Regular Meeting of the Calimesa City Council
Monday, November 7, 2022
CALL TO ORDER
ROLL CALL: MAYOR DAVIS, MAYOR PRO TEM CERVANTEZ, COUNCIL MEMBER DUVALL, COUNCIL MEMBER HEWITT AND COUNCIL MEMBER MOLINA.
STAFF: CITY MANAGER JOHNSON, CITY ATTORNEY BARROW, CITY CLERK GERDES,
FINANCE DIRECTOR REID, PLANNING DIRECTOR LUCIA, PUBLIC WORKS
ASSOCIATE ENGINEER SHAKIR, CITY ENGINEER THORNTON, FIRE CHIEF O’CONNELL AND SHERIFF CAPTAIN SALAS.
PLEDGE OF ALLEGIANCE
COMMUNICATIONS FROM THE PUBLIC
Anyone wishing to address the Council on any item within the Council’s jurisdiction that is not on the agenda may do so at this time. This is not a time for City Council discussion of non-agenda items. After receiving public comments, Council Members, or staff, after being recognized by the Mayor, may briefly respond to statements made by the public or questions posed by the public. In addition, Council Members may ask questions for clarification or make a referral to staff for factual information to be reported back to the Council at a later meeting.
Regular Meeting of the Calimesa City Council
Meeting Agenda
Monday, November 7, 2022 – 6:00 p.m.
Norton Younglove Multipurpose Senior Center
908 Park Avenue, Calimesa, CA 92320
William Davis, Mayor Jeff Cervantez, Mayor Pro Tem
Wynona Duvall, Council Member Wendy Hewitt, Council Member Linda Molina, Council Member Bonnie Johnson, City Manager Quinn Barrow, City Attorney The Calimesa City Council will be conducting this meeting in the Norton Younglove Senior Center. Members of the public may participate in this meeting in one of two ways:
1) In person at the Norton Younglove Senior Center, 908 Park Avenue, Calimesa, CA 92320. 2) By viewing the meeting on Facebook Live, beginning at 6:00 p.m. at https://www.facebook.com/cityof.calimesa Submission of Public Comments: If attending the meeting, public comment will be allowed by completing a speaker slip and providing it to the City Clerk at the meeting. Please observe a time limit of three (3) minutes when giving your presentation. When called upon, please step forward to the microphone, state your name for the record, whom you represent and any statement you wish to make. Please be advised that you may not defer your three (3) minutes to another speaker. Otherwise, public comment will be accepted via email. Please send comments via email to the Calimesa City Clerk at [email protected]. Identify public comment or the specific agenda item you wish to comment on in your email’s subject line. You may submit comments on any agenda item. Emailed comments must be submitted by 5:30 p.m. on Monday, November 7, 2022 and will be read into the record by the City Clerk. Electronic comments on agenda items may only be submitted via email and comments via text and social media (Facebook, Twitter, etc.) will not be accepted.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office, (909) 795-9801. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Any public writings distributed by the City to at least a majority of the Council Members regarding any item on this regular meeting agenda will be made available at the public counter at City Hall located at 908 Park Avenue, Calimesa, CA 92320.
Regular Meeting of the Calimesa City Council
Monday, November 7, 2022
APPROVAL OF THE AGENDA
RECOMMENDATION: Move to approve the agenda
Motion________________________ Second_______________________ Vote___________________________ CONSENT CALENDAR (Items 1 – 10)
The following Consent Calendar items are expected to be routine and non-controversial. Council will act upon them at one time without discussion. Any Council Member or staff member may request removal of an item from the Consent Calendar for discussion.
1. APPROVAL OF CITY COUNCIL ACTION MINUTES.
a) City Council action minutes of a regular meeting of October 17, 2022
2. RECEIVE AND FILE CITY COMMISSION & BOARD MINUTES.
a) Library Commission action minutes of October 4, 2022 regular meeting.
3. APPROVAL OF WARRANT REGISTERS.
a) Check Register Report with a total of $1,374,820.38 (Check Nos. 39361 to 39460) b) October 27, 2022 Payroll of $85,468.49
November 1, 2022 Council Payroll of $1,673.25
4. WAIVE FULL READING OF ANY PROPOSED ORDINANCES ON THE AGENDA.
This permits reading the title only in lieu of reciting the entire text of the Ordinances. This does not take policy action on the Ordinances or approve or disapprove any Ordinances on the agenda.
5. TREASURER’S REPORT FOR THE MONTH ENDED SEPTEMBER 30, 2022 RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended September 30, 2022.
6. STATEMENT OF INVESTMENT POLICY.
RECOMMENDATION: That the City Council adopt Resolution No. 2022-61 a Resolution of the City Council of the City of Calimesa, California adopting a Statement of Investment Policy for Fiscal Year 2022-23.
7. ANNUAL REPORT AND FIVE-YEAR REPORT REGARDING DEVELOPMENT IMPACT FEES RECOMMENDATION: That the City Council receive and file this Annual Report regarding developer impact fees (hereinafter referred to as DIF) and make the findings listed below.
8. TRACT MAP NO 26811 SINGLETON HEIGHTS: RELEASE OF FAITHFUL PERFORMANCE BOND.
RECOMMENDATION: That the City Council authorize City staff to release the Warranty Bonds for Tract Map No. 26811 – Singleton Heights.
9. PARCEL MAP 33105: RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT EASEMENT.
RECOMMENDATION: That the City Council authorize Quitclaim Deed Execution Conveying an Easement in the Summerwind Ranch Development to Riverside County Flood Control and Water Conservation District.
Regular Meeting of the Calimesa City Council
Monday, November 7, 2022
CONSENT CALENDAR (Continued)
10. PURCHASE OF GENERAL PURPOSE UTILITY VEHICLE
RECOMMENDATION: That the City Council authorize the purchase of a Kubota general-purpose utility vehicle and adopt Resolution No. 2022-62, a. Resolution of the City Council of the City of Calimesa California, amending the FY 2022-23 budget to include an appropriation from the general fund for the purchase of a Kubota general-purpose utility vehicle
POLICE CHIEF COMMENTS & REPORTS
FIRE CHIEF COMMENTS & REPORTS
MAYOR & COUNCIL MEMBER REPORTING OF COUNTY & REGIONAL MEETINGS This is the time for comments, announcements and/or reports on meetings attended at public expense as required by AB 1234.
