DOC #2024-0053573 Page 22 of 29
Attachments: Exhibit A Legal description of Property
Exhibit B Cost estimate(s)
(Proper Notarization of Subdivider's Signature is required and shall be attached)
DOC #2024-0053573 Page 23 of 29
PRELIMINARY REPORT
Chicago Title Company
YOUR REFERENCE: Fairway Canyon-PA22D ORDER NO.: 00157764-996-SD1-RT4 EXHIBIT "A"
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
T CT NO. 31462-25, BEING A SUBDIVISION OF PARCEL 6 AND A PORTION OF LOT "B" OF PARCEL MAP NO. 38090, IN THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, RECORDED IN BOOK 254, PAGES 97 THROUGH 103, INCLUSIVE, OF PARCEL MAPS, RECORDS OF SAID COUNTY.
EXCEPT THEREFROM THE FOLLOWING AS RESERVED IN THE DEED FROM OAK VALLEY PARTNERS, L.P., RECORDED OCTOBER 19, 2005, AS INSTRUMENT NO. 2005-0862966, OF OFFICIAL RECORDS, TO WIT:
A. ANY AND ALL NATURAL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS, NATURAL
GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN AND ALL RIGHTS
THEREIN, GEOTHERMAL STEAM, AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT
MAY BE WITHIN OR UNDER THE LAND, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING,
EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM THE
LAND OR ANY OTHER PROPERTY, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL
AND MINE FROM PROPERTY OTHER THAN THE LAND, OIL OR GAS WELLS, TUNNELS AND SHAFTS
INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED
OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE
EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND
OPERATE ANY SUCH WELLS, TUNNELS OR SHAFTS, WITHOUT THE RIGHT TO DRILL, MINE, STORE OR EXCAVATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND.
B. ANY AND ALL WATER, WATER RIGHTS OR INTEREST THEREIN APPURTENANT OR RELATING TO THE
LAND OR OWNED OR USED BY GRANTOR IN CONNECTION WITH OR WITH RESPECT TO THE LAND (NO
MATTER HOW ACQUIRED BY GRANTOR), WHETHER SUCH WATER RIGHTS SHALL BE RIPARIAN,
OVERLYING, APPROPRIATIVE, LITTORAL, PERCOLATING, PRESCRIPTIVE, ADJUDICATED, STATUTORY
OR CONTRACTUAL, TOGETHER WITH THE RIGHT AND POWER TO EXPLORE, DRILL, REMOVE AND
STORE THE SAME FROM OR IN THE LAND OR TO DIVERT OR OTHERWISE UTILIZE SUCH WATER,
RIGHTS OR INTERESTS ON ANOTHER PROPERTY OWNED OR LEASED BY GRANTOR, WITHOUT THE RIGHT TO ENTER UPON THE SURFACE OF THE LAND IN THE EXERCISE OF SUCH RIGHTS; PROVIDED,
HOWEVER, ONLY IF AND TO THE EXTENT THAT SUCH RIGHTS ARE NOT USED BY GRANTEE IN ITS USE AND ENJOYMENT OF THE LAND.
PORTION OF APN: 413-790-042
CLTA Preliminary Report Form — Modified (11/17/06) Page 3
DOC #2024-0053573 Page 24 of 29
August 8, 2022
City of Beaumont
Public Works
550 E 6th Street
Beaumont, Ca 92223
RE: Final Monumentation-Tract Map No. 31462-25
Dear Sir or Madam:
In accordance with Section 66496 of the subdivision Map Act of the State of California I hereby request that the placement of the interior monumentation for Tract Map No. 31462-25 be deferred for one year. The cost for setting all interior monuments and providing centerline ties will be $8,000.00.
This amount should be placed on deposit/bond by the developer to guarantee payment for final monumentation and centerline ties.
I understand that in accordance with the Subdivision Map Act. Should I be unable to collect payment for setting the final monumentation, I can make demand on the deposit in this amount and acknowledge that it is my obligation to set all monuments and submit required centerline ties.
Sincerely,
Miguel A. Villasenor Date: 8/8/2022
PLS 8509, Expires 12/31/22
DOC #2024-0053573 Page 25 of 29
November 16, 2022
Tract Map 31462-25 — Meritage Homes of California, Inc.
Monumentation - Cash Surety Deposit
The City of Beaumont received a Cash Surety for the above Tract Map Monumentation. The payment was made on the 30th of September by authority of Nick Harris, Forward Planning Analyst for Meritage Homes. Payment was collected on behalf of the City of Beaumont by Francisca Ochoa, Customer Service Coordinator. Cash Surety receipt confirmation number is R01270139. The Cash Surety amount is as follows:
Submittal Name
Amount
TR 31462-25 — Cash Surety
$8,000.00
Please let me know if you have any questions.
Thank you,
Richard Godsey
Public Works
Meritage Homes of California, Inc Vendor 114196
City of Beaumont
FORM R550457B_V10 09/21
Check No. 25823166 Date 09/28/22 Amount $8,000.00
Invoice
Address
SEE ATTACHMENTS
Purchase PO Date AccounVJob BU/CostCode Gross Adjusts Net Order Suffix Description/Remark Amount Amount
Please Detach Before Presenting for Payment
@550 E 6TH ST
BEAUMONT, CA 92223
(951) 769-8520
DATE : 9/30/2022 12:43 PM
OPER : FO
TKBY : FO
TERM : 21
REC# : R01270139
131.0000 CUSTOMER
DEPOSITS - PUBLIC WORKS
PW2022-0724 8000.00
Paid By:PW2O22-0724
2 -Check 8000.00 REF:25823166
8000.00
APPLIED 8000.00
TENDERED 8000.00
CHANGE 0.00
Or
abaa- os 13}}S0
NUMBER OF LOTS: 54
NUMBER OF LETTERED LOTS: 4
ACREAGE OF LOTS: 8.58
ACREAGE OF LEIILRED LOTS: 2.41
TOTAL ACREAGE: 10.99 GROSS ACRES
OWNER'S STA TEMEN T
WE HEREBY STATE THAT WE ARE THE OWNERS OF THE LAND INCLUDED WITHIN THE SUBDIVISION SHOWN HEREON; THAT WE ARE THE ONLY
PERSONS WHOSE CONSENT IS NECESSARY TO PASS A CLEAR TITLE TO SAID LAND; 7 -IA T WE CONSENT TO THE MAKING AND RECORDING OF THIS SUBDIVISION MAP AS SHOWN WITHIN THE DISTINCTIVE BORDER LINE.
THE REAL PROPERTY DESCRIBED BELOW IS DEDICATED IN FEE FOR PUBLIC PURPOSES: LOT "A" (SORENSTAM DRIVE), LOT "B" (SORENSTAM DRIVE), LOT "C" (WEISKOPF WAY), AND LOT "D" (LOPEZ LANE), FOR STREET AND PUBLIC UTILITY PURPOSES;
THE REAL PROPERTY DESCRIBED BELOW IS DEDICATED AS AN EASEMENT FOR PUBLIC PURPOSES: TO THE CITY OF BEAUMONT, A 5' WIDE PUBLIC
UTILITIES EASEMENT AS SHOWN HEREON FOR CONSTRUCTION AND MAINTENANCE OF PUBLIC FACILITIES;
THE REAL PROPERTY DESCRIBED BELOW IS DEDICATED AS AN EASEMENT FOR PUBLIC PURPOSES: TO BEAUMONT CHERRY VALLEY WATER DISTRICT, A 5' WIDE WATER FACILITIES EASEMENT AS SHOWN HEREON FOR CONSTRUCTION AND MAINTENANCE OF WATER FACILITIES.
MERI TAGE HOMES OF CALIFORNIA, A CALIFORNIA CORPORA770N. iol)-m(za-
AARON TALARICO DATE:
DIRECTOR OF FORWARD PLANNING
NOTARY ACKNOWLEDGEMENT
A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES
ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO
WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS,
ACCURACY, OR VALIDITY OF THAT DOCUMENT
STATE OFCafi-or 0, )
COUNTY OF Of -441e )
ON 6k4ober zy, 2,02-2- BEFORE ME,Anr+r"• Solace* r .044 /vkl c PERSONALLY APPEARED 4�,m rota ricO , WHO PROVED
TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S)
WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND
ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN
HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIR
SIGNA TURE(S) ON THE INSTRUMENT THE PERSON(S), OR THE ENTITY UPON
BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT 1 CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE
STATE OF CALIFORNIA THAT THE FORGOING PARAGRAPH IS IS TRUE AND
CORRECT
WITNESS MY HAND
SIGNATURE
PRINT NAME A ndireil,2 Sol Ica, 'r
MY COMMISSION NUMBER 2-3.42 SO3M
MY COMMISSION EXPIRES fO !. t k' 224226.
MY PRINCIPAL PLACE OF BUSINESS IS _C .�___ COUNTY.
IN THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA TRACT MAP NO. 31462-
5 BEING A DIVISION OF PARCEL 6 AND A PORTION OF LOT "B" OF PARCEL MAP NO. 38090, RECORDED IN BOOK 254 OF PARCEL MAPS, PAGES 97 THROUGH 103, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, STATE OF CALIFORNIA, WITHIN SECTION 36, TOWNSHIP 2 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN
PROACTIVE ENGINEERING CONSULTANTS
X BOND CER TIFICA TE
1 HER CERTIFY THAT A BOND IN THE SUM OF $
HAS BEE ECU TED AND FILED WITH THE BOARD OF SUPERVISORS r ` THE
COUNTY OF RSIDE CALIFORNIA, CONDITIONED UPON THE PA NT OF
ALL TAXES, STA COUNTY, MUNICIPAL, OR LOCAL, AND A PECIAL ASSESSMENTS COLL + D AS TAXES, WHICH AT THE 77 OF FILING OF THIS MAP WITH THE COUNTY " ORDER ARE A LIEN AG. ' T SAID PROPERTY
BUT NOT YET PAYABLE AND ID BOND HAS N DULY APPROVED BY SAID BOARD OF SUPERVISORS.
CASH OR SURETY BOND
MATTHEW JENNINGS
COUNTY TAX COLLEC
BY: DEPUTY
D ' ' 0: ------------- , 2022.
TAX COLLECTOR'S CER TIFI CA TE
I HEREBY CERTIFY THAT ACCORDING TO THE RECORDS OF THIS OFFICE, AS
OF THIS DATE, THERE ARE NO LIENS AGAINST THE PROPERTY SHOWN ON
THE WITHIN MAP FOR UNPAID STATE, COUNTY, MUNICIPAL, OR LOCAL TAXES, OR SPECIAL ASSESSMENTS COLLECTED AS TAXES, -EXCEPT= T*XE-S-OR-
PAYABLE, WHICH ARE ESTIMAT
'THIS CERTIFICATION EXCUJDES ANY
SUPPLEMENTAL TAX ASSESSMENTS NOT'
MATTHEW JENNINGS, COUNTY TAX COLLECTOR YET EXTENDED
DATED: ___SivI WY '�, 2022.
BY: TiAta64,--%44-te"--1
NOTARY ACKNOWLEDGEMENT
DEPUTY
A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES
ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO
WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS,
ACCURACY, OR VALIDITY OF THAT DOCUMENT
STATE OF )
COUNTY OF )
ON BEFORE ME,
PERSONALLY APPEARED , WHO PROVED
TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S)
WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND
ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN
HIS/HER/THEIR AUTHORIZED CAPACITY(IES), Y(IES), AND MAT BY HIS/HER/THEIR
SIGNATURE(S) ON THE INSTRUMENT THE PERSON(S), OR THE ENTITY UPON
BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT
I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE
STATE OF CALIFORNIA THAT THE FORGOING PARAGRAPH IS IS TRUE AND
CORRECT
WITNESS MY HAND
SIGNA TURE
PRINT NAME
MY COMMISSION NUMBER
MY COMMISSION EXPIRES
MY PRINCIPAL PLACE OF BUSINESS IS _ __ COUNTY.
SIGNATURE OMISSIONS
APRIL, 2022
PURSUANT TO THE PROVISIONS OF SECTION 66436 OF THE SUBDIVISION MAP ACT THE FOLLOWING SIGNATURES HAVE BEEN OMITTED:
1. MINERAL RIGHTS AND WATER RIGHTS DESCRIBED IN GRANT DEED RECORDED OCTOBER 19, 2005, AS INSTRUMENT No.
2005-0862966, OF OFFICIAL RECORDS OF RIVERSIDE COUNTY.
2. REDLANDS AND YUCAIPA WATER COMPANY, HOLDER OF
EASEMENTS FOR WATER RIGHTS, AS DISCLOSED BY DOCUMENT
RECORDED MARCH 12, 1913, IN BOOK 373, PAGE 56, OF DEEDS, RECORDS OF RIVERSIDE COUNTY.
3. SOUTHERN CALIFORNIA SECTION OF THE PROFESSIONAL GOLFER'S
ASSOCIATION, A CALIFORNIA NON-PROFIT MUTUAL BENEFIT
CORPORATION -OWNERS OF AN EASEMENT FOR ACCESS
PURPOSES, AS RECORDED DECEMBER 28, 2000, AS INSTRUMENT
NO. 2000-516795, OF OFFICIAL RECORDS OF RIVERSIDE COUNTY
THE EXACT LOCATION AND EXTENT OF SAID EASEMENT IS NOT
DISCLOSED OF RECORD.
4. SOUTHERN CALIFORNIA SECTION OF THE PROFESSIONAL GOLFER'S
ASSOCIATION, A CALIFORNIA NON-PROFIT MUTUAL BENEFIT
CORPORATION -OWNERS OF AN EASEMENT FOR THE FLIGHT AND
IMPACT OF ERRANT GOLF BALLS, AS RECORDED DECEMBER 28,
2000, AS INSTRUMENT NO. 2000-516796, OF OFFICIAL RECORDS OF RIVERSIDE COUNTY. THE EXACT LOCATION AND EXTENT OF
SAID EASEMENT IS NOT DISCLOSED OF RECORD.
5. 6.
SDC FAIRWAY CANYON, LLC, A DELAWARE LIMITED LIABILITY
COMPANY AND FAIRWAY CANYON COMMUNITY ASSOCIATION
OWNERS OF AN EASEMENT FOR DRAINAGE IMPROVEMENT AND
DOWN SLOPES, AS RECORDED SEPTEMBER 23, 2014, AS DOC#
2014-0360298, O.R.
SOUTHERN CALIFORNIA EDISON COMPANY -OWNER OF AN
EASEMENT FOR UNDERGROUND ELECTRICAL SUPPLY S YS TEE MS
AND COMMUNICA7TON SYSTEMS, DISCLOSED BY DOCUMENT
RECORDED FEBRUARY 10, 2021, AS INSTRUMENT No.
2021-0089645 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY.
7. SOUTHERN CALIFORNIA GAS COMPANY -OWNER OF AN
EASEMENT FOR INGRESS AND EGRESS AND CONSTRUCTION AND
MAINTENANCE OF PIPELINES AND CONDUITS FOR THE
TRANSPORTATION AND DISTRIBUTION OF NATURAL GAS AND
COMMUNICATIONS, DISCLOSED BY DOCUMENT RECORDED
SEPTEMBER 21, 2022, AS INSTRUMENT NO. 2022-0401200 OF
OFFICIAL RECORDS OF RIVERSIDE COUNTY
SEA UMON T CHERR Y VALLEY WA TER DISTRICT
ACCEPTANCE STATEMENT
THIS IS TO CERTIFY THAT THE INTEREST IN THE WATER FACILITIES EASEMENT
CONVEYED WITH THE OWNERS STATEMENT HEREON, FROM MERITAGE HOMES OF
CALIFORNIA, A CALIFORNIA CORPORATION, TO BEAUMONT CHERRY VALLEY WATER
DISTRICT, A POLITICAL CORPORATION OR GOVERNMENTAL AGENCY, IS HEREBY ACCEPTED AND CONSENTS TO ITS RECORDATION.
DATED: DJ. 2022 BY.
BEA MONT CHER"i9 VALLEY WATER DIST.
ITS: GLCAArsok. AllooimiCr
SHEET I OF 4 SHEETS
RECORDER'S STATEMENT
FILED THIS al DAY OF �CSVA ,
2022 A T 11'.1 At 5 M, IN BOOK ? OF MAPS,
AT PAGESS"© -S3 , AT THE REQUEST OF THE CITY
CLERK OF THE CITY OF BEAUMONT.
NO. ao za- rsoacco
FEE 1S
PETER ALDANA, ASSESSOR -COUNTY CLERK -RECORDER
BY: tetk,,, J010 6
SUBDIVISION GUARANTEE : CHICAGO TITLE COMPANY
SURVEYOR'S S TA TEMEN T
, DEPUTY
THIS MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND IS BASED UPON A FIELD
SURVEY IN CONFORMANCE IMTH THE REQUIREMENTS OF THE SUBDIVISION MAP ACT AND LOCAL ORDINANCE AT THE REQUEST OF SDC FAIRWAY CANYON, LLC ON JULY, 2021. I HEREBY STATE
THAT ALL MONUMENTS ARE OF THE CHARACTER AND OCCUPY THE POSITIONS INDICATED OR
THAT THEY WILL BE SET IN ACCORDANCE WITH THE TERMS OF THE MONUMENT AGREEMENT
FOR THE MAP AND THAT THE MONUMENTS ARE, OR WILL BE SUFFICIENT TO ENABLE THE
SURVEY TO BE RETRACED, AND THAT THIS FINAL MAP SUBSTANTIALLY CONFORMS TO THE CONDITIONALLY APPROVED TENTATIVE MAP. THIS SURVEY IS TRUE AND COMPLETE AS SHOWN.
DATED: 1 _ , 2 2.
F
MIGUEL A. VILLASEN R, PROFESSIONAL LAND SURVEYOR
P.L.S. 8509
CITY ENGINEER'S STA TEMEN T
I, JEFF HART, HEREBY STATE THAT I HAVE EXAMINED TRACT MAP 31462-25,
THAT THE SUBDIVISION AS SHOWN IS SUBSTANTIALLY THE SAME AS IT APPEARED
ON THE TENTATIVE MAP AND ANY APPROVED ALTERATIONS THEREOF, ALL APPLICABLE PROVISIONS OF THE SUBDIVISION MAP ACT AND OF TITLE 61 OF THE
CITY OF BEAUMONT MUNICIPAL CODE APPLICABLE AT THE TIME OF APPROVAL OF THE TENTATIVE MAP HAVE BEEN COMPLIED WITH.
DATED: Dtc L C \ , 2022.
JEFF TY ENGINEER ef T
R.C.E. 091 ?aql
I HEREBY STATE THAT I HAVE EXAMINED THE MAP, AND I AM
SATISFIED THAT THE MAP IS TECHNICALLY CORRECT
DATED: /O4) , 2022.
) 4"v) "'" .
jF4-,
JA Y S. FAHRION, PROFESSIONAL LAND SURVEYOR
P.L.S. 8207
BEAMONT CITY COUNCIL CERTIFICATE
THE CITY OF BEAUMONT, STATE OF CALIFORNIA, BY ITS CITY COUNCIL, HEREBY APPROVES THE TRACT MAP 31462-25 AND ACCEPTS THE OFFERS OF DEDICATION MADE HEREON FOR PUBLIC ROAD AND PUBLIC UTILITY PURPOSES. THE CITY COUNCIL
DECLARES THAT THE ACCEPTANCE OF THE OFFERS IS TO VEST TITLE IN THE CITY ON BEHALF OF 7NE PUBLIC FOR SAID PURPOSES, BUT THAT SAID ROADS SUBJECT TO
IMPROVEMENTS SHALL NOT BECOME PART OF THE CITY MAINTAINED SYSTEM UNTIL ACCEPTED BY THE CITY PURSUANT TO SECTION 941 OF THE STREETS AND HIGHWAYS CODE, AS FOLLOWS:
LOT "A" (SORENSTAM DRIVE), LOT "B" (SORENSTAM DRIVE), LOT "C" (WEISKOPF WAY), AND LOT "0" (LOPEZ LANE), FOR STREET AND PUBLIC UTILITY PURPOSES IN FEE.
THE 5' WIDE PUBLIC UTILITIES EASEMENT AS SHOWN HEREON FOR CONSTRUCTION AND MAINTENANCE OF PUBLIC FACILITIES;
DATED'
Nu) 2022
CITY CLERK, CITY OF AUMONT BEA.%)MoNT
RIVERSIDE COUNTY, CA IFORNIA
bfisAiakai,
ana-- 051345t
1. BASIS OF BEARINGS
THE BASIS OF COORDINATES FOR THE MAP IS THE CALIFORNIA
STATE PLANE COORDINATE SYSTEM, 1983, ZONE 6, BASED LOCALLY ON CONTROL STATIONS "RABBIT" AND "REST-, AS SHOWN HEREON.
ALL DISTANCES SHOWN ON THIS MAP ARE GROUND DISTANCES
UNLESS SPECIFIED OTHERWISE GRID DISTANCES MAY BE OBTAINED BY MUL T1PL YING THE GROUND DISTANCE BY A COMBINATION FACTOR OF 0.999904925. THE GEOGRAPHIC COORDINATES SHOWN HEREON ARE ESTABLISHED BY USING G.P.S. IN A S TA T1C MODE FOR
RELATIVE POSITIONING.
1) CONTROL STATION "RABBIT
NATIONAL GEODETIC SURVEY, CALIFORNIA DIVISION OF HIGHWAYS DISK SET IN TOP OF CONCRETE STAMPED "RABBIT", HORIZONTAL ORDER = SECOND, HORIZONTAL DATUM IS NAD 83, LATITUDE 33'56'02.27171"N (GRID 2284367.502. GROUND 2284584.7073) AND LONGITUDE
117'02'03.12956"W (GRID 6323791.935, GROUND 6324393.2146) 2) CONTROL STA 7TON "REST
NATIONAL GEODETIC SURVEY, CALIFORNIA DIVISION OF HIGHWAYS DISK SET IN TOP OF CONCRETE MONUMENT STAMPED "REST 1972"
HORIZONTAL ORDER = SECOND, VERTICAL ORDER = FIRST, CLASS 11 HORIZONTAL DATUM IS NAD 83, LA T7 TUDE 33'57'26.63058"N (GRID 2292862.267, GROUND 2293080.2815) AND LONGITUDE
117'01'11.02542"W (GRID 6328245.054, GROUND 6328846.7656). 3) MAP BASE DATUM
A) MEAN SCALE FACTOR IS 1.00001314
B) MEAN ELEVATION IS 2366.920 FEET. NAVD 88
C) MEAN SEAL LEVEL REDUCTION FACTOR 0.999891.788
D) EPOCH 1991.35
E) MAP COMBINATION FACTOR IS: 0.999904925.
F) MAPPING ANGLE AT STATION "REST" IS: -©025'22.73"
SURVEYOR'S NOTES
INDICATES RECORD AND MEASURED DATA PER PARCEL
MAP 38090, P.M.B. 254/97-1O3.
INDICATES RECORD AND MEASURED DATA PER TRACT
MAP 31462-20, M.B. NISI/ (00-.1O4
✓ INDICATES FOUND 1" I.P. W/TAG "LS. 8509", FLUSH, PER PARCEL MAP NO. 38090, P.M.B. 254/97-103. UNLESS OTHERWISE NOTED. ■ INDICATES FOUND 1" I.D. X 18" 1.P. AND TAG "LS 8509", PER TRACT 31462-20, M.B. . / 1 .P jJNLESS OTHERWISE NOTED.
Q INDICATES SET 1" I.D. X 18" I.P. AND TAG "LS 8509" FLUSH. (RI V. CO. STD. A MON.)
INDICATES TRACT MAP SHEET NUMBER.
SET 1" I.P. AND TAG, "LS 8509" FLUSH, AT ALL REAR LOT
CORNERS, AND AT ALL ANGLE POINTS IN SIDE OR REAR LOT LINES, AND IN LIEU OF FRONT CORNERS, SET NAIL AND TAG MARKED "LS 8509" IN TOP OF CURB AT THE PROLONGATION OF SIDE LOT
LINES, AND AT ALL B.C. 's, E C. 's, P.R.C. s, AND P.C.C. s, AND
CORNER CUTBACKS PROJECTED PERPENDICULAR OR RADIAL TO
LETTERED LOT CENTERLINES.
2. ALL MONUMENTS ARE SET AND TAGGED PER
Ply. CO, ORDINANCE NO 461.
3. ALL MONUMENTS SHOWN "SET" ARE IN ACCORDANCE
M TH THE MONUMENT AGREEMENT FOR THE MAP.
4. TRACT NO. 31462-25 CONTAINS 10.99 ACRES
100 50
0 100
200
SCALE: 1"=100'
IN THE CITY OF BEAUMONT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA TRACT MAP NO. 31462-25
0 0
La
BEING A DIVISION OF PARCEL 6 AND A PORTION OF LOT "B" OF PARCEL MAP NO. 38090, RECORDED IN BOOK 254 OF PARCEL MAPS, PAGES 97 THROUGH 103, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, STATE OF CALIFORNIA, WITHIN SECTION 36, TOWNSHIP 2 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN
PROACTIVE ENGINEERING CONSULTANTS APRIL, 2022
RIGHT OF WAY PER OFFER OF DEDICATION
NO. 22-0-004, REC'D 06/20/22, AS
INST NO. 2022-0277094.
LOT "B"
PARCEL MAP 38090
P.M.B. 254/97-103
INDICATES FOUND 1" I.D. X 18" 1.P.
AND TAG "LS 8509", P R TRACT
31462-23, M.S. 4.1*/- I .-JC
6 N2 15;W
29.04'
JJ>NN
/'N2934 38"wV
(68.17)
(N395757"W)
/ (43.74)
65 N26'35'O519
(55.32)
(N30 4139"w)
(42.54)
(N4124'22"W)
(34.74)
(N511651 "w)
(44.76)
(N465936"w
/ (55.23)
(w5271'16"W)
/ (55.00)
(N5476'13"w)/
/ (55.04)
N> .N.,„ -..,„ / (55.53)
/N5342'18`WY
/ ' (58.44)
//'\
/ (N49 {sz o
TRACT 31462-2`4 M.B.Iftt / N4SY?057"W)/
k.�- `�' / /
(62.(74)
//(N4370'00"W
(62.05)
NN/
\�G (N39'4 62.04')9'0719
�' \ f /".e ,\ (N3656 09"w)
(63.49)
/\
V
V
ti
V
113
BOUNDARY AND SHEET INDEX MAP
PARK SITE
PARCEL 7
PARCEL MAP 38090
P.M.B. 254/97-103
INDICATES FOUND 1" I.D. X 18" I.P. AND TAG "LS 8509",
PER TRACT 31462-24, M.B.`.# /111" "q
b
It
929
(N3528'38"w)
(13.19) TRAC 314 ' 24
M.B. /620
,00
N457OWE
33.00'
(N4712'50 E)
(70.69)
(N4773'07"E)
(54.53)
k
a�\
(N2533'45"w)
(27.19')
SHEET 2 OF 4 SHEETS
CAUMESA
RIGHT OF WAY PER OFFER OF DEDICATION
NO. 22-0-004, REC'D 06/20/22, AS
INST. NO. 2022-0277094.
LOT "B"
PARCEL MAP 38090
P.M.F. 254/97-103
sr
Tcp
N4570'08 E �'c�\
33.00'
0) :.)
p-vN
"REST"
f 1
/ 1
f
ff �1
/
/ co
f�L c,.;))/
f ct)/
f 1
ff 1
f 1
1 I
/
TRACT 51462-20
M.B. 4$? / 100- rod "RABBIT"
(N44'31'27"E) /
(63.20')'
(N46 38'06"E)
(28.81)E) (N46 38'(76 "
(38.47) r
i
Dl
k
b1Cski1)
EASEMENT DEDICATION NOTES
A 5' WIDE EASEMENT IN FAVOR OF THE CITY OF
BEAUMONT FOR PUBLIC UTILITY PURPOSES OFFERED
FOR DEDICATION HEREON.
A 5' WIDE EASEMENT IN FAVOR OF BEAUMONT CHERRY
VALLEY WATER DISTRICT FOR WATER FACILITY
PURPOSES OFFERED FOR DEDICATION HEREON,
EASEMENT NOTES
l' AN EASEMENT FOR FLIGHT AND IMPACT OF ERRANT GOLF BALLS RECORDED 12/28/2000, AS DOC# 2000-516796, O.R. EXACT
LOCAHON CANNOT BE DETERMINED FROM THE RECORD.
