APPENDIX 1
10 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057%0.0465312%
City Elk Grove Sacramento 0.130%0.1066994%
City Folsom Sacramento 0.108%0.0890850%
City Galt Sacramento 0.017%0.0143704%
City Rancho Cordova Sacramento 0.008%0.0067679%
City Sacramento Sacramento 0.721%0.882%0.7496530%
County San Benito County San Benito 0.106%0.130%0.1101417% City Hollister San Benito 0.027%0.0225355%
County San Bernardino County San Bernardino 3.259%3.987%3.3878124% City Adelanto San Bernardino 0.008%0.0066640%
City Apple Valley San Bernardino 0.025%0.0207360%
City Barstow San Bernardino 0.015%0.0122056%
City Chino San Bernardino 0.064%0.0525893%
City Chino Hills San Bernardino 0.001%0.0006388%
City Colton San Bernardino 0.031%0.0253443%
City Fontana San Bernardino 0.112%0.0920543%
City Grand Terrace San Bernardino 0.006%0.0051051%
City Hesperia San Bernardino 0.035%0.0291522%
City Highland San Bernardino 0.004%0.0029061%
City Loma Linda San Bernardino 0.009%0.0071188%
City Montclair San Bernardino 0.039%0.0322108%
City Ontario San Bernardino 0.179%0.1472934%
City Rancho Cucamonga San Bernardino 0.084%0.0689431%
City Redlands San Bernardino 0.057%0.0469150%
City Rialto San Bernardino 0.073%0.0603206%
City San Bernardino San Bernardino 0.178%0.1461880%
City Twentynine Palms San Bernardino 0.002%0.0012605%
City Upland San Bernardino 0.052%0.0424460%
City Victorville San Bernardino 0.033%0.0269400%
City Yucaipa San Bernardino 0.016%0.0128772%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003%0.0021228%
County San Diego County San Diego 5.706%6.980%5.9309748% City Carlsbad San Diego 0.128%0.1050485%
City Chula Vista San Diego 0.189%0.231%0.1961456%
City Coronado San Diego 0.044%0.0359095%
City El Cajon San Diego 0.113%0.0933582%
City Encinitas San Diego 0.061%0.074%0.0630289%
City Escondido San Diego 0.145%0.1192204%
City Imperial Beach San Diego 0.014%0.0118283%
City La Mesa San Diego 0.055%0.068%0.0575593%
City Lemon Grove San Diego 0.022%0.0183911%
City National City San Diego 0.080%0.0656808%
City Oceanside San Diego 0.213%0.1753428%
City Poway San Diego 0.062%0.0511040%
City San Diego San Diego 1.975%2.416%2.0531169%
City San Marcos San Diego 0.089%0.0733897%
City Santee San Diego 0.033%0.0268401%
City Solana Beach San Diego 0.017%0.0138564%
City Vista San Diego 0.052%0.0425144%
Consolidated San Francisco San Francisco 3.026%3.702%3.1457169% County San Joaquin County San Joaquin 1.680%2.055%1.7460399% City Lathrop San Joaquin 0.009%0.0075394%
City Lodi San Joaquin 0.053%0.0439484%
City Manteca San Joaquin 0.054%0.0443454%
City Ripon San Joaquin 0.013%0.0104219%
City Stockton San Joaquin 0.313%0.383%0.3256176%
City Tracy San Joaquin 0.084%0.0692047%
County San Luis Obispo County San Luis Obispo 0.816%0.999%0.8484126% City Arroyo Grande San Luis Obispo 0.024%0.0199053%
City Atascadero San Luis Obispo 0.029%0.0240680%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles)San Luis Obispo 0.043%0.0353456% City Grover Beach San Luis Obispo 0.017%0.0137881%
City Morro Bay San Luis Obispo 0.020%0.0160922%
City San Luis Obispo San Luis Obispo 0.077%0.0637841%
County San Mateo County San Mateo 1.074%1.313%1.1159599% City Belmont San Mateo 0.021%0.0169860%
City Burlingame San Mateo 0.019%0.0152537%
City Daly City San Mateo 0.044%0.0363880%
City East Palo Alto San Mateo 0.013%0.0103982%
City Foster City San Mateo 0.020%0.0166101%
City Half Moon Bay San Mateo 0.004%0.0031638%
City Hillsborough San Mateo 0.013%0.0110029%
City Menlo Park San Mateo 0.015%0.0126209%
City Millbrae San Mateo 0.013%0.0105836%
City Pacifica San Mateo 0.016%0.0130625%
City Redwood City San Mateo 0.056%0.0463511%
City San Bruno San Mateo 0.021%0.0172161%
City San Carlos San Mateo 0.013%0.0108885%
City San Mateo San Mateo 0.052%0.0425841%
City South San Francisco San Mateo 0.043%0.0353943%
County Santa Barbara County Santa Barbara 1.132%1.385%1.1768968% City Carpinteria Santa Barbara 0.001%0.0008938%
City Goleta Santa Barbara 0.004%0.0028969%
City Lompoc Santa Barbara 0.047%0.0389379%
City Santa Barbara Santa Barbara 0.122%0.1004559%
City Santa Maria Santa Barbara 0.058%0.0479179%
County Santa Clara County Santa Clara 2.404%2.941%2.4987553% City Campbell Santa Clara 0.014%0.0112566%
City Cupertino Santa Clara 0.008%0.0066824%
City Gilroy Santa Clara 0.025%0.0202891%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013%0.0103338%
City Los Gatos Santa Clara 0.013%0.0103220%
City Milpitas Santa Clara 0.036%0.0298120%
City Morgan Hill Santa Clara 0.015%0.0124619%
City Mountain View Santa Clara 0.041%0.0334608%
City Palo Alto Santa Clara 0.039%0.0323080%
City San Jose Santa Clara 0.294%0.360%0.3054960%
City Santa Clara Santa Clara 0.067%0.0549723%
City Saratoga Santa Clara 0.004%0.0034161%
City Sunnyvale Santa Clara 0.053%0.0434069%
County Santa Cruz County Santa Cruz 0.783%0.957%0.8135396% City Capitola Santa Cruz 0.020%0.0168191%
City Santa Cruz Santa Cruz 0.143%0.1180348%
City Scotts Valley Santa Cruz 0.015%0.0126525%
City Watsonville Santa Cruz 0.063%0.0520136%
County Shasta County Shasta 1.095%1.339%1.1380191%
City Anderson Shasta 0.024%0.0198896%
City Redding Shasta 0.284%0.2334841%
City Shasta Lake Shasta 0.004%0.0031993%
County Siskiyou County Siskiyou 0.228%0.279%0.2373393%
County Solano County Solano 0.760%0.6260795%
City Benicia Solano 0.031%0.0253903%
City Dixon Solano 0.016%0.0130849%
City Fairfield Solano 0.109%0.0897317%
City Suisun City Solano 0.021%0.0176183%
City Vacaville Solano 0.119%0.0976497%
City Vallejo Solano 0.167%0.1373644%
County Sonoma County Sonoma 1.218%1.490%1.2661290%
City Healdsburg Sonoma 0.032%0.0266929%
City Petaluma Sonoma 0.081%0.0667507%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041%0.0340759%
City Santa Rosa Sonoma 0.184%0.1519070%
City Sonoma Sonoma 0.022%0.0183438%
City Windsor Sonoma 0.016%0.0129298%
County Stanislaus County Stanislaus 1.722%1.4182273%
City Ceres Stanislaus 0.041%0.0340260%
City Modesto Stanislaus 0.217%0.1788759%
City Newman Stanislaus 0.006%0.0046964%
City Oakdale Stanislaus 0.018%0.0145531%
City Patterson Stanislaus 0.015%0.0126590%
City Riverbank Stanislaus 0.010%0.0085699%
City Turlock Stanislaus 0.065%0.0531966%
County Sutter County Sutter 0.306%0.374%0.3179548%
City Yuba City Sutter 0.074%0.0606242%
County Tehama County Tehama 0.213%0.261%0.2216654%
City Red Bluff Tehama 0.014%0.0117771%
County Trinity County Trinity 0.082%0.101%0.0855476%
County Tulare County Tulare 0.809%0.990%0.8410949%
City Dinuba Tulare 0.014%0.0116929%
City Exeter Tulare 0.004%0.0032479%
City Farmersville Tulare 0.003%0.0027879%
City Lindsay Tulare 0.007%0.0057111%
City Porterville Tulare 0.021%0.0171845%
City Tulare Tulare 0.037%0.0302273%
City Visalia Tulare 0.066%0.0545872%
County Tuolumne County Tuolumne 0.486%0.594%0.5047621%
County Ventura County Ventura 2.192%2.681%2.2781201%
City Camarillo Ventura 0.002%0.0012815%
City Fillmore Ventura 0.002%0.0020294%
City Moorpark Ventura 0.008%0.0067337%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156%0.190%0.1617338%
City Port Hueneme Ventura 0.021%0.0174145%
City San Buenaventura (Ventura)Ventura 0.085%0.0702181% City Santa Paula Ventura 0.014%0.0119072%
City Simi Valley Ventura 0.065%0.0533043%
City Thousand Oaks Ventura 0.022%0.0179902%
County Yolo County Yolo 0.357%0.437%0.3713319%
City Davis Yolo 0.055%0.0451747%
City West Sacramento Yolo 0.066%0.0544321%
City Woodland Yolo 0.058%0.0477904%
County Yuba County Yuba 0.214%0.262%0.2225679%
City Marysville Yuba 0.014%0.0112079%
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APPENDIX 2
Cost Reimbursement Procedure
1.Additional defined terms:
a)Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were not previously reimbursed and which were paid or incurred (i) prior to December 31, 2022 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting any CA Allocation Agreement(s) concerning a settlement with any Opioid Defendant(s).
Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs.
b)First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the CVS Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first.
c)Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d)Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses.
2.Cost Reimbursement to Plaintiff Subdivision
a)Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies.
b)Claims Procedure.
i.If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the CVS Settlement DocuSign Envelope ID: 64D2B9C6-4F2E-460D-AA05-3D1D334FA9A9
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Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii.A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii.The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv.The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt.
v.Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 64D2B9C6-4F2E-460D-AA05-3D1D334FA9A9
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reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi.The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the CVS Settlement Agreement.
vii.A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and CVS a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the CVS Settlement Agreement.
c)Claims Priority and Limitation.
i.The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section
2.c.v below.
ii.Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices.
iii.Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv.Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full.
v.In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi.In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the CVS Settlement Agreement, Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs.
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d)Collateral Source Payments and Third-Party Settlement. i.In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii.In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.
DocuSign Envelope ID: 64D2B9C6-4F2E-460D-AA05-3D1D334FA9A9
1 APPENDIX 3
CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the CVS Settlement and their counsel.
In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the CVS Settlement Agreement.
Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the CVS Settlement Agreement and CA CVS Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the CVS Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the CVS Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the CVS Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.
The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the CVS Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE][SUBDIVISION SIGNATURE BLOCK]
[DATE][COUNSEL SIGNATURE BLOCK]
[DATE][ATTORNEY GENERAL SIGNATURE BLOCK]
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DocuSign Envelope ID: 64D2B9C6-4F2E-460D-AA05-3D1D334FA9A9
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OFFICE OF ATTORNEY GENERAL ROB BONTA
JANUARY 27, 2023
PAGE 3
SO AGREED BY AND ON BEHALF OF THE STATE OF CALFORNIA:
N e
Title: t Attorney General
Date:
8524664.1
1/30/2023
DocuSign Envelope ID: 64D2B9C6-4F2E-460D-AA05-3D1D334FA9A9
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE April 4, 2023
SUBJECT: Public Hearing to Consider an Ordinance Amending Chapter 3.01 of the Beaumont Municipal Code – Specific Provisions for Bidding, Contracting and Purchases
Description Adoption of an ordinance amending Beaumont Code Chapter 3.01.
Background and Analysis:
At the City Council meeting of March 7, 2023, City Council directed staff to modify Beaumont Municipal Code (BMC) Chapter 3.01 – Specific Provisions for Bidding, Contracting and Purchases, to allow the City Manager’s signing authority to be up to $75,000 for public projects, maintenance and general services, and materials, supplies, and equipment (Sections 3.01.030, 3.01.040, and 3.01.050).
Public Works Projects
To ensure compliance with the State’s Public Contract Code (PCC), staff researched those bidding requirements that for a city, such as Beaumont, that has adopted the uniform construction cost accounting procedures, and found Section 22032 states, in part, the following:
(a) Public projects of sixty thousand dollars ($60,000) or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order.
(b) Public projects of two hundred thousand dollars ($200,000) or less may be let to contract by informal procedures as set forth in this article. (c) Public projects of more than two hundred thousand dollars ($200,000) shall, except as otherwise provided in this article, be let to contract by formal bidding procedure.
To allow staff the ability to stay in compliance with the State’s code, it is recommended that City Council authorize one of two options for public works projects:
(1) Modify the BMC to affirm the City Manager’s authority to approve public works contracts by informal procedures as outlined in PCC Section 22032; or (2) Modify the BMC to bring forth to City Council for approval of public works contracts by informal procedures as outlined in PCC Section 22032.
Should Council modify the BMC to provide for Option No.1, it is recommended that additional language be added to Section 3.01.030 as follows:
The City Manager shall report to the City Council all such public projects awarded by the public project informal bidding procedure within ninety (90) days of the date of the award.
Non-Public Works Projects
Non-public projects include maintenance work as defined in PCC Section 22002(d).
The following are examples of maintenance work:
A. Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; B. Minor repainting;
C. Street and highway maintenance, including utility patching, skin patching, crack filling, filling of potholes, slurry sealing, edge grading, street striping, resurfacing of streets and highways at less than one-inch, sign replacement, sidewalk repair and replacement, curb and gutter repair and replacement, and street and traffic light repair and replacement. Maintenance work shall not include striping of a new street or highway;
D. Sewer maintenance, including foaming, videotaping, cleaning and manhole restoration;
E. Traffic signal maintenance. Maintenance work shall not include insta llation of new traffic signals;
F. Storm drain related maintenance;
G. Landscape maintenance, including mowing, watering, trimming, pruning, planting, tree and plant replacement, irrigation and sprinkler system servicing, retrofit and repair and landscape rehabilitation;
H. Maintenance of facilities, including roof repairs or replacements, heating and air conditioning repairs and electric repairs;
I. Vehicle and equipment maintenance and repairs;
J. Work performed to keep, operate, and maintain publicly owned waste disposal systems, including, but not limited to dams, reservoirs and waste treatment systems.
To keep consistency within the procurement process, staff recommends that non -public works projects follow similar requirements as discussed above under Public Works Projects.
Materials, Supplies, and Equipment
Finally, the third area included in BMC Chapter 3.01 is bidding requirements for materials, supplies, and equipment. Like the other two areas, staff is recommending that Council keep consistency when determining modifications to the current code.
Attached is a draft revised ordinance for Council review, with staff’s recommendation to follow the State’s PCC for all three areas as discussed above in Option No. 1. Other cities that follow PCC Section 22032 include Banning, San Jacinto, and Rialto, just to name a few.
The City Attorney has reviewed and approved this ordinance and proposed changes.
Fiscal Impact:
The cost to prepare this staff report is estimated at $2,500.
Recommended Action:
Hold a Public Hearing; and
Waive the full reading and approve the first reading by title only, “An Ordinance of the City Council of the City of Beaumont, California, Amending Chapter 3.01 to the City of Beaumont Municipal Code.”
Attachments:
A. Ordinance
B. Chapter 3.01 with redlines
C. Public Notice
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF BEAUMONT, CALIFORNIA AMENDING CHAPTER
3.01 CONCERNING SPECIFIC PROVISIONS FOR
BIDDING, CONTRACTING AND PURCHASES OF THE
CITY OF BEAUMONT MUNICIPAL CODE
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BEAUMONT DOES ORDAIN AS FOLLOWS:
SECTION 1. CEQA. The City Council finds that the actions contemplated by this Ordinance are exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
SECTION 2. Severability. The City Council hereby declares that if any provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid or unconstitutional by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, such invalidity shall not affect the other provisions, sections, paragraphs, sentences or words of this Ordinance, and to this end the provisions of this Ordinance are severable.
The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance enforced.
SECTION 3. Chapter 3.01 are hereby amended and restated in full to read as attached hereto as Exhibit “A”.
SECTION 4. Effective Date and Publication. The Mayor shall sign and the City Clerk shall certify to the passage of this Ordinance and cause the same or a summary thereof to be published within 15 days after adoption in accordance with Government Code Section 36933. This Ordinance shall take effect 30 days after adoption in accordance with Government Code Section 36937.
NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Beaumont, California, approves this amendment to the City Code.
INTRODUCED AND READ for the first time and ordered posted at a regular meeting of the City Council of the City of Beaumont, California, held on the 4th day of April 2023, by the following roll call vote:
AYES:
NOES
ABSENT:
ABSTAIN
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Beaumont, California, held on the 18th day of April 2023, by the following roll call vote:
AYES:
NOES
ABSENT:
ABSTAIN
_______________________
Julio Martinez III, Mayor
Attest:
_______________________
Nicole Wheelwright, Deputy City Clerk
Chapter 3.01.000 – Specific Provisions for Bidding, Contracting, and Purchases Sections:
3.01.010 Definitions.
3.01.020 General Purchasing Policies and Procedures.
3.01.030 Bidding Requirements for Public Projects.
3.01.040 Bidding Requirements for Maintenance and General Services.
3.01.050 Bidding Requirements for Materials, Supplies, and Equipment.
3.01.060 Formal Bidding Procedure for Public Projects.
3.01.070 Informal Bidding Procedure for Certain Public Projects.
3.01.080 Formal Bidding Procedure for Non-Public Projects.
3.01.090 Informal Bidding Procedure for Non-Public Projects.
3.01.100 Exceptions to Competitive Bidding on Public Projects.
3.01.110 Exceptions to Competitive Bidding on Non-Public Projects.
3.01.120 City Manager Authorization to Execute Contracts.
3.01.010 Definitions.
Unless otherwise indicated, the following definitions shall apply to all provisions of this chapter:
"Alternative procedure" means purchasing supplies, services or equipment by negotiated contract, purchase order or any other procedure outlined in the City's purchasing and bidding policies and procedures manual approved by the City Manager and consistent with this chapter.
A type of alternative procedure may include, but is not limited to, what will be referred to as a "simplified pricing procedure" wherein the Authorized Contracting Party, or his or her designee, obtains oral price quotes from one or more potential contractors or suppliers, and accepts the quote which is determined to be in the best interests of the City. "Authorized Contracting Party" means the City official or body provided with authority under this chapter by the City Manager to approve a contract or to make a purchase. "City Manager" means the City Manager or person designated by the City Manager to perform all or some of the duties prescribed in this chapter. "Commission" means the California Uniform Construction Cost Accounting Commission created by Division 2, Part 3, Chapter 2, Article 2 of the California Public Contract Code (Section 22000 et seq.).
"Emergency" for purposes of public projects shall have that meaning provided in California Public Contract Code Sections 22035 and 22050. Emergency for all other purchasing or contracting purposes means a situation which makes competitive bidding, either formal or informal, impractical or not in the best interests of the City. "Facility" means any plant, building, structure, ground facility, utility system (subject to the limitation found in California Public Contract Code Section 22002, Subdivision (c)(3)), real property, streets and highways, or other public work improvement. "General services" means all services performed by persons not in a professional occupation, including, but not limited to, contract services for park, electrical and computer
repair, building, facility and vehicle maintenance, recreation programs and other similar services which are not professional services.
"Maintenance work" shall have that meaning provided in Section 22002(d) of the Public Contract Code, as that section may be amended from time to time. In addition and to the extent not inconsistent with Section 22002(d), maintenance work shall include, but shall not be limited to, the following:
A. Routine, recurring and usual work for the preservation or protection of an y publicly owned or publicly operated facility for its intended purposes; B. Minor repainting;
C. Street and highway maintenance, including utility patching, skin patching, crack filling, filling of pot holes, slurry sealing, edge grading, street striping, resurfacing of streets and highways at less than one-inch, sign replacement, sidewalk repair and replacement, curb and gutter repair and replacement, and street and traffic light repair and replacement. Maintenance work shall not include striping of a new street or highway;
D. Sewer maintenance, including foaming, videotaping, cleaning and manhole restoration; E. Traffic signal maintenance. Maintenance work shall not include installation of new traffic signals;
F. Storm drain related maintenance;
G. Landscape maintenance, including mowing, watering, trimming, pruning, planting, tree and plant replacement, irrigation and sprinkler system servicing, retrofit and repair and landscape rehabilitation;
H. Maintenance of facilities, including roof repairs or replacements, heating and air conditioning repairs and electric repairs;
I. Vehicle and equipment maintenance and repairs;
J. Work performed to keep, operate, and maintain publicly owned waste disposal systems, including, but not limited to dams, reservoirs and waste treatment systems. "Professional services" means all services performed by persons in a professional occupation, including, but not limited to, consulting and performance services for legal services, accounting, auditing, computer hardware and software support, engineering, architectural, planning, environmental, redevelopment, financial, economic, personnel, social services, animal control, management, solid waste, cable television, communication and other similar professional functions which may be necessary for the operation of the City. Professional Services are governed by chapter 3.02.
"Public project" shall have that meaning provided in Section 22002(c) of the Public Contract Code, as that section may be amended from time to time. A public project shall not include maintenance work. In addition and to the extent not inconsistent with Section 22002(c), public project shall include, but shall not be limited to, the following:
1. Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased or operated facility;
2. Street or sewer work except maintenance and repair;
3. Painting or repainting of any publicly owned, leased, or operated facility; and
4. In the case of a publicly owned utility system, public project shall include only the construction, erection, improvement, or repair of dams, reservoirs, and wastewater treatment plants.
"Public project formal bidding procedure" means the procedure provided for in Section
3.01.060 which meets the requirements of state and local law, including Public Contract Code Section 22037, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.
"Public project informal bidding procedure" means a procedure provided for in Section
3.01.070 which meets the requirements of state and local law, including Public Contract Code Section 22034, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.
"Purchasing Officer" means the City Manager or his or her designee(s) as provided in Section 3.00.020. Pursuant to Section 3.00.020, the City Manager may change his or her designation at any time.