PUBLIC HEARINGS
The order of business for the Public Hearing shall be:
Open Public Hearing
Staff Presentation
Applicant/Representative Presentation
Public Testimony
Applicant Rebuttal (if necessary)
Public Testimony Closed
Close Public Hearing
Council Discussion
Council Motion and Vote
Speakers are encouraged to be brief and remain within the established time limit of three (3) minutes per speaker. Once the public hearing has been closed, no further testimony will be taken.
11. PUBLIC HEARING – TO CONSIDER APPEAL OF THE PLANNING COMMISSION’S CONDITIONS OF APPROVAL FOR DEVELOPMENT PLAN REVIEW 22-03 – APPROVAL TO RELOCATE SOUTH MESA WATER COMPANY WELL NO. 11 AND REPLACE APPROXIMATELY 24,533 LINEAR FEET OF WATER MAIN LINES AND RELATED
APPURTENANCES
RECOMMENDATION: That the City Council continue the public hearing to the meeting of November 21, 2022 to allow the parties to continue discussing the matter.
12. PUBLIC HEARING – ANNEXATION OF CERTAIN OAK VALLEY TOWN CENTER DEVELOPMENT TO (A) CITY OF CALIMESA COMMUNITY FACILITIES DISTRICT NO. 2018- 1 (SUMMERWIND TRAILS) AS ANNEXATION NO. 1 (ADDING IMPROVEMENT AREA NO. 2) AND (B) CITY OF CALIMESA PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES) AS ANNEXATION AREA NO. 3.
RECOMMENDATION: That the City Council:
With respect to CFD 2018-1 Annexation No. 1:
1. Hold a public hearing for CFD No. 2018-1 (Summerwind Trails) Improvement Area No. 2.
Regular Meeting of the Calimesa City Council
Monday, November 7, 2022
2. Adopt Resolution 2022-65, a Resolution Determining Validity of Prior Proceedings and Calling an Election for Annexation No. 1 to be Designated as Improvement Area No. 2.
3. Conduct election for annexation of Improvement Area No. 2 to CFD No. 2018-1 (Summerwind Trails).
4. Adopt Resolution 2022-66, a Resolution Canvassing Results of Election to annex Improvement Area No. 2 to CFD No. 2018-1 (Summerwind Trails).
5. Adopt Resolution 2022-67, a Resolution Annexing Improvement Area No. 2 into CFD No. 2018-1.
6. Introduce Ordinance 385, an Ordinance Levying Special Tax for Improvement Area No. 2 and waive further reading.
With respect to CFD No. 1 Annexation Area No. 3:
7. Hold a public hearing for CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) Annexation Area No. 3.
8. Adopt Resolution 2022-68, a Resolution Determining Validity of Prior Proceedings and Calling an Election for Annexation Area No. 3.
9. Conduct election for annexation of Annexation Area No. 3 to CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services).
10. Adopt Resolution 2022-69, a Resolution Canvassing Results of Election to annex Annexation Area No. 3 to CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services).
11. Adopt Resolution 2022-70, a Resolution Annexing Annexation Area No. 3 into CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services).
12. Introduce Ordinance 386, an Ordinance Levying Special Tax for Annexation Area No. 3 and waive further reading.
BUSINESS ITEMS
13. CITY OF CALIMESA – RIVERSIDE COUNTY ADVANCED LIFE SUPPORT FIRST
RESPONDER PROGRAM OPERATING AGREEMENT
RECOMMENDATION: That the City Council adopt Resolution No. 2022-63, A Resolution of the City Council of the City of Calimesa approving an agreement between the City and Riverside County Emergency Medical Services Authority Advanced Life Support First Responder Program Operating Agreement.
14. APPOINTMENT WILLIAM M. KOLBOW AS CITY MANAGER EFFECTIVE NOVEMBER 28, 2022 AND APPROVAL OF EMPLOYMENT AGREEMENT BETWEEN WILLIAM M. KOLBOW AND THE CITY OF CALIMESA.
RECOMMENDATION: That the City Council:
1. Approve Resolution No. 2022-64 appointing William M. Kolbow as City Manager, approving the attached Employment Agreement, amending the City’s salary schedule, and directing the Mayor to execute the Employment Agreement on behalf of the City.
2. Approve in concept the City Manager Transition Plan contained in this staff report and direct staff to return at the next Council meeting with the necessary documents and recommendations for implementation.
Regular Meeting of the Calimesa City Council
Monday, November 7, 2022
COUNCIL MEMBERS’ COMMENTS & REPORTS
This is the time for additional general comments, announcements, reports on meetings attended at public expense as required by AB 1234, requests of staff, and other issues of concern to Council Members may be presented briefly at this time. The Council may not legally take action on any item presented at this time other than to direct staff to investigate a complaint or place an item on a future agenda unless (1) by a majority vote, the Council determines that an emergency situation exists, as defined by Government Code § 54956.5 or (2) by a four-fifths vote, the Council determines that there is a need for immediate action and the need for action arose subsequent to the agenda being posted as required by Government Code § 54954.2(b).
CITY MANAGER COMMENTS & REPORTS
CLOSED SESSION ITEMS
A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957
Title: City Manager
ADJOURNMENT
Adjourn to the Regular Meeting of the City Council on Monday, November 21, 2022 at 6:00 p.m.
City Council Meeting
Agenda Report
Agenda Item No. 1
SUBJECT: APPROVAL OF CITY COUNCIL MEETING MINUTES
MEETING DATE: November 7, 2022
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the Regular City Council Meeting of October 17, 2022.
ATTACHMENTS:
Attachment A: City Council action minutes of October 17, 2022 regular meeting.