2. AN EASEMENT IN FAVOR OF SOUTHERN CALIFORNIA GAS COMPANY
FOR INGRESS AND EGRESS AND CONSTRUCTION AND MAINTENANCE
OF PIPELINES AND CONDUITS FOR THE TRANSPORTATION AND
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BASIS OF BEARINGS
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SEE SHEET 2
EASEMENT DEDICATION NOTES
A 5' WIDE EASEMENT IN FAVOR OF THE CITY OF
BEAUMONT FOR PUBLIC UTILITY PURPOSES OFFERED
FOR DEDICA 770N HEREON.
❑ A 5' WIDE EASEMENT IN FAVOR OF BEA UMON T CHERRY
VALLEY WATER DISTRICT FOR WATER FACILITY
PURPOSES OFFERED FOR DEDICATION HEREON.
EASEMENT NOTES
AN EASEMENT FOR FLIGHT AND IMPACT OF ERRANT GOLF BALLS
RECORDED 12/28/2000, AS DOC# 2000-516796, O.R. EXACT
LOCA 170N CANNOT BE DETERMINED FROM THE RECORD.
AN EASEMENT IN FAVOR OF SOUTHERN CALIFORNIA GAS COMPANY
FOR INGRESS AND EGRESS AND CONSTRUCTION AND MAINTENANCE
OF PIPELINES AND CONDUITS FOR THE TRANSPOR TA TION AND
DISTRIBUTION OF NATURAL GAS AND COMMUNICATIONS, RECORDED 09/21/22, AS DOC# 2022-0407200 O.R. " EASEMENT IS BLANKET IN NATURE AND CANNOT BE PLOTTED"
SEE SHEET 2
O INDICATES SET 1" IP W/TAG STAMPED L.S. 8509
A INDICATES SET LEAD & TAG STAMPED L.S. 8509
TRACT MAP No. 31462-25
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O INDICATES SET 1" IP W/TAG STAMPED L.S. 8509
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PROACTIVE ENGINEERING CONSULTANTS WEST, INC.
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DRAWN BY DATE
n___ An
MONUMENT 11ES - TRACT MAP No. 31462-25
'1 .r A A rr
II
INLAND VALLEY SURVEYING, INC.
CONSTRUCTION STAKING ■ BOUNDARY SURVEYS ■ TOPOGRAPHIC SURVEYS January 20, 2026
City of Beaumont
Public Works
550 E 6th Street
Beaumont, Ca 92223
RE: Final Monumentation-Tract Map No. 31462-25
Dear Sir or Madam:
As of January 20, 2026, all monuments for the referenced map have been set, are flagged up and awaiting inspection. Inland Valley Surveying, Inc. has been paid in full for their services in this matter.
If you have any questions or need additional information, please do not hesitate to call Miguel A. Villasenor at 951-657-1200.
Respectfully submitted,
Miguel A. Villasenor Date 01/20/26
PLS 8509, Expires 12/31/26
130 West Walnut Avenue Suite A-5, Perris CA. 92571
951-657-1200 office 951-956-8736 cell
BEAUMONTA O R N -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Gustavo J. Romo, Interim City Manager
BY: Brittany Navas, Grants Analyst
DATE: April 7, 2026
SUBJECT: Boys and Girls Club CDBG Subrecipient Agreement Description: Consideration of approval of a Subrecipient Agreement between the City of Beaumont and the Boys & Girls Clubs of the San Gorgonio Pass for the administration of Community Development Block Grant (CDBG) funds to support the Camp Kids program serving low- and moderate -income youth in the Beaumont community.
Background and Analysis:
The CDBG program is funded by the U.S. Department of Housing and Urban Development (HUD) and administered locally through the County of Riverside Urban County Program. CDBG funds support projects and programs that benefit low- and moderate -income residents, prevent or eliminate slum and blight, or address urgent community development needs.
On December 2, 2025, the City Council held a public hearing and approved the allocation of the City of Beaumont's Fiscal Year 2026-2027 CDBG funds, including funding for nonprofit public service programs. As part of that action, the City Council approved funding for the Boys & Girls Clubs of the San Gorgonio Pass to support its Camp Kids program, which provides youth programming during summer and school break periods for Beaumont youth from low- and moderate -income households.
Historically, nonprofit public service activities funded through the City's CDBG allocation have been administered by the County of Riverside. For the current program year, the Boys & Girls Clubs of the San Gorgonio Pass will instead work directly with the City of Beaumont as a CDBG subrecipient.
Because the City will be administering this public service activity directly, federal CDBG regulations require the City to enter into a Subrecipient Agreement with the organization. The agreement establishes the program scope, reporting requirements, reimbursement procedures, and other compliance provisions necessary to administer CDBG funds.
Fiscal Impact:
The City will allocate $12,650 in CDBG public service funds to the Boys & Girls Clubs of the San Gorgonio Pass for the Camp Kids program.
There is no impact to the City's General Fund. The City will pay eligible program costs on a reimbursable basis, and the County of Riverside will reimburse the City from the City's CDBG allocation.
Recommended Action:
Approve and authorize the City Manager, or designee, to enter into a Subrecipient Agreement with the Boys & Girls Clubs of the San Gorgonio Pass for the administration of CDBG public service funds, and authorize the City Manager, or designee, to execute any amendments, reimbursement requests, and other related documents necessary to implement the agreement.
Attachments:
A. Subrecipient Agreement
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CDBG Subrecipient Agreement template Instructions
Below is a sample CDBG Subrecipient Agreement template that can be used by our Cooperating Cities that will be directly administering their own public service activities through a non-profit or other non -City "subrecipient." t a minimum, the subrecipient agreement must contain the following:
Purpose of Agreement
Contact Information
Project Description/Scope of Work
Performance Measures/Outcomes
Project Budget
Reporting Requirements
Conflict of Interest
Termination
II subrecipient agreements must reference and incorporate the specific Supplemental greement between the County and the City for that program year.
Note to Program Managers:
Program Managers must review these subrecipient agreements (if applicable) during on -site monitoring visits, and a copy should be kept in our corresponding project file with the City.
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File No.:
SUB -RECIPIENT AGREEMENT FOR THE USE OF
2025-2026 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
This Agreement is made and entered into this 3rd day of March, 2026, by and between the City of Beaumont , a municipal corporation, hereinafter referred to as "CITY", and Boys & Girls Clubs of the San Gorgonio Pass, a California non-profit Corporation, hereinafter referred to as "SUB -RECIPIENT". CITY and SUB -RECIPIENT are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties." WITNESSETH:
WHEREAS, the Housing and Community Development Act of 1974, Title 1, as amended (the "ACT"), provides that certain grant funds may be used for certain discretionary projects which primarily benefit low and moderate income persons, persons with disabilities, remove slums or blight, or which meet urgent community development needs; and WHEREAS, CITY has received Community Development Block Grant ("CDBG") funding for the 2025-2026 program year through the County of Riverside's Urban County CDBG program; and
WHEREAS, the CDBG-assisted activities described herein comply with one of the national objectives as required under 24 CFR §570.200(a)(2).
NOW, THEREFORE, the CITY and SUB -RECIPIENT mutually agree as follows:
1. PURPOSE. SUB -RECIPIENT promises and agrees to undertake and assist with the County of Riverside's ("COUNTY"), a political subdivision of the State of California, community development activities by utilizing the sum of $12,650.00, CDBG Entitlement Funds, as specifically identified in Exhibit "A," which is attached hereto and by this reference is incorporated herein, for the following project: CAMP KIDS .
2. TERM OF AGREEMENT. This Agreement shall become effective upon the Effective Date, as defined herein, and shall continue in full force and effect for a period of one (1) year from JULY 1, 2025 - JUNE 30, 2026. Final reimbursement submission is due to the City on or before MAY 30, 2026.
3. INCORPORATION OF SUPPLEMENTAL AGREEMENT All applicable terms and conditions of the Supplemental Agreement for the Use of 2025-2026 Community Development Block Grant Funds, between the COUNTY and the CITY, are hereby incorporated into and made part of this Agreement.
4. LETTER TO PROCEED. SUB -RECIPIENT shall not initiate nor incur expenses for the CDBG funded project/activity covered under the terms of this Agreement prior to receiving written authorization from the CITY to proceed.
5. DISTRIBUTION OF FUNDS. The CITY shall pay to the SUB -RECIPIENT the sum specified in paragraph 1 above on a reimbursable basis for all approved costs. The SUB - RECIPIENT shall submit no more often than monthly to the CDBG Administrator of COUNTY Paged 891 155
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a certified statement setting forth in detail the expenditures made for which it is asking reimbursement along with pertinent supporting documentation.
The CITY shall promptly review the monthly expenditure statement and reimburse the SUB -RECIPIENT for the approved costs in accordance with its usual accounting procedures.
The CITY may require from SUB -RECIPIENT such supporting documentation as may be necessary and appropriate for the CITY to make its determination as to allowable costs. Each disbursement of CDBG funds shall be made within thirty (30) days after SUB -RECIPIENT has submitted, to the CITY, a complete and approved statement of expenditures. In the event the United States Department of Housing and Urban Development ("HUD") shall determine the purpose or any of the expenditures above described are ineligible for funding by the CITY, the SUB -RECIPIENT shall reimburse the CITY the amount of the cost so disallowed.
6. RECORDS AND INSPECTIONS.
a. SUB -RECIPIENT shall establish and maintain financial, programmatic, statistical, and other supporting records of its operations and financial activities in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), 24 CFR Part 84 and 85, as amended, and 24 CFR Part 570.502 (a), as they relate to the acceptance and use of federal funds under this Agreement. Said records shall be retained for a period of four (4) years from the date that the activity or program funded with the CDBG Grant is closed out by the COUNTY and reported as complete in the Comprehensive Annual Performance and Evaluation Report (CAPER). Exceptions to the four (4) year retention period requirement, pursuant to 2 CFR 200.333 include the following:
i. if any litigation, claim, or audit is started prior to the expiration of the four (4) year period;
ii. when the SUB -RECIPIENT is notified in writing by the CITY, COUNTY, HUD, or other Federal agency to extend the retention period; iii. records for real property and equipment acquired with CDBG funds must be retained for four (4) years after final disposition; iv. when the records are transferred by the SUB -RECIPIENT to the CITY, COUNTY, HUD, or other Federal agency, the four (4) year period is not applicable. b. SUB -RECIPIENT shall maintain a separate account for CDBG Entitlement funds received as set forth in Exhibit "A".
c. SUB -RECIPIENT shall obtain an external audit in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Section 200.500). Audits shall usually be performed annually but not less frequently than every two years. Nonprofit institutions and government agencies that expend less than $750,000 a year in federal awards are exempt from federal audit requirements, but records must be available for review by appropriate officials of the federal grantor agency or subgranting entity. The audit report shall be submitted to the COUNTY within 180 days after the end of the COUNTY'S fiscal year.
d. SUB -RECIPIENT shall, during the normal business hours make available to CITY, COUNTY, HoUD, and any other authorized Federal official, for examination and copying all of its records and other materials with respect to matters covered by this Agreement.
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e. SUB -RECIPIENT shall submit to the CITY copies of all studies and reports prepared for this project and the CITY shall have the right to the use and benefit of all such studies and reports.
f. If this CDBG-funded activity meets a National Objective by serving limited clientele as defined in 24 CFR 570.208(a)(2)(i), the SUB -RECIPIENT shall ensure that at least fifty-one percent (51%) of the persons benefiting from the CDBG funded activities are of low and moderate -income and meet the program income guidelines attached as Exhibit IG. The SUB - RECIPIENT must provide the required direct benefit documentation.
6. COMPLIANCE WITH LAWS AND REGULATIONS.
The SUB -RECIPIENT shall comply with all applicable federal, state and local laws, regulations and ordinances. By executing this Agreement, the SUB -RECIPIENT hereby certifies that it will adhere to and comply with the Additional Federal Requirements pursuant to Section 10 of the Supplemental Agreement Between the COUNTY and the CITY for the Use of 2025- 2026 Community Development Block Grant Funds, dated NOVEMBER 5, 2025, and the following as they may be applicable to a subrecipient of funds granted pursuant to the Housing and Community Development Act of 1974, as amended:
a. The Housing and Community Development Act of 1974, as amended, and the regulations issued thereto;
b. Section 3 of the Housing and Urban Development Act of 1968, as amended; attached hereto as Exhibit "S".
c. Executive Order 11246, as amended by Executive Orders 11375 and 12086, and implementing regulations at 41 CFR Chapter 60;
d. Executive Order 11063, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107;
e. Section 504 of the Rehabilitation Act of 1973 (PL 93-112), as amended, and implementing regulations;
f. The Age Discrimination . Act of 1975 (PL 94-135), as amended, and implementing regulations;
g. The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42; h. The labor standard requirements as set forth in 24 CFR Part 570, Subpart K and HUD regulations issued to implement such requirements; i. Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11288 relating to the prevention, control and abatement of water pollution; j. The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (PL 93-234);
k. The regulations, policies, guidelines, and requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), 24 CFR Part 84 and 85, as amended, as they relate to the acceptance and use of federal funds under the federally -assigned program;
1. Title VI of the Civil Rights Act of 1964 (PL 88-352) and implementing regulations issued at 24 CFR Part 1;
m. Title VIII of the Civil Rights Act of 1968 (PL 90-284) as amended; and n. The lead -based paint requirements of 24 CFR Part 35 issued pursuant to the Lead -based Paint Poisoning Prevention Act (42 USC 4801, et seq.); o. Uniform Administration Requirements pursuant to 24 CFR 570.502.
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p. The SUB -RECIPIENT shall carry out its activity pursuant to this Agreement in compliance with all federal laws and regulations described in Subpart K of Title 24 of the Code of Federal Regulations, except that:
(1) The SUB -RECIPIENT does not assume the CITY'S environmental responsibilities described at §570.604; and
(2) The SUB -RECIPIENT does not assume the CITY'S responsibility for initiating the review process under the provisions of 24 CFR Part 52. q. All Uniform Administrative Requirements pursuant to 24 CFR 570.502.
7. HOLD HARMLESS AND INDEMNIFICATION.
(a)
SUB -RECIPIENT shall indemnify and hold harmless the CITY, its agencies, departments, officers, elected and appointed officials, employees, agents, and representatives from any and all liability whatsoever, based or asserted upon any services of SUB -RECIPIENT, its officers, employees, subcontractors, agents, or representatives arising out of or in any way relating to this Agreement, including but not limited to property damage, bodily injury, or death, or any other element of any kind or nature whatsoever arising from the performance of SUB -RECIPIENT, its officers, employees, subcontractors, agents, or representatives under this Agreement.
SUB -RECIPIENT shall defend, at its sole expense, all costs and fees including, but not limited to, attorney's fees, costs of investigation, defense, and settlements or awards, the CITY, its agencies, departments, officers, elected and appointed officials, employees, agents, and representatives in any claim or action based upon such alleged acts or omissions.
With respect to any action or claim subject to indemnification herein by SUB-REC1PIENT, SUB -RECIPIENT shall, at its sole cost, have the right to use counsel of its own choice, with the prior approval of CITY, and shall have the right to adjust, settle, or compromise any such action or claim with the prior consent of the CITY; provided, however, that any such adjustment, settlement, or compromise shall in no manner whatsoever limit or circumscribe SUB - RECIPIENT'S indemnification obligations to the CITY as set forth herein.
SUB -RECIPIENT'S obligation hereunder shall be satisfied when SUB -RECIPIENT has provided to the CITY the appropriate form of dismissal relieving the CITY from any liability for the action or claim involved. The specified insurance limits required in this Agreement shall in no way limit or circumscribe SUB -RECIPIENT'S obligations to indemnify and hold harmless the CITY herein from third -party claims.
The provisions of this Section shall survive the expiration or termination of this Agreement. (b)
SUB -RECIPIENT shall indemnify and hold harmless the County of Riverside, its Agencies, Districts, Special Districts and Depaituients, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents and representatives from any liability whatsoever, based or asserted upon any services of SUB -RECIPIENT, its officers, employees, subcontractors, agents or representatives arising out of or in any way relating to this Agreement, including but not limited to property damage, bodily injury, or death or any other element of any kind or nature whatsoever arising from the performance of SUB -RECIPIENT, PageP4g158,9155
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its officers, agents, employees, subcontractors, agents or representatives from this Agreement.
SUB -RECIPIENT shall defend, at its sole expense, all costs and fees including, but not limited, to attorney fees, cost of investigation, defense and settlements or awards, the County of Riverside, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents and representatives in any claim or action based upon such alleged acts or omissions.
With respect to any action or claim subject to indemnification herein by SUB -RECIPIENT, shall, at their sole cost, have the right to use counsel of their own choice and shall have the right to adjust, settle, or compromise any such action or claim without the prior consent of County of Riverside; provided, however, that any such adjustment, settlement or compromise in no manner whatsoever limits or circumscribes SUB -RECIPIENT'S indemnification to County of Riverside as set forth herein.
SUB -RECIPIENT'S obligation hereunder shall be satisfied when SUB -RECIPIENT has provided to County of Riverside the appropriate form of dismissal relieving County of Riverside from any liability for the action or claim involved. The specified insurance limits required in this Agreement shall in no way limit or circumscribe SUB -RECIPIENT'S obligations to indemnify and hold harmless the County of Riverside herein from third party claims.
8. INSURANCE. Without limiting or diminishing the SUB -RECIPIENT'S obligation to indemnify or hold the CITY harmless, SUB -RECIPIENT shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverage's during the term of this Agreement. SUB -RECIPIENT shall be solely responsible for the health and safety of its employees, agents, contractors, and subcontractors in the performance of the activities under this Agreement and shall comply with all applicable federal, state, and local laws, including but not limited to Cal -OSHA requirements.
8.1 Commercial General Liability. SUB -RECIPIENT shall maintain Commercial General Liability insurance written on an occurrence form with limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury, personal injury, and property damage. The policy shall name the CITY, its officers, officials, employees, agents, and volunteers as additional insureds for both ongoing and completed operations. SUB -RECIPIENT shall require all contractors and subcontractors to carry insurance with limits and additional insured coverage consistent with this subsection.
8.2 Automobile Liability. SUB -RECIPIENT shall maintain Automobile Liability insurance with a combined single limit of not less than $1,000,000 per accident covering owned, non -owned, and hired vehicles used in connection with the performance of this Agreement. If personal vehicles are used, SUB -RECIPIENT shall ensure that applicable personal automobile liability coverage is maintained.
8.3 Workers' Compensation and Employer's Liability. SUB -RECIPIENT shall maintain Workers' Compensation insurance as required by the laws of the State of California.
The provisions of any Workers' Compensation insurance will not limit the obligations of SUB - RECIPIENT under this Agreement. SUB -RECIPIENT expressly agrees not to use any statutory immunity defenses under such laws with respect to CITY, its employees, officials and agents.
Coverage shall not limit SUB -RECIPIENT'S obligations under this Agreement.
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8.4 General Insurance Provisions.
a. Waiver of Subrogation. No liability insurance coverage provided shall prohibit SUB -RECIPIENT from waiving the right of subrogation prior to a loss. SUB - RECIPIENT waives all rights of subrogation against CITY regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do the same. b. Evidence of Insurance. Prior to commencing activities under this Agreement, SUB -RECIPIENT shall furnish CITY with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements.
All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.
c. Insurer Qualifications. All required policies shall be issued by a highly rated insurer with a minimum A.M. Best rating of "A:VII." The insurer(s) shall be admitted and licensed to do business in California. The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either Party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY. d. Primary Coverage. Self-insurance does not comply with these insurance specifications. SUB -RECIPIENT acknowledges and agrees that all insurance coverage required to be provided by SUB -RECIPIENT or any subcontractor shall apply first and on a primary, non-contributing basis in relation to any other insurance, indemnity, or self-insurance available to CITY.
e. All coverage types and limits required are subject to approval, modification, and additional requirements by CITY, as the need arises. SUB -RECIPIENT shall not make any reductions in scope of coverage (e.g., elimination of contractual liability or reduction of discovery period) that may affect CITY's protection without CITY's prior written consent. f. Notice. SUB -RECIPIENT agrees to provide immediate notice to CITY of any claim or loss against SUB -RECIPIENT or arising out of the Services performed under this Agreement. CITY assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY. g. No Limitation of Indemnity. The coverage shall contain no special limitations on the scope of protection afforded to CITY, its directors, officers, employees, or authorized volunteers. If SUB -RECIPIENT maintains broader coverage and/or higher limits than the minimums shown above, CITY requires and shall be entitled to the broader coverage and/or higher limits maintained by SUB-REC1PIENT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to CITY.
9. PROGRAM INCOME. SUB -RECIPIENT, who is a subrecipient as defined in Section 570.500(c) and 570.504, shall not retain any program income as defined in Section 570.500 of Title 24 of the Federal Code of Regulations. Any and all program income shall be retained by the COUNTY
10. INDEPENDENT CONTRACTOR. SUB -RECIPIENT and its agents, servants and Pag Atil of 91155
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employees shall act at all times in an independent capacity during the term of this Agreement, and shall not act as, shall not be, nor shall they in any manner be construed to be agents, officers or employees of the CITY or the County of Riverside.
11. NONDISCRIMINATION. SUB -RECIPIENT shall abide by §570.601 and §570.912 of Title 24 of the Federal Code of Regulations, which require that no person in the United States shall on the ground of race, color, religion, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with CDBG funds.
12. RELIGIOUS ACTIVITIES and CONFLICT OF INTEREST. Under federal regulations, CDBG assistance may not be used for inherently religious activities or provided to primarily religious entities for any activities including secular activities. SUB -RECIPIENT shall adhere to the restrictions set forth in 24 CFR 570.200(j), and 570.611 and by this reference is incorporated herein.
13. TERMINATION.
a. SUB -RECIPIENT. SUB -RECIPIENT may not terminate this Agreement except upon express written consent of CITY.
b. CITY. Notwithstanding the provisions of Section 13a, CITY may suspend or terminate this Agreement upon written notice to SUB -RECIPIENT of the action being taken and the reason for such action:
(1) In the event SUB -RECIPIENT fails to perform the covenants herein contained at such times and in such manner as provided in this Agreement; or (2) In the event there is a conflict with any federal, state or local law, ordinance, regulation or rule rendering any of the provisions of this Agreement invalid or untenable; or
(3) In the event the funding from the Department of Housing and Urban Development referred to in Paragraphs 1 above is terminated or otherwise becomes unavailable. c. This Agreement may be terminated and/or funding suspended, in whole or in part, for cause in accordance with the Uniform Administrative Requirements , Cost Principles, and Audit Requirements for Federal Awards (2 CFR Section 200.339). Cause shall be based on the failure of the SUB -RECIPIENT to materially comply with either the terms or conditions of this Agreement. Upon suspension of funding, the SUB-REIPIENT agrees not to incur any costs related thereto, or connected with, any area of conflict from which the CITY Has determined that suspension of funds is necessary. SUB -RECIPIENT acknowledges that failure to comply with Federal statutes, regulations, or the terms and conditions of this Agreement may be considered by the CITY in evaluating future CDBG and non-CDBG funding applications submitted by SUB -RECIPIENT.
d. Reversion of Assets
1. Upon expiration of this Agreement, the SUB -RECIPIENT shall transfer to the CITY any CDBG funds on hand at the time of expiration of the Agreement as well as any accounts receivable held by SUB -RECIPIENT which are attributable to the use of Page'444g8 91155
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CDBG funds awarded pursuant to this Agreement.
2. Any real property under the' SUB -RECIPIENT'S control that was acquired or improved in whole or in part with CDBG funds (including CDBG funds provided to the SUB -RECIPIENT in the form of a loan) in excess of $25,000 is either:
(i) Used to meet one of the National Objectives in Sec. 570.208 until five years after expiration of this agreement, or for such longer period of time as determined to be appropriate by the CITY; or
(ii) Not used in accordance with Section (i) above, in which event the SUB -RECIPIENT shall pay to the CITY an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property.
14. PROGRAM MONITORING AND EVALUATION. SUB -RECIPIENT shall be monitored and evaluated in terms of its effectiveness and timely compliance with the provisions of this Agreement and the effective and efficient achievement of the Program Objectives.
Quarterly reports shall be due on the fifteenth (15th) day of the month immediately following the end of the quarter being reported. The quarterly written reports shall include, but shall not be limited to the following data elements:
a. Title of program, listing of components, description of activities/operations. b. The projected goals, indicated numerically, and also the goals achieved (for each report period). In addition, identify by percentage and description, the progress achieved towards meeting the specified goals; additionally, identify any problems encountered in meeting goals.
c. If CDBG funded Activity meets National Objective under 24 CFR 570.208 (a)(2)(i)(B), SUB -RECIPIENT shall report the following:
1) Total number of direct beneficiaries (clientele served) with household income:
• Above 80% MHI
• Between 50% and 80% MHI (Low -Income)
• Between 30% and 50% MHI (Very Low -Income)
• Below 30% MHI (Extremely Low -Income)
2) Total number and percentage of all clients at of below 80% MHI 3) Racial ethnicity of clientele
4) Number of Female -Headed Households
d. SUB -RECIPIENT shall report beneficiary statistics monthly, or as otherwise required, to CITY on the pre -approved Direct Benefit Form and Self -Certification Form (certifying income, family size, and racial ethnicity) as required by HUD. In the event that HUD, COUNTY, or CITY implement changes to the reporting requirements, SUB -RECIPIENT will be provided with updated forms and instructions necessary to comply with the reporting requirements of the CPD Outcome Performance Measurement System.
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e. SUB -RECIPIENT, unless otherwise notified by CITY in writing, must collect income self -certifications from every individual or family participating in CDBG- funded activities or the parent or legal guuardian of every child participating in CDBG-funded activities. This includes family income, family size, and ethnicity. Income verifications are required from at least 10% of all clientele. SUB -RECIPIENT must submit reimbursement request monthly or in accordance with the approved schedule. Final reimbursement requests must be received by CITY no later than MAY 30, 2026
15. ENTIRE AGREEMENT. It is expressly agreed that this Agreement embodies the entire agreement of the parties in relation to the subject matter hereof, and that no other agreement or understanding, verbal or otherwise, relative to this subject matter, exists between the parties at the time of execution.
16. CONFLICT OF INTEREST. SUB -RECIPIENT and its assigns, employees, agents, consultants, officers and elected and appointed officials shall become familiar with and shall comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and the CDBG regulations prohibiting conflicts of interest contained in 24 CFR 570.611.
a. The SUB -RECIPIENT shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. b. No employee, officer or agent of the SUB -RECIPIENT shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. c. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision -making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a "covered person" includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the SUB -RECIPIENT, or any designated public agency.
d. SUB -RECIPIENT understands and agrees that no waiver or exception can be granted to the prohibition against conflict of interest except upon written approval of HUD pursuant to 24 CFR 570.611(d). Any request by SUB -RECIPIENT for an exception shall first be reviewed by CITY to determine whether such request is appropriate for submission to the COUNTY and HUD. In determining whether such request is appropriate for submission to HUD, COUNTY will consider the factors listed in 24 CFR 570.611(d)(2). e. Prior to any funding under this Agreement, SUB -RECIPIENT shall provide CITY with a list of all employees, agents, consultants, officers and elected and appointed officials who are in a position to participate in a decision -making process, exercise any functions or responsibilities, or gain inside information with respect to the CDBG activities funded under this Agreement. SUB -RECIPIENT shall also promptly disclose to CITY any potential conflict, Pages 83155
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including even the appearance of conflict that may arise with respect to the CDBG activities funded under this Agreement.
f. Any violation of this section shall be deemed a material breach of this Agreement, and the Agreement shall be immediately terminated by the CITY.
17. MODIFICATION OF AGREEMENT. This agreement may be modified or Amended only by a writing signed by the duly authorized and empowered representatives of CITY and SUB -RECIPIENT, respectively.
18. INTERPRETATION AND 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. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof.
19. JURISDICTION AND VENUE. Any action at law or in equity arising under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed in the Superior Court of California, County of Riverside, State of California, and the Parties hereto waive all provision of law providing for the filing, removal or change of venue to any other court or jurisdiction.
20. AUTHORITY TO EXECUTE. The persons executing this Agreement or exhibits attached hereto on behalf of the Parties to this Agreement hereby warrant and represent that they have the authority to execute this Agreement and warrant and represent that they have the authority to bind the respective Parties to this Agreement to the performance of its obligations hereunder.
21. COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.
22. SEVERABILITY. If any portion, section, sentence, provision or paragraph of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.
SIGNATURES ON NEXT PAGE
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IN WITNESS WHEREOF, the CITY and the SUB -RECIPIENT have executed this agreement as of the date listed below.
CITY OF
By:
City Manager
Print Name
Dated:
SUBRECIPIENT:
By:
Executiv6 Director
P\ENLAV (rl ‘-
Print Ne
Dated: 3' 3 ' 2�
Pagg $ 1155
EXHIBIT A
SUB -RECIPIENT AGREEMENT
SCOPE OF WORK
(PUBLIC SERVICE)
I. GENERAL INFORMATION
SUBRECIPIENT NAME: BOYS & GIRLS CLUB
ADDRESS: 240 WEST RAMSEY STREET, BEAUMONT CA 92223
PROGRAM CONTACT: Megan Grisham, Acting CEO
PHONE: 951-922-3259 FAX :
E-MAIL: [email protected]
PROJECT NAME: Camp Kids
PROJECT LOCATION: 520 E. EIGHTH STREET BEAUMONT, 92223; AND 38755 BROOKSIDE AVE BEAUMONT CA, 92223
IL SCOPE OF SERVICE
PROJECT FUNDING AMOUNT $12,650
A. Activities
SUBRECIPIENT will be responsible for administering a 2025-2026 Community Development Block Grant, on behalf of CITY, for the CAMP KIDS in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:
Activity #1 CAMP KIDS
B. Levels of Accomplishment — Goals and Performance Measures The SUB -RECIPIENT agrees to provide the following levels of program services:
Activity #1 - BGCSGP will provide the enriching and educational Camp Kids program for 90 Beaumont youth aged 5-12 during the summer and other school breaks.
Activity #2 - BGCSGP will provide the Camp Kids program to 50 LMI youth aged 5-12 during the summer and other school breaks.
Unit of Service is defined as: Individual child served
III. PROJECT BUDGET Insert
Project Budget
Line Item
CDBG Granted
Funds
Total Non-CDBG
Funds
Total Activity/Project
Budget
Notes
S12,650
Total Direct Program
Expenses
$258,008
S270,658
Salaries
S12,650
Fringe
Office Space (Program Only)
Utilities
Communications
Reproduction/Printing
Mileage
Supplies and Materials
Equipment (Program Only)
Audit
Transportation
Total Indirect Program
Expenses
$
Indirect Costs (Specify)*
Total CDBG Budget
$12,650
$258,008
$270,658
IV. PROJECT SCHEDULE Insert Project Schedule
4/1/25:
6/30/25 to 7/30/26:
7/1/25 to 6/30/26:
7/01/25 to 6/30/26:
7/1/25 to 6/30/26:
Begin marketing and recruitment for summer camp program Recruit and enroll 90 at -risk youth to participate in the Camp Kids program Offer at -risk youth summer camp, as well as camps for Thanksgiving, winter break, Presidents' Week, and spring break camps.
Collect and track CDBG data on all new and renewing participants Implement Summer Brain Gain and Healthy Habits programming with youth participants
FY 2025 CPD Income Limits
Effective June 1, 2025
FY 2025
Income Limit
Area
Riverside
County
-o
v
co
m
01 0
o
FY 2025 Income Limit
Category
1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Pers on
Extremely Low (30 %)
$23,500
$26,850
$30,200
$33,550
$36,250
$38,950
$41,650
$44,300
Income Limits
Very Low (50% ) Income
$39,200
$44,750
$50,350
$55,950
$60,450
$64,900
$69,400
$73,850
Limits
Low (80%) Income Limits
$62,650
$71,600
$80,550
$89,500
$96,700
$103,850
$111,000
$118,150
01 01
VOTE: Riverside County is part of the Riverside -San Bernardino -Ontario, CA MS A. The Riverside -San Bernardino -Ontario, CA MSA :.ontains the following areas: Riverside County, CA; and San Bernardino County, CA .
Source: CDBG -
-TOME -
=SG -
https://www.hudexchange.info/resource/5334/cdbg-income-limits/ https://www.hudexchange.into/programs/home /home-income-limits/ https://www.hudexchanqe.info/resource /5079/esq-income-limits) Income Calculator
ittps:// www.huciexchange . info /incomecalculator/
EXHIBIT "S"
Economic Opportunities for Low- and Very Low -Income Persons
CONTRACT REQUIREMENTS
24 CFR Part 75
Article I. RIVERSIDE COUNTY
Section 75.1 Purpose
This part establishes the requirements to be followed to ensure the objectives of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3) are met. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent.
Section 75.3 Applicability
(a) General applicability. Section 3 applies to public housing financial assistance and Section 3 projects, as follows:
(1) Public housing financial assistance. Public housing financial assistance means:
(i) Development assistance provided pursuant to section 5 of the United States Housing Act of 1937 (the 1937 Act);
(ii) Operations and management assistance provided pursuant to section 9(e) of the 1937 Act; (iii) Development, modernization, and management assistance provided pursuant to section 9(d) of the 1937 Act; and
(iv) The entirety of a mixed -finance development project as described in 24 CFR 905.604, regardless of whether the project is fully or partially assisted with public housing financial assistance as defined in paragraphs (a)(1)(i) through (iii) of this section. (2) Section 3 projects. (i) Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where the assistance is from the Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1 or 1701z-2), the Lead -Based Paint Poisoning Prevention Act (42 U.S.C 4801 et seq.); and the Residential Lead -Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.). The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing.
(ii) The Secretary must update the thresholds provided in paragraph (a)(2)(i) of this section not less than once every 5 years based on a national construction cost inflation factor through Federal Register notice not subject to public comment. When the Secretary finds it is warranted to ensure compliance with Section 3, the Secretary may adjust, regardless of the national construction cost factor, such thresholds through Federal Register notice, subject to public comment. (iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development financial assistance.
(b) Contracts for materials. Section 3 requirements do not apply to material supply contracts. (c) Indian and Tribal preferences. Contracts, subcontracts, grants, or subgrants subject to Section 7(b) of the Indian Self -Determination and Education Assistance Act (25 U.S.C. 5307(b)) or subject to tribal preference requirements as authorized under 101(k) of the Native American Housing Assistance and Self -Determination Act (25 U.S.C. 4111(k)) must provide preferences in employment, training, and business opportunities to Indians and Indian organizations, and are therefore not subject to the requirements of this part. (d) Other HUD assistance and other Federal assistance. Recipients that are not subject to Section 3 are encouraged to consider ways to support the purpose of Section 3.
Section 75.5 Definitions.
The terms HUD, Public housing, and Public Housing Agency (PHA) are defined in 24 CFR part
5. The following definitions also apply to this part:
1937Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq.
Contractor means any entity entering into a contract with:
(1) A recipient to perform work in connection with the expenditure of public housing financial assistance or for work in connection with a Section 3 project; or (2) A subrecipient for work in connection with a Section 3 project.
Labor hours means the number of paid hours worked by persons on a Section 3 project or by persons employed with funds that include public housing financial assistance.
Low-income person means a person as defined in Section 3(b)(2) of the 1937 Act.
Material supply contracts means contracts for the purchase of products and materials, including, but not limited to, lumber, drywall, wiring, concrete, pipes, toilets, sinks, carpets, and office supplies.
Professional services means non -construction services that require an advanced degree or professional licensing, including, but not limited to, contracts for legal services, financial
consulting, accounting services, environmental assessment, architectural services, and civil engineering services.
Public housing financial assistance means assistance as defined in §75.3(a)(1).
Public housing project is defined in 24 CFR 905.108.
Recipient means any entity that receives directly from HUD public housing financial assistance or housing and community development assistance that funds Section 3 projects, including, but not limited to, any State, local government, instrumentality, PHA, or other public agency, public or private nonprofit organization.
Section 3 means Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u).
Section 3 business concern means:
(1) A business concern meeting at least one of the following criteria, documented within the last six-month period:
(i) It is at least 51 percent owned and controlled by low- or very low-income persons; (ii) Over 75 percent of the labor hours performed for the business over the prior three- month period are performed by Section 3 workers; or
(iii) It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8 -assisted housing. (2) The status of a Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owner(s) or employees.
(3) Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern. Section 3 business concerns are not exempt from meeting the specifications of the contract.
Section 3 project means a project defined in §75.3(a)(2).
Section 3 worker means:
(1) Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:
(i) The worker's income for the previous or annualized calendar year is below the income limit established by HUD.
(ii) The worker is employed by a Section 3 business concern. (iii) The worker is a YouthBuild participant.
(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction.
(3) Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications of the position to be filled.
Section 8 -assisted housing refers to housing receiving project -based rental assistance or tenant - based assistance under Section 8 of the 1937 Act.
Service area or the neighborhood of the project means an area within one mile of the Section 3 project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census.
Small PHA means a public housing authority that manages or operates fewer than 250 public housing units.
Subcontractor means any entity that has a contract with a contractor to undertake a portion of the contractor's obligation to perform work in connection with the expenditure of public housing financial assistance or for a Section 3 project.
Subrecipient has the meaning provided in the applicable program regulations or in 2 CFR 200.93.
Targeted Section 3 worker has the meanings provided in §§75.11, 75.21, or 75.29, and does not exclude an individual that has a prior arrest or conviction.
Very low-income person means the definition for this term set forth in section 3(b)(2) of the 1937 Act.
YouthBuild programs refers to YouthBuild programs receiving assistance under the Workforce Innovation and Opportunity Act (29 U.S.C. 3226).
Subpart C —Additional Provisions for Housing and Community Development Financial Assistance
§75.19 Requirements.
(a) Employment and training. (1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 workers within the metropolitan area (or nonmetropolitan county) in which the project is located.
(2) Where feasible, priority for opportunities and training described in paragraph (a)(1) of this section should be given to:
(i) Section 3 workers residing within the service area or the neighborhood of the project, and (ii) Participants in YouthBuild programs.
(b) Contracting. (1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure contracts for work awarded in connection with Section 3 projects are provided to business concerns that provide economic opportunities to Section 3 workers residing within the metropolitan area (or nonmetropolitan county) in which the project is located.
(2) Where feasible, priority for contracting opportunities described in paragraph (b)(1) of this section should be given to:
(i) Section 3 business concerns that provide economic opportunities to Section 3 workers residing within the service area or the neighborhood of the project, and (ii) YouthBuild programs.
§75.21 Targeted Section 3 worker for housing and community development financial assistance.
(a) Targeted Section 3 worker. A Targeted Section 3 worker for housing and community development financial assistance means a Section 3 worker who is:
(1) A worker employed by a Section 3 business concern; or (2) A worker who currently fits or when hired fit at least one of the following categories, as documented within the past five years:
(i) Living within the service area or the neighborhood of the project, as defined in §75.5; or (ii) A YouthBuild participant.
(b) [Reserved]
§75.23 Section 3 safe harbor.
(a) General. Recipients will be considered to have complied with requirements in this part, in the absence of evidence to the contrary if they:
(1) Certify that they have followed the prioritization of effort in §75.19; and (2) Meet or exceed the applicable Section 3 benchmark as described in paragraph (b) of this section.
(b) Establishing benchmarks. (1) HUD will establish Section 3 benchmarks for Section 3 workers or Targeted Section 3 workers or both through a document published in the FEDERAL REGISTER. HUD may establish a single nationwide benchmark for Section 3 workers and a single nationwide ,Page 506 of 1155
benchmark for Targeted Section 3 workers, or may establish multiple benchmarks based on geography, the nature of the Section 3 project, or other variables. HUD will update the benchmarks through a document published in the FEDERAL REGISTER, subject to public comment, not less frequently than once every 3 years. Such notice shall include aggregate data on labor hours and the proportion of recipients meeting benchmarks, as well as other metrics reported pursuant to §75.25 as deemed appropriate by HUD, for the 3 most recent reporting years. (2) In establishing the Section 3 benchmarks, HUD may consider the industry averages for labor hours worked by specific categories of workers or in different localities or regions; averages for labor hours worked by Section 3 workers and Targeted Section 3 workers as reported by recipients pursuant to this section; and any other factors HUD deems important. In establishing the Section 3 benchmarks, HUD will exclude professional services from the total number of labor hours as such hours are excluded from the total number of labor hours to be reported per §75.25(a)(4). (3) Section 3 benchmarks will consist of the following two ratios:
(i) The number of labor hours worked by Section 3 workers divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year. (ii) The number of labor hours worked by Targeted Section 3 workers as defined in §75.21(a), divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year.
§75.25 Reporting.
(a) Reporting of labor hours. (1) For Section 3 projects, recipients must report in a manner prescribed by HUD:
(i) The total number of labor hours worked;
(ii) The total number of labor hours worked by Section 3 workers; and (iii) The total number of labor hours worked by Targeted Section 3 workers. (2) Section 3 workers' and Targeted Section 3 workers' labor hours may be counted for five years from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to §75.31.
(3) The labor hours reported under paragraph (a)(1) of this section must include the total number of labor hours worked on a Section 3 project, including labor hours worked by any subrecipients, contractors and subcontractors that the recipient is required, or elects pursuant to paragraph (a)(4) of this section, to report.
(4) Recipients reporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph (a)(1)(ii) of this section, and labor hours by Targeted Section 3 workers, under paragraph (a)(1)(iii) of this section, from professional services without including labor hours from professional services in the total number of labor hours worked under paragraph (a)(1)(i) of this section. If a contract covers both
professional services and other work and the recipient or contractor or subcontractor chooses not to report labor hours from professional services, the labor hours under the contract that are not from professional services must still be reported.
(5) Recipients may report their own labor hours or that of a subrecipient, contractor, or subcontractor based on the employer's good faith assessment of the labor hours of a full-time or part- time employee informed by the employer's existing salary or time and attendance based payroll systems, unless the project or activity is otherwise subject to requirements specifying time and attendance reporting.
(b) Additional reporting if Section 3 benchmarks are not met. If the recipient's reporting under paragraph (a) of this section indicates that the recipient has not met the Section 3 benchmarks described in §75.23, the recipient must report in a form prescribed by HUD on the qualitative nature of its activities and those its contractors and subcontractors pursued. Such qualitative efforts may, for example, include but are not limited to the following:
(1) Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers. (2) Provided training or apprenticeship opportunities.
(3) Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).
(4) Provided or connected Section 3 workers with assistance in seeking employment including:
drafting resumes, preparing for interviews, and finding job opportunities connecting residents to job placement services.
(5) Held one or more job fairs.
(6) Provided or referred Section 3 workers to services supporting work readiness and retention (e.g., work readiness activities, interview clothing, test fees, transportation, child care). (7) Provided assistance to apply for/or attend community college, a four-year educational institution, or vocational/technical training.
(8) Assisted Section 3 workers to obtain financial literacy training and/or coaching. (9) Engaged in outreach efforts to identify and secure bids from Section 3 business concerns. (10) Provided technical assistance to help Section 3 business concerns understand and bid on contracts.
(11) Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns. (12) Provided bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.
(13) Promoted use of business registries designed to create opportunities for disadvantaged and small businesses.
(14) Outreach, engagement, or referrals with the state one -stop system as defined in Section 121(e)(2) of the Workforce Innovation and Opportunity Act. (c) Reporting frequency. Unless otherwise provided, recipients must report annually to HUD under paragraph (a) of this section, and, where required, under paragraph (b) of this section, on all projects completed within the reporting year in a manner consistent with reporting requirements for the applicable HUD program.
§75.27 Contract provisions.
(a) Recipients must include language applying Section 3 requirements in any subrecipient agreement or contract for a Section 3 project.
(b) Recipients of Section 3 funding must require subrecipients, contractors, and subcontractors to meet the requirements of §75.19, regardless of whether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts.
Subpart D —Provisions for Multiple Funding Sources, Recordkeeping, and Compliance
§75.29 Multiple funding sources.
(a) If a housing rehabilitation, housing construction or other public construction project is subject to Section 3 pursuant to §75.3(a)(1) and (2), the recipient must follow subpart B of this part for the public housing financial assistance and may follow either subpart B or C of this part for the housing and community development fmancial assistance. For such a project, the following applies:
(1) For housing and community development financial assistance, a Targeted Section 3 worker is any worker who meets the definition of a Targeted Section 3 worker in either subpart B or C of this part; and
(2) The recipients of both sources of funding shall report on the housing rehabilitation, housing construction, or other public construction project as a whole and shall identify the multiple associated recipients. PHAs and other recipients must report the following information:
(i) The total number of labor hours worked on the project; (ii) The total number of labor hours worked by Section 3 workers on the project; and (iii) The total number of labor hours worked by Targeted Section 3 workers on the project. (b) If a housing rehabilitation, housing construction, or other public construction project is subject to Section 3 because the project is assisted with funding from multiple sources of housing and community development assistance that exceed the thresholds in §75.3(a)(2), the recipient or
recipients must follow subpart C of this part, and must report to the applicable HUD program office, as prescribed by HUD.
§75.31 Recordkeeping.
(a) HUD shall have access to all records, reports, and other documents or items of the recipient that are maintained to demonstrate compliance with the requirements of this part, or that are maintained in accordance with the regulations governing the specific HUD program by which the Section 3 project is governed, or the public housing financial assistance is provided or otherwise made available to the recipient, subrecipient, contractor, or subcontractor. (b) Recipients must maintain documentation, or ensure that a subrecipient, contractor, or subcontractor that employs the worker maintains documentation, to ensure that workers meet the definition of a Section 3 worker or Targeted Section 3 worker, at the time of hire or the first reporting period, as follows:
(1) For a worker to qualify as a Section 3 worker, one of the following must be maintained:
(i) A worker's self -certification that their income is below the income limit from the prior calendar year;
(ii) A worker's self -certification of participation in a means -tested program such as public housing or Section 8 -assisted housing;
(iii) Certification from a PHA, or the owner or property manager of project -based Section 8 - assisted housing, or the administrator of tenant -based Section 8 -assisted housing that the worker is a participant in one of their programs;
(iv) An employer's certification that the worker's income from that employer is below the income limit when based on an employer's calculation of what the worker's wage rate would translate to if annualized on a full-time basis; or
(v) An employer's certification that the worker is employed by a Section 3 business concern. (2) For a worker to qualify as a Targeted Section 3 worker, one of the following must be maintained:
(i) For a worker to qualify as a Targeted Section 3 worker under subpart B of this part:
(A) A worker's self -certification of participation in public housing or Section 8 -assisted housing programs;
(B) Certification from a PHA, or the owner or property manager of project -based Section 8 - assisted housing, or the administrator of tenant -based Section 8 -assisted housing that the worker is a participant in one of their programs;
(C) An employer's certification that the worker is employed by a Section 3 business concern; or
(D) A worker's certification that the worker is a YouthBuild participant. (ii) For a worker to qualify as a Targeted Section 3 worker under subpart C of this part:
(A) An employer's confirmation that a worker's residence is within one mile of the work site or, if fewer than 5,000 people live within one mile of a work site, within a circle centered on the work site that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census; (B) An employer's certification that the worker is employed by a Section 3 business concern; or (C) A worker's self -certification that the worker is a YouthBuild participant. (c) The documentation described in paragraph (b) of this section must be maintained for the time period required for record retentions in accordance with applicable program regulations or, in the absence of applicable program regulations, in accordance with 2 CFR part 200. (d) A PHA or recipient may report on Section 3 workers and Targeted Section 3 workers for five years from when their certification as a Section 3 worker or Targeted Section 3 worker is established. §75.33 Compliance.
(a) Records of compliance. Each recipient shall maintain adequate records demonstrating compliance with this part, consistent with other recordkeeping requirements in 2 CFR part 200. (b) Complaints. Complaints alleging failure of compliance with this part may be reported to the HUD program office responsible for the public housing financial assistance or the Section 3 project, or to the local HUD field office.
(c) Monitoring. HUD will monitor compliance with the requirements of this part. The applicable HUD program office will determine appropriate methods by which to oversee Section 3 compliance. HUD may impose appropriate remedies and sanctions in accordance with the laws and regulations for the program under which the violation was found.
BEAUMONT
-C A L I F O R N A -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Lisa Leach, CPA, Interim Finance Director
DATE: April 7, 2026
SUBJECT: Authorization of Release of Bond Proceeds for Fairway Canyon CFD No. 2023-1
Description: Authorization of Release of Bond Proceeds — Community Facilities District No. 2023-1 (Fairway Canyon), Improvement Area No. 1 & Improvement Area No.2.
Background and Analysis:
Community Facilities District No. 2023-1 (Fairway Canyon ) was formed to finance public infrastructure through the issuance of Special Tax Bonds for Improvement Area No. 1 and Improvement Area No. 2. The City has received a formal payment request from Meritage Homes of California, Inc. for reimbursement of CFD Deposit for CFD formation costs, consistent with the executed Acquisition Agreement (Attachment B).
The request has been reviewed and approved by the Public Works Department as required by the City's approved Restated Bond Accounting Policies and Procedures.
The next step in the process is authorization to release funds through the District's Construction Fund held with the Bond Trustee. The total reimbursement request submitted by Meritage totals $50,000, consistent with the executed Payment Request documentation and cost certification.
Fiscal Impact:
There is no fiscal impact to the General Fund. All requested funds are restricted CFD proceeds for eligible public improvements.
The estimated cost to prepare this report is $375.
Recommended Action:
Authorize the Interim Finance Director to submit the Trustee Notification and Written Requisition for the disbursement of CFD No. 2023-1 Special Tax Bond proceeds in the total amount of $50,000 for reimbursement of CFD Deposit from IA -2.
Attachments:
A. Written Requisition 007 — CFD 2023-1 IA 2
B. CFD 2023-1 Acquisition Agreement
CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON) (IMPROVEMENT AREA NO. 2)
2025 SPECIAL TAX BONDS
REQUISITION FOR
DISBURSEMENT OF FACILITIES PROJECT COSTS
ACCOUNT#
Zions Bancorporation, National Association, as Trustee, is hereby requested to pay from the Project Account of the Community Facilities District No. 2023-1 Acquisition and Construction Fund, established by the Indenture between the Trustee and City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) (the "District"), dated as of December 1, 2025 (the "Indenture"), the amount specified and to the payee named below for payment of the Project Costs set forth in Attachment No. 1 hereto.
Payee: Meritage Homes Corp
Address: 18655 North Claret Drive, Suite 400, Scottsdale, AZ 85255 Purpose: CFD Deposit for Formation Costs
Amount: $50,000.00
The amount is due and payable under purchase order, contract or other authorization and has not formed the basis of any prior request for payment. The conditions for the release of this amount from the Project Account of the Community Facilities District No. 2023-1 Acquisition and Construction Fund, including those conditions in Section 3.9(b) of the Indenture have been satisfied.
There has not been filed with or served upon the District notice of any lien, right to lien or attachment upon, or stop notice or claim affecting the right to receive payment of the amount specified above which has not been released or will not be released simultaneously with the payment of such amount, other than materialmen's or mechanic's liens accruing by mere operation of law.
Dated: CITY OF BEAUMONT COMMUNITY FACILITIES
DISTRICT NO. 2023-1 (FAIRWAY CANYON)
By:
Name:
Title: Interim Finance Director of the City of
Beaumont,
acting as the legislative body of City
Beaumont Community Facilities District No.
2023-1 (Fairway Canyon)
B-1
ATTACHMENT NO. 1
[Insert Description of Project Costs.]
A-1
City of Beaumont CFD No.
2023-1IA1&2
(Fairway Canyon 4B)
CFD Reimbursement Request
CFD Deposit
Prepared on Behalf of
Meritage Homes
Prepared By:
r• ZIMMERMAN GROUP
PUBLIC FINANCE SOLUTIONS
Nommir
28202 Cabot Road, Suite 620
Laguna Niguel, CA 92677
Office 949-542-7070
Fax 949-542-7076
ZIMMERMAN GROUP
1 February 10, 2026
Jennifer Ustation
Finance Director
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
T. (951) 572-3236
E. [email protected]
RE: City of Beaumont CFD No. 2023-1 IA 1 & 2 (Fairway Canyon 4B) — CFD Deposit Advance Disbursement Request No. 1
Ms. Ustation,
On behalf of Meritage Homes ("Developer"), we are submitting the attached reimbursement request for the CFD Deposit in the amount of $50,000.00 from the Improvement Area No. 2 "Acquisition and Construct Fund" account. Included in this payment request are the following items:
1. Payment Request Form and Wire Instructions;
2. Copy of check in the amount of $50,000.00 for City of Beaumont CFD Deposit; If you have any questions or require any additional information, please feel free to contact me at (949) 542- 7071.
Sincerely,
Jim Zimmerman
28202 CABOT ROOD T5E1Zp 1q iIGUEL, CA 92677
PHONE: (949) 2-7070 I FAX: (949) 542-7076
www.7 i m m P rm a n a rn n n. rn m
ACQUISITION AGREEMENT
EXHIBIT B
FORM OF PAYMENT REQUEST (FACILITIES)
PAYMENT REQUEST NO. 1
The undersigned (the "Owner"). hereby requests payment to the Payees listed on Attachment 2 in the total amount of S50.000.0i0 for the Facilities (as defined in the Acquisition Agreement, dated as of May 1. 2023 by and among the City of Beaumont (the "City"), the City of Beaumont Community Facilities District No. 2023-I (Fairway Canyon) and the Owner). or Discrete Components thereof (as described in Exhibit A to that Acquisition Agreement), all as more fully described in Attachment I hereto. In connection with this Payment Request, the undersigned hereby represents and warrants to the City as follows:
1. He (she) is a duly authorized officer of the Owner, qualified to execute this Payment Request for payment on behalf of the Owner and is knowledgeable as to the matters set forth herein.
2. All costs of the Facilities or Discrete Components thereof for which payment is requested hereby are Actual Costs (as defined in the Acquisition Agreement referenced above) and have not been inflated or misrepresented in any respect. The amount of the payment requested has not been previously paid by the City.
3. Supporting documentation (such as third party invoices) is attached with respect to each cost for which payment is requested.
4. There has been full compliance with applicable laws relating to prevailing wages for the work to construct the Facilities or Discrete Components thereof for which payment is requested.
5. The Facilities or Discrete Components thereof for which payment is requested were constructed in accordance with all applicable City or other governmental standards. and in accordance with Plans approved by the City.
6. The Owner is in compliance with the terms and provisions of the Acquisition Agreement.
7. The Purchase Price for each Facility or Discrete Component (a detailed calculation of which is shown in Attachment 2 hereto for each such Facility or Discrete Component), has been calculated in conformance with the terms of the Acquisition Agreement.
B-1
4g92 -6939-I454\2,022599-0032
I hereby declare under penalty of perjury that the above representations and warranties are true and correct.
Dated: / f I /2 -
OWNER:
MERITAGE HOMES OF CALIFORNIA. INC.
a California coi • __
By:
Name: -1
Title: 'r 5.7. -
Dated • ._ CITY:
X892-!6939- l454v2/022599-0032
8-2
Payment Request Approved for Submission to
Finance Man
By:
03/24/2026
Director of Public 'ks
ACQUISITION AGREEMENT
ATTACHMENT 1
EXHIBITB
[List here all Facilities or Discrete Components thereafter which payment is requested, and attach support documentation.]
• CFD Deposit
B-3
embank
633 W. 5th Street
Los Angeles, CA 90071
WIRING INSTRUCTIONS
ACCT NAME: MERITAGE HOMES CORP
ABA:
ACCT NUMBER:
RE: Tract 31462-16 / Lot Nos. 1-111, Tract 31462-20 / Lot Nos. 1-67, Tract 31462-24 / Lot Nos. 1-55, and Tract 31462-25 / Lot Nos. 1-54
(Fairway Canyon 4B) - Improvement Area No. 1 & 2
Swift code: (If International) incoming wire: USBKUS44IMT
hi...1:4*44Lentagel k )111(2, -1 -
Setting the standard
COMMUNITY FACILITIES DISTRICT NO. 2023-1 IA No. 1 & 2
(Fairway Canyon 4B)
CFD Deposit
February 2, 2026
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
Attention: Jennifer Ustation
Phone: (951) 572-3236
Email: [email protected]
Re: Invoice for Developer CFD Deposit
Beaumont Unified School District CFD No. 2023-1 Improvement Area No. 1 & 2 (Fairway Canyon 4B) Series 2025B Special Tax Bonds
DEVELOPER CFD DEPOSIT REIMBURSEMENT $50,000.00
Developer Wire Instructions:
Bank Name: US Bank
ABA:
Beneficiary: Meritage Homes Corp
Account No:
Reference: Tract 31462-16, 31462-20, 31462-24, 31462-23, 31462-25 and 31462-26 CFD Deposit Contact: Efrem Joelson
ACQUISITION AGREEMENT
by and among
CITY OF BEAUMONT,
CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT
NO. 2023-1 (FAIRWAY CANYON)
and
MERITAGE HOMES OF CALIFORNIA, INC.
