-4411-000 UTILITIES 3,435.92
101-4-4103-4431-000 BUILDING & GROUND M 1,429.18
101-4-4401-4206-000 MEDICAL INSURANCE 151.00
101-4-4401-4309-000 OTHER CONTRACTUAL S 19,301.42
101-4-4401-4520-000 MTGS/CONF./TRNG & D 50.00
101-4-4401-4532-000 SPECIAL PROJECTS 45.00
101-4-4402-4520-000 MTGS/CONF./TRNG & D 25.00
101-4-4402-4751-000 C.S-BUILDING 56,558.58
101-4-4403-4761-000 C.S-CODE ENFORCEMEN 8,585.00
101-4-4501-4471-000 RENT 1,035.00
101-4-4501-4520-000 MTGS/CONF/TRNG & DE 100.00
101-4-4501-4562-000 PERMITS 885.35
101-4-4501-4612-000 OPERATING SUPPLIES 120.72
101-4-4501-4701-000 NPDES 22,587.50
101-4-4501-4702-000 AB939-SOLID WASTE 5,717.50
101-4-4501-4741-000 C.S-CITY ENGINEERING 4,877.21
101-4-4503-4771-000 C.S-STREET MAINTENAN 33,121.81
101-4-5101-4308-000 LAW ENFORCEMENT 814,017.58
101-4-5102-4511-000 COMMUNICATION 45.31
101-4-5102-4516-000 FUEL 575.00
101-4-5102-4517-000 VEHICLE MAINTENANCE 239.65
101-4-5102-4520-000 MTGS/CONF./TRNG & D 138.98
101-4-5102-4721-000 C.S-CROSSING GUARDS 5,694.80
101-4-5103-4612-000 OPERATING SUPPLIES 293.02
101-4-5401-4520-000 MTGS/CONF/TRNG & DE 555.94
101-4-5401-4521-000 MEMBERSHIP & DUES 199.00
101-4-5401-4612-000 OPERATING SUPPLIES 1,120.84
102-4-3501-4411-000 UTILITIES 11,642.58
102-4-3501-4431-000 BUILDING & GROUND M 8,039.36
103-4-4105-4305-000 TECHNOLOGY SERVICES 4,489.15
103-4-4105-4309-000 OTHER CONTRACTUAL S 17,161.04
103-4-4105-4411-000 UTILITIES 7,454.98
103-4-4105-4431-000 BUILDING & GROUND M 15,719.57
103-4-4105-4451-000 FARM OPERATING EXPE 16,955.46
103-4-4105-4511-000 COMMUNICATION 221.48
103-4-4105-4561-000 TAXES/FEES/PERMITS 412.94
103-4-4105-4570-000 CITY CAMP EXPENSE 1,058.69
103-4-4105-4601-000 SUPPLIES 1,750.35
103-4-4105-4612-000 OPERATING SUPPLIES 3,146.47
25 Accounts Payable Payable Dates: 08/18/2023 - 09/14/2023 9/20/2023 3:56:00 PM Page 11 of 11
Account Summary
Payment AmountAccount Number Account Name
203-4-4503-4411-000 UTILITIES 25,568.07
203-4-4503-4771-000 C.S-STREET MAINTENAN 36,407.66
203-4-4503-4772-000 C.S-STREET SWEEPING 8,668.66
215-4-5102-4803-000 PUBLIC SAFETY EQUIPM 7,775.50
231-4-6131-4309-000 OTHER CONTRACTUAL S 145.00
241-4-6141-4309-000 OTHER CONTRACTUAL S 1,148.76
251-4-6131-4309-000 OTHER CONTRACTUAL S 3,891.00
261-2103-000 RETENTIONS PAYABLE 13,291.30
261-4-6161-7401-000 EQUIPMENT MAINTENA 4,125.13
261-4-6161-7411-000 UTILITIES 2,727.78
261-4-6161-7421-000 BUILDING & GROUND M 3,969.44
261-4-6161-7425-000 POOL MAINTENANCE 2,204.62
261-4-6161-7445-000 FEES & PERMITS 476.85
261-4-6161-7451-000 MANAGEMENT FEES 12,087.00
311-2103-000 RETENTIONS PAYABLE 315.51
311-4-8301-5601-000 CONSTRUCTION MANAG 323.00
411-4-7101-4542-000 INTEREST & FISCAL CHG 1,500.00
741-2103-000 RETENTIONS PAYABLE 33,157.20
Grand Total: 1,341,486.05
Project Account Summary
Payment AmountProject Account Key
**None** 1,329,623.79
10004309 3,891.00
10014309 145.00
1345601 323.00
9014612 590.56
9264520 945.96
9294520 650.00
9974570 1,058.69
ENG 2241 95.00
ENG 2243 383.75
ENG 2245 131.25
ENG 2247 597.30
ENG 2250 309.50
ENG 2251 378.75
ENG 5003 52.50
ENG 5004 918.75
ENG 5005 498.75
ENG 5008 52.50
ENG 5057 735.00
ENG 5067 105.00
Grand Total: 1,341,486.05
26 City of Aliso Viejo

AGENDA ITEM
DATE: October 4, 2023
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services/City Treasurer SUBJECT: TREASURER’S STATEMENT – AUGUST 2023
Recommended Action:

Receive and file the August 2023 Treasurer’s Statement.

Fiscal Impact:

No Fiscal Impact.

Background:

Per City policy, the Finance Department presents the monthly Treasurer’s Statement for the City Council’s review. This statement shows the cash balances for the various funds, with a breakdown of bank account balances, investment account balances and the effective yield earned from investments.

Discussion:

The City’s portfolio consists of investments in Certificates of Deposits, US Treasuries, US Federal Agencies, Corporate Bonds, and Local Agency Investment Fund (LAIF). All funds invested with LAIF are available for withdrawal within 24 hours.

The Treasurer’s Statement provides information regarding the City’s investment portfolio and activity during the reporting month. The City’s investment portfolio is in compliance with all government codes as well as the City’s investment policy. Interest is credited to the City’s bank account monthly and allocated among the City’s funds. The current portfolio provides sufficient cash flow liquidity to meet the upcoming operating expenses and spending requirements for the next 6 months.

Attachment:

1. August 2023 Treasurer’s Statement
27 TREASURER'S MONTHLY CASH STATEMENT

BEGINNING TRANSFERS ENDING

BALANCE RECEIPTS DISBURSEMENTS IN (OUT) BALANCE
GENERAL FUND 3,980,845.16 $ 2,651,743.60 $ 5,977,416.79 $ (208,194.09)$ 446,977.88 $ TCRF 65,361.61 $ 1,492.31 66,853.92 GAS TAX FUND 714,201.17 $ 277,402.87 96,289.72 895,314.32 MEASURE M 942,318.75 $ 18,335.64 1,960.00 958,694.39 SB1-RMRA 563,844.29 $ 105,857.65 669,701.94 PUBLIC SAFETY GRANTS 176,385.55 $ 4,374.05 20,581.00 160,178.60 (1) AIR QUALITY IMPRVMNT FD 1,211,481.07$ 43,099.22 1,254,580.29 INTEGRATED WASTE MGMT FD 94,893.51$ 2,031.34 4,395.00 92,529.85 OTHER GRANTS (155,647.98)$ 11,548.75 (11,589.12) (178,785.85) TECHNOLOGY GRANT 290,653.20 $ 25,320.29 4,171.93 311,801.56 DEVELOPMENT IMPACT 1, 349,361.63$ 1,349,361.63
FEDERAL GRANTS (53,868.84)$ 70,557.20 61,387.67 3,223.69 (41,475.62) CITY FACILITY - AV CTR 179,758.92 $ 179,758.92 CITY FACILITY - AQUATIC CTR (135,535.22)$ 100,088.94 131,417.60 216,559.52 49,695.64 STREET IMPROVEMENTS 51,710.01 $ 638.51 51,071.50 (2) CAPITAL IMPROVEMENTS 28,595.00 $ 47,073.00 (18,478.00) (2) STORM WATER (3,060.83)$ 3,060.83 - (2) COP CAPITAL - $ - (2) COP 0.00 $ 1,500.00 (1,500.00) AV RANCH FOUNDATION 100.00 $ 100.00
CFD 2005-01 (10,893.90)$ 16,367.14 6,477.24 (1,004.00) RENEWABLE FARMS 35,856.72 $ 33,157.20 2,699.52 COMMUNITY TRUST 5,562.68 $ 5,562.68
TOTALS 9,331,922.50 $ 3,319,731.08 $ 6,398,014.41 $ - $ 6,253,639.17$ SUMMARY OF CASH:

DEMAND DEPOSITS: GENERAL ACCOUNT 751,021.21 $
SAVINGS ACCOUNT: MONEY MARKET 26,006.40 $
INVESTMENTS: LOCAL AG ENCY INVESTMENT FD 5,476,611.56$
TOTAL CASH 6,253,639.17 $
Years to Maturity for August 2023 1.52
Weighted Average Yield for August 2023 3.530%
All investments are placed in accordance with the City of Aliso Viejo's Investment Policy.

The above summary provides sufficient cash flow liquidity to meet the next six month's estimated expenditures.

Other monies held include Cash with Fiscal Agent, Investments, Payroll and AV Center. 38,022,596.94$
Cash With Fiscal Agent COPS/CFD 2005-01 4,915,932.59
Cash With Investment Advisor City Investments 31,278,557.39 AV Center 1,646,242.99
PR Account 179,105.59
Petty Cash 2,758.38
GRAND TOTAL OF CITY FUNDS 44,276,236.11 $
(1) Public Safety Grant includes the MDC and PVS Program Costs budgeted with SLESF funds. (2) Transfers in and out are done on a quarterly basis.

Street Improvements include the Slurry Seal, Traffic Management and Street Improvement Projects.

Capital Improvements include City Hall, AV Ranch, and other city facilities.

Storm Water includes the Dairy Fork and Wood Canyon Emergent Wetland Project.

CITY OF ALISO VIEJO
August 31, 2023
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34 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001

CITY OF ALISO VIEJO

DIRECTOR OF FINANCIAL SVCS/ CITY TREAS
12 JOURNEY , #100
ALISO VIEJO, CA 92656
Account Number: 98-30-007
August 2023 Statement
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
8/8/2023 8/7/2023 RW 1737215 1697608 ANN EIFERT -750,000.00 8/11/2023 8/11/2023 RW 1737441 1697819 ANN EIFERT -750,000.00 8/30/2023 8/30/2023 RW 1738074 1698466 ANN EIFERT -250,000.00 Account Summary
Total Deposit: 0.00 Beginning Balance: 7,226,611.56
Total Withdrawal: -1,750,000.00 Ending Balance: 5,476,611.56 35 August 3.434
July 3.305**
June 3.167
May 2.993
April 2.870
March 2.831
PMIA Average Life(1): 260
LAIF Fair Value Factor(1): 0.984828499
PMIA Daily(1): 3.26
PMIA Quarter to Date(1): 3.01
LAIF Apportionment Rate(2): 3.15
LAIF Earnings Ratio(2): 0.00008636172883763
LAIF Administrative Cost(1)*: 0.06
Treasuries

61.23%
Agencies

23.10%
Certificates of
Deposit/Bank Notes

7.81%
Time
Deposits

3.00%
Commercial
Paper

4.41%
Corporate
Bonds

0.25%
Loans

0.20%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year. ** Revised
Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 09/06/23
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 06/30/23
Chart does not include $2,786,000.00 in mortgages, which equates to 0.002%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
07/31/23
$173.5 billion
36 City of Aliso Viejo

AGENDA ITEM
DATE: October 4, 2023
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services/Treasurer SUBJECT: COMMUNITY FACILITIES DISTRICT NO. 2005-01 (GLENWOOD AT

ALISO VIEJO) LOCAL AGENCY SPECIAL TAX AND BOND
ACCOUNTABILITY ACT COMPLIANCE (SB 165) REPORT FOR FISCAL YEAR ENDED JUNE 30, 2023
Recommended Action:

For City Council to accept and file the Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) Local Agency Special Tax and Bond Accountability Act Compliance (“SB 165”) Report for Fiscal Year June 30, 2023.

Fiscal Impact:

There is no fiscal impact to accept and file the report.

Background:

Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) (“CFD No. 2005-01”) was formed by the City on March 16, 2005, for the purpose of financing the acquisition and/or construction of certain public improvements to be owned by the City, the County of Orange and Moulton Niguel Water District. On December 6, 2007, the City issued the CFD No. 2005-01 (Glenwood at Aliso Viejo) 2007 Special Tax Bonds (the “2007 Bonds”) in the amount of $34,070,000. Proceeds of the Bonds were used to finance the acquisition and construction of the authorized public facilities. On February 13, 2014, the City issued for CFD No. 2005-01 the 2014 Special Tax Refunding Bonds in the aggregate amount of $32,270,000 (“Refunding Bonds”).

Discussion:

The Senate Bill (SB) 165 Report includes information prepared in compliance with the Local Agency Special Tax and Bond Accountability Act (“Accountability Act”). The Accountability Act was enacted by California State Legislature through Senate Bill 165 to provide accountability measures for any local special tax and/or bond measure subject to voter approval on or after January 1, 2001. According to the requirements of the 37

Page 2 of 2 ends

Accountability Act (Sections 50075.1 and 53410 of the Government Code of the State of California), an annual report must be filed by the local agency levying the special tax and/or issuing a bond measure and shall contain a description of the following:
(1) The amount of funds collected and expended.
(2) The status of any project required or authorized to be funded by the special tax and/or bond measure.

The SB 165 Report includes information regarding the amount of annual Special Taxes collected and the authorized expenditures for Fiscal Year 2022-23. A total of $2,413,065 was collected and $2,201,233 was expended on debt service and administrative costs of the CFD. There are no status updates as the projects have been completed.

Environmental:

None
Attachment:

1. Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) Local Agency Special Tax And Bond Accountability Act Compliance (SB 165) Report For Fiscal Year Ended June 30, 2023
38 City of Aliso Viejo
Community Facilities District No. 2005-01
(Glenwood at Aliso Viejo)

Local Agency Special Tax and Bond
Accountability Act Compliance Report
(SB 165)

Fiscal Year Ended June 30, 2023
39 City of Aliso Viejo
David A. Doyle, City Manager
Ann Eifert, Director of Financial Services/City Treasurer City of Aliso Viejo
12 Journey, Suite 100
Aliso Viejo, CA 92656-5335
T. 949.425.2500
F. 949.425.3899

Bond Counsel
Kim Byrens, Partner
Best, Best & Krieger LLP
655 West Broadway, 15th Floor
San Diego, CA 92101-8590
T. 619.525.1300
F. 619.233.6118

Fiscal Agent
Eladia Burgos, Client Services Manager
The Bank of New York Mellon Trust Company, N.A.
400 South Hope Street, Suite 500
Los Angeles, CA 90071
T. 213.630.6231
F. 213.630.6215

Special Tax Administrator
Lyn Gruber/Kara Meverden
Koppel & Gruber Public Finance
334 Via Vera Cruz, Suite 256
San Marcos, CA 92078
T. 760.510.0290
F. 760.510.0288
40 TABLE OF CONTENTS

SECTION I. BACKGROUND ....................................................................... 1 SECTION II. BOND PROCEEDS ................................................................. 2 SECTION III. COLLECTION OF SPECIAL TAXES ............................................ 3 SECTION IV. AUTHORIZED FACILITIES ..................................................... 4 SECTION V. EXPENDITURES TO FUND AUTHORIZED FACILITIES .....................5

41 City of Aliso Viejo, Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) 1 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2023
SECTION I. BACKGROUND

The Local Agency Special Tax and Bond Accountability Act (“Accountability Act”) was enacted by California State Legislature through Senate Bill 165 to provide accountability measures for any local special tax and/or bond measure subject to voter approval on or after January 1, 2001.

According to the requirements of the Accountability Act (Sections 50075.1 and 53410 of the Government Code of the State of California) , an annual report must be filed by the local agency levying a special tax and/or issuing a bond measure on or before each January 1, commencing January 1, 2002, and shall contain a description of the following:

(1) The amount of funds collected and expended to fund authorized facilities. (2) The status of any project required or authorized to be funded by the special tax and/or bond measure.

The information contained in this Report has been compiled and is being presented pursuant to an in accordance with the requirements outlined in the Accountability Act for Fiscal Year 2022/23 for the City of Aliso Viejo (“City”) and their Community Facilities District No. 2005 -01 (Glenwood at Aliso Viejo) (“CFD No. 2005-01” or “CFD”).

42 City of Aliso Viejo, Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) 2 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2023
SECTION II. BOND PROCEEDS

The City issued 2014 Special Tax Refunding Bonds (“Refunding Bonds”) on February 13, 2014 in the aggregate principal amount of $32,270,000. A portion of the proceeds of the Refunding Bonds, together with certain existing funds on hand, were used to defease and refund the City’s 2007 Special Tax Bonds (“2007 Bonds”). Approximately $30,000 remaining in the improvement fund established for the 2007 Bonds was transferred to the Improvement Fund under the FAA to finance remaining obligations for the construction of the City’s aquatic center facilities. The table below summarizes the application of the Refunding Bond proceeds:

FUND/ACCOUNT/SUBACCOUNT BOND PROCEEDS
Improvement Fund $30,000.00
Reserve Fund 2,992,500.00
Costs of Issuance Fund 202,566.45
Administrative Expense Fund 18,363.76
Escrow Fund1 35,829,122.50
TOTAL2 $39,072,552.71
1 Monies deposited into the Escrow Fund were used to redeem the 2007 Bonds on March 1, 2014. 2 The difference between the Refunding Bond issue amount of $32,070,000 and the total Bond proceeds deposited is the Original Issue Premium less the Underwriter’s Discount plus funds on hand from the 2007 Bonds.

43 City of Aliso Viejo, Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) 3 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2023
SECTION III. COLLECTION OF SPECIAL TAXES

In accordance with the FAA, all Special Taxes collected by the City shall be deposited into the Special Tax Fund. The table below provides a summary of the Special Taxes deposited, interest accrued, transfers, and other transactions within the special tax fund established for the 2007 Bonds and the Special Tax Fund established under the FAA for fiscal year ended June 30, 2023.

ITEM BALANCE
BEGINNING BALANCE AS OF JULY 1, 2022 $1,505,470.06
Sources of Funds
Special Tax Receipts $2,413,064.67
Interest Accrued 29,703.95
Miscellaneous Transfers In 0.00
Subtotal: Sources $2,442,768.62
Uses of Funds
Transfers to Administrative Expense Fund ($41,183.00)
Transfers to Bond Fund (Debt Service) (2,160,050.00)
Miscellaneous Transfers (Out) (0.00)
Subtotal: Uses ($2,201,233.00)
ENDING BALANCE AS OF JUNE 30, 2023 $1,747,005.68

44 City of Aliso Viejo, Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) 4 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2023
SECTION IV. AUTHORIZED FACILITIES

CFD No. 2005-01 is authorized to finance the acquisition and construction and engineering design of certain facilities to be owned by the City, the County of Orange, and the Moulton Niguel Water District (the “Facilities”).

Details of the authorized Facilities are as follows:

• The Community Conference Center;
• The Aquatic Center;
• The Public Park;
• The Public Parking Lot;
• Golf Drive;
• Water and sewer facilities to be owned, operated and maintained by the Moulton Niguel Water District (the “Water District”) as are necessary to serve the proposed development within CFD No. 2005-01;
• Water and sewer facilities to be owned, operated and maintained by the Water District that would otherwise be financed from the proceeds of the connection fees payable to the Water District for the development within CFD No. 2005-01;
• Storm water facilities that will replace existing storm facilities for collection and transport of off-site storm water to be owned, operated and maintained by the City; • Street improvements to be owned, operated and maintained by the County that would otherwise be financed from the proceeds of fees payable to the County as part of the County’s Coastal Area Road Improvement and Moulton Parkway and Laguna Niguel Road Programs for the development within CFD No. 2005-01;
• Those public facilities authorized to bd financed form the proceeds of the Community Enhancement Fee as required pursuant to the Development Agreement dated September 1, 2004 (“Development Agreement”);
• Offsite traffic mitigation improvements as required to be provided pursuant to the Development Agreement; and
• Offsite park enhancement improvements as required to be provided pursuant to the Development Agreement.

45 City of Aliso Viejo, Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) 5 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2023
SECTION V. EXPENDITURES TO FUND AUTHORIZED FACILITIES

The improvement fund established for the 2007 Bonds to pay for authorized facilities (the “2007 Improvement Fund”) had a balance remaining of approximately $662,337 at June 30, 2013.

Approximately $30,000 of the total amount remaining in the 2007 Improvement Fund was transferred to the Improvement Fund under the FAA to finance remaining obligations for the construction of the City’s aquatic center facilities. The net amount, plus interest, following the transfer of funds to the Improvement Fund, was combined with other sources of funding and used to defease and fully refund the 2007 Bonds.

The following table shows the amount deposited in the Improvement Fund, interest accrued, transfers and expenditures made to fund the authorized facilities from bond issuance. The final expenditures were paid from the Improvement Fund during the fiscal year ended June 30, 2015 and the fund was subsequently closed.

ITEM BALANCE
Sources of Funds
Deposit into the Improvement Fund1 $30,000.00
Interest Accrued 5.52
Total Sources $30,005.52
Expenditures
Aquatic Center Improvements ($21,386.23)
Transfer to Bond Fund2 (8,619.29)
Total Expenditures ($30,005.52)
1 Transferred from the 2007 Improvement Fund.
2 Transferred remaining balance to Bond Fund.

46 City of Aliso Viejo

AGENDA ITEM
DATE: October 4, 2023
TO: Mayor and City Council
FROM: Shaun Pelletier, City Engineer
SUBJECT: AWARD CONTRACT TO NIEVES LANDSCAPE, INC. FOR THE CITY

HALL LANDSCAPE AND IRRIGATION IMPROVMENT PROJECT
______________________________________________________________________ Recommended Actions:

1. Approve Contract Documents, Specifications, and Plans for the City Hall Landscape and Irrigation Improvement Project;

2. Award a contract in the amount of $157,314 to Nieves Landscape, Inc. as the lowest responsible bidder for the City Hall Landscape and Irrigation Improvement Project;

3. Authorize the City Manager to execute a contract with Nieves Landscape, Inc.;

4. Authorize City staff to make total compensation to Nieves Landscape, Inc. up to $157,314 plus $31,462.80 (20% of the contract amount) to allow for contingencies, totaling $188,776.80; and

Fiscal Impact:

Total fiscal impact will be approximately $188,776.80 including construction ($157,314) and contingency ($31,462.80). The adopted fiscal year 2023-24 Capital Improvement Plan (CIP) budget includes $75,000 in grant funding from the Bureau of Reclamation WaterSmart Small-Scale Water Efficiency Projects and a corresponding $75,000 general fund match, for a total of $150,000. The additional $38,776.80 in general fund dollars will be funded by reallocating CIP funds.

Background:

The City advertised for bids through September 6, 2023 and multiple online plan rooms were used. Nine contractors requested and received construction documents for the 47

Page 2 of 3 ends

work. A mandatory pre-bid conference was held on August 29, 2023 to review the project with prospective bidders.

The City received and opened three bids at 2:00 p.m. on September 6, 2023. The total amounts for each of the bids received are as follows:

Contractor Base Bid

1. Nieves Landscape, Inc. $157,314

2. Kormex $188,800

3. SuperB $212,080
City staff has reviewed the bid from Nieves Landscape, Inc. and the bid appears to be responsive and complete.

This project is exempt from the CEQA process since it is maintaining existing facilities.

Discussion:

The Bureau of Reclamation WaterSMART Small-Scale Water Efficiency Projects grant provides a 50/50 cost share funding to perform small water efficiency improvements. The base bid of the project included improvements to the City Hall irrigation system to fulfill the requirements of the grants as well as grouted rock cobble for the landscaped area adjacent to the street, and installation of trees.

The engineer’s estimate for this base bid work was about $150,000. The average bid item costs were comparable to the engineer’s estimate. Alternate bid items were included, but not awarded, that would add additional landscaping in the form of shrubs and groundcover around the perimeter of the parking lot and adjacent to the building.

Staff requests approval of a contract with Nieves Landscape, Inc. and authorization for payments to up to $188,776.80, to include the base bid amount and a 20% contingency.

The contingency has been included in the contract to allow for the replacement of plants that may not survive during the installation of the new irrigation system.

Nieves Landscaping, Inc. is currently the City’s landscape maintenance contractor maintaining the landscaping at all City owned facilities. They have also performed similar work in other surrounding cities with favorable references.

The schedule for this project is as follows:
- Advertise for bids August 10 – September 6, 2023
- Bids due September 6, 2023
- Council approves award of contract October 4, 2023
- Notice to Proceed November 1, 2023
- Start construction November 1, 2023
- Complete construction (40 working days) January 3, 2024 48

Page 3 of 3 ends

Attachments:

1. Contract with Nieves Landscape, Inc.

2. Nieves Landscape, Inc. Submitted Bid
49 SECTION 00500

CONTRACT

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00500

CONTRACT
CONTRACT - 1

BBK: March 2012

CONTRACT
THIS CONTRACT is made this _____ day of _________, 2023, in the County of Orange, State of California, by and between the City of Aliso Viejo hereinafter called City, and Nieves Landscape, Inc., hereinafter called Contractor. City and the Contractor for the considerations stated herein agree as follows:

ARTICLE 1. SCOPE OF WORK . The Contractor shall perform all Work within the time stipulated the Contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT

The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION. The Work shall be commenced on the date stated in City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within forty (40) working days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any addition s or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One Hundred Fifty Seven Thousand, Three Hundred Fourteen Dollars and Zero Cents ($157,314.00). Payment shall be made as set forth in the General Conditions.

At any time during the term of the Contract, City may, pursuant to the terms and provisions of the Contract Documents, request that the Contractor perform additional work. Contractor shall not perform, nor be compensated for, additional work without written authorization from the City pursuant to the terms and provisions of the Contract Documents. Notwithstanding any other provisions of the Contract Docum ents, for contracts in excess of $25,000.00, the City Manager may approve additional work not to exceed 20% of the original Contract amount , (Thirty One Thousand, Four Hundred Sixty Two Dollars and Eighty Cents ($31,462.80)), as set forth in this Article 3. Any additional work in excess of this amount shall be approved by the City Council.

ARTICLE 4. LIQUIDATED DAMAGES . In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay City the s um of $500 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
50 SECTION 00500

CONTRACT

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00500

CONTRACT
CONTRACT - 2

BBK: March 2012

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Form
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond
Designation of Subcontractors
Information Required of Bidders
Noncollusion Declaration form
Contract
Performance Bond
Payment Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall com ply with all requirements of the California Labor Code applicable to this Project.

ARTICLE 7. INDEMNIFICATION. Contractor shall provide indemnification as set forth in the General Conditions.

ARTICLE 8. PREVAILING WAGES. Contractor shall be required to p ay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the office of the City Engineer or may be obtained online at http//www.dir.ca.gov/dlsr. and which must be posted at the job site.

ARTICLE 9. DECLARATION OF POLITICAL CONTRIBUTIONS. Prior to the City’s approval of this Contract, Contractor shall submit to City a statement in writing declaring any political contributions of money, in-kind services, or loan made to any member of the City Council within the previous twelve-month period by the Contractor and all of Contractor 's employees, including any employee(s) that Contractor intends to assign to perform work on the Project. 51 SECTION 00500

CONTRACT

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00500

CONTRACT
CONTRACT - 3

BBK: March 2012

IN WITNESS WHEREOF, this Contract has been duly executed by the abo ve-named parties, on the day and year above written.

CITY OF ALISO VIEJO NIEVES LANDSCAPE, INC.

By: By:

David A. Doyle Greg Nieves, President

If Corporation, TWO SIGNATURES, President OR Vice President AND Secretary OR Treasurer REQUIRED]

Attest:

By:

Greg Nieves, Secretary
By:

Mitzi Ortiz, MMC
City Clerk C-27 - 674709
Classification of Contractor's License

Approved as to Form:

By:

Best Best & Krieger LLP
City Attorney

Approved as to Compliance with Budget:

By: __________________________
Ann Eifert
Department of Financial Services
52 SECTION 00500

CONTRACT

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00500

CONTRACT
CONTRACT - 4

BBK: March 2012

CITY OF ALISO VIEJO

DECLARATION OF POLITICAL CONTRIBUTIONS

Using the space provided below, please list any political contributions of money, in-kind services, or loans made to any member of the City Council within the last twelve (12) months by Contractor and all of Contractor’s employees, including any employee(s) that applicant intends to assign to perform work on the Project:

To the best of my knowledge, I declare under penalty of perjury that the foregoing is true and was executed at:

City/County/State Date

Name of Business Print Name

Signature

NOTE: THIS DECLARATION IS INCLUDED AS PART OF THE CONTRACT AND MUST BE SIGNED AND ATTACHED HERETO.

END OF CONTRACT
53 SECTION 00610

PERFORMANCE BOND

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00610

PERFORMANCE BOND
CONTRACT - 5

BBK: March 2012

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Aliso Viejo (hereinafter referred to as “ City”) has awarded to ____________________, (hereinafter referred to as the “Contractor”) _______________________ an agreement for City Hall Landscape a nd Irrigation Improvement Project (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated August 2023, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, _______________, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City in the sum of ___________________________ DOLLARS, ($____________), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselve s, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, sha ll in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless City, its officers and agents, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by City in enforcing such obligation.

As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect City from loss or damage resulting from or caused by defective materials or faulty workmanship , the above obligation in penal sum thereof shall remain in full force and effect . The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15. 54 SECTION 00610

PERFORMANCE BOND

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00610

PERFORMANCE BOND
CONTRACT - 6

BBK: March 2012

Whenever Contractor shall be, and is declared by City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at City’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidde r, arrange for a Contract between such bidder, the Surety and City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by City under the Contract and any modification thereto, less any amount previously paid by City to the Contractor and any other set offs pursuant to the Contract Documents.
(3) Permit City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balanc e of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by City under the Contract and any modification thereto, less any amount previously paid by City to the Contractor and any other set offs pursuant to the Contract Documents.

Surety expressly agrees that City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.

Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if City, when declaring the Contractor in default, notifies Surety of City’s objection to Contractor’s further participation in the completion of the Project.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this ___ ____ day of ______________, 20__.

(Corporate Seal)
Contractor/ Principal
55 SECTION 00610

PERFORMANCE BOND

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00610

PERFORMANCE BOND
CONTRACT - 7

BBK: March 2012

Title

(Corporate Seal) Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title

The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety) ___________________________________________ ___________________________________________
___________________________________________

(Name and Address of Agent or ___________________________________________ Representative for service of
process in California, if different ___________________________________________ from above)
___________________________________________
(Telephone number of Surety and ___________________________________________ Agent or Representative for service
of process in California

56 SECTION 00610

PERFORMANCE BOND

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00610

PERFORMANCE BOND
CONTRACT - 8

BBK: March 2012

Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer

Title(s) Title or Type of Document
Partner(s)
Limited

General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above

57 SECTION 00610

PERFORMANCE BOND

CITY HALL LANDSCAPE AND IRRIGATION IMPROVEMENT PROJECT
SECTION 00610

PERFORMANCE BOND
CONTRACT - 9

BBK: March 2012

NOTE: A copy of the Power-of-Attorney to local representatives of the bonding company must be attached hereto.

END OF PERFORMANCE BOND FORM

58 PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS that:

WHEREAS, the City of Aliso Viejo (hereinafter designated as “City”), by action taken or a resolution passed , 20 has awarded to
hereinafter designated as the “Principal,” a contract for the work described as follows:

City Hall Landscape and Irrigation Improvement Project (the “Project”); and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto City in the penal sum of ______________ Dollars ($___________) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, adm inistrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay an y of the persons named in Section 3181 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts d ue under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of emplo yees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses.

This bond shall inure to the benefit of any of the persons n amed in Section 3181 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the oblig ation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond 59 and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 3110 or 3112 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.

(Corporate Seal)
Contractor/ Principal
By

Title

(Corporate Seal) Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title

60 Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer

Title(s) Title or Type of Document
Partner(s)
Limited

General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above

61 NOTE: A copy of the Power-of-Attorney to local representatives of the bonding company must be attached hereto.

END OF PAYMENT BOND FORM

62 63
64 65
66 67
68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 85
86 87
88 89
90 91
92 City of Aliso Viejo

AGENDA ITEM
DATE: October 4, 2023
TO: Mayor and City Council
FROM: Shaun Pelletier, City Engineer
SUBJECT: RELEASE OF BONDS FOR THE GRADING AND LANDSCAPING IMPROVEMENTS FOR THE 15-25 ENTERPRISE GRADING AND

LANDSCAPING CONSTRUCTION PROJECT
______________________________________________________________________ Recommended Action:

Adopt a Resolution exonerating Grading Surety Bond No. SU1190293 and Landscaping Surety Bond No. SU1190294 for the 15-25 Enterprise Grading and Landscaping Construction Project.

Fiscal Impact:

No fiscal impact exists.

Background:

The City of Aliso Viejo required bonds from Sumit IV, LLC to assure completion of the grading and landscape improvements at the 15-25 Enterprise Grading and Landscaping Construction Project. The grading surety bond had a total value of $51,007.50 and the landscaping surety bond had a total value of $480,203.

Discussion:

The 15-25 Enterprise Grading and Landscaping Construction Project has been completed. Staff recommends that the City Council adopt a Resolution accepting the improvements at 15-25 Enterprise and exonerating the bond.

Attachment:

1. Resolution
93

Page 1 of 2 ends

RESOLUTION NO. 2023-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO

VIEJO, CALIFORNIA, EXONERATING THE GRADING AND
LANDSCAPING SURETY BONDS ASSOCIATED WITH THE 15-25

ENTERPRISE GRADING AND LANDSCAPING CONSTRUCTION

PROJECT
WHEREAS, the City of Aliso Viejo, in the normal course of its review role has required surety bonds for the grading and landscape work at the 15-25 Enterprise Grading and Landscaping Construction Project; and
WHEREAS, the City of Aliso Viejo, has reviewed and inspected all grading and landscape work associated with the grading and landscape improvements at the 15-25 Enterprise Grading and Landscaping Construction Project;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALISO VIEJO AS FOLLOWS:

Section 1: Based upon the inspections conducted by the City Engineer, the City Council of the City of Aliso Viejo accepts the grading and landscape improvements for the 15-25 Enterprise Grading Landscaping Construction Project.

Section 2: Based upon the City Engineer’s determination that the grading and landscape work is complete, the City Council of the City of Aliso Viejo exonerates the grading and landscaping surety bonds associated with the grading and landscape improvements at the 15-25 Enterprise Grading and Landscaping Construction Project.

Grading Surety Bond No. SU1190293
Landscaping Surety Bond No. SU1190294
Section 3: The City Clerk is hereby authorized and directed to execute a certified copy of this Resolution to be attached to each notice of completion as evidence of the City Council’s acceptance and authorization.

Section 4. The Mayor shall sign this Resolution and the City Clerk shall certify the adoption thereof.
94

Page 2 of 2 ends

PASSED, APPROVED AND ADOPTED this 4th day of October, 2023.

Richard Hurt
Mayor
APPROVED AS TO FORM: ATTEST:

Scott C. Smith, City Attorney Mitzi Ortiz, MMC, City Clerk 95 City of Aliso Viejo

AGENDA ITEM
DATE: October 4, 2023
TO: Mayor and City Council
FROM: Shaun Pelletier, City Engineer
SUBJECT: CALRECYCLE RESOLUTION FOR GRANT FUNDING
______________________________________________________________________ Recommended Action:

Adopt a Resolution authorizing submittal of applications for all CalRecycle grants and payment programs for which the City of Aliso Viejo is eligible.

Fiscal Impact:

No fiscal impact exists with the adoption of the resolution. If the City is successful in obtaining CalRecycle grant funding, then funds will be budgeted for completion of the respective project(s).

Background:

CalRecycle requires adoption of a resolution every five years to authorize the Director of Public Works/City Engineer, or his/her designee, to submit applications for all CalRecycle grant programs for which the City of Aliso Viejo is eligible and execute all related grants and payment documentation. The previous resolution was adopted on October 4, 2017 and expires on October 4, 2023.

Discussion:

The City has previously applied for and successfully obtained funding through various CalRecycle grant funding programs such as the beverage container grant, used oil recycling program, SB 1383 local assistance grant program, and the rubberized pavement grant program. Approval of this resolution will allow the City to continue applying for future CalRecycle grant opportunities and submit the required documentation to obtain reimbursement for expenditures.

Attachment:

1. Resolution
96

Page 1 of 2 ends

RESOLUTION NO. 2023-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO

VIEJO, CALIFORNIA, AUTHORIZING SUBMITTAL OF APPLICATION(S)

FOR ALL CALRECYCLE GRANT AND PAYMENT PROGRAMS FOR

WHICH THE CITY OF ALISO VIEJO IS ELIGIBLE
WHEREAS, Public Resources Code sections 48000 et seq., 14581, and 42023.1(g), authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant and payment programs in furtherance of the State of California’s (state) efforts to reduce, recycle, and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and
WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the payment programs; and administration of the application, awarding, and management of the grant programs; and WHEREAS, CalRecycle’s procedures for administering payment and grant programs require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of the payment and grant program.

NOW, THEREFORE, BE IT RESOLVED that the City of Aliso Viejo is authorized to submit an application to CalRecycle for any and all grant and payment programs offered; and
BE IT FURTHER RESOLVED that the Director of Public Works/City Engineer, or his/her designee is hereby authorized and empowered to execute in the name of the City of Aliso Viejo all documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure funds and implement the approved grant or payment project; and
BE IT FURTHER RESOLVED that these authorizations are effective for five (5) years from the date of adoption of this resolution.
97

Page 2 of 2 ends

PASSED, APPROVED AND ADOPTED this 4th day of October, 2023.

Richard Hurt
Mayor
APPROVED AS TO FORM: ATTEST:

Scott C. Smith, City Attorney Mitzi Ortiz, MMC, City Clerk 98 City of Aliso Viejo

AGENDA ITEM
DATE: October 4, 2023
TO: Mayor and City Council
FROM: So Kim, Community Development Director
Rose Rivera, Senior Planner
SUBJECT: ADOPTION OF THE 2022-2023 CONSOLIDATED ANNUAL

PERFORMANCE AND EVALUATION REPORT (CAPER) FOR

EXPENDITURES OF COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) FUNDS
Recommended Actions:

1. Find that the 2022-2023 Consolidated Annual Performance and Evaluation Report (CAPER) is not subject to the California Environmental Quality Act (CEQA) because the activity is not a project as defined in Section 15378 (b)(5) of the State CEQA Guidelines;

2. Approve and adopt the 2022-2023 CAPER; and

3. Authorize the City Manager to submit the CAPER to the United States Department of Housing and Urban Development (HUD) and authorize the City Manager to submit all related documents.

Fiscal Impact:

No direct fiscal impact will result from this report; however, the submittal of the CAPER is a requirement of the Community Development Block Program (CDBG).

Background:

On July 18, 2018, the City Council adopted the 2018-2022 Consolidated Plan, a multi- year strategy for using CDBG funds within the community. On May 4, 2022, the City Council approved the Annual Action Plan for the 2022-2023 fiscal year, which identified specific activities to be funded by CDBG during the year. The 2022-2023 Annual Action Plan outlined an expenditure plan for the City's CDBG allocation. The Action Plan identified the activities to be carried out during the reporting period utilizing CDBG funds, which included public facilities and improvements, public service grants, and program administration.
99 In 2020, the City received $414,751 in CDBG-Coronavirus (CDBG-CV) funds from HUD.

CDBG-CV funds must be used to prevent, prepare for, or respond to local impacts of the COVID-19 pandemic. The City allocated CDBG-CV funding for public services and small business assistance activities and continued to carry out these activities during the fiscal year (“FY”) 2022-2023 reporting period.

Discussion:

A Consolidated Annual Performance Evaluation Report (CAPER) is prepared each year for submission to HUD. Due within 90 days of completion of the fiscal year, the CAPER summarizes the previous year's accomplishments. It also illustrates the City's progress in meeting the goals outlined in the Consolidated Plan and the previous year's Annual Action Plan. HUD uses the CAPER to evaluate the effectiveness of the City's use of CDBG funding on programs and projects that meet the community's needs.

CDBG Performance Summary
The CDBG funding priorities for the 2022-2023 Annual Action Plan allocated $241,324 ($228,298 in FY 2022-2023 CDBG funds plus $13,026 prior year uncommitted funds) toward the following activities:
1) Public facilities and improvements (Affordable housing unit acquisition - $186,924); 2) Public service grants (Fair Housing Foundation - $3,500 and Family Assistance Ministries - $7,500); and
3) Program administration (CDBG Consultant and City Staff - $43,400).

A total of $186,924 was expended for public facilities and improvements during FY 2022- 2023. The City allocated the bulk of its FY 2022-2023 funding to support the acquisition of a condominium to provide transitional housing in partnership with a local service provider. The unit's purchase was completed during the reporting period; ultimately, a family of five was placed in the unit managed by Family Assistance Ministries.

With respect to public service grants, the Fair Housing Foundation assisted 55 Aliso Viejo households during FY 2022-2023. Additionally, Family Assistance Ministries provided case management and support services to nine formerly homeless individuals currently residing in permanent supportive housing. Administration of the CDBG program, which consists of City staff and consultant time to implement the program and fees for public notices, accounted for $43,400 in expenditures.

CDBG-CV Performance Summary
Annual Action Plan Substantial Amendments approved by the City Council in 2020 allocated $414,752 CDBG-CV funding to the following activities:
100
1) Business Assistance: City Grant Program - $192,702 to assist 30 businesses impacted by the COVID-19 pandemic and
2) Public Services: $222,050 to fund grants to Age Well, Family Assistance Ministries, South County Outreach, and YMCA to assist 500 lower-income Aliso Viejo residents impacted by the COVID-19 pandemic.

CDBG-CV funds are limited to activities that prevent, prepare for, and respond to the impacts of the coronavirus. The City initially allocated CDBG-CV funds to meet the U.S.

Economic Development Administration's (EDA) Economic Adjustment Assistance Grant.

The City's application to the EDA for grant funding to establish a revolving loan fund for Aliso Viejo businesses was denied. Subsequently, the City Council authorized staff to develop a CDBG-CV-funded grant program to assist local businesses impacted by the COVID-19 pandemic. City staff engaged a consultant to assist with developing and implementing the program.

On April 5, 2023, the City substantially amended its CDBG-CV action plan and reallocated $115,000 in CDBG-CV funds from the business grant program to South County Outreach, Age Well Senior Services, and CDBG-CV Administration. The City continued to market the business grant program during the reporting period. Ultimately, one business was approved for assistance, which retained four full-time equivalent lower-income persons.

Grants of up to $7,500 for businesses with one to five full-time employees or up to $10,000 for businesses with six to 25 full-time employees will be available. Businesses must be located in Aliso Viejo and able to demonstrate a COVID-19-related financial impact from November 1, 2021. Items eligible for grant reimbursement include the purchase of personal protective equipment (PPE), third-party delivery fees, improvements to adapt to curbside delivery, or no-touch purchasing
During FY 2022-2023, public service grant sub-recipients used $53,266 in CDBG-CV funding to assist 340 lower-income Aliso Viejo residents impacted by the COVID-19 pandemic. To date, a total of $235,533 in CDBG-CV funds have been expended.

Environmental:

Staff recommends the City Council find the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15378(b)(5). The proposed action is an administrative activity of the City that involves a report to a Federal agency on the utilization of CDBG funds.

Public Notice:

On September 14, 2023, a 1/8 page public meeting notice was published in the Laguna Niguel News for a 15-day public review period, per HUD and local requirements. The 2022-2023 CAPER was available for public review through September 29, 2023. 101
Attachment:

1. 2022-2023 Consolidated Annual Performance and Evaluation Report (CAPER) 102

Draft September 14, 2023

City of Aliso Viejo
2022-2023
Consolidated
Annual
Performance &
Evaluation Report

103

2022-2023 CAPER i
OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 9/ 14/223

Contents
CR-05 - Goals and Outcomes ................................ ................................ ................................ ................ 1 CR-10 - Racial and Ethnic composition of families assisted ................................ ................................ .... 4 CR-15 - Resources and Investments 91.520(a) ................................ ................................ ...................... 5 CR-20 - Affordable Housing 91.520(b)................................ ................................ ................................ ... 7 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................................ .. 9 CR-30 - Public Housing 91.220(h); 91.320(j) ................................ ................................ ........................ 11 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ................................ ................................ ................. 12 CR-40 - Monitoring 91.220 and 91.230 ................................ ................................ ............................... 16 CR-45 - CDBG 91.520(c) ................................ ................................ ................................ ...................... 16 CR-58 – Section 3 ................................ ................................ ................................ .............................. 17

Attachments
Attachment 1: PR03 - CDBG & CDBG-CV Activity Summary Report (GPR) Attachment 2: PR26 - CDBG Financial Summary Reports
Attachment 3: Impediments to Fair Housing Plan
Attachment 4: Public Notice and Summary of Public Comments 104

2022-2023 CAPER 1
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.