"Non-public project formal bidding procedure" means the procedure provided for in Section 3.01.080 which meets the requirements of state and local law, including the Public Contract Code, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.
"Non-public project informal bidding procedure" means the procedure provided for in Section 3.01.090 which meets the requirements of state and local law, including the Public Contract Code, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.
3.01.020 General purchasing policies and procedures.
A. The City shall secure supplies, services, and equipment at the lowest total cost commensurate with the quality and scope needed, and subject to any limitations imposed by state law.
B. The Purchasing Officer shall develop, for approval by the City Manager, such policies and procedures as are necessary to implement the provisions of this chapter. The policies and procedures shall be written and implemented in such a way to encourage open and competitive bidding, where appropriate, provide equal opportunity based on merit, make each selection process free of invidious discrimination, provide for efficient and timely acquisition of needed supplies, services and equipment, and provide effective fiscal controls.
C. In purchasing, supplies, services and equipment, the City shall make use of competitive bidding, both formal and informal, whenever required by law, this chapter or any policies and procedures approved by the City Manager consistent with this chapter.
D. Formal and informal competitive bidding is not required, for instance, when an emergency is declared pursuant to this chapter.
E. Except in cases of emergency or unless specifically authorized by resolution or minute order of the City Council, the Purchasing Officer shall not issue a purchase order for supplies, services or equipment involving any project or purchase unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.
F. The City shall comply with all federal and state bidder's security and bonding requirements and all prevailing wage laws applicable to each contract or purchase.
G. The Purchasing Officer, with approval of the City Manager, may provide written authorization to any department director to conduct a bidding process outside of the centralized purchasing system; provided, however, that such bidding process and the resulting contract or purchase shall otherwise comply with the requirements of this chapter.
The Purchasing Officer, with approval of the City Manager, may rescind such authorization in writing at any time and for any or no reason.
3.01.030 Bidding requirements for public projects.
A. Alternative Procedure (up to $60,000.00) (Administrative Approval). Public projects with cost estimates of $60,000.00) or less may be awarded by the City Manager, upon recommendation of the director of the department responsible for the project, by any alternative procedure as defined in Section 3.01.010.
Alternative Procedure (more than $25,000.00—$45,000.00) (City Council Approval).
Public projects with cost estimates of more than $25,000.00, but less than, or equal to $45,000.00 may be awarded by the City Council, upon recommendation of the City Manager, by any alternative procedure as defined in Section 3.01.010.
B. Informal Procedure (more than $60,000.00 —less than $200,000.00). Public projects with cost estimates of more than $60,000.00, but less than, or equal to, $200,000.00 shall, except as otherwise provided in this chapter or the Public Contract Code, be awarded by the City Manager pursuant to the public project informal bidding procedure in Section 3.01.070. The City Manager shall report to the City Council all such public projects awarded by the public project informal bidding procedure within ninety (90) days of the date of the award. If all bids received are over $200,000.00 , the City Council may, with the approval of a four-fifths vote of those members present, award the contract in an amount not exceeding $212,500.00 to the lowest responsive and responsible bidder, so long as the City Council also determines that the City's cost estimate for the project was reasonable.
C. Formal Procedure (more than $200,000). Public projects with cost estimates of more than $200,000 shall, except as otherwise provided in this chapter or the Public Contract Code, be awarded by the City Council pursuant to the public project formal bidding procedure in Section 3.01.060.
D. City Engineer Review. The City Engineer or his designee shall review the working details, drawings, plans and specifications prepared for every maintenance project and other general services project which may affect the design or operation of public improvements and
which may bring into question the City's liability for dangerous condition of public property.
E. City Council Approval. The City Council shall review and approve the working details, drawings, plans and specifications prepared for every public project of more than $200,000.
F. Award. Contracts for public projects of $60,000.00 or less, may be awarded in the best interests of the City. Contracts for public projects of more than $200,000.00 , if awarded, shall be awarded to the lowest responsive and responsible bidder. If two or more bids are the same and the lowest, the Authorized Contracting Party may accept the one it chooses in his or her sole and absolute discretion.
G. Dollar Limits and Change Orders or Amendments. The dollar limits indicated herein shall apply to the original contract and to any amendments or change orders. To this end, therefore, unless an exception provided in Section 3.01.100 applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable to the increased contract amount.
H. No Bid Splitting. The City shall not split a project, work, service or purchase into smaller projects, works, services or purchases for the purpose of avoiding any bidding or contracting requirements of this Code. 3.01.040 Bidding requirements for maintenance and general services.
A. Alternative Procedure (up to $60,000.00) (Administrative Approval). Maintenance work and other general services projects with cost estimates of $75,000.00 or less may be awarded by the City Manager, upon recommendation of the director of the department responsible for the project, by any alternative procedure as defined in Section 3.01.010. . Alternative Procedure (more than $25,000.00—$45,000.00) (City Council Approval).
Maintenance work and other general services projects with cost estimates of more than $25,000.00, but less than, or equal to $45,000.00 may be awarded by the City Council, upon recommendation of the City Manager, by any alternative procedure as defined in Section
3.01.010.
B. Informal Bidding Procedure (more than $60,000.00—up to $200,000.00 ). Maintenance work and other general services projects with cost estimates of more than $60,000,.00 , but less than or equal to $200,000.00 shall, except as otherwise provided in this chapter, be awarded by the City Manager pursuant to the non-public project informal bidding procedure contained in in Section 3.01.090. The City Manager shall report to the City Council such maintenance work and other general services projects awarded by the informal bidding procedure within ninety (90) days of the date of the award.
C. Formal Bidding Procedure (more than $200,000.00). Maintenance work and other general services projects with cost estimates of more than $200,000.00 shall, except as otherwise provided in this chapter, be awarded by the City Council pursuant to the non-public project formal bidding procedure contained in Section 3.01.080.
D. City Engineer Review. The City Engineer or his designee shall review the working details, drawings, plans and specifications prepared for every maintenance project and other general services project which may affect the design or operation of public improvements, and
which may bring into question the City’s liability for dangerous condition of public property.
E. Purchasing Officer Approval. The Purchasing Officer, or his or her designee, shall review and approve the working details, drawings, plans and specifications prepared for every maintenance work and other general services project.
F. City Council Approval. The City Council shall review and approve the working details, drawings, plans and specifications prepared for every maintenance work and other general services project of more than $200,000.00.
G. Award. Contracts for maintenance work and other general services projects of $60,000.00 or less, if awarded, may be awarded in the best interests of the City. Contracts for maintenance work and other general services projects of more than $60,000.00, if awarded, shall be awarded to the lowest responsive and responsible bidder. If two or more bids are the same and the lowest, the Authorized Contracting Party may accept the one it chooses.
H. Subsequent Contract Awards, Amendments, Extensions or Renewals. Notwithstanding anything herein to the contrary, the City Manager shall not award a subsequent contract to the same individual or entity for the same or similar services on the same project, or amend, extend or renew such a contract, without City Council approval, when the award, amendment, extension or renewal will result in the City paying an aggregate amount of more than $200,000.00 to the individual or entity in any given fiscal year. For purposes of this section, the phrase "same project" shall include an on-call or as-needed contract.
I. Term Limitation. No maintenance work or other general services contract, except for contracts for solid waste services, may extend for longer than a three-year initial term with a maximum of two, one-year extensions each of which must be approved by the City Council.
J. No Bid Splitting. The City shall not split a project, work, service or purchase into smaller projects, works, services or purchases for the purpose of avoiding any bidding or contracting requirements of this Code.
3.01.050 Bidding requirements for materials, supplies and equipment.
A. Alternative Procedure (up to $60,000) (Administrative Approval). Purchases of materials, supplies and equipment of $60,000.00 or less may be awarded by the City Manager, upon recommendation of the director of the department responsible for the project, by any alternative procedure as defined in Section 3.01.010.
Alternative Procedure (more than $25,000.00—$45,000.00) (City Council Approval).
Purchases of materials, supplies and equipment of more than $25,000.00, but less than, or equal to $45,000.00 may be awarded by the City Council, upon recommendation of the City Manager, by any alternative procedure as defined in Section 3.01.010.
B. Informal Bidding Procedure (more than $60,000.00 —less than $200,000.00). Purchases of materials, supplies and equipment of more than $60,000.00 , but less than or equal to $200,000.00 shall, except as otherwise provided in this chapter, be awarded by the City Manager pursuant to the non-public project informal bidding procedure provided for in Section 3.01.090. The City Manager shall report to the City Council such Purchases of materials, supplies and equipment awarded by the informal bidding procedure within ninety (90) days of the date of the award.
C. Formal Bidding Procedure ($200,000.00 or more). Purchases of materials, supplies and equipment of more than $200,000.00 shall, except as otherwise provided in this chapter, be awarded by the City Council pursuant to the non-public project formal bidding procedure provided for in Section 3.010.080.
D. Department Director Approval. The director of the appropriate department shall review and approve the specifications prepared for every purchase of materials, supplies and equipment.
E. Purchasing Officer Approval. The Purchasing Officer, or his or her designee, shall review and approve all contracts for the purchase of materials, supplies and equipment.
F. City Council Approval. The City Council shall review and approve the specifications prepared for every purchase of materials, supplies and equipment of more than $200,000.
G. Award. Contracts for the purchase of materials, supplies and equipment of $60,000 or less, if awarded, may be awarded in the best interests of the City pursuant to Section 3.01.040.G.
Contracts for the purchase of materials, supplies and equipment of more than $60,000.00 , if awarded, shall be awarded to the lowest responsive and responsible bidder pursuant to Section 3.01.040.G. If two or more bids are the same and the lowest, the Authorized Contracting Party may accept the one he or she chooses in his or her sole discretion.
H. Local Bidder Preference. In order to promote the economic health of the City and to encourage local participation in the procurement of materials, supplies and equipment, the City may take into consideration the sales tax to be returned to the City as a result of an award in determining the lowest responsive and responsible bidder. This section shall not be effective unless and until the City Manager adopts a written policy to implement its provisions.
I. No Bid Splitting. The City shall not split a project, work, service or purchase into smaller projects, works, services or purchases for the purpose of avoiding any bidding or contracting requirements of this Code.
3.01.060 Formal bidding procedure for public projects.
A. Uses of Formal Bidding Procedure. This formal bidding procedure shall be used whenever formal bidding is required for a public project.
B. Required Process. The formal competitive bidding procedure shall comply with all aspects of state and local law governing formal competitive bidding, including, but not limited to, the California Public Contract Code, California Government Code, California Labor Code, resolutions of the City Council as may be adopted from time to time, and policies and procedures as the City Manager may approve from time to time.
C. Notice Inviting Formal Bids. Notice inviting formal bids shall be provided. The notice inviting formal bids shall comply with Public Contract Code Section 22037, as such section may be amended from time to time. Notices shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. At a minimum, the notice inviting formal bids shall:
1. Describe the project;
2. State how to obtain more detailed information about the project;
3. State the date, time and place for the submission of sealed bids; and
4. Include any other information required by state or local law, as determined by the City Attorney.
D. Published Notice. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation printed and published in the City, or, if there is no such newspaper, in a newspaper of general circulation which is circulated in the City.
E. Distribution of Notice Inviting Formal Bids. The notice inviting formal bids shall also be sent to those construction trade journals specified in Public Contract Code Section 22036 at least 30 calendar days before the date of bid opening.
F. Additional Notice. The City shall also provide any additional notice as it deems proper.
G. Contents of Remaining Bid and Contract Documents. The contents and form of the bid and contract documents shall be approved by the director of the appropriate department, as well as the City Attorney.
H. City's Authority. The City may reject any or all bids received, and may waive any minor irregularities in each bid received.
I. No Bids Received. If no bids are received, the Authorized Contracting Party may award the contract by any alternative procedure.
J. Award of Contract. The contract shall be awarded in accordance with Section 3.01.030. If two or more bids are the same and the lowest, the City may accept the one it chooses in its sole and absolute discretion.
K. Rejection of Bids. The City may, in its sole and absolute discretion, reject any bids presented. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates for the project, the City shall have the option of any of the following:
1. Abandon the project; or
2. Re-advertise for bids in the manner described in this chapter; or
3. By passage of a resolution by a four-fifths vote of the City Council, declare that the project can be performed more economically by the employees of the City and have the project done by force account.
3.01.070 Informal bidding procedure for certain public projects.
A. Uses of Public Project Informal Bidding Procedure. This informal bidding procedure shall be used when a public project is involved, and informal bidding is permitted by this chapter.
B. Distribution of Notice Inviting Informal Bids to Contractor List. The Purchasing Officer shall provide a notice inviting informal bids not less than ten calendar days before the bids are due. The notice inviting informal bids shall be mailed or provided to all construction trade journals specified in Public Contract Code Sections 22034 and 22036.
C. Contents of Notice Inviting Informal Bids. At a minimum, the notice inviting informal bids shall:
1. Describe the project in general terms;
2. State how to obtain more detailed information about the project;
3. State the date, time and place for the submission of sealed bids; and
4. Include any other information required by state or local law, as determined by the City Attorney.
D. Proprietary Projects or Products. If the director of the appropriate department certifies that, to the best of his or her knowledge, the product or service is proprietary in nature and can be obtained only from a limited number of contractors, and that no equivalent products or services are available, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the appropriate department, as well as the City Attorney.
F. City's Authority. The City may reject any or all bids received, and may waive any minor irregularities in each bid received.
G. No Bids Received. If no bids are received, the Authorized Contracting Party may award the contract by any alternative procedure.
H. Award of Contract. The contract shall be awarded in accordance with Section 3.01.030.F. If two or more bids are the same and the lowest, the City may accept the one it chooses in its sole and absolute discretion.3.01.080 Formal bidding procedure for non-public projects.
A. Uses of the Non-Public Project Formal Bidding Procedure. A formal bidding procedure shall be used whenever formal bidding is required by this chapter and the project does not involve a public project.
B. Distribution of Notice Inviting Formal Bids or Request for Proposals. A notice inviting formal bids or a request for proposals, as appropriate, shall be published at least 14 calendar days before the date of opening the bids or proposals in a newspaper of general circulation printed and published in the City, or, if there is no such newspaper, in a newspaper of general circulation which is circulated in the City. The notice inviting formal bids or request for proposals may also be provided directly to vendors or contractors. The City shall endeavor to receive formal bids or proposals from at least three vendors or contractors. A notice inviting bids shall be used whenever the project or purchase must be awarded to the lowest responsible and responsive bidder. A request for proposals may be used whenever the project or purchase is not required to be awarded to the lowest responsible and responsive bidder. If the Purchasing Officer and the director of the appropriate department certify that, to the best of their knowledge, there is no local source or local provider available for the project, the notice inviting bids or the request for proposals, as appropriate, may be distributed to a list of qualified vendors maintained by the Purchasing Officer and/or published in a trade journal appropriate to the project, in lieu of publication in a newspaper of general circulation.
C. Contents of Notice Inviting Formal Bids or Request for Proposals. At a minimum, the notice inviting formal bids or request for proposals shall:
1. Describe the project or purchase in general terms;
2. State how to obtain more detailed information about the project or purchase;
3. State the date, time and place for the submission of bids or proposals; and
4. Include any other information required by state or local law, as determined by the City Attorney. Bids for purchases of more than $200,000.00 shall be sealed bids.
D. Proprietary Projects or Sole Source Products. If the director of the appropriate department certifies that, to the best of his or her knowledge, the product or service is proprietary in nature and can be obtained only from a limited number of vendors or contractors, and that no equivalent products or services are available, the notice inviting formal bids or request for proposals may be sent exclusively to such vendor(s) or contractor(s).
E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the appropriate department, as well as the City Attorney.
F. City's Authority. The City may reject any or all bids or proposals received, and may waive any minor irregularities in each bid or proposal received.
G. No Bids Received. If no bids are received, the Authorized Contracting Party may award the contract by any alternative procedure.
3.01.090 Informal bidding procedure for non-public projects.
A. Uses of Non-Public Project Informal Bidding Procedure. This informal bidding procedure shall be used whenever informal bidding is allowed for a purchase which does not involve a public project.
B. Distribution of Notice Inviting Informal Bids or Request for Proposals. A Notice inviting informal bids or request for proposals, as appropriate, shall be provided. The notice inviting informal bids or requests for proposals shall be provided to at least three vendors or contractors, and the City shall endeavor to receive informal bids or proposals from at least three vendors or contractors. A notice inviting bids shall be used whenever the project or purchase must be awarded to the lowest responsible and responsive bidder. A request for proposals may be used whenever the project or purchase is not required to be awarded to the lowest responsible and responsive bidder.
C. Contents of Notice Inviting Informal Bids or Request for Proposals. At a minimum, the notice inviting informal bids or request for proposals shall:
1. Describe the project or purchase in general terms;
2. State how to obtain more detailed information about the project or purchase;
3. State the date, time and place for the submission of bids or proposals; and
4. Include any other information required by state or local law, as determined by the City Attorney. Bids for purchases of more than $60,000.00 shall be sealed bids.
D. Proprietary Projects or Products. If the director of the appropriate department certifies that, to the best of his or her knowledge, the product or service is proprietary in nature and can be obtained only from a limited number of vendors or contractors, and that no equivalent products or services are available, the notice inviting informal bids or request for proposals may be sent exclusively to such vendor(s) or contractor(s).
E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the appropriate department, as well as the City Attorney.
F. City's Authority. The City may reject any or all bids or proposals received, and may waive any Minor irregularities in each bid or proposal received.
G. No Bids or Proposals Received. If no bids or proposals are received, the Authorized Contracting Party may award the contract by any alternative purchasing procedure.
3.01.100 Exceptions to competitive bidding on public projects.
In addition to the situations described in Section 3.01.030, competitive bidding, either formal or informal, is not required for public projects in the situations provided for in this section. Under such conditions, the alternative procedure may be used.
A. Emergencies. In situations determined by the City Manager to constitute an emergency for repair or replacement of a public project pursuant to Public Contract Code Section 22035 and Public Contract Code Section 22050, the City Council hereby delegates to the City Manager the power to declare a public emergency and take any directly related and immediate action required by the emergency, up to a total of $200,000.00, pursuant to California Public Contract Code Section 22035 and California Public Contract Code Section 22050. Emergency expenditures of more than $200,000.00 shall first be approved by the City Council. Work may be performed without the benefit of competitive bidding, either formal or informal, only so long as necessary under those sections.
For projects of more than $60,000.00, a report on the emergency and work performed shall be provided at the next regular meeting of the City Council, and then at every meeting thereafter required by California Public Contract Code Section 22050. At such meetings, the City Council shall determine, by a four-fifths vote, that there is a need to continue the action without the benefit of informal or formal competitive bidding in accordance with California Public Contract Code Section 22035 and California Public Contract Code Section 22050. The City Council shall terminate the emergency action at the earliest possible date that conditions warrant, so that the remainder of the emergency action may be completed pursuant to a formal bidding procedure or other applicable procedure.
For projects of $200,000.00 or less, the City Manager shall determine, on his or her own as the action continues, whether there is a need to continue the action without the benefit of the applicable bidding procedure. The City Manager shall terminate the emergency action at the earliest possible date that conditions warrant, so that the remainder of the emergency action may be completed pursuant to the applicable bidding procedure.
B. No Competitive Market. When the City Council determines, in accordance with applicable law, that a competitive market does not exist and that no competitive advantage will be gained by the public bidding process.
C. No Bids Received. When no bids are received pursuant to either the public project informal bidding procedure or the public project formal bidding procedure the Purchasing Officer may proceed by the alternative procedure.
D. Otherwise Authorized. When otherwise authorized by this chapter or applicable law including, but not limited to Public Contract Code Section 22160 et seq. concerning design build.
3.01.110 Exceptions to competitive bidding on non-public projects.
In addition to the situations described in Sections 3.01.090 through 3.01.100, competitive bidding, either formal or informal, is not required for non-public projects in the situations provided for in this section. Under such conditions, any alternative procedure, including no bidding, may be used with the City Manager's approval.
A. Emergencies. In situations determined by the Authorized Contracting Party to constitute an emergency, as defined in Section 3.01.010.
B. No Competitive Market. When the City Council determines, in accordance with applicable law, that a competitive market does not exist and that no competitive advantage will be gained by the public bidding process.
C. Competitive Bidding Already Completed. When the Authorized Contracting Party determines that a competitive bid procedure has been conducted by another public agency (e.g., through CMAS or GSA) and the price to the City is equal to or better than the price to that public agency.
D. State Purchase. When the purchase is made on behalf of the City by the State Department of General Services.
E. Purpose of Bidding is Otherwise Accomplished. When the City Manager determines that it is in the best interest of the City and its administrative operations to dispense with public bidding for non-public projects under this chapter. Prior City Council concurrence with the City Manager's determination shall be required for non-public project purchases over $200,000.00.
F. No Bids Received. When no bids are received non-public project formal or informal bidding procedures.
G. Expenses. The reimbursement or payment of travel expenses and other employee expenses.
H. Insurance. The payment of any insurance premiums or claims, including employee medical payments.
I. Real Property. The purchase or lease of real property with City Council approval.
J. Banking. Banking services.
K. Otherwise Authorized. When otherwise authorized by this chapter or applicable law.
3.01.120 City Manager authorization to execute contracts.
Pursuant to the California Government Code, the Mayor must execute all contracts on behalf of the City, unless another City officer or employee is authorized to do so. The City
Manager and his or her designees, as explicitly set forth in this chapter and the administrative policies implementing this chapter, are hereby authorized to execute contracts on behalf of the City.
TITLE 3 - REVENUE AND FINANCE
Chapter 3.01 SPECIFIC PROVISIONS FOR BIDDING, CONTRACTING AND PURCHASES
Beaumont, California, Code of Ordinances Created: 2023-03-13 17:32:41 [EST] (Supp. No. 7, Update 1)
Chapter 3.01 SPECIFIC PROVISIONS FOR BIDDING, CONTRACTING AND
PURCHASES
3.01.010 Definitions.
Unless otherwise indicated, the following definitions shall apply to all provisions of this chapter:
"Alternative procedure" means purchasing supplies, services or equipment by negotiated contract, purchase order or any other procedure outlined in the City's purchasing and bidding policies and procedures manual approved by the City Manager and consistent with this chapter. A type of alternative procedure may include, but is not limited to, what will be referred to as a "simplified pricing procedure" wherein the Authorized Contracting Party, or his or her designee, obtains oral price quotes from one or more potential contractors or suppliers, and accepts the quote which is determined to be in the best interests of the City. "Authorized Contracting Party" means the City official or body provided with authority under this chapter by the City Manager to approve a contract or to make a purchase. "City Manager" means the City Manager or person designated by the City Manager to perform all or some of the duties prescribed in this chapter.