Dated as of May 1, 2023
4892-6939-1454v2/022599-0032
TABLE OF CONTENTS
Page
ARTICLE I
Section 1.1
ARTICLE II
Section 2.1
Section 2.2
Section 2.3
Section 2.4
Section 2.5
ARTICLE III
Section 3.1
Section 3.2
Section 3.3
Section 3.4
Section 3.5
Section 3.6
ARTICLE IV
Section 4.1
Section 4.2
Section 4.3
Section 4.4
Section 4.5
Section 4.6
Section 4.7
ARTICLE V
Section 5.]
Section 5.2
Section 5.3
ARTICLE VI
Section 6.1
Section 6.2
ARTICLE VII
Section 7.1
Section 7.2
Section 7.3
ARTICLE VIII MISCELLANEOUS
DEFINITIONS 2
Definitions 2
FUNDING 4
Issuance of Bonds 4
Special Taxes and Bonds 5
Net Proceeds 5
Funding Facilities in Other Fairway Canyon Districts 6
Disclosure of Special Tax 6
CONSTRUCTION AND ACQUISITION OF FACILITIES 6
Duty of Owner to Construct 6
Inspection 6
Agreement to Sell and Acquire Facilities 6
Payment Requests 7
Payment 8
Defective or Nonconforming Work 9
OWNERSHIP AND TRANSFER OF FACILITIES 9
Facilities to be Owned by the City; Conveyance of Land and Easements to City 9 Facilities to be Owned by the City; Title Evidence 10
Facilities Constructed on Private Lands ] 0
Facilities Constructed on City Land 10
Maintenance and Warranties 10
Allocation of Costs 11
Expectations of the Parties 11
INSURANCE 12
Insurance Requirements 12
Standards Applicable 13
Evidence of Insurance ] 3
REPRESENTATIONS, WARRANTIES AND COVENANTS 13
Representations, Covenants and Warranties of the Owner 13 Indemnification and Hold Harmless 14
TERMINATION 14
Mutual Consent 14
City Election to Terminate for Cause 15
Force Majeure 1.6
16 Section 8.1 Limited Liability of City 16
Section 8.2 Excess Costs 16
Section 8.3 Review of Records 16
4892-6939-1454v2/022599-0032
TABLE OF CONTENTS
(continued)
Page
Section 8.4 Attorney's Fees 16
Section 8.5 Notices 16
Section 8.6 Severability 17
Section 8.7 Successors and Assigns 17
Section 8.8 Other Agreements 18
Section 8.9 Waiver 18
Section 8.10 Merger 18
Section 8.11 Parties in Interest 18
Section 8.12 Amendment 18
Section 8.13 Counterparts 18
Section 8.14 Termination 18
Signatures S-1
List of Exhibits
Exhibit A:
Exhibit B:
Exhibit C:
Description of Facilities and Discrete Components Eligible for Acquisition from the Owner A- l
Form of Payment Request (Facilities) B-1
City CFD Policies C -1
4892-6939-1454v2/022599-0032
ii
THIS ACQUISITION AGREEMENT (the "Acquisition Agreement"), dated as of May 1, 2023, is by and among the CITY OF BEAUMONT, a general law city (the "City"), the CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT NO. 2023-1 (FAIRWAY CANYON), a community facilities district created pursuant to the Act (defined herein) (the "District"), and MERITAGE HOMES OF CALIFORNIA, INC., a California corporation (the "Owner").
RECITALS
A. The District. The City Council of the City has established the District under the Act for the financing of, among other things, the acquisition, construction and installation of public facilities identified in the proceedings to form the District therein, which include the facilities listed in Exhibit A hereto (the "Facilities").
B. The Development. The land within the District is currently expected to be developed with 419 dwelling units as part of a master -planned community commonly known as "Fairway Canyon," which is described as County of Riverside Assessor Parcel Nos. 413-790-067 through 413-790-073, inclusive.
C. The Facilities. As part of the District formation proceedings, the Facilities were authorized to be acquired by the District, and the District proceedings contemplated that acquisition agreements would be entered into from time to time to describe the terms of such acquisition. The Facilities are within or serve the City and the City and the Owner will benefit from a coordinated plan of design, engineering and construction of the Facilities and the development of the land within the District. The facilities that are eligible for acquisition by the City from the Owner under this Acquisition Agreement are only the Facilities listed in Exhibit A hereto, as such Exhibit may be amended and/or supplemented by any Supplement approved by the City and Owner.
D. The Financing. In order to, among other things, implement provisions of the Development Agreement, as defined below, the Owner, the District and the City wish to enter into this Acquisition Agreement to finance the acquisition of the Facilities, as defined below, and provide for the payment of the Facilities and Discrete Components thereof as shown in Exhibit A hereto (as it may be amended and supplemented by any Supplement).
E. The Bonds. The District may proceed with the authorization and issuance of the Bonds in one or more series under the Act and the Indenture, the proceeds of which Bonds shall be used, in part, to finance the Facilities.
F. No Advantage to City Construction. The City, by its approval of this Acquisition Agreement, has determined that it will obtain no advantage from undertaking the construction by the City directly of the Facilities and that the provisions of this Acquisition Agreement require that the Facilities constructed by the Owner and acquired with the funds in the Improvement Fund, as defined below, be constructed as if they had been constructed under the direction and supervision of the City.
The Owner hereby represents that it has experience in the supervision of the construction of improvements of the character of the Facilities.
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City, the District and the Owner agree that the foregoing recitals, as applicable to each, are true and correct and further make the agreements set forth herein. 4892-6939-1454v2/022599-0032
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. The following terms shall have the meanings ascribed to them in this Section 1.1 for purposes of this Acquisition Agreement. Unless otherwise indicated, any other terms, capitalized or not, when used herein shall have the meanings ascribed to them in the Indenture (as hereinafter defined).
"Acceptable Title" means title to land or interest therein, in form acceptable to the Director, free and clear of all liens, taxes, assessments, leases, easements and encumbrances, whether or not recorded, but subject to any exceptions determined by the Director as not interfering with the actual or intended use of the land or interest therein. Notwithstanding the foregoing, an irrevocable offer of dedication may constitute land with an "Acceptable Title" if: (i) such offer is necessary to satisfy a condition to a tentative or final parcel map, (ii) such offer is in a form acceptable to the Director, (iii) the Director has no reason to believe that such offer of dedication will not be accepted by the applicable public agency, and (iv) the Owner commits in writing not to allow any liens to be imposed on such property prior to its acceptance.
"Acceptance Date" means the date the City Council (or other public entity which is to own a Facility) takes final action to accept dedication of or transfer of title to a Facility. "Acquisition Agreement" means this Acquisition Agreement, together with any Supplement hereto.
"Act" means the Mello -Roos Community Facilities Act of 1982, Section 53311 et seq. of the California Government Code, as amended.
"Actual Cost" means the substantiated cost of a Facility or a Discrete Component, which costs may include: (i) the costs incurred for the construction of such Facility or Discrete Component, (ii) the costs incurred in preparing the Plans for such Facility or Discrete Component and the related costs of environmental evaluations of the Facility or Discrete Component, (iii) the fees paid to governmental agencies or utilities for obtaining permits, licenses or other governmental approvals for such Facility or Discrete Component, (iv) professional costs incurred that are associated with such Facility or Discrete Component, such as construction management and supervision (not to exceed 15% of the costs in (i) above), engineering, legal, accounting, inspection, construction staking, materials testing and similar professional services; and (v) the costs directly related to the construction and/or acquisition of a Facility or Discrete Component, such as costs of payment, performance and/or maintenance bonds, and insurance costs (including costs of any title insurance required hereunder) (but excluding the cost of real property unless paid to unrelated third parties). "Affiliate" means any entity with respect to which fifty percent (50%) or more of the ownership or voting power is held individually or collectively by any of the Owner and any other entity owned, controlled or under common ownership or control by or with, as applicable, the Owner, and includes all general partners of any entity which is a partnership. Control shall mean ownership of fifty percent (50%) or more of the voting power of or ownership interest in the respective entity. "Bonds" means the bonds to be issued by the District for an Improvement Area pursuant to the Act in one or more series.
2 4892-6939-1454v2/022599-0032
"City" means the City of Beaumont, a general law city.
"Conditions of Approval" means, with respect to any portion of the property within the District, the conditions of approval of all land use entitlements approved by the City and the conditions of any Development Agreement, subdivision improvement agreement or other agreement between the Owner and the City relating to such property which conditions must be satisfied in order to develop such property.
"County" means the County of Riverside, California.
"Development Agreement" means the Development Agreement between the City of Beaumont and LB/L-SunCal Oak Valley LLC, recorded as Instrument No. 2003-977700 in the Riverside County Recorder's Office on December 5, 2003, as partially assigned to and assumed by the Owner, as evidenced by Document No 2021-0396265 recorded on June 30, 2021, and by Document No 2022-0201712 recorded on April 29, 2022 in the Official Records of the County. "Director" means the Director of Public Works of the City, or his or her written designee acting as such under this Acquisition Agreement.
"Discrete Component" means a component of a Facility that the Director has agreed can be separately identified, inspected and completed, and be the subject of a Payment Request hereunder.
The Discrete Components are described in Exhibit A hereto. "District" means the City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon), created by the City under the Act.
"Facilities" means the facilities described in Exhibit A hereto which are to be acquired with the proceeds of the Special Taxes and Bonds.
"Financing Policies" means the City of Beaumont's Goals and Policies for Community Facilities Districts, as adopted May 8, 1995 by Resolution No. 1995-23, attached hereto as Exhibit C. "Improvement Area" means either of Improvement Area No. l or Improvement Area No. 2 of the District.
"Improvement Fund" means, (a) prior to the initial issuance of Bonds of an Improvement Area, the fund or account established by the City for such Improvement Area, howsoever denominated, into which Net Proceeds of the Special Taxes of such Improvement Area are to be deposited, and (b) from and after the initial issuance of Bonds for such Improvement Area, the fund or account established under the Indenture for such Bonds, howsoever denominated, into which Net Proceeds of Bonds and Special Taxes of such Improvement Area are to be deposited. "indenture" means the bond indenture or similar document between the City and the Trustee for the District, providing for, among other matters, the issuance of the Bonds and the establishment of the Improvement Fund, as it may be amended from time to time. "Net Proceeds" means (a) with respect to Special Taxes, the proceeds of such Special Taxes received prior to the initial issuance of Bonds and remaining after the payment or setting aside of, or provision for, administrative expenses of the District, and (b) with respect to Bonds, the proceeds of such Bonds remaining after the payment or setting aside of, or provisions for (i) the underwriter's 3 4892-6939-1454v2/022599-0032
discount for such Bonds, (ii) the costs of issuance of such Bonds, including the costs of authorizing the Special Taxes and Bonds of the District incurred by the City and Owner, (iii) any required reserve fund deposit for such Bonds, (iv) capitalized interest on such Bonds, and (v) pre funded administrative expenses of the District.
"Owner" means Meritage Homes of California, Inc., a California corporation, and its successors or assigns to the extent permitted under Section 8.7 hereof. "Payment Request" means a document, substantially in the form of Exhibit B hereto, to be used by the Owner in requesting payment of a Purchase Price. "Plans" means the plans, specifications, schedules and related construction contracts for the Facilities and/or any Discrete Components thereof approved pursuant to the applicable standards of the City.
"Purchase Price" means the amount paid by the District for a Facility and/or any Discrete Components thereof determined in accordance with Article III hereof, being an amount equal to the Actual Cost of such Facility or Discrete Component, but subject to the limitations and reductions provided for in Article III.
"Rate and Method" means the rate and method of apportionment of the Special Taxes of an Improvement Area approved by the qualified electors of such Improvement Area. "Special Taxes" means the special taxes for facilities in the District levied in accordance with the Rate and Method.
"Supplement" means a written document amending, supplementing or otherwise modifying this Acquisition Agreement and any exhibit hereto, including any amendments to the list of Discrete Components in Exhibit A, and/or the addition to Exhibit A of additional Facilities (and Discrete Components) to be financed with the proceeds of the Bonds deposited in the Improvement Fund eligible to be financed by the District.
"Trustee" means a financial institution in its capacity as trustee or fiscal agent under the Indenture, or any successor thereto acting as trustee or fiscal agent under the Indenture.
ARTICLE II
FUNDING
Section 2.1 Issuance of Bonds. Upon the written request of the Owner or City, the Owner and the City staff shall meet regarding the amount, timing and other material aspects of each series of the Bonds. The legal proceedings for the issuance of the Bonds and the series, principal amounts, rates, terms, conditions and timing of the sale of the Bonds shall be in all respects be solely determined by the City Council of the City, acting as the governing body of the District, in accordance with this Acquisition Agreement; provided that, subject to satisfaction of the applicable Financing Policies, sound municipal financing practices and the requirements of this Acquisition Agreement, as soon as possible following the execution of this Acquisition Agreement the City shall use commercially reasonable efforts to cause the District to issue and sell the Bonds in an amount 4 4892-6939-I 454v2/022599-0032
sufficient to fund the Facilities. For purposes of sizing each series of Bonds, the priority annual administrative expense shall be $30,000 for the related Improvement Area.
Prior to the Bonds being issued for an Improvement Area, the Owner will be required to provide all information regarding the development of its property within the Improvement Area, including the financing plan for such development, which is necessary to ensure that the official statement for such Bonds complies with the requirements of all applicable federal and state securities laws, including without limitation Rule 15c2-12 and Rule l0(b)-5 of the Securities and Exchange Commission (the "Commission"). Moreover, each property owner which is responsible for twenty percent (20%) or more of the maximum special tax within an Improvement Area at the time each series of Bonds for such Improvement Area are issued (each a "Major Landowner") will be required to enter into a continuing disclosure agreement to provide such continuing disclosure pertaining to the development of the land owned by such Major Landowner in the District as necessary to assist the underwriter of the series of Bonds in complying with the continuing disclosure requirements of Rule 15c2-12 of the Commission and/or in marketing the Bonds. Each Major Landowner shall be required to execute a certificate in connection with each public sale of Bonds pursuant to which the Major Landowner shall indemnify and hold harmless City from claims arising from, or based upon, any untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact in the above -referenced information.
Section 2.2 Special Taxes and Bonds. Prior to the issuance of the first series of Bonds for an Improvement Area, the "Assigned Special Tax" has been and shall continue to be levied in each fiscal year on parcels classified as "Developed Property" pursuant to and as defined in the Rate and Method for such Improvement Area. The Net Proceeds of such Special Taxes have been and shall continue to be deposited in the Improvement Fund. In addition, the proceeds of each full or partial prepayment of Special Taxes attributable to eligible facilities prior to the issuance of Bonds shall be deposited in the Improvement Fund. The City, the District and the Owner are entering into this Acquisition Agreement and authorized the levy of the Special Taxes for the purpose of creating and allocating certain streams of revenues that are or will be available to pay directly or reimburse the costs of acquisition and construction of the Facilities and to pay debt service on Bonds and other indebtedness of the District. The District hereby irrevocably pledges the Net Proceeds of Special Taxes to the Owner for the reimbursement of costs of the Facilities, subordinate only to the payment of debt service on Bonds issued to fund such costs. Following the issuance of the Bonds, the District shall have no obligation to levy Special Taxes to pay directly for the costs of reimbursing or paying the Owner for the Facilities. The Owner, the City and the District hereby acknowledge and agree that any reduction or termination of the Special Taxes by exercise of the initiative power or the exercise of discretion of the City or the District would constitute a substantial impairment of revenue stream of Special Taxes that the Owner, the City and the District intend to create for the purpose of providing an assured source of funding for such costs.
Section 2.3 Net Proceeds. The proceeds of the Bonds shall be deposited, held, invested, reinvested and disbursed as provided in the Indenture. The Net Proceeds of the Bonds will be set aside under the Indenture in the Improvement Fund. Moneys in the Improvement Fund shall be withdrawn therefrom in accordance with the provisions of the Indenture and the applicable provisions hereof for payment of all or a portion of the costs of construction and/or acquisition of the Facilities (including payment of the Purchase Price of Discrete Components thereof) all as herein provided. Funds in the Improvement Fund shall be reserved and disbursed in accordance with this Acquisition Agreement.
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The Owner acknowledges that any lack of availability of amounts in the Improvement Fund to pay the Purchase Price of Facilities or any Discrete Components thereof shall in no way diminish any obligation of the Owner with respect to the construction of or contributions for public facilities and mitigation measures required by the Conditions of Approval or any subdivision, development or other agreement to which the Owner is a party, or any governmental approval to which the Owner or any land within the District are subject.
Section 2.4 Funding Facilities in Other Fairway Canyon Districts. Any Facilities that are not funded by the proceeds of Bonds and Special Taxes in the District may be funded by bonds and special taxes of another existing or to -be -formed community facilities district under the Act for the Fairway Canyon project (an "Other Fairway Canyon District"). To the extent that the Purchase Price of a Facility is not fully paid by this District, the unpaid Purchase Price of a Facility may be paid by sources available in an Other Fairway Canyon District.
Section 2.5 Disclosure of Special Tax. If requested in writing by the City, copies of the executed "Notice of Special Tax" required by California Government Code Section 53341.5 provided to the purchaser of real property within the District shall be provided to the City Director of Finance. The Director of Finance's receipt of such "Notice of Special Tax" shall not be construed as City or District approval of the form of Notice or in any way make the City or District liable for deficiencies in such "Notice of Special Tax." Owner agrees to retain copies of the Notice of Special Tax it has provided to homebuyers within the District for a period of three (3) years and to provide them to the City upon City's written request.
ARTICLE III
CONSTRUCTION AND ACQUISITION OF FACILITIES
Section 3.1 Duty of Owner to Construct. All Facilities and Discrete Components thereof to be acquired hereunder shall have been constructed at the direction of the Owner in accordance with the approved Plans following the solicitation of competitive bids. The Owner shall have employed at all times adequate staff or consultants with the requisite experience necessary to bid, administer and coordinate all work related to the design, engineering, acquisition, construction and installation of the Facilities to be acquired by the City from the Owner hereunder.
Section 3.2 Inspection. No payment hereunder shall be made by the City to the Owner for a Facility or Discrete Component thereof until the Facility or Discrete Component thereof has been inspected and found to be completed in accordance with the Plans by the City or other applicable public entity or utility. However, due to the age of some of the Facilities it is understood that normal wear and tear and aging may have occurred which shall not be a basis for denial. The City shall make or cause to be made periodic site inspections of the Facilities or Discrete Components to be acquired hereunder on a timely basis; provided that in no event shall the City incur any liability for any delay in the inspection of any Facilities or Discrete Components. For Facilities to be acquired by other public entities or utilities, the Owner shall be responsible for obtaining such inspections and providing written evidence thereof to the Director. The Owner agrees to pay all inspection, permit and other similar fees of the City applicable to construction of the Facilities.
Section 3.3 Agreement to Sell and Acquire Facilities. The Owner hereby agrees to sell the Facilities and Discrete Components listed in Exhibit A hereto to the City or an applicable utility and the City hereby agrees to use amounts in the Improvement Fund to pay the Purchase Price of 6 4892-6939-1454v2/022599-0032
each of such Facilities and Discrete Components to the Owner, subject to the terms and conditions hereof. The City shall not be obligated to acquire any Facility or Discrete Component until the Facility or Discrete Component is completed and the Acceptance Date for such Facility (or the final Discrete Component) has occurred; provided that the City has agreed hereunder to make payments to the Owner for certain Discrete Components of Facilities as shown in Exhibit A hereto prior to the Acceptance Date. The Owner acknowledges that the Discrete Components have been identified for payment purposes only, and that the City shall not accept a Facility of which a Discrete Component is a part until the entire Facility has been completed. The City acknowledges that the Discrete Components do not have to be accepted by the City as a condition precedent to the payment of the Purchase Price therefor, but any such payment shall not be made until the Discrete Component has been completed in accordance with the Plans therefor, as determined by the Director. In any event, the City shall not be obligated to pay the Purchase Price for any Facility or Discrete Component except from the moneys in the Improvement Fund (subject to Section 2.4).
Section 3.4 Payment Requests. In order to receive the Purchase Price for a completed Facility or Discrete Component, inspection thereof under Section 3.2 shall have been made and the Owner shall deliver to the Director: (i) a Payment Request in the form of Exhibit B hereto for such Facility or Discrete Component, together with all attachments and exhibits required by Exhibit B and this Section 3.4 to be included therewith (including, but not limited to Attachments 1 and 2 to Exhibit B), and (ii) if payment is requested for a completed Facility, (a) if the property on which the Facility is located is not owned by the City at the time of the request, a copy of the recorded documents conveying to the City Acceptable Title to the real property on, in or over which such Facility is located, as described in Section 4.1 hereof, (b) to the extent paid for with the proceeds of the Bonds, an assignment to the District of any reimbursements that may be payable with respect to the Facility, such as public or private utility reimbursements, and (c) an assignment of warranties and guaranties for such Facility, as described in Section 4.5 hereof, in a form acceptable to the City.
Upon receipt of a Payment Request (and all accompanying documentation), the Director shall conduct a review in order to confirm that such request is complete, that such Discrete Component or Facility identified therein was constructed in accordance with the Plans therefor, and to verify and approve the Actual Cost of such Discrete Component or Facility specified in such Payment Request.
The Director shall also conduct such review as is required in his discretion to confirm the matters certified in the Payment Request. The Owner agrees to cooperate with the Director in conducting each such review and to provide the Director with such additional information and documentation as is reasonably necessary for the Director to conclude each such review. For any Facilities to be acquired by another public entity or utility, the Owner shall provide evidence acceptable to the Director that such Facilities are acceptable to such entity or utility. Within fifteen (15) business days of receipt of any Payment Request, the Director expects to review the request for completeness and notify the Owner whether such Payment Request is complete, and, if not, what additional documentation must be provided. If such Payment Request is complete, the Director expects to provide a written approval or denial (specifying the reason for any denial) of the request within thirty (30) calendar days of its submittal. However, the Facilities documentation will be delivered by Owner to City in large quantities which may be beyond the ability of City to process, in accordance with the forgoing timeframes. At the request of City or Owner, City may engage an outside contractor to review and process the Facilities documentation on behalf of the City the cost of which shall be borne by Owner subject to a written agreement executed by City and Owner. If a Payment Request seeking reimbursement for more than one Facility or Discrete Component is denied, the Director shall state whether the Payment Request is nevertheless approved and complete for any one or more Facilities or Discrete Components and any such Facilities or Discrete Components shall be 7 4892-6939-I454v2/022599-0032
processed for payment under Section 3.5 notwithstanding such partial denial. The City's and District's Costs associated with the acquisition of Facilities and processing of Payment Requests shall be reimbursed from the Improvement Fund or from amounts advanced by the Owner to the extent insufficient funds are on deposit in the Improvement Fund, which advances may be later reimbursed to the Owner out of the Improvement Fund.
Section 3.5 Payment. Upon approval of the Payment Request by the Director, the Director shall sign the Payment Request and forward the same to the City Director of Finance. Upon receipt of the reviewed and fully signed Payment Request, the City Director of Finance shall, within the then current City financial accounting payment cycle but in any event within fifteen (15) business days of receipt of the approved Payment Request, cause the same to be paid by the Trustee under the applicable provisions of the Indenture, to the extent of funds then on deposit in the Improvement Fund. Any approved Payment Request not paid due to an insufficiency of funds in the Improvement Fund, shall be paid promptly following the deposit into the Improvement Fund of proceeds of any investment earnings or other amounts transferred to the Improvement Fund under the terms of the Indenture.
Subject to Section 2.4, the Purchase Price paid hereunder for any Facility or Discrete Component shall constitute payment in full for such Facility or Discrete Component, including, without limitation, payment for all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of such Facility or Discrete Component, as specified in the Plans.
The City shall withhold payment for any Discrete Component or Facility constructed on land not already owned by the City or other public entity, until Acceptable Title to such land is conveyed to the City or other public entity that will own the respective Facility, as described in Article IV hereof.
The City shall be entitled to withhold any payment hereunder for a Facility or Discrete Component that is the subject of a Payment Request until it is satisfied that any and all claims for labor and materials have been paid by the Owner for the Facility or Discrete Component that is the subject of a Payment Request, or conditional lien releases (and/or unconditional lien releases) have been provided by the Owner for such Facility or Discrete Component. The City, in its discretion, may waive this limitation upon the provision by the Owner of sureties, undertakings, securities and/or bonds of the Owner or appropriate contractors or subcontractors and deemed satisfactory by the Director to assure payment of such claims.
The City shall be entitled to withhold payment for any Facility (or final Discrete Component) hereunder to be owned by the City until: (i) the Director determines that the Facility is ready for its intended use, and (ii) the Acceptance Date for the Facility has occurred and the requirements of Section 4.1, if applicable to such Facility, have been satisfied. The City hereby agrees that the Owner shall have the right to post or cause the appropriate contractor or subcontractor to post a bond with the City to indemnify it for any losses sustained by the City because of any liens that may exist at the time of acceptance of such a Facility, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the Director. The City shall be entitled to withhold payment for any Facility (or the final Discrete Component of any such Facility) to be owned by other governmental entities, until the Owner provides the Director with evidence that the governmental entity has accepted dedication of and/or title to the Facility. If the Director determines that a Facility 8 4892-6939-1454x2/022599-0032
is not ready for intended use under (i) above, the Director shall so notify the Owner as soon as reasonably practicable in writing specifying the reason(s) therefor.
Nothing in this Acquisition Agreement shall be deemed to prohibit the Owner from contesting in good faith the validity or amount of any mechanics or materialman's lien nor limit the remedies available to the Owner with respect thereto so long as such delay in performance shall not subject the Facilities or any Discrete Component thereof to foreclosure, forfeiture or sale. In the event that any such lien is contested, the Owner shall only be required to post or cause the delivery of a bond in an amount equal to the amount in dispute with respect to any such contested lien sufficient to cause the release or such lien, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the Director.
Subject to the last paragraph of this Section 3.5, the City shall withhold in the Improvement Fund an amount equal to ten percent (10%) of the Purchase Price of each Discrete Component to be paid hereunder other than the final Discrete Component of any Facility. Any such retention will be released to the Owner upon final completion and acceptance of the related Facility.
Notwithstanding the foregoing, the Owner shall be entitled to payment of any such retention upon the completion and acceptance of a Discrete Component, if securities meeting the requirements of the California Public Contracts Code are deposited in lieu thereof. Payment of any retention shall also be contingent upon the availability of monies in the Improvement Fund therefore. No retention shall apply if the Owner proves to the Director's satisfaction that the Owner's contracts for the Discrete Components provide for the same retention as herein provided, so that the Purchase Price paid for the Discrete Component is at all times net of the required retention.
Section 3.6 Defective or Nonconforming Work. If any of the work done or materials furnished for a Facility or Discrete Component are found by the Director to be defective or not in accordance with the applicable Plans: (i) and such finding is made prior to payment for the Purchase Price of such Facility or Discrete Component hereunder, the City may withhold payment therefor until such defect or nonconformance is corrected to the satisfaction of the Director, or (ii) and such finding is made after payment of the Purchase Price of such Facility or Discrete Component, the City and the Owner shall act in accordance with the City's standard specification for public works construction.
ARTICLE IV
OWNERSHIP AND TRANSFER OF FACILITIES
Section 4.1 Facilities to be Owned by the City; Conveyance of Land and Easements to City. Acceptable Title to all property on, in or over which each Facility to be acquired by the City will be located, shall be deeded over to the City by way of grant deed, or dedication of such property, or easement thereon, if such conveyance of interest is approved by the City as being a sufficient interest therein to permit the City to properly own, operate and maintain such Facility located therein, thereon or thereover, and to permit the Owner to perform its obligations as set forth in this Acquisition Agreement. The Owner agrees to assist the City in obtaining such documents as are required to obtain Acceptable Title. Completion of the transfer of title to land shall be accomplished prior to the payment of the Purchase Price for a Facility (or the last Discrete Component thereof) and shall be evidenced by recordation of the acceptance thereof by the City Council or the designee thereof.