City Council Meeting
Agenda Report
Agenda Item No. 2
SUBJECT: APPROVAL OF COMMISSION MEETING MINUTES
MEETING DATE: November 7, 2022
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the October 4, 2022 Library Commission regular meeting.
ATTACHMENTS:
Attachment A: Library Commission action minutes of October 4, 2022 regular meeting.
City Council Meeting
Agenda Report
Agenda Item No. 3
SUBJECT: APPROVAL OF WARRANT REGISTER
MEETING DATE: November 7, 2022
PREPARED BY: Celeste Reid, Finance Director
RECOMMENDATION: That the City Council approve the Warrant Register as presented.
SUMMARY: The attached Check Register Report for City Council’s approval is as follows:
a) Check Register Report with a total of $1,374,820.38 (Check Nos. 39361-39460) b) October 27, 2022 Payroll of $85,468.49
November 1, 2022 Council Payroll of $1,673.25
City Council Meeting
Agenda Report
Agenda Item No. 4
SUBJECT: WAIVE FULL READING OF ANY PROPOSED ORDINANCES ON
THE AGENDA
MEETING DATE: November 7, 2022
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk This permits reading the title only in lieu of reciting the entire text of the ordinances. This does not take
policy action on the Ordinances or approve or
disapprove any Ordinances on the agenda.
City Council Meeting
Agenda Report
Agenda Item No. 5
SUBJECT: TREASURER’S REPORT FOR THE MONTH ENDED
SEPTEMBER 30, 2022
MEETING DATE: November 7, 2022
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended September 30, 2022.
BACKGROUND: Pursuant to Council Resolution No. 2021-51 approved on November 15, 2021, the monthly Treasurer’s Report is hereby submitted. The report complies with the aforementioned Council resolution, as well as Government Code Section 53646.
DISCUSSION: The format of the investment report has been updated to provide for additional information as detailed in the Investment Policy submitted for the Council’s consideration on the consent calendar for November 7, 2022. Additional information includes the reporting of realized and unrealized gain and loss activity for the respective month of reporting. Generally, unrealized gains and losses are the day to day increases or decreases in an assets value. Until an investment is sold for cash, the gains or losses remain unrealized. Realized gains and losses reflect the results of selling of investments and are the difference between the cost basis and the market value as of the transaction date of sale. The City will continually have reportable changes of unrealized gain and loss activity between cost basis and market value as underlying investments are subject to the variability of market conditions. Staff evaluates investment options on an ongoing basis to ensure reasonable access to funds and reserves are set aside to maintain availability of cash position for general operations and capital assets.
Significant transactions during the month include payments of $754,632.76 of Community Facility District (CFD) fund debt service payments.
FISCAL IMPACT: Revenue was recognized for interest and dividend earnings of $3,424.88 for CFD and Successor Agency funds.
ATTACHMENTS:
Attachment A: Treasurer’s Report for the month ended September 30, 2022.
City Council Meeting
Agenda Report
Agenda Item No. 6
SUBJECT: STATEMENT OF INVESTMENT POLICY
MEETING DATE: November 7, 2022
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council adopt Resolution No. 2022-61 a Resolution of the City Council of the City of Calimesa, California adopting a Statement of Investment Policy for Fiscal Year 2022-23.
BACKGROUND: Section 53646 of the Government Code of the State of California authorizes the Treasurer or the Chief Financial Officer of each local agency to annually render to the legislative body of the agency a Statement of Investment Policy at a public meeting.
The City’s current policy was adopted on November 15, 2021 and is to be updated annually, including renewal of the City Council’s annual delegation of investment authority to the City Treasurer. Currently, the Finance Director serves as the City Treasurer. The Investment Policy is reviewed annually to ensure the policy meets the City’s needs and in compliance with all legal and government code requirements.
The City’s investments are invested with the Local Agency Investment Fund (LAIF). The LAIF balance as of October 19, 2022 is approximately $29 million. The maximum that can be invested in LAIF by the City is $75 million. Staff evaluates investment options on an ongoing basis to ensure reasonable access to funds and reserves are set aside to maintain availability of cash position for general operations and capital projects.
FISCAL IMPACT: The investment instruments allowed in this policy are consistent with the City’s current investment in the Local Agency Investment Fund (LAIF) and meets the stated investment policy objectives of safety, liquidity and return.
ATTACHMENTS:
Attachment A: Resolution No. 2022-61
Attachment B: Annual Investment Policy
RESOLUTION NO. 2022-61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIMESA, CALIFORNIA ADOPTING A STATEMENT OF
INVESTMENT POLICY FOR THE FISCAL YEAR 2022-23
WHEREAS, Government Code Section 53646(a)(2) requires a Statement of Investment Policy rendered annually to the City Council for consideration during a public meeting, and
WHEREAS, the recommended Investment Policy is attached and reflects reporting schedules in compliance Government Code Section 53646(b)(1).
WHEREAS, Government Code Section 53607 authorizes the City Council to annually delegate to the City Treasurer the authority to invest or reinvest funds of the City and its related entities, and to sell and exchange securities so purchased; and
WHEREAS, the City Council desires to renew the delegation of such investment authority to the City Treasurer.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CALIMESA, AS FOLLOWS:
Section 1. The Statement of Investment Policy attached as Exhibit “A” is hereby adopted.
Section 2. Pursuant to Government Code Section 53607, the City Council, on behalf of the City and its related entities for which the City Councilmembers serve as the governing body, hereby renews for one year its delegation to the City Treasurer the authority to invest and reinvest funds of the City and its related entities, including without limitation the authority to sell and exchange securities.