"Commission" means the California Uniform Construction Cost Accounting Commission created by Division 2, Part 3, Chapter 2, Article 2 of the California Public Contract Code (Section 22000 et seq.). "Emergency" for purposes of public projects shall have that meaning provided in California Public Contract Code Sections 22035 and 22050. Emergency for all other purchasing or contracting purposes means a situation which makes competitive bidding, either formal or informal, impractical or not in the best interests of the City. "Facility" means any plant, building, structure, ground facility, utility system (subject to the limitation found in California Public Contract Code Section 22002, Subdivision (c)(3)), real property, streets and highways, or other public work improvement.
"General services" means all services performed by persons not in a professional occupation, including, but not limited to, contract services for park, electrical and computer repair, building, facility and vehicle maintenance, recreation programs and other similar services which are not professional services. "Maintenance work" shall have that meaning provided in Section 22002(d) of the Public Contract Code, as that section may be amended from time to time. In addition and to the extent not inconsistent with Section 22002(d), maintenance work shall include, but shall not be limited to, the following:
A. Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes;
B. Minor repainting;
C. Street and highway maintenance, including utility patching, skin patching, crack filling, filling of pot holes, slurry sealing, edge grading, street striping, resurfacing of streets and highways at less than one- inch, sign replacement, sidewalk repair and replacement, curb and gutter repair and replacement, and street and traffic light repair and replacement. Maintenance work shall not include striping of a new street or highway;
D. Sewer maintenance, including foaming, videotaping, cleaning and manhole restoration; E. Traffic signal maintenance. Maintenance work shall not include installation of new traffic signals;
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F. Storm drain related maintenance;
G. Landscape maintenance, including mowing, watering, trimming, pruning, planting, tree and plant replacement, irrigation and sprinkler system servicing, retrofit and repair and landscape rehabilitation; H. Maintenance of facilities, including roof repairs or replacements, heating and air conditioning repairs and electric repairs;
I. Vehicle and equipment maintenance and repairs;
J. Work performed to keep, operate, and maintain publicly owned waste disposal systems, including, but not limited to dams, reservoirs and waste treatment systems. "Professional services" means all services performed by persons in a professional occupation, including, but not limited to, consulting and performance services for legal services, accounting, auditing, computer hardware and software support, engineering, architectural, planning, environmental, redevelopment, financial, economic, personnel, social services, animal control, management, solid waste, cable television, communication and other similar professional functions which may be necessary for the operation of the City. Professional Services are governed by chapter 3.02.
"Public project" shall have that meaning provided in Section 22002(c) of the Public Contract Code, as that section may be amended from time to time. A public project shall not include maintenance work. In addition and to the extent not inconsistent with Section 22002(c), public project shall include, but shall not be limited to, the following:
1. Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased or operated facility;
2. Street or sewer work except maintenance and repair;
3. Painting or repainting of any publicly owned, leased or operated facility; and
4. In the case of a publicly owned utility system, public project shall include only the construction, erection, improvement, or repair of dams, reservoirs and wastewater treatment plants. "Public project formal bidding procedure" means the procedure provided for in Section 3.01.060 which meets the requirements of state and local law, including Public Contract Code Section 22037, this chapter and any policies and procedures approved by the City Manager consistent with this chapter. "Public project informal bidding procedure" means a procedure provided for in Section 3.01.070 which meets the requirements of state and local law, including Public Contract Code Section 22034, this chapter and any policies and procedures approved by the City Manager consistent with this chapter. "Purchasing Officer" means the City Manager or his or her designee(s) as provided in Section 3.00.020.
Pursuant to Section 3.00.020, the City Manager may change his or her designation at any time. "Non-public project formal bidding procedure" means the procedure provided for in Section 3.01.080 which meets the requirements of state and local law, including the Public Contract Code, this chapter and any policies and procedures approved by the City Manager consistent with this chapter. "Non-public project informal bidding procedure" means the procedure provided for in Section 3.01.090 which meets the requirements of state and local law, including the Public Contract Code, this chapter and any policies and procedures approved by the City Manager consistent with this chapter. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
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3.01.020 General purchasing policies and procedures.
A. The City shall secure supplies, services and equipment at the lowest total cost commensurate with the quality and scope needed, and subject to any limitations imposed by state law.
B. The Purchasing Officer shall develop, for approval by the City Manager, such policies and procedures as are necessary to implement the provisions of this chapter. The policies and procedures shall be written and implemented in such a way to encourage open and competitive bidding, where appropriate, provide equal opportunity based on merit, make each selection process free of invidious discrimination, provide for efficient and timely acquisition of needed supplies, services and equipment, and provide effective fiscal controls.
C. In purchasing, supplies, services and equipment, the City shall make use of competitive bidding, both formal and informal, whenever required by law, this chapter or any policies and procedures approved by the City Manager consistent with this chapter.
D. Formal and informal competitive bidding is not required, for instance, when an emergency is declared pursuant to this chapter.
E. Except in cases of emergency or unless specifically authorized by resolution or minute order of the City Council, the Purchasing Officer shall not issue a purchase order for supplies, services or equipment involving any project or purchase unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.
F. The City shall comply with all federal and state bidder's security and bonding requirements and all prevailing wage laws applicable to each contract or purchase.
G. The Purchasing Officer, with approval of the City Manager, may provide written authorization to any department director to conduct a bidding process outside of the centralized purchasing system; provided, however, that such bidding process and the resulting contract or purchase shall otherwise comply with the requirements of this chapter. The Purchasing Officer, with approval of the City Manager, may rescind such authorization in writing at any time and for any or no reason. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.030 Bidding requirements for public projects.
A. Alternative Procedure (up to $60,000.00) $25,000.00) (Administrative Approval). Public projects with cost estimates of $60,000.00) $25,000.00 or less may be awarded by the City Manager, upon recommendation of the director of the department responsible for the project, by any alternative procedure as defined in Section 3.01.010.
B. Alternative Procedure (more than $25,000.00—$45,000.00) (City Council Approval). Public projects with cost estimates of more than $25,000.00, but less than, or equal to $45,000.00 may be awarded by the City Council, upon recommendation of the City Manager, by any alternative procedure as defined in Section
3.01.010.
BC. Informal Procedure (more than $60,000.00 $45,000.00—less than $200,000.00$175,000.00). Public projects with cost estimates of more than $60,000.00 $45,000.00, but less than, or equal to, $200,000.00 $175,000.00 shall, except as otherwise provided in this chapter or the Public Contract Code, be awarded by the City Manager City Council pursuant to the public project informal bidding procedure in Section 3.01.070.
The City Manager shall report to the City Council all such public projects awarded by the public project informal bidding procedure within ninety (90) days of the date of the award. If all bids received are over $200,000.00 $175,000.00, the City Council may, with the approval of a four-fifths vote of those members Formatted: Not Highlight
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present, award the contract in an amount not exceeding $212,500.00 $187,500.00 to the lowest responsive and responsible bidder, so long as the City Council also determines that the City's cost estimate for the project was reasonable.
CD. Formal Procedure (more than $200,000$175,000.00). Public projects with cost estimates of more than $200,000 $175,000.00 shall, except as otherwise provided in this chapter or the Public Contract Code, be awarded by the City Council pursuant to the public project formal bidding procedure in Section 3.01.060.
DE. City Engineer Review. The City Engineer or his designee shall review the working details, drawings, plans and specifications prepared for every maintenance project and other general services project which may affect the design or operation of public improvements and which may bring into question the City's liability for dangerous condition of public property.
EF. City Council Approval. The City Council shall review and approve the working details, drawings, plans and specifications prepared for every public project of more than $200,000$175,000.00.
FG. Award. Contracts for public projects of $60,000.00 $45,000.00 or less, may be awarded in the best interests of the City. Contracts for public projects of more than $200,000.00 $45,000.00, if awarded, shall be awarded to the lowest responsive and responsible bidder. If two or more bids are the same and the lowest, the Authorized Contracting Party may accept the one it chooses in his or her sole and absolute discretion.
GH. Dollar Limits and Change Orders or Amendments. The dollar limits indicated herein shall apply to the original contract and to any amendments or change orders. To this end, therefore, unless an exception provided in Section 3.01.100 applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable to the increased contract amount.
HI. No Bid Splitting. The City shall not split a project, work, service or purchase into smaller projects, works, services or purchases for the purpose of avoiding any bidding or contracting requirements of this Code. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.040 Bidding requirements for maintenance and general services.
A. Alternative Procedure (up to $60,000.00 $25,000.00) (Administrative Approval). Maintenance work and other general services projects with cost estimates of $75,000.00 $25,000.00 or less may be awarded by the City Manager, upon recommendation of the director of the department responsible for the project, by any alternative procedure as defined in Section 3.01.010.
B. Alternative Procedure (more than $25,000.00—$45,000.00) (City Council Approval). Maintenance work and other general services projects with cost estimates of more than $25,000.00, but less than, or equal to $45,000.00 may be awarded by the City Council, upon recommendation of the City Manager, by any alternative procedure as defined in Section 3.01.010.
BC. Informal Bidding Procedure (more than $60,000.00$45,000.00—up to $200,000.00 $175,000.00).
Maintenance work and other general services projects with cost estimates of more than $60,000,.00 $45,000.00, but less than or equal to $200,000.00 $175,000.00 shall, except as otherwise provided in this chapter, be awarded by the City Manager City Council pursuant to the non-public project informal bidding procedure contained in in Section 3.01.090. The City Manager shall report to the City Council such maintenance work and other general services projects awarded by the informal bidding procedure within ninety (90) days of the date of the award.
CD. Formal Bidding Procedure (more than $200,000.00 $175,000.00). Maintenance work and other general services projects with cost estimates of more than $200,000.00 175,000.00 shall, except as otherwise Formatted: Not Highlight
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provided in this chapter, be awarded by the City Council pursuant to the non-public project formal bidding procedure contained in Section 3.01.080.
DE. City Engineer Review. The City Engineer or his designee shall review the working details, drawings, plans and specifications prepared for every maintenance project and other general services project which may affect the design or operation of public improvementsimprovements, and which may bring into question the City'’s liability for dangerous condition of public property.
EF. Purchasing Officer Approval. The Purchasing Officer, or his or her designee, shall review and approve the working details, drawings, plans and specifications prepared for every maintenance work and other general services project.
FG. City Council Approval. The City Council shall review and approve the working details, drawings, plans and specifications prepared for every maintenance work and other general services project of more than $200,000.00$45,000.00.
GH. Award. Contracts for maintenance work and other general services projects of $60,000.00 $45,000.00 or less, if awarded, may be awarded in the best interests of the City. Contracts for maintenance work and other general services projects of more than $60,000.00$45,000.00, if awarded, shall be awarded to the lowest responsive and responsible bidder. If two or more bids are the same and the lowest, the Authorized Contracting Party may accept the one it chooses.
HI. Subsequent Contract Awards, Amendments, Extensions or Renewals. Notwithstanding anything herein to the contrary, the City Manager shall not award a subsequent contract to the same individual or entity for the same or similar services on the same project, or amend, extend or renew such a contract, without City Council approval, when the award, amendment, extension or renewal will result in the City paying an aggregate amount of more than $200,000.00 $45,000.00 to the individual or entity in any given fiscal year.
For purposes of this section, the phrase "same project" shall include an on-call or as-needed contract.
IJ. Term Limitation. No maintenance work or other general services contract, except for contracts for solid waste services, may extend for longer than a three-year initial term with a maximum of two, one-year extensions each of which must be approved by the City Council.
JK. No Bid Splitting. The City shall not split a project, work, service or purchase into smaller projects, works, services or purchases for the purpose of avoiding any bidding or contracting requirements of this Code. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.050 Bidding requirements for materials, supplies and equipment.
A. Alternative Procedure (up to $60,000$25,000.00) (Administrative Approval). Purchases of materials, supplies and equipment of $60,000.00 $25,000.00 or less may be awarded by the City Manager, upon recommendation of the director of the department responsible for the project, by any alternative procedure as defined in Section 3.01.010.
B. Alternative Procedure (more than $25,000.00—$45,000.00) (City Council Approval). Purchases of materials, supplies and equipment of more than $25,000.00, but less than, or equal to $45,000.00 may be awarded by the City Council, upon recommendation of the City Manager, by any alternative procedure as defined in Section 3.01.010.
BC. Informal Bidding Procedure (more than $60,000.00 $45,000.00—less than $200,000.00$175,000.00).
Purchases of materials, supplies and equipment of more than $60,000.00 $45,000.00, but less than or equal to $200,000.00 $175,000.00 shall, except as otherwise provided in this chapter, be awarded by the City ManagerCity Council pursuant to the non-public project informal bidding procedure provided for in Section
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3.01.090. The City Manager shall report to the City Council such Purchases of materials, supplies and equipment awarded by the informal bidding procedure within ninety (90) days of the date of the award.
CD. Formal Bidding Procedure ($200,000.00 $175,000.00 or more). Purchases of materials, supplies and equipment of more than $200,000.00 $175,000.00 shall, except as otherwise provided in this chapter, be awarded by the City Council pursuant to the non-public project formal bidding procedure provided for in Section 3.010.080.
DE. Department Director Approval. The director of the appropriate department shall review and approve the specifications prepared for every purchase of materials, supplies and equipment.
EF. Purchasing Officer Approval. The Purchasing Officer, or his or her designee, shall review and approve all contracts for the purchase of materials, supplies and equipment.
FG. City Council Approval. The City Council shall review and approve the specifications prepared for every purchase of materials, supplies and equipment of more than $200,000$45,000.00.
GH. Award. Contracts for the purchase of materials, supplies and equipment of $60,000 $45,000.00 or less, if awarded, may be awarded in the best interests of the City pursuant to Section 3.01.040.G. Contracts for the purchase of materials, supplies and equipment of more than $60,000.00 $45,000.00, if awarded, shall be awarded to the lowest responsive and responsible bidder pursuant to Section 3.01.040.G. If two or more bids are the same and the lowest, the Authorized Contracting Party may accept the one he or she chooses in his or her sole discretion.
HI. Local Bidder Preference. In order to promote the economic health of the City and to encourage local participation in the procurement of materials, supplies and equipment, the City may take into consideration the sales tax to be returned to the City as a result of an award in determining the lowest responsive and responsible bidder. This section shall not be effective unless and until the City Manager adopts a written policy to implement its provisions.
IJ. No Bid Splitting. The City shall not split a project, work, service or purchase into smaller projects, works, services or purchases for the purpose of avoiding any bidding or contracting requirements of this Code. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.060 Formal bidding procedure for public projects.
A. Uses of Formal Bidding Procedure. This formal bidding procedure shall be used whenever formal bidding is required for a public project.
B. Required Process. The formal competitive bidding procedure shall comply with all aspects of state and local law governing formal competitive bidding, including, but not limited to, the California Public Contract Code, California Government Code, California Labor Code, resolutions of the City Council as may be adopted from time to time, and policies and procedures as the City Manager may approve from time to time.
C. Notice Inviting Formal Bids. Notice inviting formal bids shall be provided. The notice inviting formal bids shall comply with Public Contract Code Section 22037, as such section may be amended from time to time.
Notices shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. At a minimum, the notice inviting formal bids shall:
1. Describe the project;
2. State how to obtain more detailed information about the project;
3. State the date, time and place for the submission of sealed bids; and
4. Include any other information required by state or local law, as determined by the City Attorney.
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D. Published Notice. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation printed and published in the City, or, if there is no such newspaper, in a newspaper of general circulation which is circulated in the City.
E. Distribution of Notice Inviting Formal Bids. The notice inviting formal bids shall also be sent to those construction trade journals specified in Public Contract Code Section 22036 at least 30 calendar days before the date of bid opening.
F. Additional Notice. The City shall also provide any additional notice as it deems proper.
G. Contents of Remaining Bid and Contract Documents. The contents and form of the bid and contract documents shall be approved by the director of the appropriate department, as well as the City Attorney.
H. City's Authority. The City may reject any or all bids received, and may waive any minor irregularities in each bid received.
I. No Bids Received. If no bids are received, the Authorized Contracting Party may award the contract by any alternative procedure.
J. Award of Contract. The contract shall be awarded in accordance with Section 3.01.030. If two or more bids are the same and the lowest, the City may accept the one it chooses in its sole and absolute discretion.
K. Rejection of Bids. The City may, in its sole and absolute discretion, reject any bids presented. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates for the project, the City shall have the option of any of the following:
1. Abandon the project; or
2. Re-advertise for bids in the manner described in this chapter; or
3. By passage of a resolution by a four-fifths vote of the City Council, declare that the project can be performed more economically by the employees of the City and have the project done by force account.
( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.070 Informal bidding procedure for certain public projects.
A. Uses of Public Project Informal Bidding Procedure. This informal bidding procedure shall be used when a public project is involved and informal bidding is permitted by this chapter.
B. Distribution of Notice Inviting Informal Bids to Contractor List. The Purchasing Officer shall provide a notice inviting informal bids not less than ten calendar days before the bids are due. The notice inviting informal bids shall be mailed or provided to all construction trade journals specified in Public Contract Code Sections 22034 and 22036.
C. Contents of Notice Inviting Informal Bids. At a minimum, the notice inviting informal bids shall:
1. Describe the project in general terms;
2. State how to obtain more detailed information about the project;
3. State the date, time and place for the submission of sealed bids; and
4. Include any other information required by state or local law, as determined by the City Attorney.
D. Proprietary Projects or Products. If the director of the appropriate department certifies that, to the best of his or her knowledge, the product or service is proprietary in nature and can be obtained only from a limited
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number of contractors, and that no equivalent products or services are available, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the appropriate department, as well as the City Attorney.
F. City's Authority. The City may reject any or all bids received, and may waive any minor irregularities in each bid received.
G. No Bids Received. If no bids are received, the Authorized Contracting Party may award the contract by any alternative procedure.
H. Award of Contract. The contract shall be awarded in accordance with Section 3.01.030.F. If two or more bids are the same and the lowest, the City may accept the one it chooses in its sole and absolute discretion. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.080 Formal bidding procedure for non-public projects.
A. Uses of the Non-Public Project Formal Bidding Procedure. A formal bidding procedure shall be used whenever formal bidding is required by this chapter and the project does not involve a public project.
B. Distribution of Notice Inviting Formal Bids or Request for Proposals. A notice inviting formal bids or a request for proposals, as appropriate, shall be published at least 14 calendar days before the date of opening the bids or proposals in a newspaper of general circulation printed and published in the City, or, if there is no such newspaper, in a newspaper of general circulation which is circulated in the City. The notice inviting formal bids or request for proposals may also be provided directly to vendors or contractors. The City shall endeavor to receive formal bids or proposals from at least three vendors or contractors. A notice inviting bids shall be used whenever the project or purchase must be awarded to the lowest responsible and responsive bidder. A request for proposals may be used whenever the project or purchase is not required to be awarded to the lowest responsible and responsive bidder. If the Purchasing Officer and the director of the appropriate department certify that, to the best of their knowledge, there is no local source or local provider available for the project, the notice inviting bids or the request for proposals, as appropriate, may be distributed to a list of qualified vendors maintained by the Purchasing Officer and/or published in a trade journal appropriate to the project, in lieu of publication in a newspaper of general circulation.
C. Contents of Notice Inviting Formal Bids or Request for Proposals. At a minimum, the notice inviting formal bids or request for proposals shall:
1. Describe the project or purchase in general terms;
2. State how to obtain more detailed information about the project or purchase;
3. State the date, time and place for the submission of bids or proposals; and
4. Include any other information required by state or local law, as determined by the City Attorney. Bids for purchases of more than $200,000.00 $175,000.00 shall be sealed bids.
D. Proprietary Projects or Sole Source Products. If the director of the appropriate department certifies that, to the best of his or her knowledge, the product or service is proprietary in nature and can be obtained only from a limited number of vendors or contractors, and that no equivalent products or services are available, the notice inviting formal bids or request for proposals may be sent exclusively to such vendor(s) or contractor(s).
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E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the appropriate department, as well as the City Attorney.
F. City's Authority. The City may reject any or all bids or proposals received, and may waive any minor irregularities in each bid or proposal received.
G. No Bids Received. If no bids are received, the Authorized Contracting Party may award the contract by any alternative procedure.
( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.090 Informal bidding procedure for non-public projects.
A. Uses of Non-Public Project Informal Bidding Procedure. This informal bidding procedure shall be used whenever informal bidding is allowed for a purchase which does not involve a public project.
B. Distribution of Notice Inviting Informal Bids or Request for Proposals. A Notice inviting informal bids or request for proposals, as appropriate, shall be provided. The notice inviting informal bids or requests for proposals shall be provided to at least three vendors or contractors, and the City shall endeavor to receive informal bids or proposals from at least three vendors or contractors. A notice inviting bids shall be used whenever the project or purchase must be awarded to the lowest responsible and responsive bidder. A request for proposals may be used whenever the project or purchase is not required to be awarded to the lowest responsible and responsive bidder.
C. Contents of Notice Inviting Informal Bids or Request for Proposals. At a minimum, the notice inviting informal bids or request for proposals shall:
1. Describe the project or purchase in general terms;
2. State how to obtain more detailed information about the project or purchase;
3. State the date, time and place for the submission of bids or proposals; and
4. Include any other information required by state or local law, as determined by the City Attorney. Bids for purchases of more than $60,000.00$45,000.00 shall be sealed bids.
D. Proprietary Projects or Products. If the director of the appropriate department certifies that, to the best of his or her knowledge, the product or service is proprietary in nature and can be obtained only from a limited number of vendors or contractors, and that no equivalent products or services are available, the notice inviting informal bids or request for proposals may be sent exclusively to such vendor(s) or contractor(s).
E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the appropriate department, as well as the City Attorney.