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Section 4.2 Facilities to be Owned by the City; Title Evidence. The Owner shall furnish to the City a preliminary title report for land with respect to Facilities to be acquired by the City and not previously dedicated or otherwise conveyed to the City, for review and approval at least thirty (30) business days prior to the transfer of the Acceptable Title to a Facility to the City. The City shall approve the preliminary title report unless it reveals a matter which, in the judgment of the City, could materially affect the City's use and enjoyment of any part of the property or easement covered by the preliminary title report. In the event the City does not approve the preliminary title report, the City shall not be obligated to accept title to the land with respect to such Facility or pay the Purchase Price for such Facility (or the last Discrete Component thereof) until the Owner has cured such objections to title to the reasonable satisfaction of the City and caused a standard title insurance policy to be issued to the City with respect to such land in the amount of the Purchase Price. In the event the Owner cannot cure such objections to title, City agrees to consider the use of eminent domain pursuant to Section 4.3 hereof for such purpose.
Section 4.3 Facilities Constructed on Private Lands. If any Facilities to be acquired are located on privately -owned land, the owner thereof shall retain title to the land and the completed Facilities until acquisition of the Facilities under Article III hereof. Pending the completion of such transfer, the Owner shall not be entitled to receive any payment for any such Facility or the last Discrete Component thereof. The Owner shall, however, be entitled to receive payment for Discrete Components (other than the last Discrete Component) upon making an irrevocable offer of dedication of such land in form and substance acceptable to the Director. Notwithstanding the foregoing, upon written request of the City before payment for any Discrete Component of such a Facility, the Owner shall convey or cause to be conveyed Acceptable Title thereto in the manner described in Sections 4.1 and 4.2 hereof.
It shall be the responsibility of the Owner to acquire all property rights on property which is not owned by the City or the Owner which is necessary for the construction of any of the Facilities.
In the event, despite its exercise of best efforts to do so, the Owner is unable to acquire such property rights, the City shall in good faith consider the undertaking of proceedings to acquire such property rights through its exercise of the power of eminent domain, and the costs of such proceedings and acquisition shall be the responsibility of the Owner and shall comprise part of the Purchase Price of the related Facility.
Section 4.4 Facilities Constructed on City Land. If the Facilities to be acquired are on land owned by the City, including land as to which the City has acquired sufficient property rights in the manner described in Section 4.3 or otherwise, the City hereby grants to the Owner a license to enter upon such land for purposes related to the construction (and maintenance pending acquisition) of the Facilities. The provisions for inspection and acceptance of such Facilities otherwise provided herein shall apply.
Section 4.5 Maintenance and Warranties. The Owner shall maintain or cause to be maintained each Discrete Component in good and safe condition until the Acceptance Date of the Facility of which such Discrete Component is a part. Prior to the Acceptance Date, the Owner shall be responsible for performing any required maintenance on any completed Discrete Component or Facility. On or before the Acceptance Date of the Facility, the Owner shall assign to the City all of the Owner's rights in any warranties, guarantees, maintenance obligations or other evidence of contingent obligations of third persons with respect to such Facility. For each Facility to be owned by the City, the Owner shall provide a warranty bond reasonably acceptable in form and substance to the Director to remain in effect for a period of one year from the date of acceptance of each Facility. 10 4892-6939-1454v2/022599-0032
The City shall be responsible for maintenance of each Facility from and after the Acceptance Date thereof, except that with respect to landscaping improvements, the Owner shall maintain or cause to be maintained such landscape improvements for a period of one year following the Acceptance Date thereof or shall provide a bond reasonably acceptable in form and substance to the Director for such period and for such purpose (for landscaping improvements only, and for the posting of a warranty bond to remain in effect for one year as to other Facilities), to insure that defects, which appear within said period will be repaired, replaced, or corrected by the Owner, at its own cost and expense, to the satisfaction of the Director. The Owner shall commence to repair, replace or correct any such defects within thirty (30) days after written notice thereof by the City to the Owner, and shall complete such repairs, replacement or correction as soon as practicable. Any warranties, guarantees or other evidences of contingent obligations of third persons with respect to the Facilities to be acquired by the City shall be delivered to the Director as part of the transfer of title.
Section 4.6 Allocation of Costs. If Owner incurs costs that (1) apply to more than one Facility or Discrete Component (e.g., soft costs) or (2) apply to both Facilities or Discrete Components and improvements other than the Facilities or Discrete Components (e.g., grading), Owner shall allocate, or cause the contractor to reasonably allocate, such costs between the Facilities or Discrete Components (in the case of clause (1)) or between the Facilities or Discrete Components and the improvements other than the Facilities or Discrete Components (in the case of clause (2)) (the "Owner Allocation"). The Owner Allocation shall be presumed to be reasonable and shall be accepted for all purposes of this Acquisition Agreement unless the City notifies Owner of its good - faith reasonable disapproval of the allocation as part of the City's written response to the applicable Payment Request. If the City has properly disapproved the Owner Allocation, then the City and Owner shall promptly allocate such costs, on a reasonable basis, between the Facilities or Discrete Components (in the case of clause (I)) or between the Facilities or Discrete Components and the improvements other than the Facilities or Discrete Components (in the case of clause (2)) (the "Agreed -Upon Allocation"). Based on the Owner Allocation or the Agreed -Upon Allocation, as applicable, the City shall include the costs allocated to a specific Facility or Discrete Component as part of the Actual Costs of such Facility or Discrete Component when such Facility or Discrete Component is subject to a Payment Request.
Section 4.7 Expectations of the Parties. The City understands and agrees that (i) Owner will be constructing Facilities or Discrete Components prior to the availability of sources that will be used to pay for such Facilities or Discrete Components, (ii) the City or the other public agencies that will own and operate such Facilities or Discrete Components may be inspecting such Facilities or Discrete Components and processing and completing payment requests for the payment on such Facilities or Discrete Components with knowledge that there may be insufficient sources available at such time, (iii) the Facilities or Discrete Components may be conveyed to and accepted by the City or other local agency that will own and operate such Facilities or Discrete Components when there are insufficient sources to pay the Purchase Prices of such Facilities or Discrete Components, and (iv) in any such case, the payment of any approved payment requests for the Purchase Prices of such Facilities or Discrete Components will be deferred until there are sufficient sources available to pay the Purchase Prices of such Facilities or Discrete Components, at which time the City will make such payments in accordance with this Acquisition Agreement. At all times, Owner will be constructing such Facilities or Discrete Components with the expectation that the Purchase Prices for such Facilities or Discrete Components will be paid solely from the sources. The conveyance of Facilities or Discrete Components to the City or a local agency that will own and operate such Facilities or Discrete Components prior to receipt of the Purchase Prices for such Facilities or Discrete 11 4892-6939-1454v2/022599-0032
Components shall not be construed as a dedication or gift, or a waiver of the payment of the Purchase Prices, or any part thereof, for such Facilities or Discrete Components.
ARTICLE V
INSURANCE
Section 5.1 Insurance Requirements. The Owner shall, at all times prior to the final Acceptance Date of all Facilities, maintain and deliver to the City evidence of and keep in full force and effect, not less than the following coverage and limits of insurance, which shall be maintained with insurers and under forms of policies satisfactory to the Director: (i) Workers Compensation and Employer's Liability - Workers' Compensation - coverage as required by law; Employer's Liability - Iimits of at least $1,000,000.00 per occurrence; (ii) Comprehensive General Liability - Combined Single Limit - $2,000,000.00; (iii) Automobile Liability - Combined Single Limit - $1,000,000.00; and (iv) Errors and Omissions Insurance - Combined Single Limit - $2,000,000.00.
All of the Owner's insurance policies shall contain an endorsement providing that written notice shall be given to the City at least 30 calendar days prior to termination or cancellation of coverage of the policy.
The Comprehensive General Liability and Bodily Injury and Property Damage Liability policies shall contain the following:
(a) An endorsement extending coverage to the City and its agents as an additional insured, as respects liabilities arising out of the performance of any work related to the Facilities. Which insurance shall be primary insurance as respects the interest of the City, and any other insurance maintained by the City shall be excess and not contributing insurance with the insurance required hereunder.
(b) Severability of interest clause.
(c) Provision or endorsement stating that such insurance, subject to all of its other terms and conditions, applies to contractual liability assumed by the Owner.
Promptly on execution of this Acquisition Agreement by the Owner, the Owner shall deliver to the Director copies of all required certificates of insurance and endorsements thereto on forms which are acceptable to the Director and the City Attorney.
The Owner shall require and verify similar insurance on the part of its contractors and subcontractors.
The foregoing requirements as to the types, limits and City approval of insurance coverage to be maintained by the Owner are not intended to and shall not in any manner limit or qualify the liabilities and obligations assumed by the Owner under this Acquisition Agreement.
Any policy or policies of insurance that the Owner or its contractors or subcontractors elect to carry as insurance (i) against loss or damage to their construction equipment and tools or other personal property used in fulfillment of this Acquisition Agreement or a contract related to the Facilities shall include a provision waiving the insurer's right of subrogation against the City, and (ii) in fulfillment of this Acquisition Agreement involving a dual obligee bond may contain a clause 12 4892-6939- 454v2/022599-0032
to the effect that: "provided that Principal and Surety shall not be liable to the Obligees or any of them unless the Obligees or any of them have performed the obligations to the Principal in accordance with the terms of said contract; and provided, further, that Principal and Surety shall not be liable to all Obligees in the aggregate in excess of the penal sum above stated." Section 5.2 Standards Applicable. The Owner may effect such coverage under blanket insurance policies, provided, however, that (i) such policies are written on a per occurrence basis, (ii) such policies comply in all other respects with the provisions of Section 5.1, and (iii) the protection afforded the City under any such policy shall be no less than that which would be available under a separate, policy relating only to this Acquisition Agreement. All policies of insurance shall be with companies licensed or approved by the State of California Insurance Commissioner and rated (i) A or better with respect to primary levels of coverage, and (ii) B+12 or better with respect to excess levels of coverage, in the most recent edition of Best's Insurance Guide and shall be issued and delivered in accordance with State law and regulations.
Section 5.3 Evidence of Insurance. Prior to the Acceptance Date, the Owner shall furnish to the City, from time to time upon request of the Director, a certificate of insurance regarding each insurance policy required to be maintained by the Owner hereunder.
ARTICLE VI
REPRESENTATIONS, WARRANTIES AND COVENANTS
Section 6.1 Representations, Covenants and Warranties of the Owner. The Owner represents and warrants for the benefit of the City, as follows:
(a) Organization. Owner is a California corporation and is validly doing business and in good standing in the State of California, is in compliance with all applicable laws of the State, and has the power and authority to own its properties and assets and to carry on its business as now being conducted and as now contemplated.
(b) Authorit%. The Owner has the power and authority to enter into this Acquisition Agreement, and has taken all action necessary to cause this Acquisition Agreement to be executed and delivered, and this Acquisition Agreement has been duly and validly executed and delivered by the Owner.
(c) Bindinc Oblieation. This Acquisition Agreement is a legal, valid and binding obligation of the Owner, enforceable against the Owner in accordance with its terms, subject to bankruptcy and other equitable principles.
(d) Comlliance with Laws. The Owner shall not with knowledge commit, suffer or permit any act to be done in, upon or to the lands of the Owner in the District or the Facilities in violation of any law, ordinance, rule, regulation or order of any governmental authority or any covenant, condition or restriction now or hereafter affecting the lands in the District or the Facilities. (e) ReL nests for Pa% ment. The Owner represents and warrants that (i) it will not request payment from the City for the acquisition of any improvements that are not part of the Facilities, and (ii) it will diligently follow all procedures set forth in this Acquisition Agreement with respect to the Payment Requests.
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(f) Financial Records. Until the final acceptance of the Facilities, the Owner covenants to maintain proper books of record and account for the construction of the Facilities and all costs related thereto. Which accounting books shall be maintained in accordance with generally accepted accounting principles, and shall be available for inspection by the City or its agent at any reasonable time during regular business hours on reasonable notice. (g) Prevailine Wailes. The Owner covenants that, with respect to any contracts or subcontracts for the construction of the Facilities to be acquired from the Owner hereunder; it has assured complete compliance with any applicable law or regulation for the payment of prevailing wages for such construction.
(h) Plans. The Owner represents that it has obtained or will obtain approval of the Plans for the Facilities to be acquired from the Owner hereunder from all appropriate departments of the City and from any other public entity or public utility from which such approval must be obtained. The Owner further agrees that the Facilities to be acquired from the Owner hereunder have been or will be constructed in full compliance with such approved plans and specifications and any supplemental agreements (change orders) thereto, as approved in the same manner.
Section 6.2 Indemnification and Hold Harmless. The Owner shall assume the defense of, indemnify and save harmless the City, members of the City Council, their officers, officials, employees and agents and each of them, from and against all actions, damages, claims, losses or expense of every type and description to which they may be subjected or put, by reason of, or resulting from the breach of any provision of this Acquisition Agreement by the Owner, the Owner's or any other entity's negligent design, engineering and/or construction of any of the Facilities acquired from the Owner hereunder, the Owner's non-payment under contracts between the Owner and its consultants, engineer's, advisors, contractors, subcontractors and suppliers in the provision of the Facilities, any claims of persons employed by the Owner or its agents to construct the Facilities, claims for damages to persons or property related to the actions of Owner contemplated by this Acquisition Agreement or any claims arising out of any alleged misstatement of a material fact or omission of a material fact with respect to provisions in any Official Statement for the Bonds for which the Owner certifies in a customary certificate executed in connection with the printing of the Official Statement for such Bonds. Notwithstanding the foregoing, no indemnification is given hereunder for any action, damage, claim, loss or expense directly attributable solely to the intentional acts or negligence of the City, or its officers, directors, employees or agents hereunder.
No provision of this Acquisition Agreement shall in any way limit the Owner's responsibility for payment of damages resulting from the operations of the Owner, its agents, employees or its contractors.
ARTICLE VII
TERMINATION
Section 7.1 Mutual Consent. This Acquisition Agreement may be terminated by the mutual, written consent of the City and the Owner, in which event the City may let contracts for any remaining work related to the Facilities not theretofore acquired from the Owner hereunder, and use all or any portion of the monies in the Improvement Fund to pay for same, and the Owner shall have no claim or right to the Purchase Price of Facilities or Discrete Components hereunder, except as otherwise may be provided in such written consent. In any event, this Acquisition Agreement shall 14 4892-6939-1454x2/022599-0032
terminate upon the earlier of (i) ten (10) years following the issuance of building permits for all dwelling units expected to be built within the District or (ii) the funding of all Facilities pursuant to this Acquisition Agreement.
Section 7.2 City Election to Terminate for Cause. The following events shall constitute grounds for the City, at its option and in its sole discretion, to terminate this Acquisition Agreement, without the consent of the Owner:
(a) The Owner shall voluntarily file for reorganization or other relief under any Federal or State bankruptcy or insolvency law.
(b) The Owner shall have any involuntary bankruptcy or insolvency action filed against it, or shall suffer a trustee in bankruptcy or insolvency or receiver to take possession of the assets of Owner, or shall suffer an attachment or levy of execution to be made against the property it owns within the District unless, in any of such cases, such circumstance shall have been terminated or released within ninety (90) days thereafter.
(c) The Owner shall abandon construction of the Facilities. Failure for a period of six consecutive months to undertake substantial work related to the construction of Facilities that are required to be constructed at that time pursuant to the Conditions of Approval, other than for a reason specified in Section 7.3 hereof, shall constitute a non -inclusive example of such abandonment. (d) The Owner shall breach any material covenant or default in the performance of any material obligation hereunder.
(e) The Owner shall transfer any of its rights or obligations under this Acquisition Agreement without the prior written consent of the City or as otherwise permitted hereunder.
(f) The Owner shall have made any material misrepresentation or omission of any written materials furnished in connection with any preliminary official statement, official statement or bond purchase contract used in connection with the sale of any series of the Bonds.
If any such event occurs, the City shall give written notice of its knowledge thereof to the Owner, and the Owner agrees to meet and confer with the Director and other appropriate City staff and consultants as to options available to assure timely completion of the Facilities. Such options may include, but not be limited to the termination of this Acquisition Agreement by the City. If the City elects to terminate this Acquisition Agreement, the City shall first notify the Owner (and any mortgagee or trust deed beneficiary specified in writing by the Owner to the City to receive such notice) of the grounds for such termination and allow the Owner a reasonable period (minimum of thirty (30) days) to eliminate or mitigate to the satisfaction of the Director the grounds for such termination. Such period may be extended, at the sole discretion of the City, if the Owner, to the satisfaction of the City, is proceeding with diligence to eliminate or mitigate such grounds for termination. If at the end of such period (and any extension thereof, as determined solely by the City), the Owner has not eliminated or completely mitigated such grounds, to the satisfaction of the City, the City may then terminate this Acquisition Agreement.
Notwithstanding the foregoing, so long as any event listed in any of clauses (a) through and including (f) above has occurred, notice of which has been given by the City to the Owner, and such 15 4892-6939-1454v2/022599-0032
event has not been cured or otherwise eliminated by the Owner, the City may in its sole discretion cease making payments for the Purchase Price of Facilities or Discrete Components under Article III hereof.
Section 7.3 Force Majeure. Whenever performance is required of a party hereunder, that party shall use all due diligence and take all necessary measures in good faith to perform, but if completion of performance is delayed by reasons of floods, earthquakes, inclement weather or other acts of God, war, civil commotion, riots, strikes, acts of terrorism, pandemic, picketing, other labor disputes, damage to work in progress by casualty, government shutdowns, moratoria or other restrictive laws or regulations, or the acts, omissions or breach of agreement by the other party to this Acquisition Agreement or its agents, contractors or subcontractors, or by other cause beyond the reasonable control of the party (financial inability excepted), then the specified time for performance shall be extended by the amount of the delay actually so caused.
ARTICLE VIII
MISCELLANEOUS
Section 8.1 Limited Liability of City. The Owner agrees that any and all obligations of the City arising out of or related to this Acquisition Agreement are special and limited obligations of the District and City and the City's obligations to make any payments hereunder are restricted entirely to the moneys, if any, in the Improvement Fund and from no other source. No member of the City Council, or City staff member, employee or agent shall incur any liability hereunder to the Owner or any other party in their individual capacities by reason of their actions hereunder or execution hereof.
Section 8.2 Excess Costs. Subject to the limitations of this Acquisition Agreement, the Owner agrees to pay all costs of the Facilities that it is obligated to construct in excess of the monies available therefor in the Improvement Fund.
Section 8.3 Review of Records. The Director and/or the Finance Manager or other finance officer of the City shall have the right, during normal business hours and upon the giving of two (2) business days prior written notice to the Owner, to review all books and records of the Owner pertaining to the Actual Cost incurred by the Owner in or to any of the Facilities, and any bids taken or received for the construction thereof or materials therefor. Owner shall have the right, during normal business hours and upon the giving of two (2) business days prior written notice to the Finance Manager, to review all books and records of the City and District pertaining to the Special Taxes and Bonds.
Section 8.4 Attorney's Fees. In the event that any action or suit is instituted by either party against the other arising out of this Acquisition Agreement, the party in whose favor final judgment shall be entered shall be entitled to recover from the other party all costs and expenses of suit, including reasonable attorneys' fees.
Section 8.5 Notices. Any notice, payment or instrument required or permitted by this Acquisition Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered, or transmitted by telecopy or facsimile transmission (which shall be immediately confirmed by telephone and shall be followed by overnight delivery an original of the same within twenty-four hours after such transmission), addressed as follows:
16 4892-6939-1454x2/022599-0032
City and District:
With a copy to:
Owner:
With a copy to:
and a copy to:
City of Beaumont
550 East 6th Street
Beaumont, CA 92223
Attention: City Manager, City Clerk
John Pinkney
Slovak Baron Empey Murphy & Pinkney, LLP
1800 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Meritage Homes of California, Inc.
5 Peters Canyon Road, Suite 310
Irvine, CA 92606
Attention: Efrem Joelson, Forward Planning Manager
David Hendryx Consulting
3407 S Main Street, Unit A
Santa Ana, CA 92707
Attention: David Hendryx
John Yeager
O'Neil LLP
19900 MacArthur Blvd., Suite 1050
Irvine, CA 92612
Each party may change its address or addresses for delivery of notice by delivering written notice of such change of address to the other party.
Section 8.6 Severability. If any part of this Acquisition Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Acquisition Agreement shall be given effect to the fullest extent possible.
Section 8.7 Successors and Assigns. This Acquisition Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. This Acquisition Agreement shall not be assigned by the Owner, except in whole to an Affiliate, or to any other entity of which the Owner and/or its members or partners will be managing members or general partners which assume a]1 of the Owner's obligations hereunder (which transfer is expressly authorized hereunder, upon prior written notice to the City without further act of the City), without the prior written consent of the City, which consent shall not be unreasonably withheld or delayed. In connection with any required consent of the City, the City may condition its consent upon the acceptability of the financial condition of the proposed assignee, the assignee's express assumption of all obligations of the Owner hereunder, and/or upon any other factor which the City deems relevant in the circumstances. In any event, any such assignment shall be in writing, shall clearly identify the scope of the rights and/or obligations assigned, and shall not be effective until approved by the City. Without the City's written consent (except in whole to an Affiliate, or to any other entity of which the Owner and/or its members or partners will be managing members or general partners which assume all of the Owner's obligations hereunder), no assignment shall release the Owner from its obligations and liabilities under this Acquisition Agreement. 4892-6939-I454v2/022599-0032
17
Section 8.8 Other Agreements. The obligations of the Owner hereunder shall be those of a party hereto and not as an owner of property in the District. Nothing herein shall be construed as affecting the City's or the Owner's rights, or duties to perform their respective obligations, under other agreements, if any, use regulations or subdivision requirements relating to the development of the lands in the District. This Acquisition Agreement shall not confer any additional rights, or waive any rights given, by either party hereto under any development or other agreement to which they are a party.
Section 8.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Acquisition Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Acquisition Agreement thereafter.
Section 8.10 Merger. No other agreement, statement or promise made by any party or any employee, officer or agent of any party with respect to any matters covered hereby that is not in writing and signed by all the parties to this Acquisition Agreement shall be binding.
Section 8.11 Parties in Interest. Nothing in this Acquisition Agreement, expressed or implied, is intended to or shall be construed to confer upon or to give to any person or entity other than the City, the District and the Owner any rights, remedies or claims under or by reason of this Acquisition Agreement or any covenants, conditions or stipulations hereof; and all covenants, conditions, promises, and agreements in this Acquisition Agreement contained by or on behalf of the City, the District or the Owner shall be for the sole and exclusive benefit of the City, the District and the Owner.
Section 8.12 Amendment. This Acquisition Agreement may be amended, from time to time, by written Supplement hereto and executed by the City, the District and the Owner; provided, further, that Exhibit A may be modified to add additional authorized facilities or make adjustments to the existing Facilities only with the written approval of the Director and the Owner.
Section 8.13 Counterparts. This Acquisition Agreement may be executed in counterparts, each of which shall be deemed an original.
Section 8.14 Termination. This Acquisition Agreement shall terminate and be of no further force as provided in Section 7.1, unless extended by agreement of all the parties. If the Acquisition Agreement is terminated as provided herein, none of the City, the District or the Owner shall have any further responsibility or liability pursuant to this Acquisition Agreement. Upon the termination of this Agreement, the City shall direct the use of any remaining Bond or Special Tax proceeds to complete any remaining authorized facilities, redeem Bonds or use in any way permitted by the Act.
[Signature Page Follows]
18 4892-6939-1454v2/022599-0032
IN WITNESS WHEREOF, the parties have executed this Acquisition Agreement as of the day and year first -above written.
CITY OF BEAUMONT
ATTESTED :
ATTESTED:
4892-6939-1454v2/022599-0032
By:
CITY OF BEAUMONT COMMUNITY FACILITIES
DISTRICT NO. 2023-1 (FAIRWAY CANYON)
p.
By:
City Man r of the City of Beaumont
[SIGNATURES CONTINUED ON NEXT PAGE]
S-1
[SIGNATURE PAGE CONTINUED]
MERITAGE HOMES OF CALIFORNIA, INC.,
a California corporation
4892-6939-1454v2/022599-0032
By:
Authorized Signatory
S-2
ACQUISITION AGREEMENT
(CFD NO. 2023-1)
EXHIBIT A
DESCRIPTION OF FACILITIES AND DISCRETE COMPONENTS ELIGIBLE FOR
ACQUISITION FROM THE OWNER
Faciilityt' 2'3
Estimated Cost
Sorenstam Road Im 3rovement
$ 2„706,083.00
PA 21B Park Improvements _
4,999,342.00
TOTAL:
5 7.705E42s.t)0
The description of the above Facilities shall also include any appurtenant cost required for completion of such Facility including, but not limited to, grading, wet utility improvements, paving, dry utilities, performance bonds, design, planning, and engineering costs, etc.
2 Unless agreed to otherwise by the Owner and the City, dry utility cost reimbursements shall not exceed 5% of the proceeds of any series of Bonds.
3 The estimated costs of these Facilities represents the current estimates at the time of this Acquisition Agreement. The amount for any Facility may increase to include other costs subsequently submitted by Owner and approved by the City.
A-1
4892-6939-1454v2/022599-0032
ACQUISITION AGREEMENT
EXHIBIT B
FORM OF PAYMENT REQUEST (FACILITIES)
PAYMENT REQUEST NO.
The undersigned (the "Owner"), hereby requests payment to the Payees listed on Attachment 2 in the total amount of $ for the Facilities (as defined in the Acquisition Agreement, dated as of May 1, 2023 by and among the City of Beaumont (the "City"), the City of Beaumont Community Facilities District No. 2023-1 (Fairway Canyon) and the Owner), or Discrete Components thereof (as described in Exhibit A to that Acquisition Agreement), all as more fully described in Attachment ] hereto. In connection with this Payment Request, the undersigned hereby represents and warrants to the City as follows:
1. He (she) is a duly authorized officer of the Owner, qualified to execute this Payment Request for payment on behalf of the Owner and is knowledgeable as to the matters set forth herein.
2. All costs of the Facilities or Discrete Components thereof for which payment is requested hereby are Actual Costs (as defined in the Acquisition Agreement referenced above) and have not been inflated or misrepresented in any respect. The amount of the payment requested has not been previously paid by the City.
3. Supporting documentation (such as third party invoices) is attached with respect to each cost for which payment is requested.
4. There has been full compliance with applicable laws relating to prevailing wages for the work to construct the Facilities or Discrete Components thereof for which payment is requested.
5. The Facilities or Discrete Components thereof for which payment is requested were constructed in accordance with all applicable City or other governmental standards, and in accordance with Plans approved by the City.
6. The Owner is in compliance with the terms and provisions of the Acquisition Agreement.
7. The Purchase Price for each Facility or Discrete Component (a detailed calculation of which is shown in Attachment 2 hereto for each such Facility or Discrete Component), has been calculated in confonnance with the terms of the Acquisition Agreement.
B-1
4892-6939-1454v2/022599-0032
I hereby declare under penalty of perjury that the above representations and warranties are true and correct.
Dated:
OWNER:
MERITAGE HOMES OF CALIFORNIA, INC.,
a California corporation
By:
Name:
Title:
Dated: CITY:
4892-6939- I 454v2/022599-0032
Payment Request Approved for Submission to
Finance Manager
By:
Director of Public Works
B-2
ACQUISITION AGREEMENT
ATTACHMENT 1
EXHIBIT B
[List here all Facilities or Discrete Components thereafter which payment is requested, and attach support documentation.]
B-3
4892-6939-1454x2/022599-0032
ACQUISITION AGREEMENT
ATTACHMENT 2
EXHIBIT B
CALCULATION OF PURCHASE PRICE
[Use a separate sheet for each Facility or Discrete Component for which payment is being requested]
1. Description (by reference to Exhibit A to the Acquisition Agreement) $ of the Facility or Discrete Component
2. Actual Cost (list here total of supporting invoices and/or other $ documentation supporting determination of Actual Cost):
3. Subtractions from Purchase Price:
$
A. Holdback for Lien releases (if any, see Section 3.4 of the $ Acquisition Agreement)
B. Retention (if any, see Section 3.4 of the Acquisition $ Agreement)
4. Total disbursement requested (Amount listed in 2, less amounts, if any, $ listed in 3)
Payment shall be directed to following payee(s):
4892-6939-1454v2/022599-0032
B-4
I hereby declare under penalty of perjury that the above representations and warranties are true and correct.