PASSED, APPROVED AND ADOPTED this 7th day of November, 2022. ________________________________
WILLIAM DAVIS, MAYOR
ATTEST:
_________________________________________
DARLENE GERDES, CITY CLERK
Attachment 6A
CITY OF CALIMESA
STATEMENT OF
INVESTMENT POLICY
Updated November 7, 2022
PREPARED BY THE CITY FINANCE DEPARTMENT
Bonnie Johnson, City Manager
Celeste Reid, Finance Director and Treasurer
Attachment 6B
2 TABLE OF CONTENTS
INTRODUCTION………………………………………………………….Page 3
PURPOSE/STANDARD OF CARE………………………………………..Page 3
OBJECTIVES………………………………………………………………Page 3
INVESTMENT PARAMETERS…………………………………………...Page 5
SAFEKEEPING…………………………………………………………….Page 8
RESPONSIBILITIES……………………………………………………….Page 9
REPORTING……………………………………………………………….Page 10
ANNUAL REVIEW………………………………………………………..Page 12
GLOSSARY OF TERMS………………………………………………….Page 12
3 INTRODUCTION
It is the policy of the City of Calimesa, the Successor Agency of the City of Calimesa, and other related entities of the City for which the City Councilmembers serve as governing body (hereinafter collectively referred to as the “City”) to predicate their investment policies, procedures, and practices upon the limitations placed upon them by governing legislative bodies. Such policies, procedures, and practices shall embody the following three principles: (1) compliance with federal, state and local laws governing the investment of public monies under the City’s control; (2) protection of the principal monies entrusted to the City; (3) maximization of profit within the parameters of prudent risk management, as defined in this Statement of Investment Policy (“SOIP” or “Investment Policy”).
PURPOSE
To establish an overall policy and procedure for the management of the investment of unexpended funds.
STANDARD OF CARE
Prudence: Investment officials shall adhere to the “prudent investor” standard of Government Code Section 53600.3 when managing the City’s investment portfolio. The prudent investor standard provides that investments shall be made with the care, skill, prudence, and diligence under circumstances then prevailing, including but not limited to the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal of capital and maintain the liquidity needs of the City.
OBJECTIVES
Temporarily idle or surplus funds of the City shall be invested in accordance with principles of sound treasury management and in accordance with provisions of California Government Code Sections 53600 et seq., the Municipal Code, and this Investment Policy.
A. Overall Risk Profile
The basic objectives of Calimesa's investment program are, in order of priority:
1. Safety of invested funds (i.e., to safeguard the principal of the funds);
2. Maintenance of sufficient liquidity to meet cash flow needs; and
3. Attainment of the maximum return possible consistent with the first two objectives.
B. Achievement of Objectives
The achievement of these objectives shall be accomplished in the manner described below:
1. Safety
The City shall ensure the safety of its invested funds by limiting credit and interest rate risks. Credit risk is the risk of loss due to the failure of the security issuer or backer.
Interest rate risk is the risk that the market value of portfolio securities will fall due to market conditions, such as an increase in general interest rates.
4 a. Credit Risk will be mitigated by:
(1) Limiting investments to the safest types of securities; (2) Pre-qualifying with an established procedure the financial institutions with which it will do business;
(3) Diversifying the investment portfolio so that the failure of any one issuer or backer will not place an undue financial burden on the City; and b. Interest rate risk will be mitigated by:
(1) Structuring the City's portfolio so that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation to meet those specific needs;
(2) Investing primarily in short-term securities; and
(3) Occasionally restructuring the portfolio to minimize the loss of market value and/or to maximize cash flows.
c. The physical security or safe-keeping of the City's investments is also an important element of safety. Detailed safekeeping requirements are defined in the section of this Investment Policy entitled "Safekeeping of Securities".
2. Liquidity
The City's financial portfolio must be structured in a manner which will provide that securities mature at approximately the same time as cash is needed to meet anticipated demands. Additionally, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets.
The specific percentage mix of different investment instruments and maturities is described herein.
3. Return
The investment portfolio shall be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs.
C. Time Frame for Investment Decisions
The City's investment portfolio shall be structured to provide that sufficient funds from investments are available every month to meet the City's anticipated cash needs.
Subject to the safety provisions outlined above, the choice of investment instruments
5 and maturities shall be based upon an analysis of anticipated cash needs, existing and anticipated revenues, interest rate trends and specific market opportunities. As a general rule, and subject to annual review by the Investment Committee, the average maturity of the investment portfolio will not exceed three years, and no investment will have a maturity of more than five years from its date of purchase.
D. Definition of Unexpended Funds
Unexpended funds for the purpose of this Investment Policy are all City funds which are available for investment at any time, including the estimated checking account float, excepting those minimum balances required by the City's banks to compensate them for the cost of banking services.
Investment Parameters
A. Types of Investments Authorized
The City may invest unexpended funds through national or state-chartered banks, savings and loans, authorized broker/dealers (each of the foregoing as more specifically described in California Government Code Section 53601.5), and the State Local Agency Investment Fund ("LAIF").
No investments shall have a maturity greater than five years. Combined investments with maturities greater than one year shall not exceed 70% of the total portfolio. Funds may be invested only in the following:
1. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.
2. The Local Agency Investment Fund (LAIF).
3. Collateralized and/or FDIC-insured demand deposits in nationally or state-chartered banks or state or federal associations (as defined by Section 5102 of the Financial Code) meeting the requirements of Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code).
4. Certificates of deposit issued by a nationally or state-chartered bank or a state or federal association (as defined by Section 5102 of the Financial Code), maturing in two years or less, the total of which shall not exceed 15% of the total portfolio, and which shall be insured by each institution at the maximum amount required by regulations of the F.D.I.C. and any amount above the insured amount must be collateralized in accordance with State law.
5. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored
6 enterprises, the total of which shall not exceed 75% of the total portfolio. Purchases shall be limited to senior issues as detailed below:
a. Federal National Mortgage Association (Fannie Mae).
b. Government National Mortgage Association (Ginnie Mae) in an amount not to exceed 20% of the total portfolio.
c. Federal Home Loan Mortgage Corporation (Freddie Mac). d. Federal Home Loan Bank (FHLB).
e. Federal Farm Credit Banks (FFCB).
f. Federal Agricultural Mortgage Corporation (FAMC or Farmer Mac). g. Tennessee Valley Authority (TVA).
6. Money market mutual funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), the total of which shall not exceed 5% of the total portfolio. To be eligible for purchase, the money fund shall be a “AAA” rated Government or U.S. Treasury money fund. In addition, the company shall have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. (B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).