91.520(a)
The 2022-2023 Consolidated Annual Performance and Evaluation Report (CAPER) has been prepared to assist residents of the City of Aliso Viejo and the U.S. Department of Housing and Urban Development (HUD) in assessing the City’s use of federal grant funds to meet priority housing and community needs identified in the City’s 2018–2022 Consolidated Plan. The CAPER will focus on annual goals and accomplishments for the period of July 1, 2022, through June 30, 2023 – the FY 2022-2023 reporting period.

The 2022-2023 reporting period is the fifth year of the City’s 2018-2022 Con Plan cycle. The 2022-2023 Annual Action Plan outlined an expenditure plan for the City’s $228,298 CDBG allocation. An additional $13,026 in prior year funds was also available for programming during the reporting period. The Action Plan identified the activities to be carried out during the reporting period utilizing CDBG funds. Activities include public infrastructure improvements (ADA Improvements), public service grants, and program administration.

In 2020, the City received $414,751 in CDBG-Coronavirus (CDBG-CV) funds. CDBG-CV funds must be used to prevent, prepare for, or respond to local impacts of the COVID-19 pandemic. The City allocated CDBG- CV funding for public services and small business assistance activities and continued to carry out these activities during FY 2022-2023. Initially, HUD required that 80% of CDBG-CV funds be spent in three years and 100% in six years; however, on April 18, 2023, HUD published a notice that announced the elimination of the three-year 80% expenditure deadline. Through the end of FY 2022-2023, the City had expended 53.5% of its CDBG-CV allocation.

The 2018-202 Consolidated Plan established the following five-year goals. Table 1 summarizes five-year goals and accomplishments; Table 1 also includes one-year goals and accomplishments for FY 2022- 2023.
• Public Infrastructure Improvements: 12,000 City residents will benefit from installing or rehabilitating CDBG-funded public infrastructure improvements. • Public Facility Improvements: 6,000 City residents will benefit from installing or rehabilitating CDBG-funded public facilities such as community centers, parks, and other public and private facilities.
• Single-Family Housing Rehabilitation: Provide CDBG-funded assistance to rehabilitate an estimated 15 owner-occupied units.
• Homeless Services: Assistance for homeless individuals and individuals at risk of homelessness, i.e., shelter and support services. The City will fund these activities with general fund resources until the latter years of the Consolidated Plan cycle, when CDBG may be allocated for these services. An estimated 75 individuals will be assisted with CDBG funds. • Public Services: Various social service programs that serve seniors, youths, victims of domestic violence, and other lower-income persons have been funded with City general funds. The City 105

2022-2023 CAPER 2
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 anticipates allocating CDBG during the last years of the Consolidated Plan cycle. An estimated 750 lower-income individuals will be assisted with CDBG funds. • Fair Housing Services: To ensure impediments to fair housing choice are addressed, the City will allocate CDBG funds for fair housing outreach, education, and enforcement services. An estimated 300 households will benefit from this CDBG-funded activity. • Program Administration: The City will provide resources to ensure oversight and coordination of the CDBG program.

Table 1 provides an overview of the City’s efforts to meet the five-year goals of the Consolidated Plan and one-year goals for the FY 2022-2023 reporting period. A summary of FY 2022-2023 CDBG accomplishments is provided in Attachment 1.

As indicated above, per CDBG-CV program regulations, the City had three years to spend 80% of CDBG- CV funds and six years to spend all grant funds; HUD has waived the former deadline. As part of the City’s CDBG-CV amendments to receive funding, the City established the following multi-year goals for CDBG-CV funding:
• Public Services: CDBG-CV funding to assist 500 lower-income Aliso Viejo residents impacted by the Coronavirus
• Economic Development: Financial assistance to 50 Aliso Viejo small businesses impacted by COVID-19
A summary of FY 2022-2023 CDBG-CV accomplishments is provided in Attachment 1.

106

2022-2023 CAPER 1
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Goal Category Source /
Amount Indicator Unit of
Measure
Expected
5 Yr.

Strategic
Plan
Actual
5 Yr.

Strategic
Plan
5 Yr.

Percent
Complete
Expected
FY 22-23
Program
Year
Actual
FY 22-23
Program
Year
1 Yr.

Percent
Complete
Fair Housing
Services
Non-Homeless
Special Needs
CDBG:
$3,500
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 300 222 74.00% 60 55 91.67%
Homeless
Services Homeless
CDBG:
$7,500
Tenant-based rental
assistance / Rapid
Rehousing
Households
Assisted 5 0 0.00% 0 0 0.00%
Homeless
Services Homeless Homeless Person
Overnight Shelter
Persons
Assisted 20 13 65.00% 8 9 112.50%
Homeless
Services Homeless Homelessness
Prevention
Persons
Assisted 50 0 0.00% 0 0 0.00%
Program
Administration Administration CDBG:
$43,400 Other Other 5 5 100.00% 1 1 100.00%
Public Facility
Improvements*
Non-Housing
Community
Development
CDBG:
$186,924
Public Facility or
Infrastructure
Activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 6,000 3,397 56.62% 1 1 100.00%
107

2022-2023 CAPER 2
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 Goal Category Source /
Amount Indicator Unit of
Measure
Expected
5 Yr.

Strategic
Plan
Actual
5 Yr.

Strategic
Plan
5 Yr.

Percent
Complete
Expected
FY 22-23
Program
Year
Actual
FY 22-23
Program
Year
1 Yr.

Percent
Complete
Public
Infrastructure
Improvements
Non-Housing
Community
Development
CDBG:
$0
Public Facility or
Infrastructure
Activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
12,000 0 0.00% 0 0 0.00%
Public Services Non-Homeless
Special Needs
CDBG: $0
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
500 0 0.00% 0 0 0.00%
Single-Family
Housing
Rehabilitation
Affordable
Housing CDBG: $0 Homeowner Housing
Rehabilitated
Household
Housing
Unit
15 0 0.00% 0 0 0.00%
Table 1 - Accomplishments – Program Year & Strategic Plan to Date Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

Consistent with the Consolidated Plan and the City’s 2022-2023 Annual Action Plan, the City focused funds on public facilities, public services, and program administration. In general, the City met one-year goals. As planned, CDBG funding was used to help acquire a residential unit leased to provide transitional housing for homeless families with children, and cumulatively, public service agencies met 94% of planned annual goals. With respect to prior year activities, ADA improvement projects encountered delays due to contracting and supply chain issues. Public Works staff explored ways to bring some project tasks in-house to reduce project costs.

As delineated in the Consolidated Plan, CDBG-funded activities such as public service grants and housing rehabilitation would not be implemented until year three or later of the Consolidated Plan cycle. The City funded two public service grants during the reporting period. The 108

2022-2023 CAPER 3
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 implementation of a housing rehabilitation program has been delayed due to the COVID-19 pandemic. Detailed information regarding CDBG program accomplishments for the 2022-2023 reporting period is provided in Attachment 1 (PR03 - CDBG Activity Summary Report (GPR)).

CDBG-CV funds were allocated to programs that provided a safety net for lower-income Aliso Viejo residents impacted by COVID-19. Specifically, funds are allocated to Family Assistance Ministries and South County Outreach to provide food, utility, or rent assistance. CDBG-CV funding was allocated to Age Well Senior Services to support its senior Meals on Wheels program and the YMCA, which used CDBG-CV funds to clean classrooms and other recreational facilities for youths participating in its after-school and summer daycare programs.

Initially, the City planned to use CDBG-CV funds as a match for a State grant to support local businesses; however, the State did not approve the grant. The City's program was offered at a time when the State and County were also providing direct financial assistance to local businesses impacted by COVID-19. These programs had fewer reporting requirements, which made the City's CDBG-CV-funded program less attractive. On April 5, 2023, the City substantially amended its CDBG-CV action plan and reallocated $115,000 in CDBG-CV funds to South County Outreach, Age Well Senior Services, and CDBG-CV Admin. The City continued to market the program during the reporting period. Ultimately, one business was approved for assistance, which retained 4 FTEs for lower-income persons. The City will continue to offer the program during FY 2023-2024.

CDBG-CV grant accomplishments are provided in Attachment 1.

Finally, during the reporting period, the Orange County Housing Authority (OCHA) reports providing rental assistance to 139 lower-income Aliso Viejo renter households.
109

2022-2023 CAPER 4
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)

CDBG CDBG-CV
White 50 258
Black or African-American 4 16
Asian 4 11
American Indian or American Native 0 0
Native Hawaiian or Other Pacific Islander 0 6
Other* 6 49
Total 64 340
Hispanic 13 62
Not Hispanic 51 278
Table 2 – Table of assistance to racial and ethnic populations by source of funds * By default, Table 2 excludes 6 multi-racial program beneficiaries in IDIS. IDIS also excludes CDBG-CV program beneficiaries.

Narrative
According to the U.S. Census Bureau, most Aliso Viejo residents are racially White – 65.0% per the 2021 American Community Survey 5-Year Estimates. This data source also reports that 20.0% of the City’s population is Hispanic/Latino, and 15.5% is Asian – the City’s most prominent minority populations.

Table 2 shows approximately 78.1% of CDBG-funded program participants are White, 20.30% Hispanic/Latino, and 6.3% Asian. These percentages appear to be consistent with the City’s overall demographics. Based on accomplishment reports provided by CDBG sub-recipients, approximately

65.6% of assisted households had an income of less than 50% of the County median income.

With respect to CDBG-CV program beneficiaries, approximately 75.9% of beneficiaries are White, 18.2% Hispanic/Latino, 4.7% African American, and 3.2% Asian. Additionally, approximately 97% of program beneficiaries report a household income equal to or less than 50% of the County median income. 110

2022-2023 CAPER 5
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source
Resources Made
Available
Amount Expended
During Program Year
CDBG CDBG $241,324 $241,324
Other CDBG-CV $414,751 $60,766
Table 3 - Resources Made Available
Narrative
The 2022-2023 Annual Action Plan allocated $241,324 in CDBG funds for various activities. This total is comprised of the City’s 2022 CDBG grant of $228,298 plus $13,026 in prior year uncommitted funds. The City did not receive any program income during the reporting period. As reported in Table 3, the City spent $241,324 in CDBG funds during the reporting period. Additionally, $60,766 in CDBG-CV resources were used to assist Aliso Viejo residents impacted by the COVID-19 pandemic. Over three years, the City has spent $235,533 in CDBG-CV funds – 56.8% of total CDBG-CV funds.

Identify the geographic distribution and location of investments Target Area
Planned Percentage
of Allocation
Actual Percentage
of Allocation Narrative Description
CDBG
Eligible Area 0 0 Funding for activities limited to CDBG- Eligible Census Tract Block Groups
Citywide 100 100 Funding for activities anywhere within the City Limits
Table 4 – Identify the geographic distribution and location of investments Narrative
As evident from Table 3, the City utilized a significant portion of 2022-2023 CDBG funding resources. The City also used a considerable amount of CDBG-CV funds to assist lower-income Aliso Viejo residents impacted by the COVID-19 pandemic. Attachment 2 (PR26 - CDBG Financial Summary Report) provides a detailed summary of CDBG funding expenditure.

The CARES Act of 2020 requires that 80% of CDBG-CV funds be expended within three years and 100% within six years. On April 5, 2023, HUD issued a notice waiving the three-year expenditure requirement.

Through the end of FY 2022-2023, the City spent $235,533 in CDBG-CV funds (56.8% of total CDBG-CV funds). Unexpended funds will be carried forward into the FY 2023-2024 reporting period. A summary of CDBG-CV expenditures is provided in Attachment 2.

With respect to the geographic expenditure of CDBG and CDBG-CV funds, all FY 2022-2023 funded activities were distributed for citywide benefit.
111

2022-2023 CAPER 6
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

The City of Aliso Viejo made every effort to leverage CDBG funds to the greatest extent possible.

Approximately $83,010 in other resources was used to leverage CDBG funds during the FY 2022-2023 reporting period. These sources include the following:
• General Fund for Social Services: $15,500
• Development Impact Fund: $67,511
Public or privately owned land that may be available to address priority needs identified in the Consolidated Plan will be included in a new available site inventory to be incorporated into the City’s new Housing Element.

There is no match requirement for the CDBG program.
112

2022-2023 CAPER 7
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 1 1
Number of Non-Homeless households to be
provided affordable housing units 0 0
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 1 1
Table 5 – Number of Households

One-Year Goal Actual
Number of households supported through
Rental Assistance 0 0
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 0 0
Number of households supported through
Acquisition of Existing Units 1 1
Total 1 1
Table 6 – Number of Households Supported

Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

The City allocated the bulk of its FY 2022-2023 funding to support the acquisition of a condominium to provide transitional housing in partnership with a local service provider. The unit's purchase was completed during the reporting period; ultimately, a family of five was placed in the unit managed by Family Assistance Ministries. Per the Consolidated Plan, the City would consider implementing a housing rehabilitation program toward the end of the 2018-2022 Consolidated Plan cycle. The program has not been implemented; however, staff anticipated a program may be initiated during the new Consolidated Plan cycle.

With respect to rental assistance, the federal rental assistance program is administered in Aliso Viejo by OCHA. The City has no control over the allocation of housing assistance vouchers or certificates within 113

2022-2023 CAPER 8
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 the City; however, OCHA reports that it assisted 139 Aliso Viejo households with federal rental assistance vouchers or certificates during the 2022-2023 reporting period.

Discuss how these outcomes will impact future annual action plans.

As indicated above, limited housing activity was undertaken during the City’s first five years as a CDBG entitlement community; however, the City will evaluate implementing a housing improvement program during the next Consolidated Plan cycle.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual HOME Actual *
Extremely Low-income 1 0
Low-income 0 0
Moderate-income 0 0
Total 1 0
Table 7 – Number of Households Served
* The City is not a recipient of HOME funds.

Narrative Information
Table 7 shows that the City was able to assist with providing housing and services to one household during the 2022-2023 reporting period. OCHA reports 139 Aliso Viejo extremely low-income and very low-income renter households received rental assistance during the 2022-2023 reporting period.

The City is not a recipient of HOME funds.
114

2022-2023 CAPER 9
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City did not allocate CDBG funds for homeless outreach services during the 2022-2023 reporting period; however, a deputy sheriff was designated as the City’s Homeless Liaison Officer. OC Sheriff personnel work directly with homeless individuals in this role by assessing their needs and providing referrals and linkages to various local and regional services, such as Mercy House. The City also supported the County’s Continuum of Care outreach and assessment strategy to address homelessness on a regional basis.

Addressing the emergency shelter and transitional housing needs of homeless persons The City did not allocate CDBG funds for emergency shelter; however, CDBG funding was used to provide supportive services for homeless families residing in transitional housing. Nine individuals were assisted during the 2022-2023 reporting period.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs No CDBG funds were allocated for homelessness prevention services during the 2022-2023 reporting period. However, it is important to note that the City supports the regional Continuum of Care (CoC) planning process. OCHA reports that federal rental assistance vouchers and certificates were provided to three homeless households in Aliso Viejo (Continuum of Care Program Permanent Supportive Housing Certificates). Three homeless veteran households benefitted from Veterans Affairs Supportive Housing (VASH) vouchers.

The City used CDBG-CV funds to assist Aliso Viejo residents at risk of homelessness due to the COVID-19 pandemic. Family Assistance Ministries and South County Outreach report they provided rent and utility assistance, food, and case management services to 262 Aliso Viejo residents during the reporting period.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals 115

2022-2023 CAPER 10
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
As indicated above, three homeless families benefitted from Continuum of Care Program Permanent Supportive Housing Certificates, and three homeless veteran households benefitted from VASH vouchers.

During the reporting period, the City also allocated CDBG funds to Family Assistance Ministries to provide case management and supportive services to formerly homeless families residing in affordable housing. The City also utilized the bulk of its CDBG funding to purchase a condominium leased to Family Assistance Ministries to provide transitional housing and supportive services for homeless families with children.

116

2022-2023 CAPER 11
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The City of Aliso Viejo does not own or manage public housing.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable.

Actions taken to provide assistance to troubled PHAs
Not applicable.
117

2022-2023 CAPER 12
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The 2022-2023 Annual Action Plan indicates that the City will address barriers to affordable housing by taking the following actions:
• Provide a density bonus with the possibility of additional waivers or modifications to development standards, provided the waiver/modification does not adversely impact health, safety, or the physical environment.
• Provide an additional density bonus for a residential development project with affordable housing.
• A reduction in development standards (e.g., coverage, setback, zero lot line and/or reduced parcel sizes, and/or parking requirements)
• Approval of mixed-use zoning for housing projects if the nonresidential land uses will reduce the housing project cost.
• Other regulatory incentives or concessions proposed by the applicant or the City that result in identifiable cost reductions.
• Provide direct financial incentives, including publicly owned land by the City, fees, and waivers of dedication requirements.

No affordable housing development activity occurred during the 2022-2023 reporting period; however, as discussed above, CDBG funds were used to acquire a condominium for transitional housing (i.e., a public facility) for homeless families with children.

There is no local tax that may act as a barrier to affordable housing.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The 2022-2023 Annual Action Plan indicates the City will take certain steps to address underserved residents' needs. The City supported OCHA’s efforts to obtain additional rental assistance funding during the reporting period, especially for senior and low-income households. OCHA reports it assisted 90 senior households and 25 disabled households with rental assistance during the reporting period.

As previously reported, the City allocated significant CDBG funding to fund ADA improvements at various public facilities. Due to contracting and supply chain issues, construction of these improvements has been delayed. The recently approved 2023-2024 Annual Action Plan reallocated the funding of all of these ADA projects, except for City Hall ADA Improvements, toward a larger ADA Sidewalk Curb Ramp project. The City Hall and Curb Ramp projects will provide improved accessibility to seniors and individuals with mobility limitations.
118

2022-2023 CAPER 13
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 The Fair Housing Foundation provided fair housing counseling services aimed at ensuring all households have access to safe and decent housing that they desire and can afford, without regard to their race, color, religion, gender, sexual orientation, national origin, familial status, marital status, disability, ancestry, age, source of income, or other characteristics protected by laws. The Fair Housing Foundation assisted 55 households during the 2022-2023 reporting period.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) HUD regulations require a CDBG grantee to test all housing units constructed before 1978 that are assisted with federal funds for lead-based paint hazards. According to HUD data, approximately 94% of the City’s housing stock was built after 1980; therefore, it is reasonable to assume there is a limited number of housing units with lead-based paint hazards throughout the community. Nevertheless, the City provided information to educate residents about lead poisoning at public counters at City Hall, community centers, and on the City’s website.

Should the City establish a CDBG-funded housing rehabilitation program, staff will ensure assisted units are assessed for lead-based paint hazards. If hazards are identified, funding may be allocated to mitigate or remove lead-based paint hazards per HUD regulations.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) According to the U.S. Census Bureau, approximately 4.9% of Aliso Viejo residents have incomes below poverty. The data further indicates that about 7.6% of City residents aged 65 and older and 4.6% of children under 18 live below the poverty level. [1] The Consolidated Plan and Annual Action Plan indicate that the City will support the services listed below to reduce the number of families living in poverty:
• Support affordable housing programs, including rehabilitation for lower-income, senior, and disabled homeowners and rental assistance for very low-income renters via OCHA. OCHA provided rental assistance to 139 renter households during the reporting period, including 88 senior and 25 disabled renter households.
• Family Assistance Ministries utilized CDBG funds to provide case management and supportive services to a lower-income household that recently exited a temporary housing situation into permanent affordable housing.
• The Fair Housing Foundation educated and counseled 55 households regarding their rights to access safe and decent housing. Approximately 81% of households served are very low-income.

As previously reported, CDBG-CV funding was utilized to assist households, most of whom are very low- income (i.e., household income less than 50% of the County median income.) Perhaps more noteworthy, approximately 83% of households assisted with CDBG-CV funds had an income equal to 30% of the County median income (i.e., extremely low income). [1. POVERTY STATUS IN THE PAST 12 MONTHS, 2021 American Community Survey 5-Year Estimates, S1701.] 119

2022-2023 CAPER 14
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 Actions taken to develop institutional structure. 91.220(k); 91.320(j) During FY 2022-2023, the City continued efforts to eliminate institutional gaps and enhance program coordination with the community. For example, the City partnered with a nonprofit to deliver social services. City departments also continued to work together to implement CDBG-funded activities that addressed community priority needs. The City assisted OCHA by participating in the Cities Advisory Committee – a quarterly meeting of cities and OCHA to discuss federal rental housing assistance and regional housing issues. As a backer of the Orange County Continuum of Care, the City provided critical support for the regional Continuum of Care (CoC) as it prepared the County’s CoC Homeless Assistance grant application for HUD’s consideration.

Community-based nonprofit partners are critical to the City’s CDBG-CV strategy to prevent, prepare for, or respond to the Coronavirus pandemic. The City partnered with local nonprofits to distribute food and rent/utility assistance to lower-income residents impacted by COVID-19. To implement its business assistance grant program, the City will engage local business organizations, retail and commercial property owners/managers, and business owners to determine how best to help local businesses recover from the financial hardships created by the global COVID-19 pandemic.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
As indicated above, the City participated in the regional coordination of services by participating in the quarterly Cities Advisory Committee held by OCHA to discuss federal rental housing assistance. The City also continued to work with private developers to identify potential housing development opportunities, including projects with an affordable housing component. Similarly, the City has partnered with local nonprofit agencies to distribute CDBG-CV-funded resources to assist lower-income households impacted by the Coronavirus pandemic.

Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) Consolidated Plan regulations require CDBG recipients to (1) examine and attempt to alleviate housing discrimination within their jurisdiction; (2) promote fair housing choice for all persons; (3) provide opportunities for all persons to reside in any given housing development, regardless of race, color, religion, sex, disability, familial status, or national origin; (4) promote housing that is accessible to and usable by persons with disabilities; and (5) comply with the non-discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate metropolitan-wide fair housing planning. The Analysis of Impediments to Fair Housing Choice (AI) is the primary document for this purpose.

The City participated as one of 19 local jurisdictions preparing the Orange County 2020-2024 Analysis of Impediments to Fair Housing (OC-AI). The OC-AI identified various actions that can be implemented over five years to address regional and local barriers to fair housing. The City contracts with the Fair Housing Foundation (FHF) to provide fair housing outreach, education, and enforcement services and to help the 120

2022-2023 CAPER 15
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 City address the impediments to fair housing identified in the County AI. A summary of the action steps taken by the City and the FHF to address fair housing impediments is provided in Attachment 3. 121

2022-2023 CAPER 16
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
The City CDBG program policies and procedures include a requirement to conduct monitoring of sub- recipients. The purpose of this oversight is to provide program staff with information necessary to verify the accuracy of data supplied by sub-recipients, ensure that sub-recipients are carrying out individual activities as described in their contracts, and ensure that sub-recipients use appropriate accounting and record-keeping methods as it relates to the use of CDBG funds. Each grant year will typically begin with sub-recipient training to discuss several topics such as 1) review CDBG program goals, objectives, and sub-recipient obligations; 2) review the content of the sub-recipient agreements; and 3) review regulations related to the CDBG program that impact sub-recipient program implementation. The training was not held during FY 2022-2023 due to ongoing COVID-19 public health concerns; however, it is anticipated that training will be offered in FY 2023-2024.

On-site monitoring of sub-recipients is conducted biennially unless program or administrative issues are identified, or the grant recipient is new to CDBG. The City conducted on-site monitoring during the FY 2021-2022 reporting period. In general, sub-recipients are complying with program requirements.

The City made every effort to comply with all CDBG and Consolidated Plan regulations. The City’s Citizen Participation Plan ensures that the City considers community input before submitting a substantial amendment or an annual update to HUD. It also provides residents the opportunity to review and comment on annual performance. Construction, professional service, and sub-recipient agreements have been prepared to ensure compliance with applicable federal regulations. Additionally, the City has implemented an open procurement process that encourages bidding from minority and women-owned businesses.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

To encourage resident participation in the City’s CDBG program, the City published a notice in the Aliso Viejo News on September 14, 2023, announcing a 15-day public comment period and public meeting for the 2022-2023 CAPER. The CAPER was made available for public review and comment from September 14, 2023, through September 28, 2023, at Aliso Viejo City Hall located at 12 Journey, Aliso Viejo, CA, and on the City of Aliso Viejo website at www.avcity.org. A meeting to obtain additional public comments was held on October 4, 2023. A copy of this notice and a summary of public comments is provided in Attachment 4.
122

2022-2023 CAPER 17
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

On April 5, 2023, the City substantially amended its 2020 CDBG-CV action plan. It reallocated $115,000 in CDBG-CV funds from its small business grant program to South County Outreach, Age Well Senior Services, and CDBG-CV Admin. No additional changes to the Consolidated Plan or 2022-2023 Annual Action Plan have been undertaken.

Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

Not applicable.
123

2022-2023 CAPER 18
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23 CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 0 NA NA NA NA
Total Labor Hours
Total Section 3 Worker Hours
Total Targeted Section 3 Worker Hours
Table 8 – Total Labor Hours

Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers
Outreach efforts to generate job applicants who are Other Funding Targeted Workers.

Direct, on-the job training (including apprenticeships).

Indirect training such as arranging for, contracting for, or paying tuition for, off-site training.

Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).

Outreach efforts to identify and secure bids from Section 3 business concerns.

Technical assistance to help Section 3 business concerns understand and bid on contracts.

Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns.

Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services.

Held one or more job fairs.

Provided or connected residents with supportive services that can provide direct services or referrals.

Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation.

Assisted residents with finding child care.

Assisted residents to apply for, or attend community college or a four year educational institution.

Assisted residents to apply for, or attend vocational/technical training.

Assisted residents to obtain financial literacy training and/or coaching.

Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

Provided or connected residents with training on computer use or online technologies.

Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses.

Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.

Other.

Table 9 – Qualitative Efforts - Number of Activities by Program 124

2022-2023 CAPER 19
OMB Control No: 2506-0117 (exp. 07/31/2015) Draft 9/14/23

Narrative
The City did not undertake any activities that was subject to Section 3 regulations during the 2022-2023 reporting period.
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17 - CDBG-CV1&3 - Family Assistance Ministries
IDIS Activity:

Project:
0003 - CDBG-CV Public Services
PGM Year:
2020
Description:

Subsistence Payment (05Q)
Matrix Code:

Affordability
Provide decent affordable housing
Objective:

Outcome:

Completed 6/30/2023 12:00:00 AM
12 Journey Aliso Viejo, CA 92656-5335
National Objective:

LMC
Status:

Location:

Housingutility assistance for households impacted by COVID-19 11/21/2020
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

Yes
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2020
B20MW060606
$78,524.75
$8,083.95
$78,524.75
$78,524.75
$8,083.95
$78,524.75
Proposed Accomplishments
People (General) : 480
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
0 11
24 35
White:

Black/African American:

Total:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Hispanic:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
198
9 6
0 0
0 0
0 0
17 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
230
Attachment 1
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Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
214
7 0
0 221
100.0%
Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2020
2021
2022
CDBG-CV funds were utilized to provide rent and utility assistance, food and case management for households impacted by the Coronavirus pandemic. During the FY 20-21 reporting period, 82 individuals were provided assistance in response to COVID-19.

An additional $38,850.75 (CDBG-CV3) funds was allocated to this program on 7-21-21. A total of 79 Aliso Viejo residents that have been impacted by COVID-19 have been assisted with support services (including food bank) and case management during the FY 21-22 report period - 13 of these Aliso Viejo residents also benefitted from rent or utility assistance. An unexpended balance of $8,083.95 will be carried into FY 22-23.

CDBG-CV funds were used to provide case management and food bank services to at-risk Aliso Viejo residents experiencing a financial hardship due to a COVID-19. A total of 221 Aliso Viejo residents were assisted during the FY 22-23 report period.

Attachment 1
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18 - CDBG-CV1&3 - South County Outreach
IDIS Activity:

Project:
0003 - CDBG-CV Public Services
PGM Year:
2020
Description:

Subsistence Payment (05Q)
Matrix Code:

Affordability
Provide decent affordable housing
Objective:

Outcome:

Open
12 Journey Aliso Viejo, CA 92656-5335
National Objective:

LMC
Status:

Location:

Housingutility assistance for households impacted by COVID-19 11/21/2020
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

Yes
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2020
B20MW060606
$178,524.75
$17,815.38
$78,524.75
$178,524.75
$17,815.38
$78,524.75
Proposed Accomplishments
People (General) : 270
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 1
1 0
0 0
0 7
79 88
White:

Black/African American:

Total:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Hispanic:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
216
4 22
0 5
0 7
8 0
20 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
282
Attachment 1
128
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
4 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
4 of 29
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
239
20 18
0 277
100.0%
Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2020
2021
2022
CDBG-CV funds were utilized to provide rent and utility assistance, food, and case management for households impacted by the Coronavirus pandemic. During the FY 20-21 reporting period, 277 individuals were provided assistance in response to COVID-19.

An additional $38,850.75 (CDBG-CV3) funds was allocated to this program on 7-21-21. CDBG-CV funds were used to provide rent or utility assistance to lower-income Aliso Viejo residents that experienced a financial impact due to the COVID-19 pandemic. A total of 31 individuals were assisted during the FY 21-22 report period. An unexpended balance of $17,815.38 will be carried into FY 22-23.

CDBG-CV funds were used to provide case management, food, and rental and utility assistance to assist Aliso Viejo households financially impacted by COVID-19. A total of 32 Aliso Viejo residents were assisted during the FY 22-23 report period, including 24 that benefited from rent or utility assistance. On April 5, 2023, the City substantially amended the CDBG-CV action plan to reallocate $100,000 from Activity #19 (Small Business Grants). Unexpended funds will be carried into the FY 23-24 report period.

Attachment 1
129
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
5 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
5 of 29
19 - CDBG-CV1 - Small Business Loans
IDIS Activity:

Project:
0004 - CDBG-CV Economic Development
PGM Year:
2020
Description:

ED Direct Financial Assistance to For-
Profits (18A)
Matrix Code:

Sustainability
Create economic opportunities
Objective:

Outcome:

Open
12 Journey Aliso Viejo, CA 92656-5335
National Objective:

LMJ
Status:

Location:

Financial assistance to support small businesses impacted by COVID-19 05/06/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

Yes
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2020
B20MW060606
$77,072.00
$5,983.40
$5,983.40
$77,072.00
$5,983.40
$5,983.40
Proposed Accomplishments
Jobs : 4
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
White:

Black/African American:

Total:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Hispanic:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
0 0
0 4
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
4 Attachment 1
130
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
6 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
6 of 29
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
1 2
1 0
4 100.0%
Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2021
2022
CDBG-CV3 funds were allocated to provide grants to small businesses that have been impacted by the COVID-19 pandemic. Grants of up to $7,500 for businesses with 1 to 5 full-time employees, or up to $10,0000 for businesses with 6 to 25 full-time employees will be available.

Businesses must be located in Aliso Viejo, and must be able to demonstrate a COVID-19-related financial impact since November 1, 2021.

Items eligible for grant reimbursement includes purchase of PPE, 3rd party deliver fees, improvements to adapt to curbside delivery or no-touch purchasing. The program is slated to begin on August 8, 2022 and end by October 4, 2022 or when funds are depleted, which ever happens first.

CDBG-CV funds allocated to support local small businesses that were impacted by COVID-19 mandatory shutdowns and social distancing. The City's program was offered at a time when the State and County were also providing direct financial assistance to local businesses impacted by COVID-19. These programs had less robust reporting requirements which made the City's CDBG-CV funded program less attractive. On April 5, 2023, the City substantially amended its CDBG-CV action plan and reallocated $115,000 in CDBG-CV funds to South County Outreach (#18 - $100,000), Age Well Senior Services (#30 - $10,000) and CDBG-CV Admin (#36 - $5,000). The City continued to market the program during the report period. Ultimately, 1 business was approved for assistance, which retained 4 FTEs for lower-income persons. The grant assistance was not paid during the FY 22-23 report period, so the activity will carry into FY 23-24.

Attachment 1
131
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
7 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
7 of 29
20 - ADA - City Hall
IDIS Activity:

Project:
0001 - ADA Improvements - Various Locations
PGM Year:
2021
Description:

Other Public Improvements Not Listed
in 03A-03S (03Z)
Matrix Code:

Availability/accessibility
Create suitable living environments
Objective:

Outcome:

Open
12 Journey Aliso Viejo, CA 92656-5335
National Objective:

LMC
Status:

Location:

ADA improvements at Aliso Viejo City Hall
01/24/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2018
2020
2021
B18MC060606
B20MC060606
B21MC060606
$28,763.00
$0.00
$0.00
$20,819.71
$0.00
$0.00
$37,618.29
$0.00
$0.00
$87,201.00
$0.00
$0.00
Proposed Accomplishments
Public Facilities : 1
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
0 White:

Black/African American:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Attachment 1
132
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
8 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
8 of 29
0 0
0 Total:

Hispanic:
0 0
0 0
0 0
0 0
0 0
0 0
0 Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
0 0
0 0
0 Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2021
2022
CDBG funds were allocated to fund the replacement or upgrades at City Hall to comply with current ADA regulations. Due to city staffing issues, COVID pandemic stay at home orders, and supply chain challenges, this project has experienced delays. Public Works staff is evaluating what work that can be done inhouse to reduce cost. Staff anticipates a bid package will be be issued by December 2022 with work completed by the end of FY 22-23.

The City continued to experience issues with design cost and securing competitive bids. Accessible doors entering City Hall public counter are anticipated to be installed during FY 23-24.

Attachment 1
133
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
9 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
9 of 29
21 - ADA - Aliso Viejo Center
IDIS Activity:

Project:
0001 - ADA Improvements - Various Locations
PGM Year:
2021
Description:

Neighborhood Facilities (03E)
Matrix Code:

Availability/accessibility
Create suitable living environments
Objective:

Outcome:

Canceled 4/19/2023 12:00:00 AM
31 Santa Barbara Dr Aliso Viejo, CA 92656-1622
National Objective:

LMC
Status:

Location:

ADA improvements to a public facility
01/24/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
No data returned for this view. This might be because the applied filter excludes all data.

Proposed Accomplishments
Public Facilities : 1
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
White:

Black/African American:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 Attachment 1
134
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
10 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
10 of 29
0 0
0 0
Total:

Asian/Pacific Islander:

Hispanic:
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
0 0
0 0
0 Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2021
2022
CDBG funds were allocated to fund the replacement or upgrades at the Aliso Viejo Center to comply with current ADA regulations. Due to city staffing issues, COVID pandemic stay at home orders, and supply chain challenges, this project has experienced delays. Public Works staff is evaluating work that can be done inhouse to reduce cost. Staff anticipates a bid package will be be issued by December 2022 with work completed by the end of FY 22-23.

The activity was canceled as part of the FY 23-24 Action Plan process. Unused funds ($41,621.00 - 2021 funds) will be reprogrammed to the FY 23-24 cap project.

Attachment 1
135
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
11 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
11 of 29
22 - ADA - Aliso Viejo Aquatic Center
IDIS Activity:

Project:
0001 - ADA Improvements - Various Locations
PGM Year:
2021
Description:

Parks, Recreational Facilities (03F)
Matrix Code:

Availability/accessibility
Create suitable living environments
Objective:

Outcome:

Canceled 4/19/2023 12:00:00 AM
29 Santa Barbara Dr Aliso Viejo, CA 92656-1622
National Objective:

LMC
Status:

Location:

ADA improvements at the City's aquatic center
01/24/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
No data returned for this view. This might be because the applied filter excludes all data.

Proposed Accomplishments
Public Facilities : 1
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
White:

Black/African American:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 Attachment 1
136
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
12 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
12 of 29
0 0
0 0
Total:

Asian/Pacific Islander:

Hispanic:
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
0 0
0 0
0 Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2021
2022
CDBG funds were allocated to fund the replacement or upgrades at the Aliso Viejo Aquatic Center to comply with current ADA regulations. Due to city staffing issues, COVID pandemic stay at home orders, and supply chain challenges, this project has experienced delays. Public Works staff is evaluating work that can be done inhouse to reduce costs. Staff anticipates a bid package will be be issued by December 2022 with work completed by the end of FY 22-23.

The activity was canceled as part of the FY 23-24 Action Plan process. Unused funds ($45,569.00 - 2021 funds) will be reprogrammed to the FY 23-24 cap project.

Attachment 1
137
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
13 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
13 of 29
23 - ADA - Aliso Viejo Community Center (Iglesia Park Center) IDIS Activity:

Project:
0001 - ADA Improvements - Various Locations
PGM Year:
2021
Description:

Neighborhood Facilities (03E)
Matrix Code:

Availability/accessibility
Create suitable living environments
Objective:

Outcome:

Canceled 4/19/2023 12:00:00 AM
12 Journey Aliso Viejo, CA 92656-5335
National Objective:

LMC
Status:

Location:

ADA improvements at a city community center
01/31/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
No data returned for this view. This might be because the applied filter excludes all data.

Proposed Accomplishments
Public Facilities : 1
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
White:

Black/African American:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 Attachment 1
138
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
14 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
14 of 29
0 0
0 0
Total:

Asian/Pacific Islander:

Hispanic:
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
0 0
0 0
0 Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2021
2022
CDBG funds were allocated to fund the replacement or upgrades at the Aliso Viejo Community Center (a.k.a. Iglesia Park Center) to comply with current ADA regulations. Due to city staffing issues, COVID pandemic stay at home orders, and supply chain challenges, this project has experienced delays. Public Works staff is evaluating work that can be done inhouse to reduce costs. Staff anticipates a bid package will be be issued by December 2022 with work completed by the end of FY 22-23.

The activity was canceled as part of the FY 23-24 Action Plan process. Unused funds ($41,621.00 - 2021 funds) will be reprogrammed to the FY 23-24 cap project.

Attachment 1
139
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
15 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
15 of 29
24 - ADA - Iglesia Park
IDIS Activity:

Project:
0001 - ADA Improvements - Various Locations
PGM Year:
2021
Description:

Parks, Recreational Facilities (03F)
Matrix Code:

Availability/accessibility
Create suitable living environments
Objective:

Outcome:

Canceled 4/19/2023 12:00:00 AM
24671 Via Iglesia Aliso Viejo, CA 92656-1125
National Objective:

LMC
Status:

Location:

ADA improvements at neighborhood park
01/24/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
No data returned for this view. This might be because the applied filter excludes all data.

Proposed Accomplishments
Public Facilities : 1
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
White:

Black/African American:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 Attachment 1
140
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
16 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
16 of 29
0 0
0 0
Total:

Asian/Pacific Islander:

Hispanic:
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
0 0
0 0
0 Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2021
2022
CDBG funds were allocated to fund the replacement or upgrades at Iglesia Park to comply with current ADA regulations. Due to city staffing issues, COVID pandemic stay at home orders, and supply chain challenges, this project has experienced delays. Public Works staff is evaluating work that can be done inhouse to reduce costs. Staff anticipates a bid package will be be issued by December 2022 with work completed by the end of FY 22-23.

The activity was canceled as part of the FY 23-24 Action Plan process. Unused funds ($2,156.71 - 2021 funds) will be reprogrammed to the FY 23-24 cap project.

Attachment 1
141
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
17 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
17 of 29
30 - CDBG-CV3 Age Well Senior Services
IDIS Activity:

Project:
0003 - CDBG-CV Public Services
PGM Year:
2020
Description:

Senior Services (05A)
Matrix Code:

Availability/accessibility
Create suitable living environments
Objective:

Outcome:

Open
12 Journey Aliso Viejo, CA 92656-5335
National Objective:

LMC
Status:

Location:

CDBG-CV funds for senior meals on wheels program in response to increase demand for services due to the Coronavirus and to prevent the spread of the virus. 02/12/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

Yes
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2020
B20MW060606
$50,000.00
$0.00
$40,000.00
$50,000.00
$0.00
$40,000.00
Proposed Accomplishments
People (General) : 50
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
5 5
White:

Black/African American:

Total:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Hispanic:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
42 3
5 1
0 0
0 0
0 1
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 52
Attachment 1
142
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
18 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
18 of 29
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
44 6
2 0
52 100.0%
Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2021
2022
CDBG-CV funds used to support senior meals on wheels program in response to COVID-19. A total of 52 seniors have been assisted during the FY 21-22 report period. The program allows seniors to reduce their potential exposure to the COVID-19 virus. Age Well reports a 13% increase in service request compared to pre-pandemic assistance. The Activity is complete.

On April 5, 2023, the City substantially amended the CDBG-CV action plan to reallocate $10,000 from Activity #19 (Small Business Grants). Age Well did not use these funds during the FY 22-23 report period. CDBG-CV funds will be carried into the FY 23-24 report period.

Attachment 1
143
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
19 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
19 of 29
31 - CDBG-CV3 YMCA
IDIS Activity:

Project:
0003 - CDBG-CV Public Services
PGM Year:
2020
Description:

Child Care Services (05L)
Matrix Code:

Availability/accessibility
Create suitable living environments
Objective:

Outcome:

Completed 6/30/2023 12:00:00 AM
12 Journey Aliso Viejo, CA 92656-5335
National Objective:

LMC
Status:

Location:

CDBG-CV3 funds allocated to assist childcare provider purchase PPE and other cleaning and disinfecting and program supplies to prevent the spread of the Coronavirus. 02/12/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

Yes
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2020
B20MW060606
$25,000.00
$21,383.05
$25,000.00
$25,000.00
$21,383.05
$25,000.00
Proposed Accomplishments
People (General) : 60
Number assisted:

Actual Accomplishments
Person
Hispanic
0 1
0 0
0 3
0 0
1 0
1 11
6 23
White:

Black/African American:

Total:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Hispanic:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
51 4
4 0
1 0
0 2
0 27
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 89
Attachment 1
144
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
20 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
20 of 29
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
45 32
10 0
87 100.0%
Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2021
2022
CDBG-CV funds allocated to assist YMCA After School childcare program address COVID-19 concerns. The State of CA requires enhances disinfecting of childcare facilities to prevent the spread of COVID-19. Funds were used to purchase cleaning supplies, PPE and COVID test for six childcare program sites in Aliso Viejo. This is a multi-year agreement. Unspent CDBG-CV funds will be rolled forward to FY 22-23. A total of 69 youths were assisted with CDBG-CV funds during the FY 21-22 report period. An unexpended balance of $21,383.05 will be carried into FY 22-23.

CDBG-CV funds allocated to assist YMCA After School childcare program to address COVID-19 concerns. The State of CA requires enhances disinfecting of childcare facilities to prevent the spread of COVID-19. Funds were used to purchase cleaning supplies, PPE and COVID test for six childcare program sites in Aliso Viejo. This is year 2 of a multi-year agreement. A total of 87 youths were assisted with CDBG-CV funds during the FY 22-23 report period. The activity is complete.

Attachment 1
145
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
21 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
21 of 29
32 - Public Facility Acquisition
IDIS Activity:

Project:
0001 - Public Facility Acquisition
PGM Year:
2022
Description:

Acquisition of Real Property (01)
Matrix Code:

Availability/accessibility
Create suitable living environments
Objective:

Outcome:

Completed 6/30/2023 12:00:00 AM
Address Suppressed
National Objective:

LMC
Status:

Location:

CDBG funds will be used to assist with the acquisition of a condominium to preserve long term affordability. 11/29/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2020
2021
2022
B20MC060606
B21MC060606
B22MC060606
$13,026.57
$13,026.57
$13,026.57
$14,553.26
$14,553.26
$14,553.26
$159,344.17
$159,344.17
$159,344.17
$186,924.00
$186,924.00
$186,924.00
Proposed Accomplishments
People (General) : 4
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
0 White:

Black/African American:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
5 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 Attachment 1
146
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
22 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
22 of 29
0 0
0 Total:

Hispanic:
0 0
0 0
0 0
0 0
0 0
0 0
5 Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
5 0
0 0
5 100.0%
Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2022
The City completed the acquisition of a housing unit during the FY 22-23 report period to be used as transitional housing for a homeless family.

The City entered into an agreement with Family Assistance Ministries (FAM) to manage the unit including tenant selection. FAM will provide supportive services for unit residents. FAM reports that on March 2, 2023, a five-person family was placed in the unit. The project (acquisition) is complete.

Attachment 1
147
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
23 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
23 of 29
33 - Fair Housing Foundation
IDIS Activity:

Project:
0002 - Fair Housing Foundation
PGM Year:
2022
Description:

Fair Housing Activities (if CDBG, then
subject to 15% cap) (05J)
Matrix Code:

Affordability
Provide decent affordable housing
Objective:

Outcome:

Completed 6/30/2023 12:00:00 AM
12 Journey Aliso Viejo, CA 92656-5335
National Objective:

LMC
Status:

Location:

CDBG funds to support fair housing outreach, education and enforcement. 11/29/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2022
B22MC060606
$3,500.00
$3,500.00
$3,500.00
$3,500.00
$3,500.00
$3,500.00
Proposed Accomplishments
People (General) : 62
Number assisted:

Actual Accomplishments
Person
Hispanic
0 1
0 0
0 0
0 0
0 0
0 0
11 12
White:

Black/African American:

Total:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Hispanic:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
45 4
4 0
0 0
0 0
0 2
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 55
Attachment 1
148
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
24 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
24 of 29
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
22 11
10 12
55 78.2%
Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2022
CDBG funds allocated to support fair housing outreach, education and enforcement services. A total of 55 individuals were assisted during the FY 22-23 report period. Four fair housing allegations were received during the year: 2 re: mental disability, 1 re: gender and 1 re: religion. Three (3) allegations were resolved; 1 case was open for further investigation (mental disability). The majority of fair housing issues addressed during the year include rent increases, evictions and habitability. The activity is complete.