OWNER:
Dated: By:
Name:
Title:
By:
Name:
Title:
CITY:
Payment Request Approved for Submission to
Finance Manager
Dated: _ By:
Director of Public Works
B-5
4892-6939-1454v2/022599-0032
ACQUISITION AGREEMENT
EXHIBIT C
CITY CFD POLICIES
C-1
4892-6939-1454v2/022599-0032
RESOLUTION NO. 1995- 23
A RESOLUTION OF THE CITY OF BEAUMONT DECLARING
ITS INTENTION TO ADOPT LOCAL PUBLIC AGENCY GOALS AND
POLICIES FOR COMMUNITY FACILITIES DISTRICTS.
WHEREAS, the City Council (the "City Council") of the City of Beaumont (the "City") has established Community Facilities District No. 93-1 under and pursuant to the terms and provisions of the "Mello -Roos Community Facilities Act of 1982" (the "Act"), being Chapter 2.5, Part 1, Division 2, Title 5 of the Govemment Code of the State of California; and
WHEREAS, the Act now provides that any public agency initiating proceedings to establish a Community Facilities District first consider and adopt local goals and policies; and
WHEREAS, the City Council has determined to consider and adopt local goals and policies at this time;
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE CITY
COUNCIL OF THE CITY OF BEAUMONT AS FOLLOWS:
Section 1. All of the above recitals are true and correct.
Section 2. The City Council has considered the City of Beaumont Goals and Policies for Community Facilities Districts attached hereto as Exhibit A (the "Goals and Policies") and such Goals and Policies are hereby adopted. The Goals and Polices include the following:
A. A statement of the priority that various kinds of public facilities have for financing through the use of the Act, including public facilities to be owned and operated by other public agencies, including school districts; ts. A statement concerning the credit quality to be required of bond issues, including criteria to be used in evaluating the credit quality; C. A statement concerning steps to be taken to ensure that prospective property purchasers are fully informed about their taxpaying obligations imposed under the Act;
D A statement concerning criteria for evaluating the equity of tax allocation formulas, and concerning desirable and maximum amounts of special tax to BMTANNR 1 951LT
be levied against any parcel pursuant to the Act; and
E. A statement of definitions, standards, and assumptions to be used in appraisals required by Section 53345.8 of the Act.
Section 3. The officers of the City and their authorized representatives, are, and each of them acting alone is, hereby authorized to execute any and all documents and agreements and do and perform any and all acts and things, from time to time, consistent with this Resolution and necessary or appropriate to carry the same into effect and to carry out its purpose.
Section 4. This Resolution shall take effect immediately upon its adoption.
MOVED, PASSED AND ADOPTED this 8th day of Play
1995 by the following vote:
AYES:
Mayor Pro Tem Parrott, Councilmembers Berg, Brey and
Russo.
NOES: None.
ABSTAIN: None.
ABSENT: Mayor Leja.
ATTEST:
MAYOR OF THE CITY OF BEAUMONT
2 BMTANNR] 95/LT
CERTIFICATION
The foregoing is certified to be a true copy of Resolution No. 1995- 23 duly adopted by the said City Council of the City of Beaumont on the date herein set forth.
CITY CLERK, CITY OF BEAUMONT
(SEAL)
BMTANNR1.95/LT
CITY OF BEAUMONT GOALS
AND POLICIES FOR
COMMUNITY FACILITIES DISTRICTS
EMfDESTI 3DOGLT/068
Table of Contents
CITY OF BEAUMONT
LOCAL PUBLIC AGENCY GOALS AND POLICIES
FOR COMMUNITY FACILITIES DISTRICTS
Section_ - Page
1. Introduction . . . . . . 1
II. Priorities for CFD Financing 2
III. Credit Quality Requirements for CFD Bond Issues 3
IV. Disclosure Requirements for Prospective Property Purchasers 4 V. Equity of Special Tax Formulas and Maximum Special Taxes 5 VI. Appraisal Standards 6
VII. Priority Attendance Access Policies 8
VIII. Other Matters 8
Exhibit 1 - Notice of Special Tax for Newly Developed Property 1-1 Exhibit 2 - Notice of Special Tax for Resale Property . . . . . . . . 2-1 BMPDEBTI 3DOdLT/0G8
CITY OF BEAUMONT GOALS AND
POLICIES FOR COMMUNITY FACILITIES DISTRICTS
L INTRODUCTION
As of January 1, 1994, the Mello -Roos Community Facilities Act requires any public agency initiating proceedings to establish a Community Facilities District (CFD) to first consider and adopt local goals and policies related to CFDs. At a minimum, these goals and policies must include the following:
1. A statement of the priority that various kinds of public facilities will have for financing through a CFD. Public facilities to be owned and operated by public agencies other than the City must also be included in the statement of priorities.
2. A statement concerning the credit quality which is to be required of CFD bond issues.
This statement must include criteria for evaluating credit quality.
3. A statement concerning the steps to be taken to ensure that prospective property purchasers are fully informed about the special taxes imposed on property within any CFD.
4. A statement concerning the criteria to be used for evaluating the equity of tax allocation formulas (i.e., special taxes allocated to different land use categories). This statement must include the desirable and maximum special tax levels to be levied against any CFD properties.
5. A statement establishing the criteria for preparing appraisals, including definitions, standards, and assumptions to be used in appraisals.
The following are the local goals and policies adopted by the City of Beaumont.
City of Beaumont
1 BMTDEBI3.DOC/LT/060
II. PRIORITIES FOR CFD FINANCING
Priority for CFD financing shall be given to public facilities which: (a) provide benefits of a regional nature, thereby serving not only the future residents of the CFD, but also the communities outside of the CFD, or (b) are found by the City to provide "significant public benefit." Once adequate provision has been made for facilities of a regional nature or those providing significant public benefit, the City may also choose to finance public improvements which primarily benefit residents within the CFD, or which provide less significant public benefit.
The City has entered into cooperative agreements with the San Gorgonio Pass Water Agency, the Beaumont -Cherry Valley Water District and the Beaumont Unified School District. The provisions of these agreements shall be reviewed in connection with any CFD financing.
Determination of the facilities of a regional nature and those that provide a significant public benefit shall include public facilities needed or required by other public agencies to serve a project included within a CFD. If appropriate, the City shall prepare a public facilities financing plan as a part of the specific plan or other land use document that identifies the public facilities of each public agency required to serve a project, and the type of financing to be utilized for each facility.
The improvements eligible to be financed by a CFD must be owned and operated by a public agency, and must have a useful life which is greater than the term of the bond issue, except that up to five percent of the proceeds of an issue may be owned and operated by a privately -owned public utility. The development proposed within a CFD must be consistent with the general plan and must have already received legislative approvals such as zoning or specific plan approvals.
The construction of improvements pursuant to a CFD shall not vest any rights to future entitlements on any properties, including those which are responsible for paying special taxes.
The list of eligible public facilities include, but are not limited to, the following:
• Streets
• Sewer mains
• Storm drains
• Water transmission mains
• Water, sewer or drainage pumping
plants
• Street lighting
• Traffic signals and safety lighting
• Grading necessary to accommodate
infrastructure, including retaining
walls, drainage facilities and
stabilization of land
• Parks and recreational facilities
City of Beaumont
• Elementary and secondary school
sites and facilities
• Libraries
• Child care facilities
• Public utilities, including flood and
storm drainage improvements
• Cultural facilities
• Police and fire protection facilities
• Government facilities
• Landscaping
2 BTT DEBT3.DOCJLTro6o
The funding of public facilities to be owned and operated by public agencies other than the City shall be considered on a case -by -case basis. If the proposed financing is consistent with a public facilities financing plan approved by the City, or the proposed facilities are otherwise deemed to be appropriate for financing by a CFD and are consistent with approved land use plans for the property, the City shall consider entering into a joint financing agreement or joint powers authority in order to finance these facilities.
III. CREDIT QUALITY REQUIREMENTS FOR CFD BOND ISSUES
In order to minimize the likelihood of a CFD defaulting on its payment to bond holders, all CFD bond issues shall require at least a three to one property value to public lien ratio. Property value may be based on either an appraisal or on assessed values as indicated on the county assessor's tax roll. The appraiser shall be selected by the City, and the appraisal shall be based on criteria as described below under Section V of these goals and policies. The appraisal must be dated within six months of the date the bonds are issued. The public lien amount shall be based on the size of the bond issue currently being sold, plus any public indebtedness currently existing against the properties to be assessed. Although it is not required that the value to lien ratio be three to one on a parcel by parcel basis, consideration must be given to this ratio when apportioning special taxes to different parcels, to assure that CFD property owners will accept their responsibilities for paying the special taxes of each parcel.
A reserve fund equal to the lesser of (i) ten percent of the original proceeds of the bond issue, (ii) the maximum annual debt service on all outstanding bonds, or (iii) 125 percent of the average annual debt service on all outstanding bonds shall be required for all bond issues in CFDs where less than 95 percent of the buildable acreage has been developed. A smaller reserve fund may be required by the City for bond issues in CFDs where over 95 percent of the buildable acreage has been developed.
Property tax delinquency rates on parcels included in a CFD must be no greater than ten percent on the date on which bonds are issued for that CFD. Each bond issue may require a current (dated within six months) CFD absorption study prepared by a consultant hired by the City, if the City determines that such objective data is necessary to analyze the feasibility of the project. An inadequate property value to public lien ratio, tax delinquencies in excess of ten percent, or projects of questionable economic viability may cause the City to disallow the sale of bond issues or require additional credit enhancement prior to bond sale.
The City may consider exceptions to the above policies for bond issues that do not represent an unusual credit risk, either due to credit enhancement or other reasons specified by the City.
Furthermore, the City will consider exceptions to these policies for projects which meet the public policy goals relating to affordable housing and creation of employment opportunities or tax revenues.
Bond issues which have less than a three to one value to lien ratio but are approved by the City for public policy reasons must be approved by four -fifths of the members of the City's legislative body.
City of Beaumont 3
BMTDEBT3.DOC/LTJO6O
IV. DISCLOSURE REQUIREMENTS FOR PROSPECTIVE PROPERTY PURCHASERS
DISCLOSURE REQUIREMENTS FOR BUILDERS AND DEVELOPERS
Builders who are selling new homes and developers who are selling lots or parcels that are within a CFD shall provide disclosure notice to purchasers of property that complies with all of the requirements of Section 53341.5 of the Government Code. The form of the notice to be provided shall be substantially equivalent to that shown in Exhibit 1. Modifications to this form shall only be allowed when necessary to more accurately describe the characteristics and tax structure of the CFD.
The disclosure notice must be provided to prospective purchasers of property at or prior to the time the contract or deposit receipt for the purchase of property is executed. A prospective purchaser of property has three days after delivery of the disclosure document in person, or five days after the document was deposited in the mail, to terminate an agreement for the purchase of property. Builders and developers are required to keep an executed copy of each disclosure document to prove that disclosure has been provided to all purchasers of property within a CFD.
Builders and developers shall be encouraged to develop a program to inform prospective purchasers about a CFD and its related special tax liabilities prior to the date on which a purchase agreement or deposit receipt is executed. The City may require that all advertising for properties within a CFD state that the property is within a CFD and is subject to special taxes, unless the builder or developer has instituted a program to otherwise inform prospective buyers about the CFD.
DISCLOSURE REQUIREMENTS FOR THE RESALE OF HOMES OR LOTS The City's department which is designated to determine the special tax liability each year shall also be designated to provide a notice of special taxes to sellers of property (other than builders or developers) which will enable them to comply with their notice requirements under Section 1102.6 of the Civil Code. This disclosure shall be in a form substantially equivalent to that shown in Exhibit 2. This notice shall be provided by the City within five working days of receiving a request for the notice. A reasonable fee may be charged for providing the notice.
The City's department which is designated to determine the special tax liability each year shall also establish procedures to promptly respond to inquiries concerning current and future special tax liability.
City of Beaumont 4
B TTDEBT3.DOGLT/060
V. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES Special tax formulas shall provide for special tax levels which satisfy the following expenses of a CFD:
• 110 percent gross debt service coverage for all bonded indebtedness • the reasonable and necessary administrative expenses of the CFD • amounts equal to the differences between expected earnings on any escrow fund and the interest payments due on bonds of the CFD
Additionally, the special tax formula may provide for the following:
• lease payments for existing or future facilities
• the costs of remarketing, credit enhancement and liquidity facility fees • the cost of acquisition, construction, furnishing or equipping of facilities • the accumulation of funds reasonably required for future debt service • any amounts required to establish or replenish any reserve fund established in association with the indebtedness of the CFD
• amounts equal to projected delinquencies of special tax payments • any other costs or payments permitted by law
• costs associated with the release of funds from an escrow account The special tax formula shall be reasonable and equitable in allocating public facilities costs to parcels within the CFD. Exemptions from the special tax may be given to parcels which are publicly owned, are held by a property owners association, are used for a public purpose such as open space or wetlands, are affected by easements making impractical their utilization for other than the purposes set forth in the easements, or have insufficient value to support bonded indebtedness.
The total projected property tax levels for any residential parcel within a CFD shall not exceed two percent of the projected initial sales price of a fully developed parcel (i.e., with a completed structure). The total projected property tax level shall include ad valorem property taxes, special taxes, special assessments, and other direct and overlapping debt supported by property taxes.
Commercial properties which provide economic benefits to the City may exceed the two percent property tax level if approved by the City.
Ciry of Beaumont 5
B3MITDEBT7.DOC/LT/06O
The maximum special tax for any developed residential parcel shall not increase at a rate greater than two percent annually. The special taxes formula should be structured such that special taxes levied on developed property are consistent year to year. Changes in the special tax needs from year to year should, to the degree possible, be borne by undeveloped property. Under no circumstances shall the special tax levied on any parcel of developed property be increased by more than ten percent as a consequence of delinquency or default by the owner of any other parcel.
VI. APPRAISAL STANDARDS
A. Definition of Appraisal
An appraisal is a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.
B. Standards of Appraisal
A detailed appraisal shall be prepared for complex appraisal problems. A detailed appraisal shall reflect nationally recognized appraisal standards including, to the extent appropriate, the Uniform Appraisal Standards for Federal Land Acquisition. An appraisal must contain sufficient documentation including valuation data and the appraiser's analysis of the data to support his or her opinion of value. At a minimum, the appraisal shall contain the following items:
a. The purpose and/or the function of the appraisal, a definition of the property being appraised, and a statement of the assumptions and limiting conditions affecting the appraisal.
b. An adequate description of the physical characteristics of the property being appraised, location, zoning, present use, and an analysis of highest and best use. c. All relevant and reliable approaches to value consistent with commonly accepted professional appraisal practices. If a discounted cash flow analysis is used, it should be supported with at least one other valuation method, such as a market approach using sales that are at the same stage of land development. If more than one approach is utilized, there shall be an analysis and reconciliation of approaches to value that are sufficient to support the appraiser' s opinion of value. d. A description of comparable sales, including a description of all relevant physical, legal and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction. e. A statement of the value of real property
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f. The effective date of valuation, date of appraisal, signature and certification of the appraiser.
C. Conflict of Interest
No appraiser or review appraiser shall have any interest direct or indirect in the real property being appraised for the City that would in any way conflict with the preparation or review of the appraisal.
D. Appraisal Premises
The appraisal should contain two or three values which shall be determined by the public agency and its consultants.
1. Raw Land Value. (Premise #1). The total land within the project is valued "as is":
a. With any existing infrastructure.
b. Without proposed infrastructure being financed.
c. With existing parcel configuration.
d. Considering planned densities allowed by the specific plan of the project.
This is a typical type of land valuation.
2. Project Build -out Value. (Premise #2). The total land within the project is valued under projected conditions. a. With proposed infrastructure being financed completed. b. At the planned densities allowed by the existing entitlements. c. Land development is at the stage of being marketed to merchant builders or tentative tract maps ready to be filed.
This is a projected value based on project plans predicated on market conditions continuing as projected.
3. Bulk Land Value. (Premise #3). The total land within the project is valued under projected conditions:
a. With proposed infrastructure being financed completed. b. With existing parcel configuration.
c. Considering planned densities allowed by the special plan of the project.
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This premise should consider a discounted or "quick sale" valuation considering time, cost and the possibility of a per unit value based on the total size of the project.
VII, PRIORITY ATTENDANCE ACCESS POLICIES (FOR SCHOOL DISTRICT ISSUES) The special taxes paid by CFD property owners to fund new school facilities, or improvements to existing school facilities, constitute an additional financial burden beyond the standard ad valorem property tax payments made by other property owners in the school district. As a result of this inequity, the City has determined that the City shall recommend to the applicable School District that the joint financing agreement with the school district specify the extent to which students residing within the CFD shall be given priority for attending those facilities which are being fully or partially funded by the CFD in which they reside.
The City shall recommend that the degree of priority for a given school facility that is to be assigned to a student residing within a CFD be based on the proportion of that facility which is being funded by that CFD. For example, if CFD No. 1 is funding 40 percent of a school facility, while CFD No. 2 is funding 20 percent of that same facility, the students residing in CFD No. 1 would receive a first priority for attendance at the facility in proportion to the funding provided by the CFD_ Students from CFD No. 2 would be given priority for any remaining classroom seats after the pro rata portion of students residing in CFD No. 1 have been given the opportunity to attend the facility.
Students from outside these two CFDs would only be allowed to occupy seats in the facility which remained available after the applicable pro rata portions of students from both CFDs had been given a chance to attend the school.
Notwithstanding the CFD priority attendance access policies stated above, a school district may incorporate attendance policies which are not consistent with these access policies if necessary to implement district goals to achieve ethnic, racial or socioeconomic diversity; federal, state, or court mandates; transportation needs and safe pedestrian routes; grade levels for which facilities were designed; and continuity of schooling for students within any single school year.
VIII. OTHER MATTERS
The City Council may, with respect to a particular CFD, consider additional policies to those required by the Mello -Roos Community Facilities Act, including policies related to developer deposits for formation expenses, bond refundings, foreclosure covenants, and other issues.
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EXHIBIT 1
NOTICE OF SPECIAL TAX [see Note 1]
CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO.
COUNTY OF RIVERSIDE, CALIFORNIA
TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS NOTICE
AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE.
(1) This property is subject to a special tax, which is in addition to the regular property taxes and any other charges, fees, special taxes, and benefit assessments on the parcel. It is imposed on this property because it is a new development, and may not be imposed generally upon property outside of this new development. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM
THE FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY.
(2) The maximum special tax which may be levied against this parcel to pay for public facilities is $ during the - tax year [see Note 2]. This amount will increase by percent per year after that [see Note 3]. The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the - _ tax year [see Note 4]. An additional special tax will be used to pay for ongoing service costs, if applicable. The maximum amount of this tax is dollars ($_) during the -_ tax year.
This amount may increase by , if applicable, and that part may be levied until the tax year (or forever, as applicable) [see Note 5] .
(3) The authorized facilities which are being paid for by the special taxes, and by the money received from the sale of bonds which are being repaid by the special taxes, are:
[see Note 6].
These facilities may not yet have all been constructed or acquired and it is possible that some may never be constructed or acquired.
In addition, the special taxes may be used to pay for costs of the following services:
[see Note 7].
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YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH
AUTHORIZED CREATION OF THE COMMUNITY FACILITIES DISTRICT, AND WHICH
SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW THE
PROCEEDS OF THE TAX WILL BE USED, FROM THE BY CALLING
[see Note 8]. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF PROVIDING THE DOCUMENT.
I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A COPY
OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE OR DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE -REFERENCED PROPERTY. I (WE)
UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR
DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS NOTICE IN PERSON
OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRFITEN NOTICE OF THAT TERMINATION TO THE OWNER, SUBDIVIDER, OR AGENT SFT.T ING THE PROPERTY.
DATE:
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Notes to the CFD Disclosure
Note 1: The heading must be in type no smaller than eight point type.
Note 2: Provide the maximum special tax that can be levied on a unit in a particular year (usually the first year the tax can be levied). The maximum tax on the specific unit being purchased by the buyer must be disclosed; if the backup tax is the maximum tax, this tax must be determined and disclosed for the particular unit that is being purchased. It is recommended that a separate disclosure form be prepared for each unit in a subdivision.
Note 3: This applies to the increase in the maximum special tax, not the potential increase in the tax actually levied.
Note 4: If it can be ascertained, disclose the last fiscal year in which the tax will be levied and collected. For districts formed prior to January 1, 1993, this information may not be known, and therefore, cannot be disclosed.
Note 5: If special taxes in excess of the special taxes explained in notes 1-3 will be collected to pay for public services, these taxes must be disclosed here. The disclosure requirements are the same as the disclosure explained by notes 1-3.
Note 6: The facilities being financed by the special taxes must be described. The description may be general and may include alternatives and options, but it must be sufficiently informative to allow the home buyer to understand what the funds of the district will be used to finance.
Note 7: The same requirements explained in note 5, except that services to be paid for by the CFD must be described.
Note 8: Provide the office of the City in which the prospective buyer may obtain a copy of the resolution of formation and the phone number to call to obtain the resolution.
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EXHIBIT 2
NOTICE OF SPECIAL TAX [see Note 1]
CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO.
COUNTY OF RIVERSIDE, CALIFORNIA
TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY.
This property is subject to a special tax, which is in addition to the regular property taxes and any other charges and benefit assessments on the parcel. This special tax may not be imposed on all parcels within the city or county where the property is located. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX
AND THE BENEFITS FROM THE PUBLIC FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. (2) The maximum special tax which may be levied against this parcel to pay for public facilities is $ during the tax year [see Note 2]. This amount will increase by — percent per year after that [see Note 3] . The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the _ tax year [see Note 4].
An additional special tax will be used to pay for ongoing services, if applicable. The maximum amount of this tax is dollars ($_) during the tax year. This amount may increase by , if applicable, and may be levied until the tax year (or forever, as applicable) [see Note 5].
(3) The authorized facilities which are being paid for by the special taxes, and by the money received from the sale of bonds which are being repaid by the special taxes, are:
[see Note 6].
These facilities may not yet have all been constructed or acquired and it is possible that some may never be constructed or acquired.
In addition, the special taxes may be used to pay for costs of the following services:
[see Note 7].
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YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH
AUTHORIZED CREATION OF THE COMMUNITY FACILITIES DISTRICT, AND WHICH
SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW THE
PROCEEDS OF THE TAX WILL BE USED, FROM THE BY CALLING
[see Note 8]. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCERT) THE REASONABLE COST OF PROVIDING THE DOCUMENT.
I (WE) ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A COPY OF THIS NOTICE. I (WE)
UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR
DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE OWNER OR AGENT SELLING THE PROPERTY. THE CONTRACT MAY BE TERMINATED WITHIN THREE
DAYS IF THE NOTICE WAS RECEIVED IN PERSON OR WITHIN FIVE DAYS AFTER IT
WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY.
DATE:
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Notes to the CFD Disclosure
Note 1: The heading must be in type no smaller than eight point type.
Note 2: Provide the maximum special tax that can be levied on a unit in a particular year (usually the first year the tax can be levied). The maximum tax on the specific unit being purchased by the buyer must be disclosed; if the backup tax is the maximum tax, this tax must be determined and disclosed for the particular unit that is being purchased. It is recommended that a separate disclosure form be prepared for each unit in a subdivision.
Note 3: This applies to the increase in the maximum special tax, not the potential increase in the tax actually levied.
Note 4: If it can be ascertained, disclose the last fiscal year in which the tax will be levied and collected. For districts formed prior to January 1, 1993, this information may not be known, and therefore, cannot be disclosed.
Note 5: If special taxes in excess of the special taxes explained in notes 1-3 will be collected to pay for public services, these taxes must be disclosed here. The disclosure requirements are the same as the disclosure explained by notes 1-3.
Note 6: The facilities being financed by the special taxes must be described. The description may be general and may include alternatives and options, but it must be sufficiently informative to allow the home buyer to understand what the funds of the district will be used to finance.
Note 7: The same requirements explained in note 5, except that services to be paid for by the CFD must be described.
Note 8: Provide the office of the City in which the prospective buyer may obtain a copy of the resolution of formation and the phone number to call to obtain the resolution.
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AGENDA NO.
STAFF REPORT
To; Mayor and Council Members
From: Community and Economic Development Department
Date: May 8, 1995
Subject: Resolution Declaring the intention of the City to Adopt Local Public Agency Goals and Policies for Community Facilities Districts
BACKGROUND:
The City of Beaumont has formed Community Facilities District 93-1 and is contimplating future annexations to the district for construction of public improvements and maintenance of public facilities. The Mello -Roos and Community Facilities District Act of 1982 as Amended (the Act) requires public agencies to adopt goals and policies for community facility districts prior to any future annexations of financings.
ANALYSIS:
The proposed resolution would establish the attached goals and policies for community facility districts in the City. The goals and policies are consistent with the Act and include the following general provisions:
A. A statement of the priority that various kinds of public facilities have for financing through the use of the Act, including public facilities to be owned and operated by other public agencies, including school districts; B. A statement concerning the credit quality to be required of bond issues, including criteria to be used in evaluating the credit quality;
C. A statement concerning steps to be taken to ensure that prospective property purchases are fully informed about their taxpaying obligations imposed under the Act;
D. A statement concerning criteria for evaluating the equity of tax allocation formulas, and concerning desirable and maximum amounts of special tax to be levied against any parcel pursuant to the Act; and
AGENDA NO.
E. A statement of definition, standards,
s,Aand assumptions to be used in appraisals
required by Section 53345
RECOMMENDATION:
Staff recommends:
1) ADOPTION of the Resolution of the City of Beaumont Declaring its Intention to Adopt Local Public Agency Goals and Policies for Community Facilities Districts. tfull " subr u'tted,
1 David W. Dillon,
Economic Development Director
BEAUMONTA -C A L I F O R N -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Christopher Ramos, Chief of Police
BY: Jeremy Harris, Lieutenant
DATE: April 7, 2026
SUBJECT: Beaumont Police Department Specialized Equipment Inventory and Fiscal Impact Report 2026
Description: Per Government Code § 7072, cities are required to submit an annual report to its governing body regarding military equipment (specialized equipment) as dictated by Assembly Bill AB481.
Background and Analysis:
Government Code § 7072 requires a law enforcement agency to submit a military equipment (Specialized Equipment) report to its governing body for each type of specialized equipment approved annually for as long as the military equipment is available for use. The Chief of Police or the authorized designee are also required to make each annual specialized equipment report publicly available on the department website for as long as the specialized equipment is available for use. The report must include all information required by Government Code § 7072 for the preceding calendar year for each type of specialized equipment in the department inventory.
The annual specialized equipment report must, at a minimum, include the following information for the immediately preceding calendar year for each type of specialized equipment:
(1) A summary of how the specialized equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the specialized equipment.
(3) The results of any internal audits, any information about violations of the specialized equipment use policy, and any actions taken in response. (4) The total annual cost for each type of specialized equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the specialized equipment in the calendar year following submission of the annual specialized equipment report. (5) The quantity possessed for each type of specialized equipment.
(6) If the law enforcement agency intends to acquire additional specialized equipment in the next year, the quantity sought for each type of specialized equipment.
For items 1, 2, and 3 above, the specialized equipment we have in our inventory has been deployed routinely throughout the past year and has helped resolve extremely hazardous and dangerous incidents on numerous occasions. The specialized equipment has mitigated the need for use of deadly force and has provided additional layers of protection for citizens, law enforcement personnel and other First Responders. This specialized equipment can and has reduced City liability during various critical incidents. The specialized equipment currently in use is necessary to help contend with the high level of violence seen by law enforcement throughout the Country. In addition, the equipment is essential in providing additional support during natural disasters and acts of terrorism.
An internal audit was conducted regarding the use of authorized specialized equipment during the 2025 calendar year. No violations were discovered regarding the equipment.
See attachment A for Items 4 and 5.
The Beaumont Police Department will hold an annual community engagement meeting on April 15, 2026, within 30 days of this report submission, to allow the community to ask questions about the specialized equipment currently in use.
Fiscal Impact:
All specialized equipment maintenance has been budgeted for. The estimated cost to prepare this report is $800.00.
Recommended Action:
Receive and file.