F. City's Authority. The City may reject any or all bids or proposals received, and may waive any Minor irregularities in each bid or proposal received.
G. No Bids or Proposals Received. If no bids or proposals are received, the Authorized Contracting Party may award the contract by any alternative purchasing procedure. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
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3.01.100 Exceptions to competitive bidding on public projects.
In addition to the situations described in Section 3.01.030, competitive bidding, either formal or informal, is not required for public projects in the situations provided for in this section. Under such conditions, the alternative procedure may be used.
A. Emergencies. In situations determined by the City Manager to constitute an emergency for repair or replacement of a public project pursuant to Public Contract Code Section 22035 and Public Contract Code Section 22050, the City Council hereby delegates to the City Manager the power to declare a public emergency and take any directly related and immediate action required by the emergency, up to a total of $200,000.00$100,000.00, pursuant to California Public Contract Code Section 22035 and California Public Contract Code Section 22050. Emergency expenditures of more than $200,000.00$100,000.00 shall first be approved by the City Council. Work may be performed without the benefit of competitive bidding, either formal or informal, only so long as necessary under those sections.
For projects of more than $60,000.0025,000.00, a report on the emergency and work performed shall be provided at the next regular meeting of the City Council, and then at every meeting thereafter required by California Public Contract Code Section 22050. At such meetings, the City Council shall determine, by a four-fifths vote, that there is a need to continue the action without the benefit of informal or formal competitive bidding in accordance with California Public Contract Code Section 22035 and California Public Contract Code Section 22050. The City Council shall terminate the emergency action at the earliest possible date that conditions warrant, so that the remainder of the emergency action may be completed pursuant to a formal bidding procedure or other applicable procedure.
For projects of $200,000.00$25,000.00 or less, the City Manager shall determine, on his or her own as the action continues, whether there is a need to continue the action without the benefit of the applicable bidding procedure. The City Manager shall terminate the emergency action at the earliest possible date that conditions warrant, so that the remainder of the emergency action may be completed pursuant to the applicable bidding procedure.
B. No Competitive Market. When the City Council determines, in accordance with applicable law, that a competitive market does not exist and that no competitive advantage will be gained by the public bidding process.
C. No Bids Received. When no bids are received pursuant to either the public project informal bidding procedure or the public project formal bidding procedure the Purchasing Officer may proceed by the alternative procedure.
D. Otherwise Authorized. When otherwise authorized by this chapter or applicable law including, but not limited to Public Contract Code Section 22160 et seq. concerning design build. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.110 Exceptions to competitive bidding on non-public projects.
In addition to the situations described in Sections 3.01.090 through 3.01.100, competitive bidding, either formal or informal, is not required for non-public projects in the situations provided for in this section. Under such conditions, any alternative procedure, including no bidding, may be used with the City Manager's approval.
A. Emergencies. In situations determined by the Authorized Contracting Party to constitute an emergency, as defined in Section 3.01.010.
Created: 2023-03-13 17:32:40 [EST]
(Supp. No. 7, Update 1)
B. No Competitive Market. When the City Council determines, in accordance with applicable law, that a competitive market does not exist and that no competitive advantage will be gained by the public bidding process.
C. Competitive Bidding Already Completed. When the Authorized Contracting Party determines that a competitive bid procedure has been conducted by another public agency (e.g. through CMAS or GSA) and the price to the City is equal to or better than the price to that public agency.
D. State Purchase. When the purchase is made on behalf of the City by the State Department of General Services.
E. Purpose of Bidding is Otherwise Accomplished. When the City Manager determines that it is in the best interest of the City and its administrative operations to dispense with public bidding for non-public projects under this chapter. Prior City Council concurrence with the City Manager's determination shall be required for non-public project purchases over $200,000.00 $100,000.00.
F. No Bids Received. When no bids are received non-public project formal or informal bidding procedures.
G. Expenses. The reimbursement or payment of travel expenses and other employee expenses.
H. Insurance. The payment of any insurance premiums or claims, including employee medical payments.
I. Real Property. The purchase or lease of real property with City Council approval.
J. Banking. Banking services.
K. Otherwise Authorized. When otherwise authorized by this chapter or applicable law. ( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
3.01.120 City Manager authorization to execute contracts.
Pursuant to the California Government Code, the Mayor must execute all contracts on behalf of the City, unless another City officer or employee is authorized to do so. The City Manager and his or her designees, as explicitly set forth in this chapter and the administrative policies implementing this chapter, are hereby authorized to execute contracts on behalf of the City.
( Ord. No. 1097, § 3(Exh. A), 11-21-2017 )
Staff Report
TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE April 4, 2023
SUBJECT: Formation of CFD No. 2023-1 (Fairway Canyon)
Description Adopt by resolution the City of Beaumont’s intent to establish City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) and improvements therein, and to declare intention to incur bond indebtedness within each improvement area.
Background and Analysis:
The developer, Meritage Homes of California, Inc., a California corporation (the “Developer”) and D.R. Horton Los Angeles Holding Company, Inc., a California corporation, own property containing 419 proposed residential lots within the City. Such property is located in the northwestern part of the City, west of Tukwet Canyon Parkway, and north of Oak Valley Parkway. The Developer has requested that the City form a community facilities district (“CFD No. 2023-1”) with two improvement areas therein (“Improvement Area No. 1” and “Improvement Area No. 2” and together, the “Improvement Areas”) to encompass such property in accordance with the Mello -Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of certain public improvements, public safety services, and maintenance services through the levy of a special tax. Improvement Area No. 1 is planned to include approximately 132 residential units and Improvement Area No. 2 is planned to include approximately 287 residential units.
The City of Beaumont is obligated to cooperate in the formation of the CFD for this development as was agreed upon by the City and the developer in a Development Agreement effective November 11, 2002, and specified in Section 10 DEVELOPMENT OF THE PROJECT (10.6 Mello-Roos Communities Facilities Districts; Other Assessment Districts or Financing Mechanisms).
In order to finance the CFD facilities and incidental expenses, the City intends to issue bonds secured by special taxes levied in each improvement area. The maximum amount of bonded indebtedness proposed for Improvement Area No. 1 is $3.5 million
and the maximum amount of bonded indebtedness proposed for Improvement Area No. 2 is $11 million.
The Developer has requested that the boundaries of CFD No. 2023 -1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2023 -1 presented at this meeting (the “Resolution of Intention”), and that special taxes be levied within the boundaries of Improvement Area No. 1 and Improve ment Area No. 2 in accordance with the applicable Rate and Method of Apportionment (each an “RMA”) described in Attachments C and D to the Resolution of Intention. The Resolution of Intention is the first step in the process of forming CFD No. 2023 -1. The attached Resolutions declare the City’s intention to establish CFD No. 2023-1 and designate Improvement Area No. 1 and Improvement Area No. 2 therein, its intention to incur bonded indebtedness by CFD No. 2023-1 with respect to Improvement Area No. 1 and Improvement Area No. 2 and call for a public hearing. A public hearing on the matter will take place on May 16, 2023, and at that time the Council will formally consider approval to form CFD No. 2023-1, designate Improvement Area No. 1 and Improvement Area No. 2 therein, and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2023-1 for Improvement Area No. 1 and Improvement Area No. 2.
The proposed CFD No. 2023-1 will establish four categories of special taxes in each improvement area. A “Special Tax A” will finance infrastructure to be completed by Meritage that serves the CFD. A “Special Tax B” will provide funds for street sweeping, traffic signal maintenance, the maintenance of landscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, flood and storm protection services, and the operation of storm drainage systems. A “Special Tax C (Contingent)” will be levied to pay for the foregoing maintenance services in the event the property owner association within the CFD fails to perform such maintenance services. A “Special Tax D” will provide funds for police protection, fire protection, ambulance and paramedic services provided within the boundaries of CFD 2023-1 and the City.
With respect to Improvement Area No. 1, the applicable RMA provides that the Fiscal Year 2023-24 Assigned Special Tax Rate A will range from $1,328 to $1,414 per parcel of residential property in Zone 1 and $1,106 to $1,414 per parcel of residential property in Zone 2. With respect to Improvement Area No. 2, the applicable RMA provides that the Fiscal Year 2023-24 Assigned Special Tax Rate A will range from $1,481 to $1,954 per parcel of residential property in Zone 1, $1,736 to $2,067 per parcel of residential property in Zone 2, and $1,884 to $2,135 per parcel of residential property in Zone 3.
The rates vary based upon the size of homes being constructed. The Special Tax A does not escalate.
With respect to Improvement Areas No. 1 and No. 2, the Fiscal Year 2023-24 Maximum Special Tax Rate B will be $425 per parcel of residential property, escalating at the greater of the percentage change in the Consumer Price Index or 2% per year. The Fiscal Year 2023-24 Maximum Special Tax Rate C (Contingent) will be $246 per parcel of residential property, escalating at the greater of the percentage change in the Consumer Price Index or 2% per year. The Fiscal Year 2023 -24 Maximum Special Tax Rate D will be $509 per parcel of residential property, escalating at the greater of the percentage change in the Consumer Price Index or 5% per year.
Fiscal Impact:
The Developer has made a deposit of $50,000 to pay for the costs of the formation proceedings which may be reimbursed to the Developer in accordance with a funding agreement to be approved with the Developer. If established and subject to necessary Council and voter approvals, CFD No. 2023-1 will annually levy special taxes on all of the taxable property within each of Improvement Area No. 1 and Improvement Area No. 2 in accordance with the RMA applicable to such Improvement Areas (as attached to the Resolution of Intention). Any bonds issued by CFD No. 2023 -1 are not obligations of the City and will be secured solely by the Special Taxes levied in the applicable improvement area within CFD No. 2023-1. The inclusion of the Special Tax B is estimated to produce $178,075 in annual revenues for public services at buildout (based on the initial rate of $425/unit). The inclusion of the Special Tax D will produce an estimated $213,271 in annual revenues for public safety at buildout (based on the initial rate of $509/unit).
Recommended Action:
Waive the full reading and adopt by titles only, “Resolution of the City Council of the City of Beaumont, California, Declaring its Intention to Establish City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) and Improvement Areas Therein, to Authorize the Levy of a Special Tax to Pay the Cost of Acquiring or Constructing Certain Public Facilities and Providing Certain Public Services, and Paying for Certain Incidental Expenses and to Pay Debt Service on Bonded Indebtedness" and; Adopt, "Resolution of Intention of the City Council of the City of Beaumont, California, to Incur Bonded Indebtedness within Each of Proposed Improvement Areas Nos. 1 and 2 of Proposed City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon).”
Attachments:
1. Resolution Declaring the Intention to Establish City of Beaumont CFD 2023-1
2. Resolution Declaring the Intention to Incur Bond Indebtedness within 2023 -1
3. Reimbursement Agreement
4. Project Map
4883-9112-9425v4/022599-0032
RESOLUTION NO. _____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BEAUMONT, CALIFORNIA, DECLARING ITS INTENTION TO
ESTABLISH CITY OF BEAUMONT COMMUNITY FACILITIES
DISTRICT NO. 2023-1 (FAIRWAY CANYON) AND IMPROVEMENT
AREAS THEREIN, TO AUTHORIZE THE LEVY OF A SPECIAL
TAX TO PAY THE COST OF ACQUIRING OR CONSTRUCTING
CERTAIN PUBLIC FACILITIES AND PROVIDING CERTAIN
PUBLIC SERVICES, AND PAYING FOR CERTAIN INCIDENTAL
EXPENSES AND TO PAY DEBT SERVICE ON BONDED
INDEBTEDNESS
WHEREAS, the City of Beaumont (the “City”) has received petitions (the “Formation Petitions”) from at least 10% of the owners of the territory described in Exhibit A attached hereto (the “Property”), requesting to establish City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) (the “Community Facilities District”) and Improvement Area No. 1 (“Improvement Area No. 1”) and Improvement Area No. 2 (“Improvement Area No. 2” and together with Improvement Area No. 1, the “Improvement Areas” and each an “Improvement Area”) therein to finance (1) the purchase, construction, expansion, improvement or rehabilitation of the public facilities described in Exhibit B hereto (which exhibit is incorporated herein by this re ference), including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, (2) the services described in Exhibit B hereto (collectively, the “Services”) and (3) the incidental expenses to be incurred in connection with financing the Facilities and/or Services and forming the Community Facilities District and administering the Community Facilities District (the “Incidental Expenses”); and WHEREAS, the City Council of the City (the “City Council”) intends to approve an estimate of the costs of the Facilities, Services and the Incidental Expenses for the Community Facilities District; and
WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of the Community Facilities District, and the sale of bonds in an amount not to exceed Three Million Five Hundred Thousand Dollars ($3,500,000) for Improvement Area No. 1 and in an amount not to exceed Eleven Million Dollars ($11,000,000) for Improvement Area No. 2 (the “Bonds”) and the levy of a special tax in each Improvement Area to pay debt service on each Improvement Area’s Bonds, provided that the bond sale and special tax levy are approved at an election to be held for the Community Facilities District; and WHEREAS, the City desires to enter into a reimbursement agreement with Meritage Homes of California, Inc., a California corporation (“Meritage”), the form of which is on file with the City Clerk (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by Meritage in connection with the formation of the Community Facilities District;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY, DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
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SECTION 1. The City Council declares its intention to conduct proceedings pursuant to said Article 3.5 of the Mello Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”) for the establishment of the Community Facilities District with two separate Improvement Areas designated pursuant to Section 53350 of the Act and with boundaries coterminous with the Property.
It is further proposed that the boundaries of the Community Facilities District and the Improvement Areas shall be the legal boundaries as described in Exhibit A hereto which boundaries shall, upon recordation of the boundary map for the Community Facilities District, include t he entirety of any parcel subject to taxation by the Community Facilities District, except where indicated on the boundary map, and as depicted on the boundary map of the Community Facilities District which is on file with the City Clerk. The City Clerk is hereby directed to sign the original boundary map of the Community Facilities District and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
SECTION 2. The name of the proposed Community Facilities District is “City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) and the two proposed Improvement Areas shall be designated as “Improvement Area No. 1 of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon)” and “Improvement Area No. 2 of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon).
SECTION 3. The Facilities and Services proposed to be provided within the Community Facilities District are public facilities and services as defined in the Act. The City Council hereby finds and determines that the description of the Facilities, Services and Incidental Expenses herein is sufficiently informative to allow taxpayers within the Community Facilities District to understand what the funds of the Community Facilities District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities and the Services the costs of forming the Community Facilities District, issuing bonds, levying and collecting a special tax within the Community Facilities District and the annual administration costs of the Community Facilities District. The City Council hereby finds that the proposed Facilities and Services are necessary to meet increased demands placed upon the City as a result of development occurring in the Community Facilities District. The Facilities may be acquired from one or more of the property owners as completed public facilities or may be constructed by or on behalf of the City and paid for with bond proceeds.
SECTION 4. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a special tax within each Improvement Area, secured by a continuing lien against all non-exempt real property sufficient to pay for the Facilities, Services and Incidental Expenses and the principal and int erest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the City, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash) attributable to the Community Facilities District.
The rate and method of apportionment and manner of collection of the special tax for Improvement Area No. 1 are described in detail in Exhibit “C” attached hereto, which Exhibit “C” is incorporated herein by this reference. Exhibit “C” allows each landowner within proposed Improvement Area No. 1 to estimate the maximum amount of t he Special Tax that may be levied
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against each parcel. The rate and method of apportionment and manner of collection of the Special Tax for Improvement Area No. 2 are described in detail in Exhibit “D” attached hereto, which Exhibit “D” is incorporated herein by this reference. Exhibit “D” allows each landowner within proposed Improvement Area No. 2 to estimate the maximum amount of the special tax that may be levied against each parcel. In the first year in which such special tax is levied in an Improve ment Area, the levy shall include an amount sufficient to repay to the Community Facilities District all amounts, if any, transferred to the Community Facilities District pursuant to Section 53314 of the Act and interest thereon.
If the special taxes of an Improvement Area are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first sub ject to the special tax because of its use for private residential purposes and shall not be increased over time, except to the extent permitted in the rate and method of apportionment of the special tax for such Improvement Area as set forth in Exhibit “C” and Exhibit “D” hereto, as applicable, (ii) the Special Tax A (as defined in Exhibit “C” and “Exhibit “D” hereto) shall not be levied after fiscal year 2063 - 64, as described in Exhibit “C” and “Exhibit “D” hereto, as applicable, (iii) the Special Tax B, the Special Tax C (Contingent), and the Special Tax D (each as defined in Exhibit “C” and “Exhibit “D” hereto) shall be levied as long as each is needed to meet the Special Tax B Requirement, the Special Tax C (Contingent) Requirement and the Special Tax D Requirement (each as defined in Exhibit “C” and “Exhibit “D” hereto), respectively, as determined at the sole discretion of the City Council and (iv) under no circumstances will the special tax levied in an Improvement Area in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within such Improvement Area by more than ten percent (10%) above the amount that would have been le vied in that fiscal year had there never been any such delinquencies or defaults.
The special tax within each proposed Improvement Area is based on the cost of making the Facilities and Services available to each parcel of real property within such propose d Improvement Area. The City Council hereby determines the rate and method of apportionment of the special tax for Improvement Area No. 1 and Improvement Area No. 2 set forth in Exhibit ”C” and Exhibit “D” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act; and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within the Community Facilities District shall become for any reason exempt, wholly or partially, from the levy of the special tax specified on Attachment “C” or Attachment “D,” respectively, the City Council shall, on behalf of the Community Facilities District, cause the levy to be increased, subjec t to the limitation of the maximum special tax for a parcel as set forth in Attachment “C” or Attachment “D,” respectively, to the extent necessary upon the remaining property within the applicable Improvement Area which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 4. The obligation to pay the Special Tax A may be prepaid only as set forth in Sections G and H of Attachment “C” or Attachment “D,” as applicable. The obligation to pay the Specia l Tax B, the Special Tax C (Contingent), and the Special Tax D may not be prepaid.
SECTION 5. A combined public hearing (the “Hearing”) on the establishment of the Community Facilities District and the Improvement Areas, the proposed rate and method of apportionment of the special tax for each Improvement Area and the proposed issuance of bonds for the each Improvement Area to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on May 16, 2023, at the City Council’s Chambers, 550
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East 6th Street, Beaumont, California. If the City Council determines to form the Community Facilities District and the Improvement Areas, a special election will be held within each Improvement Area to authorize the issuance of bonds of such Improvement Area and the levy of a special tax within such Improvement Area in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the elections will be a landowner vote with each landowner who is the owner of record of land within an Improvement Area at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within such proposed Improvement Area. Ballots for the special elections may be distributed by mail or by personal service.
At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the Community Facilities District and the proposed Improvement Areas shall be established and as to the method of apportionment of the special tax within each proposed Improvement Area and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed the Community Facilities District for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and (b) if the capital facilities to be financed and constructed by the Community Facilities District will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within the Community Facilities District, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which the Community Facilities District is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.
At the time and place set forth above for the Hearing, any interested p erson, including all persons owning lands or registered to vote within the Community Facilities District, may appear and be heard.
SECTION 6. The City Clerk is hereby authorized and directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Community Facilities District. The City Clerk is further authorized and directed to mail a copy of the Notice to each of the landowners or any registered voters within the boundaries of the Community Facilities District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the Community Facilities District and a description of the proposed voting procedure for the elections required by the Act.
Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
SECTION 7. Each City officer who is or will be responsible for providing the Facilities and the Services, if it is established, is hereby directed to study the Community Facilities District and, at or before the time of the Hearing, file a report with the City Council containing a brief description of the public facilities and services by type which will in his or her opinion be required to meet
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adequately the needs of the Community Facilities District and an estimate of the cost of providing those public facilities and services.
SECTION 8. The City may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the Community Facilities District. The City may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.
SECTION 9. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by Improvement Area No. 1 for the Facilities and Incidental Expenses is Three Million Five Hundred Thousand Dollars ($3,500,000) and by Improvement Area No. 2 is Eleven Million Dollars ($11,000,000).
SECTION 10. Urban Futures, Inc. is hereby appointed to act as municipal advisor to the City and the Community Facilities District with respect to the formation of the Community Facilities District. Spicer Consulting Group, LLC, is hereby appointed to act as special tax consultant with respect to the formation of the Communit y Facilities District. Stradling Yocca Carlson & Rauth, a Professional Corporation, is hereby appointed to act as special counsel with respect to the formation of the Community Facilities District.
SECTION 11. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).
SECTION 12. The form of the Reimbursement Agreement by and betwee n the City and Meritage to be utilized in connection with the formation of the Community Facilities District, substantially in the form on file with the City Clerk, is hereby approved and the City Manager of the City, or his or her written designee, is hereby authorized to execute and deliver such agreement with such changes therein, deletions therefrom and modifications thereto as the City Manager, or his or her written designee, may approve.
SECTION 13. This Resolution shall be effective upon its adoption.
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ADOPTED, SIGNED AND APPROVED this 4th day of April, 2023.
Julio Martinez III, Mayor of the City of Beaumont
(SEAL)
ATTEST:
Elaine Morgan, City Clerk
of the City of Beaumont
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STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said Board held on the 4th day of April, 2023, and that it was so adopted by the following vote:
AYES:
NOES:
ABSENT:
Elaine Morgan, City Clerk
City of Beaumont
A-1
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EXHIBIT A
DESCRIPTION OF THE PROPOSED COMMUNITY FACILITIES DISTRICT County of Riverside Assessor Parcel Nos. 413-790-067 through 073, inclusive.
A-2
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EXHIBIT B
DESCRIPTION OF THE FACILITIES, SERVICES AND INCIDENTAL EXPENSES
TYPES OF FACILITIES
The proposed types of public facilities and expenses to be financed by the Community Facilities District include:
The construction, purchase, modification, rehabilitation, expansion and/or improvement of roadway, bridge, sewer, domestic and reclaimed water, dry utilities, storm drain, curb and gutter , medians, traffic signals and any other facilities permitted pursuant to the Act, parks, trails, police facilities, fire facilities, library facilities, public community facilities, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure including design, engineering and planning costs associated therewith. The Facilities include, but are not limited to:
PA 21B Park Improvements
Sorenstam Road Improvement
Water Facilities of Beaumont Cherry Valley Water District
TYPES OF MAINTENANCE SERVICES
The types of Maintenance Services that are proposed to be provided by the Community Facilities District and funded with the proceeds of special taxes levied by the Community Facilities District consist of services permitted to be financed under the Act including, without limitation, street sweeping, traffic signal maintenance, the maintenance of landscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, flood and stor m protection services, and the operation of storm drainage systems. All of the Maintenance Services to be financed must be in addition to those provided within the boundaries of the Community Facilities District before the Community Facilities District is created, and shall not supplant services already available within that territory when the Community Facilities District is created.