Attachment 1
149
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
25 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
25 of 29
34 - Family Assistance Ministries
IDIS Activity:

Project:
0003 - Family Assistance Ministries
PGM Year:
2022
Description:

Operating Costs of Homeless/AIDS
Patients Programs (03T)
Matrix Code:

Affordability
Provide decent affordable housing
Objective:

Outcome:

Completed 6/30/2023 12:00:00 AM
Address Suppressed
National Objective:

LMC
Status:

Location:

Interim housing and support services for homeless families with children. 11/29/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2022
B22MC060606
$7,500.00
$7,500.00
$7,500.00
$7,500.00
$7,500.00
$7,500.00
Proposed Accomplishments
People (General) : 8
Number assisted:

Actual Accomplishments
Person
Hispanic
0 0
0 0
0 0
0 0
0 0
0 1
0 1
White:

Black/African American:

Total:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Hispanic:

Owner
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Renter
Total
Hispanic
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
Total
Hispanic
Total
5 0
0 0
0 0
0 1
0 3
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 9
Attachment 1
150
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
26 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
26 of 29
Female-headed Households:
0 0
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 0
0 0
0 Renter
0 0
0 0
0 Total
0 0
0 0
0 Person
9 0
0 0
9 100.0%
Annual Accomplishments
Years
Accomplishment Narrative
# Benefitting
2022
CDBG funds allocated to provide case management and support services for homeless families with children residing in transitional housing. A total of 9 individuals were assisted during the FY 22-23 report period. The activity is complete.

Attachment 1
151
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
27 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
27 of 29
35 - CDBG Program Administration
IDIS Activity:

Project:
0004 - CDBG Program Administration
PGM Year:
2022
Description:

General Program Administration (21A)
Matrix Code:

Objective:

Outcome:

Completed 6/30/2023 12:00:00 AM
,
National Objective:

Status:

Location:

CDBG program oversight and coordination.

Admin funds also used for costs associated with preparation of the FY 2023-2027 Consolidated Plan including the FY 23-24 Action Plan.

The activity is complete.
11/29/2022
Initial Funding Date:

Activity to prevent, prepare for, and respond to Coronavirus:

No
Financing
Fund Type
Grant Year
Grant
Funded Amount
Drawn In Program Year
Drawn Thru Program Year
Total
CDBG
EN
Total
2022
B22MC060606
$43,400.00
$43,400.00
$43,400.00
$43,400.00
$43,400.00
$43,400.00
Proposed Accomplishments
Number assisted:

Actual Accomplishments
Person
Hispanic
0 White:

Black/African American:

Total:

Asian:

American Indian/Alaskan Native:

Native Hawaiian/Other Pacific Islander:

American Indian/Alaskan Native & White:

Asian White:

Black/African American & White:

American Indian/Alaskan Native & Black/African American:

Other multi-racial:

Asian/Pacific Islander:

Hispanic:

Owner
Total
Hispanic
0 0
Renter
Total
Hispanic
0 0
Total
Total
Hispanic
Total
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 Attachment 1
152
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
28 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
28 of 29
Female-headed Households:
0 Income Category:

Low Mod
Moderate
Extremely Low
Non Low Moderate
Total
Percent Low/Mod
Owner
0 Renter
0 Total
0 0
0 0
0 Person
0 Annual Accomplishments
No data returned for this view. This might be because the applied filter excludes all data.

Attachment 1
153
07-Sep-2023
U.S. Department of Housing and Urban Development
13:56
29 Date:

Time:

Page:

Office of Community Planning and Development
Integrated Disbursement and Information System
CDBG Activity Summary Report (GPR) for Program Year 2022

ALISO VIEJO
Page:

PR03 - ALISO VIEJO
29 of 29
$737,646.50
$294,589.78
$469,356.90
Total Funded Amount:

Total Drawn In Program Year:

Total Drawn Thru Program Year:

Attachment 1
154
PR26 - CDBG Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE:
1 13:59
09-07-23
Program Year 2022

ALISO VIEJO , CA
Metrics
Grantee
Program Year
PART I: SUMMARY OF CDBG RESOURCES
01 UNEXPENDED CDBG FUNDS AT END OF PREVIOUS PROGRAM YEAR 02 ENTITLEMENT GRANT
03 SURPLUS URBAN RENEWAL
04 SECTION 108 GUARANTEED LOAN FUNDS
05 CURRENT YEAR PROGRAM INCOME
05a CURRENT YEAR SECTION 108 PROGRAM INCOME (FOR SI TYPE) 06 FUNDS RETURNED TO THE LINE-OF-CREDIT
06a FUNDS RETURNED TO THE LOCAL CDBG ACCOUNT
07 ADJUSTMENT TO COMPUTE TOTAL AVAILABLE
08 TOTAL AVAILABLE (SUM, LINES 01-07)
PART II: SUMMARY OF CDBG EXPENDITURES
09 DISBURSEMENTS OTHER THAN SECTION 108 REPAYMENTS AND PLANNING/ADMINISTRATION 10 ADJUSTMENT TO COMPUTE TOTAL AMOUNT SUBJECT TO LOW/MOD BENEFIT 11 AMOUNT SUBJECT TO LOW/MOD BENEFIT (LINE 09 + LINE 10) 12 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
13 DISBURSED IN IDIS FOR SECTION 108 REPAYMENTS
14 ADJUSTMENT TO COMPUTE TOTAL EXPENDITURES
15 TOTAL EXPENDITURES (SUM, LINES 11-14)
16 UNEXPENDED BALANCE (LINE 08 - LINE 15)
PART III: LOWMOD BENEFIT THIS REPORTING PERIOD
17 EXPENDED FOR LOW/MOD HOUSING IN SPECIAL AREAS
18 EXPENDED FOR LOW/MOD MULTI-UNIT HOUSING
19 DISBURSED FOR OTHER LOW/MOD ACTIVITIES
20 ADJUSTMENT TO COMPUTE TOTAL LOW/MOD CREDIT
21 TOTAL LOW/MOD CREDIT (SUM, LINES 17-20)
22 PERCENT LOW/MOD CREDIT (LINE 21/LINE 11)

LOW/MOD BENEFIT FOR MULTI-YEAR CERTIFICATIONS
23 PROGRAM YEARS(PY) COVERED IN CERTIFICATION
24 CUMULATIVE NET EXPENDITURES SUBJECT TO LOW/MOD BENEFIT CALCULATION 25 CUMULATIVE EXPENDITURES BENEFITING LOW/MOD PERSONS
26 PERCENT BENEFIT TO LOW/MOD PERSONS (LINE 25/LINE 24) PART IV: PUBLIC SERVICE (PS) CAP CALCULATIONS
27 DISBURSED IN IDIS FOR PUBLIC SERVICES
28 PS UNLIQUIDATED OBLIGATIONS AT END OF CURRENT PROGRAM YEAR 29 PS UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS PROGRAM YEAR 30 ADJUSTMENT TO COMPUTE TOTAL PS OBLIGATIONS
31 TOTAL PS OBLIGATIONS (LINE 27 + LINE 28 - LINE 29 + LINE 30) 32 ENTITLEMENT GRANT
33 PRIOR YEAR PROGRAM INCOME
34 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PS CAP
35 TOTAL SUBJECT TO PS CAP (SUM, LINES 32-34)
36 PERCENT FUNDS OBLIGATED FOR PS ACTIVITIES (LINE 31/LINE 35) PART V: PLANNING AND ADMINISTRATION (PA) CAP
37 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
38 PA UNLIQUIDATED OBLIGATIONS AT END OF CURRENT PROGRAM YEAR 39 PA UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS PROGRAM YEAR 40 ADJUSTMENT TO COMPUTE TOTAL PA OBLIGATIONS
41 TOTAL PA OBLIGATIONS (LINE 37 + LINE 38 - LINE 39 +LINE 40) 42 ENTITLEMENT GRANT
43 CURRENT YEAR PROGRAM INCOME
44 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PA CAP
45 TOTAL SUBJECT TO PA CAP (SUM, LINES 42-44)
46 PERCENT FUNDS OBLIGATED FOR PA ACTIVITIES (LINE 41/LINE 45)

ALISO VIEJO , CA
2,022.00

245,748.54
228,298.00

0.00 0.00

0.00 474,046.54

197,924.00

0.00 197,924.00
43,400.00

0.00 0.00
241,324.00
232,722.54

0.00 0.00
197,924.00

0.00 197,924.00
100.00%

PY: 2020 PY: 2021 PY: 2022
414,356.82
414,356.82
100.00%

11,000.00

0.00 0.00

0.00 11,000.00
228,298.00

0.00 0.00
228,298.00

4.82%

43,400.00

0.00 0.00

0.00 43,400.00
228,298.00

0.00 0.00
228,298.00

19.01%
Attachment 2
1 of 5
155
PR26 - CDBG Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE:
2 13:59
09-07-23
Program Year 2022

ALISO VIEJO , CA
LINE 17 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 17 No data returned for this view. This might be because the applied filter excludes all data.

LINE 18 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 18 No data returned for this view. This might be because the applied filter excludes all data.

LINE 19 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 19 Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number
Activity Name
Matrix
Code
National
Objective
Drawn Amount
2022

2022

2022
2022
2022

Total
1 3
2 2
2 32
34 33
33 33
6720862
6803934
6759707
6803934
6807401
Public Facility Acquisition
Family Assistance Ministries
Fair Housing Foundation
Fair Housing Foundation
Fair Housing Foundation
01 01
03T
03T
05J
05J
05J
05J
LMC
Matrix Code 01
LMC
Matrix Code 03T
LMC
LMC
LMC
Matrix Code 05J
$186,924.00
$186,924.00
$7,500.00
$7,500.00
$1,699.06
$848.10
$952.84
$3,500.00
$197,924.00
LINE 27 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 27 Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number
Activity to
prevent,
prepare for,
and respond
to
Coronavirus
Activity Name
Grant Number
Fund
Type
Matrix
Code
National
Objective
Drawn Amount
2022

2022
2022
2022

Total
3 2
2 2
34 33
33 33
6803934
6759707
6803934
6807401
No
No
No
No
No
Family Assistance Ministries
Fair Housing Foundation
Fair Housing Foundation
Fair Housing Foundation
Activity to prevent, prepare for, and respond to Coronavirus B22MC060606
B22MC060606
B22MC060606
B22MC060606
EN
EN
EN
EN
03T
03T
05J
05J
05J
05J
LMC
Matrix Code 03T
LMC
LMC
LMC
Matrix Code 05J
$7,500.00
$7,500.00
$1,699.06
$848.10
$952.84
$3,500.00
$11,000.00
$11,000.00
LINE 37 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 37 Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number
Activity Name
Matrix
Code
National
Objective
Drawn Amount
2022
2022
2022

Total
4 4
4 35
35 35
6720862
6759707
6803934
CDBG Program Administration
CDBG Program Administration
CDBG Program Administration
21A
21A
21A
21A
Matrix Code 21A
$10,674.45
$5,478.74
$27,246.81
$43,400.00
$43,400.00
Attachment 2
2 of 5
156
PR26 - CDBG-CV Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE:
1 14:00
09-07-23

ALISO VIEJO , CA
Metrics
New Grantee (CV)
PART I: SUMMARY OF CDBG-CV RESOURCES
01 CDBG-CV GRANT
02 FUNDS RETURNED TO THE LINE-OF-CREDIT
03 FUNDS RETURNED TO THE LOCAL CDBG ACCOUNT
04 TOTAL CDBG-CV FUNDS AWARDED
PART II: SUMMARY OF CDBG-CV EXPENDITURES
05 DISBURSEMENTS OTHER THAN SECTION 108 REPAYMENTS AND PLANNING/ADMINISTRATION 06 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
07 DISBURSED IN IDIS FOR SECTION 108 REPAYMENTS
08 TOTAL EXPENDITURES (SUM, LINES 05 - 07)
09 UNEXPENDED BALANCE (LINE 04 - LINE8 )
PART III: LOWMOD BENEFIT FOR THE CDBG-CV GRANT
10 EXPENDED FOR LOW/MOD HOUSING IN SPECIAL AREAS
11 EXPENDED FOR LOW/MOD MULTI-UNIT HOUSING
12 DISBURSED FOR OTHER LOW/MOD ACTIVITIES
13 TOTAL LOW/MOD CREDIT (SUM, LINES 10 - 12)
14 AMOUNT SUBJECT TO LOW/MOD BENEFIT (LINE 05)
15 PERCENT LOW/MOD CREDIT (LINE 13/LINE 14)
PART IV: PUBLIC SERVICE (PS) CALCULATIONS
16 DISBURSED IN IDIS FOR PUBLIC SERVICES
17 CDBG-CV GRANT
18 PERCENT OF FUNDS DISBURSED FOR PS ACTIVITIES (LINE 16/LINE 17) PART V: PLANNING AND ADMINISTRATION (PA) CAP
19 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
20 CDBG-CV GRANT
21 PERCENT OF FUNDS DISBURSED FOR PA ACTIVITIES (LINE 19/LINE 20)

ALISO VIEJO , CA

414,751.00

0.00 0.00
414,751.00

235,532.90

0.00 0.00
235,532.90
179,218.10

0.00 0.00
235,532.90
235,532.90
235,532.90
100.00%

222,049.50
414,751.00

53.54%

0.00 414,751.00

0.00%
Attachment 2
3 of 5
157
PR26 - CDBG-CV Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE:
2 14:00
09-07-23

ALISO VIEJO , CA
LINE 10 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 10 No data returned for this view. This might be because the applied filter excludes all data.

LINE 11 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 11 No data returned for this view. This might be because the applied filter excludes all data.

LINE 12 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 12 Plan Year
IDIS Project
IDIS
Activity
Voucher
Number
Activity Name
Matrix
Code
National
Objective
Drawn Amount
2020
Total
3 4
17 18
30 31
19 6512426
6538181
6672624
6676334
6803934
6512426
6538181
6657643
6672624
6759707
6803934
6657643
6672624
6672624
6759707
6803934
6720862
6759707
6803934
6804272
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV3 Age Well Senior Services
CDBG-CV3 Age Well Senior Services
CDBG-CV3 YMCA
CDBG-CV3 YMCA
CDBG-CV3 YMCA
CDBG-CV1 - Small Business Loans
CDBG-CV1 - Small Business Loans
CDBG-CV1 - Small Business Loans
CDBG-CV1 - Small Business Loans
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05A
05A
05L
05L
05L
18A
18A
18A
18A
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMJ
LMJ
LMJ
LMJ
$6,267.04
$12,160.72
$37,355.25
$14,657.79
$8,083.95
$14,089.52
$7,917.00
$14,344.86
$24,357.99
$15,934.56
$1,880.82
$30,000.00
$10,000.00
$3,616.95
$7,401.77
$13,981.28
$2,295.00
$1,125.00
$2,563.40
$7,500.00
$235,532.90
LINE 16 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 16 Plan Year
IDIS Project
IDIS
Activity
Voucher
Number
Activity Name
Matrix
Code
National
Objective
Drawn Amount
2020
3 17
18 6512426
6538181
6672624
6676334
6803934
6512426
6538181
6657643
6672624
6759707
6803934
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - Family Assistance Ministries
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
CDBG-CV1&3 - South County Outreach
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05Q
05Q
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
LMC
$6,267.04
$12,160.72
$37,355.25
$14,657.79
$8,083.95
$14,089.52
$7,917.00
$14,344.86
$24,357.99
$15,934.56
$1,880.82
Attachment 2
4 of 5158
PR26 - CDBG-CV Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE:
3 14:00
09-07-23

ALISO VIEJO , CA
Plan Year
IDIS Project
IDIS
Activity
Voucher
Number
Activity Name
Matrix
Code
National
Objective
Drawn Amount
2020
Total
3 30
31 6657643
6672624
6672624
6759707
6803934
CDBG-CV3 Age Well Senior Services
CDBG-CV3 Age Well Senior Services
CDBG-CV3 YMCA
CDBG-CV3 YMCA
CDBG-CV3 YMCA
05A
05A
05L
05L
05L
LMC
LMC
LMC
LMC
LMC
$30,000.00
$10,000.00
$3,616.95
$7,401.77
$13,981.28
$222,049.50
LINE 19 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 19 No data returned for this view. This might be because the applied filter excludes all data.

Attachment 2
5 of 5
159
City of Aliso Viejo Analysis of Impediments to Fair Housing Summary

1 of 2
Attachment 3
PROPOSED AI GOALS AND STRATEGIES FY 2022-2023 ACCOMPLISHMENTS 1) In collaboration with the OCHA:
a) Attend quarterly Orange County Housing Authority (OCHA) Housing Advisory Committee to enhance the exchange of
information regarding the availability, procedures, and policies related to the Housing Assistance Voucher program and regional housing issues.
b) Support OCHA's affirmative fair marketing plan and de- concentration policies by providing five-year and annual PHA plan certifications.
c) In coordination with OCHA and fair housing services provider, conduct landlord education campaign to educate property owners about State law prohibiting discrimination based on household income.
a) City staff attended online meetings during the reporting period. b) The City provided the PHA Plan certifications to OCHA staff upon request. c) California law expanded “source of income” protections to individuals who use housing rent assistance (e.g., Housing Choice Voucher) effective January 2020. The Fair Housing Foundation (FHF) is prepared to receive and address these types of complaints. FHF received no allegations of discrimination based on income from Aliso Viejo residents during the FY 22-23 reporting period.
2) Through the City's fair housing contractor:
a) Provide fair housing education and information to apartment managers and homeowner associations on why denial of
reasonable modifications/accommodations is unlawful.
b) Conduct multi-faceted fair housing outreach to tenants, landlords, property owners, realtors, and property
management companies. Methods of outreach may include
workshops, informational booths, presentations to
community groups, and distribution of multi-lingual fair housing literature.
c) Provide general fair housing counseling and referral services to address tenant-landlord issues, investigate allegations of fair housing discrimination, and take appropriate actions to conciliate cases or refer to appropriate authorities.
d) Include testing/audits within the scope of work with fair housing provider.
a) During the reporting period, the FHF received 2 inquiries regarding reasonable accommodation from Aliso Viejo residents. The inquiries were resolved. b) Because of the COVID-19 pandemic, training sessions for tenants and rental property owners/managers were limited to online platforms – regionally, 54 fair housing workshops, staff training, and tester training were held during the reporting period. All activities were available to Aliso Viejo residents, landlords, and property managers.

Additionally, the FHF distributed over 950 pieces of fair housing literature throughout Aliso Viejo during the reporting period.
c) The FHF assisted 55 unduplicated Aliso Viejo households by addressing various housing issues, disputes, and inquiries. The primary issues addressed during the reporting period included evictions, rights & responsibilities, and habitability. Most cases were resolved through education and counseling. The FHF received 4 allegations of fair housing law violations from Aliso Viejo residents during the reporting period (1 regarding gender, 1 regarding religious affiliation, and 2 regarding mental disability. 3 cases were resolved through counseling; 1 case regarding religious discrimination was opened for further investigation, but no evidence supporting the allegations was found. 160
City of Aliso Viejo Analysis of Impediments to Fair Housing Summary

2 of 2
Attachment 3
e) Regularly consult with the City's fair housing contractor on potential strategies for affirmatively furthering fair housing on an ongoing basis.
d) FHF conducts its audits based on the most common protected classes; however, no audits or testing were conducted for Aliso Viejo during FY 22-23. e) On an annual basis, City staff discuss fair housing programming strategies with the FHF regarding education and enforcement activity.
3) Support local eviction prevention strategies to reduce the number of homeless individuals and families (homelessness prevention services).
▪ The City used CDBG-CV funds to support services to prevent the loss of housing due to COVID-19.
4) Prepare a new Housing Element that is compliant with all current State laws and is certified by the California Department of Housing and Community Development (HCD).
▪ On January 19, 2022, the City adopted its 6th Cycle Housing Element, which was submitted to HCD for certification. HCD reviewed the draft Housing Element and issued a response letter, which includes a list of items to be addressed for certification. City staff continues to prepare a revised draft that addresses the HCD response letter. The Housing Element is anticipated to be certified during FY 22-23. 5) Update zoning ordinance to comply with current State law. ▪ The City will revise its zoning ordinance to ensure that regulations pertaining to density bonus, supportive housing, and low barrier navigation centers are consistent with State law during the FY 22-23 reporting period.

161

CITY OF ALISO VIEJO

NOTICE OF PUBLIC REVIEW PERIOD

AND CITY COUNCIL PUBLIC MEETING

NOTICE IS HEREBY GIVEN that on Wednesday, October 4, 2023, at 7:00 pm (or as soon thereafter as possible), the City Council of the City of Aliso Viejo will conduct a public meeting to consider the following:

APPROVAL AND AUTHORIZATION TO SUBMIT THE CITY OF ALISO VIEJO’S 2022-2023 CONSOLIDATED

ANNUAL PERFORMANCE REPORT (CAPER) FOR EXPENDITURES OF COMMUNITY DEVELOPMENT

BLOCK GRANT (CDBG) AND COMMUNITY DEVELOPMENT BLOCK GRANT -CORONAVIRUS (CDBG-CV) FUNDS

City Council Meeting Location: City Hall Council Chambers, 12 Journey, Suite 150, Aliso Viejo, CA 92656

2022-2023 CAPER
The City of Aliso Viejo is a recipient of Community Development Block Grant (CDBG) funds, awarded to the City by the U.S. Department of Housing and Urban Development (HUD). To receive CDBG funds, the City must prepare a multi-year strategic plan known as the Consolidated Plan. At the beginning of each year, the City also prepares a one-year expenditure plan outlining the planned use of CDBG funds. Additionally, with the approval of the CARES Act of 2020, the City also received CDBG-CV funds, which were used to prevent, prepare for, or respond to local impacts of the COVID-19 pandemic. The primary beneficiaries of CDBG and CDBG-CV funds are lower- income Aliso Viejo residents.

At the conclusion of the fiscal year, the City must prepare a year -end performance report known as the Consolidated Annual Performance and Evaluation Report (CAPER). The 2022-2023 CAPER covers the period of July 1, 2022, through June 30, 2023, and provides a summary of activities undertaken with CDBG and CDBG-CV funds during the reporting period.

Public Comment Period
The draft 2022-2023 CAPER will be available for public review at the City of Aliso Viejo City Hall and on the City’s website www.avcity.org. The review period will begin on September 14, 2023, and end on September 28, 2023.

Members of the public may submit written comments during the public review and comment period. Comments should be submitted no later than 5:00 p.m. September 28, 2023, to Rose Rivera, Senior Planner, City of Aliso Viejo, 12 Journey, Suite 100, Aliso Viejo, California 92656 or by email to [email protected]. Comments will continue to be accepted during the public meeting, through the close of the public comment period. Please reference the 2022-2023 CAPER and City Council meeting date in any correspondence.

INVITATION TO BE HEARD: All interested persons will be given an opportunity to comment on this item at the public meeting. In addition, written comments may be submitted to the City Council prior to the meeting, to the attention of: Mitzi Ortiz, MMC, City Clerk, City of Aliso Viejo, 12 Journey, Suite 100, Aliso Viejo, California 92656.

Please reference the title and date of meeting in any correspondence.

If you wish to challenge the above projects in court, the challenge will be limited only to those issues you or someone else raised at the public meeting or in written correspondence delivered to the City at or before the public meeting as described in this notice.

The agenda materials pertaining to this item will be made available for public review at the City and on the City’s website at www.avcity.org by approximately 4:30 pm on September 28, 2023. Please contact Planning Services at (949) 425-2525 or [email protected] if you have any questions regarding the agenda materials.

It is the intention of the City of Aliso Viejo to comply with the Americans with Disabilities Act (ADA). If you require special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the City Clerk’s Office at (949) 425-2505 at least 48 hours before the meeting to inform us of your particular needs.

/s/Mitzi Ortiz, MMC
City Clerk

1/8-page display ad published in the Aliso Niguel News September 14, 2023

Attachment 4
1 of 2 162

Summary of Public Comments

15-DAY COMMENT PERIOD
TBD

CITY COUNCILMEETING
TBD
Attachment 4
2 of 2
163
City of Aliso Viejo

AGENDA ITEM
DATE: October 4, 2023
TO: Mayor and City Council
FROM: Ann Eifert, Director of Financial Services
SUBJECT: COMMUNITIES FACILITIES DISTRICT NO. 2005-01 (GLENWOOD AT ALISO VIEJO) – 2023 SPECIAL TAX REFUNDING BONDS
Recommended Actions:

1. Adopt a Resolution authorizing the 2023 special tax refunding bonds of the Community Facilities District 2005-01 (Glenwood at Aliso Viejo), approving the form Fiscal Agent Agreement, authorizing negotiation of terms of the sale of bonds, approving a Preliminary Official Statement, authorizing preparation of a Final Official Statement; and approving other related documents and actions; and

2. Authorize the City Manager to execute necessary documents for the refinancing of the bonds.

Fiscal Impact:

All costs incurred due to the refinancing of the CFD 2005-01 (the “District”) will be paid from costs of issuance and as part of the proceeds of the refunding of the bonds. The Refunding Bonds will not be obligations of the City of Aliso Viejo but will be limited obligations of the District secured solely by the special taxes of the District and amounts held in certain funds and accounts established under the Fiscal Agent Agreement for the District.

The refinancing of the bonds is estimated to provide a net present value savings of over $1.65 million or 6.22% for the remaining term of the bond. It is estimated that the average homeowner will save approximately $727 annually in special taxes without extending the maturity date.

Background:

In 2006, after the receipt of a petition of the property owner, the City formed Community Facilities District No. 2005-1 (Glenwood at Aliso Viejo) (the “District”) pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 as amended to finance the acquisition of public improvements incident to the development of the Glenwood at Aliso 164

Page 2 of 3 ends

Viejo residential project. The District issued Bonds on December 7, 2007 , in the amount of $34,070,000 with the final maturity in 2038. All of the 459 residential units in the District have been built and sold.

In 2014, the bonds were refunded in the total principal amount of $32,270,000 with a true interest cost (TIC) of 4.50%. The current outstanding par amount of the 2014 bonds is $26,605,000. The final maturity date is September 1, 2038.

Discussion:

Due to favorable interest rates in the financial markets, the outstanding bonds of the District can now be refunded with the debt to be payable on the refunding bonds to be less than the debt service due on the outstanding bonds. The proposed refunding bonds will have the same final maturity in 2038 and are expected to have an initial principal amount of $23,810,000.

The coupons of the various maturities of the refunding bonds are estimated to be 5.00%.

The TIC is estimated to be 4.07%. The average annual savings on debt service payments until the bonds mature are projected at approximately $ 333,000. These savings are projected to total over $4.66 million over the remaining 15 years of the bonds. The savings will be applied towards reducing property owners’ special tax payments starting in FY 2024-25 and are estimated to save property owners an average of approximately $727 per year. Actual savings will depend on market con ditions at the time of sale of the Refunding Bonds, which is anticipated for November 2023.

The table below provides a summary of the estimated savings. 165

Page 3 of 3 ends

City Attorney:

All bond documents have been reviewed by bond counsel at Best, Best, and Krieger.

Attachments:

1. Resolution

2. Fiscal Agent Agreement

3. Preliminary Official Statement

4. Bond Purchase Agreement

5. Irrevocable Refunding Instructions

6. Presentation
166
60367.10008\41423774.5
1 Issuance Resolution
City of Aliso Viejo (CFD No. 2005-01)
2023 Special Tax Refunding Bonds
RESOLUTION NO. 2023-_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO

VIEJO, CALIFORNIA, AUTHORIZING THE ISSUANCE OF BONDS OF COMMUNITY FACILITIES DISTRICT NO. 2005-01 (GLENWOOD AT
ALISO VIEJO) OF THE CITY OF ALISO VIEJO DESIGNATED THE 2023

SPECIAL TAX REFUNDING BONDS IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $26,000,000, AND THE REFUNDING OF

PRIOR SPECIAL TAX BONDS OF SUCH DISTRICT, APPROVING THE

FORM OF A FISCAL AGENT AGREEMENT AND AUTHORIZING

NEGOTIATION OF TERMS OF THE SALE OF SAID BONDS,

APPROVING A PRELIMINARY OFFICIAL STATEMENT, AUTHORIZING

PREPARATION OF A FINAL OFFICIAL STATEMENT AND APPROVING

OTHER RELATED DOCUMENTS AND ACTIONS
WHEREAS, Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo (the “District”) was established on April 20, 2005 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the California Government Code) (the “Act”), by adoption by the City Council (the “City Council”) of the City of Aliso Viejo (the “City”) of Resolution No. 2005- 024; and
WHEREAS, on April 20, 2005, a special election was duly held at which more than two- thirds of the votes cast at said election were in favor of incurring bonded indebtedness, among other things; and
WHEREAS, on December 6, 2007, the District issued its “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2007 Special Tax Bonds” (the “2007 Bonds”), in the aggregate principal amount of $34,070,000, for the purpose of funding the provision of certain public facilities; and WHEREAS, on February 13, 2014, and pursuant to that certain Fiscal Agent Agreement, dated as of January 1, 2014 (the “Prior Fiscal Agent Agreement”), by and between the City, for and on behalf of the District, and The Bank of New York Mellon Trust Company, N.A. (the “Prior Fiscal Agent), the District issued its “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2014 Special Tax Refunding Bonds” (the “Prior Bonds”), in the aggregate principal amount of $32,270,000, for the purpose of refunding the outstanding 2007 Bonds; and
WHEREAS, as a result of a combination of favorable conditions in the municipal bond market and the level of development, diversity of ownership and increase in value of the properties within the District, the City Council has determined that it is necessary that bonds of the District to be designated “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2023 Special Tax Refunding Bonds” be issued in an aggregate principal amount not to exceed $26,000,000 (the “Bonds”) for 167
60367.10008\41423774.5
2 Issuance Resolution
City of Aliso Viejo (CFD No. 2005-01)
2023 Special Tax Refunding Bonds
the purpose of refunding the Prior Bonds in order to provide debt service savings and reduce the amount of the levy of the special taxes within the District; and WHEREAS, the Bonds shall be issued pursuant to the terms and provisions of the Act and the statement of goals and policies of the City Council regarding the establishment of community facilities districts, as amended to date (the “Goals and Policies”); and WHEREAS, payment of the principal of and interest on the Bonds will be secured by special taxes to be levied on parcels of taxable property in the District (the “Special Taxes”); and
WHEREAS, pursuant to Section 53345.8 of the California Government Code, the City Council, as the legislative body of the District, may sell bonds of the District only if it determines prior to the award of the sale of such bonds that the value of the real property that would be subject to the special tax to pay debt service on such bonds will be at least three (3) times the principal amount of such bonds to be sold and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District; and WHEREAS, Koppel & Gruber Public Finance, the special tax consultant to the City, has determined, based on a review of the Orange County Assessor’s Assessment Roll for fiscal year 2023-24, that the total assessed value of taxable property in the District is $488,007,311; and
WHEREAS, upon the issuance of the Bonds and the deposit of the appropriate portion of the proceeds of the sale of the Bonds in the Principal Account established under the Prior Fiscal Agent Agreement, the Prior Bonds will be redeemed and the property in the District will no longer be subject to the levy of special taxes to pay debt service on the Prior Bonds; and
WHEREAS, upon the issuance of the Bonds, there will be no other bonds outstanding, other than the Bonds, that are secured by a special tax or a special assessment levied on property within the District; and
WHEREAS, there has been presented to the City Council a form of Bond Purchase Agreement (the “Bond Purchase Agreement”) whereby Piper Sandler & Co., as underwriter (the “Underwriter”) will purchase the Bonds from the District; and WHEREAS, there has also been presented to the City Council a form of Fiscal Agent Agreement with respect to the Bonds (the “Fiscal Agent Agreement”) to be executed and delivered by the City, for and on behalf of the District, and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”), whereby the Fiscal Agent will authenticate and deliver the Bonds and perform certain other duties; and 168
60367.10008\41423774.5
3 Issuance Resolution
City of Aliso Viejo (CFD No. 2005-01)
2023 Special Tax Refunding Bonds
WHEREAS, there has also been presented to the City Council a form of Preliminary Official Statement relating to the Bonds (the “Preliminary Official Statement”); and WHEREAS, there has also been presented to the City Council a form of Continuing Disclosure Agreement to be executed and delivered by the City and Koppel & Gruber Public Finance, as Dissemination Agent (the “Continuing Disclosure Agreement”), for the benefit of the owners of the Bonds and in order to assist the Underwriter in complying with Rule 15c2-12(b)(5) of the Securities and Exchange Commission (the “Rule”); and WHEREAS, pursuant to Government Code Section 5852.1, the City Council has obtained from Fieldman, Rolapp & Associates, Inc., its Municipal Advisor (the “Municipal Advisor”), certain good faith estimates of (a) the true interest cost of the Bonds, (b) the finance charge of the Bonds, (c) the amount of proceeds received for the sale of the Bonds, less the finance charge and any reserves or capitalized interest paid or funded with the proceeds of the Bonds, and (d) the total payment amount calculated to the final maturity of the Bonds, and such estimates are disclosed and set forth in Exhibit A attached hereto; and
WHEREAS, the City Council has considered the forms of the Fiscal Agent Agreement, the Bond Purchase Agreement, the Preliminary Official Statement, and the Continuing Disclosure Agreement, and has determined that it is in the best interest of the owners of property in and the residents of the District that the City Council authorize the issuance and sale of the Bonds and the execution and delivery of said agreements and certificate, and approve and authorize the distribution of the Preliminary Official Statement, subject to the conditions hereinafter contained.

NOW, THEREFORE, the City Council of the City of Aliso Viejo, California, acting for and on behalf of the District and in its capacity as the legislative body of the District, hereby resolves as follows:

Section 1. Findings and Determinations. The City Council hereby finds and determines (a) that the preceding recitals are true and correct, (b) that, pursuant to Section 53360.4 of the Act, the sale of the Bonds by a negotiated sale, without advertising for bids, will result in a lower overall cost to the District, and (c) in accordance with Section 53345.8 of the Act, that if the Bonds are issued and sold in an aggregate principal amount that does not exceed $26,000,000, the value of the parcels of real property within the District that will be subject to the levy of the Special Taxes to pay the principal of and interest on the Bonds will be more than three (3) times the aggregate principal amount of the Bonds and any other bonds secured by a special tax or a special assessment levied on property within the District after giving effect to the redemption of the Prior Bonds.

In furtherance of the issuance of the Bonds, the City Council hereby makes the following further findings and determinations: (i) in accordance with Section 53363 of the Act, it is prudent in the management of the fiscal affairs of the City, the City Council and the District to issue the Bonds for the purpose, inter alia, of refunding the Prior Bonds on 169
60367.10008\41423774.5
4 Issuance Resolution
City of Aliso Viejo (CFD No. 2005-01)
2023 Special Tax Refunding Bonds
a current basis, (ii) in accordance with Section 53362.5 of the Act, the total interest cost to maturity on the Bonds being issued to refund the Prior Bonds plus the principal amount of the Bonds being issued to refund the Prior Bonds will not exceed the total interest cost to maturity on the Prior Bonds plus the principal amount of the Prior Bonds, (iii) the issuance of the Bonds is in compliance with the City’s Goals and Policies, and (iv) in satisfaction of the requirements contained in Section 53364.2 of the Act, the City Council hereby determines that any savings achieved through the issuance of the Bonds shall be used to reduce special taxes of the District.

For purposes of Section 53363.2 of the Act, the City Council hereby further finds and determines that (i) it is expected that the purchase of the Bonds will occur on or after December 5, 2023, (ii) that the date, denomination, maturity dates, places of payment and form of the Bonds shall be as set forth in the Fiscal Agent Agreement, as executed, (iii) that the Bonds will bear interest at the minimum rate of 0.10% per annum, with the actual rate or rates to be set forth in the Fiscal Agent Agreement as executed; (iv) the place of payment for the Prior Bonds shall be as set forth in the Prior Fiscal Agent Agreement; and (v) the designated costs of issuing the Bonds shall be as described in Section 53363.8(a), (b)(2), and (c) of the Act, and as otherwise described in the Fiscal Agent Agreement, in the Official Statement for the Bonds, and in the closing certificates for the Bonds, including Bond Counsel fees and expenses, Disclosure Counsel fees and expenses, Underwriter’s discount, rating agency fees, if any, printing costs for the Official Statement, premium for municipal bond insurance for the Bonds and a reserve fund surety for the Bonds, if any, Special Tax Consultant, Municipal Advisor, and initial Fiscal Agent fees, and costs of City staff incurred in connection with the sale and issuance of the Bonds.

Section 2. Authorization of the Issuance of the Bonds . The City Council authorizes the issuance and sale of the Bonds in an aggregate principal amount not to exceed $26,000,000, and the City Manager (the “City Manager”), the Director of Financial Services/City Treasurer (the “Director of Financial Services/City Treasurer”) and such other designee of the City Manager (each of the City Manager, the Director of Financial Services/City Treasurer and any such designee, an “Authorized Officer”) are authorized and directed to take all steps and actions and execute all documents which are necessary to accomplish the issuance, sale and delivery of the Bonds pursuant to the authorization given by and the conditions specified in this resolution. The Mayor and the City Clerk are authorized to execute the Bonds for and on behalf of the District by their manual or facsimile signatures. The Bonds shall be dated as of their date of delivery pursuant to the Bond Purchase Agreement. The last maturity date of the Bonds shall not be later than the last maturity date of any of the Prior Bonds.

Each Authorized Officer, acting on behalf of the City or the District, as applicable, is hereby authorized and directed to execute and deliver the final form of the various documents and instruments described in this Resolution, with such additions thereto or changes therein as such Authorized Officer may deem necessary and advisable; provided, however, that no additions or changes shall authorize an aggregate principal 170
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2023 Special Tax Refunding Bonds
amount of the Bonds in excess of the amount specified in the preceding paragraph. The approval of such additions or changes shall be conclusively evidenced by the execution and delivery of such documents or instruments by an Authorized Officer, following consultation with and review by Best Best & Krieger LLP, as Bond Counsel (“Bond Counsel”).

Section 3. Approval of Fiscal Agent Agreement . The Fiscal Agent Agreement which provides generally for (i) the authentication and delivery by the Fiscal Agent of the Bonds, (ii) the establishment and administration by the Fiscal Agent of certain funds and accounts for the benefit of the District and the owners of the Bonds, (iii) the payment by the Fiscal Agent of the principal of and interest on the Bonds from the Special Tax Revenues (as defined therein), and (iv) the performance of other duties by the Fiscal Agent, is approved in the form submitted to the City Council at the meeting at which this resolution is adopted.

Section 4. Appointment of Fiscal Agent. The Bank of New York Mellon Trust Company, N.A., is appointed as Fiscal Agent pursuant to the Fiscal Agent Agreement, to take any and all action provided therein to be taken by the Fiscal Agent.

Section 5. Approval of Preliminary Official Statement; Preparation of Final Official Statement. The Preliminary Official Statement is hereby approved, and each of the Authorized Officers is authorized to consent to and assist in the preparation of such modifications thereto as may be specified by Best Best & Krieger LLP, disclosure counsel to the City and District (“Disclosure Counsel”). Each of the Authorized Officers is authorized to determine, with the assistance of Disclosure Counsel, when the Preliminary Official Statement is to be deemed final within the meaning of the Rule and to deliver a certificate to that effect to the Underwriter. The Underwriter is authorized to distribute the Preliminary Official Statement as approved hereby, or as modified with the consent of one of the Authorized Officers, to prospective purchasers of the Bonds. The Authorized Officers are authorized to participate in the preparation of the Final Official Statement, based on the Preliminary Official Statement, and such modifications thereto as may be agreed to by Disclosure Counsel and the Underwriter. An Authorized Officer is authorized to sign the Final Official Statement on behalf of the City and the District.

Section 6. Issuance of Bonds. The City Council approves and authorizes the issuance and sale of the Bonds by negotiation with the Underwriter and the City pursuant to the Bond Purchase Agreement, by and between the City and the Underwriter, in the form presented to the City Council at the meeting at which this Resolution is adopted, together with any changes therein or additions thereto which are deemed advisable by an Authorized Officer, upon consultation with Bond Counsel. An Authorized Officer is authorized and directed to execute and deliver the final form of the Bond Purchase Agreement on behalf of the City and the District upon the submission of an offer by the Underwriter to purchase the Bonds, which offer is acceptable to an Authorized Officer and is consistent with the requirements of this Resolution; provided that the aggregate principal amount of the Bonds shall not exceed $26,000,000, the Underwriter’s discount 171
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6 Issuance Resolution
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2023 Special Tax Refunding Bonds
for the purchase of the Bonds shall not exceed 0.60% of the aggregate principal amount of the Bonds, and the last maturity date of the Bonds shall not be later than the last maturity date of the Prior Bonds. When an Authorized Officer has negotiated the Bond Purchase Agreement with the Underwriter within the parameters specified above and when the other terms and conditions are satisfactory to an Authorized Officer and Bond Counsel, an Authorized Officer is authorized to execute and deliver the Bond Purchase Agreement to the Underwriter on behalf of the City and the District.

No Authorized Officer shall execute and deliver the Bond Purchase Agreement, however, unless the total net interest cost to maturity of the Bonds plus the principal amount of the Bonds will be less than the total net interest cost to maturity with respect to the Prior Bonds, plus the principal amount of the Prior Bonds, and before executing and delivering the Bond Purchase Agreement, the Authorized Officer shall receive verbal verification from its Municipal Advisor that such total net interest cost and principal amount with respect to the Bonds will be achieved.

Section 7. Reserve Fund and Other Funds Related to the Prior Bonds.

Each Authorized Officer is authorized to direct the fiscal agent for the Prior Bonds, and said fiscal agent is authorized, to transfer the amount on deposit in the funds and accounts that are held by the fiscal agent pursuant to the Prior Fiscal Agent Agreement for the Prior Bonds, including the reserve fund for the Prior Bonds, to be used to redeem the Prior Bonds, or to transfer the amount of deposit in such reserve fund to the Reserve Fund for the Bonds, whichever an Authorized Officer determines, in consultation with Bond Counsel, is most appropriate.

Section 8. Notice of Redemption. Each Authorized Officer is authorized and directed to provide for the mailing, and the Prior Fiscal Agent, in its capacity as fiscal agent for the Prior Bonds is authorized to mail notice, of the redemption of Prior Bonds to the registered owners thereof as required by Section 53365 of the California Government Code and the Prior Fiscal Agent Agreement. Pursuant to said Section 53365, an Authorized Officer shall also provide for the mailing of, and the Prior Fiscal Agent shall mail, notice of the redemption of the Prior Bonds to the underwriter of the Prior Bonds.

Section 9. Approval of Continuing Disclosure Agreement. The Continuing Disclosure Agreement is approved in the form submitted to the City Council at the meeting at which this resolution is adopted, and an Authorized Officer is authorized to execute and deliver said agreement on behalf of the City and the District.

Section 10. Authorization to Apply for and Accept Municipal Bond Insurance and Reserve Fund Surety. An Authorized Officer, with the assistance of the Municipal Advisor and the Underwriter, is hereby authorized to apply for and, if deemed cost effective, accept any commitment (a) to provide municipal bond insurance for the Bonds and/or (b) to provide a reserve fund surety for the Bonds. An Authorized Officer is hereby authorized to execute any commitment letter and to do any and all other things and to deliver any and all documents necessary or advisable in order to obtain such rating 172
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and/or such municipal bond insurance and reserve fund surety, if any. An Authorized Officer, with the assistance of the Municipal Advisor and the Underwriter, are hereby further authorized to apply for a rating on the Bonds with any nationally recognized rating agency or agencies that the Authorized Officer deems advisable.

Section 11. Action. All actions heretofore taken by an Authorized Officer and the other officers and agents of the City, acting for and on behalf of the City or the District, with respect to the sale and issuance of the Bonds are hereby approved, confirmed, and ratified, and the proper officers of the City, acting for and on behalf of the City or the District, as applicable, are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements, contracts, and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with the Act, this Resolution, the Fiscal Agent Agreement, the Bond Purchase Agreement, the Continuing Disclosure Agreement and any certificate, agreement, contract, and other document described in the documents herein approved.

Section 12. Appointment of Professionals. The City Council hereby appoints Best Best & Krieger LLP as Bond Counsel and Disclosure Counsel to the City and the District, Fieldman, Rolapp & Associates, Inc. as Municipal Advisor to the City and the District, and Piper Sandler & Co. as Underwriter with respect to the Bonds.