The percentage limitations listed above on the amount of the City’s portfolio that may be invested in each investment category or issuer apply at time of purchase.
B. Prohibited Investments and Activities
Investments by the City in securities permitted by the California Government Code, but not specifically approved by this Investment Policy are prohibited without the prior approval of the City Council.
As required by California Government Code Section 53601.6, the City shall not invest any funds in inverse floaters, range notes, mortgage derived interest-only strips or any security that could result in zero interest accrual if held to maturity.
No representative of the City is authorized to engage in margin transactions, derivatives, nor reverse repurchase agreements on behalf of the City.
While it may occasionally be necessary or strategically prudent of the City to sell a security prior to maturity to either meet unanticipated cash needs or to restructure the portfolio, this Investment Policy specifically prohibits trading securities for the sole purpose of speculating or taking an unhedged position on the future direction of interest rates. Specifically, "when, as and if issued" trading and open-ended portfolio restructuring transactions are prohibited.
7 C. Qualification of Brokers, Dealers and Financial Institutions United States Treasury issue transactions shall be conducted only with the Federal Reserve, or the bank providing banking services for the City, or broker/dealers currently authorized to provide investment services to the City.
The City Treasurer shall maintain a list of financial institutions and broker/dealers authorized to provide investment purchase and sale services to the City. The authorized financial institutions and broker/dealers shall meet the requirements of Government Code Section 53601.5, maintain an office in the State of California, and shall qualify under the Securities and Exchange Commission (“SEC”) Rule 15C3-1 (uniform net capital rule). If at any time the City Treasurer learns that a financial institution or broker/dealer does not maintain an office in the State of California or no longer meets the requirements of Government Code Section 53601.5 or qualifies under the SEC Rule 15C3-1, the Treasurer shall immediately notify the City Council and shall place the item on the next agenda. Annually, all authorized firms must supply the City Treasurer with a current audited financial statement and documents verifying compliance with Rule 15C3-1. This information shall be transmitted annually to the City Council not later than July 31.
Annually, the investment advisory firms shall provide to the City, a list of Investment Brokers approved by the investment advisory firms. For transactions executed by the investment advisory firms engaged by the City, the firms’ approved lists may be used, with the exception of any specific broker(s) that may be excluded by the City.
D. Collateralization Requirements
Uninsured time deposits with banks and savings and loans shall be collateralized in the manner prescribed by law (i.e., Government Code Section 53630 et seq.) for depositories accepting municipal investment funds.
E. Ethics & Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Such employees and investment officials shall disclose to the City Council and the City Manager any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio. Such employees and officers shall subordinate their personal investment transactions to those of the City, particularly with regard to the time of purchases and sales.
F. Pre-formatted Wire Transfers
Wherever possible, the City shall use pre-formatted wire transfers to restrict the transfer of funds to pre-authorized accounts only. Authorized City officials are the City Manager and the
8 Director of Finance/City Treasurer. Wire transfers between brokers and/or security dealers are prohibited. Wire transfers directly between LAIF and the City’s safekeeping bank are permitted.
G. Notice of Investment Policy
The City shall send a copy of the current edition of this Investment Policy and enabling resolution upon opening an account and annually to all institutions which are approved to handle City investments. Receipt of the Investment Policy and authorizing resolution, including confirmation that it has been reviewed by persons handling the City's account, shall be acknowledged in writing within thirty days.
H. Investing Bond Proceeds
For the purpose of this section, "Bond Proceeds" shall include any notes, bonds or other instruments issued on behalf of the City, for which the members of the City Council serve as the governing body. Should the City elect to issue bonds for any purpose, the Indenture of Trust or Trust Agreement shall be the governing document specifying allowable investments for the proceeds of the issue as prescribed by law (i.e., Government Code Section 5922(d)). If the bond documents are silent as to the permitted investments, bond proceeds shall be invested in securities permitted by this Investment Policy. With respect to maximum maturities, if in the opinion of the City Treasurer matching the segregated investment portfolio of the bond reserve fund with the maturity schedule of an individual bond issue is prudent given current economic analysis, the Investment Policy authorizes extending beyond the five-year maturity limitation.
Safekeeping of Securities and Certificates of Deposit (CD) A. Safekeeping Agreement
The City shall contract with a state or national bank or trust company located within the State of California for the safekeeping of securities, other than CDs, LAIF, and money market mutual funds, which are owned by the City as part of its investment portfolio.
B. Handling of City-Owned Securities and Certificates of Deposit All CDs owned by the City shall be held by the City. The collateral for non-FDIC insured, nonnegotiable CDs purchased from a nationally or state-chartered bank or state or federal association (as defined by Section 5102 of the Financial Code) shall be held pursuant to a depository contract between the City and the issuer of the CD per Government Code Section 53649. Pursuant to Government Code Sections 53649, 53656, 53657, and 53659, such collateral shall be held by the Federal Home Loan Bank of San Francisco, or a trust company located within the State of California or a trust department of a bank located within the State of California, that has been authorized pursuant to Government Code Section 53657 by the Administrator of Local Agency Security designated under Government Code Section 53661 (currently, the State Commissioner of Business Oversight) to act in such a capacity.
C. Security Transfers
All security transactions entered into by the City shall be conducted on a Delivery-VersusPayment (DVP) basis. DVP is delivery of securities with an exchange of money for the securities, and with an exchange of a signed receipt for the securities. Pursuant to Government
9 Code Section 53608, the City Council delegates to the City Treasurer the authority to deposit for safekeeping the City’s securities, and all securities, except CDs and money market funds, shall be held in an account in the City's name by a third-party custodian designated by the City Treasurer and meeting the requirements of Government Code Section 53608. LAIF accounts shall be held in the name of the City or related entity for which the members of the City Council serve as the governing body.
The authorization to release City securities shall be provided in writing signed by two authorized signatories. Authorized City officials are the City Manager/Director of Finance and the City Treasurer.