TYPES OF PUBLIC SERVICES
The types of Public Services that are proposed to be provided by the Community Facilities District and funded with the proceeds of special taxes levied by the Community Facilities District consist of services permitted to be financed under the Act, including, without limitation, police and fire protection and ambulance and paramedic services. All of the Public Services to be financed must be in addition to those provided within the boundaries of the Community Facilities District before The Community Facilities District is created, and shall not supplant services already available within that territory when the Community Facilities District is created.
TYPES OF INCIDENTAL EXPENSES
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a. The cost of engineering, planning and designing the Facilities;
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b. All costs, including costs of the property owner petitioning to form the Community Facilities District, associated with the creation of the Community Facilities District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwis e incurred in order to carry out the authorized purposes of the Community Facilities District; and c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
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EXHIBIT C
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) IMPROVEMENT AREA NO. 1
Special Taxes (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Improvement Area No. 1 (“IA No. 1”) of Community Facilities District No. 2023-1 (Fairway Canyon) of the City of Beaumont (“CFD No. 2023-1”). The amount of Special Taxes to be levied in each Fiscal Year on an Assessor’s Parcel, shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2023-1 by applying the appropriate Special Tax for Developed Property, Final Map Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof, shall be taxed to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel with a stand-alone Dwelling Unit.
“Acre” or “Acreage” means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State of California.
“Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of IA No. 1: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City, designee thereof, or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD, or any designee thereof complying with arbitrage rebate requirements; the costs to the City, CFD, or any designee thereof complying with City or major property owner disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs associated with the release of funds from an escrow account; and the costs associated with the issuance of Bonds, the City's annual admini stration fees, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or The CFD for any other administrative purposes, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.
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“Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number within the boundaries of the CFD and Improvement Area No.1.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assigned Special Tax A” means the Special Tax of that name described in Section D below.
“Backup Special Tax A” means the Special Tax of that name described in Section D below.
“Bonds” means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long -term contracts, or any refunding thereof, to which Special Taxes A of IA No. 1 have been pledged.
“Boundary Map” means a recorded map of the CFD which indicates the boundaries of the CFD and Improvement Area No. 1.
“Building Permit” means a permit for new construction for a residential dwelling or non -residential structure. For purpose of this definition, “Building Permit” shall not include permit s for construction or installation, retaining walls, utility improvements, or other such improvements not intended for human habitation.
“Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor’s Parcel, as determined by the CFD Administrator.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax A Requirement, the Special Tax B Requirement, the Special Tax C (Contingent) Requirement, the Special Tax D Requirement, and providing for the levy and collection of the Special Taxes.
“CFD No. 2023-1” or “CFD” means City of Beaumont Community Facilities District No. 2023 -1 (Fairway Canyon) established by the City under the Act.
“City” means the City of Beaumont.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2023 - 1, or its designee.
“Consumer Price Index” or “CPI” means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for “All Items for All Urban Consumers: in the Riverside -San Bernardino-Ontario area.” In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area.
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“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to March 1st preceding the Fiscal Year in which the Special Tax is being levied, as determined by the CFD Administrator.
“Dwelling Unit” or “DU” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. The Building Square Footage of an Accessory D welling Unit shall be included when classifying the property for Special Tax A, but an Accessory Dwelling Unit shall not be considered a Dwelling Unit for purposes of Special Tax B, Special Tax C (Contingent) or Special Tax D.
“Exempt Property” means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F, as determined by the CFD Administrator.
“Final Map” means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which building permits may be issued without furthe r subdivision.
“Final Map Property” means Assessor’s Parcels: (i) that are included in a Final Map that was recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit was not issued prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied, as determined by the CFD Administrator.
“Fiscal Year” means the period commencing on July 1 of any year and ending the following June
30. “Improvement Area No. 1” or “IA No. 1” means the property in the CFD designated as Improvement Area 1 on the Boundary Map.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
“Land Use Category” means any of the categories listed in the tables included in Table 1 and Table 2 of Section D, Table 4 of Section M, Table 6 of Section S, and Table 8 of Section Y.
“Lot” means an individual legal lot created by a Final Map for which a Building Permit could be issued.
“Maintenance Services” means the services permitted under the Act including, without limitation, street sweeping, traffic signal maintenance, the maintenance of landscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, flood and storm protection services, and the operation of storm drainage systems contained within the boundaries of CFD No. 2023 -1 and the City.
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“Maintenance Services (Contingent)” means the Maintenance Services described above and permitted under the Act, contained within CFD No. 2023 -1 and the City, which are proposed to be maintained and paid for through the Property Owner Association, and all to which the City has been granted an easement allowing such maintenance in any Fiscal Year following a Failure to Perform as defined in Section Q hereof.
“Maximum Special Tax” means the Maximum Special Tax A, the Maximum Special Tax B, the Maximum Special Tax C (Contingent), or the Maximum Special Tax D, as applicable.
“Maximum Special Tax A” means the maximum Special Tax A, determined in accordance with Section D, which can be levied by IA No. 1 of CFD No. 2023-1.
“Maximum Special Tax B” means the maximum Special Tax B, determined in accordance w ith Section M, which can be levied by IA No. 1 of CFD No. 2023-1.
“Maximum Special Tax C (Contingent)” means the maximum Special Tax C (Contingent), determined in accordance with Section S, which can be levied by IA No. 1 of CFD No. 2023-1 following the Fiscal Year in which there is a Failure to Perform as defined in Section Q hereof. The Maximum Special Tax C (Contingent), if levied, will be levied on all Assessor’s Parcels in addition to, and not in lieu of, the Maximum Special Tax B.
“Maximum Special Tax D” means the maximum Special Tax D, determined in accordance with Section Y, which can be levied by IA No. 1 of CFD No. 2023-1.
“Minimum Taxable Acreage” means the smallest allowable amount of Acreage of Taxable Property. For IA No. 1 of CFD No. 2023-1, it shall not be less than shown in Table 3 of Section F.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for any type of non-residential use, as determined by the CFD Administrator.
“Operating Fund for Maintenance Services” means a fund that shall be maintained for IA No. 1 of CFD No. 2023-1 for any Fiscal Year to pay for the actual costs of providing the Maintenance Services and the Administrative Expenses attributable to providing such Maintenance Services.
“Operating Fund for Maintenance Services (Contingent)” means a fund that shall be maintained for IA No. 1 of CFD No. 2023-1 for any Fiscal Year to pay for the actual costs of providing the Maintenance Services (Contingent) and the Administrative Expenses attributable t o providing such Maintenance Services (Contingent).
“Operating Fund for Public Services” means a fund that shall be maintained for IA No. 1 of CFD No. 2023-1 for any Fiscal Year to pay for the actual costs of providing the Public Services and the Administrative Expenses attributable to providing such Public Services.
“Operating Fund Balance” means the amount of funds in the applicable operating fund at the end of the preceding Fiscal Year.
“Partial Prepayment Amount” means the amount required to prepay a portion of the Special Tax A obligation for an Assessor’s Parcel, as described in Section H.
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“Prepayment Amount” means the amount required to prepay the Special Tax A obligation in full for an Assessor’s Parcel, as described in Section G.
“Property Owner Association” means the Fairway Canyon Community Association, or its successors, which was formed for the purpose of marketing, selling, and managing the common interests of the homes and lots within IA No. 1 of CFD No. 2023-1.
“Property Owner’s Association Property” means all Assessor’s Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to the Property Owner Association, including any master or sub - association.
“Proportionately” means for Taxable Property for Special Tax A that is (i) Developed Property, that the ratio of the actual Special Tax A levy to the Assigned Special Tax A is the same for all Assessor’s Parcels of Developed Property, (ii) Final Map Property, that the ratio of the actual Special Tax A levy to the Maximum Special Tax A is the same for all Assessor’s Parcels of Final Map Property, and (iii) Undeveloped Property and Provisional Undeveloped Property, that the ratio of the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is the same for a ll Assessor’s Parcels of Undeveloped Property and Provisional Undeveloped Property.
For Special Tax B that is (i) Developed Property, that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is the same for all Assessor’s Parcels of De veloped Property, including Developed Property with attached Dwelling Units and (ii) Final Map Property, that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is the same for all Assessor’s Parcels of Final Map Property.
For Special Tax C (Contingent) that is (i) Developed Property, that the ratio of the actual Special Tax C (Contingent) levy to the Maximum Special Tax C (Contingent) is the same for all Assessor’s Parcels of Developed Property, including Developed Property with attac hed Dwelling Units and (ii) Final Map Property, that the ratio of the actual Special Tax C (Contingent) levy to the Maximum Special Tax C (Contingent) is the same for all Assessor’s Parcels of Final Map Property.
For Special Tax D, that the ratio of the actual Special Tax D levy to the Maximum Special Tax D is the same for all Assessor’s Parcels of Developed Property, including Developed Property with attached Dwelling Units.
“Provisional Undeveloped Property” means Public Property or Property Owner Association Property that is not Exempt Property pursuant to Section F.
“Public Property” means all Assessor’s Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights -of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Public Services” means the services permitted under the Act including, without limitation, police and fire protection, ambulance and paramedic services provided within the boundaries of CFD No. 2023-1 and the City.
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“Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, as determined by the CFD Administrator.
“Special Tax(es)” means the Special Tax A, the Special Tax B, the Special Tax C (Contingent), and the Special Tax D.
“Special Tax A” means any of the Special Taxes authorized to be levied within IA No. 1 of CFD No. 2023-1 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax A Requirement” means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses applicable to the Special Tax A, (iii) the costs associated with the release of funds from an escrow account, (iv) any amou nt required to establish or replenish any reserve funds established in association with the Bonds, (v) the collection or accumulation of funds for the acquisition or construction of facilities authorized by IA No. 1 of CFD No. 2023-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Final Map Property or Undeveloped Property, less (vi) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond Indenture, fiscal agent agreement, or trust agreement.
“Special Tax B” means any of the Special Taxes authorized to be levied by IA No. 1 of CFD No. 2023-1 pursuant to the Act to fund the Special Tax B Requirement. Under no circumstances shall this Special Tax be eligible for prepayment of any kind.
“Special Tax B Requirement” means the amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2023-1 for Maintenance Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax B, less (iv) a credit in an amount equal to the Operating Fund Balance.
Under no circumstances shall the Special Tax B Requirement include funds for bonds.
“Special Tax C (Contingent)” means any of the Special Taxes authorized to be levied by IA No. 1 of CFD No. 2023-1 pursuant to the Act to fund the Special Tax C (Contingent) Requirement. Under no circumstances shall this Special Tax be eligible for prepayment of any kind. The Special Tax C (Contingent), if levied, will be levied on all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax B.
“Special Tax C (Contingent) Requirement” means that amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD N o. 2023-1 for Maintenance Services (Contingent) in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services (Contingent), (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services (Contingent) as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax C (Contingent), less (iv) a credit in an amount equal to the Operating Fund Balance. Under no circumstances shall the Special Tax C (Contingent) Requirement include funds for bonds. The Special Tax C (Contingent) Requirement, if initiated, will be applied to all Assessor’s Parcels in addition to, and not in lieu of, the Special Tax B Requirement.
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“Special Tax D” means any of the Special Taxes authorized to be levied by IA No. 1 of CFD No. 2023-1 pursuant to the Act to fund the Special Tax D Requirement. Under no circumstances shall this Special Tax be eligible for prepayment of any kind.
“Special Tax D Requirement” means the amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2023-1 for Public Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Public Services, (ii) amount necessary to fund an operating reserve for the costs of Public Services as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax D, less (iv) a credit in an amount equal to the Operating Fund Balance. Under no circumstances shall the Special Tax D Requirement include funds for bonds.
“Taxable Property” means all Assessor’s Parcels within IA No. 1 of CFD No. 2023-1, which are not Exempt Property, as determined by the CFD Administrator.
“Taxable Unit” means either a Dwelling Unit or an Acre.
“Trustee” means the firm that holds and administers assets on behalf of IA No. 1 of CFD No. 2023 - 1 under and pursuant to the Indenture.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property or Final Map Property, as determined by the CFD Administrator.
“Zone(s)” means Zone 1 or 2 as geographically identified on the Boundary Map.
“Zone 1” means the specific geographic area depicted as Improvement Area No. 1, Zone 1 on the Boundary Map.
“Zone 2” means the specific geographic area depicted as Improvement Area No. 1, Zone 2 on the Boundary Map.
B. SPECIAL TAX A
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax A on all Taxable Property pursuant to Section E, to fund the Special Tax A Requirement.
C. CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2023-2024, each Assessor’s Parcel shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be assigned to one of the Zones based upon its geographic location and further classified as Developed Property, Final Map Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Residential Property or Non-Residential Property. Lastly, Assessor’s Parcels of Residential Property shall be further categorized into Land Use Categories based on the Building Square Footage for such Assessor’s Parcel.
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D. MAXIMUM SPECIAL TAX A
1. Developed Property
The Maximum Special Tax A for each Assessor’s Parcel of Residential Property that is classified as Developed Property in any Fiscal Year shall be the amount determined by the greater of (i) the application of the Assigned Special Tax A in Tables 1 and 2 included in Section D below or (ii) the application of t he Backup Special Tax A. The Maximum Special Tax A for each Assessor’s Parcel of Non-Residential Property that is classified as Developed Property in any Fiscal Year shall be the Assigned Special Tax A in the tables below.
a. Assigned Special Tax A
Each Fiscal Year, beginning with Fiscal Year 2023-2024, each Assessor’s Parcel of Developed Property shall be subject to an Assigned Special Tax A. The Assigned Special Tax A applicable to an Assessor's Parcel of Developed Property for any Fiscal Year shall be determined pursuant to Tables 1 and 2 below based upon the Zone in which the Assessor's Parcel is located.
TABLE 1
ASSIGNED SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1
Land Use Category
Taxable
Unit
Building
Square
Footage
Assigned Special Tax A
Per Taxable Unit
1. Residential Property DU Less than 2,100 $1,328
2. Residential Property DU 2,100 – 2,400 $1,376
3. Residential Property DU Greater than 2,400 $1,414
4. Non-Residential Property Acre N/A $8,204
TABLE 2
ASSIGNED SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 2
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned Special Tax
A Per Taxable Unit
1. Residential Property DU Less than 1,600 $1,106
2. Residential Property DU 1,600 – 1,800 $1,215
3. Residential Property DU 1,801 – 2,000 $1,325
4. Residential Property DU Greater than 2,000 $1,414
5. Non-Residential Property Acre N/A $8,456
b. Backup Special Tax A
When a Final Map is recorded, the CFD Administrator shall determine which Zone the Final Map area lies within and the Backup Special Tax A for an Assessor’s Parcel classified or to be classified as Residential Property within such Final Map shall be determ ined by
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multiplying the Undeveloped Property Maximum Special Tax A rate per Acre for the applicable Zone by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with Non-Residential Property, Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section F and dividing such amount by the number of Assessor’s Parcels within such Final Map classified as either (i) Residential Property or (ii) Final Map Property for which a Building Permit is expected to be issued for Residential Property (i.e., the number of residential lots).
Notwithstanding the forgoing, if Assessor’s Parcels classified or to be classified as Residential Property are subsequently changed or modified by re cordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified using the methodology described in the preceding paragraph.
The Backup Special Tax shall not apply t o Non-Residential Property, Public Property, Property Owners’ Association Property, or Provisional Undeveloped Property.
2. Final Map Property
The Maximum Special Tax A for each Assessor’s Parcel of Final Map Property expected to be classified as Residential Property shall be the Backup Special Tax A computed pursuant to Section D.1.b above.
The Maximum Special Tax A for each Assessor’s Parcel of Final Map Property expected to be classified as Non-Residential Property shall be determined pursuant to the rate per Acre below for the Zone in which the Assessor's Parcel is located:
1. Zone 1 rate per Acre - $8,204
2. Zone 2 rate per Acre - $8,456
3. Undeveloped Property and/or Provisional Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel classified as Undeveloped Property or Provisional Undeveloped Property shall be determined pursuant to the rate per Acre below for the Zone in which the Assessor's Parcel is located:
1. Zone 1 rate per Acre - $8,204
2. Zone 2 rate per Acre - $8,456
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX A
1. Commencing with Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes A on all Taxable Property until the amount of Special Tax A equals the Special Tax A Requirement in accordance with the following steps:
Step One: The Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax A rates in the tables included in Section D as needed to satisfy the Special Tax A Requirement.
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Step Two: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Final Map Property, at up to 100% of the Maximum Special Tax A applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax A Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property, at up to 100% of the Maximum Special Tax A applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax A Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then for each Assessor's Parcel of Developed Property for which the Maximum Special Tax A is the Backup Special Tax A, the Special Tax A shall be increased Proportionately from the Assigned Special Tax A up to 100% of the Backup Special Tax A as needed to satisfy the Special Tax A Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property, at up to 100% of the Maximum Special Tax A applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax A Requirement.
Under no circumstances will Special Tax A be levied against any Assessor's Parcel used as a private residence be increased as a consequence of delinquency or default by the owner of any other Assessor's Parcel or Parcels within the CFD by more than ten percent (10%) of the Special Tax A that would have been levied in that Fiscal Year, had there never been any such delinquencies or defaults, pursuant to California Government Code Section 53321(d), as in effect on the date of formation of CFD No. 2023-1.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than the amounts shown in Table 3 below.
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TABLE 3
MINIMUM TAXABLE ACRES
Tax Zone Acres
1 9.20
2 11.69
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than the Acres shown in Table 3 per Tax Zone. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxabl e Property to less than the Acres shown in Table 3 per Tax Zone will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX A
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $2,500,000, expressed in 2023 dollars, which shall increase by the Construction Inflation Index on January 1, 2024, and on each January 1 thereafter, or such lower amount as (i) determined by the City as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2023-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes l evied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under IA No. 1 of CFD No. 2023-1.
“Construction Inflation Index” means the annual percentage change in the Engineering News- Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded through existing construction or escrow accounts that have been funded by the Outstanding Bonds, and minus public facility costs funded by interest ear nings on the Construction Fund actually earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Taxes A which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Taxes A.
The Special Tax A obligation of an Assessor's Parcel of Developed Property, an Assessor’s Parcel of Final Map Property, Undeveloped Property for which a building permit has been issued, or an Assessor’s Parcel of Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding wi th respect to such Assessor’s
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Parcel at the time the Special Tax A obligation would be prepaid. The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as described below.
An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent to prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by IA No. 1 of CFD No. 2023-1 in calculating the proper Prepayment Amount.
Within fifteen (15) days of receipt of such non-refundable deposit, the City shall notify such owner of the Prepayment Amount of such Assessor’s Parcel.
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance
plus Administrative Fee
less Reserve Fund Credit
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
1. For Assessor’s Parcels of Developed Property, compute the Assigned Special Tax A and the Backup Special Tax A applicable to the Assessor’s Parcel. For Assessor’s Parcels of Final Map Property or Undeveloped Property, compute the Assigned Special Tax A and the Backup Special Tax A as though it was already designated as Developed Property based upon the building permit issued or to be issued for that Assessor’s Parcel.
2. For each Assessor’s Parcel of Developed Property, Final Map Property, or Undeveloped Property to be prepaid, (a) divide the Assigned Special Tax A computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Special Tax A applicable to all Assessor’s Parcels of Taxable Property at buildout of IA No. 1, as reasonably determined by the CFD Administrator, and (b) divide the Backup Special Tax A computed pursuant to paragraph 1 for such Assessor’s Parcel by the sum of the estimated Backup Special Tax A applicable to all Assessor’s Parcels of Taxable Property at bu ildout of IA No. 1, as reasonably determined by the CFD Administrator.
3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the Outstanding Bonds. The product shall be the “Bond Redemption Amount”.
4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the “Redemption Premium.”
5. Compute the Future Facilities Cost.
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6. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the amount determined pursuant to paragraph 5 to determine the Future Facilities Cost to be prepaid (the “Future Facilities Amount”). Notwithstanding the foregoing, the Future Facilities Amount shall in no event be less than 0.
7. Compute the amount needed to pay interest on the Bond Redemption Amount, the Redemption Premium, less the Reserve Fund Credit (see step 11) to be redeemed with the proceeds of the Prepayment Amount until the earliest redemption date for the Outstanding Bonds.
8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds.
9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the “Defeasance.”
10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the “Administrative Fee.”
11. Calculate the “Reserve Fund Credit” as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balanc e in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithsta nding the foregoing, the Reserve Fund Credit shall in no event be less than 0.
12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit.
With respect to a Special Tax A obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of IA No. 1 of CFD No. 2023-1 that there has been a prepayment of the Special Tax A obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax A obligation and the release of the Special Tax A lien on such Assessor’s Parcel and the obligation of such Assessor’s Parcel to pay such Special Taxes A shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property in each future Fiscal Year, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year.
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H. PARTIAL PREPAYMENT OF SPECIAL TAX A
The Special Tax A obligation of an Assessor's Parcel of Developed Property, or an Assessor’s Parcel of Final Map Property, or Undeveloped Property for which a building permit has been issued and will be classified as Developed Property in the next Fiscal Year, as calculated in this Section H below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special Tax A obligation would be prepaid.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = PH x F
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
PH = the Prepayment Amount calculated according to Section G.
F = the percent by which the owner of the Assessor’s Parcel is partially prepaying the Special Tax A obligation.
With respect to any Assessor’s Parcel that is partially prepaid, the City Council shall indicate in the record of IA No. 1 of CFD No. 2023-1 that there has been a partial prepayment of the Special Tax A obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax A obligation, to indicate the partial prepayment of the Special Tax A obligation and the partial release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay such prepaid portion of the Special Tax A shall cease.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property in each future Fiscal Year after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year.