Section 13. Conditions of Approval. The approvals, authorization and direction given by this resolution are conditioned upon the satisfaction of the requirements of Section 6 hereof with respect to the issuance and sale of the Bonds. The officers of the City designated above shall not take any action with respect to the execution and delivery of the Fiscal Agent Agreement, the Continuing Disclosure Agreement, and the Bond Purchase Agreement or the issuance, sale and delivery of the Bonds unless and until such conditions are satisfied; provided, however, that upon satisfaction of such conditions, this resolution shall be fully effective and shall be carried out by such officers without further approval or action of the City Council. The Bonds may be sold, and the Bonds, the Fiscal Agent Agreement, the Continuing Disclosure Agreement, the Bond Purchase Agreement, the Preliminary Official Statement, and the Final Official Statement may be dated, entered into, executed and delivered or distributed, as appropriate, on any date selected by the City Manager or the Director of Financial Services/City Treasurer and the Underwriter prior to said date.

Section 14. Effective Date. This resolution shall take effect upon its adoption.

PASSED, APPROVED AND ADOPTED this 4th day of October, 2023.

Richard Hurt
Mayor
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2023 Special Tax Refunding Bonds
ATTEST:

Mitzi Ortiz. MMC
City Clerk
APPROVED AS TO FORM:

Scott C. Smith
City Attorney
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2023 Special Tax Refunding Bonds

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ALISO VIEJO )
I, MITZI ORTIZ, City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that the foregoing is the original of Resolution No. 2023-__ duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the 4th day of October, 2023, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
___________________________

MITZI ORTIZ, MMC

CITY CLERK
(SEAL)
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A-1
Issuance Resolution
City of Aliso Viejo (CFD No. 2005-01)
2023 Special Tax Refunding Bonds

EXHIBIT A

GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Bonds authorized by this Resolution. Such good faith estimates have been provided to the City by Fieldman, Rolapp & Associates, Inc. (the “Municipal Advisor”), based on the financing plan, and projected market conditions and preliminary sizing prepared by Piper Sandler & Co. as underwriter for the Bonds.

Estimated Principal Amount. The Municipal Advisor has informed the City that, based on the financing plan and projected market conditions, the good faith estimate of the aggregate principal amount of the Bonds is $23,810,000 (the “Estimated Principal Amount”).

True Interest Cost . The Municipal Advisor has informed the City that the good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Bonds, is 4.07%
Finance Charge. The Municipal Advisor has informed the City that the good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties for costs in connection with the issuance and sale of the Bonds (the “Finance Charge”), is $401,223.

Amount of Proceeds to be Received . The Municipal Advisor has informed the City that the good faith estimate of the amount of proceeds of the Bonds expected to be received by the District, less the Finance Charge, and any reserves or capitalized interest paid or funded with the proceeds of the Bonds, is $23,865,942.

Total Payment Amount . The Municipal Advisor has informed the City that the good faith estimate of the total payment amount, which means the sum total of all principal and interest payments made for the Bonds, plus the Finance Charge, not paid with the proceeds of the financing, calculated to the final maturity of the Bonds, is $35,210,592.

The estimates above may differ from the actual amounts due to (a) the actual dated date of the Bonds being different from the date assumed for purposes of such estimates, (b) the actual aggregate principal amount of the Bonds being different from the Estimated Principal Amount, (c) the actual interest rates on the Bonds being different from the estimated interest rates at the time of preparation of these good faith estimates, (d) the actual amortization of the debt service on the Bonds being different from the amortization assumed for purposes of such estimates, (e) other market conditions, or (f) alterations in the City’s financing plan, or a combination of such factors. The actual dated date of the Bonds and the actual aggregate principal amount of the Bonds will be determined by the City based on market conditions and other factors.
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FISCAL AGENT AGREEMENT
by and between

CITY OF ALISO VIEJO
for and on behalf of its
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO)
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
as Fiscal Agent
Dated as of December 1, 2023
Relating to
$[__________]
Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo
2023 Special Tax Refunding Bonds
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TABLE OF CONTENTS
-i-

ARTICLE I

AUTHORITY AND DEFINITIONS
Section 1.01. Authority for this Agreement........................................................................... 1 Section 1.02. Agreement for Benefit of Bondowners............................................................ 2 Section 1.03. Definitions........................................................................................................ 2

ARTICLE II

THE BONDS
Section 2.01. Principal Amount; Designation...................................................................... 14 Section 2.02. Terms of Bonds.............................................................................................. 14 Section 2.03. Redemption.................................................................................................... 16 Section 2.04. Form of Bonds ............................................................................................... 18 Section 2.05. Execution of Bonds........................................................................................ 19 Section 2.06. Transfer of Bonds .......................................................................................... 19 Section 2.07. Exchange of Bonds ........................................................................................ 19 Section 2.08. Bond Register................................................................................................. 20 Section 2.09. Temporary Bonds........................................................................................... 20 Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen.................................................. 20 Section 2.11. Special Obligation.......................................................................................... 21 Section 2.12. Parity Bonds and Subordinate Bonds ............................................................ 21

ARTICLE III
ISSUANCE OF BONDS; APPLICATION OF PROCEEDS; SPECIAL TAX FUND; ADMINISTRATIVE EXPENSE FUND; COSTS OF ISSUANCE FUND
Section 3.01. Issuance and Delivery of Bonds .................................................................... 22 Section 3.02. Application of Proceeds of Sale of Bonds. .................................................... 23 Section 3.03. Special Tax Fund. .......................................................................................... 23 Section 3.04. Administrative Expense Fund........................................................................ 25 Section 3.05. Costs of Issuance Fund. ................................................................................. 25 178
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(continued)
-ii-

ARTICLE IV
SPECIAL TAX REVENUES; BOND FUND; RESERVE FUND
Section 4.01. Pledge of Special Tax Revenues.................................................................... 26 Section 4.02. Bond Fund...................................................................................................... 26 Section 4.03. Reserve Fund. ................................................................................................ 29

ARTICLE V

OTHER COVENANTS OF THE CITY
Section 5.01. Punctual Payment........................................................................................... 31 Section 5.02. Special Obligation.......................................................................................... 31 Section 5.03. Extension of Time for Payment ..................................................................... 31 Section 5.04. Against Encumbrances................................................................................... 32 Section 5.05. Books and Accounts ...................................................................................... 32 Section 5.06. Protection of Security and Rights of Owners ................................................ 32 Section 5.07. Collection of Special Tax Revenues.............................................................. 32 Section 5.08. Reduction of Maximum Special Tax Rates ................................................... 33 Section 5.09. Further Assurances......................................................................................... 33 Section 5.10. Tax Covenants ............................................................................................... 33 Section 5.11. Covenant to Foreclose.................................................................................... 34 Section 5.12. Prepayment of Special Taxes......................................................................... 34 Section 5.13. Calculation of Prepayments ........................................................................... 35 Section 5.14. Continuing Disclosure ................................................................................... 35 Section 5.15. Accountability Measures ............................................................................... 35

ARTICLE VI
INVESTMENTS; DISPOSITION OF INVESTMENT PROCEEDS; LIABILITY OF THE

SERVICES DISTRICT
Section 6.01. Deposit and Investment of Moneys in Funds ................................................ 36 Section 6.02. Rebate Fund; Rebate to the United States...................................................... 37 Section 6.03. Liability of the City........................................................................................ 38 Section 6.04. Employment of Agents by City ..................................................................... 39 179
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(continued)
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ARTICLE VII

THE FISCAL AGENT
Section 7.01. Appointment of Fiscal Agent......................................................................... 39 Section 7.02. Liability of Fiscal Agent ................................................................................ 40 Section 7.03. Information .................................................................................................... 42 Section 7.04. Notice to Fiscal Agent ................................................................................... 42 Section 7.05. Compensation, Indemnification..................................................................... 43 Section 7.06. Books and Accounts ...................................................................................... 43

ARTICLE VIII

MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Section 8.01. Amendments Permitted.................................................................................. 43 Section 8.02. Owners’ Meetings.......................................................................................... 44 Section 8.03. Procedure for Amendment with Written Consent of Owners........................ 45 Section 8.04. Disqualified Bonds......................................................................................... 45 Section 8.05. Effect of Supplemental Agreement................................................................ 46 Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments.............. 46 Section 8.07. Amendatory Endorsement of Bonds.............................................................. 46 Section 8.08. Execution of Supplemental Agreements........................................................ 46

ARTICLE IX

MISCELLANEOUS
Section 9.01. Benefits of Agreement Limited to Parties ..................................................... 46 Section 9.02. Successor is Deemed Included in All References to Predecessor ................. 47 Section 9.03. Discharge of Agreement. ............................................................................... 47 Section 9.04. Execution of Documents and Proof of Ownership by Owners...................... 48 Section 9.05. Waiver of Personal Liability.......................................................................... 48 Section 9.06. Notices to and Demands on City and Fiscal Agent ....................................... 48 Section 9.07. Partial Invalidity............................................................................................. 49 Section 9.08. Unclaimed Moneys ........................................................................................ 49 Section 9.09. Applicable Law.............................................................................................. 49 180
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(continued)
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Section 9.10. Conflict with Act............................................................................................ 49 Section 9.11. Conclusive Evidence of Regularity ............................................................... 49 Section 9.12. Payment on Business Day.............................................................................. 49 Section 9.13. Counterparts................................................................................................... 50 EXHIBIT A – FORM OF BOND..............................................................................................A-1 181
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1 FISCAL AGENT AGREEMENT
THIS FISCAL AGENT AGREEMENT (the “Agreement”) is entered into and dated as of December 1, 2023, by and between the City of Aliso Viejo, a municipal corporation (the “City”), for and on behalf of Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo, County of Orange, State of California (the “District”), and The Bank of New York Mellon Trust Company, N.A., a national banking association, duly organized and existing under the laws of the United States of America, as fiscal agent (the “Fiscal Agent”).

W I T N E S S E T H:

WHEREAS, the City Council of the City (the “City Council”) has previously established the District pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”); and
WHEREAS, on February 13, 2014, bonds of the District designated “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2014 Special Tax Refunding Bonds” (the “Prior Bonds”) were issued in the aggregate principal amount of $32,270,000 and are currently outstanding in the aggregate principal amount of $26,605,000; and WHEREAS, the City Council has determined that it is in the best interest of the owners of property in the District that bonds of the District designated as “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2023 Special Tax Refunding Bonds” (the “Bonds”) be issued to defease and refund the Prior Bonds of the District; and WHEREAS, the City Council has determined that the Bonds shall be issued in the aggregate principal amount of $[__________]; and
WHEREAS, all things necessary to cause the Bonds, when executed by the City and authenticated by the Fiscal Agent for the District and issued pursuant to the Act, the Resolution (as hereinafter defined) and this Agreement provided, to be legal, valid and binding special obligations of the District in accordance with their terms, and all things necessary to cause the authorization, execution and delivery of this Agreement and the authorization, execution, authentication and delivery of the Bonds, subject to the terms hereof, have in all respects been duly authorized.

NOW, THEREFORE, in consideration of the covenants and provisions herein set forth and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I

AUTHORITY AND DEFINITIONS
Section 1.01. Authority for this Agreement. This Agreement is entered into pursuant to the provisions of the Act and the Resolution.
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2 Section 1.02. Agreement for Benefit of Bondowners. The provisions, covenants and agreements herein set forth to be performed by or on behalf of the City and/or the District shall be for the equal benefit, protection and security of the Owners. All of the Bonds, without regard to the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided in or permitted by this Agreement. The Fiscal Agent may become the owner of any of the Bonds with the same rights it would have if it were not Fiscal Agent. If Parity Bonds are issued for the purpose of discharging the indebtedness of a portion of the Outstanding Bonds, as provided in Section 9.03 hereof, the provisions of this Section 1.02 shall apply to such Parity Bonds to the same extent and with the same effect as they apply to the Bonds.

Section 1.03. Definitions. Unless the context otherwise requires, the terms defined in this Section 1.03 shall, for all purposes of this Agreement, of any Supplemental Agreement, and of any certificate, opinion, or other document herein mentioned, have the meanings herein specified. All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code.
“Administrative Expenses” means any or all of the following: the fees and expenses of the Fiscal Agent (including any fees or expenses of its counsel), the expenses of the City or its designee in carrying out its duties hereunder (including, but not limited to, the levying and collection of the Special Taxes, complying with the disclosure provisions of the Act, the Continuing Disclosure Agreement relating to the Bonds, and this Agreement, including those related to public inquiries regarding the Special Tax and disclosures to Bondowners and the Original Purchaser; the costs of the City or any designee of the City related to an appeal of the Special Tax) including the fees and expenses of its counsel, an allocable share of the salaries of City staff directly related thereto and a proportionate amount of City general administrative overhead related thereto, any amounts paid by the City from its general funds pursuant to Section 6.02 hereof, the fees and expenses of the Municipal Advisor, the fees and expenses of the Independent Financial Consultant, and all other costs and expenses of the City or the Fiscal Agent incurred in connection with the discharge of their respective duties hereunder and, in the case of the City, in any way related to the administration of the District.
“Administrative Expense Fund” means the fund by that name established by Section

3.04(A) hereof.
“Agreement” means this Fiscal Agent Agreement, as it may be amended or supplemented from time to time by any Supplemental Agreement adopted pursuant to the provisions hereof. “Annual Debt Service” means, for each Bond Year, the sum of (i) the interest due on the Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as scheduled, and (ii) the principal amount of the Outstanding Bonds scheduled to be paid. 183
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3 “Auditor” means the Auditor-Controller of the County of Orange. “Authorized Officer” means the City Manager, the Director of Financial Services/City Treasurer, and any other officer or employee of the City authorized by the City Council or by an Authorized Officer to undertake the action referenced in this Agreement as required to be undertaken by an Authorized Officer.
“Bond Counsel” means any attorney or firm of attorneys acceptable to the City and nationally recognized for expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities.
“Bond Fund” means the fund by that name established by Section 4.02(A) hereof. “Bond Insurer” means [TO COME], as issuer of the Debt Service Reserve Insurance Policy.
“Bond Year” means the period beginning on the Closing Date and ending on September 1, 2024 and thereafter the period beginning on each September 2 and ending on the following September 1.
“Bonds” means, unless otherwise expressly provided, the Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2023 Special Tax Refunding Bonds, authorized by and at any time Outstanding pursuant to the Act and this Agreement. “Business Day” means any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in the State of California or in any state in which the Fiscal Agent has its Principal Office are authorized or obligated by law or executive order to be closed. “City” means the City of Aliso Viejo, California.
“City Council” means the City Council of the City.
“City Manager” means the City Manager of the City.
“Closing Date” means the date upon which there is an exchange of the Bonds for the Proceeds representing payment of the purchase price of the Bonds by the Original Purchaser. “Code” means the Internal Revenue Code of 1986, as amended. “Continuing Disclosure Agreement” means that certain Continuing Disclosure Agreement, executed by the City on behalf of the District and Koppel & Gruber Public Finance, as dissemination agent, and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. “Costs of Issuance” means items of expense payable or reimbursable directly or indirectly by the City and related to the authorization, sale and issuance of the Bonds, which items of expense shall include, but not be limited to, printing costs, costs of reproducing and binding documents, including but not limited to the preliminary official statement and official statement regarding the 184
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4 Bonds, closing costs, filing and recording fees, initial fees, expenses, and charges of the Fiscal Agent including its first annual administration fee and the fees and expenses of its counsel, expenses incurred by the City in connection with the issuance of the Bonds, underwriter’s discount relating to the Bonds, including the fees of Bond Counsel and Disclosure Counsel, Municipal Advisor’s fees, charges for authentication, transportation and safekeeping of the Bonds, rating agency fees, premium for a bond insurance policy, if any, securing payment of the Bonds, premium for a reserve surety, if any, for the Bonds and other costs, charges and fees in connection with the foregoing.
“Costs of Issuance Fund” means the fund by that name established by Section 3.05(A) hereof.
“Debt Service” means the amount of interest and principal payable on the Bonds scheduled to be paid during the period of computation, excluding amounts payable during such period which relate to principal of the Bonds which are scheduled to be retired and paid before the beginning of such period.
“Debt Service Reserve Insurance Policy” means the municipal bond debt service reserve insurance policy issued by the Bond Insurer as Policy Number [TO COME] in the stated amount of $[AMOUNT], deposited into the Reserve Fund relating to the Bonds. “Defeasance Securities” means, for purposes of Section 9.03(C) hereof, the following:
(i) Cash;
(ii) United States Treasury Certificates, Notes and Bonds (including State and Local Government Series - “SLGs”);
(iii) Direct obligations of the United States Treasury which have been stripped by the Treasury itself, CATS, and similar securities;
(iv) Resolution Funding Corporation (REFCORP) obligations; provided that only the interest component of REFCORP strips which have been stripped by request of the Federal Reserve Bank of New York in book-entry form are acceptable; (v) Pre-refunded municipal bonds rated “Aaa” by Moody’s and “AAA” by Standard & Poor’s; provided, however, that if the issue is only rated by Standard & Poor’s (i.e., there is no Moody’s rating), then the pre-refunded bonds must have been pre-refunded with cash, direct United States or United States guaranteed obligations, or “AAA” rated pre-refunded municipal bonds; and
(vi) Obligations issued by the following agencies which are backed by the full faith and credit of the United States of America:
(a) U.S. Export-Import Bank
Direct obligations or fully guaranteed certificates of beneficial ownership
185
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5 (b) Federal Financing Bank
(c) General Services Administration
Participation certificates
(d) United States Maritime Administration
Guaranteed Title XI financing
(e) United States Department of Housing and Urban Development Project notes
Local Authority Bonds
New Communities Debentures - United States government
guaranteed debentures
United States Public Housing Notes and Bonds - United States government guaranteed public housing notes and bonds.
“Director of Financial Services/City Treasurer” means the Director of Financial Services/City Treasurer of the City.
“District” means Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo, County of Orange, State of California. “Federal Securities” means any of the following which at the time of investment are legal investments under the laws of the State of California for the moneys proposed to be invested therein (as to which the Fiscal Agent is entitled to rely upon investment direction from the City as a deemed certification that such investment constitutes a legal investment):
(i) Cash; and
(ii) Direct general obligations of (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States of America and CATS), or obligations, the timely payment of principal of and interest on which is fully and unconditionally guaranteed by, the United States of America. “Fiscal Agent” means The Bank of New York Mellon Trust Company, N.A., the Fiscal Agent appointed by the City, acting as an independent fiscal agent with the duties and powers herein provided, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section 7.01 hereof. “Fiscal Year” means the twelve-month period extending from July 1 in a calendar year to June 30 of the succeeding year, both dates inclusive.
“Independent Financial Consultant” means a firm of certified public accountants, a financial consulting firm, a consulting engineering firm or engineer which is not an employee of, or otherwise controlled by, the City or the Special Tax Consultant. “Information Services” means the Electronic Municipal Market Access System of the Municipal Securities Rulemaking Board; and, in accordance with then current guidelines of the 186
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6 Securities and Exchange Commission, such other addresses and/or such other services providing information with respect to called bonds as may be designated in a Certificate of the City delivered to the Fiscal Agent.
“Interest Account” means the account by that name established by the Fiscal Agent in the Bond Fund pursuant to Section 4.02(A) hereof.
“Interest Payment Dates” means March 1 and September 1 of each year, commencing March 1, 2024.
“Investment Earnings” means all interest earned and any gains and losses on the investment of moneys in any fund or account created by this Agreement excluding interest earned and gains and losses on the investment of moneys in the Rebate Fund. “Maximum Annual Debt Service” means the largest Annual Debt Service for any Bond Year after the calculation is made through the final maturity date of any Outstanding Bonds. “Moody’s” shall mean Moody’s Investors Service, Inc., a national rating service with offices in New York, New York.
“Municipal Advisor” means an independent financial consulting firm appointed by the City to advise the City as to financial matters relating to the Bonds. “Officer’s Certificate” means a written certificate of the City signed by an Authorized Officer of the City.
“Ordinance” means any ordinance of the City or resolution of the City Council levying the Special Taxes.
“Original Purchaser” means the first purchaser of the Bonds from the City. “Outstanding,” when used as of any particular time with reference to the Bonds, means (subject to the provisions of Section 8.04 hereof) all Bonds except:
(i) Bonds theretofore canceled by the Fiscal Agent or surrendered to the Fiscal Agent for cancellation;
(ii) Bonds called for redemption which, for the reasons specified in Section

2.03(G) hereof, are no longer entitled to any benefit under this Agreement other than the right to receive payment of the redemption price therefor; (iii) Bonds paid or deemed to have been paid within the meaning of Section 9.03 hereof; and
(iv) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the City and authenticated by the Fiscal Agent pursuant to this Agreement or any Supplemental Agreement. 187
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7 “Owner” means any person who shall be the registered owner of any Outstanding Bond. “Parity Bonds” means bonds issued by the District pursuant to Section 2.12 hereof, for the purpose of accomplishing the defeasance and refunding of a portion of the Outstanding Bonds pursuant to Section 9.03 hereof, and that are secured by a pledge of and lien upon the Special Tax Revenues and funds pledged herein for the payment of the Bonds hereunder on a parity with the Outstanding Bonds.
“Permitted Investments” means:
(i) Federal Securities; and
(ii) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities are only permitted if they have been stripped by the agency itself):
(a) U.S. Export-Import Bank
Direct obligations or fully guaranteed certificates of beneficial ownership
(b) Federal Financing Bank
(c) Federal Housing Administration Debentures
(d) General Services Administration
Participation certificates
(e) Government National Mortgage Association (GNMA)
GNMA - guaranteed mortgage-backed bonds
GNMA - guaranteed pass-through obligations
(f) U.S. Maritime Administration
Guaranteed Title XI financing
(g) U.S. Department of Housing and Urban Development
Project Notes
Local Authority Bonds
New Communities Debentures - United States government
guaranteed debentures
U.S. Public Housing Notes and Bonds - United States government guaranteed public housing notes and bonds;
(iii) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non-full faith and credit United States government agencies (stripped securities are only permitted if they have been stripped by the agency itself):
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8 (a) Federal Home Loan Bank System
Senior debt obligations
(b) Federal Home Loan Mortgage Corporation
Participation Certificates
Senior debt obligations
(c) Federal National Mortgage Association
Mortgage-backed securities and senior debt obligations
(d) Student Loan Marketing Association
Senior debt obligations
(e) Resolution Funding Corporation (REFCORP) obligations (f) Farm Credit System
Consolidated systemwide bonds and notes;
(iv) Money market mutual funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by Standard & Poor’s of “AAAm-G,” “AAA-m” or “AA-m” and, if rated by Moody’s, rated “Aaa,” “Aa1” or “Aa2” by Moody’s, including funds for which the Fiscal Agent or any of its affiliates provides investment management services or any mutual fund for which the Fiscal Agent or an affiliate of the Fiscal Agent serves as administrator, shareholder servicing agent, and/or custodian or subcustodian, notwithstanding that (i) the Fiscal Agent or an affiliate of the Fiscal Agent receives fees from funds for services rendered, (ii) the Fiscal Agent collects fees for services rendered pursuant to this Agreement, which fees are separate from the fees received from such funds, and (iii) services performed for such funds and pursuant to this Agreement may at times duplicate those provided to such funds by the Fiscal Agent or an affiliate of the Fiscal Agent;
(v) Unsecured certificates of deposit and time deposits (having maturities of not more than 365 days) of any bank whose short-term obligations are rated on the date of purchase “A-1+” or better by Standard & Poor’s and “P-1” by Moody’s, and certificates of deposit (including those of the Fiscal Agent, its parent and its affiliates) secured at all times by collateral of the type that may be used by a national bank for purposes of satisfying its obligations to collateralize pursuant to federal law and which are issued by commercial banks, savings and loan associations or mutual savings banks whose short-term obligations are rated on the date of purchase “A-1” or better by Standard & Poor’s and Moody’s; (vi) Certificates of deposit (including those placed by a third party pursuant to agreement between the City and the Fiscal Agent), demand deposits, other deposit products, or bankers acceptances of depository institutions, including the Fiscal Agent or any of its affiliates, trust accounts, trust funds, overnight bank deposits, time deposits, interest bearing accounts, money-market accounts, savings accounts, deposit accounts or money market deposits which are fully insured by FDIC, including the Deposit Insurance 189
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9 Fund, or are rated in the “A” long term rating category or higher by Moody’s or Standard & Poor’s;
(vii) Investment agreements with domestic or foreign banks or corporations the long-term debt or claims paying ability of which or, in the case of a guaranteed corporation, the long-term debt, or, in the case of a monoline financial guaranty insurance company, the claims paying ability or financial strength, of the guarantor is rated in at least the double A category by Standard & Poor’s and Moody’s; provided that, by the terms of the investment agreement:
(a) interest payments are to be made to the Fiscal Agent at times and in amounts as necessary to pay debt service on the Bonds;
(b) the invested funds are available for withdrawal without penalty or premium, at any time upon not more than seven (7) days’ prior notice; (c) the investment agreement shall provide that it is the unconditional and general obligation of, and is not subordinated to any other obligation of, the provider thereof;
(d) the City and the Fiscal Agent receive the opinion of domestic counsel (which opinion shall be addressed to the City and the Fiscal Agent) that such investment agreement is legal, valid, binding upon and enforceable against the provider in accordance with its terms and of foreign counsel (if applicable) in form and substance acceptable to, and addressed to, the City and the Fiscal Agent; (e) the investment agreement shall provide that if, during its term, (1) the provider’s rating by either Standard & Poor’s or Moody’s falls below “AA-” or “Aa3,” respectively, the provider shall, at its option, within ten (10) days of receipt of publication of such downgrade, either (i) collateralize the investment agreement by delivering or transferring in accordance with the applicable state and federal laws (other than by means of entries on the provider’s books) to the City, the Fiscal Agent or a third party acting solely as agent therefor (the “Holder of the Collateral”) collateral free and clear of any third-party liens or claims, the market value of which collateral is maintained at levels and upon such conditions as would be acceptable to Standard & Poor’s and Moody’s to maintain an “A” rating in an “A” rated structured financing (with a market value approach); or (ii) assign the investment agreement and all of its obligations thereunder to a financial institution mutually acceptable to the provider and the City which is rated either in the first or second highest category by Standard & Poor’s and Moody’s; and
(2) the provider’s rating by either Standard & Poor’s or Moody’s is withdrawn or suspended or falls below “A-” or “A3,” respectively, the provider must, at the direction of the City or the Fiscal Agent, within ten (10) days of receipt of such direction, repay the principal 190
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10 of and accrued but unpaid interest on the invested funds, in either case with no penalty or premium to the City or the Fiscal Agent, as appropriate; and (f) the investment agreement shall provide and an opinion of counsel shall be rendered, in the event collateral is required to be pledged by the provider under the terms of the investment agreement at the time such collateral is delivered, that the Holder of the Collateral has a perfected first priority security interest in the collateral, any substituted collateral and all proceeds thereof (in the case of bearer securities, this shall mean the Holder of the Collateral is in possession of such collateral); and
(g) the investment agreement shall provide that if, during its term, (1) the provider shall default in its payment obligations, the provider’s obligations under the investment agreement shall, at the direction of the City or the Fiscal Agent, be accelerated and amounts invested and accrued but unpaid interest thereon shall be paid to the City or the Fiscal Agent, as appropriate; and
(2) the provider shall become insolvent, not pay its debts as they become due, be declared or petition to be declared bankrupt, etc., the provider’s obligations shall automatically be accelerated and amounts invested and accrued but unpaid interest thereon shall be paid to the City or the Fiscal Agent, as appropriate;
(viii) Commercial paper rated, at the time of purchase, “Prime - 1” by Moody’s and “A-1” or better by Standard & Poor’s;
(ix) Bonds or notes issued by any state or municipality which are rated by Moody’s or Standard & Poor’s in one of the two highest rating categories assigned by them;
(x) Federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured and unguaranteed obligation rating of “Prime - 1” or “A3” or better by Moody’s and “A-1” or better by Standard & Poor’s; (xi) Repurchase or reverse repurchase agreements which satisfy the following criteria:
(a) Repurchase or reverse repurchase agreements must be between the City or the Fiscal Agent and a dealer bank or securities firm which is:
(1) A primary dealer on the Federal Reserve reporting dealer list which is rated “A” or better by Standard & Poor’s and Moody’s, or (2) A bank rated “A” or above by Standard & Poor’s and
Moody’s;
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11 (b) The written agreement must include the following:
(1) Securities which are acceptable for transfer are:
(A) direct obligations of the United States government, or
(B) obligations of federal agencies backed by the full
faith and credit of the United States of America (or the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC)),
(2) The collateral must be delivered to the City or the Fiscal Agent (if the Fiscal Agent is not supplying the collateral) or a third party acting as agent for the Fiscal Agent (if the Fiscal Agent is supplying the collateral) before or simultaneous with payment (perfection by possession of certificated securities),
(3) (A) The securities must be valued weekly, marked-to- market at current market price plus accrued interest, and (B) The value of the collateral must be at least equal to one hundred four percent (104%) of the amount of money
transferred by the Fiscal Agent to the dealer, bank or security firm under the agreement plus accrued interest. If the value of the securities held as collateral is reduced below one hundred four percent (104%) of the value of the amount of money transferred by the Fiscal Agent, then additional acceptable securities and/or cash must be provided as collateral to bring the value of the collateral to one hundred four percent (104%); provided, however, that if the securities used as collateral are those of FNMA or FHLMC, then the value of the collateral must be equal to one hundred five percent (105%) of the amount of money transferred by the Fiscal Agent; and (c) A legal opinion must be delivered to the City and the Fiscal Agent that the repurchase or reverse repurchase agreement meets the requirements of California law with respect to the investment of public funds; and (xii) the Local Agency Investment Fund in the State Treasury of the State of California as permitted by the State Treasurer pursuant to Section 16429.1 of the California Government Code.

Ratings of Permitted Investments referred to herein shall be determined at the time of purchase of such Permitted Investments and without regard to rating subcategories. The Fiscal Agent shall have no responsibility to monitor the ratings of Permitted Investments after the initial purchase of such Permitted Investments or the responsibility to validate the ratings of Permitted Investments prior to the initial purchase.
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12 “Principal Account” means the account by that name established by the Fiscal Agent pursuant to Section 4.02(A) hereof.
“Principal Office” means the corporate trust office of the Fiscal Agent in Los Angeles, California or such other addresses as may be specified in writing by the Fiscal Agent; provided, however, that for purposes of the transfer, registration, exchange, payment and surrender of Bonds, “Principal Office” means the office or agency of the Fiscal Agent at which, at any time, its corporate trust agency business shall be conducted or such other office or address as may be specified in writing by the Fiscal Agent.
“Prior Administrative Expense Fund” means the Administrative Expense Fund established pursuant to the Prior Fiscal Agent Agreement.
“Prior Bonds” means the Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2014 Special Tax Refunding Bonds. “Prior Fiscal Agent” means The Bank of New York Mellon Trust Company, N.A., acting in its capacity as the fiscal agent pursuant to the Prior Fiscal Agent Agreement. “Prior Fiscal Agent Agreement” means that certain Fiscal Agent Agreement, dated as of January 1, 2014, by and between the City, for and on behalf of the District, and the Prior Fiscal Agent pertaining to the Prior Bonds.
“Priority Administrative Expense Amount” means the amount of $42,007 for Fiscal Year 2023-2024 escalating by 2% each Fiscal Year thereafter during the term of the Bonds and any Parity Bonds.
“Proceeds,” when used with reference to the Bonds, means the aggregate principal amount of the Bonds, plus accrued interest and original issue premium, if any, less original issue discount, if any.
“Project” shall have the meaning given such term in the Prior Fiscal Agent Agreement. “Qualified Debt Service Reserve Instrument” means (i) the Debt Serve Reserve Insurance Policy and (ii) an irrevocable standby or direct-pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Fiscal Agent pursuant to Section

4.03, provided that all of the following requirements are met at the time of delivery thereof to the Fiscal Agent: (a) S&P or Moody’s have assigned a long-term credit rating to such bank or insurance company of at least “A” or “A2,” respectively; (b) such letter of credit or surety bond has a term of at least twelve (12) months.
“Rate and Method of Apportionment of Special Tax” means the Modified Rate and Method of Special Tax for the District approved by the qualified electors of the District at a special election held on November 1, 2006.
“Rebate Certificate” means the certificate delivered by the City upon the delivery of the Bonds relating to Section 148 of the Code, or any functionally similar replacement certificate. 193
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13 “Rebate Fund” means the fund by that name established by Section 6.02 hereof. “Record Date” means the fifteenth (15th) day of the month next preceding the applicable Interest Payment Date whether or not such day is a Business Day. “Registration Books” means the registration books maintained by the Fiscal Agent pursuant to Section 2.08 hereof.
“Regulations” means the temporary and permanent regulations of the United States Department of the Treasury promulgated under the Code.
“Reserve Fund” means the fund by that name established by Section 4.03(A) hereof. “Reserve Requirement” means, on any date in any Bond Year, the least of (i) ten percent (10%) of the Proceeds of the sale of the Bonds, (ii) Maximum Annual Debt Service on the Bonds, or (iii) one hundred twenty-five percent (125%) of average Annual Debt Service on the Bonds, as determined by the City. The Reserve Requirement equals $[____] as of the Closing Date. In no event shall the Reserve Requirement exceed the initial deposit amount into the Reserve Fund. “Resolution” means Resolution No. [__] adopted by the City Council on, October 4, 2023. “Responsible Officer” means, when used with respect to the Fiscal Agent, any managing director, president, vice president, senior associate, associate or other officer of the Fiscal Agent within the Principal Office (or any successor corporate trust office) customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred at the Principal Office because of such person's knowledge of and familiarity with the particular subject and having direct responsibility for the administration of this Agreement. “Securities Depositories” means The Depository Trust Company, 55 Water Street, 50th Floor, New York, New York, 10041-0099, Call Notification Department, Fax (212) 855-7232; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other securities depositories as the City may designate in an Officer’s Certificate delivered to the Fiscal Agent.
“Special Taxes” or “Special Tax” means the special taxes levied by the City Council on parcels of taxable property within the District pursuant to the Act, the Rate and Method of Apportionment of Special Tax, and this Agreement.
“Special Tax Consultant” means an engineer or financial consultant or other such person or firm with expertise in the apportionment and levy of special taxes in community facilities districts which is employed by the City to assist the City in levying the Special Taxes. “Special Tax Fund” means the fund by that name established by Section 3.03(A) hereof. “Special Tax Prepayments” means amounts received by the City as prepayments of all or a portion of the Special Tax obligation of a parcel of property in the District. 194
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14 “Special Tax Prepayments Account” means the account by that name established by the Fiscal Agent in the Bond Fund pursuant to Section 4.02(A) hereof. “Special Tax Revenues” means the proceeds of the Special Taxes received by the City, including any scheduled payments thereof, interest and penalties thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes in the amount of said lien and interest and penalties thereon. “Standard & Poor’s” or “S&P” means S&P Global Ratings, and its successors or assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, then the term “S&P” shall be deemed to refer to any other nationally recognized securities rating agency selected by the City. “Subordinate Bonds” means bonds issued by the District pursuant to Section 2.12 hereof, for the purpose of accomplishing the defeasance and refunding of a portion of the Outstanding Bonds or Parity Bonds pursuant to Section 9.03 hereof, and that are secured by a pledge of and lien upon the Special Tax Revenues and funds pledged herein for the payment of the Bonds and any Parity Bonds hereunder subordinate to the Outstanding Bonds. “Supplemental Agreement” means an agreement amending and supplementing this Agreement as permitted hereby.

ARTICLE II

THE BONDS
Section 2.01. Principal Amount; Designation. The Bonds in the aggregate principal amount of $[__________] are hereby authorized to be issued by the City for and on behalf of the District under and subject to the terms of the Resolution, this Agreement, the Act and other applicable laws of the State of California. The Bonds shall be designated “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2023 Special Tax Refunding Bonds” and shall be issued in the form attached hereto as Exhibit A.

Section 2.02. Terms of Bonds.
(A) The Bonds. The Bonds shall be issued as fully registered bonds, without coupons, in the denominations of $5,000 or any integral multiple thereof. The Bonds shall be lettered and numbered in a customary manner as determined by the Fiscal Agent. The Bonds shall be dated as of [December 5, 2023].
(B) Maturities. The Bonds shall mature and become payable on September 1 of each year, as follows:
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15 Maturity Dates
(September 1) Principal Amounts Interest Rates
__________________
(C) Interest. The Bonds shall bear interest at the rates set forth in subsection (B) above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Closing Date; provided, however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon or from the Closing Date, if no interest has previously been paid or made available for payment thereon.
(D) Method of Payment. Interest on the Bonds is payable by check of the Fiscal Agent mailed by first class mail, postage prepaid, on each Interest Payment Date, until the principal amount of a Bond has been paid or made available for payment, to the registered Owner thereof at such registered Owner’s address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon written instructions received by the Fiscal Agent on or before the Record Date preceding the Interest Payment Date of any Owner of $1,000,000 or more in aggregate principal amount of Bonds; provided that so long as any Bonds are in book-entry form, payments with respect to such Bonds shall be made by wire transfer or such other method acceptable to the Fiscal Agent to the Depository. The principal of the Bonds and any premium on the Bonds are payable in lawful money of the United States of America by check of the Fiscal Agent upon surrender of such Bonds at the Principal Office of the Fiscal Agent.

All Bonds paid by the Fiscal Agent pursuant to this subsection shall be canceled by the Fiscal Agent upon surrender.
(E) CUSIP Identification Numbers. “CUSIP” identification numbers shall be imprinted on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds.

In addition, failure on the part of the City or the Fiscal Agent to use such CUSIP numbers in any notice to the Owners shall not constitute an event of default or any violation of the City’s contract with the Owners and shall not impair the effectiveness of any such notice. 196
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16 Section 2.03. Redemption.
(A) Optional Redemption. The Bonds maturing on or before September 1, 2030 are not subject to optional call and redemption prior to maturity. The Bonds maturing on or after September 1, 2031 may be redeemed at the option of the City, from any source of available funds, prior to maturity, on any date on or after September 1, 2030, as a whole, or in part from such maturities as are selected by the City, at the following redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates Redemption Price
September 1, 2030 through and including August 31, 2031 103% September 1, 2031 through and including August 31, 2032 102 September 1, 2032 through and including August 31, 2033 101 September 1, 2033 and any date thereafter 100
(B) Mandatory Redemption From Special Tax Prepayments. The Bonds are subject to mandatory redemption prior to their stated maturity dates on any Interest Payment Date, as selected by the City, in integral multiples of $5,000, from moneys derived by the City from Special Tax Prepayments, at redemption prices (expressed as percentages of the principal amounts of the Bonds to be redeemed), together with accrued interest to the date of redemption, as follows:

Redemption Period Redemption Price
March 1, 2024 through and including March 1, 2031 103%
September 1, 2031 and March 1, 2032 102
September 1, 2032 and March 1, 2033 101
September 1, 2033 and any Interest Payment Date thereafter 100 (C) Mandatory Sinking Fund Redemption. The Outstanding Bonds maturing on September 1, [____] are subject to mandatory sinking fund redemption, in part, on September 1, [____] and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date of redemption, without premium, and from sinking payments as follows:

Bonds Maturing on September 1, [ ]
Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
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17 The amounts in the foregoing schedule shall be reduced by the City pro rata among redemption dates, in order to maintain substantially level Debt Service, as a result of any prior partial redemption of the Bonds pursuant to subsection (A) or subsection (B) above. The City shall provide the Fiscal Agent with any revised schedule, if applicable. (D) Purchase of Bonds. In lieu of payment at maturity or redemption under this Section

2.03, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding Bonds, upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase.

In such event, the City shall, as may be appropriate, provide to the Fiscal Agent a revised maturity schedule or a revised mandatory sinking fund schedule for the Bonds, or both. (E) Notice to Fiscal Agent. An Authorized Officer shall give the Fiscal Agent written notice of the City’s intention to redeem Bonds not less than forty-five (45) days prior to the applicable redemption date. Such written notice shall specify whether Bonds are to be redeemed pursuant to subsection (A) or subsection (B) above and shall specify the principal amounts and the maturities of the Bonds to be redeemed. The provisions of this subsection (E) shall not apply to the redemption of Bonds pursuant to Section 2.03(C) hereof. (F) Redemption Procedure by Fiscal Agent. Subject to its receipt of timely notice from an Authorized Officer pursuant to Section 2.03(E), the Fiscal Agent shall cause notice of any redemption to be (a) mailed by first class mail, postage prepaid, or (b) electronically delivered at least thirty (30) days but not more than sixty (60) days prior to the date fixed for redemption, to the Securities Depositories and to one or more Information Services selected by an Authorized Officer, and to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books maintained by the Fiscal Agent at its Principal Office; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds. The Fiscal Agent shall also cause notice of any redemption to be mailed, in such manner and within such time, to the Original Purchaser.

Such notice shall state the date of such notice, the date of issue of the Bonds, the place or places of redemption, the redemption date, the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the CUSIP numbers and Bond numbers of the Bonds to be redeemed, by giving the individual CUSIP number and Bond number of each Bond to be redeemed, or shall state that all Bonds between two stated Bond numbers, both inclusive, are to be redeemed or that all of the Bonds of one or more maturities have been called for redemption, shall state as to any Bond called for redemption in part the portion of the principal of the Bond to be redeemed, shall require that such Bonds be then surrendered at the Principal Office of the Fiscal Agent for redemption at the said redemption price, and shall state that further interest on such Bonds will not accrue from and after the redemption date. The cost of the mailing and publication of any such redemption notice shall be paid by the District. Such notice may be conditional if specified by the City. Such notice may state that no representation is made as to the accuracy or correctness of the CUSIP numbers printed thereon or on the Bonds. 198
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18 Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.

The City shall have the right to rescind any notice of redemption prior to maturity or prior to the date fixed for such redemption prior to maturity, in which case such redemption shall be cancelled and annulled and such cancellation shall not constitute an event of default. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date so fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default hereunder. The City and the Fiscal Agent shall have no liability to the Owners or any other party related to or arising from such rescission or cancellation of redemption. The Fiscal Agent shall mail notice of such rescission or cancellation of redemption in the same manner as the original notice of redemption was sent under this Section.

Whenever provision is made in this Agreement for the redemption of less than all of the Bonds of a maturity or any given portion thereof, the Fiscal Agent shall select the Bonds of such maturity to be redeemed, from all Bonds of such maturity or such given portion thereof not previously called for redemption, by lot within a maturity in any manner which the Fiscal Agent in its sole discretion shall deem appropriate, subject to the procedures of the Depository.

Upon surrender of Bonds redeemed in part only, the City shall execute and the Fiscal Agent shall authenticate and deliver to the Owner, at the expense of the District, a new Bond or Bonds, of the same maturity, of authorized denominations in an aggregate principal amount equal to the unredeemed portion of the Bond or Bonds.
(G) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the redemption prices of the Bonds called for redemption shall have been deposited in the Bond Fund, such Bonds shall cease to be entitled to any benefit under this Agreement other than the right to receive payment of the redemption price, and interest shall cease to accrue on the Bonds to be redeemed on the redemption date specified in the notice of redemption.

All Bonds redeemed and purchased by the Fiscal Agent pursuant to this Section 2.03 shall be canceled by the Fiscal Agent.

Section 2.04. Form of Bonds. The Bonds, including the Fiscal Agent’s certificate of authentication and the assignment to appear thereon, shall be substantially in the forms set forth in Exhibit A attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions as permitted or required by this Agreement. 199
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19 Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the District by the manual or facsimile signatures of the Mayor of the City and the City Clerk who are in office on the date of this Agreement or at any time thereafter. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bond to the Owner, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the Bond to the Owner. Any Bond may be signed and attested on behalf of the District by such persons as at the actual date of the execution of such Bond shall be the proper officers of the City although at the nominal date of such Bond any such person shall not have been such officer of the City.

Only such Bonds as shall bear thereon a certificate of authentication in substantially the form set forth in Exhibit A hereto, as appropriate, manually executed and dated by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of authentication of the Fiscal Agent shall be conclusive evidence that such Bonds have been duly authenticated, registered and delivered hereunder, and are entitled to the benefits of this Agreement.

Section 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred upon the books required to be kept pursuant to the provisions of Section 2.08 hereof by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation at the Principal Office of the Fiscal Agent, accompanied by delivery of a duly executed written instrument of transfer in a form approved by the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the District. The Fiscal Agent shall collect from the Owner requesting transfer of a Bond any tax or other governmental charge required to be paid with respect to such transfer. Prior to any transfer of the Bonds outside the book-entry system (including, but not limited to, the initial transfer outside the book-entry system) the transferor shall provide or cause to be provided to the Fiscal Agent all information necessary to allow the Fiscal Agent to comply with any applicable tax reporting obligations, including without limitation any cost basis reporting obligations under Internal Revenue Code Section 6045, as amended. The Fiscal Agent shall conclusively rely on the information provided to it and shall have no responsibility to verify or ensure the accuracy of such information.

Whenever any Bond or Bonds shall be surrendered for transfer, the City shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds of like aggregate principal amount.

No transfers of Bonds shall be required to be made (i) during the fifteen (15) days preceding the date established by the Fiscal Agent for selection of Bonds for redemption, or (ii) with respect to Bonds which have been selected for redemption.