D. Verification of Certificates of Deposit Collateral
The collateral for non-FDIC insured certificates of deposits shall be an amount at least equal to the minimum specified in Government Code Section 53652 (currently ranging from 105% to 150% of the deposited funds, depending on the type of collateral). Per Government Code Section 53661, the Administrator of Local Agency Security designated thereunder (currently, the State Commissioner of Business Oversight) will monitor the collateral held by the custodian of collateral pledged for local agency deposits.
Responsibilities
A. Responsibilities of the Finance Department
Subject to Government Code Section 53608 and the direction and supervision of the City Treasurer as the City Council’s delegate thereunder, the Finance Department is charged with responsibility for maintaining custody of all public funds and securities belonging to or under the control of the City and for the deposit and investment of those funds in accordance with principles of sound treasury management and with applicable laws and ordinances. However, duties related to day-to-day investment activities shall be performed by an official other than the person responsible for accounting for those investments.
B. Responsibilities of the Director of Finance
The Finance Director is appointed by the City Manager and is subject to his or her direction and supervision, subject to Government Code Section 53607 and the direction and the supervision of the City Treasurer as the City Council’s delegate thereunder with respect to investment authority. The Director of Finance is charged with responsibility for the conduct of all Finance Department functions, and the development of procedures to implement this Investment Policy as approved by the City Council.
C. Responsibilities of the City Manager
The City Manager is responsible for directing and supervising the Director of Finance. He or she is responsible further to keep the City Council fully advised as to the financial condition of the City.
D. Responsibilities of the City's Auditing Firm
The City's auditing firm's responsibilities shall include, but not be limited to, the examination and analyses of fiscal procedures and the examination, checking and verification of accounts
10 and expenditures. A review of the City's investment program is a part of the responsibility described above.
E. Responsibilities of the City Council
The City Council shall annually consider and adopt a written investment policy. As provided in that policy, the Council shall receive, review, and accept monthly and quarterly Investment Reports.
G. Responsibilities of the City Treasurer
Pursuant to Government Code Section 53607, the City Council delegates to the City Treasurer for a one-year period the authority to invest or to reinvest funds of the City, and to sell or exchange securities so purchased, and the City Treasurer shall be responsible to carry out all investment transactions. Such delegation may be annually renewed by the City Council pursuant to Government Code Section 53607.
Pursuant to Government Code Section 53608, the City Council has delegated to the City Treasurer the authority to deposit for safekeeping the City’s securities, and the City Treasurer shall be responsible for such safekeeping in accordance with applicable law, including but not limited to Government Code Section 53608 and, as to deposit accounts or non-negotiable certificates of deposit, Government Code Section 53630 et seq.
H. Responsibilities of Investment Advisors
The City Treasurer, as the City Council’s delegate of investment authority under Government Code Section 53607, may select a third party investment advisor to assist with the investment of City funds, provided that the City Treasurer exercises prudence in the selection of the investment advisor, imposes suitable safeguards to prevent abuse in the exercise of discretion by the investment advisor, and remains responsible for any investment decisions made by the investment advisor. Approved investment advisors shall provide the service within the following parameters:
1. All investments made on behalf of the City shall be accomplished in accordance with this Investment Policy.
2. All investment advisors must be explicitly authorized by the City Council.
3. All investment advisors must provide services within the scope of responsibility consistent with their contract with the City.
4. All investment advisors must be duly registered with the U.S. Securities & Exchange Commission.
Reporting
So long as the City Council’s annual delegation of investment authority to the City Treasurer pursuant to Government Code Section 53607 is effective, the City Treasurer shall make a monthly report of all investment transactions to the City Council.
The Director of Finance shall prepare a quarterly investment report containing the information required by Government Code Section 53646(b), including a succinct management summary that provides a
11 clear picture of the status of the current investment portfolio and all security transactions made over the past three months. This report shall be submitted to the City Council members within thirty (30) days following the end of the quarter as contemplated by Government Code Section 53646(b)(1); provided, if the information required to be contained in the quarterly Investment Report (as described below) is not yet available from the applicable financial institutions, the quarterly Investment Report shall be submitted to the City Council members as soon as possible thereafter, not to exceed sixty (60) days following the end of the quarter.
The quarterly Investment Report shall include the following:
A. A listing of individual securities and deposits held at the end of the reporting quarter; B. The type of investment, issuer, date of maturity, par amount, cost and market value of marketable securities at the end of the quarter; provided, for City investments that have been placed in the State of California Local Agency Investment Fund or in FDIC-insured accounts of an eligible bank or savings and loan association, the Director of Finance may supply to the City Council the most recent statement(s) received from these institutions in lieu of the foregoing information.
C. All security transactions occurring during the quarter whether or not the transaction has been fully settled;
D. Interest or dividend income credited to the account. If interest or dividends are not paid as earned, the interest amounts receivable should be shown; E. Realized gains or losses on sales of investments;
F. Unrealized gains or losses during the period;
G. The nature of all such investments in the portfolio should be described; H. With respect to interest bearing investments, the Investment Report shall indicate the face rate of interest and the effective yield to the City based on its cost of the investment.
I. The following statement shall be included in each report prepared by the Director of Finance and signed by the City Treasurer:
“All City investments are shown above and conform to the City Investment Policy. All investment transactions during this period are included in this report. As City Treasurer of the City of Calimesa, I hereby certify that sufficient investment liquidity and anticipated revenue are available to meet the next six (6) months' estimated expenditures.” If the first sentence of the foregoing statement cannot be reasonably made, the City Treasurer shall include the disclosure statement required by J. below in lieu of such sentence. If the second sentence of the foregoing statement cannot be reasonably made, the City Treasurer
12 shall provide in lieu of such sentence an explanation as to why sufficient money will or may not be available for the next six months’ estimated expenditures.
J. If a discrepancy exists between any restrictions in the Investment Policy, when compared to the period reflected on the Quarterly Investment Report, the following disclosure statement shall be included on the Report:
“I hereby certify that this report accurately reflects all investments, including pooled investments, and is in compliance with California Government Code Sections 53640 through 53646, as amended, and is in conformity with the City of Calimesa Investment Policy, except for the following deviation(s):”
Annual Review
This Investment Policy shall be reviewed each year by the City Council to ensure its consistency with respect to the overall objectives of safety, liquidity, and yield. Proposed amendments to the Investment Policy shall be prepared and be forwarded to the City Council for consideration.