I. TERMINATION OF SPECIAL TAX A
For each Fiscal Year that any Bonds are outstanding the Special Tax A shall be levied on all Assessor’s Parcels subject to the Special Tax A as necessary to satisfy the Special Tax A Requirement. The Special Tax A shall cease not later than the 2063-2064 Fiscal Year, however, Special Tax A will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the IA No. 1 Bonds have been paid; (ii) all authorized facilities of IA No. 1 have been acquired and all reimbursements have been paid pursuant to the acquisition agreement related to IA No. 1, (iii) no delinquent Special Tax A remain uncollected and (iv) all other obligations of IA No. 1 Special Tax A have been satisfied.
J. MANNER OF COLLECTION
The Special Tax A shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that IA No. 1 may collect Special Tax A at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
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K. SPECIAL TAX B
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax B on Taxable Property pursuant to Section N, up to the applicable Maximum Special Tax B to fund the Special Tax B Requirement.
L. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX B
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within IA No. 1 shall be classified as Developed Property or Final Map Property and shall be subject to the levy of Special Tax B as determined pursuant to Sections M and N below for all Zones. Assessor’s Parcels of Developed Property and Final Map Property shall be clas sified as either Residential Property or Non-Residential Property. For Residential Property with attached Dwelling Units, the number of Dwelling Units shall be determined by the CFD Administrator.
Undeveloped Property shall not be subject to Maximum Special Tax B.
M. MAXIMUM SPECIAL TAX B
For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property which are classified as Residential Property all such Assessor’s Parcels shall be assigned the number of Dwelling Unit(s) constructed thereon, or approved to be constructed thereon, as specified in or shown on the Building Permit(s) issued or Final Map as determined by the CFD Administrator. If a single family attached building or buildings have been built on an Assessor's Parcel, the CFD Administrator shall determine the actual number of Dwelling Units contained within the building or buildings, and the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying t he actual number of Dwelling Units by the Maximum Special Tax B per Dwelling Unit.
For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Final Map Property which are classified as Non -Residential Property, all such Assessor’s Parcels shall be assigned the number of Acres as shown on the Final Map as determined by the CFD Administrator. Once the CFD Administrator determines the actual number of Acres for an Assessor’s Parcel, the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Acres by the Maximum Special Tax B per Acre.
1. Developed Property
a. Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Taxable Property for Fiscal Year 2023-2024 is identified in Table 4 below:
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TABLE 4
MAXIMUM SPECIAL TAX B FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit
Maximum Special Tax B
Per Taxable Unit
1. Residential Property DU $425
2. Non-Residential Property Acre $2,544
On each July 1, commencing July 1, 2024, the Maximum Special Tax B for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) two percent (2%).
b. Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved by the City for such Assessor's Parcel. The CFD Administrator's allocation to each type of property shall be final.
2. Final Map Property
The Maximum Special Tax B for each Assessor’s Parcel of Final Map Property for Fiscal Year 2023-2024 is identified in Table 5 below:
TABLE 5
MAXIMUM SPECIAL TAX B RATES
FOR FINAL MAP PROPERTY
Maximum Special Tax B
Per Assessor’s Parcel
$425
On each July 1, commencing July 1, 2024, the Maximum Special Tax B for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) two percent (2%).
N. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX B
Commencing with Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax B on Taxable Property until the amount of Special Tax B equals the Special Tax B Requirement in accordance with the following steps:
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Step One: The Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax B as needed to satisfy the Special Tax B Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax B Requirement after the first step has been completed, the Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Final Map Property, at up to 100% of the Maximum Special Tax B applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax B Requirement.
O. DURATION OF SPECIAL TAX B
The Special Tax B shall be levied in perpetuity to fund the Special Tax B Requirement, unless no longer required as determined at the sole discretion of the City Council.
P. MANNER OF COLLECTION
The Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that IA No. 1 may collect the Special Tax B at a different time or in a different manner if necessary to meet its funding requirements.
Q. SPECIAL TAX C (CONTINGENT)
The City Council may levy the Special Tax C (Contingent), applicable to all Zones, commencing in the first Fiscal Year following the occurrence of any of the following events (each such event, a “Failure to Perform”):
a. the Property Owner Association files a voluntary petition in bankruptcy or the approva l by a court of competent jurisdiction of a petition applicable to the Property Owner Association of any proceedings instituted under the Federal Bankruptcy Code, as amended;
b. the Property Owner Association is dissolved;
c. the Property Owner Association fails to levy annual assessments sufficient to fund (i) the maintenance for the then Property Owner Association owned and/or Property Owner Association maintained Maintenance Services (Contingent) or (ii) the replacement of such facilities related to the Maintenance Services (Contingent) in accordance with (A) the requirements of the then current reserve funding plan of the Property Owner Association performed pursuant to California Civil Code Section 5550 or (B) if California Civil Code 5550 is no longe r applicable, the requirements of the then applicable law and/or regulations governing the Property Owner Association’s requirements to budget for and finance such replacement; or
d. the Property Owner Association fails to maintain the Maintenance Service s (Contingent) at the same level as defined within the Property Owner Association maintenance specifications. In the event the Property Owner Association maintenance specifications do not meet either the City or County maintenance requirements, the City Co uncil will
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have sole discretion to determine the required level of maintenance required for purposes of this section.
In the event of the occurrence of a Failure to Perform described in “c.” or “d.” above, the City shall give the Property Owner Association written notice of such event. If such Failure to Perform is reasonably capable of being cured within sixty (60) days from the date of such notice, the Property Owner Association shall have such period of time to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent). If such Failure to Perform is such that it is reasonably capable of being cured, but not within such sixty (60) day period and the Property Owner Association (i) initiates corrective action within su ch sixty (60) day period, and (ii) diligently, continually, and in good faith works to effect a cure of such Failure to Perform as soon as possible, then the Property Owner Association shall have such additional time, as is reasonably necessary, to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent).
The City Council may suspend the levy of Special Tax C (Contingent) if the Property Owner Association has cured the Failure to Perform to the satisfaction of the C ity Council and the Property Owner Association has agreed to such conditions as the City Council may find necessary to minimize the occurrence of such Failure to Perform in the future. In the event the City Council initiates the Special Tax C (Contingent), it will apply to all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax B.
R. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX C (CONTINGENT)
(d) For each Fiscal Year that Special Tax C (Contingent) is authorized to be levied, all Assessor’s Parcels classified as Developed Property or Final Map Property and shall be subject to the levy of Special Tax C as determined pursuant to Sections S and T below for all Zones. Assessor’s Parcels of Developed Property and Final Map Property shall be classified as either Residential Property or Non - Residential Property. For Residential Property the number of Dwelling Units shall be determined by the CFD Administrator.
Undeveloped Property shall not be subject to Maximum Special Tax C (Contingent).
S. MAXIMUM SPECIAL TAX C (CONTINGENT)
For purposes of determining the applicable Maximum Special Tax C (Contingent) for Assessor’s Parcels of Developed Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Dwelling Unit(s) constructed thereon, or approved to be constructed thereon, as specified in or shown on the Building Permit(s) issued or Final Map as determined by the CFD Administrator. If a single family attached building o r buildings have been built on an Assessor's Parcel, the CFD Administrator shall determine the actual number of Dwelling Units contained within the building or buildings, and the Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax C (Contingent) per Dwelling Unit identified for the Assessor’s Parcel.
For purposes of determining the applicable Maximum Special Tax C (Contingent) for Assessor’s Parcels of Developed Property and Final Map Property which are classified as Non -Residential Property, all such Assessor’s Parcels shall be assigned the number of Acres as shown on the Final Map as determined by the CFD Administrator. Once the CFD Administrator determines the actual
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number of Acres for an Assessor’s Parcel, the Special Tax C (Contingent) levied against an Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Acres by the Maximum Special Tax C (Contingent) per Acre.
1. Developed Property
a. Maximum Special Tax C (Contingent)
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Taxable Property fo r Fiscal Year 2023-2024 is identified in Table 6 below for all Zones:
TABLE 6
MAXIMUM SPECIAL TAX C (CONTINGENT) FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit
Maximum Special Tax C (Contingent)
Per Taxable Unit
1. Residential Property DU $249
2. Non-Residential Property Acre $1,487
On each July 1, commencing July 1, 2024, the Maximum Special Tax C (Contingent) for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) two percent (2%).
b. Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax C (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax C (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The CFD Administrator 's allocation to each type of property shall be final.
2. Final Map Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Final Map Property for Fiscal Year 2023-2024 is identified in Table 7 below:
TABLE 7
MAXIMUM SPECIAL TAX C (CONTINGENT) FOR
FINAL MAP PROPERTY
Maximum Special Tax C
(Contingent)
Per Assessor’s Parcel
$249
On each July 1, commencing July 1, 2024, the Maximum Special Tax C (Contingent) for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change
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in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) two percent (2%).
T. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX C (CONTINGENT) Commencing with the first Fiscal Year in which Special Tax C (Contingent) is authorized to be levied and for each following Fiscal Year, the Council shall determine the Special Tax C (Contingent) Requirement and shall levy the Special Tax C (Contingent) on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax C (Contingent) equals the Special Tax C (Contingent) Requirement. The Special Tax C (Contingent) shall be levied for each Fiscal Year as follows:
Step One: The Special Tax C (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property at up to 100% of the applicable Maxi mum Special Tax C (Contingent) to satisfy the Special Tax C (Contingent) Requirement;
Step Two: If additional moneys are needed to satisfy the Special Tax C (Contingent) Requirement after the first step has been completed, the Special Tax C (Contingent) shall be levied Proportionately on each Assessor’s Parcel of Final Map Property at up to 100% of the Maximum Special Tax C (Contingent) for Final Map Property.
U. DURATION OF SPECIAL TAX C (CONTINGENT)
The Special Tax C (Contingent) shall be levied in perpetuity to fund the Special Tax C (Contingent) Requirement, unless no longer required as determined at the sole discretion of the City Council.
V. MANNER OF COLLECTION OF SPECIAL TAX C (CONTINGENT)
The Special Tax C (Contingent) shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that IA No. 1 may collect the Special Tax C (Contingent) at a different time or in a different manner if necessary to meet its funding requirements.
W. SPECIAL TAX D
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax D on all Taxable Property, up to the applicable Maximum Special Tax D to fund the Special Tax D Requirement.
X. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX D
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within IA No. 1 classified as Residential Property shall be subject to the levy of Special Tax D as determined pursuant to Sections Y and Z below for all Zones. For Residential Property with attached Dwelling Units, the number of Dwelling Units shall be determined by the CFD Administrator.
Final Map Property, Non-Residential Property, and Undeveloped Property shall not be subject to Maximum Special Tax D.
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Y. MAXIMUM SPECIAL TAX D
1. Developed Property
a. Maximum Special Tax D
The Maximum Special Tax D for each Assessor’s Parcel of Residential Property for Fiscal Year 2023-2024 is identified in Table 8 below:
TABLE 8
MAXIMUM SPECIAL TAX D FOR RESIDENTIAL PROPERTY
Land Use Category
Taxable
Unit
Maximum Special Tax B
Per Taxable Unit
1. Residential Property DU $509
On each July 1, commencing July 1, 2023, the Maximum Special Tax D for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) five percent (5%).
Z. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX D
Commencing with Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax D until the amount of Special Tax D equals the Special Tax D Requirement in accordance with the following steps:
Step One: The Special Tax D shall be levied Proportionately on each Assessor’s Parcel of Residential Property at up to 100% of the applicable Maximum Special Tax D as needed to satisfy the Special Tax D Requirement.
AA. DURATION OF SPECIAL TAX D
The Special Tax D shall be levied in perpetuity to fund the Special Tax D Requirement, unless no longer required as determined at the sole discretion of the City Council.
BB. MANNER OF COLLECTION
The Special Tax D shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that IA No. 1 may collect the Special Tax D at a different time or in a different manner if necessary to meet its funding requirements.
CC. APPEALS
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reas ons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its
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determination. If the CFD Administrator agrees with t he appellant, the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error:
(i) amend the Special Tax levy for the current Fiscal Year prior to the payment date;
(ii) require the CFD to reimburse the taxpayer the amount of the overpayment to the extent of available funds of IA No. 1 of CFD No. 2023-1; or (iii) grant a credit against, eliminate or reduce the future Special Taxes levied on the taxpayer’s property within IA No. 1 of CFD No. 2023-1 in the amount of the overpayment.
DD. INTERPRETATIONS
The City Council may interpret this Rate and Method of Apportionment of Special Tax by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.
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EXHIBIT D
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) IMPROVEMENT AREA NO. 2
Special Taxes (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Improvement Area No. 2 (“IA No. 2”) of Community Facilities District No. 2023 -1 (Fairway Canyon) of the City of Beaumont (“CFD No. 2023-1”). The amount of Special Taxes to be levied in each Fiscal Year on an Assessor’s Parcel, shall be determined by the City Council of the City of Beaumont, acting in its capacity as the legislative body of CFD No. 2023 -1 by applying the appropriate Special Tax for Developed Property, Final Map Property, Undevelo ped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof, shall be taxed to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel with a stand-alone Dwelling Unit.
“Acre” or “Acreage” means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel m ap or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State of California.
“Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of IA No. 2: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City, designee thereof, or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the di scharge of the duties required of it under the Indenture; the costs to the City, CFD, or any designee thereof complying with arbitrage rebate requirements; the costs to the City, CFD, or any designee thereof complying with City or major property owner disc losure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs associated with the release of funds from an escrow account; and the costs associated with the issuance of Bonds, the City's annual administration fees, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or The CFD for any other administrative purposes, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure, or otherwise addressing the disposition of delinquent Special Taxes.
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“Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number within the boundaries of the CFD and Improvement Area No.1.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assigned Special Tax A” means the Special Tax of that name described in Section D below.
“Backup Special Tax A” means the Special Tax of that name described in Section D below.
“Bonds” means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long -term contracts, or any refunding thereof, to which Special Taxes A of IA No. 2 have been pledged.
“Boundary Map” means a recorded map of the CFD which indicates the boundaries of the CFD and Improvement Area No. 2.
“Building Permit” means a permit for new construction for a residential dwelling or non-residential structure. For purpose of this definition, “Building Permit” shall not include permits for construction or installation, retaining walls, utility improvements, or other such improvements not intended for human habitation.
“Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor’s Parcel, as determined by the CFD Administrator.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax A Requirement, the Special Tax B Requirement, the Special Tax C (Contingent) Requirement, the Special Tax D Requirement, and providing for the levy and collection of the Special Taxes.
“CFD No. 2023-1” or “CFD” means City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) established by the City under the Act.
“City” means the City of Beaumont.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2023 - 1, or its designee.
“Consumer Price Index” or “CPI” means the Consumer Price Index published by the U.S. Bureau of Labor Statistics for “All Items for All Urban Consumers: in the Riverside -San Bernardino-Ontario area.” In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario area.
“County” means the County of Riverside.
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“Developed Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and for which a Building Permit for new construction has been issued on or prior to March 1st preceding the Fiscal Year in which the Special Tax is being levied, as determined by the CFD Administrator.
“Dwelling Unit” or “DU” means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental sep arate from adjacent residential dwelling units. The Building Square Footage of an Accessory Dwelling Unit shall be included when classifying the property for Special Tax A, but an Accessory Dwelling Unit shall not be considered a Dwelling Unit for purposes of Special Tax B, Special Tax C (Contingent) or Special Tax D.
“Exempt Property” means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F, as determined by the CFD Administrator.
“Final Map” means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which building permits may be issued without further subdivision.
“Final Map Property” means Assessor’s Parcels: (i) that are included in a Final Map that was recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit was not issued prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied, as determined by the CFD Administrator.
“Fiscal Year” means the period commencing on July 1 of any year and ending the following June
30. “Improvement Area No. 2” or “IA No. 2” means the property in the CFD designated as Improvement Area 1 on the Boundary Map.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.
“Land Use Category” means any of the categories listed in the tables included in Table 1, Table 2, and Table 3 of Section D, Table 5 of Section M, Table 7 of Section S, and Table 9 of Section Y.
“Lot” means an individual legal lot created by a Final Map for which a Building Permit could be issued.
“Maintenance Services” means the services permitted under the Act including, without limitation, street sweeping, traffic signal maintenance, the maintenance of landscaping and lighting of publicly owned parks, parkways, streets, roads and open spaces, flood and storm protection services, and the operation of storm drainage systems contained within the boundaries of CFD No. 2023-1 and the City.
“Maintenance Services (Contingent)” means the Maintenance Services described above and permitted under the Act, contained within CFD No. 2023 -1 and the City, which are proposed to be
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maintained and paid for through the Property Owner Association, and all to which the City has been granted an easement allowing such maintenance in any Fiscal Year following a Failure to Perform as defined in Section Q hereof.
“Maximum Special Tax” means the Maximum Special Tax A, the Maximum Special Tax B, the Maximum Special Tax C (Contingent), or the Maximum Special Tax D, as applicable.
“Maximum Special Tax A” means the maximum Special Tax A, determined in accordance with Section D, which can be levied by IA No. 2 of CFD No. 2023-1.
“Maximum Special Tax B” means the maximum Special Tax B, determined in accordance with Section M, which can be levied by IA No. 2 of CFD No. 2023-1.
“Maximum Special Tax C (Contingent)” means the maximum Special Tax C (Contingent), determined in accordance with Section S, which can be levied by IA No. 2 of CFD No. 2023-1 following the Fiscal Year in which there is a Failure to Perform as defined in Section Q hereof. The Maximum Special Tax C (Contingent), if levied, will be levied on all Assessor’s Parcels in addition to, and not in lieu of, the Maximum Special Tax B.
“Maximum Special Tax D” means the maximum Special Tax D, determined in accordance with Section Y, which can be levied by IA No. 2 of CFD No. 2023-1.
“Minimum Taxable Acreage” means the smallest allowable amount of Acreage of Taxable Property. For IA No. 2 of CFD No. 2023-1, it shall not be less than shown in Table 4 of Section F.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for any type of non-residential use, as determined by the CFD Administrator.
“Operating Fund for Maintenance Services” means a fund that shall be maintained for IA No. 2 of CFD No. 2023-1 for any Fiscal Year to pay for the actual costs of providing the Maintenance Services and the Administrative Expenses attributable to providing such Maintenance Services.
“Operating Fund for Maintenance Services (Contingent)” means a fund that shall be maintained for IA No. 2 of CFD No. 2023-1 for any Fiscal Year to pay for the actual costs of providing the Maintenance Services (Contingent) and the Administrative Expenses attributable to providing such Maintenance Services (Contingent).
“Operating Fund for Public Services” means a fund that shall be maintained for IA No. 2 of CFD No. 2023-1 for any Fiscal Year to pay for the actual costs of providing the Public Services and the Administrative Expenses attributable to providing such Public Services.
“Operating Fund Balance” means the amount of funds in the applicable operating fund at the end of the preceding Fiscal Year.
“Partial Prepayment Amount” means the amount required to prepay a portion of the Special Tax A obligation for an Assessor’s Parcel, as described in Section H.
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“Prepayment Amount” means the amount required to prepay the Special Tax A obligation in full for an Assessor’s Parcel, as described in Section G.
“Property Owner Association” means the Fairway Canyon Community Association, or its successors, which was formed for the purpose of marketing, selling, and managing the common interests of the homes and lots within IA No. 2 of CFD No. 2023-1.
“Property Owner’s Association Property” means all Assessor’s Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to the Property Owner Association, including any master or sub - association.
“Proportionately” means for Taxable Property for Special Tax A that is (i) Developed Property, that the ratio of the actual Special Tax A levy to the Assigned Special Tax A is the same for all Assessor’s Parcels of Developed Property, (ii) Final Map Property, that the ratio of the actual Special Tax A levy to the Maximum Special Tax A is the same for all Assessor’s Parcels of Final Map Property, and (iii) Undeveloped Property and Provisional Undeveloped Property, that the ratio of the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is the same for all Assessor’s Parcels of Undeveloped Property and Provisional Undeveloped Property.
For Special Tax B that is (i) Developed Property, that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is the same for all Assessor’s Parcels of Developed Property, including Developed Property with attached Dwelling Units and (ii) Final Map Property, that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is the same for all Assessor’s Parcels of Final Map Property.
For Special Tax C (Contingent) that is (i) Developed Property, that the ratio of the actual Special Tax C (Contingent) levy to the Maximum Special Tax C (Contingent) is the same for all Assessor’s Parcels of Developed Property, including Developed Property with attached Dwelling Units and (ii) Final Map Property, that the ratio of the actual Special Tax C (Contingent) levy to the Maximum Special Tax C (Contingent) is the same for all Assessor’s Parcels of Final Map Property.
For Special Tax D, that the ratio of the actual Special Tax D levy to the Maximum Special Tax D is the same for all Assessor’s Parcels of Developed Property, including Developed Property with attached Dwelling Units.
“Provisional Undeveloped Property” means Public Property or Property Owner Association Property that is not Exempt Property pursuant to Section F.
“Public Property” means all Assessor’s Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights -of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use.
“Public Services” means the services permitted under the Act including, without limitation, police and fire protection, ambulance and paramedic services provided within the boundaries of CFD No. 2023-1 and the City.
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“Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, as determined by the CFD Administrator.
“Special Tax(es)” means the Special Tax A, the Special Tax B, the Special Tax C (Contingent), and the Special Tax D.
“Special Tax A” means any of the Special Taxes authorized to be levied within IA No. 2 of CFD No. 2023-1 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax A Requirement” means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses applicable to the Special Tax A, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, (v) the collection or accumulation of funds for the acquisition or construction of facilities authorized by IA No. 2 of CFD No. 2023-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Final Map Property or Undeveloped Property, less (vi) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond Indenture, fiscal agent agreement, or trust agreement.
“Special Tax B” means any of the Special Taxes authorized to be levied by IA No. 2 of CFD No. 2023-1 pursuant to the Act to fund the Special Tax B Requirement. Under no circumstances shall this Special Tax be eligible for prepayment of any kind.
“Special Tax B Requirement” means the amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2023-1 for Maintenance Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services, (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax B, less (iv) a credit in an amount equal to the Operating Fund Balance.
Under no circumstances shall the Special Tax B Requirement include funds for bond s.