Section 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office of the Fiscal Agent only for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity and interest rate. The cost for any services rendered or any expense incurred by the Fiscal Agent in connection with any such exchange shall be paid by the District. The Fiscal Agent shall collect from the Owner requesting exchange of a Bond any tax or other governmental charge required to be paid with respect to such exchange. 200
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20 Whenever any Bond or Bonds shall be surrendered for exchange, the City shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds of like aggregate principal amount.

No exchanges of Bonds shall be required to be made (i) during the fifteen (15) days preceding the date established by the Fiscal Agent for selection of Bonds for redemption, or (ii) with respect to Bonds which have been selected for redemption.

Section 2.08. Bond Register. The Fiscal Agent shall keep, or cause to be kept, at its Principal Office sufficient books for the registration and transfer of the Bonds which books shall show the series, number, CUSIP identification number, date of issuance, amount, rate of interest and Owner of each Bond and shall at all times be open to inspection by the City during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided. The ownership of Bonds shall be proved by the Bond Register.

Section 2.09. Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the City, and may contain such reference to any of the provisions of this Agreement as may be appropriate.

Every temporary Bond shall be executed by the City upon the same conditions and in substantially the same manner as the definitive Bonds. If the City issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange for the definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits under this Agreement as definitive Bonds authenticated and delivered hereunder.

Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated, the City, at the expense of the Owner of said Bond, shall execute, and the Fiscal Agent shall authenticate and deliver, a replacement Bond of like tenor and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be canceled and destroyed by the Fiscal Agent. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and indemnity satisfactory to it shall be given, the City, at the expense of the Owner, shall execute, and the Fiscal Agent shall authenticate and deliver, a replacement Bond of like tenor and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen. The City or Fiscal Agent may require payment of a sum not exceeding the actual cost of preparing each replacement Bond delivered under this Section 2.10 and of the expenses which may be incurred by the City and the Fiscal Agent for the preparation, execution, authentication and delivery thereof.

Any Bond delivered under the provisions of this Section 2.10 in replacement of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation of the District whether or not the Bond so alleged to be lost, destroyed or stolen is at any time enforceable 201
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21 by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement.

Section 2.11. Special Obligation. All obligations of the District under this Agreement and the Bonds shall be special obligations of the District, payable solely from the Special Tax Revenues and the funds pledged therefor pursuant hereto. Neither the faith and credit nor the taxing power of the City, the District (except to the limited extent set forth herein) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds.

Section 2.12. Parity Bonds and Subordinate Bonds. The City will not issue Parity Bonds or Subordinate Bonds of the District for any purpose other than the defeasance and redemption of all or a portion of the Outstanding Bonds or Parity Bonds, which issue results in a lower debt service to maturity than the Bonds or Parity Bonds.

Section 2.13 Book-Entry. The Bonds shall be initially issued in the form of a single, fully registered Bond for each maturity (which may be typewritten). Upon initial issuance, the ownership of such Bonds shall be registered in the name of the Nominee identified below as nominee of The Depository Trust Company, New York, New York and its successors and assigns (the “Depository” or “DTC”). Except as hereinafter provided, all of the Outstanding Bonds shall be registered in the name of the nominee of the Depository, which may be the Depository, as determined from time to time pursuant to this Section 2.13 (the “Nominee”).

With respect to the Bonds registered in the name of the Nominee, none of the City, District nor the Fiscal Agent shall have any responsibility or obligation to any broker-dealers, banks and other financial institutions from time to time for which the Depository holds Bonds as securities depository (the “Participant”) or to any person on behalf of which such a Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, none of the City, the District nor the Fiscal Agent shall have any responsibility, liability or obligation whatsoever with respect to (i) the accuracy of the records of the Depository, the Nominee, or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person, other than an Owner of a Bond as shown in the Registration Books, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository and its Participants of the beneficial interests in the Bonds to be redeemed in the event the City redeems the Bonds in part, or (iv) the payment to any Participant or any other person, other than an Owner of a Bond as shown in the Registration Books, of any amount with respect to principal of or interest on the Bonds. The City, District and the Fiscal Agent may treat and consider conclusively the person in whose name each Bond is registered as the holder and absolute Owner of such Bond for the purpose of payment of principal and interest with respect to such Bond, for the purpose of giving notices of redemption, if applicable, and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever.

The City and District shall pay all principal of and interest on the Bonds only to or upon the order of the respective Owner of a Bond, as shown in the Registration Books, or his or her attorney duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the District’s obligations with respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than an Owner of a Bond, as shown in the Registration Books, shall receive a Bond evidencing the obligation of the District to make payments of principal and interest pursuant to this Agreement. Upon delivery by the 202
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22 Depository to the Owners of the Bond and the City of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions herein with respect to Record Dates, the word Nominee in this Agreement shall refer to such nominee of the Depository.

In the event (i) the Depository determines not to continue to act as securities depository for the Bonds, or (ii) the Depository shall no longer so act and gives notice to the City of such determination, then the City will discontinue the book-entry system with the Depository. If the City determines to replace the Depository with another qualified securities depository, the City shall prepare or direct the preparation of a new, single, separate, fully registered Bond, per maturity, registered in the name of such successor or substitute qualified securities depository or its nominee. If the City fails to identify another qualified securities depository to replace the Depository, then the Bonds shall no longer be restricted to being registered in the Registration Books in the name of the Nominee, but shall be registered in whatever name or names Owners of the Bonds transferring or exchanging Bonds shall designate, in accordance with the provisions of Sections 2.06 and 2.07 hereof, and the City shall prepare and deliver Bonds to the Fiscal Agent for authentication and delivery to the Owners thereof for such purpose.

In the event of a reduction in aggregate principal amount of Bonds Outstanding or an advance refunding of part of the Bonds Outstanding, the Depository, in its discretion, (a) may request the City to prepare and issue a new Bond or (b) may make an appropriate notation on a Bond indicating the date and amounts of such reduction in principal, but in such event the Registration Books maintained by the Fiscal Agent shall be conclusive as to what amounts are Outstanding with respect to the Bond, except in the case of final maturity, in which case the Bond must be presented to the Fiscal Agent prior to payment.

Notwithstanding any other provision of this Agreement to the contrary, so long as any Bond is registered in the name of the Nominee, all payments of principal and interest with respect to such Bond and all notices with respect to such Bond shall be made and given, respectively, as provided in the Representation Letter or as otherwise instructed by the Depository and acceptable to the City.

The initial Nominee shall be Cede & Co., as Nominee of DTC.

ARTICLE III
ISSUANCE OF BONDS; APPLICATION OF PROCEEDS;
SPECIAL TAX FUND; ADMINISTRATIVE EXPENSE FUND;

COSTS OF ISSUANCE FUND
Section 3.01. Issuance and Delivery of Bonds. At any time after the execution of this Agreement, the City may issue the Bonds for and on behalf of the District in the aggregate principal amounts set forth in Section 2.01 hereof and deliver the Bonds to the Original Purchaser. The Authorized Officers are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of the Bonds in accordance with the provisions of the Act, the Resolution, and this Agreement, to authorize the payment of Costs of Issuance by the 203
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23 Fiscal Agent from the Proceeds of Bonds, and to do and cause to be done any and all acts and things necessary or convenient for delivery of the Bonds to the Original Purchaser.

Section 3.02. Application of Proceeds of Sale of Bonds. (A) The Proceeds of the sale of the Bonds to the Original Purchaser, less the amount of $[___] paid to the Bond Insurer on behalf of the District by the Original Purchaser, and less an underwriter’s discount of $[___], shall be paid to the Fiscal Agent, who shall forthwith set aside, pay over and deposit such Proceeds on the Closing Date as follows:
(i) deposit in the Reserve Fund the amount of $[______________] which, together with the Debt Service Reserve Insurance Policy, constitutes the Reserve Requirement at the Closing Date;
(ii) deposit in the Costs of Issuance Fund the amount of $[___________]; and (iii) transfer to the Prior Fiscal Agent the amount of $[______________], for deposit to the principal account established under the Prior Fiscal Agent Agreement for the redemption of the Prior Bonds.
(B) In addition to the foregoing, on the Closing Date the Fiscal Agent shall transfer:
(i) all moneys from the Prior Administrative Expense Fund with respect to the Prior Bonds to the Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo Special Tax Refunding Bonds Administrative Expense Fund established hereunder; and
(ii) the Debt Service Reserve Insurance Policy.

The Fiscal Agent may create additional accounts and subaccounts in any of the funds created under this Agreement as the Fiscal Agent may deem appropriate for the purpose of fulfilling its obligations hereunder.

Section 3.03. Special Tax Fund.
(A) Creation of Special Tax Fund. There is hereby established, as a separate account to be held by the Fiscal Agent, the “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo Special Tax Refunding Bonds Special Tax Fund” to the credit of which the City shall deposit, within ten (10) Business Days after receipt, the Special Tax Revenues received by the City. Moneys in the Special Tax Fund shall be held in trust by the Fiscal Agent for the benefit of the City and the Owners of the Bonds, shall be disbursed as provided below and, pending disbursement, shall be subject to a lien in favor of the Owners of the Bonds.

Notwithstanding the foregoing, any amounts received by the City which constitute Special Tax Prepayments shall be transferred by the City not later than ten (10) Business Days after receipt to the Fiscal Agent for deposit by the Fiscal Agent in the Special Tax Prepayments Account established pursuant to Section 4.02(A) hereof.
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24 (B) Disbursements. As soon as practicable after the receipt from the City or County of any Special Tax Revenues, but no later than ten (10) Business Days after such receipt, the Fiscal Agent shall withdraw from the Special Tax Fund and deposit in the Administrative Expense Fund an amount which is estimated by the City, in a written communication from an Authorized Officer delivered to the Fiscal Agent (upon which the Fiscal Agent may conclusively rely), to be sufficient, together with the amount then on deposit in the Administrative Expense Fund, to pay the Administrative Expenses during the current Fiscal Year; provided, however, that the amount deposited in the Administrative Expense Fund prior to the deposits to the Interest Account and the Principal Account of the Bond Fund, as provided below, shall not exceed the Priority Administrative Expense Amount for any Fiscal Year. From the amount then remaining on deposit in the Special Tax Fund, the Fiscal Agent shall, as soon as the amount on deposit in the Special Tax Fund is sufficient, deposit in the Reserve Fund the amount, if any, which the City shall direct in a written communication from an Authorized Officer delivered to the Fiscal Agent (upon which the Fiscal Agent may conclusively rely), to be withdrawn from the Special Tax Fund and deposited in the Reserve Fund to make the amount on deposit therein equal to the Reserve Requirement.

Thereafter, on or before each Interest Payment Date, the Fiscal Agent shall deposit in the Interest Account and the Principal Account of the Bond Fund the amounts required for payment of interest on or interest on and principal of the Bonds and any Parity Bonds, as provided in Section 4.02(B) hereof.

Notwithstanding the preceding provisions of this subsection, if, prior to the September 1 Interest Payment Date in any Bond Year, the City determines that Special Tax Revenues will be sufficient to enable the Fiscal Agent to deposit in the Reserve Fund the amount, if any, which is necessary to make the amount on deposit therein equal to the Reserve Requirement and deposit in the Bond Fund the full amount required for deposit to the Interest Account and the Principal Account to pay the interest on and principal of the Bonds on such Interest Payment Date, the City may instruct the Fiscal Agent in an Officer’s Certificate, upon which the Fiscal Agent may conclusively rely, to deposit an additional amount in the Administrative Expense Fund which amount shall not exceed the difference between the amount of Special Tax Revenues then on deposit in the Special Tax Fund and the amounts required to be deposited in the Reserve Fund and the Bond Fund before making the required deposits to the Interest Account and the Principal Account of the Bond Fund, and the Fiscal Agent shall deposit such additional amount in the Administrative Expense Fund before depositing any amount to the Reserve Fund or the Interest Account and the Principal Account of the Bond Fund.

On September 2 of each year, beginning on September 2, 2024, the amount, if any, on deposit in the Special Tax Fund, together with the amount then on deposit in the Principal Account of the Bond Fund (but not including, however, the amounts, if any, then on deposit in the Interest Account or the Special Tax Prepayments Account), as determined by the City, shall not exceed the greater of (i) one year’s earnings on such amounts, or (ii) one-twelfth ( 1/12th) of Annual Debt Service for the then current Bond Year. If on September 2 of any year the amount on deposit in the Special Tax Fund, together with the amount then on deposit in the Principal Account, exceeds the maximum amount allowable pursuant to the preceding sentence, as determined by the City and communicated in writing by an Authorized Officer to the Fiscal Agent (upon which the Fiscal Agent may conclusively rely), the excess shall be transferred from the Special Tax Fund to and deposited in the Reserve Fund to the extent that the amount on deposit therein is less than the Reserve Requirement. Any such excess remaining in the Special Tax Fund after any such amount 205
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25 is transferred from the Special Tax Fund to the Reserve Fund shall be transferred from the Special Tax Fund to and deposited in the Administrative Expense Fund. On September 2 of each year, after any such excess amount has been transferred as hereinabove provided, the amount on deposit in the Special Tax Fund, together with the amount then on deposit in the Bond Fund (other than such excluded amounts), shall not exceed in the aggregate the greater of (i) one year’s earnings thereon, or (ii) one-twelfth ( 1/12th) of Annual Debt Service for the then current Bond Year. The Fiscal Agent shall have no obligation to monitor the City’s obligations as set forth in this paragraph.
(C) Investment. Moneys in the Special Tax Fund shall be invested and deposited in accordance with Section 6.01 hereof. Investment Earnings shall be retained in the Special Tax Fund to be used for the purposes of such accounts.

Section 3.04. Administrative Expense Fund.
(A) Creation of Administrative Expense Fund. There is hereby established, as a separate fund to be held by the Fiscal Agent, the “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo Special Tax Refunding Bonds Administrative Expense Fund” to the credit of which deposits shall be made as required by Section 3.02 and 3.03(B) hereof.

Moneys in the Administrative Expense Fund shall be held in trust by the Fiscal Agent for the benefit of the City, and shall be disbursed as provided below. (B) Disbursement. Amounts in the Administrative Expense Fund shall be withdrawn by the Fiscal Agent and paid to the City (or as directed by the City) upon receipt by the Fiscal Agent of an Officer’s Certificate stating the amount to be withdrawn (along with payment instructions), that such amount is to be used to pay an Administrative Expense (or a Cost of Issuance) and the nature of such Administrative Expense (or Cost of Issuance).

Annually, not later than the last day of each Fiscal Year, the Fiscal Agent shall withdraw any amount then remaining in the Administrative Expense Fund that has not been allocated by an Officer’s Certificate received by the Fiscal Agent from the City to pay Administrative Expenses which are expected to be incurred in the succeeding Fiscal Year prior to the receipt by the City of Special Tax Revenues for such succeeding Fiscal Year and transfer such amount to the Interest Account.
(C) Investment. Subject to the provisions of subsection (B) above, moneys in the Administrative Expense Fund shall be invested and deposited in accordance with Section 6.01 hereof. Investment Earnings shall be retained by the Fiscal Agent in the Administrative Expense Fund to be used for the purposes of such fund.

Section 3.05. Costs of Issuance Fund.
(A) Creation of Costs of Issuance Fund. There is hereby established, as a separate account to be held by the Fiscal Agent, the “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo Special Tax Refunding Bonds Costs of Issuance Fund” to the credit of which a deposit shall be made as required by Section 3.02(A)(ii) hereof. Moneys in the Cost of Issuance Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section for the payment or reimbursement of Costs of Issuance. 206
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26 (B) Disbursement. Amounts in the Costs of Issuance Fund shall be disbursed to pay Costs of Issuance, as set forth in a requisition containing respective amounts to be paid to the designated payees, signed by an Authorized Officer and delivered to the Fiscal Agent on the Closing Date. The Fiscal Agent shall pay all Costs of Issuance upon receipt of an invoice from any such payee which requests payment in an amount which is less than or equal to the amount set forth with respect to such payee in such requisition, or upon receipt of an Officer’s Certificate requesting payment of a Cost of Issuance not listed on the initial requisition delivered to the Fiscal Agent on the Closing Date. Each such invoice or Officer's Certificate shall be sufficient evidence to the Fiscal Agent of the facts stated therein and the Fiscal Agent shall have no duty to confirm the accuracy of such facts. The Fiscal Agent shall maintain the Costs of Issuance Fund for a period of ninety (90) days from the Closing Date and shall then transfer and deposit any moneys remaining therein, including any Investment Earnings thereon, to the Special Tax Fund. (C) Investment. Moneys in the Costs of Issuance Fund shall be invested and deposited in accordance with Section 6.01 hereof. Investment Earnings shall be retained by the Fiscal Agent in the Cost of Issuance Fund to be used for the purposes of such fund.

ARTICLE IV
SPECIAL TAX REVENUES; BOND FUND;

RESERVE FUND
Section 4.01. Pledge of Special Tax Revenues. The Bonds (including any Parity Bonds that may be issued) shall be secured by a first and prior pledge of and lien upon (which shall be perfected in the manner and to the extent herein provided) all of the Special Tax Revenues, except the Priority Administrative Expense Amount, all moneys on deposit in the Principal Account and the Interest Account of the Bond Fund, the Special Tax Prepayments Account for the purpose of redeeming Bonds, and all moneys on deposit in the Reserve Fund. The Bonds (including any Parity Bonds that may be issued) shall be equally secured by a pledge of and lien upon the Special Tax Revenues and such moneys without priority for number, date of Bond, date of execution or date of delivery; and the payment of the interest on and principal of the Bonds (including any Parity Bonds that may be issued) and any premium upon the redemption of any thereof shall be and is secured by a first and prior pledge of and lien upon the Special Tax Revenues and such moneys.

The Special Tax Revenues and all moneys on deposit in such funds and accounts are hereby dedicated in their entirety to the payment of the principal of the Bonds (including any Parity Bonds that may be issued), and interest and any premium on the Bonds (including any Parity Bonds that may be issued), as provided herein and in the Act, until all of the Bonds (including any Parity Bonds that may be issued) have been paid and retired or until moneys or Defeasance Securities have been set aside irrevocably for that purpose in accordance with Section 9.03 hereof. If Parity Bonds are issued for the purpose of discharging the indebtedness of a portion of the Outstanding Bonds pursuant to Section 9.03 hereof, the provisions of this Section 4.01 shall apply to such Parity Bonds to the same extent and with the same effect as they apply to the Bonds.

Section 4.02. Bond Fund.
(A) Deposits. There is hereby established, as a separate account to be held by the Fiscal Agent, the “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of 207
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27 Aliso Viejo Special Tax Refunding Bonds Bond Fund” to the credit of which deposits shall be made as required by Section 3.03(B) and Section 4.03 hereof and any other provision of this Agreement or the Act. There are hereby established in the Bond Fund, as separate accounts to be held by the Fiscal Agent, the “Interest Account” and the “Principal Account.” There is hereby also established in the Bond Fund, as a separate account to be held by the Fiscal Agent, the “Special Tax Prepayments Account” to the credit of which deposits shall be made as required by Section

3.03(A) hereof and paragraph (2) of subsection (B) below. Moneys in the Bond Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds, shall be disbursed for the payment of the principal of, and interest and any premium on, the Bonds as provided below, and, pending such disbursement, shall be subject to a lien in favor of the Owners of the Bonds. (B) Disbursements.
(1) Bond Fund Disbursements. On or before each Interest Payment Date, the Fiscal Agent shall transfer from the Special Tax Fund and deposit into the following respective accounts in the Bond Fund the following amounts in the following order of priority, the requirements of each such account (including the making up of any deficiencies in any such account resulting from lack of Special Tax Revenues sufficient to make any earlier required deposit) at the time of deposit to be satisfied before any transfer is made to any account subsequent in priority:
(a) Interest Account. On or before each Interest Payment Date, the Fiscal Agent shall deposit in the Interest Account the amount required to cause the aggregate amount on deposit in the Interest Account to equal the amount of interest becoming due and payable on the Bonds on such date. No deposit need be made into the Interest Account on any Interest Payment Date if the amount on deposit therein is at least equal to the interest becoming due and payable on the Bonds on such date. All moneys in the Interest Account shall be used and withdrawn by the Fiscal Agent solely for the purpose of paying the interest on the Bonds as it shall become due and payable (including accrued interest on any Bonds redeemed prior to maturity). All amounts on deposit in the Interest Account on the first day of any Bond Year, to the extent not required to pay any interest then having become due and payable on the Outstanding Bonds, shall be retained therein. (b) Principal Account. On or before each Interest Payment Date which occurs on September 1, the Fiscal Agent shall deposit in the Principal Account the amount required to cause the aggregate amount on deposit in the Principal Account to equal the principal amount of the Bonds becoming due and payable on such September 1 Interest Payment Date pursuant to Section 2.02 hereof, or the redemption price of the Bonds (consisting of the principal amount thereof and any applicable redemption premium) required to be redeemed on such date pursuant to any of the provisions of Section 2.03 hereof. All moneys in the Principal Account shall be used and withdrawn by the Fiscal Agent solely for the purpose of (i) paying the principal of the Bonds at the maturity thereof, or (ii) paying the principal of and premium (if any) on any Bonds upon the redemption thereof pursuant to Section

2.03 hereof. All amounts on deposit in the Principal Account on the first day of any Bond Year (i.e., September 2), to the extent not required to pay the principal of any 208
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28 Outstanding Bonds then having become due and payable on the Outstanding Bonds shall be withdrawn therefrom by the Fiscal Agent and transferred to the Interest Account.

In the event that moneys on deposit in the Special Tax Fund will be insufficient on any Interest Payment Date for the Fiscal Agent to deposit the required amounts in the Interest Account and the Principal Account, as provided above, the Fiscal Agent shall deposit the available funds first to the Interest Account up to the full amount required to cause the aggregate amount on deposit therein to equal the amount of interest becoming due and payable on the Bonds on the Interest Payment Date, and shall then deposit the remaining available funds in the Special Tax Fund to the Principal Account up to the full amount required to cause the aggregate amount on deposit therein to equal the amount, if any, of principal becoming due and payable on the Bonds on the Interest Payment Date. If, after making such deposits to the Interest Account and the Principal Account, and after transferring moneys from the Reserve Fund to such accounts, as provided in Section

4.03(B) hereof, the amount on deposit in the Principal Account is insufficient to pay the full amount of the principal of each of the Bonds which is to be redeemed on the Interest Payment Date, the Fiscal Agent shall make a prorated payment of the principal of each of such Bonds as specified in an Officer’s Certificate provided to the Fiscal Agent.

On September 2 of each year, beginning on September 2, 2024 the amount, if any, on deposit in the Principal Account (but not including, however, the amounts, if any, on deposit in the Interest Account and the Special Tax Prepayments Account), as determined by the City, together with the amount then on deposit in the Special Tax Fund, shall not exceed the greater of (i) one year’s earnings on such amounts, or (ii) one-twelfth (1/12th) of Annual Debt Service for the then current Bond Year. If on September 2 of any year the amount on deposit in the Principal Account, together with the amounts then on deposit in the Special Tax Fund, exceeds the maximum amount allowable pursuant to the preceding sentence, the excess shall be transferred by the Fiscal Agent, as directed in writing by the City (upon which the Fiscal Agent may conclusively rely), to the Reserve Fund to the extent that the amount on deposit therein is less than the Reserve Requirement, and any such excess remaining thereafter shall be transferred by the Fiscal Agent to the Administrative Expense Fund. On September 2 of each year, after any such excess amount has been transferred as hereinabove provided, the amount on deposit in the Principal Account, together with the amount then on deposit in the Special Tax Fund, shall not exceed the greater of (i) one year’s earnings thereon, or (ii) one-twelfth (1/12th) of Annual Debt Service for the then current Bond Year. The Fiscal Agent shall have no obligation to monitor the City’s obligations as set forth in this paragraph.
(2) Special Tax Prepayments Account Deposits and Disbursements. Within ten (10) Business Days after receiving a Special Tax Prepayment, the City shall deliver the amount thereof to the Fiscal Agent, together with an Officer’s Certificate notifying the Fiscal Agent that the amount being delivered is a Special Tax Prepayment which is to be deposited in the Special Tax Prepayments Account. Upon receiving a Special Tax Prepayment from the City and such an Officer’s Certificate, the Fiscal Agent shall deposit the amount of the Special Tax Prepayment in the Special Tax Prepayments Account. Such an Officer’s Certificate may be combined with the Officer’s Certificate which the City is 209
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29 required to deliver to the Fiscal Agent pursuant to Section 4.03(F) hereof. A portion of the moneys on deposit in the Special Tax Prepayments Account shall be transferred by the Fiscal Agent, upon receipt of an Officer’s Certificate directing such transfer and specifying the amount to be transferred (upon which the Fiscal Agent may conclusively rely), to the Principal Account on the next date for which notice of the redemption of the Bonds can timely be given under Section 2.03(F) hereof and shall be used to redeem the Bonds on the redemption date selected in accordance with Section 2.03(B) hereof. The portion of the moneys on deposit in the Special Tax Prepayments Account representing funded interest on a portion of the Outstanding Bonds shall be transferred by the Fiscal Agent, upon receipt of an Officer’s Certificate directing such transfer and specifying the amount to be transferred (upon which the Fiscal Agent may conclusively rely), to the Interest Account on or before each Interest Payment Date prior to and including the Interest Payment Date on which the redemption of such Bonds will occur. Pending such transfers, the moneys on deposit in the Special Tax Prepayments Account shall be invested in Permitted Investments of such type and at such yield as Bond Counsel may determine is necessary to preserve the exclusion of interest on the Bonds from gross income for purposes of federal income taxation. Investment Earnings from such Permitted Investments shall be retained by the Fiscal Agent in the Special Tax Prepayments Account. The City shall provide direction in writing to the Fiscal Agent which shall include an exhibit of the Bond Counsel’s determination.
(C) Investment. Moneys in the Bond Fund, including all accounts therein, shall be invested and deposited in accordance with Section 6.01 hereof. Investment Earnings shall be retained in the Bond Fund, except to the extent they are required to be deposited by the Fiscal Agent in the Rebate Fund in accordance with Section 6.02 hereof. Investment earnings with respect to moneys in the Special Tax Prepayments Account shall be retained therein as specified in paragraph (2) of subsection (B) above.

Section 4.03. Reserve Fund.
(A) Creation of Fund. There is hereby established, as a separate account to be held by the Fiscal Agent, the “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo Special Tax Refunding Bonds Reserve Fund” to the credit of which a deposit shall be made as required by Section 3.02(A)(i) hereof, which deposit is equal to the Reserve Requirement, and to which deposits shall be made as provided in Section 3.03(B) hereof.

Moneys in the Reserve Fund, and any subaccount therein, shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds as a reserve for the payment of the principal of and interest and any premium on the Bonds and shall be subject to a lien in favor of the Owners of the Bonds. In no event shall the Reserve Requirement exceed the initial deposit amount into the Reserve Fund. The Reserve Requirement may be satisfied in whole or in part by cash, by a Qualified Debt Service Reserve Instrument, or a combination thereof. On the date of issuance of the Bonds, the City will deposit $[____] from proceeds of the Bonds, together with the Debt Service Reserve Policy, into the Reserve Fund to satisfy the Reserve Requirement. (B) Use of Fund. Except as otherwise provided in this Section, all amounts on deposit in the Reserve Fund shall be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Interest Account and the Principal Account of the Bond Fund in the event 210
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30 of any deficiency at any time in either of such accounts of the amount then required for payment of the principal of and interest and any premium on the Bonds or, in accordance with the provisions of subsections (D) and (F) of this Section 4.03, for the purpose of redeeming Bonds. In the event the Reserve Fund is drawn upon to pay principal of and interest on the Bonds if insufficient funds are available from the proceeds of the levy and collection of the Special Taxes, the cash in the Reserve Fund will be drawn upon first and then the Reserve Fund Policy will be drawn upon if needed.
(C) Transfer Due to Deficiency in Interest and Principal Accounts. Whenever transfer is made from the Reserve Fund to the Interest Account or the Principal Account due to a deficiency in either such account, the Fiscal Agent shall provide written notice thereof to the City. (D) Transfer of Excess of Reserve Requirement. Whenever, on any September 2, the amount in the Reserve Fund, and any subaccount therein, less Investment Earnings resulting from the investment of the funds therein which pursuant to Section 6.02 hereof must be rebated to the United States, as previously directed by the City, exceeds the Reserve Requirement, as calculated on such date by the City and provided in writing to the Fiscal Agent, the Fiscal Agent shall provide written notice to the City of the amount of the excess. Upon receiving written direction from an Authorized Officer (upon which the Fiscal Agent can conclusively rely), the Fiscal Agent shall, unless notified otherwise by an Authorized Officer in such written direction that such amounts are to be transferred to the Rebate Fund pursuant to the requirements of Section 6.02 hereof, transfer an amount from the Reserve Fund, and any subaccount therein, which will reduce the amount on deposit therein to an amount equal to the Reserve Requirement to the Interest Account and the Principal Account, in the priority specified in Section 4.02(B)(1)(a) and (b) hereof, to be used for the payment of the interest on and principal of the Bonds on the next succeeding Interest Payment Date in accordance with Section 4.02 hereof.
(E) Transfer When Balance Exceeds Outstanding Bonds. Whenever the balance in the Reserve Fund, and any subaccount therein, is equal to or exceeds the amount required to redeem or pay the Outstanding Bonds, including interest accrued to the date of payment or redemption and premium, if any, due upon redemption, the Fiscal Agent shall, upon receiving written direction from an Authorized Officer (upon which the Fiscal Agent may conclusively rely), transfer the amount in the Reserve Fund, and any subaccount therein, to the Interest Account and the Principal Account to be applied, on the next succeeding Interest Payment Date, to the payment and redemption, in accordance with Section 2.03 and Section 4.02 hereof, as applicable, of all of the Outstanding Bonds. In the event that the amount available to be so transferred from the Reserve Fund to the Interest Account and the Principal Account exceeds the amount required to pay and redeem the Outstanding Bonds, the excess shall be transferred to the City to be used for any lawful purpose of the City.
(F) Transfers on Payment of Special Tax Obligations. Whenever the City receives a Special Tax Prepayment for a lot or parcel of property within the District, the City shall by an Officer’s Certificate notify the Fiscal Agent thereof and of the amount by which the Reserve Fund, and any subaccount therein, is to be reduced and which is transferable from the Reserve Fund, and any subaccount therein, to the Principal Account of the Bond Fund, which amount shall be specified in the Officer’s Certificate. Each such Officer’s Certificate shall be accompanied by a report of an Independent Financial Consultant or the Special Tax Consultant verifying the accuracy 211
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31 of the calculation of the amount to be transferred from the Reserve Fund to the Principal Account (“Verification”). Upon receipt of each such Officer’s Certificate and Verification, upon which the Fiscal Agent may conclusively rely, the Fiscal Agent shall at such time as the amount of such Special Tax Prepayment will be used to redeem Bonds, as provided in Section 4.02(B)(2) hereof, transfer the amount specified in such Officer’s Certificate to the Principal Account and use such amount, together with the amount of such Special Tax Prepayment, to redeem Bonds, as provided in Section 4.02(B)(2) hereof. Notwithstanding the preceding provisions of this subsection, no amount shall be transferred from the Reserve Fund, and any subaccount therein, to the Principal Account if the amount on deposit in the Reserve Fund is, or as a result of such transfer would be, less than the Reserve Requirement.
(G) Investments. Moneys on deposit in the Reserve Fund shall be invested, as directed in writing by an Authorized Officer, in Permitted Investments which do not have maturities extending beyond five (5) years; provided, however, if the Reserve Fund, or any subaccount therein, is invested in an investment agreement (as defined in clause (vii) of the definition of Permitted Investments in Section 1.03 hereof) or a repurchase agreement (as defined in clause (xi) of such definition) such agreement may have a maturity longer than five (5) years if the Fiscal Agent is authorized by the provisions of such agreement to draw the full amount thereof, without penalty, if required for the purposes of the Reserve Fund, and any subaccount therein. The City shall cause the Permitted Investments, other than such investment agreements, in which moneys on deposit in the Reserve Fund, and any subaccount therein, are invested to be valued at fair market value and marked-to-market at least once in each Fiscal Year.

Section 4.04 Draws on Debt Service Reserve Policy. [TO COME]

ARTICLE V

OTHER COVENANTS OF THE CITY
Section 5.01. Punctual Payment. The City will punctually pay or cause to be paid the principal of and interest and any premium on the Bonds when and as due in strict conformity with the terms of this Agreement and any Supplemental Agreement to the extent that the Special Tax Revenues are available therefor, and it will faithfully observe and perform all of the conditions, covenants and requirements of this Agreement and all Supplemental Agreements and of the Bonds.

Section 5.02. Special Obligation. The Bonds are special obligations of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in the Bond Fund, the Reserve Fund and the Special Tax Fund.

Section 5.03. Extension of Time for Payment. In order to prevent any accumulation of claims for interest after maturity, the City shall not, directly or indirectly, extend or consent to the extension of the time for the payment of any claim for interest on any of the Bonds and shall not, directly or indirectly, be a party to the approval of any such arrangement by purchasing or funding said claims for interest or in any other manner. In case any such claim for interest shall be extended or funded, whether or not with the consent of the City, such claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Agreement, except subject 212
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32 to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest which shall not have been so extended or funded.

Section 5.04. Against Encumbrances. The City shall not encumber, pledge or place any charge or lien upon any of the Special Tax Revenues or other amounts pledged to the Bonds superior to or on a parity with the pledge and lien herein created for the benefit of the Bonds, except as permitted by this Agreement.

Section 5.05. Books and Accounts. The City shall keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the City in which complete and correct entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Administrative Expense Fund. Such books of record and accounts shall at all times during business hours, upon reasonable notice, be subject to the inspection of the Fiscal Agent (which shall have no duty to inspect) and the Owners of not less than ten percent (10%) of the aggregate principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing.

Section 5.06. Protection of Security and Rights of Owners. The City will preserve and protect the security of the Bonds and the rights of the Owners, and will warrant and defend their rights against all claims and demands of all persons. From and after the delivery of any of the Bonds by the City, the Bonds shall be incontestable by the City.

Section 5.07. Collection of Special Tax Revenues. The City shall comply with all requirements of the Act, including the enactment of necessary Ordinances, so as to assure the timely collection of Special Tax Revenues, including without limitation, the enforcement of the payment or collection of delinquent Special Taxes.

On or within five (5) Business Days of May 1 of each year, the Fiscal Agent shall provide the City with a notice stating the amount then on deposit in the Special Tax Fund, the Bond Fund and the Reserve Fund (including all accounts and subaccounts therein); provided that monthly statements provided by the Fiscal Agent that include such information shall satisfy this notice requirement. The receipt of such notice by the City or the failure of the Fiscal Agent to give such notice shall in no way affect the obligations of the City under the following two paragraphs. The Fiscal Agent shall have no liability if it does not provide such notice to the City. Upon receipt of such notice, the City shall communicate with the Auditor to ascertain the relevant parcels on which the Special Taxes are to be levied, taking into account any parcel splits during the preceding and then current Fiscal Year.

The City shall effect the levy of the Special Taxes each Fiscal Year in accordance with the Act by August 10 of each year (or such later date as may be authorized by the Act or any amendment thereof) that the Bonds are Outstanding, such that the computation of the levy is complete before the final date on which the Auditor will accept the transmission of the Special Tax amounts for the parcels within the District for inclusion on the tax roll for the Fiscal Year then beginning. Upon the completion of the computation of the amounts of the levy of the Special Taxes, the City shall prepare or cause to be prepared, and shall transmit to the Auditor, such data as the Auditor requires to include the levy of the Special Taxes on the tax roll. Notwithstanding the preceding provisions of this paragraph, the City Council may elect, as permitted by the Act, to 213
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33 collect the Special Taxes to be levied for any Fiscal Year directly from the owners of the parcels of taxable property upon which the Special Taxes are levied rather than by transmitting the Special Taxes to the Auditor for collection on the tax roll; provided that, in such event, the City shall otherwise comply with the provisions of this Section 5.07.

The City shall fix and levy the amount of Special Taxes within the District required for the payment of the principal of and interest on any Outstanding Bonds becoming due and payable during the ensuing calendar year, including any necessary replenishment or expenditure of the Reserve Fund, and the amount estimated to be sufficient to pay the Administrative Expenses during such calendar year. The Special Taxes so levied shall not, in any event, exceed the maximum amounts provided for in the Rate and Method of Apportionment of Special Tax.

The Special Taxes shall be payable and be collected (except in the event of judicial foreclosure proceedings pursuant to Section 5.11 hereof) in the same manner and at the same time and in the same installments as the general taxes on real property are payable, and have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on real property.

The City will not, in collecting the Special Taxes or in processing any such judicial foreclosure proceedings, exercise any authority which it has pursuant to Sections 53340, 53344.1, 53356.1 and 53356.8 of the California Government Code in any manner which would materially and adversely affect the interests of the Bondowners and, in particular, will not permit the tender of Bonds in full or partial payment of any Special Taxes except upon receipt of a certificate of an Independent Financial Consultant that to accept such tender will not result in the City having insufficient Special Tax Revenues to pay the principal of and interest on the Bonds remaining Outstanding following such tender.

Section 5.08. Reduction of Maximum Special Tax Rates. The City covenants that, to the extent that it is legally permitted to avoid doing so, it will not initiate and conduct proceedings to reduce the maximum rates of Special Taxes which are authorized to be levied on taxable parcels of property within the District (the “Maximum Rates”).

The City further covenants that in the event an ordinance is adopted by initiative pursuant to Section 3 of Article XIII C of the California Constitution, which purports to reduce or otherwise alter the Maximum Rates, it will commence and pursue legal action seeking to preserve its ability to comply with its covenant contained in the preceding paragraph.

Section 5.09. Further Assurances. The City will adopt, make, execute and deliver any and all such further ordinances, resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Agreement, and for better assuring and confirming unto the Owners of the Bonds of the rights and benefits provided in this Agreement.

Section 5.10. Tax Covenants. The City covenants that:
(A) It will not take any action or omit to take any action, which action or omission, if reasonably expected on the date of the initial issuance and delivery of the 214
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34 Bonds, would have caused any of the Bonds to be “arbitrage bonds” within the meaning of Section 103(b) and Section 148 of the Code;
(B) It will not take any action or omit to take any action, which action or omission, if reasonably expected on the date of initial issuance and delivery of the Bonds, would result in loss of exclusion from gross income for purposes of federal income taxation under Section 103(a) of the Code of interest paid with respect to the Bonds; (C) It will not take any action or omit to take any action, which action or omission, if reasonably expected on the date of initial issuance and delivery of the Bonds, would have caused any of the Bonds to be “private activity bonds” within the meaning of Section 141 of the Code;
(D) It will comply with the Rebate Certificate as a source of guidance for achieving compliance with the Code; and
(E) In order to maintain the exclusion from gross income for purposes of federal income taxation of interest paid with respect to the Bonds, it will comply with each applicable requirement of Section 103 and Sections 141 through 150 of the Code.

The covenants of the City contained in this Section 5.10 shall survive the payment, redemption or defeasance of Bonds pursuant to Section 9.03 hereof.

Section 5.11. Covenant to Foreclose. The City hereby covenants with and for the benefit of the Owners of the Bonds as follows: (i) it will order, and cause to be commenced, judicial foreclosure proceedings against properties in the District with delinquent Special Taxes in excess of $10,000 by the October 1 following the close of the Fiscal Year in which such Special Taxes were due, and (ii) it will commence judicial foreclosure proceedings against all properties in the District with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than ninety-five percent (95%) of the total Special Taxes levied, and diligently pursue to completion such foreclosure proceedings; providing, however, the City shall not be required to order and cause judicial foreclosure proceedings to be commenced against delinquent properties as long as no deficiency in the Reserve Fund exists (or is projected to exist in order to meet the next upcoming debt service payment) and the City determines that the cost of pursuing such foreclosure is greater than the outstanding delinquency.

Section 5.12. Prepayment of Special Taxes. The City shall cause all applications of owners of property in the District to prepay and satisfy the Special Tax obligation for their property to be reviewed by the Special Tax Consultant and shall not accept any such prepayment unless such consultant certifies in writing that the total amount of the Maximum Special Tax for Debt Service and Facilities (as defined in the Rate and Method of Apportionment of Special Tax) that may be levied on Taxable Property both prior to and after the proposed prepayment is and will be at least 1.1 times the amount of Maximum Annual Debt Service on all Outstanding Bonds and Parity Bonds, if any, plus the Priority Administrative Expense Amount. For purposes of this Section, Taxable Property means all parcels of property in the District that are not exempt from 215
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35 the levy of the Special Tax pursuant to the Act or the Rate and Method of Apportionment of Special Tax.

Section 5.13. Calculation of Prepayments. The City will cause all Special Tax Prepayments to be calculated to include the amount of the premium on the Outstanding Bonds that will be redeemed with the Special Tax Prepayment. The City will not include in any calculation of the amount of any Special Tax Prepayment for any parcel of taxable property in the District a proportionate amount of the amount then on deposit in the Reserve Fund, if or to the extent such a credit would cause the amount on deposit in the Reserve Fund following such prepayment to be less than the Reserve Requirement.

Section 5.14. Continuing Disclosure. The City hereby covenants that it will comply with and carry out all of the provisions of the Continuing Disclosure Agreement.

Section 5.15. Accountability Measures. The City shall comply with the requirements of Section 53410 of the California Government Code with respect to the deposit and expenditure of the Proceeds of the sale of the Bonds and shall cause the appropriate officer of the City to file a report with the City Council no later than January 1, 2024, and annually thereafter, which shall contain the information required by Section 53411 of the California Government Code with respect to the expenditure of the Proceeds.

Section 5.16. State Reporting Requirements. In addition to Section 5.15, the following requirements shall apply to the Bonds:(A) Annual Reporting. Not later than October 30 of each calendar year, beginning with the October 30 first succeeding the date of the Bonds, and in each calendar year thereafter until the October 30 following the final maturity of the Bonds, the Director of Financial Services/City Treasurer shall cause the information required by California Government Code Section 53359.5(b) to be supplied to the California Debt and Investment Advisory Commission (“CDIAC”). The annual reporting shall be made using such form or forms as may be prescribed by CDIAC.
(B) Other Reporting. If at any time the Fiscal Agent fails to pay principal and interest due on any scheduled payment date for the Bonds due to insufficiency of funds on deposit in the Bond Fund, or if funds are withdrawn from the Reserve Fund to pay principal and interest on the Bonds so as to reduce the amount in the Reserve Fund to less than the Reserve Requirement, or if funds are withdrawn from another debt service reserve fund to pay principal and interest on the Bonds so as to reduce the amount in such fund to less than the applicable reserve requirement, the Fiscal Agent shall notify the Director of Financial Services/City Treasurer of such failure or withdrawal in writing. The Director of Financial Services/City Treasurer shall notify CDIAC and the Original Purchaser of such failure or withdrawal within ten (10) days of such failure or withdrawal.
(C) Special Tax Reporting. The Director of Financial Services/City Treasurer shall file a report with the District no later than the January 1 first succeeding the date of the Bonds, and at least once a year thereafter, which annual report shall contain (i) the amount of Special Taxes collected and expended with respect to the District, (ii) the amount of Bond Proceeds collected and expended with respect to the District, and (iii) the status of the Project. It is 216
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36 acknowledged that the annual report described in the preceding sentence is intended to satisfy the requirements of Sections 50075.1(d), 50075.3(d) and 53411 of the California Government Code. (D) Compliance with Section 53343.2. The City shall comply with the provisions of California Government Code Section 53343.2, which requires the City, within seven months after the last day of each fiscal year, to display prominently on its website all of the following information:
(i) A copy of an annual report for that fiscal year if requested pursuant to Government Code Section 53343.1; and
(ii) A copy of the report provided to CDIAC pursuant to Government Code Section 53359.5; and
(iii) A copy of the report, if any, provided to the State Controller’s office pursuant to Government Code Section 12463.2.
(E) Amendment. The reporting requirements of this Section 5.16 shall be amended from time to time, without action by the District or the Fiscal Agent (i) with respect to subparagraphs (A) and (B) above, to reflect any amendments to Section 53359.5(b) or Section 53359.5(c) of the Act, (ii) with respect to subparagraph (C) above, to reflect any amendments to Section 50075.1, 50075.3, 53410 or 53411 of the California Government Code, and (iii) with respect to subparagraph (D) above, to reflect any amendments to Section 53343.2 of the California Government Code. Notwithstanding the foregoing, any such amendment shall not, in itself, affect the City’s obligations under the Continuing Disclosure Agreement. The District shall notify the Fiscal Agent in writing of any such amendments which affect the reporting obligations of the Fiscal Agent under this Agreement.
(F) No Liability. None of the District, the City and its officers, agents and employees, the Director of Financial Services/City Treasurer, or the Fiscal Agent shall be liable for any inadvertent error in reporting the information required by this Section 5.16.

The Director of Financial Services/City Treasurer shall provide copies of any such reports to any Owner upon the written request of an Owner and payment by the person requesting the information of the cost of the District to photocopy and pay any postage or other delivery cost to provide the same, as determined by the Director of Financial Services/City Treasurer.