GLOSSARY OF INVESTMENT TERMS
AGENCIES: Federal agency and instrumentality securities.
ASKED: The price at which securities are offered.
BANKERS’S ACCEPTANCE (“BA”): A draft, bill, or exchange accepted by a bank or a trust company. Both the issuer and the accepting institution guarantee payment of the bill.
BID: The price offered by a buyer of securities (when one sells securities, one asks for a bid).
BROKER: A broker brings buyers and sellers together so that he can earn a commission.
CERTIFICATE OF DEPOSIT (“CD”): A time deposit with a specific maturity, as evidenced by a certificate. Large-denomination CDs are typically negotiable.
COLLATERAL: Securities, evidence of deposit, or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (“CAFR”): It includes combined statements for each individual fund and account group, that are prepared in conformity with GAAP. It also includes supporting schedules that are necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section.
COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond that evidences interest due on a payment date.
13 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments that are linked to, or derived from, the movement of one or more underlying indexes or securities, and may include a leveraging factor; or (2) financial contracts based upon a notional amount whose value is derived from an underlying index or security (e.g., interest rates, foreign exchange rates, equities, or commodities).
DISCOUNT: The difference between the acquisition cost of a security and its value at maturity, when quoted at lower than face value. A security that sells below original offering price shortly after sale, is also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills).
DIVERSIFICATION: Dividing investment funds among a variety of securities that offer independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”): A federal agency that insures bank deposits, currently up to $250,000 per depositor per insured bank.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
FEDERAL HOME LOAN BANKS (“FHLB”): Government-sponsored wholesale banks (currently 11 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members, who must purchase stock in their District Bank.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (“FNMA” or “Fannie Mae”): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. Due to its federal charter, FNMA is considered a U.S. government-sponsored enterprise. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a publicly-traded stockholder-owned corporation that has also been under the conservatorship of the Federal Housing Finance Agency (FHFA) since September 6, 2008The corporation’s purchases
14 include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.
FNMA’s securities are also highly liquid and are widely accepted. For some securities issued by FNMA, FNMA provides guarantees as to the payment of principal and interest.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (“GNMA” or “Ginnie Mae”): Mortgagebacked securities that influence the volume of affordable housing loans and that are guaranteed by GNMA. A security holder is protected by the full faith and credit of the U.S. Government. Underlying mortgages for Ginnie Mae securities include those issued, insured, or guaranteed by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), the U.S. Department of Agriculture’s Rural Development (RD), and the U.S. Department of Housing and Urban Development’s Office of Public and Indian Housing (PIH). The term “pass-throughs” is often used to describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND (“LAIF”): Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (e.g., bills, commercial paper, banker’s acceptances) are issued and traded.
OFFER: The price asked by a seller of securities (when one buys securities, one asks for an offer).
See “Asked” and “Bid”.
PORTFOLIO: A collection of securities that an investor holds.
PRUDENT INVESTOR RULE: An investment standard. A fiduciary, such as a trustee, may invest in a security if it is one that would be bought by a prudent investor acting in like capacity, who is seeking reasonable income and preservation of capital. As to the City (including its related entities), the prudent investor standard is established by, and specifically described in, California Government Code Section 53600.3
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.
15 REPURCHASE AGREEMENT (“RP” OR “REPO”): A holder of securities sells them to an investor with an agreement to repurchase the securities at a fixed price on a fixed date. The security “buyer”, in effect, lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions.
Exception: when the Fed is said to be doing RP, it is lending money (increasing bank reserves).
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank‘s vaults and/or a customer custodial account (as to non-certificated securities) for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES AND EXCHANGE COMMISSION: An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions.
SEC RULE 15c3-1: See “Uniform Net Capital Rule”.
TREASURY BILLS: A non-interest bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 years.
TREASURY NOTES: Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years.
UNIFORM NET CAPITAL RULE: SEC requirement that member firms, as well as non-member broker-dealers in securities, maintain a maximum ratio of indebtedness-to-liquid capital of 15 to one.
Also called net capital rule and net capital ratio. Indebtedness covers all money that is owed to a firm, including margin loans and commitments to purchase securities (one reason that new public issues are spread among members of underwriting syndicates). Liquid capital includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
City Council Meeting
Agenda Report
Agenda Item No. 7
SUBJECT: ANNUAL REPORT AND FIVE-YEAR REPORT REGARDING
DEVELOPMENT IMPACT FEES
MEETING DATE: November 7, 2022
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council receive and file this Annual Report regarding developer impact fees (hereinafter referred to as DIF) and make the findings listed below.
BACKGROUND: Government Code Section 66006 requires local agencies to submit annual reports detailing the status of development impact fees. The annual report must be made available to the public within 180 days after the last day of the fiscal year and must be presented to the public agency (City Council) as an informational report.
This report summarizes the following information for each of the development fee programs:
• Description of the type of fee in the account or fund • The amount of the fee
• Beginning and ending fund balances
• Amount of fees collected, and the interest earned
• Identification of public improvements for which fees were expended • Identification of any inter-fund transfers or loan made from the fund • Any refunds made
In addition, to the extent there is an accumulation of fees in any fee category in excess of 5 years (in other words, current fund balance exceeds the amount of mitigation fees collected over the past 5 years), Government Code Section 66001 (d) requires the local agency to make certain findings. These are as follows:
• Identify the purpose for which the fees will be spent • Indicate the fee was appropriately charged by demonstrating a reasonable relationship between the fee and the purpose for which it was charged
• Identify any other sources and amounts of funding that are necessary to complete improvements
• Identify the projected timeline for having all projected funding for making the identified improvements
DISCUSSION: Attached, as Exhibit A, is a DIF status report reflecting activity for the 2021-22 Fiscal Year: As part of that report, a determination is made, by fee category, as to whether there are mitigation fees remaining unexpended for 5 years or more. As indicated in Exhibit A, there are 5 categories of mitigation fees with unexpended funds in excess of 5 years; namely Flood Control/Drainage, Administrative Facilities, Library facilities, Law Enforcement Facilities and Park Improvements. Please note that in Street/Traffic Improvement Fund certain non-mitigation revenue (i.e., grants and other developer contributions) was excluded from the excess revenue calculation.