“Special Tax C (Contingent)” means any of the Special Taxes authorized to be levied by IA No. 2 of CFD No. 2023-1 pursuant to the Act to fund the Special Tax C (Contingent) Requirement. Under no circumstances shall this Special Tax be eligible for pre payment of any kind. The Special Tax C (Contingent), if levied, will be levied on all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax B.
“Special Tax C (Contingent) Requirement” means that amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2023-1 for Maintenance Services (Contingent) in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs for Maintenance Services (Contingent), (ii) amount necessary to fund an operating reserve for the costs of Maintenance Services (Contingent) as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax C (Contingent), less (iv) a credit in an amount equal to the Operating Fund Balance. Under no circumstances shall the Special Tax C (Contingent) Requirement include funds for bonds. The Special Tax C (Contingent) Requirement, if initiated, will be applied to all Assessor’s Parcels in add ition to, and not in lieu of, the Special Tax B Requirement.
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“Special Tax D” means any of the Special Taxes authorized to be levied by IA No. 2 of CFD No. 2023-1 pursuant to the Act to fund the Special Tax D Requirement. Under no circumstances shall this Special Tax be eligible for prepayment of any kind.
“Special Tax D Requirement” means the amount required in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2023-1 for Public Services in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the (i) direct costs fo r Public Services, (ii) amount necessary to fund an operating reserve for the costs of Public Services as determined by the CFD Administrator, and (iii) Administrative Expenses applicable to the Special Tax D, less (iv) a credit in an amount equal to the Operating Fund Balance. Under no circumstances shall the Special Tax D Requirement include funds for bonds.
“Taxable Property” means all Assessor’s Parcels within IA No. 2 of CFD No. 2023-1, which are not Exempt Property, as determined by the CFD Administrator.
“Taxable Unit” means either a Dwelling Unit or an Acre.
“Trustee” means the firm that holds and administers assets on behalf of IA No. 2 of CFD No. 2023 - 1 under and pursuant to the Indenture.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property or Final Map Property, as determined by the CFD Administrator.
“Zone(s)” means Zone 1, 2, or 3 as geographically identified on the Boundary Map.
“Zone 1” means the specific geographic area depicted as Improvement Area No. 2, Zone 1 on the Boundary Map.
“Zone 2” means the specific geographic area depicted as Improvement Area No. 2, Zone 2 on the Boundary Map.
“Zone 3” means the specific geographic area depicted as Improvement Area No. 2, Zone 3 on the Boundary Map.
B. SPECIAL TAX A
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax A on all Taxable Property pursuant to Section E, to fund the Special Tax A Requirement.
C. CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2023-2024, each Assessor’s Parcel shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be assigned to one of the Zones based upon its geographic location and further classified as Developed Property, Final Map Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Residential Property or Non-Residential Property. Lastly, Assessor’s Parcels of Residential Property shall be further categorized into Land Use Categories based on the Building Square Footage for such Assessor’s Parcel.
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D. MAXIMUM SPECIAL TAX A
1. Developed Property
The Maximum Special Tax A for each Assessor’s Parcel of Residential Property that is classified as Developed Property in any Fiscal Year shall be the amount determined by the greater of (i) the application of the Assigned Special Tax A in Tables 1, 2, and 3 included in Section D below or (ii) the application of the Backup Special Tax A. The Maximum Special Tax A for each Assessor’s Parcel of Non-Residential Property that is classified as Developed Property in any Fiscal Year shall be the Assigned Special Tax A in the tables below.
c. Assigned Special Tax A
Each Fiscal Year, beginning with Fiscal Year 2023 -2024, each Assessor’s Parcel of Developed Property shall be subject to an Assigned Special Tax A. The Assigned Special Tax A applicable to an Assessor's Parcel of Developed Property for any Fiscal Year shall be determined pursuant to Tables 1, 2, and 3 below based upon the Zone in which the Assessor's Parcel is located.
TABLE 1
ASSIGNED SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned Special Tax
A Per Taxable Unit
1. Residential Property DU Less than 1,900 $1,481
2. Residential Property DU 1,900 – 2,100 $1,574
3. Residential Property DU 2,101 – 2,300 $1,609
4. Residential Property DU 2,301 – 2,500 $1,732
5. Residential Property DU 2,501 – 2,700 $1,809
6. Residential Property DU 2,701 – 2,900 $1,895
7. Residential Property DU Greater than 2,900 $1,954
8. Non-Residential Property Acre N/A $12,985
TABLE 2
ASSIGNED SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 2
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned Special Tax
A Per Taxable Unit
1. Residential Property DU Less than 2,200 $1,736
2. Residential Property DU 2,200 – 2,500 $1,837
3. Residential Property DU 2,501 – 2,800 $1,938
4. Residential Property DU 2,801 – 3,100 $1,969
5. Residential Property DU Greater than 3,100 $2,067
6. Non-Residential Property Acre N/A $12,615
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TABLE 3
ASSIGNED SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 3
Land Use Category
Taxable
Unit
Building
Square
Footage
Assigned Special Tax
A Per Taxable Unit
1. Residential Property DU Less than 2,600 $1,884
2. Residential Property DU 2,600 – 2,850 $1,960
3. Residential Property DU 2,851 – 3,100 $2,061
4. Residential Property DU Greater than 3,100 $2,135
5. Non-Residential Property Acre N/A $12,276
d. Backup Special Tax A
When a Final Map is recorded, the CFD Administrator shall determine which Zone the Final Map area lies within and the Backup Special Tax A for an Assessor’s Parcel classified or to be classified as Residential Property within such Final Map shall be determined by multiplying the Undeveloped Property Maximum Special Tax A rate per Acre for the applicable Zone by the total Acreage of Taxable Property within such Final Map, excluding the Acreage associated with Non-Residential Property, Public Property and/or Property Owners’ Association Property that is not Exempt Property pursuant to Section F and dividing such amount by the number of Assessor’s Parcels within such Final Map classified as either (i) Residential Property or (ii) Final Map Property for which a Building Permit is expected to be issued for Residential Property (i.e., the number of residential lots).
Notwithstanding the forgoing, if Assessor’s Parcels classified or to be classified as Residential Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for th e area that has been changed or modified using the methodology described in the preceding paragraph.
The Backup Special Tax shall not apply to Non-Residential Property, Public Property, Property Owners’ Association Property, or Provisional Undeveloped Property.
2. Final Map Property
The Maximum Special Tax A for each Assessor’s Parcel of Final Map Property expected to be classified as Residential Property shall be the Backup Special Tax A computed pursuant to Section D.1.b above.
The Maximum Special Tax A for each Assessor’s Parcel of Final Map Property expected to be classified as Non-Residential Property shall be determined pursuant to the rate per Acre below for the Zone in which the Assessor's Parcel is located:
1. Zone 1 rate per Acre - $12,985
2. Zone 2 rate per Acre - $12,615
3. Zone 3 rate per Acre - $12,276
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3. Undeveloped Property and/or Provisional Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel classified as Undeveloped Property or Provisional Undeveloped Property shall be determined pursuant to the rate per Acre below for the Zone in which the Assessor's Parcel is located:
1. Zone 1 rate per Acre - $12,985
2. Zone 2 rate per Acre - $12,615
3. Zone 3 rate per Acre - $12,276
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX A
1. Commencing with Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes A on all Taxable Property until the amount of Special Tax A equals the Special Tax A Requirement in accordance with the following steps:
Step One: The Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax A rates in the tables included in Section D as needed to satisfy the Special Tax A Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Final Map Property, at up to 100% of the Maximum Special Tax A applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax A Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property, at up to 100% of the Maximum Special Tax A applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax A Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then for each Assessor's Parcel of Developed Property for which the Maximum Special Tax A is the Backup Special Tax A, the Special Tax A shall be increased Proportionately from the Assigned Special Tax A up to 100% of the Backup Special Tax A as needed to satisfy the Special Tax A Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property, at up to 100% of the Maximum Special Tax A applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax A Requirement.
Under no circumstances will Special Tax A be levied against any Assessor's Parcel used as a private residence be increased as a consequence of delinquency or default by the owner of any other Assessor's Parcel or Parcels within the CFD by more than ten percent (10%) of the Special Tax A that would have been levied in that Fiscal Year, had there never been any such delinquencies or
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defaults, pursuant to California Government Code Section 53321(d), as in effect on the date of formation of CFD No. 2023-1.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than the amounts shown in Table 4 below.
TABLE 4
MINIMUM TAXABLE ACRES
Tax Zone Acres
1 14.83
2 16.34
3 10.96
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than the Acres shown in Table 4 per Tax Zone. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxabl e Property to less than the Acres shown in Table 4 per Tax Zone will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX A
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $7,500,000, expressed in 2023 dollars, which shall increase by the Construction Inflation Index on January 1, 2024, and on each January 1 thereafter, or such lower amount as (i) determined by the City as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2023-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes l evied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under IA No. 2 of CFD No. 2023-1.
“Construction Inflation Index” means the annual percentage change in the Engineering News- Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which
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ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded through existing construction or escrow accounts that have been funded by the Outstanding Bonds, and minus public facility costs funded by interest ear nings on the Construction Fund actually earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Taxes A which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Taxes A.
The Special Tax A obligation of an Assessor's Parcel of Developed Property, an Assessor’s Parcel of Final Map Property, Undeveloped Property for which a building permit has been issued, or an Assessor’s Parcel of Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding wi th respect to such Assessor’s Parcel at the time the Special Tax A obligation would be prepaid. The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as described below.
An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent to prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by IA No. 2 of CFD No. 2023-1 in calculating the proper Prepayment Amount.
Within fifteen (15) days of receipt of such non-refundable deposit, the City shall notify such owner of the Prepayment Amount of such Assessor’s Parcel.
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance
plus Administrative Fee
less Reserve Fund Credit
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
1. For Assessor’s Parcels of Developed Property, compute the Assigned Special Tax A and the Backup Special Tax A applicable to the Assessor’s Parcel. For Assessor’s Parcels of Final Map Property or Undeveloped Property, compute the Assigned Special Tax A and the Backup Special Tax A as though it was already designated as Developed Property based upon the building permit issued or to be issued for that Assessor’s Parcel.
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2. For each Assessor’s Parcel of Developed Property, Final Map Property, or Undeveloped Property to be prepaid, (a) divide the Assigned Special Tax A computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Special Tax A applicable to all Assessor’s Parcels of Taxable Property at buildout of IA No. 2, as reasonably determined by the CFD Administrator, and (b) divide the Backup Special Tax A computed pursuant to paragraph 1 for such Assessor’s Parcel by the sum of the estimated Backup Special Tax A applicable to all Assessor’s Parcels of Taxable Property at buildout of IA No. 2, as reasonably determined by the CFD Administrator.
3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the Outstanding Bonds. The product shall be the “Bond Redemption Amount”.
4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the “Redemption Premium.”
5. Compute the Future Facilities Cost.
6. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the amount determined pursuant to paragraph 5 to determine the Future Facilities Cost to be prepaid (the “Future Facilities Amount”). Notwithstanding the foregoing, the Future Facilities Amount shall in no event be less than 0.
7. Compute the amount needed to pay interest on the Bond Redemption Amount, the Redemption Premium, less the Reserve Fund Credit (see step 11) to be redeemed with the proceeds of the Prepayment Amount until the earliest redemption date for the Outstanding Bonds.
8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds.
9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the “Defeasance .”
10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the “Administrative Fee.”
11. Calculate the “Reserve Fund Credit” as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the
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prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than 0.
12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit.
With respect to a Special Tax A obligation that is prepaid pur suant to this Section G, the City Council shall indicate in the records of IA No. 2 of CFD No. 2023-1 that there has been a prepayment of the Special Tax A obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax A obligation and the release of the Special Tax A lien on such Assessor’s Parcel and the obligation of such Assessor’s Parcel to pay such Special Taxes A shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property in each future Fiscal Year, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year.
H. PARTIAL PREPAYMENT OF SPECIAL TAX A
The Special Tax A obligation of an Assessor's Parcel of Developed Property, or an Assessor’s Parcel of Final Map Property, or Undeveloped Property for which a building permit has been issued and will be classified as Developed Property in the next Fiscal Year, as calculated in this Section H below, may be partially prepaid, provided that there are no delinquent Special Taxes , penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special Tax A obligation would be prepaid.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP = PH x F
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
PH = the Prepayment Amount calculated according to Section G.
F = the percent by which the owner of the Assessor’s Parcel is partially prepaying the Special Tax A obligation.
With respect to any Assessor’s Parcel that is partially prepaid, the City Council shall indicate in the record of IA No. 2 of CFD No. 2023-1 that there has been a partial prepayment of the Special Tax A obligation and shall cause a suitable notice to be re corded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax A obligation, to indicate the partial prepayment of the Special Tax A obligation and the partial release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of the owner of such Assessor’s Parcel to pay such prepaid portion of the Special Tax A shall cease.
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Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property in each future Fiscal Year after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year.
I. TERMINATION OF SPECIAL TAX A
For each Fiscal Year that any Bonds are outstanding the Special Tax A shall be levied on all Assessor’s Parcels subject to the Special Tax A as necessary to satisfy the Special Tax A Requirement. The Special Tax A shall cease not later than the 2063-2064 Fiscal Year, however, Special Tax A will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the IA No. 2 Bonds have been paid; (ii) all authorized facilities of IA No. 2 have been acquired and all reimbursements have been paid pursuant to the acquisition agreement related to IA No. 2, (iii) no delinquent Special Tax A remain uncollected and (iv) all other obligations of IA No. 2 Special Tax A have been satisfied.
J. MANNER OF COLLECTION
The Special Tax A shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that IA No. 2 may collect Special Tax A at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
K. SPECIAL TAX B
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax B on Taxable Property pursuant to Section N, up to the applicable Maximum Special Tax B to fund the Special Tax B Requirement.
L. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX B
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within IA No. 2 shall be classified as Developed Property or Final Map Property and shall be subject to the levy of Special Tax B as determined pursuant to Sections M and N below for all Zones. Assessor’s Parcels of Developed Property and Final Map Property with attached Dwelling Units, shall be classified as either Residential Property or Non-Residential Property. For Residential Property the number of Dwelling Units shall be determined by the CFD Administrator.
Undeveloped Property shall not be subject to Maximum Special Tax B.
M. MAXIMUM SPECIAL TAX B
For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property which are classified as Residential Property all such Assessor’s Parcels shall be assigned the number of Dwelling Unit(s) constructed thereon, or approved to be constructed thereon, as specified in or shown on the Building Permit(s) issued or Final Map as determined by the CFD Administrator. If a single family attached building or buildings have been built on an Assessor's Parcel, the CFD Administrator shall determine the actual number of Dwelling Units contained within the building or buildings, and the Special Tax B levied against the Assessor’s Parcel in the next
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Fiscal Year shall be calculated by multiplying the actual number of Dwelling Units b y the Maximum Special Tax B per Dwelling Unit.
For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Final Map Property which are classified as Non -Residential Property, all such Assessor’s Parcels shall be assigned the number of Acres as shown on the Final Map as determined by the CFD Administrator. Once the CFD Administrator determines the actual number of Acres for an Assessor’s Parcel, the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Acres by the Maximum Special Tax B per Acre.
1. Developed Property
a. Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Taxable Property for Fiscal Year 2023-2024 is identified in Table 5 below:
TABLE 5
MAXIMUM SPECIAL TAX B FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit
Maximum Special Tax B
Per Assessor’s Parcel
1. Residential Property DU $425
2. Non-Residential Property Acre $2,544
On each July 1, commencing July 1, 2024, the Maximum Special Tax B for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) two percent (2%).
b. Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved by the City for such Assessor's Parcel. The CFD Administrator's allocation to each type of property shall be final.
2. Final Map Property
The Maximum Special Tax B for each Assessor’s Parcel of Final Map Property for Fiscal Year 2023-2024 is identified in Table 6 below:
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TABLE 6
MAXIMUM SPECIAL TAX B RATES
FOR FINAL MAP PROPERTY
Maximum Special Tax B
Per Assessor’s Parcel
$425
On each July 1, commencing July 1, 2024, the Maximum Special Tax B for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) two percent (2%).
N. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX B
Commencing with Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax B on Taxable Property until the amount of Special Tax B equals the Special Tax B Requirement in accordance with the following steps:
Step One: The Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax B as needed to satisfy the Special Tax B Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax B Requirement after the first step has been completed, the Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Final Map Property, at up to 100% of the Maximum Special Tax B applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax B Requirement.
O. DURATION OF SPECIAL TAX B
The Special Tax B shall be levied in perpetuity to fund the Special Tax B Requirement, unless no longer required as determined at the sole discretion of the City Council.
P. MANNER OF COLLECTION
The Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that IA No. 2 may collect the Special Tax B at a different time or in a different manner if necessary to meet its funding requirements.
Q. SPECIAL TAX C (CONTINGENT)
The City Council may levy the Special Tax C (Contingent), applicable to all Zones, commencing in the first Fiscal Year following the occurrence of any of the following events (each such event, a “Failure to Perform”):
a. the Property Owner Association files a voluntary petition in bankruptcy or the approval by a court of competent jurisdiction of a petition applicable to the Property Owner
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Association of any proceedings instituted under the Federal Bankruptcy Code, as amended;
b. the Property Owner Association is dissolved;
c. the Property Owner Association fails to levy annual assessments sufficient to fund (i) the maintenance for the then Property Owner Association owned and/or Property Owner Association maintained Maintenance Services (Contingent) or (ii) the replacement of such facilities related to the Maintenance Services (Contingent) in accordance with (A) the requirements of the then current reserve funding plan of the Property Owner Association performed pursuant to California Civil Code Section 5550 or (B) if California Civil Code 5550 is no longer applicable, the requirements of the then applicable law and/or regulations governing the Property Owner Association’s requirements to budget for and finance such replacement; or
d. the Property Owner Association fails to maintain the Maintenance Services (Contingent) at the same level as defined within the Property Owner Association maintenance specifications. In the event the Property Owner Association maintenance specifications do not meet either the City or County maintenance requirements, the City Council will have sole discretion to determine the required level of maintenance required for purposes of this section.
In the event of the occurrence of a Failure to Perform described in “c.” or “d.” abov e, the City shall give the Property Owner Association written notice of such event. If such Failure to Perform is reasonably capable of being cured within sixty (60) days from the date of such notice, the Property Owner Association shall have such period of time to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent). If such Failure to Perform is such that it is reasonably capable of being cured, but not within such sixty (60) day period and the Property Owner Association (i) initiates corrective action within such sixty (60) day period, and (ii) diligently, continually, and in good faith works to effect a cure of such Failure to Perform as soon as possible, then the Property Owner Association shall have such additional time, as is reasonably necessary, to cure such Failure to Perform prior to the levy by the City Council of Special Tax C (Contingent).
The City Council may suspend the levy of Special Tax C (Contingent) if the Property Owner Association has cured the Failure to Perform to the satisfaction of the City Council and the Property Owner Association has agreed to such conditions as the City Council may find necessary to minimize the occurrence of such Failure to Perform in the future. In the event the Ci ty Council initiates the Special Tax C (Contingent), it will apply to all Assessor’s Parcels of Taxable Property in addition to, and not in lieu of, the Special Tax B.
R. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX C (CONTINGENT)
(e) For each Fiscal Year that Special Tax C (Contingent) is authorized to be levied, all Assessor’s Parcels classified as Developed Property or Final Map Property and shall be subject to the levy of Special Tax C as determined pursuant to Sections S and T below for all Zones. Assessor’s Parcels of Developed Property and Final Map Property shall be classified as either Residential Property or Non - Residential Property. For Residential Property the number of Dwelling Units shall be determined by the CFD Administrator.
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Undeveloped Property shall not be subject to Maximum Special Tax C (Contingent).
S. MAXIMUM SPECIAL TAX C (CONTINGENT)
For purposes of determining the applicable Maximum Special Tax C (Contingent) for Assessor’s Parcels of Developed Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Dwelling Unit(s) constructed thereon, or approved to be constructed thereon, as specified in or shown on the Building Permit(s) issued or Final Map as determined by the CFD Administrator. If a single family attached building or buildings have been built on an Assessor's Parcel, the CFD Administrator shall determine the actual number of Dwelling Units contained within the building or buildings, and the Special Tax C (Continge nt) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax C (Contingent) per Dwelling Unit identified for the Assessor’s Parcel.
For purposes of determining the applicable Maximum Special Tax C (Contingent) for Assessor’s Parcels of Developed Property and Final Map Property which are classified as Non -Residential Property, all such Assessor’s Parcels shall be assigned the number of Acres as shown on the Final Map as determined by the CFD Administrator. Once the CFD Administrator determines the actual number of Acres for an Assessor’s Parcel, the Special Tax C (Contingent) levied against an Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Acres by the Maximum Special Tax C (Contingent) per Acre.
1. Developed Property
a. Maximum Special Tax C (Contingent)
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Taxable Property fo r Fiscal Year 2023-2024 is identified in Table 7 below for all Zones:
TABLE 7
MAXIMUM SPECIAL TAX C (CONTINGENT) FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit
Maximum Special Tax C (Contingent)
Per Taxable Unit
1. Residential Property DU $249
2. Non-Residential Property Acre $1,487
On each July 1, commencing July 1, 2024, the Maximum Special Tax C (Contingent) for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) two percent (2%).
b. Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax C (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax C (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by
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reference to the site plan approved for such Assessor's Parcel. The CFD Administrator 's allocation to each type of property shall be final.
2. Final Map Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Final Map Property for Fiscal Year 2023-2024 is identified in Table 8 below:
TABLE 8
MAXIMUM SPECIAL TAX C (CONTINGENT) FOR
FINAL MAP PROPERTY
Maximum Special Tax C
(Contingent)
Per Assessor’s Parcel
$249
On each July 1, commencing July 1, 2024, the Maximum Special Tax C (Contingent) for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) two percent (2%).
T. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX C (CONTINGENT) Commencing with the first Fiscal Year in which Special Tax C (Contingent) is authorized to be levied and for each following Fiscal Year, the Council shall determine the Special Tax C (Contingent) Requirement and shall levy the Special Tax C (Contingent) on all Asse ssor’s Parcels of Taxable Property until the aggregate amount of Special Tax C (Contingent) equals the Special Tax C (Contingent) Requirement. The Special Tax C (Contingent) shall be levied for each Fiscal Year as follows:
Step One: The Special Tax C (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property at up to 100% of the applicable Maximum Special Tax C (Contingent) to satisfy the Special Tax C (Contingent) Requirement;
Step Two: If additional moneys are needed to satisfy the Special Tax C (Contingent) Requirement after the first step has been completed, the Special Tax C (Contingent) shall be levied Proportionately on each Assessor’s Parcel of Final Map Property at up to 100% of the Maximum Special Tax C (Contingent) for Final Map Property.
U. DURATION OF SPECIAL TAX C (CONTINGENT)
The Special Tax C (Contingent) shall be levied in perpetuity to fund the Special Tax C (Contingent) Requirement, unless no longer required as determined at the sole discretion of the C ity Council.
V. MANNER OF COLLECTION OF SPECIAL TAX C (CONTINGENT)
The Special Tax C (Contingent) shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that IA No. 2 may collect the Special Ta x C
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(Contingent) at a different time or in a different manner if necessary to meet its funding requirements.
W. SPECIAL TAX D
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax D on all Taxable Property, up to the applicable Maximum Special Tax D to fund the Special Tax D Requirement.
X. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within IA No. 2 classified as Residential Property shall be subject to the levy of Special Tax D as determined pursuant to Sections Y and Z below for all Zones. For Residential Property with attached Dwelling Units, the number of Dwelling Units shall be determined by the CFD Administrator.
Final Map Property, Non-Residential Property, and Undeveloped Property shall not be subject to Maximum Special Tax D.
Y. MAXIMUM SPECIAL TAX D
1. Developed Property
a. Maximum Special Tax D
The Maximum Special Tax D for each Assessor’s Parcel of Residential Property for Fiscal Year 2023-2024 is identified in Table 9 below:
TABLE 9
MAXIMUM SPECIAL TAX D FOR RESIDENTIAL PROPERTY
Land Use Category
Taxable
Unit
Maximum Special Tax B
Per Taxable Unit
1. Residential Property DU $509
On each July 1, commencing July 1, 2023, the Maximum Special Tax D for the prior Fiscal Year shall be adjusted by the greater of (i) an amount equal to the percentage change in the Consumer Price Index for the twelve-month period ending in January of the prior Fiscal Year or (ii) five percent (5%).
Z. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX D
Commencing with Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City Council shall levy Special Tax D until the amount of Special Tax D equals the Special Tax D Requirement in accordance with the following steps:
Step One: The Special Tax D shall be levied Proportionately on each Assessor’s Parcel of Residential Property at up to 100% of the applicable Maximum Special Tax D as needed to satisfy the Special Tax D Requirement.
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AA. DURATION OF SPECIAL TAX D
The Special Tax D shall be levied in perpetuity to fund the Special Tax D Requirement, unless no longer required as determined at the sole discretion of the City Council.
BB. MANNER OF COLLECTION
The Special Tax D shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that IA No. 2 may collect the Special Tax D at a different time or in a different manner if necessary to meet its funding requirements.
CC. APPEALS
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reaso ns why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with th e appellant, the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error:
(i) amend the Special Tax levy for the current Fiscal Year prior to the payment date;
(ii) require the CFD to reimburse the taxpayer the amount of the overpayment to the extent of available funds of IA No. 2 of CFD No. 2023-1; or (iii) grant a credit against, eliminate or reduce the future Special Taxes levied on the taxpayer’s property within IA No. 2 of CFD No. 2023-1 in the amount of the overpayment.
DD. INTERPRETATIONS
The City Council may interpret this Rate and Method of Apportionment of Special Tax by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.
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RESOLUTION NO. __
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF
BEAUMONT, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS WITHIN EACH OF PROPOSED IMPROVEMENT AREA NOS. 1 AND 2 OF PROPOSED CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON)
WHEREAS, the City Council of the City of Beaumont (the “City Council”) upon receipt of petitions from Meritage Homes of California, Inc., a California corporation, as provided in Sections 53318 and 53319 of the Government Code of the State of California instituted proceedings to form City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) (the “Community Facilities District”) and two improvement areas therein to be designated as “City of Beaumont Improvement Area No. 1 of Community Facilities District No. 2023-1 (Fairway Canyon)” (“Improvement Area No. 1”) and “Improvement Area No. 2 of City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon)” (“Improvement Area No. 2” and together with Improvement Area No. 1, the “Improvement Areas” and each an “Improvement Area”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. ___ adopted by the City Council on April 4, 2023; and
WHEREAS, the purpose of the proposed Community Facilities District is to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Exhibit “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and
WHEREAS, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $14,500,000; and,
WHEREAS, in order to finance the Facilities and Incidental Expenses, the City Council intends to (i) authorize the issuance of bonds in the maximum aggregate principal amount of $3,500,000, for Improvement Area No. 1, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Improvement Area No. 1, other than those properties exempted from taxation in the rate and method of apportionment set forth in Exhibit “C” to Resolution No. ____; and (ii) authorize the issuance of bonds in the maximum aggregate principal amount of $11,000,000, for Improvement Area No. 2, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Improvement Area No. 2, other than those properties exempted from taxation in the rate and method of apportionment set forth in Exhibit “D” to Resolution No. ____.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY, DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. It is necessary to incur bonded indebtedness within the boundaries of proposed Improvement Area No. 1 in an amount not to exceed $3,500,000 and within the boundaries of proposed Improvement Area No. 2 in an amount not to exceed $11,000,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.
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SECTION 3. The indebtedness of each proposed Improvement Area will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act.
SECTION 4. It is the intent of the City Council to authorize the sale of bonds within each proposed Improvement Area in one or more series, in the maximum aggregate principal amount of $3,500,000 for proposed Improvement Area No. 1 and $11,000,000 for proposed Improvement Area No. 2 and at a maximum interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council acting in its capacity as the legislative body of the District authorizing the issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.
SECTION 5. A public hearing (the “Hearing”) on the proposed issuance of bonded indebtedness shall be held at 6:00 p.m. or as soon thereafter as practicable, on May 16, 202 3, at the City Council Chambers, 550 E. 6th Street, Beaumont, California.
SECTION 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within the proposed Community Facilities District, may appear and be heard.
SECTION 7. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2023-1. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2023-1 at least 15 days prior to the Hearing.
SECTION 8. This Resolution shall be effective upon its adoption.
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ADOPTED, SIGNED AND APPROVED this 4th day of April, 2023.
Julio Martinez III, Mayor of the City of Beaumont
(SEAL)
ATTEST:
Elaine Morgan, City Clerk
of the City of Beaumont
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STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE )
I, Elaine Morgan, City Clerk of the City of Beaumont, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, at a regular meeting of said Board held on the 4 th day of April, 2023, and that it was so adopted by the following vote:
AYES:
NOES:
ABSENT:
Elaine Morgan, City Clerk
City of Beaumont
A-1
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EXHIBIT A
DESCRIPTION OF THE FACILITIES AND INCIDENTAL EXPENSES
TYPES OF FACILITIES
The proposed types of public facilities and expenses to be financed by the Community Facilities District include:
The construction, purchase, modification, rehabilitation, expansion and/or improvement of roadway, bridge, sewer, domestic and reclaimed water, dry utilities, storm drain, curb and gutter, medians, traffic signals and any other facilities permitted pursuant t o the Act, parks, trails, police facilities, fire facilities, library facilities, public community facilities, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure including design, engineering and planning costs associated therewith. The Facilities include, but are not limited to:
PA 21B Park Improvements
Sorenstam Road Improvement
Water Facilities of Beaumont Cherry Valley Water District
TYPES OF INCIDENTAL EXPENSES
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the Community Facilities District, associated with the creation of the Community Facilities District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District; and c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
4895-7275-3214v4/022599-0032
REIMBURSEMENT AGREEMENT
FOR CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON)
THIS REIMBURSEMENT AGREEMENT FOR CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) (the “Agreement”) dated as of April 1, 2023 is entered into by and between the City of Beaumont, a general law city duly organized and validly existing under the laws of the State of California (the “City”), and Meritage Homes o f California, Inc., a California corporation (the “Owner”).
RECITALS
A. The Owner desires to form the City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) (the “District”) for the purpose of financing various facilities and services required as a condition of developing a residential community consisting of single -family residential dwelling units and other uses (the “Development”). The authorized list of facilities (the “Facilities”) and services (the “Services”) that may be financed by the District is described in Exhibit B to Resolution No. ________ (the “Resolution of Intention”) adopted on April 4, 2023.
B. Pursuant to Government Code Section 53314.9, the City Council is authorized to accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, and may provide, by resolution, for the use of those funds or that work -in- kind for any authorized purpose, including, but not limited to, paying any costs incurred by the loca l agency and creating a district. The legislative body may also enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced or to reimburse the person or entity for the cost or value of the work-in-kind, provided that certain conditions are met. The conditions to be satisfied require that (1) the proposal to repay the funds or the value or cost of the work-in-kind must be included in the resolution of intention for the proposed district and in the resolution of formation for the proposed district, (2) that any proposed special tax is approved by the qualified electors of the district pursuant to the Mello Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”) and that, if not approved, any funds which have not been committed for any authorized purpose by the time of the election must be returned to the person or entity advancing funds, and (3) any work-in-kind accepted shall have been performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority, of the local agency. The conditions set for th in (1) and (2) above have been satisfied with the formation of the District.
C. The City and the Owner desire to enter into this Agreement in accordance with Government Code Section 53314.9 in order to provide a mechanism by which the Owner may advance certain costs related to the Facilities and Services to be financed by the District and to provide that the District, when and if bonds are issued and/or special tax revenues are available, will reimburse the Owner for the amounts advanced.
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AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows:
1. Recitals. Each of the above recitals is incorporated herein and is true and correct.
2. Deposit and Use of Funds.
(a) The City has received a petition from the owner of at least 10% of the territory within the District requesting to establish the District. In accordance therewith, the City has adopted the Resolution of Intention for the purpose of initiating the process of forming the Distric t pursuant to the Act.
(b) In order to assist the City in establishing the District, the Owner has advanced $50,000 to the City for the purpose of covering expenses relating thereto. In addition to costs incurred by the City (including City staff time) in r esolving issues relating to the formation of the District, this Agreement shall cover the costs of retaining the necessary consultants to assist in the formation of the District, including an engineer, special tax consultant, financial advisor, special counsel and other consultants deemed necessary by the City. (c) In addition to the initial advance of $50,000, from time to time, the Owner shall make additional advances to the City within 15 days following receipt from the City of a written request for an additional advance to cover such costs. In the event the Owner does not deliver the requested amount to the City within such 15-day period, the City will have no obligation to proceed with the issuance of bonds unless and until such additional advance is recei ved. The Owner shall have the right to notify the City at any time, in writing, of its desire to have the City abandon the proceedings for the formation of the District. Upon receipt of such notice, the City shall instruct its consultants to cease work as soon as practicable. The Owner shall be responsible to pay all costs and expenses incurred by the City or any City consultant or advisor relating to the formation of the District until work with respect to the bond issuance ceases following the receipt of the Owner’s notice of abandonment.
(d) The City will provide written notice to the Owner when the balance of the remaining advance is reduced to $5,000. The City will provide to the Owner on request a summary of how the advances have been spent and the unexpended balance remaining. The amounts advanced by the Owner will be reimbursable to the Owner, without interest, from the proceeds of bonds issued by the District and/or from special tax revenues collected from the District. In the event that bonds are not issued to provide a source of reimbursement to the Owner or special tax revenues are unavailable to provide a source of reimbursement to the Owner, the City shall have no liability to the Owner to reimburse it for any of amounts previously advanced by the Owner and expended by the City.
3. Reimbursement Procedure. In accordance with Government Code Section 53314.9, the Owner agrees that any work-in-kind to be performed by or on behalf of it and to be accepted by the District or the City shall be performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority, of the City. In the event such work is not so performed or constructed, the Owner shall not be entitled to reimbursement for such work. It is the intention of the parties to make any work that is undertaken or expenses that are
3 4895-7275-3214v4/022599-0032
incurred by or on behalf of the Owner with respect to the Facilities eligible for reimbursement. It is agreed that any “cost” or “incidental expense” (as those terms are defined in Government Code Section 53317) incurred with respect to any of the Facilities shall be eligible for reimbursement. Any such costs or incidental expenses will be reimbursed only if all City policies with respect to reimbursement have been satisfied as of the date that reimbursement is to be made.
4. Abandonment of Bond Issuance or Special Tax Levy. The Owner understands that the issuance of bonds as described herein is subject to sound municipal finance practices. No provision of this Agreement shall be construed as a promise, warranty or agreement by the City to issue bonds or levy special taxes within the District. This Agreement shall not create any independent obligation of the City or the District to issue bonds or to levy special taxes.
5. Indemnification and Hold Harmless. The Owner hereby assumes the defense of, and indemnifies and saves harmless, the City and each of its officers, directors, employees and agents, from and against all actions, damages, claims, losses or expen ses of every type and description to which they may be subjected or put, by reason of, or arising out of any acts or omissions taken by the Owner or any of the Owner’s officers, employees, contractors and agents with respect to the design, engineering and construction of the Facilities by Owner; provided, however, this indemnification and hold harmless shall not include any action, damages, claims, losses or expenses arising out of the sole negligence or willful misconduct of the City, its officers, directo rs, employees or agents.
6. Notices. Any notice to be provided pursuant to this Agreement shall be delivered to the following addresses:
Owner: Meritage Homes of California, Inc.
5 Peters Canyon Road, Suite 310
Irvine, CA 92606
Attention: Forward Planning Manager
City: City of Beaumont
550 East 6th Street
Beaumont, California 92223
Attention: City Manager
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
7. Assignment. The Owner may not assign its interest in this Agreement without the prior written consent of the City, which consent shall not be unreasonably withheld.
8. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent permitted by law.
9. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein.
10. Amendments. This Agreement may be amended or modified only by written instrument signed by all parties.
4 4895-7275-3214v4/022599-0032
11. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.
12. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.
13. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or impli ed) is intended to confer upon any person or entity, other than the City, the District and the Owner, any rights, remedies, obligations or liabilities under or by reason of this Agreement.
14. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.
15. Termination. The provisions of Section 2 of this Agreement shall terminate and be of no further force and effect on the earlier of (i) the date of issuance of the first series of bonds or (ii) December 31, 2028 unless expressly amended by the parties. Notwithstanding the forgoing, the Owner’s obligations under Section 5 shall survive the termination and the City’s obligation to provide reimbursement in accordance with Section 3 for expenses incurred prior to the termination date shall also survive termination.
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IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.
CITY OF BEAUMONT, CALIFORNIA
By:
City Manager
MERITAGE HOMES OF CALIFORNIA, INC.,
a California corporation
By:
Authorized Officer
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CFD NO. 2023-1(FAIRWAY CA NYON )
PROJECT MAP
^_
Staff Report
TO: City Council
FROM: Kari Mendoza, Administrative Services Director
DATE April 4, 2023
SUBJECT: Approval of Fuel Source Technology for the City of Beaumont Transit Zero-Emission Bus Rollout Plan
Description Review information for discussion and select a Fuel Source Technology to proceed with the Zero-Emission Bus Rollout and Implementation Plans.
Background and Analysis:
The California Air Resources Board (CARB) adopted the Innovative Clean Transit (ICT) regulation in December 2018. Per the regulation, small transit agencies are required to submit a board-approved Zero-Emission Bus (ZEB) Rollout Plan by July 1, 2023. In response to this mandate, City staff has participated in the development of a Zero- Emission Bus Rollout and Implementation Plan with the Riverside County Transportation Commission (RCTC) and the Center for Transportation and the Environment (CTE).
This regulation was implemented with the goal of achieving a 100% ZEB Fleet by 2040.
This goal is to be accomplished through the purchase of new buses in accordance with the purchasing mandate shown in the table below. Beginning in 2026, 25% of annual bus purchases must be zero-emission technology. Beginning in 2029, 100% of annual purchases must be zero-emission.
The completion of the ZEB rollout plans will allow CARB to assess the financial impacts of the regulation on transit agencies and plan for future funding assistance opportunities to aid all agencies to reach the goal by 2040.
The smaller transit agencies in the Riverside County area approached RCTC for assistance in the development of the ZEB Rollout Plans to meet the ICT regulation.
The smaller transit agencies include the cities of Corona, Banning, Beaumont, Riverside, and Palo Verde Valley Transit Agency (Blythe).
RCTC agreed to assist and applied for grant funding from the California Department of Transportation (Caltrans) FY 2021-2022 Sustainable Transportation Planning Grant program under the Sustainable Communities Competitive-Technical category. In June 2021 RCTC secured a Caltrans grant in the amount of $271,380 to match the $202,420 in State Transportation Improvement Program Planning, Programming, and Monitoring funds.
On April 13, 2022, RCTC awarded a contract to CTE, a 501c-3 nonprofit engineering and planning firm, to develop the ZEB Rollout Plans for the five smaller transit agencies.
In addition to each transit agency’s ZEB Plan, RCTC will also be preparing a countywide ZEB Financial Strategy to assist the transit operators with implementation.
Following the award of the contract, RCTC and CTE initiated the kickoff meeting with Beaumont on July 7, 2022, to discuss the key activities and schedule the development of the ZEB Plans.
Fiscal Impact:
The cost to prepare this staff report is estimated at $325. There is no fiscal impact on the general fund for the selection of zero-emission bus fuel technology. A funding plan for the implementation of zero-emission buses and infrastructure will be developed and included in future budgets through the annual Short Range Transit Plan.
Recommended Action:
Approve the mixed-fleet fuel source technology as the recommended technology in the development of the City of Beaumont Transit Zero-Emission Bus Rollout Plan.
Attachments:
A. Zero-Emission Transition - PowerPoint Presentation
B. Existing Conditions Report
C. Zero-Emission Transition Financial Analyses
1 Kari Mendoza
Administrative Services Director
Zero Emission
Transition
April 4, 2023 Page 422 of 706
2 Why are we here today?
In 2018 CARB adopted the Innovative Clean Transit (ICT) regulation, which set the goal to have all transit buses 100% zero emission by 2040. City staff and other small operators asked RCTC for assistance and in June 2021, RCTC secured a grant of $271,380 from Caltrans to conduct ZEB Rollout and Implementation Plans for the small bus operators.
In April 2022, RCTC awarded a contract to CTE to conduct the necessary steps to complete the required bus rollout plans.
The CARB Regulation requires small transit agencies to submit a board approved ZEB (Zero-emission Bus) Rollout Plan by July 1st, 2023.
The Ask: That City Council receives the information for the discussion and selection of a zero-emission bus fuel technology.Page 423 of 706
Riverside County ZEB Rollout & Implementation Plans Project Funded by Riverside County Transportation Commission
3 Zero-Emission Transition
Financial Analysis:
Beaumont Transit
Niki Rinaldi El-Abd, Managing Consultant
April 4, 2023
Project Overview
-Existing Conditions Report –Completed November 2022
-Financial Analysis –Completed February 2023
-Existing Conditions & Financial Analysis Review, Fuel (Today’s Discussion) -Submit ZEB Rollout Plan to CARB –Before July 1st, 2023 -Zero-Emission Implementation Plan –Targeted Completion October 2023 3/29/2023 4Page 425 of 706
CARB ICT Regulation
•Legislation adopted in 2018
•Goal: 100% ZEB Fleet by 2040
•Mandates to reach the goal:
–Small CA Transit Agencies
buses) must submit a board-
approved ZEB Rollout Plan by
July 1, 2023
–Purchasing Mandate
5 Starting
January 1
ZEB Percentage
of Total New
Bus Purchases
2026 25%
2027 25%
2028 25%
2029 100%
Purchasing Mandate:
Three Beaumont buses will be due
for replacement in 2028 (1 must be
zero-emission to comply with the
purchasing mandate)Page 426 of 706
CARB ICT Rollout Plan
Requirements
6 ZEB Rollout Plans must include:
–A goal of a complete fleet transition to zero-emission buses by 2040
–Avoiding early retirement of conventional ICE buses
–Identification of the types of zero-emission bus technologies –A purchasing schedule
–Location details for ZEB facilities and a schedule of
infrastructure operations
–A Disadvantaged Communities Service Plan
–A Training plan and schedule for ZEB operators, maintenance, and repair staff
–Identification of potential funding sourcesPage 427 of 706
Financial Analysis Overview
Financial impacts of ZEB technology transition for the City of Beaumont Transit Service include:
•Fleet Capital Cost
•Fuel Costs
•Maintenance Costs
•Preliminary Infrastructure Projects & Costs
•Total Cost of Ownership
•Benefits and Drawbacks of Each Technology
7Page 428 of 706
Comparative Fleet Capital Costs
Entire Transition Period, All Scenarios
8Page 429 of 706
Comparative Annual Fuel Costs
Estimated Fuel Costs in 2040, All Scenarios –Single Year of Operations
9Page 430 of 706
Comparative Maintenance Costs
Entire Transition Period, All Scenarios
10Page 431 of 706
Comparative Infrastructure Costs
Entire Transition Period, All Scenarios
11Page 432 of 706
Comparative Total Cost of Ownership
Entire Transition Period, All Scenarios –Cumulative Costs 12Page 433 of 706
Considerations for Selecting ZE
Propulsion Technology
13March 29, 2023
BEB Fleet
•Beaumont’s required
service energy exceeds the
the power onboard market
market available vehicles of
vehicles of the same type as
type as Beaumont's existing
existing fleet and do not
not allow for on-route
charging. Thus, this
technology is not sufficient
sufficient to perform
Beaumont’s service and was
was not considered a
feasible option.
FCEB Fleet
Pros
•Operationally similar to
current fleet. No service or
schedule changes are
required due to the
technology
•Anticipated fuel price
reduction due to regional
renewable H2 supply
developments
Cons
•Delivery of hydrogen
occurs through diesel
trucking in cost analysis
Mixed Fleet
Pros
•Multiple technologies
provide greater redundancy
and resilience benefits; less
reliant on the grid or fuel
supply
Cons
•Three to four different
fueling infrastructures will
be required at depot for
three to four propulsion
technologies (CNG, gas,
hydrogen, electric)