Section 5.17. Provisions Relating to Bond Insurer. [TO COME]

ARTICLE VI
INVESTMENTS; DISPOSITION OF INVESTMENT PROCEEDS;

LIABILITY OF THE SERVICES DISTRICT
Section 6.01. Deposit and Investment of Moneys in Funds. Subject in all respects to the provisions of Section 6.02 hereof, moneys in any fund or account created or established by this Agreement and held by the Fiscal Agent shall be invested by the Fiscal Agent in Permitted Investments, as directed pursuant to an Officer’s Certificate filed with the Fiscal Agent at least two 217
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37 (2) Business Days in advance of the making of such investments. In the absence of any such Officer’s Certificate, the Fiscal Agent shall hold such moneys uninvested. The Fiscal Agent shall not have any responsibility for determining the legality or suitability of any Permitted Investments and may rely on any Officer's Certificate or other direction as to the legality or suitability of any Permitted Investment. The Fiscal Agent shall have no obligation to pay additional interest or maximize investment income on any funds held by it. Neither the City nor the Owners of the Bonds shall have any claim of any kind against the Fiscal Agent in connection with investments properly made pursuant to this Section 6.01. Obligations purchased as an investment of moneys in any fund or account shall be deemed to be part of such fund or account, subject, however, to the requirements of this Agreement for transfer of Investment Earnings in funds and accounts.

The Fiscal Agent and its affiliates may act as sponsor, advisor, depository, principal or agent in the holding, acquisition or disposition of any investment. The Fiscal Agent shall not incur any liability for losses arising from any investments made pursuant to this Section 6.01. For purposes of determining the amount on deposit in any fund or account held hereunder, all Permitted Investments credited to such fund or account shall be valued at the cost thereof (excluding accrued interest and brokerage commissions, if any). In determining the market value of Permitted Investments, the Fiscal Agent may use and rely conclusively and without liability upon any generally recognized pricing information service (including brokers and dealers in securities) available to it.

Subject in all respects to the provisions of Section 6.02 hereof, investments in any and all funds and accounts may be commingled in a single fund for purposes of making, holding and disposing of investments, notwithstanding provisions herein for transfer to or holding in or to the credit of particular funds or accounts of amounts received or held by the Fiscal Agent hereunder, provided that the Fiscal Agent shall at all times account for such investments strictly in accordance with the funds and accounts to which they are credited and otherwise as provided in this Agreement.

The Fiscal Agent shall sell, or present for redemption, any investment security whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or account to which such investment security is credited, and the Fiscal Agent shall not be liable or responsible for any loss resulting from the acquisition or disposition of any such investment security in accordance herewith.

The City acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the City or the District the right to receive brokerage confirmations of security transactions as they occur, at no additional cost, the City and the District specifically waive receipt of such confirmations to the extent permitted by law. The Fiscal Agent shall furnish the City periodic cash transaction statements which include detail for all investment transactions made by the Fiscal Agent hereunder.

The Fiscal Agent may make any investments hereunder through its own bond or investment department or trust investment department, or those of its parent or any affiliate.

Section 6.02. Rebate Fund; Rebate to the United States. There is hereby created, to be held by the Fiscal Agent, as a separate account distinct from all other funds and accounts held by 218
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38 the Fiscal Agent under this Agreement, the Rebate Fund. The Fiscal Agent shall, in accordance with written directions received from an Authorized Officer, deposit into the Rebate Fund moneys transferred by the City to the Fiscal Agent pursuant to the Rebate Certificate or moneys transferred by the Fiscal Agent from the Bond Fund or the Reserve Fund. The Rebate Fund shall be held either uninvested or invested only in Federal Securities at the written direction of the City. Moneys on deposit in the Rebate Fund shall be applied only to payments made to the United States, to the extent such payments are required by the Rebate Certificate. The Fiscal Agent shall, upon written request and direction of the City, make such payments to the United States.

The Fiscal Agent’s sole responsibilities under this Section 6.02 are to follow the written instructions of the City pertaining hereto. The Fiscal Agent shall have no responsibility to independently make any calculation or determination or to review the City’s calculations hereunder. The Fiscal Agent may rely conclusively upon the City's determinations, calculations and certifications required by this Section. The City shall be responsible for any fees and expenses incurred by the Fiscal Agent pursuant to this Section 6.02.

The Fiscal Agent shall, upon written request and direction from the City, transfer to the City any moneys on deposit in the Rebate Fund in excess of the amount, if any, required to be maintained or held therein in accordance with the Rebate Certificate.

Section 6.03. Liability of the City. The City shall not incur any responsibility in respect of the Bonds or this Agreement other than in connection with the duties or obligations explicitly herein or in the Bonds assigned to or imposed upon it. The City shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. The City shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements of the Fiscal Agent herein or of any of the documents executed by the Fiscal Agent in connection with the Bonds. The Fiscal Agent has no liability regarding the use of the proceeds from the purchase of the Bonds deposited in funds held by the City or the District.

In the absence of bad faith, the City may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the City and conforming to the requirements of this Agreement. The City shall not be liable for any error of judgment made in good faith unless it shall be proved that it was negligent in ascertaining the pertinent facts.

No provision of this Agreement shall require the City to expend or risk its own general funds or otherwise incur any financial liability (other than with respect to the Special Tax Revenues) in the performance of any of its obligations hereunder, or in the exercise of and of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

The City may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, Bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The City may consult with counsel, who may be counsel to the City, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and 219
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39 protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.

Whenever in the administration of its duties under this Agreement the City shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the City, be deemed to be conclusively proved and established by a certificate of the Fiscal Agent, and such certificate shall be full warranty to the City for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the City may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.

Section 6.04. Employment of Agents by City. In order to perform its duties and obligations hereunder, the City may employ such persons or entities as it deems necessary or advisable. The City shall not be liable for any of the acts or omissions of such persons or entities employed by it in good faith hereunder, and shall be entitled to rely, and shall be fully protected in doing so, upon the opinions, calculations, determinations and directions of such persons or entities.

ARTICLE VII

THE FISCAL AGENT
Section 7.01. Appointment of Fiscal Agent. The Bank of New York Mellon Trust Company, N.A., is hereby appointed Fiscal Agent, registrar and paying agent for the Bonds. The Fiscal Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent.

Any company into which the Fiscal Agent may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible under the following paragraph of this Section 7.01, shall be the successor to the Fiscal Agent without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding.

The City may remove the Fiscal Agent initially appointed, and any successor thereto, and may appoint a successor or successors thereto, but any such successor shall be a bank, national banking association, or trust company having a combined capital (exclusive of borrowed capital) and surplus of at least $50,000,000, and subject to supervision or examination by federal or state authority. If such bank, national banking association, or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority referred to above, then for the purposes of this Section 7.01, the combined capital and surplus of such bank, national banking association, or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. 220
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40 The Fiscal Agent may at any time resign by giving written notice to the City and by giving to the Owners notice by mail of such resignation. Upon receiving notice of such resignation, the City shall promptly appoint a successor Fiscal Agent by an instrument in writing. Any resignation or removal of the Fiscal Agent shall become effective upon acceptance of appointment by the successor Fiscal Agent.

If no appointment of a successor Fiscal Agent shall be made pursuant to the foregoing provisions of this Section 7.01 within forty-five (45) days after the Fiscal Agent shall have given to the City written notice or after a vacancy in the office of the Fiscal Agent shall have occurred by reason of its inability to act, the Fiscal Agent, at the expense of the City, or any Owner may apply to any court of competent jurisdiction to appoint a successor Fiscal Agent. Said court may thereupon, after such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent.

Section 7.02. Liability of Fiscal Agent. The recitals of facts, covenants and agreements herein and in the Bonds contained shall be taken as statements, covenants and agreements of the City and the District, and the Fiscal Agent assumes no responsibility for the correctness of the same, nor makes any representations as to the validity or sufficiency of this Agreement or of the Bonds, nor shall the Fiscal Agent incur any responsibility in respect thereof, other than in connection with the duties or obligations herein or in the Bonds assigned to or imposed upon it.

The Fiscal Agent shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful misconduct. The Fiscal Agent assumes no responsibility or liability for any information, statement or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds.

In the absence of bad faith, the Fiscal Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates, opinions, resolutions, orders, notices, requests, consents, waivers, statements, affidavits or other paper, documents or electronic communications or information furnished to the Fiscal Agent and conforming to the requirements of this Agreement. Except as provided above in this paragraph, the Fiscal Agent shall be protected and shall incur no liability in acting or proceeding, or in not acting or not proceeding, in good faith, reasonably and in accordance with the terms of this Agreement, upon any resolution, order, notice, request, consent or waiver, opinion, certificate, statement, affidavit, facsimile transmission, electronic mail or other paper or document which it shall in good faith reasonably believe to be genuine and to have been adopted or signed by the proper person or to have been prepared and furnished pursuant to any provision of this Agreement, and the Fiscal Agent shall not be under any duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument.

The Fiscal Agent shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Fiscal Agent unless it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts.

No provision of this Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers.
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41 The Fiscal Agent shall not be responsible for accounting for, or paying to, any party to this Agreement, including, but not limited to the City and the Owners, any returns on or benefit from funds held for payment of unredeemed Bonds or outstanding checks and no calculation of the same shall affect, or result in any offset against, fees due to the Fiscal Agent under this Agreement.

The Fiscal Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement at the request or direction of any of the Owners pursuant to this Agreement unless such Owners shall have offered to the Fiscal Agent reasonable security or indemnity satisfactory to the Fiscal Agent against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

The Fiscal Agent may become the owner of the Bonds with the same rights it would have if it were not the Fiscal Agent.

The Fiscal Agent shall not be concerned with or accountable to anyone for the subsequent use or application of any moneys which shall be released or withdrawn in accordance with the provisions hereof.

The permissive right of the Fiscal Agent to do things enumerated in this Agreement shall not be construed as a duty and it shall not be liable for other than its negligence or willful misconduct.

In no event shall the Fiscal Agent be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to lost profits) even if the Fiscal Agent has been advised of the likelihood of such damages and regardless of the form of such action, other than for actions involving negligence or willful misconduct by the Fiscal Agent.

All indemnification and releases from liability granted herein to the Fiscal Agent shall extend to the directors, officers and employees of the Fiscal Agent.

The Fiscal Agent shall have the right to accept and act upon instructions, including funds transfer instructions (“Instructions”) given pursuant to this Agreement and delivered using Electronic Means; provided, however, that the City shall provide to the Fiscal Agent an incumbency certificate listing officers with the authority to provide such Instructions (“Authorized Officers”) and containing specimen signatures of such Authorized Officers, which incumbency certificate shall be amended by the City whenever a person is to be added or deleted from the listing. If the City elects to give the Fiscal Agent Instructions using Electronic Means and the Fiscal Agent in its discretion elects to act upon such Instructions, the Fiscal Agent’s understanding of such Instructions shall be deemed controlling. The City understands and agrees that the Fiscal Agent cannot determine the identity of the actual sender of such Instructions and that the Fiscal Agent shall conclusively presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Fiscal Agent have been sent by such Authorized Officer. The City shall be responsible for ensuring that only Authorized Officers transmit such Instructions to the Fiscal Agent and that the City and all Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the City. The Fiscal Agent shall not be liable for any losses, costs or expenses arising directly or indirectly from the Fiscal Agent’s 222
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42 reliance upon and compliance with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction. The City agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Fiscal Agent, including without limitation the risk of the Fiscal Agent acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Fiscal Agent and that there may be more secure methods of transmitting Instructions than the method(s) selected by the City; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Fiscal Agent immediately upon learning of any compromise or unauthorized use of the security procedures.

The Fiscal Agent may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, custodians or nominees appointed with due care, and shall not be responsible for any willful misconduct or negligence on the part of any agent, attorney, custodian or nominee so appointed.

The Fiscal Agent shall not be considered in breach of or in default in its obligations hereunder or progress in respect thereto in the event of enforced delay (“unavoidable delay”) in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not limited to, Acts of God or of the public enemy or terrorists, acts of a government, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, earthquakes, explosion, mob violence, riot, inability to procure or general sabotage or rationing of labor, equipment, facilities, sources of energy, material or supplies in the open market, litigation or arbitration involving a party or others relating to zoning or other governmental action or inaction pertaining to the Project, malicious mischief, condemnation, and unusually severe weather or delays of suppliers or subcontractors due to such causes or any similar event and/or occurrences beyond the control of the Fiscal Agent.

Section 7.03. Information. The Fiscal Agent shall provide to the City such information relating to the Bonds and the funds and accounts maintained by the Fiscal Agent hereunder as the City shall reasonably request, including, but not limited to, quarterly statements reporting funds held and transactions by the Fiscal Agent.

Section 7.04. Notice to Fiscal Agent. The Fiscal Agent may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, Bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The Fiscal Agent may consult with counsel, who may be counsel to the City, with regard to legal questions, and the advice or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by the Fiscal Agent hereunder in good faith and in accordance therewith.

Whenever in the administration of its duties under this Agreement the Fiscal Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Fiscal Agent, be deemed to be conclusively proved and established by a certificate of the City, and such certificate shall be 223
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43 full warranty to the Fiscal Agent for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.

Section 7.05. Compensation, Indemnification. The City shall pay to the Fiscal Agent from time to time reasonable compensation for all services rendered as Fiscal Agent under this Agreement, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of its attorneys (including the allocated cost of in-house attorneys), agents and employees, incurred in and about the performance of its powers and duties under this Agreement, and the Fiscal Agent shall have a first priority lien therefor on any funds at any time held by the Fiscal Agent under this Agreement, and the Fiscal Agent shall pay and reimburse all expenses, charges, fees and other disbursements, including those of its attorneys, agents and employees, incurred in connection therewith from the funds held by it under this Agreement. The City further agrees, to the extent permitted by applicable law, to indemnify and save the Fiscal Agent, its officers, employees, directors and agents, harmless against any liabilities, losses, costs, expenses (including legal fees and expenses), suits, claims, judgments, damages or liabilities which it may incur in the exercise and performance of its powers and duties hereunder or the enforcement of this Section which are not due to its negligence or willful misconduct. The obligation of the City under this Section 7.05 shall survive resignation or removal of the Fiscal Agent under this Agreement and payment of the Bonds and discharge of this Agreement.

Section 7.06. Books and Accounts. The Fiscal Agent shall keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Fiscal Agent, in which complete and correct entries shall be made of all transactions made by it and with respect to the expenditure of amounts disbursed from the Bond Fund, the Special Tax Fund, the Administrative Expense Fund, the Reserve Fund and the Cost of Issuance Fund. Such books of record and accounts shall, upon reasonable prior notice, at all times during business hours be subject to the inspection of the City and the Owners of not less than ten percent (10%) of the aggregate principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing.

ARTICLE VIII

MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Section 8.01. Amendments Permitted.
(A) This Agreement and the rights and obligations of the District and the City and of the Owners of the Bonds may be modified or amended at any time by a Supplemental Agreement with either (a) the affirmative vote of the Owners at a meeting of the Owners, or (b) the written consent, without a meeting, of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section

8.04 hereof. No such modification or amendment shall (i) extend the maturity of any Bond or the time for paying interest thereon, or otherwise alter or impair the obligation of the City on behalf of the District to pay the principal of, and the interest and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii) permit the creation of any pledge of or lien 224
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44 upon the Special Tax Revenues, or the moneys on deposit in the Special Tax Fund, the Bond Fund or the Reserve Fund, superior to or on a parity with the pledge and lien created for the benefit of the Bonds (except as otherwise permitted by the Act, the laws of the State of California or this Agreement), or (iii) reduce the percentage of Bonds required for the amendment hereof, or (iv) reduce the principal amount of or redemption premium on any Bond or reduce the interest rate thereon. Any such amendment may not modify any of the rights or obligations of the Fiscal Agent without its written consent. The City shall deliver to the Fiscal Agent an opinion of counsel that any such Supplemental Agreement entered into by the City and the Fiscal Agent complies with the provisions of this Section 8.01 and the Fiscal Agent may conclusively rely on such opinion. (B) This Agreement and the rights and obligations of the District and the City and the Owners may also be modified or amended at any time by a Supplemental Agreement, without the consent of any Owners, only to the extent permitted by law and only for any one or more of the following purposes:
(1) to add to the covenants and agreements of the City in this Agreement contained, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the City; (2) to make modifications not materially adversely affecting any Outstanding Bonds in any material respect as evidenced by an opinion of counsel delivered pursuant to Section 8.08 hereof;
(3) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provisions of this Agreement, or in regard to questions arising under this Agreement, as the City and the Fiscal Agent may deem necessary or desirable and not inconsistent with this Agreement, and which shall not materially adversely affect the rights of the Owners as evidenced by an opinion of counsel delivered pursuant to Section 8.08 hereof;
(4) to make such additions, deletions or modifications as may be necessary or desirable to assure compliance with Section 148 of the Code relating to required rebate of moneys to the United States or otherwise as may be necessary to assure exclusion from gross income for federal income tax purposes of interest on the Bonds or to conform with the Regulations; or
(5) to provide for the issuance of Parity Bonds to pay and discharge the indebtedness of a portion of the Outstanding Bonds (a “Partial Discharge”) pursuant to Section 9.03 hereof; provided that, following the issuance of such Parity Bonds, Maximum Annual Debt Service on the Bonds that will remain Outstanding following such Partial Discharge and such Parity Bonds will not be more in any subsequent Bond Year than Maximum Annual Debt Service on the Outstanding Bonds before the issuance of such Parity Bonds.

Section 8.02. Owners’ Meetings. The City may at any time call a meeting of the Owners.

In such event, the City is authorized to fix the time and place of any such meeting and to provide 225
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45 for the giving of notice thereof and to fix and adopt rules and regulations for the conduct of the meeting.

Section 8.03. Procedure for Amendment with Written Consent of Owners. The City and the Fiscal Agent may at any time enter into a Supplemental Agreement amending the provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent that such amendment is permitted by Section 8.01(A) hereof, to take effect when and as provided in this Section 8.03. A copy of the Supplemental Agreement, together with a request to Owners for their consent thereto, shall be mailed by first class mail, postage prepaid, or sent by electronic mail (if applicable) by the Fiscal Agent to each Owner of Bonds Outstanding, but failure to mail or email copies of the Supplemental Agreement and request shall not affect the validity of the Supplemental Agreement when assented to as provided in this Section.

Such a Supplemental Agreement shall not become effective unless there shall be filed with the Fiscal Agent the written consents of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as provided in Section 8.04) and a notice shall have been mailed as hereinafter provided in this Section. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 9.04 hereof. Any such consent shall be binding upon the Owner of the Bonds giving such consent and on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing such revocation with the Fiscal Agent prior to the date when the notice provided for hereinafter in this Section has been mailed.

After the Owners of the required percentage of Bonds shall have filed their consents to the Supplemental Agreement, the City shall mail a notice to the Owners in the manner hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in substance that the Supplemental Agreement has been consented to by the Owners of the required percentage of Bonds and will be effective as provided in this Section (but failure to mail copies of said notice shall not affect the validity of the Supplemental Agreement or consents thereto). Proof of the mailing of such notice shall be filed with the Fiscal Agent. A record, consisting of the papers required by this Section 8.03 to be filed with the Fiscal Agent, shall be proof of the matters therein stated until the contrary is proved. The Supplemental Agreement shall become effective upon the filing with the Fiscal Agent of the proof of mailing of such notice, and the Supplemental Agreement shall be deemed conclusively binding (except as otherwise hereinabove specifically provided in this Article VIII) upon the City, the District and the Owners of all Bonds then Outstanding at the expiration of sixty (60) days after such filing, except in the event of a final decree of a court of competent jurisdiction setting aside such consent in a legal action or equitable proceeding for such purpose commenced within such sixty (60)-day period.

Section 8.04. Disqualified Bonds. Bonds owned or held for the account of the City, excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of any vote, consent or other action or any calculation of Outstanding Bonds provided for in this Article VIII, and shall not be entitled to vote upon, consent to, or participate in any action provided for in this Article VIII; except that in determining whether the Fiscal Agent shall be protected in relying upon any vote or consent of an Owner, only Bonds which the Fiscal Agent actually knows to be 226
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46 owned or held for the account of the City shall be disregarded unless all Bonds are so owned or held, in which case such Bonds shall be considered Outstanding for the purpose of such determination.

Section 8.05. Effect of Supplemental Agreement. From and after the time any Supplemental Agreement becomes effective pursuant to this Article VIII, this Agreement shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Agreement of the City and all Owners of Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such Supplemental Agreement shall be deemed to be part of the terms and conditions of this Agreement for any and all purposes.

Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments. The City may determine that Bonds issued and delivered after the effective date of any action taken as provided in this Article VIII shall bear a notation, by endorsement or otherwise, in form approved by the City, as to such action. In that case, upon demand of the Owner of any Bond Outstanding at such effective date and upon presentation of his Bond for that purpose at the Principal Office of the Fiscal Agent or at such other office as the City may select and designate for that purpose, a suitable notation shall be made on such Bond. The City may determine that new Bonds, so modified as in the opinion of the City is necessary to conform to such action, shall be prepared, executed and delivered. In that case, upon demand of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at the Principal Office of the Fiscal Agent without cost to any Owner, for like Bonds then Outstanding, upon surrender of such Bonds.

Section 8.07. Amendatory Endorsement of Bonds. The provisions of this Article VIII shall not prevent any Owner from accepting any amendment as to the particular Bonds held by him, provided that due notation thereof is made on such Bonds.

Section 8.08. Execution of Supplemental Agreements. In executing, or accepting the additional trusts created by, any Supplemental Agreement permitted by this Article or the modification thereby of the trusts created by this Agreement, the Fiscal Agent shall be entitled to receive, and shall be fully protected in relying upon, an opinion of counsel stating that the execution of such Supplemental Agreement is authorized or permitted by this Agreement and complies with the terms hereof. The Fiscal Agent may, but shall not be obligated to, enter into any such Supplemental Agreement which affects the Fiscal Agent's own rights, duties or immunities under this Agreement or otherwise.

ARTICLE IX

MISCELLANEOUS
Section 9.01. Benefits of Agreement Limited to Parties. Nothing in this Agreement, expressed or implied, is intended to give to any person other than the City, the Fiscal Agent and the Owners, any right, remedy or claim under or by reason of this Agreement. Any covenants, stipulations, promises or agreements in this Agreement contained by and on behalf of the City shall be for the sole and exclusive benefit of the Owners and the Fiscal Agent. 227
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47 Section 9.02. Successor is Deemed Included in All References to Predecessor. Whenever in this Agreement or any Supplemental Agreement either the City or the Fiscal Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Agreement contained by or on behalf of the City or the Fiscal Agent shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not.

Section 9.03. Discharge of Agreement.

If the City shall pay and discharge the entire indebtedness of all or a portion (a “Partial Discharge”) of the Outstanding Bonds in any one or more of the following ways:
(A) by well and truly paying or causing to be paid the principal of and interest and any premium on such Bonds, as and when the same become due and payable; (B) by depositing with the Fiscal Agent, in trust, at or before maturity, an amount of money which, together with the amounts then on deposit in the Bond Fund, the Special Tax Fund and the Reserve Fund, or in the event of a Partial Discharge, the appropriate portion of such amounts, as determined by the City and confirmed by an Independent Financial Consultant, is fully sufficient to pay all such Bonds, including all principal, interest and redemption premiums, if any; or (C) by irrevocably depositing with the Fiscal Agent, in trust, cash or non- callable Defeasance Securities in such amount as the City shall determine will, together with the interest to accrue thereon and amounts then on deposit in the Bond Fund, the Special Tax Fund and the Reserve Fund, or in the event of a Partial Discharge, the appropriate portion of such amounts, as determined by the City, be fully sufficient to pay and discharge the indebtedness of all such Bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates; and if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in this Agreement provided or provision satisfactory to the Fiscal Agent shall have been made for the giving of such notice; then, at the election of the City, and notwithstanding that any such Bonds shall not have been surrendered for payment, the pledge of the Special Tax Revenues and other funds provided for in this Agreement and all other obligations of the City and the District under this Agreement with respect to such Bonds shall cease and terminate, except the obligation of the City to pay or cause to be paid to the Owners of such Bonds not so surrendered and paid all sums due thereon, the obligation of the City to pay all amounts owing to the Fiscal Agent pursuant to Section 7.05 hereof, and the obligations of the City pursuant to the covenants contained in Section 5.10 hereof; and thereafter Special Tax Revenues shall not be payable to the Fiscal Agent with respect to such Bonds. Notice of such election shall be filed with the Fiscal Agent. The satisfaction and discharge of this Agreement as to all of the Outstanding Bonds shall be without prejudice to the rights of the Fiscal Agent to charge and be reimbursed by the City for the expenses which it shall thereafter incur in connection herewith. 228
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48 Any funds held by the Fiscal Agent to pay and discharge the indebtedness on such Bonds, upon payment of all fees and expenses of the Fiscal Agent, which are not required for such purpose, shall be paid over to the City.

Section 9.04. Execution of Documents and Proof of Ownership by Owners. Any request, consent, declaration or other instrument which this Agreement may require or permit to be executed by Owners may be in one or more instruments of similar tenor, and shall be executed by Owners in person or by their attorneys appointed in writing.

Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such a request, consent, declaration or other instrument, or of a writing appointing such an attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such a notary public or other officer.

Except as otherwise herein expressly provided, the ownership of registered Bonds and the amount, maturity, number and date of holding the same shall be proved by the registration books maintained by the Fiscal Agent pursuant to Section 2.08 hereof.

Any request, consent, declaration or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond in respect of anything done or suffered to be done by the City or the Fiscal Agent in good faith and in accordance therewith.

Section 9.05. Waiver of Personal Liability. No member, officer, agent or employee of the City or the District shall be individually or personally liable for the payment of the principal of, or interest or any premium on, the Bonds; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law.

Section 9.06. Notices to and Demands on City and Fiscal Agent. Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the Fiscal Agent to or on the City may be given or served by being deposited postage prepaid (first class, registered or certified) in a post office letter box addressed (until another address is filed by the City with the Fiscal Agent) as follows:

City of Aliso Viejo
12 Journey, Suite 100
Aliso Viejo, CA 92656-5335
Attn: Director of Financial Services/City Treasurer
Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the City to or on the Fiscal Agent may be given or served by Electronic Means (hereinafter defined) or by being deposited postage prepaid (first class, registered or certified) in a post office letter box addressed (until another address is filed by the Fiscal Agent with the City) as follows:
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49 The Bank of New York Mellon Trust Company, N.A.
333 South Hope Street, Suite 2525
Los Angeles, CA 90071
Attn: Corporate Trust
"Electronic Means" shall mean the following communications methods: S.W.I.F.T., e-mail, facsimile transmission, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Fiscal Agent, or another method or system specified by the Fiscal Agent as available for use in connection with its services hereunder.

Section 9.07. Partial Invalidity. If any section, paragraph, sentence, clause or phrase of this Agreement shall for any reason be held by a court of competent jurisdiction to be illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Agreement. The City hereby declares that it would have executed and delivered this Agreement and each and every other section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of the fact that any one or more sections, paragraphs, sentences, clauses or phrases of this Agreement may be held illegal, invalid or unenforceable.

Section 9.08. Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any moneys held by the Fiscal Agent in trust for the payment and discharge of the principal of, and the interest and any premium on, the Bonds which remains unclaimed for two (2) years after the date when the payment of such principal, interest and premium have become payable, if such moneys were held by the Fiscal Agent at such date, shall be paid by the Fiscal Agent to the City (without liability for interest) as its absolute property free from any trust, and the Fiscal Agent shall thereupon be released and discharged with respect thereto and the Owners of such Bonds shall look only to the City for the payment of the principal of, and interest and any premium on, their Bonds.

Section 9.09. Applicable Law. This Agreement shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California.

Section 9.10. Conflict with Act. In the event of a conflict between any provision of this Agreement with any provision of the Act as in effect on the Closing Date, the provision of the Act shall prevail over the conflicting provision of this Agreement.

Section 9.11. Conclusive Evidence of Regularity. Bonds issued pursuant to this Agreement shall constitute conclusive evidence of the regularity of all proceedings under the Act relative to their issuance and the levy of the Special Taxes.

Section 9.12. Payment on Business Day. In any case where the date of the payment of interest on or of principal (and premium, if any) of the Bonds or the date fixed for redemption is other than a Business Day, the payment of interest or principal (and premium, if any) need not be made on such date but may be made on the next succeeding day which is a Business Day with the same force and effect as if made on the date required, and no interest shall accrue for the period from and after such date.
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50 Section 9.13. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.
(Signature page follows)
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S-1
IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its name on behalf of the District, and the Fiscal Agent, in acknowledgment of its acceptance of the duties of the Fiscal Agent created hereunder, has caused this Agreement to be executed in its name, all as of the date and year first herein above written.

CITY OF ALISO VIEJO, for and on behalf of
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO) OF THE CITY OF

ALISO VIEJO, COUNTY OF ORANGE, STATE OF

CALIFORNIA
By:

David Doyle
City Manager

THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as Fiscal Agent
By:

Authorized Officer
-Signature Page-
Fiscal Agent Agreement
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A-1

EXHIBIT A

FORM OF BOND

UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE

DEPOSITORY (AS DEFINED IN THE FISCAL AGENT AGREEMENT) TO THE FISCAL

AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY

BOND AUTHENTICATED AND DELIVERED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED

REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED

REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE, OR OTHER USE

HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

No. ________ $___________

UNITED STATES OF AMERICA

STATE OF CALIFORNIA

COUNTY OF ORANGE
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO)

OF CITY OF ALISO VIEJO
2023 SPECIAL TAX REFUNDING BONDS

MATURITY
DATE
(SEPTEMBER 1)

PRINCIPAL
AMOUNT

INTEREST
RATE
DATED
DATE
CUSIP
NUMBER
$ ________, 2023
REGISTERED OWNER: CEDE & CO.

PRINCIPAL AMOUNT:

The City of Aliso Viejo (the “City”), for and on behalf of Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo, County of Orange, State of California (the “District”), for value received, hereby promises to pay, from the Special Taxes (as hereinafter defined) to be collected in the District or amounts in the funds and accounts held under the Agreement (as hereinafter defined) to the registered owner named above, or registered assigns, on the maturity date specified above, the principal amount specified above, and to pay interest on such principal amount from the Closing Date, or from the most recent interest payment date to which interest has been paid or duly provided for, semiannually on March 1 and September 1, commencing March 1, 2024 (“Interest Payment Dates”), at the interest rate specified above, until the principal amount hereof is paid or made available for payment. The principal of this Bond is 233
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payable by check to the registered owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at the Principal Office of The Bank of New York Mellon Trust Company, N.A. (the “Fiscal Agent”). Interest on this Bond shall be paid by check of the Fiscal Agent mailed by first class mail, postage prepaid, on each Interest Payment Date to the registered owner hereof as of the close of business on the fifteenth (15th) day of the month preceding the month in which the Interest Payment Date occurs (the “Record Date”) at such registered owner’s address as it appears on the registration books maintained by the Fiscal Agent; except that at the written request of the owner of at least $1,000,000 in aggregate principal amount of outstanding Bonds filed with the Fiscal Agent prior to the Record Date preceding any Interest Payment Date, interest on such Bonds shall be paid to such owner on such Interest Payment Date by wire transfer of immediately available funds to an account in the United States of America designated in such written request.

This Bond is one of a duly authorized issue of bonds approved by the qualified electors of the District pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Mello-Roos Act”), for the purpose of defeasing and refunding the Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) 2014 Special Tax Refunding Bonds, and is one of the series of Bonds designated “Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2023 Special Tax Refunding Bonds” (the “Bonds”), in the aggregate principal amount of $[________________]. The issuance of the Bonds and the terms and conditions thereof are provided for by a resolution adopted by the City Council of the City on October 4, 2023 (the “Resolution”), and the Fiscal Agent Agreement, dated as of December 1, 2023, between the City and the Fiscal Agent (the “Agreement”) and this reference incorporates the Resolution and the Agreement herein, and by acceptance hereof the owner of this Bond assents to the terms and conditions of the Resolution and the Agreement. The Resolution is adopted under, the Agreement is executed under, this Bond is issued under, and all are to be construed in accordance with, the laws of the State of California.

Pursuant to the Mello-Roos Act, the Agreement and the Resolution, the principal of and interest on the Bonds are payable from the annual levy of Special Taxes authorized under the Mello-Roos Act to be collected within the District (the “Special Taxes”) and are secured by a pledge of and lien upon the revenues derived therefrom and certain funds held by the Fiscal Agent pursuant to the Agreement.

Interest on this Bond shall be payable from the Interest Payment Date next preceding the date of its authentication, unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Closing Date; provided, however, that if at the time of authentication of this Bond, interest is in default hereon, this Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment hereon, or from the Closing Date, if no interest has previously been paid or made available for payment hereon. 234
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Any tax for the payment hereof shall be limited to the Special Taxes, except to the extent that provision for payment has been made by the City as may be permitted by law. The Bonds do not constitute obligations of the City for which the City is obligated to levy or pledge, or has levied or pledged, general or special taxation other than as described hereinabove.

The City has covenanted for the benefit of the owners of the Bonds as follows: (i) it will order, and cause to be commenced judicial foreclosure proceedings against properties in the District with delinquent Special Taxes in excess of $10,000 by October 1 following the close of the fiscal year in which such Special Taxes were due, and (ii) it will commence judicial foreclosure proceedings against all properties in the District with delinquent Special Taxes by the October 1 following the close of each fiscal year in which it receives Special Taxes in an amount which is less than ninety-five percent (95%) of the total Special Taxes levied, and diligently pursue to completion such foreclosure proceedings; provided that the City shall not be required to order, and cause to be commenced, judicial foreclosure proceedings against any such properties if the City determines that the amount of the delinquent Special Taxes for such properties is so small that the cost of foreclosure is not warranted and no deficiency in the Reserve Fund exists.

The Bonds maturing on or after September 1, 2031 may be redeemed at the option of the District, from any source of available funds, prior to maturity, on any date on or after September 1, 2030, as a whole, or in part from such maturities as are selected by the District, at the following redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates Redemption Price
September 1, 2030 through and including August 31, 2031 103% September 1, 2031 through and including August 31, 2032 102 September 1, 2032 through and including August 31, 2033 101 September 1, 2033 and any date thereafter 100
The Bonds are subject to mandatory redemption prior to their stated maturity dates on any Interest Payment Date, as selected by the Fiscal Agent, in integral multiples of $5,000, from moneys derived by the City from Special Tax Prepayments, at redemption prices (expressed as percentages of the principal amounts of the Bonds to be redeemed), together with accrued interest to the date of redemption, as follows:

Redemption Period Redemption Price
March 1, 2024 through and including March 1, 2031 103%
September 1, 2031 and March 1, 2032 102
September 1, 2032 and March 1, 2033 101
September 1, 2033 and any Interest Payment Date thereafter 100 Notice of redemption with respect to the Bonds to be redeemed shall be given to the registered owners thereof, in the manner and to the extent provided in the Agreement. 235
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[The outstanding Bonds maturing on September 1, [___] are subject to mandatory sinking fund redemption, in part, without premium, on September 1, [____] and on each September 1 thereafter to maturity as provided in the Agreement.]
From and after the date fixed for redemption, if funds available for the payment of the redemption prices of the Bonds selected for redemption shall have been deposited in the Principal Account in the Bond Fund, such Bonds shall cease to be entitled to any benefit under the Agreement other than the right to receive payment of the redemption price, and interest shall cease to accrue on the Bonds to be redeemed on the redemption date specified in the notice of redemption.

This Bond shall be registered in the name of the owner hereof, as to both principal and interest.

Each registration and transfer of registration of this Bond shall be entered by the Fiscal Agent in books kept by it for that purpose and authenticated by the manual signature of an authorized signatory of the Fiscal Agent upon the certificate of authentication endorsed hereon.

No transfer or exchange hereof shall be valid for any purpose unless made by the registered owner or his duly authorized attorney, by execution of the form of assignment endorsed hereon, and authenticated as herein provided, and the principal hereof and interest hereon shall be payable only to the registered owner or to such owner’s order.

The Fiscal Agent shall require the registered owner requesting transfer or exchange hereof to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange.

The Agreement and the rights and obligations of the City and the District thereunder may be modified or amended as set forth therein.

This Bond shall not become valid or obligatory for any purpose until the certificate of authentication hereon endorsed shall have been dated and manually signed on behalf of the Fiscal Agent.

IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond have existed, happened and been performed in due time, form and manner as required by law.
236
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IN WITNESS WHEREOF, the City Council of the City of Aliso Viejo, for Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) thereof, has caused this Bond to be dated as of [___], 2023, and to be signed by the facsimile signature of the Mayor of the City and countersigned by the facsimile signature of the City Clerk.

CITY OF ALISO VIEJO, for and on behalf of
COMMUNITY FACILITIES DISTRICT NO.
2005-01 (GLENWOOD AT ALISO VIEJO) OF

CITY OF ALISO VIEJO, COUNTY OF ORANGE,

STATE OF CALIFORNIA
By:

Mayor of the City of Aliso Viejo for
Community Facilities District No. 2005-01
(Glenwood at Aliso Viejo) thereof
ATTEST:

City Clerk of the City of Aliso Viejo
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CERTIFICATE OF AUTHENTICATION
This is one of the Bonds described in the within-defined Agreement.

Dated: [___], 2023 THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as Fiscal Agent
By:

Authorized Officer
238
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ASSIGNMENT
For value received the undersigned do(es) hereby sell, assign and transfer unto ______________________________________________________________________________ ______________________________________________________________________________ _____________________________________________________
(Name, Address and Tax Identification or Social Security Number of Assignee) the within Bond and do(es) hereby irrevocably constitute and appoint ______________________________________________________________ attorney, to transfer the same on the books of the Fiscal Agent, with full power of substitution in the premises.

Dated: _______________________
Note: Signature guarantee shall be made by a
guarantor institution participating in
the Securities Transfer Agents
Medallion Program or in such other
guarantee program acceptable to the
Fiscal Agent.

Note: The signature(s) on this Assignment
must correspond with the name(s) as
written on the face of the within Bond
in every particular, without alteration
or enlargement or any change
whatsoever.
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PRELIMINARY OFFICIAL STATEMENT DATED _____________, 2023

NEW ISSUE
[ RATING: S&P – “__”]
BOOK-ENTRY ONLY (See “RATING” herein)
In the opinion of Best Best & Krieger LLP, Riverside, California, Bond Counsel, subject, however, to certain qualifications described in this Official Statement, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and interest on the Bonds is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations; however, for tax years beginning after December 31, 2022, interest on the Bonds is taken into account in determining the annual adjusted financial statement income of certain corporations for the purpose of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, interest on the Bonds is exempt from State of California personal income taxes. See “TAX MATTERS,” herein. $____________
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO)

OF THE CITY OF ALISO VIEJO
2023 SPECIAL TAX REFUNDING BONDS
Dated: Date of Issuance Due: September 1, as shown on inside front cover The Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2023 Special Tax Refunding Bonds (the “Bonds”) are being issued by the City of Aliso Viejo (the “City”) for and on behalf of Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo (the “District”) pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (constituting Section 53311 et seq. of the California Government Code), and that certain Fiscal Agent Agreement (the “Agreement”), dated as of December 1, 2023, between the City, for and on behalf of the District, and The Bank of New York Mellon Trust Company, N.A. (the “Fiscal Agent”). The Bonds are special obligations of the District and are payable solely from revenues derived from certain annual Special Taxes (as defined herein) to be levied on certain taxable land within the District (less certain administrative expenses) and from certain other funds pledged under the Agreement, all as further described herein. The Special Taxes are to be levied according to the rate and method of apportionment approved by the City Council of the City and the qualified electors within the District. See “SECURITY FOR THE BONDS – Special Taxes.” The City Council of the City is the legislative body of the District.

The proceeds of the Bonds will primarily be used to (i) refund the outstanding Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2014 Special Tax Refunding Bonds (the “2014 Bonds”) on a current basis; (ii) provide for a debt service reserve fund policy for deposit in the Reserve Fund to fund 50% of the initial Reserve Requirement and fund a cash deposit for the remaining 50% of the initial Reserve Requirement; and (iii) pay costs of issuing the Bonds. See “REFUNDING PLAN” herein.

Interest due with respect to the Bonds is payable on March 1 and September 1 of each year, commencing March 1, 2024. Initial purchases of beneficial interests in the Bonds will be made in book-entry form and the Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company (“DTC”). Bond denominations are $5,000 and any integral multiple in excess thereof. Purchasers of beneficial interests in the Bonds will not receive certificates representing their interests in the Bonds and will not be paid directly by the Fiscal Agent. See “APPENDIX F – DTC and Book Entry System.”
The Bonds are subject to optional and mandatory redemption prior to their stated maturity, as described herein. See “THE BONDS – Redemption” herein.

To provide funds for payment of the Bonds in the event of a shortfall of revenues caused by delinquent Special Tax payments, the City will establish a Reserve Fund for the Bonds initially funded partially with Bond proceeds to fund 50% of the initial Reserve Requirement and partially with a reserve fund surety issued by [INSURER] (the “Insurer”) to fund the remaining 50% of the initial Reserve Requirement. If revenues from the Special Taxes are insufficient to pay the debt service on the Bonds, the moneys in the Reserve Fund are available to cover the deficiency. There is no assurance that funds will be available for this purpose and if, during the period of revenue shortfall, there are insufficient moneys in the Reserve Fund, there may be a delay in payment to the owners of the Bonds.

Neither the full faith and credit nor the taxing power of the City, the County of Orange, the State of California or any political subdivision thereof is pledged to the payment of the Bonds. Except for the Special Taxes, no other taxes are pledged to the payment of the Bonds. The Bonds are special tax obligations of the District payable solely from Special Tax Revenues and other amounts held under the Agreement as more fully described herein.

CERTAIN EVENTS COULD AFFECT THE ABILITY OF THE DISTRICT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WHEN DUE. THE PURCHASE OF THE BONDS INVOLVES SIGNIFICANT RISKS, AND THE BONDS ARE NOT SUITABLE INVESTMENTS FOR ALL INVESTORS. SEE THE SECTION OF THIS OFFICIAL STATEMENT ENTITLED “SPECIAL RISK FACTORS”

FOR A DISCUSSION OF CERTAIN RISK FACTORS THAT SHOULD BE CONSIDERED, IN ADDITION TO THE OTHER MATTERS SET FORTH HEREIN, IN EVALUATING THE INVESTMENT QUALITY OF THE BONDS.

This cover page contains certain information for quick reference only. It is not a complete summary of the terms of this Bond issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision with respect to the Bonds.

MATURITY SCHEDULE
(see Inside Cover Page)
The Bonds are being offered when, as and if issued by the City on behalf of the District, subject to the approval as to their legality by Best Best & Krieger LLP, Riverside, California, Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the City by Best Best & Krieger LLP, as City Attorney and Disclosure Counsel to the City and District, for the Underwriter by Kutak Rock LLP, as Underwriter’s Counsel. Delivery of the Bonds is expected to occur in New York, New York on or about December 5, 2023.

 Preliminary, subject to change.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. 240
[UNDERWRITER LOGO]
Dated: ______, 2023
241
MATURITY SCHEDULE*
(Base CUSIP†:[_____] )
$_________ Serial Bonds
Maturity Date
(September 1)
Principal
Amount
Interest
Rate Yield CUSIP†
$__________% Term Bonds Due September 1, _______ Yield _____% CUSIP†: ____

† Copyright 2023, CUSIP Global Services, and a registered trademark of the American Bankers Association. CUSIP data is provided by CUSIP Global Services, which is managed on behalf of American Bankers Association by FactSet Research Systems Inc. Neither the Underwriter, City, nor the District assumes any responsibility for the accuracy of the CUSIP data.  Preliminary, subject to change.
242

IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVERALLOT OR

EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE

BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENTS AT PRICES LOWER

THAN THE PUBLIC OFFERING PRICES STATED ON THE INSIDE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.

THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE.

This Official Statement speaks only as of its date, and the information contained herein is subject to change. This Official Statement and any continuing disclosure documents of the District are intended to be made available by the City on behalf of the District at the address indicated below. The District has undertaken to provide certain continuing disclosure pursuant to a Continuing Disclosure Agreement, as described herein. Copies of the resolutions and other documents relating to the issuance of the Bonds are available upon request, and upon payment to the City of a charge for copying, mailing and handling, from the office of the City Manager, City of Aliso Viejo, 12 Journey, Suite 100, Aliso Viejo, California 92656- 5335.

No dealer, broker, salesperson or other person has been authorized to give any information or to make any representations in connection with the offer or sale of the Bonds described herein, other than as contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by the District or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale.

FORWARD-LOOKING STATEMENTS
Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended.

Such statements are generally identifiable by the terminology used, such as “plan,” “expect,” “estimate,” “budget” or other similar words and include, but are not limited to, statements under the captions “THE DISTRICT.” The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

By placing an order for the Bonds with an Underwriter, you agree that if you are allocated Bonds, the Underwriter may disclose your identity to the City and District as an initial purchaser of the Bonds, unless you advise your sales representative otherwise.