Attachments:
A. Military Equipment (Specialized Equipment) Inventory and Fiscal Impact
Attachment A: MILITARY EQUIPMENT (SPECIALIZED EQUIPMENT) INVENTORY AND FISCAL IMPACT
The following constitutes a list of qualifying specialized equipment currently available for use by the Beaumont Police Department, deemed to be "Military Equipment" under Section 7070 of the California Government Code:
Unmanned, Remotely Piloted, Powered Vehicles (Govt Code 7070(c)(1)): Remotely piloted machines operating on the ground or in the air (e.g., aerial drones and robots), utilized to enhance the safety of community members and officers.
1. Description, capabilities, quantity, and cost:
a. DJI MAVIC 3 - Featuring a Hasselblad camera that boasts a 4/3 CMOS sensor. Key features include its 15km transmission range using DJI's new OcuSync 3+ technology and up to 46 minutes of flight time with its 5000 mAh battery, making it the longest flight time for a consumer drone on the market. Cost: $20,154.84 using SLESA funds, Quantity: 4 b. DJI MATRICE 300 - The Matrice 300 RTK (real-time kinematic) drone is DJI's premiere enterprise commercial drone. The M300 is built on and improved upon the DJI Matrice 200, the industry standard for many years. Enhanced with longer flight times, increased payload capability, advanced Al, and various other features, the M300 is a complete ecosystem to meet the most demanding enterprise needs. Cost: $30,398 using SLESA funds, Quantity: 1
The Matrice 300 RTK is designed to work in challenging environments. It's IP45 ingress protection means it stays hard at work despite heavier rain, dust, or particles. It can operate in extreme temperatures from -4°F to 122°F and fly through winds up to 33.5 MPH. In the unlikely event of system failure, multiple redundancies will alert you and help maintain flight.
This drone also utilizes tried-and-true FAA technology for next -generation aircraft with an ADS -B AirSense receiver, anti -collision beacon, and six directional sensing and positioning sensors to support collision avoidance with a detection range of over 130 feet. For more extended missions, the M300 even allows pilot -to -pilot hand-off, helping to ensure continuous operation through large areas.
The Matrice 300 RTK is compatible with various payloads that utilize LiDAR, thermal imaging, high zoom cameras, hybrid (wide, zoom, and thermal), or third -party gimbals and spotlights. The Beaumont Police Department utilizes the Zenmuse H2OT dual thermal camera. This camera can spot subjects or terrain through smoke, fog, night, or
bad weather through a combination of payloads and picture profiles. This aircraft can also create detailed 3D maps and models for crime scenes or accident reconstruction.
Smart Track lets the drone automatically follow a subject visually and update its dynamic location on a map in real time. Additionally, Smart Inspect can take a series of more than 65,000 waypoints and automate your positions. Smart Inspect can also replicate camera position, angle, and shot framing to track changes over time.
The Matrice 300 RTK provides immense support in an ever-changing world. Through its Disaster Relief Program, DJI has developed the best real -world practices and use cases, which resulted in its white paper, which universities and public safety agencies supported.
2. Purpose:
To be deployed when it's view would assist officers or incident commanders with the following situations, which include but are not limited to:
a. Post -incident crime scene preservation and documentation, b. Response to hazardous materials spills,
c. Traffic collision investigations,
d. Search and Rescue (SAR) missions as defined in the Department Policy Manual, e. Public safety and life preservation missions to include, but not be limited to, barricaded suspects, hostage situations, active shooters, apprehension of armed and dangerous and/or violent suspects, and high -risk search warrants, f. Disaster response and recovery to include natural or human -caused disasters, including a full overview of a disaster area for post -incident analysis and documentation, g. Training flights in support of the Department UAS Training Manual, h. For fire response and prevention,
i. When there is reasonable belief to believe that (1) the UAS may record images of a place, thing, condition, or event; and (2) that those images would be relevant in proving that a crime had occurred or is occurring, or that a particular person committed or is committing a crime and use of the UAS does not infringe upon the reasonable expectation of privacy,
j. Pursuant to a search warrant,
k. Inspect Beaumont city property and facilities, including locations designated under the US Department of Homeland Security's Critical Infrastructure Sectors.
I. Video production for the department and other city departments for promotional, educational, and/or training purposes.
3. Authorized Use:
Only assigned operators who have completed the required training shall be permitted to operate any UAS during approved missions.
4. Expected Lifespan:
All UAS equipment has an estimated lifespan of 3-5 years.
5. Fiscal Impact:
The estimated annual cost of the UAS program maintenance is $2,548.
6. Training:
The Federal Aviation Administration will license all Department UAS operators for UAS operation under 14 CFR Part 107. In addition, each operator must attend ongoing currency flights and training.
7. Legal and Procedural Rules:
The Department will only deploy the UAS for official law enforcement purposes or approved missions pursuant to applicable Federal & State laws, BPD UAS Policy 612, and in a manner that respects the privacy of our community.
Mobile Command Vehicle (MCV) (Govt Code 7070 (c)(5)): This vehicle is used during critical incidents as a field -based command post, providing Incident Commanders with access to Department computer systems and a radio communication center.
1. Description, capabilities, quantity, and cost:
Freightliner Chassis vehicle- The MCV is utilized for critical incidents, significant, preplanned events, searching for missing persons, natural disasters, and community events involving law enforcement. Cost: UNKNOWN, Quantity: 1
2. Purpose:
It is used for critical incidents based on the circumstances of a specific event, large event, or natural disaster to serve the community effectively and efficiently.
3. Authorized Use:
Only personnel trained in the use and deployment of the MCV shall drive the vehicle under the direction of the Watch Commander, Incident Commander, Detective Bureau, or their designee. Situations where the MCV may be deployed include critical incidents, natural disasters, and emergencies.
4. Expected Lifespan:
The MCV's estimated lifespan is 15 years; however, upgrades are required at 5 -year intervals to maintain communications and IT systems.
5. Fiscal Impact:
The MCV was purchased in 2007 using general funding. The annual maintenance cost is estimated to be $5,500.
6. Training:
Drivers and operators shall receive safe handling and maneuvering training. Once the operator is competent in vehicle handling, the driver will drive the vehicle with an experienced driver throughout the city. Drivers and operators shall also undergo commercial vehicle testing and certification from the California Department of Motor Vehicles as required.
7. Legal and Procedural Rules:
Command and control vehicles will only be operated by department members who have been trained in their operation and according to Department Policy.
Rifles and Ammunition (Govt Code 7070(c)(10)):
1. Description, capabilities, quantity, and cost:
Armalite Rifle (AR) -15 Style .223/5.56- A lightweight, shoulder -fired, magazine -fed, gas/piston-operated rifle with a rifled barrel intended to make a bullet spin, giving greater
accuracy over a distance with better ballistic capabilities than a pistol. Each rifle may have different modular accessories aiding operation and use.
I. Colt Enhanced Patrol Rifle (EPR) - Cost $1,109.9 x 19.
II. Sig Sauer M400 Pro - Cost $964.47 x 9.
III. Sig Sauer WRM400 SBR - Cost $978.96 x 20.
The SIG Sauer MPX / MCX are gas -operated submachine guns primarily chambered in 9mm and .223/5.56 Caliber. It is a gas -operated firearm featuring a closed, rotating bolt with a short -stroke, push -rod gas system, which reduces recoil and improves the weapon's reliability. The standard variant of the MPX / MCX comes with an 8.0 -inch barrel with variants. The weapon systems come with a collapsible stock and a free-floating rail.
This weapon system also features an AR -15 -style loading system design and is compatible with suppressors and accessories for user customization.
I. Sig Sauer MPX — Cost $1,700.00 x 9.
II. Sig Sauer Rattler MCX - Cost $2,066.70 x 8.
2. Purpose:
A precision weapon that can address a threat with better accuracy at greater distances than a handgun. Also, for encounters with active shooters who are heavily armed and may be equipped with body armor
3. Authorized Use:
Members who are POST -certified in the use of rifles are authorized to deploy them in the field and in an emergency.
4. Expected Lifespan:
The rifles listed above have an expected Iifespan of approximately 12 years, depending upon use.
5. Fiscal Impact:
The rifles were purchased using general funds and prior equipment trade-ins. Annual maintenance for each rifle is approximately $50.00.
6. Training:
Before deploying a rifle, members must complete a POST -certified course on its operation.
Additionally, all members must pass a rifle range qualification according to department policy.
7. Legal and Procedural Rules:
The Department will only utilize firearms in accordance with State law, Federal law, and Department policy.
Ammunition Storage Inventory:
a. Description, purchase cost, and quantity
I. Hornady 5.56 caliber 53gr, Quantity: 9333 rounds, cost $231.70 per 200 rounds.
II. Hornady 5.56 caliber training 55gr, Quantity: 22,330 rounds, cost $242.00 per 500 rounds.
III. Hornady 5.56 caliber 75gr SBR, Quantity: 8,200 rounds, cost $184.80 per 200 rounds.
b. Purpose:
To be used as rifle ammunition to address a threat with more precision and/or greater distance than a handgun, if present and feasible.
c. Authorize Use:
Only officers who have completed a P.O.S.T-certified rifle training course are authorized to use a weapon capable of firing this type of ammunition.
Hornady 5.56 caliber ammunition 53gr - 5 years.
Hornady 5.56 caliber training ammunition 55gr - 5 years.
Hornady 5.56 caliber ammunition 75gr SBR — 5 years.
d. Fiscal Impact:
No annual maintenance for ammunition.
e. Training:
Per Department policy, officers must qualify once a year with a patrol rifle to remain certified with the rifle.
f. Legal and Procedural Rules:
After being issued, ammunition must be stored inside the range facility or in a magazine feeding device. Per policy, a round may not be inserted in the chamber until the rifle is deployed in the field during an incident or used during training/qualification.
PepperBall Launcher and Munitions (Govt Code 7070(c)(12)): A device that allows a law enforcement officer to maintain distance from an assailant or crowd.
1. Description, capabilities, quantity, and cost:
a. PepperBall Launcher FTC- Semi -automatic, compressed air operated launcher with gravity feed and smooth barrel. With a push button, cross bolt trigger safety and charging handle. It will launch a standard PepperBall projectile. The projectiles are fired at a velocity of 300 to 350 feet per second. It has approximately 8 -to -12 -foot pounds of kinetic energy. The target range is 0-60 feet (individual) and a maximum range of 150 feet (saturation area). Cost: $1,003.70 each with a loader, using general funds. Quantity: 7 b. PepperBall Inert Practice Projectiles- Projectiles contain a harmless, scented powder, best suited for practice or direct impact when chemical exposure is not desired, are .68 caliber, and weigh 3 grams. Cost: $0.76 each, Quantity: 1,125 c. Live Projectiles- Projectiles contain 2.0% PAVA. It is effective for direct impact and area saturation. It is .68 caliber and weighs 3 grams. The cost is $2.39 each, and the Quantity:
375.
2. Purpose:
Lawful application of force delivered with the intent to subdue or render non -threatening. The less lethal munitions may be used as an option to de-escalate a potentially dangerous/deadly
situation, with a reduced potential for death or serious injury to all persons involved. It is accepted that the probability exists for bodily harm to occur. However, it must also be assumed that the application of such force may be the only alternative to using lethal force to stop the subject's actions.
3. Authorized Use:
1. Situations where the deployment of less -lethal impact or munitions is authorized include but are not limited to:
a. Self-destructive, dangerous, and/or combative individuals. b. Riot/crowd control and civil unrest incidents where criminal behavior exceeds a failure to disburse or curfew violation.
c. Circumstances where a tactical advantage can be obtained.
4. Expected Lifespan:
a. PepperBall FTC Launcher: 10 years
b. All PepperBall projectiles have a life span of 3 years.
5. Fiscal Impact:
The PepperBall Launchers were purchased with general funds. The annual maintenance for the PepperBall FTC Launcher is approximately $50 each.
6. Training:
Before deploying, members must complete a certified course in operating the PepperBall Launcher and its functions. Additionally, all members operating any Less -Lethal Devices must pass a qualification course in instruction according to department policy.
7. Legal and Procedural Rules:
The Department will only utilize less lethal devices in accordance with State and federal law and Department policy.
40MM Launchers and Munitions (Govt Code 7070(c)(14) ): Department personnel utilize 40MM launchers as a less -lethal tool to deploy less -lethal impact munitions.
1. Description, capabilities, quantity, and cost:
a. Penn Arms Multi Shot Launcher, G165-40. The 40MM multi -shot spring -advance magazine drum launcher has a six -shot capacity, rifled barrel, 6 -inch cylinder, and break - action loading. Spring cylinders advance actuated by trigger pull. The safety features are a push button and cross -bolt trigger safety. It will fire standard 40MM less -lethal ammunition up to 6 inches in cartridge length. It will launch a 40 mm less -lethal round up to 150 feet. Cost: $2,430.42, using general funds. Quantity: 3 b. Combined Tactical Systems, 40MM Exact Impact Sponge Round, 4557- A less lethal 40MM sponge round that is smokeless, spin -stabilized, and 4 inches long. The 40MM sponge projectile is fired from a single or multi -round purpose-built 40MM Launcher. The 60 -gram sponge baton is a spin -stabilized projectile delivering a blunt trauma effect. The 40MM exact impact sponge round provides accurate and effective performance with no minimum standoff range. The optimal Range for the 40MM sponge round is 10 to 75 feet.
Cost: $22.02 per round. Quantity: 96.
2. Purpose:
Lawful application of force delivered with the intent to subdue or render non -threatening. The less lethal munitions may be used as an option to de-escalate a potentially dangerous/deadly situation, with a reduced potential for death or serious injury to all persons involved. It is accepted that the probability exists for bodily harm to occur. However, it must also be accepted that the application of such force may be the only alternative to using lethal force to stop the subject's actions.
3. Authorized Use:
Situations where the deployment of less -lethal impact or chemical munitions is authorized include but are not limited to:
a. Self-destructive, dangerous, and/or combative individuals. b. Riot/crowd control and civil unrest incidents where criminal behavior exceeds a failure to disburse or curfew violation.
c. Circumstances where a tactical advantage could be obtained. d. Tactical situations involving the deployment of Department personnel.
4. Expected Lifespan:
a. Penn Arms Multi Shot Launcher: 15 years.
b. All munitions listed above 5 years.
5. Fiscal Impact:
The Penn Arms multi -shot launchers were purchased with general funds. Their annual maintenance is approximately $50 each.
6. Training:
Members must complete a POST -certified operation course before deploying 40MM launchers and munitions. Additionally, all members operating Less -Lethal Devices must pass a qualification course of instruction according to department policy.
7. Legal and Procedural Rules:
The Department will only utilize less lethal devices in accordance with State and federal law and Department policy.
BEAUMONTA -C A L I F O R N -
Staff Report
TO: Honorable Mayor and Members of the City Council
FROM: Christopher Ramos, Chief of Police
BY: Jeremy Harris, Lieutenant
DATE: April 7, 2026
SUBJECT: Approval of Conveyance Agreement for Retired Police K-9 Murph Description: The Police Department is requesting to approve a conveyance agreement authorizing the transfer of ownership of retired Police K-9 Murph to his former handler, Sergeant Christopher Crews.
Background and Analysis:
K-9 Murph has honorably served the Beaumont Police Department and the community with distinction and was recognized by City Council on November 18, 2025, for his upcoming retirement. K-9 Murph stayed in service until a replacement K-9 was available.
It is a long-standing and widely accepted practice in law enforcement agencies to offer retired K -9s to their handlers upon retirement. This approach prioritizes the well-being of the animal, recognizing the strong bond between the handler and K-9, and provides continuity of care in a familiar environment.
Sergeant Christopher Crews, as K-9 Murph's former handler, is the preferred recipient of the animal. Should Sergeant Crews decline, the Police Department will identify another suitable and responsible individual to assume ownership, ensuring K-9 Murph's continued care and quality of life.
The conveyance agreement formalizes the transfer of ownership and establishes clear terms regarding responsibility, liability, and care of the animal once retired from service.
Fiscal Impact:
There is no fiscal impact to the City associated with this action.
The conveyance agreement transfers all financial responsibility, care obligations, and liability associated with K-9 Murph to the individual assuming ownership. Upon execution of the agreement, the City will no longer be responsible for any costs related to the animal's care, including medical expenses, food, or maintenance.
Recommended Action:
Approve the conveyance agreement authorizing the transfer of retired Police K-9 Murph to Sergeant Christopher Crews, or, if declined, to another qualified individual approved by the Police Department
Attachments:
A. Conveyance Agreement
Agreement for Sale of City of Beaumont
K-9 Police Service Dog - MURPH
THIS AGREEMENT for Sale of Service Dog (the "Agreement") is entered into as of the 7th day of April 2026, by and between the City of Beaumont ("CITY") and Christopher Crews, an individual "CREWS."
RECITALS
WHEREAS, the K-9 Service Dog "MURPH," having served the people of the City of Beaumont, is nearing retirement; and
WHEREAS, the CITY seeks to find a good home for the care of K-9 Murph in his senior years; and
WHEREAS, Police Sergeant Christopher Crews, in his individual capacity, has agreed to purchase K-9 Murph and to keep and care for Murph as a pet; NOW THEREFORE, in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
1. CONSIDERATION. In consideration of the sum of one dollar ($1.00), receipt and sufficiency of which is hereby acknowledged, CITY sells, conveys and transfers the City of Beaumont K-9 Service Dog "Murph," more specifically described as:
Dog's Name: MURPH
Breed of Dog: Belgian Malinois
Color of Dog: Brown
Date of Birth: 04/15/2020
Sex of Dog: Male
2.REGISTRATION AND OWNERSHIP TRANSFERS: Upon payment in full as set forth above, CITY shall promptly transfer ownership and registration, if applicable, of Murph to CREWS.
3.CITY'S REPRESENTATIONS: CITY warrants to CREWS that CITY is the legal and true owner of K-9 Murph, and that CITY has the unqualified right to sell K-9 Murph.
Furthermore, CITY warrants that K-9 Murph is sold free and clear of any lien, security interest, or this encumbrance.
4. CREWS'S REPRESENTATIONS AND DUTIES. From and after the transfer of K-9 Murph to CREWS, CREWS shall humanely care for K-9 Murph, and provide adequate nutritional food, exercise, love, veterinary care, and companionship to K-9 Murph.
CREWS makes this Agreement in his individual capacity, and his employment relationship with the Beaumont Police Department is in no manner related to his role as a party to this Agreement. In the event of any future disagreement, claim, dispute, or lawsuit between the parties with respect to this Agreement or to K-9 Murph, CREWS will not assert that his employment relationship with CITY in any manner enhances his position over that of an unrelated third -party buyer. CREWS is aware that K-9 Murph was trained as, and served as a K-9 Service Dog. In such capacity, K-9 Murph was taught to locate illegal substances, assist patrol during deployments and handler protection. CREWS understands that such training cannot be unlearned. Accordingly, CREWS agrees to take all necessary and reasonable precautions to assure that K-9 Murph does not wrongfully attack any persons.
5. WARRANTIES: K-9 Murph is sold with no express or implied warranties or representations having been made by CITY to CREWS other than those expressly stated above.
6. INDEMNIFICATION. CREWS hereby agrees to indemnify and hold harmless the City of Beaumont, and its employees, officers and agents, against any and all claims, actions, demands, liabilities, losses, damages, judgments, settlements, costs and expenses (including reasonable attorneys' fees) (any or all of the foregoing hereinafter referred to as "Losses") for any injuries or death caused to any persons and for any damage to any property, caused by K-9 Murph subsequent to the transfer of his ownership to CREWS.
7. DAMAGES. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES
ARISING OUT OF THIS AGREEMENT OR FROM ANY SUBSEQUENTIAL ACTION OR OMISSION ON THE PART OF THE DOG "K-9 MURPH," WHETHER LIABILITY IS
ASSERTED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY
OR OTHISWISE AND IRRESPECTIVE OF WHETHER SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH LOSS OR DAMAGE.
8. ENTIRE AGREEMENT. This Agreement is the complete and exclusive agreement between the parties with respect to the subject matter hereof, superseding any prior agreements and communications (both written and oral) regarding such subject matter.
This Agreement may only be modified, or any rights under it waived, by a written document executed by both parties.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the day and year first above written.
CITY OF BEAUMONT Christopher Crews
By: By:
Gustavo Romo, Interim City Manager Christopher Crews
Attest: By:
Elaine Morgan, City Clerk
BEAUMONT
-C A L I F O R N A -
Staff Report
TO: City Council
FROM: Kirk Pelser, Economic Development Director
BY: Joseph Cale, Management Analyst
DATE: April 7, 2026
SUBJECT: Award of Business Attraction and Expansion Program Grant — Application ED2025-0015
Description: Approve a $50,000 loan/grant under the Downtown Business Attraction and Expansion Program for Application ED2025-0015 to support a qualifying downtown business investment.
Background and Analysis:
The Downtown Business Attraction and Expansion Program provides loans to eligible sales tax -generating businesses that create jobs, increase foot traffic, and activate the downtown area with caveats for forgiveness. Application ED2025-0015 proposes a sit- down restaurant concept within the Downtown Program Area and satisfies all eligibility requirements under the adopted Program Guidelines.
The application package was accepted as complete and routed through the required inter -departmental review process. One designated staff member completed the formal scoring in accordance with the adopted criteria, and all other required departments reviewed the scoring and formally concurred on the program scoring sheet. The final score meets the program threshold for funding, and the project is consistent with the City's adopted downtown economic development objectives. The program is structured to protect public investment through a formal agreement and performance -based compliance requirements.
The Downtown Business Attraction and Expansion Program was adopted by City Council in December of 2022 following significant input regarding program design by the Council, the Economic Development Committee and downtown business stakeholders.
The application before Council tonight represents the first proposed use of the Program.
As adopted, the Program puts the City's Finance Director in the role of Program Administrator. It is important to note that, while the adopted Program guidelines and policies are meant to be reasonable and thorough from an industry best practices perspective, municipalities are not typically in the financial loan/grant industry and, as
such, City staff, including the Finance Director as Program Administrator, are not able to apply the same level of underwriting scrutiny to a loan or grant that the commercial lending industry would. Instead, the City Council has created and offered a loan/grant program meant to be used as an incentive to assist the downtown area in growing its commercial diversity. These types of programs carry an inherent level of risk, particularly with respect to restaurant uses. This program is not unlike what many California cities used to successfully fund with redevelopment tax increment monies.
Having noted these risks, Economic Development staff does recommend that the Council approve this application, which meets the review standards within our adopted Program and represents a relatively modest amount of $50,000 for a quality restaurant use at the key location of Beaumont Avenue and 6th Street.
The adopted Program is structured so that that an approved $50,00 loan is forgivable as follows:
Amount of Loan
Up to $25,000
$50,000
Forgiveness Qualification/Reporting Period
Three years of consecutive operations
Five years of consecutive operations
If the borrower fails to meet the required milestones, the loan will begin accruing interest. The interest rate will be equal to the average rate earned by the City's investment in the California Local Investment Funds (LAIF). Any interest that accrues and remains unpaid will be added to the loan principal on a monthly basis and will thereafter accrue interest as part of the principal balance. All outstanding principal and accrued interest will be due and payable in accordance with the repayment terms established in the Note.
Fiscal Impact:
Funding for this project is available under GL Account 100-1235-7096-0000, which currently has $965,710 available.
The cost to prepare this staff report is estimated at $500.
Recommended Action:
Approve the award of a loan/grant under the Downtown Business Attraction and Expansion Program for Application ED2025-0015 in the amount of $50,000 and authorize the City Manager or designee to execute all necessary agreements and related documents.
Attachments:
A. Inter -Departmental Scoring Sheet
B. Program Agreement
Attraction and Expansion Loan Program Rating Sheet: Good Intentions Bar & Restaurant 99I. [JO 1769 abed
CRITERIA
POINTS POSSIBLE
POINTS RECEIVED
FULFILL A NEED WITHIN THE COMMUNITY
10 10
GENERATE INCREASED SALES TAX REVENUE
5 5
CREATE OPPORTUNITIES FOR RECRUITING
NEW BUSINESSES TO FILL COMMERCIAL
VACANCIES
10 10
CREATE OPPORTUNITIES FOR BUSINESS
EXPANSION FOR EXISTING BEAUMONT
BUSINESSES
10 0
ENCOURAGE ADDITIONAL FOOT TRAFFIC
AND SOCIAL ACTIVITY WITHIN THE
PROPOSED BUSINESS LOCATION
10 10
DIVERSIFY THE CITY'S SALES TAX BASE
10 10
THE RISK DETERM INATION ANALYSIS
5 3
TOTAL:
60 48
Reviewer Name:
�a5
Reviewer Signature:
Date:
ZS laOIS
By signin g belo w, I certify that I have reviewed the Attraction and Expansion Loan Program r ating sheet and concur with th e prov ide d rating:
City M anager:
Community Development Director:
Economic Development Manager.
Finance Director: 0413.[. dea th Date: 1/i /a,
Date: I t
Date: 2500V 2'
Date:OZN0c
CITY OF BEAUMONT
DOWNTOWN BUSINESS ATTRACTION AND EXPANSION PROGRAM
FORGIVABLE LOAN AGREEMENT
This DOWNTOWN BUSINESS ATTRACTION AND EXPANSION PROGRAM FORGIVABLE LOAN AGREEMENT ("Agreement") is entered into upon signature ("Effective Date"), by and between the City of Beaumont ("City"), a municipal corporation, and() ood Tikatttps' , a California 'snpzp1T{ctt#0atted at -{I06 (pf" C*. etr-"Borrower"). City and Borrower are at times individually referred to as "Party" and collectively as "Parties" herein.
RECITALS
WHEREAS, Borrower owns and operatesC1 fl-Cn{ter located in the City ("the Business"); and WHEREAS, Borrower requested a forgivable loan from the City through the DOWNTOWN BUSINESS ATTRACTION AND EXPANSION PROGRAM ("Program") by submitting
DOWNTOWN BUSINESS ATTRACTION AND EXPANSION PROGRAM APPLICATION ("Application"), which Program and Application are attached hereto as Exhibit A and Exhibit "B" and incorporated herein by this reference; and
WHEREAS, Borrower represents that Borrower's Business and participation in the Program, complies with all applicable federal laws, regulations and executive orders and Borrower shall comply with all such including payment of state, local and federal taxes at all times during the term of this Agreement; and
WHEREAS, City intends to provide, and Borrower intends to receive, a loan subject to all terms and conditions set forth in the Program and this Agreement.
AGREEMENT
NOW, THEREFORE, based on the forgoing Recitals which are hereby incorporated herein by this reference the Parties agree as follows:
1. LOAN
1.1. Subject to the conditions set forth herein, City agrees to extend a forgivable loan to Borrower in the amount of Fifty Thousand Dollars and Zero Cents ($50,000.00) ("Loan"). Funds to be distributed pursuant to the Loan shall be referred to herein as "Loan Funds?'
1.2. Loan Funds shall be disbursed by City to Borrower in accordance with the Program.
2. TERMS OF THE LOAN
2.1. Interest Rate. The interest rate shall be equal to the average rate earned by the City's investment in the California Local Investment Fund (LAIF)
2.2. Repayment of Loan. Unless the Loan is subject to forbearance or otherwise forgiven in accordance with the conditions set forth in Section 2.S hereof, Borrower shall repay all un-forgiven principal of the Loan in four equal quarter -annual installments.
2.3. Prepayment. Borrower shall have the right to prepay all or any portion of the Loan outstanding at any time without penalty.
2.4. Security. Borrower shall execute a Promissory Note in favor of the City to evidence its obligations with respect to the Loan. The Promissory Note shall be in substantially the form as set forth in Exhibit C hereto. The Loan shall be secured by a personal Guaranty of the Note by the principals of the Business in substantially the form as set forth in Exhibit D attached hereto.
2.5. Loan Forgiveness. City agrees to forbear collection of the Loan so long as the Borrower is in compliance with this Agreement and the Program Guidelines. City and Borrower agree that the Loan shall be forgiven if Borrower complies with Program requirements and continuously operates the Business for:
• Three (3) years from the date of this Agreement for loans up to $25,000 • Five (5) years from the date of this Agreement for loans of $50,000
3. RESTRICTIONS ON USE OF FUNDS
3.1. The Loan Funds are subject to the following expenditure conditions ("Approved Uses"):
3.1.1. The Loan Funds shall be expended solely for the purposes provided in this Agreement, including the Program, and must be expended during the period identified in the Program.
3.1.2. Loan Funds may be used for working capital interior or exterior leasehold improvements or business equipment, furniture, and fixtures. (each hereinafter an "Eligible Expense"); Borrower is responsible to determine whether any expenditures are subject to prevailing wages under Labor Code Section 1720 and shall indemnify, defend and hold harmless from any claims, expenses or judgements resulting from actual or alleged violations of such laws.