The achievement of certain results or other expectations contained in such forward-looking statements involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. While the City on behalf of the District has agreed to provide certain on-going financial and operating data, except as specifically described under the caption “LEGAL MATTERS – Continuing Disclosure," the City on behalf of the District does not plan to issue any updates or revisions to those forward-looking statements if or when its expectations or events, conditions or circumstances on which such statements are based change.

The information set forth herein has been obtained from the City for the District, and other sources believed to be reliable, but the accuracy or completeness of such information is not guaranteed by, and should not be construed as a representation by, the City, District, or the Underwriter. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder will, under any circumstances, create any implication that there has been no change in the District since the date hereof. All summaries contained herein of any resolutions, the Agreement, or other documents are made subject to the provisions of such documents and do not purport to be complete statements of any or all such provisions. 243
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CITY OF ALISO VIEJO
City Council
Richard Hurt, Mayor
Mike Munzing, Mayor Pro-Tem
Tiffany Ackley, Council Member
Ross Chun, Council Member
Max Duncan, Council Member
City Staff
David Doyle, City Manager
Ann Eifert, Director of Financial Services/City Treasurer Mitzi Ortiz, City Clerk
Best Best & Krieger LLP, City Attorney

SPECIAL SERVICES
Bond Counsel and Disclosure Counsel
Best Best & Krieger LLP
Riverside, California
Special Tax Consultant and Dissemination Agent
Koppel & Gruber Public Finance
San Marcos, California
Municipal Advisor
Fieldman, Rolapp & Associates, Inc.

Irvine, California
Fiscal Agent/Escrow Agent
The Bank of New York Mellon Trust Company, N.A.

Los Angeles, California
Verification Agent
Robert Thomas, CPA, LLC
Minneapolis, Minnesota
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TABLE OF CONTENTS
i-
INTRODUCTION...................................................1 General...............................................................1 Issuing Authority ...............................................1 Application of Proceeds.....................................1 The District ........................................................1 Security for the Bonds .......................................3 Limited Liability................................................4 Description of the Bonds ...................................4 Tax Matters........................................................4 Continuing Disclosure .......................................5 Bond Owners’ Risks ..........................................5 Professionals Involved in the Offering ..............5
Forward-Looking Statements.............................5 Additional Information ......................................6 REFUNDING PLAN ..............................................6 Sources and Uses of Bond Proceeds..................7
Annual Debt Service of Bonds...........................8 THE BONDS ..........................................................9 Authority for Issuance........................................9 Description of the Bonds ...................................9 Redemption........................................................9 Selection of Bonds for Redemption.................10
Notice of Redemption......................................11 Effect of Redemption.......................................12 Transfer or Exchange of Bonds .......................12 SECURITY FOR THE BONDS ...........................12
Limited Obligations .........................................12 Special Taxes ...................................................13 Reserve Fund ...................................................15 Covenant for Superior Court Foreclosure........16
Limited Liability..............................................16 THE DISTRICT....................................................17 The Development.............................................17 Authorization ...................................................18 Rate and Method of Apportionment ................18
Historical Levies and Tax Delinquencies ........21
Estimated Direct and Overlapping Debt..........22
Property Assessed Values................................24 Estimated Total Valuation of All Taxable
Property Within the District.....................26
Top Taxpayers .................................................27 SPECIAL RISK FACTORS .................................28 Risks of Real Estate Secured Investments
Generally..................................................28 Limited Obligations .........................................28 Insufficiency of Special Taxes.........................28 Property Values................................................29 Special Tax Delinquencies.... Error! Bookmark
not defined.

Reduction of Assessed Values......................... 29 Depletion of Reserve Fund.............................. 30 Insufficiency of Foreclosure Sale Proceeds..... 30
Special Tax Delinquencies .............................. 31 Payment of Special Taxes ............................... 31 Bankruptcy ...................................................... 32 Payments by FDIC and Other Federal
Agencies .................................................. 32 Natural Disasters ............................................. 34 Hazardous Substances ..................................... 34 Parity Taxes and Special Assessments ............ 35
Disclosures to Future Purchasers..................... 35 Non-Cash Payments of Special Taxes............. 36
Payment of the Special Tax is not a Personal
Obligation of the Owners ........................ 36
Limitations on Remedies................................. 36 Limited Secondary Market.............................. 37 Constitutional Amendment.............................. 37 Future Initiatives.............................................. 37 Loss of Tax Exemption ................................... 37 Prepayment Risk.............................................. 38 TAX MATTERS .................................................. 39 LEGAL MATTERS ............................................. 40 Continuing Disclosure..................................... 40 Absence of Litigation ...................................... 40 Legal Matters Incident to the Issuance of the
Bonds....................................................... 40 Rating .............................................................. 41 Underwriting ................................................... 41 Miscellaneous.................................................. 42 APPENDIX A – SUMMARY OF THE
AGREEMENT...............................................A-1 APPENDIX B – PROPOSED FORM OF
OPINION OF BOND COUNSEL ................. B-1
APPENDIX C – RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAX ..... C-1
APPENDIX D – THE ECONOMY OF THE
CITY OF ALISO VIEJO...............................D-1
APPENDIX E – FORM OF CONTINUING
DISCLOSURE AGREEMENT ..................... E-1
APPENDIX F – DTC AND THE BOOK
ENTRY SYSTEM ..........................................F-1 247

LOCATION MAP
248

AERIAL PHOTO
249
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1 OFFICIAL STATEMENT
$____________
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO)

OF THE CITY OF ALISO VIEJO
2023 SPECIAL TAX REFUNDING BONDS

INTRODUCTION
This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in this entire Official Statement, including the cover page and appendices hereto, and the documents summarized or otherwise described herein.

A full review should be made of this entire Official Statement and such documents prior to making an investment in the Bonds. The sale and delivery of the Bonds to potential investors is made only by means of the entire Official Statement.

General
This Official Statement, including the appendices hereto, sets forth certain information concerning the issuance by the City of Aliso Viejo (the “City”) for and on behalf of Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo (the “District”) of the $__________ * aggregate principal amount of the Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2023 Special Tax Refunding Bonds (the “Bonds”). The Bonds are being issued by the City, for and on behalf of the District, under the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (constituting Section 53311 et seq. of the California Government Code) (the “Act”), and that certain Fiscal Agent Agreement, dated as of December 1, 2023 (the “Agreement”), by and between the City for and on behalf of the District and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent (the “Fiscal Agent”). Capitalized terms used in this Official Statement and not otherwise defined herein have the meanings given such terms in the Agreement, some of which are set forth in Appendix A hereto.

Issuing Authority
The District was established by the City Council of the City (the “City Council”) pursuant to proceedings under the Act on April 20, 2005. See “THE DISTRICT – Authorization” herein. The Bonds were authorized to be issued by a resolution adopted by the City Council on October 4, 2023 (the “Resolution of Issuance”). The Bonds are being issued pursuant to the Act, the Resolution of Issuance, and the Agreement. See “THE BONDS – Authority for Issuance.”
Application of Proceeds
The net proceeds of the Bonds will be used to (i) refinance the outstanding Community Facilities District No. 2005-01 (Glenwood at Aliso Viejo) of the City of Aliso Viejo 2014 Special Tax Refunding Bonds (the “2014 Bonds”) on a current basis and cause the early redemption thereof on March 1, 2024; (ii) provide for a debt service reserve fund policy (the “Reserve Fund Policy”) for deposit in the Reserve Fund to fund 50% of the initial Reserve Requirement and fund a cash deposit for the remaining 50% of the initial Reserve Requirement; and (iii) pay costs of issuing the Bonds. See “REFUNDING PLAN – Sources and Uses of Bond Proceeds” herein.

The District
District Development. The City, which has a population of approximately 50,000 and is approximately 7 square miles, is located in Orange County (the “County”). The City is located in Southern California, approximately 45 miles from downtown Los Angeles, 70 miles north of San Diego, and 4 miles northeast of the

 Preliminary, subject to change.
251
2 Pacific Ocean. Neighboring communities include Laguna Hills, Laguna Niguel, Laguna Beach, and Laguna Woods.

The District is located in the City at the northeast corner of Glenwood Drive and Aliso Creek Road. The District consists of approximately 104 gross acres and is split into two zones. The District includes 502 single family residential units, including 455 taxable units of residential property and 43 affordable units in Zone 1 and 4 taxable units of residential property in Zone 2. The affordable units are not subject to the special tax. The entire residential development was complete as of March 1, 2013. The balance of the acreage in the District represents parcels that are exempt from the levy of the Special Tax and includes open space, public rights-of-way, a City Conference Center, an aquatic center, a public park, and a portion of the Aliso Viejo Golf Course, a privately owned golf course. The original developer of property within the District was Shea Limited Partnership (the “Developer”), an affiliate of Shea Family of Companies; all parcels are currently owned by individual homeowners. The Bonds are secured and payable solely from Special Tax Revenues of the District, including foreclosure proceeds obtained from foreclosure and sale of Taxable Property in the District.

Formation Proceedings. The District has been formed by the City pursuant to the Act.

The Act was enacted by the California legislature to provide an alternative method of financing certain public capital facilities and services, especially in developing areas of the State of California (the “State”). Any local agency (as defined in the Act) may establish a community facilities district to provide for and finance the cost of eligible public facilities and services. Generally, the legislative body of the local agency which forms a community facilities district acts on behalf of such district as its legislative body. Subject to approval by two- thirds of the votes cast at an election and compliance with the other provisions of the Act, a legislative body of a local agency may issue bonds for a community facilities district and may levy and collect a special tax within such district to repay such indebtedness. The City Council acts as the legislative body of the District.

Pursuant to the Act, the City Council adopted the necessary resolutions stating its intent to establish the District, to authorize the levy of special taxes on taxable property within the boundaries of the District, and to incur bonded indebtedness within the District. The Bonds are secured and payable solely from Special Tax Revenues (as defined herein) of the District, including foreclosure proceeds obtained from foreclosure and sale of property located in the District. Following public hearings conducted pursuant to the provisions of the Act, the City Council adopted resolutions establishing the District and calling special elections to submit the levy of the Special Taxes and the incurring of bonded indebtedness to the qualified voters of the District. On April 20, 2005, at an election held pursuant to the Act, the then current landowners who comprised the qualified voters of the District authorized the District to incur bonded indebtedness in the aggregate principal amount not to exceed $37,500,000 to be secured by the levy of Special Taxes on taxable property within the District. On that same date, the landowners within the District approved the rate and method of apportionment of the Special Taxes on land within the District to pay the principal of and interest on the bonds of the District (the “Original Rate and Method”).

On November 1, 2006, at a subsequent election held pursuant to the Act, the landowners who comprised the qualified electors of the District approved the levy of a special tax within the District pursuant to a Modified Rate and Method of Apportionment of Special Tax (the “Modified Rate and Method,” and together with the Original Rate and Method, the “Rate and Method”). The Rate and Method is set forth in Appendix C hereto. The facilities authorized to be financed by the District are referenced herein as the “Facilities.” Property Value.

The value of the land within the District is a critical factor in determining the investment quality of the Bonds. If a property owner is delinquent in the payment of the Special Tax, the District’s only remedy is to commence foreclosure proceedings in an attempt to obtain funds to pay the Special Tax. See “THE DISTRICT – Property Assessed Values” for a discussion of the development status of property in the District and the assessed value (and value-to-lien ratios) of property within the District. No appraisal of the property within the District has been undertaken by the City in connection with the issuance of the Bonds.

The Fiscal Year 2023-24 assessed value of the property within the District subject to the levy of the Special Tax is $488,007,311. See “THE DISTRICT - Property Assessed Values” below. Within the District there 252
3 are other liens and overlapping indebtedness. See “THE DISTRICT – Estimated Direct and Overlapping Debt.” The estimated assessed value to lien ratio for the property within the District subject to the levy of the Special Tax in Fiscal Year 2023-24 is 21.12 * to 1 based on the principal amount of the Bonds and other overlapping debt secured by ad valorem taxes, special taxes and assessments on such property. Total direct and overlapping tax and assessment debt on property in the District as of August 1, 2023 is $23,102,475, including the Bonds hereby offered. See “THE DISTRICT – Estimated Direct and Overlapping Debt” for a discussion of additional debt secured by liens on the real property in the District on a parity with the Bonds.

Security for the Bonds
Under the Agreement, the Bonds are payable from a portion of the Special Tax levied on taxable property within the District. See “SECURITY FOR THE BONDS – Special Taxes” herein. “Special Tax” is defined in the Agreement and is used in this Official Statement, to mean the special taxes levied by the City Council on parcels of taxable property within the District pursuant to the Act, the Rate and Method, and the Agreement.

Under the Agreement, the City on behalf of the District has pledged to repay the Bonds from Special Tax Revenues and certain funds pledged thereto pursuant to the Agreement. “Special Tax Revenues” is defined in the Agreement to mean the proceeds of the Special Taxes received by the City, including any scheduled payments, interest and penalties thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes in the amount of said lien and interest and penalties thereon. The Special Taxes levied pursuant to the Rate and Method increase by two percent (2%) annually. See “APPENDIX C – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX” and “APPENDIX A – SUMMARY OF THE AGREEMENT” herein.

Under the Agreement, the City on behalf of the District has agreed to levy the Special Tax, and to repay the Bonds from the Special Tax Revenues (except for the amount of $42,007 which shall be deposited in the Administrative Expense Fund for Fiscal Year 2023-24, and which amount shall be escalated by 2% each fiscal year thereafter during the term of the Bonds, the “Priority Administrative Expense Allocation”) and from certain amounts on deposit in the Special Tax Prepayments Account, the Bond Fund and the Reserve Fund established under the Agreement. See “APPENDIX A – SUMMARY OF THE AGREEMENT.” A portion of the proceeds of the Bonds and the Reserve Fund Policy will be deposited in the Reserve Fund to the extent necessary to make the amount on deposit therein equal to the Reserve Requirement. The moneys in the Reserve Fund will be used for, among other purposes permitted by the Agreement, payment of the principal of and interest on the Bonds in the event that moneys in the Bond Fund are insufficient therefor. See “SECURITY FOR THE BONDS – Reserve Fund.”
Foreclosure Proceeds. The City, on behalf of the District, has covenanted for the benefit of the owners of the Bonds that it will (i) order, and cause to be commenced, judicial foreclosure proceedings against properties with delinquent Special Taxes in excess of $10,000 by the October 1 following the close of the fiscal year in which such Special Taxes were due; and (ii) commence judicial foreclosure proceedings against all properties with delinquent Special Taxes by the October 1 following the close of each fiscal year in which it receives Special Taxes in an amount which is less than ninety-five percent (95%) of the total Special Taxes levied, and diligently pursue to completion such foreclosure proceedings; provided, however, the City shall not be required to order, and cause judicial foreclosure proceedings to be commenced against delinquent properties as long as no deficiency in the Reserve Fund exists (or is projected to exist in order to meet the next upcoming debt service payment) and the City determines that the cost of pursuing such foreclosure is greater than the outstanding delinquency. See “SECURITY FOR THE BONDS” herein. There is no assurance that the taxable property within the District can be sold for the values described herein, or for a price sufficient to pay the principal of and interest on the Bonds in the event of a default in payment of Special Taxes by the current or future landowners within the District. See “SPECIAL RISK FACTORS – Property Values” herein.

EXCEPT FOR THE SPECIAL TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF

THE CITY NOR GENERAL OBLIGATIONS OF THE DISTRICT, BUT ARE SPECIAL OBLIGATIONS

* Preliminary; subject to change.
253
4 OF THE CITY PAYABLE SOLELY FROM SPECIAL TAX REVENUES AND CERTAIN AMOUNTS HELD UNDER THE AGREEMENT AS MORE FULLY DESCRIBED HEREIN.

Limited Liability
Although the unpaid Special Taxes constitute a lien on the taxable real property within the District, they do not constitute a personal indebtedness of any landowner within the District, the Developer, or any future property owner in the District. There is no assurance that the current owners of property within the District, or any future property owners within the District, will be financially able to pay the Special Taxes or that they will pay the Special Taxes even though financially able to do so.

THE BONDS ARE PAYABLE SOLELY FROM THE PROCEEDS OF THE SPECIAL TAX TO BE

LEVIED ANNUALLY ON THE LAND WITHIN THE DISTRICT (EXCEPT FOR THE PRIORITY

ADMINISTRATIVE EXPENSE ALLOCATION) AND AMOUNTS IN CERTAIN FUNDS ESTABLISHED UNDER THE AGREEMENT. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF

THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF (OTHER THAN OF THE

DISTRICT, TO THE LIMITED EXTENT SET FORTH IN THE AGREEMENT) IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. THE BONDS

ARE NOT SECURED BY A LEGAL OR EQUITABLE PLEDGE OF OR CHARGE, LIEN OR

ENCUMBRANCE UPON ANY OF THE PROPERTY OR REVENUES OF THE CITY, AND THE PAYMENT

OF THE INTEREST ON OR PRINCIPAL OF OR REDEMPTION PREMIUMS, IF ANY, ON THE BONDS IS NOT A GENERAL DEBT, LIABILITY OR OBLIGATION OF THE CITY OR THE DISTRICT.

Description of the Bonds
The Bonds are dated their date of delivery and mature in the amounts and in the years, and bear interest at the rates set forth on the inside cover page of this Official Statement. Interest on the Bonds will be payable on each March 1 and September 1 each year, beginning March 1, 2024.

The Bonds will be issued and delivered as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (“DTC”), and will be available to actual purchasers of the Bonds (the “Beneficial Owners”) in denominations of $5,000 or any integral multiple in excess thereof, under the book-entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants as described herein. Beneficial Owners will not be entitled to receive physical delivery of the Bonds. In the event that the book-entry-only system described herein is no longer used with respect to the Bonds, the Bonds will be registered and transferred in accordance with the Agreement. See “THE BONDS – Description of the Bonds” and “APPENDIX F – DTC AND THE BOOK ENTRY SYSTEM” herein.

Principal of, premium, if any, and interest on the Bonds are payable by the Fiscal Agent to DTC.

Disbursement of such payments to DTC Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants. In the event that the book-entry- only system is no longer used with respect to the Bonds, the Beneficial Owners will become the registered owners of the Bonds and will be paid principal and interest by the Fiscal Agent, all as described herein. See “THE BONDS – Description of the Bonds” and “APPENDIX F – DTC AND THE BOOK ENTRY SYSTEM” herein. So long as the Bonds are in book-entry-only form, all references in the Official Statement to the owners or holders of the Bonds shall mean DTC or its nominee and not the Beneficial Owners of the Bonds.

The Bonds are subject to optional redemption and mandatory redemption as described herein. For more complete descriptions of the Bonds and the Agreement pursuant to which they are being issued and delivered, see “THE BONDS” and “APPENDIX A – SUMMARY OF THE AGREEMENT” herein.

Tax Matters
In the opinion of Bond Counsel, based on an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the Bonds is 254
5 excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of federal alternative minimum tax imposed on individuals and corporations, although Bond Counsel observes that such interest is included in annual adjusted financial statement income of certain corporations for the purpose of computing the alternative minimum tax imposed on certain corporations. Bond Counsel expresses no opinion regarding any other federal or state income tax consequences relating to the ownership or disposition of, or the accrual or receipt of interest on, the Bonds.

See “TAX MATTERS” herein.

Continuing Disclosure
The City on behalf of the District has, with Koppel & Gruber Public Finance, as Dissemination Agent, entered into a Continuing Disclosure Agreement whereby the City on behalf of the District has covenanted for the benefit of the Owners of the Bonds to provide to the Electronic Municipal Market Access System of the Municipal Securities Rulemaking Board (“EMMA”), which can be found at www.emma.msrb.org (none of the information on such website is incorporated by reference herein), certain financial information and operating data relating to the District by not later than nine months after the end of each fiscal year (the “Annual Reports”), and to provide notices of the occurrence of certain listed events. The Annual Reports and notices of listed events will be filed by the Dissemination Agent on behalf of the District, with EMMA. The specific nature of the information to be contained in the Annual Reports or the notices of listed events is set forth in “APPENDIX E – FORM OF CONTINUING DISCLOSURE AGREEMENT.” See also “LEGAL MATTERS - Continuing Disclosure.” Bond Owners’ Risks
Certain events could affect the timely repayment of the principal of and interest on the Bonds when due.

See “SPECIAL RISK FACTORS” herein for a discussion of certain factors which should be considered, in addition to other matters set forth herein, in evaluating an investment in the Bonds. The purchase of the Bonds involves significant risks, and the Bonds may not be appropriate investments for some investors.

Professionals Involved in the Offering
The Bank of New York Mellon Trust Company, N.A., Los Angeles, California, will act as Fiscal Agent under the Agreement. Piper Sandler & Co. is the Underwriter of the Bonds. The proceedings of the City Council in connection with the issuance, sale, and delivery of the Bonds are subject to the approval of Best Best & Krieger LLP, Riverside, California, Bond Counsel. Koppel & Gruber Public Finance, San Marcos, California is acting as Special Tax Consultant to the City and District and will act as dissemination agent under the Continuing Disclosure Agreement of the City. Certain legal matters will be passed on for the City and the District by Best Best & Krieger LLP as City Attorney and Disclosure Counsel. Kutak Rock LLP, Irvine, California, is acting as Underwriter’s Counsel. Fieldman, Rolapp & Associates, Inc., Irvine, California, is acting as Municipal Advisor to the City and District.

Forward-Looking Statements
Certain statements included or incorporated by reference in this Official Statement constitute “forward- looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget” or other similar words. Such forward-looking statements include, but are not limited to, certain statements contained in the information under the caption “THE DISTRICT.”

THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN

SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,

UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE

OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, 255
6 PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE CITY DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT.

Additional Information
Brief descriptions of the Bonds, the Agreement, the Continuing Disclosure Agreement, the security for the Bonds, the District, the development of the property in the District and certain other documents and information are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. Any references to documents herein are qualified by reference to the complete text thereof. Capitalized terms used in this Official Statement and not otherwise defined herein have the meanings given them in the Agreement, some of which are set forth in “APPENDIX A – SUMMARY OF THE AGREEMENT.” Copies of documents referenced herein may be obtained upon written request and payment of the cost of mailing and duplication from the office of the City Clerk of the City, 12 Journey, Suite 100, Aliso Viejo, California 92656-5335.

REFUNDING PLAN
A portion of the proceeds of the Bonds will be used, together with certain existing funds, to provide for the defeasance and refunding of the 2014 Bonds. Money will be deposited into the Principal Account of the Bond Fund for the 2014 Bonds pursuant to Irrevocable Investment Instructions, dated as of December 1, 2023, between the City and The Bank of New York Mellon Trust Company, N.A., as Escrow Bank (the “Investment Instructions”).

Moneys used to redeem the 2014 Bonds are expected to be held uninvested or invested in U.S. governmental obligations or other non-callable obligations. The amount deposited in the Principal Account of the Bond Fund for the 2014 Bonds will be sufficient to pay when due the principal of and interest and premium, if any, on the 2014 Bonds to and including March 1, 2024, and to redeem the 2014 Bonds on March 1, 2024.

As a result of the deposit and application of funds as provided in the Investment Instructions, the obligation to make payments of the principal of, premium, if any, and interest on, as the case may be, the 2014 Bonds will be defeased on such date of deposit. Neither the moneys in the Principal Account of the Bond Fund for the 2014 Bonds nor the interest thereon will be available for the payment of the Bonds. 256
7 Sources and Uses of Bond Proceeds
The following table sets forth the expected sources and uses of Bond proceeds and prior funds being used to effectuate the refunding and redemption of the 2014 Bonds:

Sources of Funds
Principal Amount of Bonds $
Plus Original Issue Premium
Plus Funds Related to 2014 Bonds
TOTAL SOURCES $
Uses of Funds $
Costs of Issuance Fund(1)
Reserve Fund(2)
Underwriter’s Discount
Redemption of 2014 Bonds
TOTAL USES $
_____________________________
(1) To be used to pay costs of issuance of the Bonds, including Bond Counsel fees, Disclosure Counsel fees, initial Fiscal Agent fees, Municipal Advisor fees, Special Tax Consultant fees, Rating Agency fee, Official Statement printing, Reserve Fund Policy fees, and other costs of issuance.
(2) The initial Reserve Requirement is comprised of Bond proceeds in the amount of $[___] with the balance satisfied with the Reserve Fund Policy. See “SECURITY FOR THE BONDS – Reserve Fund.” 257
8 Annual Debt Service of Bonds
The table below sets forth the scheduled annual debt service payments on the Bonds, assuming no optional redemption of the Bonds but including mandatory sinking fund redemptions.

Year Ending
(September 1) Principal Interest Total
________________________
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9 THE BONDS
Authority for Issuance
The District was established and bonded indebtedness within the District in an amount not to exceed $37,500,000 was authorized pursuant to the provisions of the Act. The Bonds will be issued pursuant to the Act, a Resolution of Issuance, and the Agreement. The Bonds are secured under the Agreement and are payable from Special Tax Revenues (except for the Priority Administrative Expense Allocation) and from funds and accounts held under the Agreement, excluding the Improvement Fund and all subaccounts therein, the Administrative Expense Fund, and the Rebate Fund. See “APPENDIX A – SUMMARY OF AGREEMENT” herein.

Description of the Bonds
The Bonds are being issued in the aggregate principal amount of $[___], are dated their date of delivery, and will mature in the amounts and in the years and bear interest at the rates set forth on the inside cover page of this Official Statement.

The Bonds will be issued without coupons in fully registered form, in the name of Cede & Co., as nominee for DTC, as registered owner of all the Bonds. The Bonds will be available to ultimate purchasers in denominations of $5,000 or any integral multiple thereof, under the book-entry system maintained by DTC.

Ultimate purchasers of Bonds will not receive physical certificates representing their interest in the Bonds. So long as the Bonds are registered in the name of Cede & Co., as nominee of DTC, references herein to the owners shall mean Cede & Co., and shall not mean the purchasers or Beneficial Owners of the Bonds. See “APPENDIX F – DTC AND THE BOOK ENTRY SYSTEM.”
So long as the Bonds are held in book-entry-only form, principal of, premium, if any, and interest on the Bonds will be paid directly to DTC for distribution to the Beneficial Owners of the Bonds in accordance with the procedures adopted by DTC. See “APPENDIX F – DTC AND THE BOOK ENTRY SYSTEM.” The Bonds will mature on September 1, in the principal amounts and years, and bearing rates of interest, as shown on the inside cover of this Official Statement.

Interest on the Bonds will be payable semiannually on September 1 and March 1 of each year, commencing March 1, 2024 (each, an “Interest Payment Date”) and will be computed on the basis of a 360-day year comprised of twelve 30-day months. Each Bond will bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication; or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date; or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Closing Date; provided, however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon or from the Closing Date, if no interest has previously been paid or made available for payment thereon.

Payments of the principal of, premium, if any, and interest on the Bonds will be made directly to DTC, or its nominee, Cede & Co., by the Fiscal Agent, so long as DTC or Cede & Co. is the registered owner of the Bonds.

Disbursements of such payments to Participants is the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of Participants and Indirect Participants, as more fully described herein. See “APPENDIX F – DTC AND THE BOOK ENTRY SYSTEM.” Redemption*
Optional Redemption. The Bonds maturing on or before September 1, 2030 are not subject to optional call and redemption prior to maturity. The Bonds maturing on or after September 1, 2031 may be redeemed at

* Preliminary; subject to change.
259
10 the option of the City, from any source of available funds, prior to maturity, on any date on or after September 1, 2030, as a whole, or in part from such maturities as are selected by the City, at the following redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:

Redemption Dates Redemption Price
September 1, 2030 through and including August 31, 2031 103% September 1, 2031 through and including August 31, 2032 102 September 1, 2032 through and including August 31, 2033 101 September 1, 2033 and any date thereafter 100
Mandatory Redemption from Special Tax Prepayments. The Bonds are subject to mandatory redemption prior to their stated maturity dates on any Interest Payment Date, as selected by the City among maturities (and by lot within any one maturity), in integral multiples of $5,000, from moneys derived by the City from Special Tax Prepayments, at redemption prices (expressed as percentages of the principal amounts of the Bonds to be redeemed), together with accrued interest to the date of redemption, as follows:

Redemption Dates Redemption Price
March 1, 2024 through and including March 1, 2031 103%
September 1, 2031 and March 1, 2032 102
September 1, 2032 and March 1, 2033 101
September 1, 2033 and any Interest Payment Date thereafter 100 Mandatory Sinking Fund Redemption . The outstanding Bonds maturing on September 1, _____ are subject to mandatory sinking fund redemption, in part, on September 1, ____, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date of redemption, without premium, and from sinking payments as follows:

BONDS MATURING SEPTEMBER 1, 20__
Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
The amounts in the foregoing schedules shall be reduced by the City pro rata among redemption dates, in order to maintain substantially level debt service, as a result of any prior partial optional redemption of the Bonds or mandatory redemption of the Bonds from the prepayment of Special Taxes.

Purchase of Bonds. In lieu of payment at maturity or redemption, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of outstanding Bonds, upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at a public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event will Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase. In such event, the City shall, as may be appropriate, provide to the Fiscal Agent a revised maturity schedule or a revised mandatory sinking fund schedule for the Bonds, or both.

Selection of Bonds for Redemption
If less than all the Bonds outstanding are to be redeemed, the portion of any Bond of a denomination of more than $5,000 to be redeemed shall be in the principal amount of $5,000 or a multiple thereof, and, in selecting portions of such Bonds for redemption, the Fiscal Agent shall treat each such Bond as representing the number of 260
11 Bonds of $5,000 denomination which is obtained by dividing the principal amount of such Bond to be redeemed in part by $5,000.

Whenever provision is made in the Agreement for the redemption of less than all of the Bonds of a maturity or any given portion thereof, the Fiscal Agent shall select the Bonds of such maturity to be redeemed, from all Bonds of such maturity or such given portion thereof not previously called for redemption, by lot within a maturity in any manner which the Fiscal Agent in its sole discretion shall deem appropriate.

Upon surrender of Bonds redeemed in part only, the City will execute and the Fiscal Agent will authenticate and deliver to the Bondowner, at the expense of the District, a new Bond or Bonds, of the same maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds.

Notice of Redemption
Redemption Procedure by Fiscal Agent. The Fiscal Agent shall cause notice of any redemption to be (a) mailed by first class mail, postage prepaid, or (b) electronically delivered at least thirty (30) days but not more than sixty (60) days prior to the date fixed for redemption, to the Securities Depositories and to one or more Information Services selected by an Authorized Officer, and to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books maintained by the Fiscal Agent at its Principal Office; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds. The Fiscal Agent shall also cause notice of any redemption to be mailed, in such manner and within such time, to the Underwriter.

Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.

The City shall have the right to rescind any notice of redemption prior to maturity on or prior to the date fixed for such redemption prior to maturity, in which case such redemption shall be cancelled and annulled and such cancellation shall not constitute an event of default under the Agreement. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date so fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default hereunder. The City and the Fiscal Agent shall have no liability to the Owners or any other party related to or arising from such rescission or cancellation of redemption. The Fiscal Agent shall mail notice of such rescission or cancellation of redemption in the same manner as the original notice of redemption.

If less than all the Bonds Outstanding are to be redeemed, the portion of any Bond of a denomination of more than $5,000 to be redeemed shall be in the principal amount of $5,000 or a multiple thereof, and, in selecting portions of such Bonds for redemption, the Fiscal Agent shall treat each such Bond as representing the number of Bonds of $5,000 denomination which is obtained by dividing the principal amount of such Bond to be redeemed in part by $5,000.
261
12 Whenever provision is made for the redemption of less than all of the Bonds of a maturity or any given portion thereof, the Fiscal Agent shall select the Bonds of such maturity to be redeemed, from all Bonds of such maturity or such given portion thereof not previously called for redemption, by lot within a maturity in any manner which the Fiscal Agent in its sole discretion shall deem appropriate, subject to the procedures of the Depository.

Effect of Redemption
From and after the date fixed for redemption, if funds available for the payment of the redemption prices of the Bonds called for redemption have been deposited in the Bond Fund, such Bonds will cease to be entitled to any benefit under the Agreement other than the right to receive payment of the redemption price, and interest will cease to accrue on the Bonds to be redeemed on the redemption date specified in the notice of redemption. All Bonds redeemed and purchased by the Fiscal Agent pursuant to the Agreement will be cancelled by the Fiscal Agent.

Transfer or Exchange of Bonds
So long as the Bonds are registered in the name of Cede & Co., as nominee of DTC, transfers and exchanges of Bonds shall be made in accordance with DTC procedures. See “APPENDIX F – DTC AND THE BOOK ENTRY SYSTEM.” If the book-entry-only system for the Bonds is ever discontinued, any Bond may, in accordance with its terms, be transferred or exchanged by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent. Whenever any Bond or Bonds shall be surrendered for transfer or exchange, the City shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The Fiscal Agent shall collect from the Bondowner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer or exchange.

No transfers or exchanges of Bonds shall be required to be made (i) within 15 days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.

SECURITY FOR THE BONDS
Limited Obligations
The Bonds are special, limited obligations of the District secured by a pledge upon all of the Special Tax Revenues (except for the Priority Administrative Expense Allocation) and all moneys on deposit in the Special Tax Prepayments Account, the Bond Fund, and the Reserve Fund (including the investment earnings thereon), and from no other sources.
“Special Tax Revenues” are defined in the Agreement to mean the proceeds of the Special Taxes received by the City, including any scheduled payments, interest and penalties thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes in the amount of said lien and interest and penalties thereon.

In the event that the Special Tax Revenues are not received when due, the only sources of funds available to pay the debt service on the Bonds are amounts held by the Fiscal Agent, including amounts held in the Reserve Fund, for the exclusive benefit of the Bondowners.

NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE

COUNTY OF ORANGE, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION 262
13 THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. EXCEPT FOR THE SPECIAL TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS

ARE NOT GENERAL OBLIGATIONS OF THE CITY NOR GENERAL OBLIGATIONS OF THE

DISTRICT BUT ARE SPECIAL OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM

SPECIAL TAX REVENUES AND OTHER AMOUNTS PLEDGED UNDER THE AGREEMENT AS MORE FULLY DESCRIBED HEREIN.

Special Taxes
Authorization and Pledge. In accordance with the provisions of the Act, the City Council established the District on April 20, 2005, to finance the construction and acquisition of certain public capital improvements. On that same date, at an election held pursuant to the Act, the landowners who comprised the qualified voters of the District authorized the District to incur bonded indebtedness in the aggregate principal amount not to exceed $37,500,000 to be secured by the levy of Special Taxes on taxable property within the District pursuant to the Original Rate and Method. A Notice of Special Tax Lien was recorded in the Office of the Recorder of the County of Orange on April 29, 2005 as Document No. 2005-000329076. On November 1, 2006, at a subsequent election held pursuant to the Act, the landowners who comprised the qualified electors of the District approved the levy of the Special Tax within the District pursuant to the Modified Rate and Method. An Amendment to Notice of Special Tax Lien was recorded in the Office of the Recorder of the County of Orange on November 13, 2006 as Document No. 2006-000763701. See “APPENDIX C – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX ” attached hereto for the complete text of the Rate and Method.

The Bonds are secured by a pledge of and lien upon (which shall be effected in the manner and to the extent provided in the Agreement) all of the Special Tax Revenues (except the Priority Administrative Expense Allocation which will be deposited in the Administrative Expense Fund for each fiscal year pursuant to the Agreement) and all moneys on deposit in the Special Tax Prepayments Account, the Bond Fund, and the Reserve Fund. The Bonds that may be issued shall be equally secured by a pledge of and lien upon such Special Tax Revenues and such moneys without priority for number, date of Bond, date of execution or date of delivery; and the payment of the interest on and principal of the Bonds and any premium upon the redemption of any thereof shall be and is secured by a pledge of and lien upon such Special Tax Revenues and such moneys. Such Special Tax Revenues and all moneys deposited into such funds are dedicated in their entirety to the payment of the principal of and interest and any premium on the Bonds, as provided in the Agreement and in the Act, until all of the Bonds have been paid and retired or until moneys or Defeasance Securities have been set aside irrevocably for that purpose in accordance with the Agreement.

The Bonds are not secured by any amounts on deposit in the Administrative Expense Fund or the Rebate Fund established under the Agreement. Any facilities financed with the proceeds of the Bonds are not in any way pledged to pay debt service on the Bonds.

In the Agreement, the City has agreed to effect the levy of the Special Taxes each fiscal year in accordance with the Act by August 10 of each year (or such later date as may be authorized by the Act or any amendment thereof) that the Bonds are outstanding, such that the computation of the levy is complete before the final date on which the County Auditor-Controller will accept the transmission of the Special Tax amounts for the parcels within the District for inclusion on the tax roll for the fiscal year then beginning. Upon the completion of the computation of the amounts of the levy of the Special Taxes, the City shall prepare or cause to be prepared, and shall transmit to the Auditor-Controller, such data as the Auditor-Controller requires to include the levy of the Special Taxes on the tax roll.

The City on behalf of the District shall fix and levy the amount of Special Taxes within the District required for the payment of the principal of and interest on any outstanding Bonds becoming due and payable during the ensuing calendar year, including any necessary replenishment or expenditure of the Reserve Fund, and the amount estimated to be sufficient to pay the Administrative Expenses during such calendar year. The Special Taxes so levied shall not exceed the authorized amounts for the District as provided in the proceedings for the formation of the District and in the Rate and Method. Such maximum amount may not be sufficient to fully replenish the Reserve Fund. In addition, no increase to the Special Taxes on any one parcel may exceed 10% 263
14 above the amount that would have been levied in such fiscal year had there never been any such delinquencies or defaults to cover delinquencies caused by other parcels. See “APPENDIX C – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.”
Prepayment of Special Taxes . Under the Rate and Method, the Special Tax obligation for any parcel within the District may be prepaid in full and permanently satisfied at any time. See “APPENDIX C – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” Any required or voluntary prepayment of Special Taxes will result in a mandatory redemption of Bonds. See “THE BONDS – Redemption – Mandatory Redemption from Special Tax Prepayments.”
Collection and Application of Special Taxes . The Agreement provides that the Special Taxes shall be payable and be collected (except in the event of judicial foreclosure proceedings pursuant to the Agreement) in the same manner and at the same time and in the same installments as ad valorem taxes on real property are payable, and have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do ad valorem taxes on real property.

Notwithstanding the foregoing, the City Council may elect, as permitted by the Act, to collect the Special Taxes to be levied for any fiscal year directly from the owners of the parcels of taxable property upon which the Special Taxes are levied rather than by transmitting the Special Taxes to the Auditor-Controller for collection on the tax roll. The Special Taxes will be transferred to the Fiscal Agent and deposited in the Special Tax Fund established under the Agreement when received by the City. See “APPENDIX A – SUMMARY OF THE AGREEMENT.” Under the Agreement, the City has covenanted that (a) to the extent that it is legally permitted to do so, it will levy the Special Taxes for the payment of the Administrative Expenses which are expected to be incurred in each fiscal year and (b) it will not initiate proceedings under the Act to reduce the maximum Special Tax rates for Developed Property (the “Maximum Rates”) below the amounts which are necessary to provide Special Tax Revenues in an amount equal to one hundred ten percent (110%) of Maximum Annual Debt Service on the outstanding Bonds plus estimated Administrative Expenses for the then current fiscal year. The City has further covenanted that in the event an ordinance is adopted by initiative pursuant to Section 3 of Article XIIIC of the California Constitution, which purports to reduce or otherwise alter the Maximum Rates, it will commence and pursue legal action seeking to preserve its ability to comply with its covenant described in the preceding sentence.

See “SPECIAL RISK FACTORS – Constitutional Amendment” herein.

Although the Special Tax will constitute a lien on the land within the District which is subject to taxation, it does not constitute a personal indebtedness of either of the current or any future property owners within the District. There is no assurance that the landowners within the District will be financially able to pay the annual Special Tax or that they will pay such tax even if financially able to do so. The risk of property owners within the District not paying the annual Special Tax is more fully described under the heading “SPECIAL RISK FACTORS – Insufficiency of Special Taxes.”
Under the terms of the Agreement, not later than the ten (10) Business Days after receipt from the City, all Special Tax Revenues received by the City are to be deposited by the Fiscal Agent in the Special Tax Fund.

Special Tax Revenues (with the exception of Special Tax Revenues representing Prepayments) are to be applied by the Fiscal Agent under the Agreement in the following order of priority: (i) to deposit annually the Priority Administrative Expense Allocation to the Administrative Expense Fund; (ii) to pay the principal of and interest on the Bonds when due; (iii) to replenish the Reserve Fund to the Reserve Requirement; (iv) to deposit additional funds to the Administrative Expense Fund to pay Administrative Expenses of the District above the Priority Administrative Expense Allocation, referenced in (i) above; and (v) to transfer the remaining amounts to the Interest Account. See “APPENDIX A – SUMMARY OF THE AGREEMENT.” Special Tax Prepayments shall be deposited in the Special Tax Prepayment Account of the Bond Fund as provided for in the Agreement and used to redeem Bonds. See “THE BONDS – Redemption of Bonds – Mandatory Redemption from Special Tax Prepayments.”
264
15 Reserve Fund
In order to secure the payment of principal and interest on the Bonds, the City will initially deposit a portion of Bond proceeds and the Reserve Fund Policy issued by the Insurer, together in an amount equal to the initial Reserve Requirement, into the Reserve Fund held by the Fiscal Agent. The Reserve Requirement is, as of any date of calculation, the lesser of (i) ten percent (10%) of the original principal amount of the Bonds; (ii) Maximum Annual Debt Service on the Bonds; or (iii) one hundred twenty-five percent (125%) of average Annual Debt Service on the Bonds, as determined by the City. Notwithstanding the foregoing, in no event shall the Reserve Requirement exceed the initial deposit amount into the Reserve Fund. The Reserve Requirement may be satisfied in whole or in part by cash, by a Qualified Debt Service Reserve Instrument (as that term is defined in the Agreement), or a combination thereof. On the date of issuance of the Bonds, the City will deposit $[____] from proceeds of the Bonds, together with the Reserve Fund Policy, into the Reserve Fund to satisfy the Reserve Requirement.

All amounts on deposit in the Reserve Fund shall be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Interest Account and the Principal Account of the Bond Fund in the event of any deficiency at any time in either of such accounts of the amount then required for payment of the principal of and interest and any premium on the Bonds or, in accordance with the provisions of the Agreement for the purpose of redeeming Bonds. In addition, the Agreement provides that whenever, on any September 2, the amount in the Reserve Fund, less Investment Earnings resulting from the investment of the funds therein which pursuant to the Agreement must be rebated to the United States, exceeds the Reserve Requirement, the Fiscal Agent shall provide written notice to the City of the amount of the excess. The Fiscal Agent shall, subject to the requirements of the Agreement, transfer an amount from the Reserve Fund which will reduce the amount on deposit therein to an amount equal to the Reserve Requirement to the Interest Account and the Principal Account, in the priority specified in the Agreement, to be used for the payment of the interest on and principal of the Bonds on the next succeeding Interest Payment Date. In the event the Reserve Fund is drawn upon to pay principal of and interest on the Bonds if insufficient funds are available from the proceeds of the levy and collection of the Special Taxes, the cash in the Reserve Fund will be drawn upon first and then the Reserve Fund Policy will be drawn upon if needed.

The Agreement provides that moneys in any fund or account created or established by the Agreement and held by the Fiscal Agent shall be invested by the Fiscal Agent in Permitted Investments which do not have maturities extending beyond five (5) years, as directed pursuant to an Officer’s Certificate. In the absence of any such Officer’s Certificate, the Fiscal Agent shall invest any such moneys in Permitted Investments as described in the Agreement. The Fiscal Agent shall not have any responsibility for determining the legality of any Permitted Investments and shall have no obligation to pay additional interest or maximize investment income on any funds held by it. The Agreement further provides that investments, other than investment agreements in which moneys in the Reserve Fund are invested, will be valued by the City at fair market value and marked-to-market at least once in each fiscal year. See “APPENDIX A – SUMMARY OF THE AGREEMENT” for a description of the Permitted Investments for amounts in the Reserve Fund.

Reserve Fund Policy. The amount of 50% of the initial Reserve Requirement will initially be satisfied by the Reserve Fund Policy. The premium on the Reserve Fund Policy will be fully paid at the time of delivery of the Bonds. The Insurer has made a commitment to issue the Reserve Fund Policy with respect to the Bonds, effective as of the date of delivery of the Bonds. Under the terms of the Reserve Fund Policy, the Insurer will, subject to the limits described in the Reserve Fund Policy, unconditionally and irrevocably guarantee to pay that portion of the scheduled principal of and interest on the Bonds that becomes due for payment but shall be unpaid by reason of nonpayment by the City. Pursuant to the terms of the Reserve Fund Policy, the amount available at any particular time to be paid to the Fiscal Agent shall automatically be reduced to the extent of any payment made by the Insurer under the Reserve Fund Policy, provided that, to the extent of the reimbursement of such payment by the City to the Insurer, the amount available under the Reserve Fund Policy shall be reinstated in full or in part in an amount not to exceed the limit available under the Reserve Fund Policy. 265
16 Covenant for Superior Court Foreclosure
Proceeds of Foreclosure Sales. The net proceeds received following a judicial foreclosure sale of land within the District resulting from a landowner’s failure to pay the Special Taxes when due are included within the Special Tax Revenues pledged to the payment of principal of and interest on the Bonds under the Agreement.

Pursuant to Section 53356.1 of the Act, in the event of any delinquency in the payment of any Special Tax or receipt by the District of Special Taxes in an amount which is less than the Special Tax levied, the City Council, as the legislative body of the District, may order that Special Taxes be collected by a superior court action to foreclose the lien within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at a judicial foreclosure sale. Under the Act, the commencement of judicial foreclosure following the nonpayment of a Special Tax is not mandatory. The District, however, has covenanted for the benefit of the owners of the Bonds that it will commence and diligently pursue to completion, judicial foreclosure proceedings against (i) parcels with delinquent Special Taxes in excess of $10,000 by the October 1 following the close of the fiscal year in which such Special Taxes were due; and (ii) all properties with delinquent Special Taxes by the October 1 following the close of each fiscal year in which the District receives Special Taxes in an amount which is less than 95% of the total Special Tax levied; providing, however, the City shall not be required to order and cause judicial foreclosure proceedings to be commenced against delinquent properties as long as no deficiency in the Reserve Fund exists (or is projected to exist in order to meet the next upcoming debt service payment) and the City determines that the cost of pursuing such foreclosure is greater than the outstanding delinquency. See APPENDIX A — “SUMMARY OF THE AGREEMENT — Covenant to Foreclose.” If foreclosure is necessary and other funds (including amounts in the Reserve Fund) have been exhausted, debt service payments on the Bonds could be delayed until the foreclosure proceedings have ended with the receipt of any foreclosure sale proceeds. Judicial foreclosure actions are subject to the normal delays associated with court cases and may be further slowed by bankruptcy actions, involvement by agencies of the federal government and other factors beyond the control of the City and the District. See “SPECIAL RISK FACTORS — Bankruptcy.” Moreover, no assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. See “SPECIAL RISK FACTORS — Insufficiency of Foreclosure Sale Proceeds.” Although the Act authorizes the District to cause such an action to be commenced and diligently pursued to completion, the Act does not impose on the District or the City any obligation to purchase or acquire any lot or parcel of property sold at a foreclosure sale if there is no other purchaser at such sale. The Act provides that, in the case of a delinquency, the Special Tax will have the same lien priority as is provided for ad valorem taxes. The Special Taxes of the District are not included in the County’s Teeter Plan. See “SPECIAL RISK FACTORS – No Teeter Plan” herein.

Limited Liability

THE BONDS ARE PAYABLE SOLELY FROM THE PROCEEDS OF THE SPECIAL TAX TO BE

LEVIED ANNUALLY ON THE TAXABLE PROPERTY IN THE LAND WITHIN THE DISTRICT AND AMOUNTS IN CERTAIN FUNDS ESTABLISHED UNDER THE AGREEMENT. NEITHER THE FULL

FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OR ANY POLITICAL SUBDIVISION

THEREOF (OTHER THAN THE DISTRICT, TO THE LIMITED EXTENT SET FORTH IN THE

AGREEMENT) IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. THE BONDS ARE NOT SECURED BY A LEGAL OR EQUITABLE PLEDGE

OF OR CHARGE, LIEN ,OR ENCUMBRANCE UPON ANY OF THE PROPERTY OR REVENUES OF THE

CITY AND THE PAYMENT OF THE INTEREST ON OR PRINCIPAL OF OR REDEMPTION PREMIUMS,

IF ANY, ON THE BONDS IS NOT A GENERAL DEBT, LIABILITY, OR OBLIGATION OF THE CITY OR THE DISTRICT.
266
17 THE DISTRICT
The Development
The District is located in southern Orange County, at the northeast corner of Glenwood Drive and Aliso Creek Road, in the City. The District consists of approximately 104 gross acres and is split into two zones. The property has been developed as 502 single-family residential units, including 455 taxable units of residential property and 43 affordable units in Zone 1 and 4 taxable units in Zone 2. The affordable units are not subject to the lien of the Special Tax. All building permits were pulled for the project as of March 1, 2013. The balance of the acreage in the District represents parcels which are exempt from the levy of the Special Tax and includes, slopes, open space, public right-of-way, affordable units, a City Conference Center, aquatic center and public park and property constituting a portion of the Aliso Viejo Country Club, a privately owned golf course.

The original use of the property comprising the District was a 27-hole golf course. The Jack Nicklaus- designed golf course, which was located on the property, was underperforming, and the then owners of the Property re-zoned the land to residential and received entitlements for 502 units to be constructed on 9 of the then existing 27 holes. The Aliso Country Club has been redesigned by the Nicklaus Group and is one of two Nicklaus- designed courses in Orange County.

The District is located within the master-planned community called “Glenwood at Aliso Viejo,” which was developed in accordance with the Glenwood at Aliso Viejo Specific Plan approved by the City Council pursuant to Ordinance No. 2004-065 on November 3, 2004 (the “Specific Plan”). The Specific Plan authorized a total of 502 dwelling units and permanently designates and zones approximately 148 acres as recreation/open space, which includes the Aliso Viejo Golf Course, parks, and a trail system. The Developer acquired from the former owners 321 of the 326 parcels of land comprising the property on December 14, 2005. The remaining five parcels are currently owned by the Aliso Viejo Golf Club Joint Venture and will continue to be used for the Aliso Viejo Golf Course. The first building permit on the property was issued in October 2006 with the sale of the first unit being completed on October 23, 2007. All units were sold to individual property owners by October, 2013.

General Overview. The Specific Plan allowed for the development of a total of 502 dwelling units within the District. The 43 affordable attached units are not subject to the Special Tax. The development areas within the District are as follows:

Harbor Station: This is a town home community comprised of 141 single-family, market rate, attached homes. An additional 43 affordable homes, which are not subject to the Special Tax, are located in this project.

The living areas have a range of 833 square feet to 1,526 square feet.

Pasadera: There are 149 single-family detached homes in this project. The living areas have a range of 2,218 square feet to 3,163 square feet.

Birch River: There are 69 single-family detached homes in this project and most of the homes have golf course views. The living areas have a range of 3,101 square feet to 3,425 square feet.

Vista Vallarta: There are 50 single-family detached homes in this project with living areas having a range of 3,474 square feet to 3,892 square feet. Many of the homes in this project have views of the golf course and the Saddleback Mountain Range.

Veranda: There are 50 single-family detached homes in this project with living areas having a range of 3,167 square feet to 3,758 square feet.

Special Taxes securing the payment of the Bonds will be levied only in the District, and only the taxable property in the District is security for the Bonds.
267
18 Authorization
Pursuant to the Act, the City Council adopted Resolution No. 2005-17 on March 16, 2005, stating its intention to establish the District and Resolution No. 2005-018 declaring the necessity for the District to incur bonded indebtedness. On April 20, 2005, following a duly noticed public hearing, the City Council adopted Resolution No. 2005-024 establishing the District and Resolution No. 2005-025 determining the necessity to incur bonded indebtedness in an amount not to exceed $37,500,000 within the District. Pursuant to Resolution No. 2005-25, the City Council called an election pursuant to the Act. The owners of the land within the District voted in favor of the incurrence of bonded indebtedness in a principal amount not to exceed $37,500,000 to finance certain public facilities, and the levy of the Special Tax consistent with the Rate and Method. The Bonds are secured solely by Special Tax Revenues generated within the District, including foreclosure proceeds obtained therein. See “APPENDIX C – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” The Bonds were authorized to be issued by the Resolution of Issuance adopted by the City Council on October 4, 2023.

Rate and Method of Apportionment
The District is legally authorized and has covenanted in the Agreement to levy the Special Taxes in accordance with the Rate and Method. The Rate and Method divides the District into two zones. Zone 1 consists of 455 taxable residential parcels, one parcel for which the property owner has fully prepaid their special tax obligation, and 43 units of affordable residential housing, which are exempt from the levy of the District Special Taxes. Zone 2 consists of 4 taxable residential parcels, which are also within the boundaries of the County’s Community Facilities District No. 88-1 (“CFD No. 88-1”). The County’s CFD No. 88-1 special tax obligation is no longer outstanding, however, at the time of formation of the District, CFD No. 88-1 did not allow for the prepayment of the Special Tax. Consequently, in order to provide equity in the relative amount of the aggregate special taxes paid by the owners of parcels which are located within the District and CFD No. 88-1, the Zone 2 Special Taxes were established at a lower rate. There are four single-family detached houses within Zone 2. The Rate and Method apportions the total amount of Special Taxes to be collected among the taxable parcels in the District as more fully described therein. Pursuant to the Rate and Method, the amount of the Special Tax to be levied in each fiscal year can be levied for a period not to exceed 40 years commencing with Fiscal Year 2006-

07. The Rate and Method allows for homeowners to prepay the Special Taxes, but only in full. To date, one parcel has prepaid the Special Tax. See “APPENDIX C – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.”
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268
19 The table below summarizes the Taxable Property within the District by Land Use Classification, along with the Fiscal Year 2023-24 Special Tax and allocation of the District's Bonds.

TABLE 1
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO)

OF THE CITY OF ALISO VIEJO
FISCAL YEAR 2023-24 DEVELOPMENT SUMMARY
Zone Land Use
Residential
Floor Area
Number
of
Units(1)
Fiscal Year
2023-24
Special
Tax(2)
Pro-Rata
Share
of Bonds(3)
Percentage
of
Fiscal
Year
2023-24
Special
Tax Levy
Assessed
Value(4)
1 Residential <1,901 141 $449,939 $4,602,594 19.92% $89,372,186 1 Residential 1,901-2,350 23 106,128 1,085,622 4.70 20,770,492 1 Residential 2,351-2,800 86 424,554 4,342,922 18.80 86,502,566 1 Residential 2,801-3,250 70 398,105 4,072,365 17.63 80,476,965 1 Residential 3,251-3,700 87 560,082 5,729,279 24.80 128,189,235 1 Residential 3,701-4,150 47 307,277 3,143,244 13.61 75,992,804 1 Residential 4,151-4,600 0 0 0 0.00 0
1 Residential >4,600 0 0 0 0.00 0
2 Residential <1,901 0 0 0 0.00 0
2 Residential 1,901-2,350 0 0 0 0.00 0
2 Residential 2,351-2,800 0 0 0 0.00 0
2 Residential 2,801-3,250 0 0 0 0.00 0
2 Residential 3,251-3,700 2 5,893 60,280 0.26 2,887,692 2 Residential 3,701-4,150 2 6,226 63,693 0.28 3,815,371 2 Residential 4,151-4,600 0 0 0 0.00 0
2 Residential >4,600 0 0 0 0.00 0
Total 458 $2,258,205 $23,100,000 100.00% $488,007,311
______________________
Source: Koppel & Gruber Public Finance.
(1) Excludes one parcel for which the property owner fully prepaid their special tax obligation; does not include the 43 affordable housing units not subject to the Special Tax.
(2) The total Special Tax levy for Fiscal Year 2023-24 is calculated as the sum of the debt service on the Bonds for Bond Year ending 2024 and estimated Administrative Expenses, plus an additional 2% for estimated delinquencies. (3) Allocated based on the proportionate share of the Special Tax levy for Fiscal Year 2023-24. (4) Based on values listed on the Orange County Assessor Roll for Fiscal Year 2023-24 (“Secured Roll”). 269
20 The table below summarizes the Taxable Property within the District by Land Use Classification, along with the estimated Fiscal Year 2024-25 Special Tax and allocation of the District's Bonds, reflecting the tax levy set after the refunding of the 2014 Bonds.

TABLE 1 A
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO)

OF THE CITY OF ALISO VIEJO
FISCAL YEAR 2024-25 DEVELOPMENT SUMMARY
_
Zone Land Use
Residential
Floor Area
Number
of
Units(1)
Estimated
Fiscal
Year
2024-25
Special
Tax(2)
Pro-Rata
Share
of Bonds(3)
Percentage
of
Estimated
Fiscal Year
2024-25
Special Tax
Levy(5)
Assessed
Value(4)
1 Residential <1,901 141 $404,408 $4,308,694 19.92% $89,372,186 1 Residential 1,901-2,350 23 95,388 1,016,299 4.70% 20,770,492 1 Residential 2,351-2,800 86 381,594 4,065,630 18.80% 86,502,566 1 Residential 2,801-3,250 70 357,819 3,812,322 17.63% 80,476,965 1 Residential 3,251-3,700 87 503,406 5,363,458 24.80% 128,189,235 1 Residential 3,701-4,150 47 276,182 2,942,538 13.61% 75,992,804 1 Residential 4,151-4,600 0 0 0 0.00% 0
1 Residential >4,600 0 0 0 0.00% 0
2 Residential <1,901 0 0 0 0.00% 0
2 Residential 1,901-2,350 0 0 0 0.00% 0
2 Residential 2,351-2,800 0 0 0 0.00% 0
2 Residential 2,801-3,250 0 0 0 0.00% 0
2 Residential 3,251-3,700 2 5,297 56,432 0.26% 2,887,692 2 Residential 3,701-4,150 2 5,596 59,626 0.28% 3,815,371 2 Residential 4,151-4,600 0 0 0 0.00% 0
2 Residential >4,600 0 0 0 0.00% 0
Total 458 $2,029,691 $21,625,000 100.00% $488,007,311
_____________________
Source: Koppel & Gruber Public Finance.
(1) Excludes one (1) parcel for which the property owner fully prepaid their special tax obligation and the 43 affordable housing units not subject to the Special Tax.
(2) The total estimated Special Tax levy for Fiscal Year 2024-25 is calculated as the sum of the debt service on the Bonds for Bond Year ending 2025 and estimated Administrative Expenses, plus an additional 2% for estimated delinquencies. (3) Allocated based on the proportionate share of the Special Tax levy for Fiscal Year 2024-25. (4) Based on values listed on the Orange County Assessor Roll for Fiscal Year 2023-24 (“Secured Roll”). (5) Preliminary; subject to change.
270
21 Historical Levies and Tax Delinquencies
The following table illustrates the historical Special Tax delinquencies from Fiscal Year 2018-19 to 2022- 23 for property located within the District. The total number of parcels subject to the levy is currently 458 due to prepayment by one parcel. The Fiscal Year 2022-23 levy was $2,380,805, with half of the full levy collected in each installment. The first installment was due on December 10, 2022 and the second installment was due on April 10, 2023. The delinquency rate for Fiscal Year 2022-23, as of June 30, 2023, was 0.90%. Currently, there are no foreclosure actions in process for parcels within the District.

TABLE 2
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO)

OF THE CITY OF ALISO VIEJO

SPECIAL TAX LEVIES AND DELINQUENCIES
As of Fiscal Year End As of June 30, 2023
Fiscal
Year
Special Tax
Amount
Levied
Total
Number
of
Parcels
Subject
to Levy(1)
Amount
Collected
Special Tax
Amount
Delinquent
Number of
Delinquent
Parcels
Percent
Delinquent
Remaining
Amount
Delinquent
Number of
Delinquent
Parcels
Remaining
Percent of
Delinquent
Parcels
Remaining
2018-19 $2,065,929 459 $2,055,651 $10,278 3 0.50% $ 0 0 0.00% 2019-20 2,100,721 459 2,090,166 10,555 3 0.50% 0 0 0.00% 2020-21 2,051,054 458 2,042,198 8,856 4 0.43% 0 0 0.00% 2021-22 2,185,717 458 2,162,063 23,654 6 1.08% 0 0 0.00% 2022-23 2,380,805 458 2,359,423 21,382 5 0.90% 21,382 5 0.90% Source: County Auditor-Controller and Tax Collector; compiled by Koppel & Gruber Public Finance. (1) The reduction in the total number of units from Fiscal Year 2019-20 to 2020-21 is due to a prepayment of special taxes being made for a parcel within the District.
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271
22 Estimated Direct and Overlapping Debt
The property within the District is within the jurisdiction of several overlapping local agencies providing public services. The direct and overlapping debt secured by such taxes, assessments, and charges as of Fiscal Year 2023-24 in the District is shown on the following table (the “Debt Report”). The Debt Report is based on data obtained by Koppel & Gruber Public Finance, Special Tax Consultant, from California Municipal Statistics, Inc., and is included for general information purposes only. Neither the City, District, nor the Underwriter makes representations as to its completeness or accuracy.

TABLE 3
COMMUNITY FACILITIES DISTRICT NO. 2005-01
(GLENWOOD AT ALISO VIEJO)

OF THE CITY OF ALISO VIEJO

DIRECT AND OVERLAPPING DEBT SUMMARY
Overlapping District
Total Debt
Outstanding
Percent Applicable
to
District
District Share of
Total
Debt Outstanding
Metropolitan Water District General Obligation Bonds $19,215,000 0.013% $2,475 Estimated Share of Overlapping Debt $2,475
Plus the Bonds: 23,100,000(1)
Estimated Share of Direct and Overlapping Debt $23,102,475(1) _________________________
(1) Preliminary; subject to change.

Source: California Municipal Statistics, Inc., as compiled by Koppel & Gruber Public Finance.

In addition to the bonded indebtedness set forth in Table 3, new community facilities districts or special assessment districts may be formed which include all or a portion of the District, and, upon approval of the registered voters or landowners in such districts, as applicable, may issue more bonds and levy additional special taxes or other taxes and assessments. In addition to the Special Taxes, the property owners in the District will be required to pay the general ad valorem property taxes for their parcels. See “SPECIAL RISK FACTORS – Parity Taxes and Special Assessments.”
Set forth on the following page is Table 4 which provides, for all Special Tax categories of actual Taxable Property, the estimated property tax bill for Fiscal Year 2022-23. Following the issuance of the Bonds, the estimated tax rate is expected to decline by 10.12% on average across both zones. 272
23 TABLE 4
Community Facilities District No. 2005-01
(Glenwood at Aliso Viejo)
of the City of Aliso Viejo
Estimated Total Effective Tax Rate
ZONE 1 ZONE 2
Land Use Class
1 <1,901
Land Use Class
2 1,901-,2,350
Land Use Class
3 2,351-2,800
Land Use Class
4 2,801-3,250
Land Use Class
5 3,251-3,700
Land Use Class
6 3,701-4,150
Land Use Class
Class 5
3,251-3,700
Land Use Class
6 3,701-4,150
Assessed Values
Average Land Value(1) $358,444.67 $499,142.61 $538,844.60 $568,993.00 $726,561.20 $777,546.45 $715,837.50 $1,141,897.50 Average Improvement Value(1) 237,938.74 386,215.61 423,068.93 542,640.91 700,009.61 768,998.68 699,698.50 719,330.50 Homeowner's Exemption (7,000.00) (7,000.00) (7,000.00) (7,000.00) (7,000.00) (7,000.00) (7,000.00) (7,000.00) Estimated Net Assessed Value(2) $589,383.42 $878,358.22 $954,913.53 $1,104,633.91 $1,419,570.80 $1,539,545.13 $1,408,536.00 $1,854,228.00 Ad Valorem Property Taxes(3) Tax Rate Amount Amount Amount Amount Amount Amount Amount Amount Basic Levy 1.00000% $5,893.83 $8,783.58 $9,549.14 $11,046.34 $14,195.71 $15,395.45 $14,085.36 $18,542.28 MWD Charge 0.00350% 20.63 30.74 33.42 38.66 49.68 53.88 49.30 64.90 Subtotal Ad Valorem Property Taxes $5,914.46 $8,814.32 $9,582.56 $11,085.00 $14,245.39 $15,449.34 $14,134.66 $18,607.18 Assessments, Charges and Special Taxes Amount Amount Amount Amount Amount Amount Amount Amount Mosquito and Fire Ant Assessment(4) $4.98 $8.30 $8.30 $8.30 $8.30 $8.30 $8.30 $8.30 Vector Control 0.66 1.92 1.92 1.92 1.92 1.92 1.92 1.92
Metropolitan Water District Standby
Charge(5) 10.08 10.08 10.08 10.08 10.08 10.08 10.08 10.08 City CFD No. 2005-01(6) 3,364.30 4,864.76 5,204.70 5,995.98 6,787.24 6,892.74 3,106.42 3,282.24 Subtotal Assessments, Charges and
Special Taxes
$3,380.02 $4,885.06 $5,225.00 $6,016.28 $6,807.54 $6,913.04 $3,126.72 $3,302.54 Total Estimated Property Tax $9,294.48 $13,699.38 $14,807.56 $17,101.28 $21,052.93 $22,362.38 $17,261.38 $21,909.72 Estimated Effective Tax Rate 1.58% 1.56% 1.55% 1.55% 1.48% 1.45% 1.22% 1.18% _____________________________
Source: Koppel & Gruber Public Finance.
(1) Estimated average assessed values of taxable Residential Developed Property within each land use classification under the Modified Rate & Method; assessed values are based on values listed on the Orange County Assessor Roll for Fiscal Year 2022-23 (“Secured Roll”). (2) Net assessed value reflects estimated total assessed value for a parcel net of homeowner's exemption. Not all residences qualify for homeowner's exemption. (3) Based on Fiscal Year 2022-23 rates for Tax Rate Area 34-032 which represents the ad valorem rate for the District parcels. Ad valorem rates are subject to change in future years.
(4) Based on the actual Fiscal Year 2022-23 rate applicable to single family attached units for Land Use Class 1 and the rate applicable to single family detached units for all other Land Use Classes.
(5) The standby charge is applied at $10.08 per acre or portion thereof. Not all parcels within the District are subject to the standby charge. (6) Based on the actual Fiscal Year 2022-23 special taxes for each land use classification. 273
24 The City has no control over the amount of additional debt payable from special taxes or assessments levied on all or a portion of the property within the District that may be incurred in the future by other governmental agencies having jurisdiction over such property. Furthermore, nothing prevents owners of property within the District from consenting to the issuance of such debt by other governmental agencies. To the extent that such indebtedness is payable from assessments, special taxes levied pursuant to the Act, or other taxes, such assessments, special taxes, and other taxes will be secured by liens on the property within the District on a parity with the lien of the Special Taxes.

The incurrence of any such additional indebtedness could cause the total debt on the property within the District to increase without any corresponding increase in the value of such property, thereby reducing (perhaps dramatically) the estimated value-to-lien ratios that exist at the time the Bonds are issued. The incurrence of such additional indebtedness could reduce the willingness and ability of the property owners within the District to pay special taxes when due. See “SPECIAL RISK FACTORS –Parity Taxes and Special Assessments.” Property Assessed Values
The most recent assessed value reported by the County Assessor for the taxable property in the District was as of July 1, 2023, which assessed value totaled $488,007,311. All parcels within the District are currently owned by individual taxpayers. The assessed values of property in the District discussed in this Official Statement are from the County Assessor’s assessment roll for Fiscal Year 2023-24 (as of the January 1, 2023 lien date).

These assessed values represent the “full cash value” of such property as determined by the County Assessor.

Pursuant to rules of the State Board of Equalization that govern the County Assessor’s valuation of property in the District, “full cash value” of real property means the price at which the unencumbered or unrestricted fee simple interest in the real property (subject to any enforceable governmental restrictions) would transfer for cash or its equivalent under prevailing market conditions. These rules also provide that when valuing property as a result of a change in ownership for consideration it shall be rebuttably presumed that the consideration valued in money (i.e., the purchase price), whether paid in money or otherwise, is the full cash value of the property.

Pursuant to the California Constitution, the full cash value of property may reflect from year to year the inflationary rate not to exceed two percent (2%) for any given year or reduction as shown in the consumer price index or comparable data for the area under taxing jurisdiction, or may be reduced to reflect substantial damage, destruction or other factors causing a decline in value.

No assurance can be given, therefore, that the assessed value of property in the District will not be reduced by the County Assessor for Fiscal Year 2023-24 or for any subsequent fiscal year.

See “SPECIAL RISK FACTORS – Reduction of Assessed Values.” Assessed values, as determined by the County Assessor, may not reflect the actual market value of property in the District (e.g., homes in the District might sell for more or less than the County Assessor’s assessed value). The City does not intend to have an appraisal prepared to estimate the market value of any property in the District.
274
25 Table 5 shows annual changes in assessed valuations for all Taxable Property in the District for Fiscal Years 2018-19 through 2023-24.

TABLE 5
Community Facilities District No. 2005-01
(Glenwood at Aliso Viejo)
of the City of Aliso Viejo
Historical Assessed Valuation
Fiscal
Year
Number of
Parcels
Subject to Levy
(Taxable Property)(1)
Secured
Assessed
Land Value
Secured
Assessed
Improvement
Value
Total Secured
Assessed Value
for
Taxable Property
Percent
Change
2018-19 459 $213,313,728 $200,445,377 $413,759,105 N/A
2019-20 459 225,271,467 205,757,529 431,028,996 4.17%
2020-21 458 232,086,567 209,261,072 441,347,639 2.39%
2021-22 458 238,424,987 211,677,604 450,102,591 1.98%
2022-23 458 251,662,102 216,682,946 468,345,048 4.05%
2023-24 458 266,143,082 221,864,229 488,007,311 4.20%
__________________
Source: County of Orange Assessor; compiled by Koppel & Gruber Public Finance. (1) The reduction in the total number of units from Fiscal Year 2019-20 to 2020-21 is due to a prepayment of special taxes being made for a parcel within the District.
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275
26 Total Valuation of All Taxable Property Within the District The following tables show the valuation of taxable property in summary form based upon existing development within the District. Table 6 shows the pro-rata share of Bonds allocated by the Fiscal Year 2023-24 Special Tax levy summarized based on value-to-lien ratios ranges. Such lien includes only the Bonds and does not include any other overlapping tax and assessment debt.

TABLE 6
Community Facilities District No. 2005-01
(Glenwood at Aliso Viejo)
of the City of Aliso Viejo
Value to Lien Ratios of Residential Developed Property
District Debt Only
Current Assessed
Value-to-Lien
Units
Taxed
Special Tax
Levy Fiscal
Year
2023-24
Percentage
of
Special Tax
Levy
Total
Assessed
Value(2)
Pro-Rata
Share
of Bonds(1)
Value-to-
Lien
Ratio(3)
Less Than 5.01 0 $ 0 0.00% $0 $0 N/A

5.01 to 10.00 2 $10,624 0.47% $980,038 $108,676 9.02:1

10.01 to 15.00 11 $54,848 2.43% $7,257,254 $561,065 12.93:1

15.01 to 20.00 238 $1,100,021 48.71% $202,282,920 $11,252,519 17.98:1

20.01 to maximum 207 $1,092,711 48.39% $277,487,099 $11,177,740 24.82:1 Total 458 $2,258,205 100.00% $488,007,311 $23,100,000 21.13:1 _________________________________
(1) Preliminary; subject to change.
(2) Based on values listed on the Orange County Assessor Roll for Fiscal Year 2023-24 (“Secured Roll”). (3) Calculated as the total assessed value divided by the total debt outstanding.

Source: Compiled by Koppel & Gruber Public Finance.
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276
27 The following table also shows the pro-rata share of the Bonds based on value-to-lien ratios, but includes a lien with the value-to-lien ranges of Taxable Property within the District, however, the lien includes both the Bonds and other overlapping tax and assessment debt.

TABLE 7
Community Facilities District No. 2005-01
(Glenwood at Aliso Viejo)
of the City of Aliso Viejo
Value to Lien Ratios of Residential Developed Property
Including Overlapping General Obligation and Special Tax Debt Current Assessed
Value-to-Lien
Units
Taxed
Special Tax
Levy
Fiscal Year
2023-24(2)
Percentage
of Special
Tax Levy
Total Assessed
Value(3)
Pro-Rata
Share of
Bonds(1)
Overlapping
Debt
Total Debt
Outstanding
Value-
to-Lien
Ratio(4)
Less than 5.00 0 $0 0.00% $0 $0 $0 $0 N/A

5.01 to 10.00 2 $10,624 0.47% $980,038 $108,676 $5 $108,681 9.02:1

10.01 to 15.00 11 $54,848 2.43% $7,257,254 $561,065 $42 $561,107 12.93:1

15.01 to 20.00 238 $1,100,021 48.71% $202,282,920 $11,252,519 $1,048 $11,253,567 17.98:1

20.01 to
maximum 207 $1,092,711 48.39% $277,487,099 $11,177,740 $1,380 $11,179,120 24.82:1 Total 458 $2,258,205 100.00% $488,007,311 $23,100,000 $2,475 $23,102,475 21.12:1 _________________________________
(1) Preliminary; subject to change.
(2) The Fiscal Year 2023-24 Special Tax levy is equal to 79.41% of the Assigned Special Tax for Developed Property and after the Bonds are issued, is expected to be 69.97% of the Assigned Special Tax for Developed Property for Fiscal Year 2024-25. (3) based on values listed on the Orange County Assessor Roll for Fiscal Year 2023-24 (“Secured Roll”). (4) Calculated as the total assessed value divided by the total debt outstanding.

Source: Compiled by Koppel & Gruber Public Finance.

Notwithstanding the foregoing and following discussions and estimates of value, there is no assurance that, in the event of a foreclosure sale for delinquent Special Taxes, any bid would be received for such property or that any bid received would be sufficient to pay such delinquent Special Taxes. See the section herein entitled “SPECIAL RISK FACTORS.”
The District has no control over the amount of additional indebtedness that may be issued in the future by other public agencies, the payment of which, through the levy of a tax or an assessment, may be on a parity with the Special Taxes and be secured by a lien on a parity with the lien securing payment of the Special Taxes. See “SECURITY FOR THE BONDS - Direct and Overlapping Debt” herein.

Top Taxpayers
All parcels in the District are classified as Developed Property for the Fiscal Year 2023-24 Special Tax levy. In Fiscal Year 2023-24, the individual homeowners within the District are responsible for 100% of the total Special Tax levy. Based on ownership status as of January 1, 2023 as provided by the County of Orange Secured Roll, no individual homeowner is responsible for more than 0.51% of the estimated Fiscal Year 2023-24 Special Tax levy.
277
28 SPECIAL RISK FACTORS
Investment in the Bonds involves risks which may not be appropriate for certain investors. The following is a discussion of certain risk factors, in no particular order of importance, all of which should be considered, in addition to other matters set forth herein, in evaluating the investment quality of the Bonds. This discussion does not purport to be comprehensive or definitive. The occurrence of one or more of the events discussed herein could adversely affect the ability or willingness of existing or future property owners within the District to pay the Special Taxes levied in the District when due. Such failure to pay Special Taxes could result in the inability of the City to make full and punctual payments of debt service on the Bonds. In addition, the occurrence of one or more of the events discussed herein could adversely affect the value of the property in the District.

Risks of Real Estate Secured Investments Generally
The Owners of the Bonds will be subject to the risks generally incident to an investment secured by real estate, including, without limitation, (i) adverse changes in local market conditions, such as changes in the market value of real property in the vicinity of the District, the supply of or demand for competitive properties in such area, and the market value of residential property or buildings and/or sites in the event of sale or foreclosure; (ii) changes in real estate tax rates and other operating expenses, governmental rules (including, without limitation, zoning laws and laws relating to endangered species and hazardous materials) and fiscal policies; (iii) natural disasters (including, without limitation, earthquakes, fires and floods), which may result in uninsured losses; and (iv) high rate of inflation, rising interest rates and other economic trends that adversely affects consumers, whether cyclical or resulting from geopolitical events.

No assurance can be given that the individual homeowners will pay Special Taxes in the future or that they will be able to pay such Special Taxes on a timely basis. See “SPECIAL RISK FACTORS – Insufficiency of Foreclosure Sale Proceeds” below, for a discussion of certain limitations on the District’s ability to pursue judicial proceedings with respect to delinquent parcels.

Limited Obligations
The Bonds and interest thereon are not payable from the general funds of the City or District. Except with respect to the Special Taxes, neither the credit nor the taxing power of the District or the City is pledged for the payment of the Bonds or the interest thereon, and, except as provided in the Agreement, no owner of the Bonds may compel the exercise of any taxing power by the District or the City or force the forfeiture of any City or District property. The principal of, premium, if any, and interest on the Bonds are not a debt of the City or a legal or equitable pledge, charge, lien or encumbrance upon any of the City’s or the District’s property or upon any of the City’s or the District’s income, receipts or revenues, except the Special Taxes and other amounts pledged under the Agreement.

Failure by owners of the parcels within the District to pay Special Tax installments when due, delay in foreclosure proceedings, or the inability of the District to sell parcels which have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of Special Taxes levied against such parcels may result in the inability of the District to make full or timely payments of debt service on the Bonds, which may, in turn, result in the depletion of the Reserve Account and the inability of the District to make full or timely payment on the Bonds.

Insufficiency of Special Taxes
Under the Rate and Method, the annual amount of Special Tax to be levied on each taxable parcel in the District will generally be based on whether such parcel is categorized as Undeveloped Property or as Developed Property and on the zone and land use class to which a parcel of property is assigned. See “APPENDIX C – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX” and “SECURITY FOR THE BONDS – Special Taxes.” Notwithstanding that the maximum Special Taxes that may be levied in the District exceeds debt service due on the Bonds, the Special Taxes collected could be inadequate to make timely payment of debt service either because of nonpayment or because property becomes exempt from taxation. 278
29 The Rate and Method governing the levy of the Special Tax expressly allows the District Administrator to classify certain property as exempt from the levy of special Taxes, including 43 units of affordable residential housing, property owned by public agencies or a property owner association, any property used as a golf course within the District (including any clubhouse, pro shop, parking, maintenance facilities, and other golf related amenities), and certain other public or quasi-public uses, provided that no such classification by the District Administrator would reduce the sum of all taxable property within the District to less than 42.32 acres. See “APPENDIX C – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” Property Values
The value of property within the District is an important factor in evaluating the investment quality of the Bonds. If a property owner is delinquent or defaults in the payment of Special Taxes, the City’s only remedy is to commence foreclosure proceedings on the lien of the Special Taxes on the delinquent parcel. Prospective purchasers of the Bonds should not assume that the property within the District could be sold for the assessed values described herein at a foreclosure sale for delinquent Special Taxes or for an amount adequate to pay delinquent Special Taxes. See “SECURITY FOR THE BONDS – Covenant for Superior Court Foreclosure” and “- Property Assessed Values.” Also, property values are not evenly distributed throughout the District. This disparity of values across the District is significant because, as mentioned above, if property owners become delinquent in the payment of Special Taxes, the District’s only remedy is to commence foreclosure against delinquent parcels. See “THE DISTRICT - Property Assessed Values” and “ – Estimated Direct and Overlapping Debt.” Reductions in property values due to a downturn in the economy, physical events such as earthquakes, fires, or floods, stricter land use regulations, or other events may adversely impact the security underlying the Special Taxes.

Reduction of Assessed Values
Neither the City, nor the District, makes any representation as to whether the assessed value of property in the District or the value-to-lien ratios for such property will remain at the assessed values or the ratios discussed in this Official Statement.

The assessed values of property in the District, as discussed herein, are from the County Assessor’s assessment roll for Fiscal Year 2023-24 (as of the January 1, 2023 lien date). These assessed values represent the County Assessor’s determination of the “full cash value” of property in the District. Pursuant to the California Constitution, the full cash value of property may reflect from year to year the inflationary rate not to exceed two percent for any given year or reduction as shown in the consumer price index or comparable data for the area under taxing jurisdiction, or may be reduced to reflect substantial damage, destruction or other factors causing a decline in value.

Pursuant to rules of the California State Board of Equalization that govern the County Assessor’s valuation of property in the District, “full cash value” of real property means the price at which the unencumbered or unrestricted fee simple interest in the real property (subject to any enforceable governmental restrictions) would transfer for cash or its equivalent under prevailing market conditions. These rules also provide that when valuing property as a result of a change in ownership for consideration it shall be rebuttably presumed that the consideration valued in money (i.e., the purchase price), whether paid in money or otherwise, is the full cash value of the property. This presumption may, however, be rebutted (e.g., in an assessment appeal by a property owner) by evidence that the full cash value of property is significantly more or less than the total cash equivalent of the consideration paid for the property. A significant deviation means a deviation of more than five percent of the total consideration. The Board of Equalization rules also provide that in estimating value, the assessor shall consider one or more valuation approaches, including the comparative sales approach, which is the preferred method of valuation. The rule further provides that when reliable market data are available, the preferred method of valuation is by reference to sales prices.

Accordingly, the assessed values of the property in the District could be reduced if sales prices of property in the District decline. If the County Assessor determines that sales prices for residential property or other property in the District have declined since January 1, 2023, the County Assessor could reduce assessed values of property in the District for Fiscal Year 2024-25. Additionally, no assurance can be given that the assessed value of property 279
30 in the District will not be reduced by the County Assessor for Fiscal Year 2024-25 or for any subsequent fiscal year. Also, homeowners in the District who perceive that their property will sell for less than current assessed value, may initiate statutory assessment appeals in an effort to have the assessed value of their property reduced.

The assessed values set forth in this Official Statement do not represent market values arrived at through an appraisal process and generally reflect only the sales price of a parcel when acquired by its current owner, increased or decreased annually by an amount determined by the County Assessor based on current market conditions, generally not to exceed an increase of more than 2% per fiscal year from the date of purchase (except in the case of new construction subsequent to such acquisition). The District does not intend to have an appraisal prepared to estimate the market value of any property in the District. No assurance can be given that a parcel could actually be sold for its assessed value. The actual market value of property is subject to future events such as a downturn in the economy, occurrences of certain acts of nature and the decisions of various governmental agencies as to land use, among others, all of which could adversely impact the value of the land in the District which secure the Bonds.

No assurance can be given that the estimated value-to-lien ratios as set forth in this Official Statement will be maintained over time. As discussed herein, many factors which are beyond the control of the District could adversely affect the property values within the District. The District does not have any control over the amount of additional indebtedness that may be issued by other public agencies, the payment of which through the levy of a tax or an assessment is on a parity with the Special Taxes. A decrease in the assessed values in the District or an increase in the indebtedness secured by taxes and amounts with parity liens on property in the District, or both, could result in lowering of the value-to-lien ratio of the property in the District.

Depletion of Reserve Fund
In order to pay debt service on the Bonds, it is necessary that the Special Tax levied within the District be paid in a timely manner. Should the Special Tax not be paid on time, the District has established a Reserve Fund with respect to the Bonds through the deposit of the Reserve Fund Policy in the amount of 50% of the Reserve Requirement and the remainder through the deposit of cash ( see, “REFUNDING PLAN – Sources and Uses of Funds”) in order to pay debt service on the Bonds to the extent other funds are not available therefore. In the event the Reserve Fund is drawn upon to pay principal of and interest on the Bonds if insufficient funds are available from the proceeds of the levy and collection of the Special Taxes, the cash in the Reserve Fund will be drawn upon first and then the Reserve Fund Policy will be drawn upon if needed.

Under the Agreement, the City has covenanted to maintain in the Reserve Fund an amount equal to the Reserve Requirement, with the sole source of moneys to replenish the cash and the amount available in the Reserve Fund Policy in the Reserve Fund being Special Tax Revenues collected that are in excess of Bond debt service and Administrative Expenses. See “APPENDIX A – SUMMARY OF THE AGREEMENT” herein. If a sufficient number of property owners in the District are delinquent in the payment of the Special Tax, the City may be unable to replenish the Reserve Fund to the Reserve Requirement. If such defaults were to continue in successive years, the Reserve Fund would soon be depleted and a default on the Bonds would occur.

Insufficiency of Foreclosure Sale Proceeds
The City has covenanted to institute foreclosure proceedings to sell the property with delinquent Special Taxes in order to obtain funds to pay debt service on the Bonds, subject to the limitations set forth in the Agreement. If foreclosure proceedings were ever instituted, any mortgage or deed of trust holder with respect to a deed of trust on property within the District could, but would not be required to, advance the amount of delinquent Special Taxes to protect its security interest. See “SECURITY FOR THE BONDS – Covenant for Superior Court Foreclosure” for provisions which apply in the event foreclosure is required and which the City is required to follow in the event of delinquency in the payment of Special Taxes. In the event such superior court foreclosure or foreclosures are necessary, there could be a delay in payments to Bondowners pending prosecution of the foreclosure sale, if the Reserve Fund were depleted.

No assurances can be given that the property subject to foreclosure and sale at a judicial foreclosure sale will be sold, or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax. 280
31 Although the Act authorizes the City to cause such an action to be commenced and diligently pursued to completion, the Act does not specify the obligations of the City with regard to purchasing or otherwise acquiring any property at the execution sale pursuant to the judgment in any such action if there is no other purchaser at such sale. The City has no obligation to be a bidder at a foreclosure sale.

Special Tax Delinquencies
Under provisions of the Act, the Special Taxes, from which funds necessary for the payment of principal of, and interest on, the Bonds are derived, are customarily billed to the properties within the District on the ad valorem property tax bills sent to owners of such properties. The Act currently provides that such Special Tax installments are due and payable, and bear the same penalties and interest for non-payment, as do ad valorem property tax installments. Therefore, the unwillingness or inability of a property owner to pay general property tax bills, as evidenced by property tax delinquencies, may also indicate an unwillingness or inability to make general property tax payments and Special Tax installment payments in the future. See “SECURITY FOR THE BONDS – Special Taxes,” for a discussion of the provisions which apply, and procedures which the District is obligated to follow under the Agreement, in the event of delinquencies in the payment of Special Taxes. See also “SPECIAL RISK FACTORS – Insufficiency of Foreclosure Sale Proceeds.” See “SPECIAL RISK FACTORS - Payments by FDIC and Other Federal Agencies” for a discussion of the policy of the Federal Deposit Insurance Corporation (the “FDIC”) regarding the payment of special taxes and assessment and limitations on the City’s ability to foreclose on the lien of the Special Taxes in certain circumstances.

The total amount of the Special Taxes levied on property in the District for Fiscal Year 2022-23 was $2,380,805. As of June 30, 2023, these Special Taxes were delinquent in the amount of $21,382 for a delinquency rate of 0.90%. See “THE DISTRICT - Historical Levies and Tax Delinquencies.” See also “SECURITY FOR THE BONDS – Reserve Fund” and “ - Covenant for Superior Court Foreclosure,” for a discussion of the obligations of the District in the event of delinquency in the payment of Special Tax installments.

The value of the land within the District is an important factor in determining the investment quality of the Bonds. If a property owner within the District is delinquent in the payment of the Special Taxes, the City’s only remedy is to commence foreclosure proceedings on such taxable property on behalf of the District in an attempt to obtain funds to pay the Special Taxes. Reductions in property values due to a downturn in the economy, physical events such as earthquakes or floods, stricter land use regulations, delays in development or other events will adversely impact the security underlying the Special Taxes.

Payment of Special Taxes
The levy of special taxes can result in a significantly greater property tax burden being imposed upon properties within a community facilities district than in other areas of a city or county, and this added burden can result in problems in the collection of the special taxes. In some community facilities districts, the property owners have refused to pay the special taxes and have commenced litigation challenging the special taxes, the establishment of the District, and the bonds issued by the District.

The Special Taxes, from which funds necessary for the payment of principal of, and interest on, the Bonds are derived, will be billed to the properties in the District on the regular ad valorem property tax bills sent to owners of such properties. Special Tax installments are due and payable, and bear the same penalties and interest for non-payment, as do regularad valorem property tax installments. Special Tax installment payments cannot be made separately from property tax payments. Therefore, the unwillingness or inability of a property owner to pay regular property tax bills, as evidenced by property tax delinquencies, may also indicate an unwillingness or inability to make regular property tax payments and Special Tax installment payments in the future. See “THE DISTRICT - Historical Levies and Tax Delinquencies.”
The Maximum Special Tax that can be levied on Taxable Property in the District in Fiscal Year 2023-24 is $3,719,812, which amount may escalate by 2% per fiscal year. Although this provides approximately 193% coverage of debt service, pursuant to Section 53321(d) of the California Government Code, the Special Tax levied against any Assessor's parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other Assessor's parcel within the 281
32 District by more than ten percent (10%) above the amount that would have been levied in the fiscal year had there never been any such delinquencies of defaults. See "SECURITY FOR THE BONDS – Special Taxes." Thus, while the annual debt service on the Bonds payable from Special Taxes levied in Fiscal Year 2024-25 is estimated to be $1,946,250 and the amount of Special Tax that can be deducted for payment of Priority Administrative Expenses before payment of Bond debt service is $42,847 for Fiscal Year 2024-25 and escalates by 2% each fiscal year (see "SECURITY FOR THE BONDS – Special Taxes"), for a total of $1,989,097, or approximately 68.57% of the annual Maximum Special Tax, the Effective Maximum Special Tax that could be levied on Taxable Property in the event of delinquencies in payment of Special Tax is 110% of the Special Tax that would have been levied had there not been a delinquency. See “THE DISTRICT – Rate and Method of Apportionment.” An owner of a taxable parcel is not personally obligated to pay the Special Taxes which are levied on his or her parcel. Rather, the Special Taxes are an obligation which is secured only by a lien upon the taxable parcel.

Aliso Viejo City CouncilOctober 4, 2023

Aliso Viejo City Council
October 4, 2023