3.1.3. The Loan Funds shall not be used for any activity that would violate City, state or federal statutory or decisional law; and
3.2. Borrower further agrees that the Loan Funds will be spent solely for the Approved Uses and that the Loan Funds must be used by Borrower within Five (5) years of the date of this Agreement otherwise, the Loan Funds shall be returned to City, as provided in Section 3.4 below.
3.3. If the City determines Loan Funds have been used for an ineligible expense, as determined in the sole discretion of the City, the Borrower shall repay such amount within ten (10) days of the City notifying the Borrower that the expenses are ineligible.
3.4. The City may inspect Borrower's business and such financial records as may be necessary, in City's judgment, to ensure eligibility prior to release of any funds pursuant to this Agreement.
3.5. Upon 72 hours' notice, Borrower will allow the City to inspect Borrower's business and such financial and other records as may be necessary, in City's judgment, to verify that Loan Funds are being used in accordance with this Agreement and the Program requirements.
4. REPORTING AND ACCOUNTING REQUIREMENTS
4.1. At all times during the term of this Agreement, Borrower shall maintain true, proper, and complete books, records, and accounts (collectively, "Books and Records") in which shall be entered fully and accurately all transactions taken with respect to the expenditure of the Loan Funds.
Borrower shall make available to City copies of such Books and Records within ten (10) calendar days of the City's request.
4.2. Borrower will be responsible for providing documentation, including receipts, to the City that accounts for how the entirety of the Loan Funds received were used to fund Eligible Expenses according to the timelines specified in the Program. Borrower shall provide any additional information or documentation related to the expenditures requested by the City within ten (10) calendar days of City's request.
4.3. City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the right to audit Borrower's accounting procedures and internal controls of Borrower's financial systems as they relate to the Application and use of Loan Funds and to examine any cost, revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representative(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Borrower agrees to fully cooperate with any such audit(s).
4.4. Borrower agrees to exercise prudent fmancial management processes including proper oversight of all assets, budget preparation, and timely reporting including budget -to -actual -comparisons.
4.5. In the event Borrower does not make the above -referenced records available within the City of Beaumont, California, Borrower shall pay all necessary and reasonable expenses incurred by City in conducting any audit at the location where said records and books of account are maintained.
5. USE OF LOAN FUNDS
The Loan Funds shall be used solely by Borrower for the Approved Uses and for no other use.
6. INDEMNIFICATION
6.1. To the fullest extent permitted by law, Borrower shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever, which may arise from or in any manner relate (directly or indirectly) to misrepresentations by Borrower, the expenditure of Loan Funds, the Application, or the Agreement, including the negligent and/or willful acts, errors and/or omissions of the Borrower, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, and anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them. The provisions of this paragraph shall survive the termination of this Agreement.
6.2. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. Any policy limits do not act as a limitation upon the amount of indemnification to be provided by Borrower.
7. BORROWER INDEPENDENCE
In the performance of this Agreement, Borrower, and the agents and employees of Borrower, shall act in an independent capacity and are not officers, employees or agents of the City. The manner and means of performing the Approved Uses are under the control of Borrower, except to the extent they arc limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Borrower or any of Borrower's employees or agents, to be the agents or employees of City. Anything in this Agreement that may appear to give City the right to direct Borrower as to the details of the performance or to exercise a measure of control over Borrower shall mean only that Borrower shall follow the desires of City with respect to the restrictions of the Approved Uses.
8. PROHIBITION AGAINST TRANSFERS
Borrower shall not assign, sublease, hypothecate or transfer this Agreement or any of the obligations to be performed under this Agreement, directly or indirectly, by operation of law or otherwise without prior written consent of City. Any attempt to do so without written consent of City shall be null and void.
9. NOTICES
9.1. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as hereinafter provided
9.2. All notices, demands, requests or approvals from Borrower to City shall be addressed to the City at:
Attn: City Manager
City of Beaumont
550 w. Sixth Street
Beaumont, CA 92223
9.3. All notices, demands, requests or approvals from City to Borrower shall be addressed to Borrower at:
Ann: Pd lc -t' 4.0la) cR. t0t3 pgtty, AtiC- e<1 oll-k ai2223
10. TERMINATION
10.1. Termination by City. The City may terminate this Agreement if it determines that the Borrower has made any misrepresentations that relate in any way to the Application or expenditure of Loan Funds by providing Borrower with three (3) calendar days' notice of termination, in writing. In the event of termination, Borrower shall return any unexpended Loan Funds within ten (10) business days. Termination of this Agreement shall not relieve Borrower of any liability to expend Loan Funds on only Approved Uses, to provide receipts or documentation thereof to City, or otherwise to comply with the substantive terms of this Agreement.
10.2. Specific Performance. Borrower agrees that the City has the legal right, and all necessary conditions have been satisfied, to specifically enforce Borrower's obligations pursuant to this Agreement.
11. STANDARD PROVISIONS
11.1. Recitals. City and Borrower acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement.
11.2. Compliance With all Laws. Borrower shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted and comply with all state and county guidance for re -opening.
11.3. Waiver. A waiver by either Party of any breach, term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character.
11.4. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein.
11.5. Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Application, or any other attachments attached hereto, the terms of this Agreement shall govern.
11.6. Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply.
11.7. Amendments. This Agreement may be modified or amended only by a written document executed by both Borrower and City and approved as to form by the City Attorney.
11.8. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
11.9. Controlling Law And Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Riverside, State of California.
11.10. Equal Opportunity Employment. Borrower represents that it is an equal opportunity employer and it shall not discriminate against any contractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age or any other impermissible basis under law.
11.11. No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorney's fees.
11.12. Taxes. The City and Borrower expressly agree that the Borrower shall be responsible for all taxes that are associated in any way with the receipt and expenditure of the Loan Funds. City makes no representations whatsoever as to the tax consequences, if any. of Borrower's acceptance of Loan Funds.
11.13. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY
Date:
CITY OF BEAUMONT, a California general law city
Date:
ATTEST:
By:
City Clerk
BORROWER:
Name
CEO _
Officer Title
Exhibit A: Borrower's Application
BEAUMONT
BEAUMONT ECONOMIC
DEVELOPMENT DEPT.
55o E 6TH STREET, BEAUMONT. CA
92223
PHONE (951) 769-8527
BEAUMONTCA.GOV
Business Attraction and Expansion Program
Application Form
APPLICANT INFORMATION
FuUName: 1 11I�,IQ1 f iij knce,
Applicant
Address: 1O1 Pc trrm AU(.
City, State, Zip: 1Cat.)mun+. CA
Email : 1 C �1 Y �i can't (,,� Phomne
��.'" 9� II � SAM Nuber. ` "1
Applicant's Interest in Property : Own 14 Rent E1 Other:
Name of Business : C -I b o O f A `""'y' i�4���I b vls. 6011? KCb +0I C'( - al 2223
DATE OF REGISTRATION
/ S;
PROPERTY OWNER INFORMATION
Full Name :
Property Owner
Address :
City, State, Zip :
Email :
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Number:
BUSINESS ELIGIBILITY
Is this a New or Existing Business?
(3ib)89°►-3010
tglNew Business n Existing Business
If Existing Business is selected, please provide the following :
Current Building Square Footage and/or Occupant Load :
Proposed New Square Footage and/or Occupant Load :
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BEAUMONT
BEAUMONT ECONOMIC
DEVELOPMENT DEPT.
550 E 6TH STREET BEAUMONT. CA
92223
PHONE (g51) 769-8527
BEAUMONTCA.GOV
- C L I F. n P N IA --
Business Attraction and Expansion Program
Application Form
If New Business is selected, please indicate the category of the proposed business :
• Definitions of each category are detailed in the Program's Policy.
Premium Casual Restaurants
Sit Down Fine Dining Restaurants
Bars and Cocktail Lounges
Breweries, Distilleries, and SmaU Scale Alcohol Production Entertainment Uses
PROPERTY INFORMATION
Property Addressor location : `� E u 4+1 {- L«'T ' \- CA t c12.22 j Assessor's Parcel Number :
Total Site Acreage :
BuiLding Square Footage :
PROJECT DESCRIPTION
General Description of Business and Proposed improvements :
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Econdev®beau montca.gov
BEAUMONT
BEAUMONT ECONOMIC
DEVELOPMENT DEPT.
550 E 6TH STREET, BEAUMONT. CA
92223
PHONE (953.) 769-8527
BEAUMONTCA.GOV
-CALIFORNIA-
Business Attraction and Incentive Program
Application Form
Requested Loan Amount:
NOTIFICATIONS
150, MD
1. Electronic submittal of applications is allowed.
2. Appointments are required for in -person submittal. Contact the Economic Development Department at (951) 769-8527 for scheduling.
3. Acceptance of the application at the counter does not represent a complete application or guarantee funding.
ACKNOWLEDGEMENTS
I understand that this funding request is for a forgivable Loan, and repayment with interest wilt be requlrkd in the event my business ceases prior to the required Loan term.
I hereby acknowledge and understand that Collateral, when available in any form, may be requested by the C"tv.6f Beaumont
I hereby acknowledge that I will obtain plan approval and any applicable Planning and Building Permits from`tlfe City of Beaumont and will comply with all city policies and ordinances including business permit requirements.
I agree that I shall provide any and all items required in Section VIII "Risk Assessment" upon request of ty of Beaumont
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BEAUMONT
BEAUMONT ECONOMIC
DEVELOPMENT DEPT.
550 E 6TH STREET BEAUMONT CA
92223
PHONE t95i1769-8527
BEAUMONTCA GOV
Business Attraction and Expansion Program
Application Form
AUTHORIZATIONS
I hereby acknowledge that I have read, understand, and if I am awarded funding under this program, will comply with all the requirements of the Business Incentive Loan Policy.
Print Applicant Name :
Applicant Signature :
Date :
Print Property Owner Name
Property Ow ieet signature :
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Exhibit B: Program Guidelines
CITY OF BEAUMONT
ECONOMIC DEVELOPMENT DEPARTMENT
550 EAST 6th STREET
BEAUMONT, CALIFORNIA 92223
(951) 769-8527
Downtown Business Attraction and
Expansion Program
PROGRAM GUIDELINES & POLICIES
CITY OF BEAUMONT
DOWNTOWN BUSINESS INCENTIVE
LOAN POLICY
TABLE OF CONTENTS
I. INTRODUCTION 1
II. PURPOSE 1
III. PROHIBITION AGAINST CHANGE IN OWNERSHIP, MANAGEMENT AND CONTROL OF PARTICIPANT 1
IV. POTENTIAL LOAN FORGIVENESS 2
V. PARTICIPATION PERIOD REQUIRED 2
VI. ELIGIBLE BUSINESSES 2
VII. ELIGIBLE ACTIVITIES 3
VIII. PROPOSAL RATING 3
IX. ADMINISTRATION 4
X. LOAN APPROVAL 4
XI. FUNDING AVAILABILITY 5
XII. APPLICATION PERIOD 5
XIII. RISK ASSESSMENT 5
XIV. PRICING AND TERMS 8
XV. COLLATERAL 8
XVI. CESSATION OF BUSINESS 8
XVII. GUARANTORS 9
XVIII. PROBLEM CREDITS 9
XIX. ACTION OCCURRENCES 9
XX. COLLECTION ACTION 10
XXI. NON -ACCRUAL LOAN STATUS 10
XXII. COLLATERAL APPRAISALS 10
XXIII. FINANCIAL INFORMATION REQUIRED 11
XXIV. FINANCIAL INQUIRIES 11
XXV. INSURANCE 11
XXVI. AMENDMENTS 12
CITY OF BEAUMONT
DOWNTOWN BUSINESS INCENTIVE
LOAN POLICY
I. INTRODUCTION
This written policy is intended as a guide in making credit decisions regarding applications for Business Incentive loan projects for the City of Beaumont (City). This policy is written to allow flexibility as credit needs change. It should be used as a tool to provide some consistency for project selection. Projects will be considered for funding on a case -by -case basis, until available funding is exhausted. Only those projects falling within the scope of the guidelines will be considered for funding. Depending on funding amount as provided below, successful applicants will be determined by the City Council.
II. PURPOSE
This policy provides financial assistance to support economic development and business retention and expansion goals with the Downtown Beaumont Area. The goals are structured to promote Downtown Beaumont as a positive place for quality business, promote business expansion and attraction to enhance local economic growth, and ensure that government regulations promote a favorable business climate with the intent of furthering the health, safety and welfare of the residents of Beaumont.
This loan program is not to be equated with a loan program available through banking or financial institutions. As a public lender, the source of funds is interested as much in the social benefits as return on investment, and preservation of capital. The retum to Beaumont is multiple: increased investment in the business community, additional jobs, increased foot traffic and business activity, increased tax revenues and quality of life for our residents.
The purpose of the economic development assistance is to:
1. Fulfill a need within the community.
2. Create jobs within the community.
3. Generate increased sales tax revenue.
4. Create opportunities for business expansion for existing Beaumont businesses.
5. Create opportunities for recruiting new businesses.
6. Encourage additional foot traffic and social activity within the Downtown Area.
7. Diversify the City's sales tax base.
III. PROHIBITION AGAINST CHANGE IN OWNERSHIP, MANAGEMENT AND
CONTROL OF PARTICIPANT
The qualifications and identity of Participant in this program are of particular concern to City. It is because of those qualifications and identity that City will enter into an Agreement with Participant. No voluntary or involuntary successor in interest of Participant shall acquire any rights or powers under this program except as expressly set forth within executed documents under this program. A change in ownership, 1
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DOWNTOWN BUSINESS INCENTIVE
LOAN POLICY
management and control shall be subject to the approval of City, but such approval shall not be unreasonably withheld.
Participant shall not assign all or any part of any Agreements or Notes under this program without the prior written approval of City, which approval shall not be unreasonably withheld.
IV. POTENTIAL LOAN FORGIVENESS
Participants in this program will be required to comply with the terms of the loan and provide the goods and services as promised for a specified minimum amount of time, as outlined in Section V below. In meeting this requirement and compliance with the program, funds loaned may be forgiven at the end of that period. If the Participant does not comply with all of the terms of the loan and the program, the loan will not be forgiven and must be repaid.
V. PARTICIPATION PERIOD REQUIRED
The required period of time for program compliance and fund forgiveness/repayment depends on the amount loaned. The following schedule applies:
Amount of Loan Forgiveness/Reporting Period
Up to $25,000 3 years
$50,000 ...5 years
VI. ELIGIBLE BUSINESSES
Only commercial properties located within the Downtown Incentive Area Program Boundary area are eligible to apply. CLICK HERE for the map showing the program boundary or access it via the City website beaumontca.gov/downtown.
The following types of businesses are eligible for a business incentive loan:
• Proposed sales tax generating businesses that are new to Beaumont • Existing sales tax generating businesses in Beaumont wanting to expand their gross floor area (square footage) and/or occupant load by 50% or more.
• For applicants seeking a loan under this program, the restaurant/business must fall within one of the five categories below. The City shall determine, in its sole discretion, whether a business falls within one of these five categories:
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DOWNTOWN BUSINESS INCENTIVE
LOAN POLICY
i.) Premium Casual Restaurants (upscale, fast casual dining, high quality food, elevated atmosphere but more casual
than fine dining, seating areas indoors or outdoors)
ii.) Sit Down Fine Dining Restaurants (upscale dining, high quality food, wine list, formal atmosphere, sizable
seating area indoors and bonus for outdoor seating)
iii.) Bars and Cocktail Lounges (upscale and elevated
atmosphere, premium offerings, activities and events)
iv.) Breweries, Distilleries, small scale alcohol production (manufacturing of craft beer, spirits, or wine, product sold for onsite and offsite consumption, retail
component with elevated atmosphere)
v.) Entertainment Uses. Live entertainment, music stores, bookstores, art house or art showcases, technology
focused and gadgetry businesses such as high-tech
video games or virtual realty, etc.
• Existing businesses that are unable to meet the expansion percentage (50%) requirements above, due to unique circumstances or site constraints, may still apply if they feel they can still meet the program objectives below (section VIII) and earn a qualifying score under the established rating system.
VII. ELIGIBLE ACTIVITIES
Within these categories funding can be used for the following types of activities:
• Interior and/or exterior leasehold improvements
• Purchase of business equipment, fumiture, and fixtures • Working Capital
The applicant is responsible for checking and working with the city to determine whether the use of funding would trigger the requirement to pay prevailing wages to workers.
VIII. PROPOSAL RATING
Given the limited amount of funding available annually, loan proposals submitted by applicants will be reviewed and graded. Eligible applicants loan proposals will be weighted using the following rating system:
1. Fulfill a need within the community. 10 pts
2. Generate increased sales tax revenue. 5 pts
3. Create opportunities for recruiting new businesses to fill commercial vacancies. 10 pts
4. Create opportunities for business expansion for existing Beaumont businesses. 10 pts
5. Encourage additional foot traffic and social activity within the proposed business 10 pts location.
6. Diversify the City's sales tax base 10 pts
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DOWNTOWN BUSINESS INCENTIVE
LOAN POLICY
7. The risk determination analysis (see Section XIII).
Total:
5 pts
60 pts
Funding decisions will be made based on the rating of the proposal, the number of other proposals and their ratings, and the availability of funding. The date of submission of a proposal as compared to other submissions is not a factor (e.g., funding is not "first come first served"). However, there are limitations on the amount of funding available.
IX. ADMINISTRATION
A. Staff Recommendations
In order to ensure timely review of applications, the Program Administrator will establish and internal review process whereby the review and recommendation of the City Manager, Community Development Director, Economic Development Manager, and Finance Director (Program Administrator) and other staff members as determined by the Program Administrator will be solicited. The internal review process shall result in the Program Administrator making a recommendation of approval, approval subject to conditions or denial based upon the rating system in section VII of this policy. The Program Administrator will also solicit from staff review and recommend approval, conditional approval or denial of requests from approved borrowers for payment deferrals, substitution or release of collateral, waiver or release of covenants, and amendments to loan documents all of which shall be subject to final action by the City Council.
B. Program Administrator
The Finance Director will serve as the Program Administrator. The Program Administrator will market, solicit, review, and process potential borrowers' applications for credit. The Program Administrator will decline or refer out to other departments any applicant who clearly does not qualify under eligibility standards as set forth by the policy. The Program Administrator will recommend new credit, payment deferrals, release or substitution of collateral, waivers/amendments to loan covenants and exceptions to loan policy to the City.
X. LOAN APPROVAL
Approval of all Loans shall require City Council action. The City Council retains the discretion to approve, approve with conditions or reject applications. 4
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XI. FUNDING AVAILABILITY
The business incentive loan program is funded on a fiscal year basis. The City of Beaumont fiscal year begins on July 1 and ends on June 30 of the following year.
Limited funds are available in each fiscal year when the program is funded.
Applications may be rejected if funding is exhausted.
XII. APPLICATION PERIOD
A. Submittal
Applications will be accepted on a continuous basis.
B. Processing
Applications will be processed when funds are available. The City has no obligation to process applications if all available funding has been exhausted.
XIII. RISK ASSESSMENT
All loans are subject to analysis to determine risk. Substantial evidence to support all decisions shall be required and such evidence shall be maintained by the Program Director and submitted to the City Council during the final review and approval process.
Loans will be awarded only to projects, which demonstrate that the service provided is commensurate with the risks incurred. In return for the public moneys provided, the businesses is expected to generate increased investment, jobs, business activity, and thus increased tax revenues.
A. General Credit Criteria
The business loan applications will be analyzed for the following criteria, based on criteria specified by the U.S. Department of Housing and Urban Development, Office of Community Planning and Development, and by the Small Business Administration:
1) Ability to repay in case of default or termination of business. 2) Balance Sheet Analysis
Balance sheet must be sound before the loan is made.
Historical earnings and cash flow records, from verifiable sources as determined by the City, to ensure sufficient repayment of all requested credit, and to provide the owner(s) with a reasonable level of personal income to satisfy personal obligations. Typically, a borrower will have been profitable during the most recently completed year and will maintain a cash flow coverage ratio of 5
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1:1 (defined as earnings before debt service, interest and taxes divided by debt service), with sufficient collateral. The ratio would be 2:1 without collateral. If partial collateral is pledged, the ratio may be prorated downward. 3) Collateral
Collateral, when available in any form, may be requested by the City. Collateral will be pledged commensurate with the amount of requested credit, as well as a security interest in newly purchased assets, or those purchased with loan funds. If the project cannot repay the loan from cash flow, the City will collect payment by liquidating the asset and satisfying the specific lien securing the property. A letter of credit or bond may be accepted in lieu of collateral. Loan to value for collateral should be 75%.
4) Commitment
Personal and corporate guarantees may be required. The borrower should sign personally for the loan.
5) Management Experience
The management team must have experience in all areas of running the business: sales, finance, operations, personnel, etc. The management team includes the principals, directors, senior management and consultants.
The management team should have direct experience in these areas or have comparable business skills which can be transferred.
6) Business Plan
The business plan will help identify worthy ventures. The monthly cash flow statement for the first year is especially important.
7) Character
The owners and management should have favorable credit histories, a reputation for treating customers fairly and without discrimination, no bankruptcy filing in the past five years, and a criminal record free from felony convictions and convictions of crimes involving dishonesty or moral turpitude.
Good character and creditworthiness will be determined by credit reports, payment history with verified vendors, personal interview, or other means as determined.
All of the above criteria are important, and the absence of any one may be sufficient to deny a loan request.
B. Undesirable Credit Applications/Borrowers/Guarantors 6
CITY OF BEAUMONT
DOWNTOWN BUSINESS INCENTIVE
LOAN POLICY
Using the guidelines for the Small Business Administration and the Department of Housing and Urban Development, the following are undesirable or unacceptable without mitigating circumstances acceptable to the City:
1) Applications for funding that would substantially reduce the amount of non - Federal support for the activity available in other recognized, reasonable loan programs available in the target areas;
2) Requests for credit to repay existing creditors are prohibited. 3) Funds used to repay debt to applicant owner(s), partners, stockholders are prohibited.
4) Requests for funding for businesses which do not meet the criteria specified in Section XIII A through C.
5) Non-profit organizations, as designated by Charter/Bylaws, unless designated as approved Community Based Development Organizations (CBDO).
6) Lack of profitable operations, as demonstrated by sources acceptable to City.
7) Loans to restricted membership or discriminatory groups/organizations. 8) Loans to uses with access restrictions based on age. 9) Lack of sufficient equity/highly leveraged situations as determined by City. 10) Personal or business bankruptcy, or prior business failure without sufficient, documented information to mitigate, as determined by City. 11) Poor personal or business credit as evidenced by many derogatory items including public record items, tax liens, judgments, or excessive existing credit as determined by City.
13) Those unable to provide proof of citizenship or legal residency. 14) Felony convictions, dishonorable discharge or "Bad Conduct" discharge from military service (each situation will be independently evaluated); 15) Business active or associated with in any unlawful activity.
C. Exceptions to Loan Policy
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LOAN POLICY
If a project does not fall within the guidelines listed above, but is of such special character that it will substantially further the goals identified in Section II above the Program Administrator may submit to the City Council to consider for funding.
XIV. PRICING AND TERMS
Considerations of loan product pricing extended to borrowers will be based on a rate equal to the average rate eamed by the City's investment in the Califomia Local Investment Fund (LAIF) (LAIF's Annual Retums: https://www.treasurer.ca.gov/pmia- Iaif/historical/annual.asp), but in no event to exceed 10 per cent (10%) per annum. Interest which accrues and is unpaid shall be added to principal on a monthly basis and thereafter bear interest as if it were part of principal. Principal and all accrued and unpaid interest shall be due and payable not later than two years from the date the agreement is approved, as specified in the Note. Additional terms extended to borrowers will be based on the amount of risk involved.
XV. COLLATERAL
Collateral is recommended for all loans. Real property security is preferred but not required under appropriate circumstances. Property such as equipment will be considered as collateral. It is intended that any available collateral from the borrower and/or guarantor(s) will be required, as well as a first lien position on any assets purchased with any loan funds. Liens on real property will be required at the discretion of the City. It will be the policy that all collateral required for loan approval will be of material value. Caution will be used whenever taking a junior lien position on collateral where there is a substantial senior lien. It will be a determination of the City whether to waive a collateral position when available.
In all cases, a UCC-1 and security agreement will be taken against all business assets.
XVI. CESSATION OF BUSINESS
If Participant should cease business at the site, participant will be required to repay its obligations to City as provided in the Note which shall be executed when Agreement is signed. The term "cease business" shall mean when the site is no longer used as the principal place of business for Participant's business for an aggregate period of ten days or more, as determined by City. Participant shall give City written notice not less than thirty (30) days prior to cessation of business. If Participant should cease business at the site, Participant shall pay to the City, in cash, within fifteen (15) days of the Participant's receipt of written notification from the City the balance due on the Note. If the Participant moves the business to a new location within Beaumont upon written request of the Participant, the City may elect to not treat this relocation as a cessation of business. 8
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XVII. GUARANTORS
The City will generally follow the rules of the Small Business Administration as to qualification of guarantors:
A. Individuals involved in active management with any ownership equity in borrower must guaranty the loan.
B. Shareholders/owners of 20% or more equity in borrower must guaranty the loan regardless of active involvement in management.
Guarantees may be secured or unsecured as determined by the City.
XVIII. PROBLEM CREDITS
While it is the intent of this policy to be sensitive to the borrower's financial needs, and the intent to match any repayment schedule to the borrower's ability to repay, it is inevitable that there will be delinquencies and defaults. It is the responsibility of the Program Administrator to monitor all loan payments, especially those that are in arrears.
It will be the stated policy that upon determination of a "problem credit" the City will pursue any and all remedies allowed by regulation or law in a professional, aggressive, and consistent manner until some resolution is reached.
XIX. ACTION OCCURRENCES
The following occurrences will warrant action on the part of the Program Administrator and/or City Council.
A. Delinquent payment — whenever the terms of the Promissory Note are not being met in a timely manner (delinquent by more than 30 days or repeat delinquencies).
B. Violation of Loan Covenants — whenever the terms of the Loan Agreement are not being met in a timely fashion. The severity and immediacy of action is dependent on the type of breach; some covenants are more serious and lead to a default, while others less severe can sometimes be managed at the discretion of the Program Administrator.
C. Receipt of bankruptcy notice relative to borrower or guarantor(s).
D. Filing of a "Notice of Default" by another lienholder on real property; E. Legal Service, such as Writs of Attachment, Tax Liens, Subpoenas for records;
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F. Death of borrower or guarantor;
G. Notice of significant legal action against borrower or guarantor; H. Returned mail from borrower's address by Post Office; I. "Skip Trace" inquiry from another creditor.
XX. COLLECTION ACTION
It is important to be clear and specific about any breach of the Note, Loan Agreement, or any of the above -mentioned occurrences. The circumstances of a particular situation will often dictate the method to use in taking corrective action.
Telephone contact with the borrower/guarantor is the most expedient and cost effective; however, some cases demand more formal notification such as "Demand Letters", Legal Action, and Foreclosure. Personal site visits and conversations with the borrower are warranted at the discretion of the Program Administrator.
XXI. NON -ACCRUAL LOAN STATUS
Credits will be moved to a non -accrual status at the 90 -day delinquency point unless otherwise directed by the City Council. At this point, many of the above- mentioned "Action Steps" should have been started; a collection plan, if applicable, should be in process at this point. Rewriting the entire Note in an effort to provide relief to the borrower should be considered after a detailed analysis of the financial condition of the borrower and his/her/its prospects for timely payments in the future. In any case, the City Council must approve a re -structured Note, depending on the dollar value of the re -structured Note.
XXII. COLLATERAL APPRAISALS
Collateral taken as security for any type of credit should be appraised if it has any significant value. In most cases, real property will be the collateral that is most needed for a third -party appraisal (the City may accept reliable "drive -by" and short -form appraisals).
Since the City is not under the scrutiny of Federal and State Banking Regulators, there is more flexibility as to the extent of any appraisal and in which circumstances. It is the stated policy that some reliable form of valuation be used to determine the value of the equity of any collateral taken by the City, remembering that the cost and time of obtaining such appraisals may have an adverse affect on the borrower considering the size of the credit involved. The City shall use its discretion in all collateral matters, unless otherwise dictated by the City Council.
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