The required findings in each fee category are as follows:
Flood Control/Drainage Fees:
The purpose of the City’s Flood Control/Drainage Fees is to construct new flood control facilities to accommodate storm water from new development to serve the City and its residents. The relationship between the fee imposed and the purpose for which it is imposed is to mitigate the impact of new development on the need for flood control facilities that serve new development. The nexus and proportionality for the fee imposed is provided for in the DIF study that was prepared at the time the fees were established. The City hereby incorporates the findings from that study into this report. The sources of funding for this improvement are identified in the attached DIF status report. The City is currently working on the Calimesa Creek project. The project was not completed in 2021-22 and will continue into 2022-23. The funding sources include an EPA grant which concluded in 2019-20, Development Impact Fee revenue and a Riverside County Flood Control grant. It is anticipated that in the next 24 months, the project will be completed. The project will require significant DIF funds to be expended during that time period.
Administrative Facilities Fees:
The purpose of the City’s Administrative Facilities Fees is to construct a City Hall to serve the residents and businesses as the City grows due to new developments. The relationship between the fee imposed and the purpose for which it is imposed is to mitigate the impact of new development on the need for city administrative offices to serve new development. The nexus and proportionality for the fee imposed is provided for in the DIF study that was prepared at the time the fees were established. The City hereby incorporates the findings from that study into this report. The sources of funding for this improvement are identified in the attached DIF status report. Several years ago, the City had completed the initial conceptual design of a new Civic Enrichment Center that would include, among other things, new library and city hall facilities. The estimated cost of the construction of the facility was $6.4 million. However, these costs were updated in the most recent DIF study (2017) to include the possibility of a slightly larger facility and alternative location. In addition, it is now planned that a new library and new city hall facilities will be at 2 separate locations, as opposed to the original concept noted above. Land is being dedicated to the City for a new city hall site, however, construction of a new facility is currently estimated at a cost of $16 million. It is anticipated that this improvement will be constructed in the next 5 to 7 years and during that time the City’s collected Administrative Facilities Fees would be expended for that purpose.
It should also be noted, that during fiscal year 2021-22, the City Council approved an expansion of the current city hall facilities in the amount of $528,484. During fiscal year 2021-22, only $134,546 was expended. The balance will be spent in fiscal year 2022-23.
Library Fees:
The purpose of the City’s Library Facilities Fees is to construct a new library to serve the residents and business within new developments in the City. The relationship between the fee imposed and the purpose for which it is imposed is to mitigate the impact of new development on the need for library services to serve new development. The nexus and proportionality for the fee imposed is provided for in the DIF study that was prepared at the time the fees were established. The City hereby incorporates the findings from that study into this report. The sources of funding for this improvement are identified in the attached DIF status report. Several years ago, the City had completed the initial conceptual design of a new Civic Enrichment Center that would include, among other things, new library and city hall facilities. The estimated cost of the construction of the facility was $6.4 million. However, these costs were updated in the most recent DIF study to include the possibility of a slightly larger facility and alternative location. In addition, it is now planned that a new library and new city hall facilities will be at 2 separate locations, as opposed to the original concept noted above.
The City currently owns property adjacent to the existing library. During 2021-22, the City and County of Riverside entered into a partnership wherein the County would work with the City to provide a new, much larger library facility on the site adjacent to the current library. The City Council agreed to contribute $1,110,000 of DIF Funds, $226,285 from the Library Operations Fund and $77,861 in donations/deposits for a total of $1,414,146. It is anticipated that facility will be completed in the next 18 months.
Law Enforcement Fees:
The purpose of the City’s Law Enforcement Facilities Fees is to construct a new police services facility in the City to serve the residents and businesses within new developments in the City. The relationship between the fee imposed and the purpose for which it is imposed is to mitigate the impact of new development on the need for law enforcement services to serve that new development. The nexus and proportionality for the fee imposed is provided for in the DIF study that was prepared at the time the fees were established. The City hereby incorporates the findings from that study into this report. The sources of funding for this improvement are identified in the attached DIF status report. The City currently contracts with the County of Riverside for Sheriff (Police) services. The City has not grown significantly since incorporation until recently. Any significant growth began in 2018-19. As such, building a facility has been delayed. It is anticipated that a facility will be built in the next 10 to 15 years. It is also a possibility that a substation could be added at the planned new fire station in the interim. The City’s Law Enforcement Facilities Fees will be expended when appropriate facility expansion projects move forward.
Park Improvement Fees:
The current purpose of the City’s Park Improvement Fees is to construct additional park facilities to serve the City and its residents. The relationship between the fee imposed and the purpose for
which it is imposed is to mitigate the impact of new development on the need for additional parks to serve that new development. The nexus and proportionality for the fee imposed is provided for in the DIF study that was prepared at the time the fees were established. The City hereby incorporates the findings from that study into this report. The sources of funding for this improvement are identified in the attached DIF status report. The City currently owns 2.31 acres of undeveloped parkland referred to as 4th Street Park Phase 2. Initial concepts have been discussed and community input obtained in fiscal year 2021-22 for this property. To date, the City has accumulated Park Improvement funds of $3,325,402. Subsequent to June 30, 2022, the City Council approved a contract with a Landscape Architect-Planning firm in the amount of $244,960 for 4th Street Park Phase 2 design services.
Fire Facilities Fees and Street and Traffic Fees:
As noted in the attached DIF status Report (Attachment A), there was not an excess of funds in the Fire Facilities Fund or the Street and Traffic Improvement Fund. As such, no findings are required to be made.
FISCAL IMPACT: There is no fiscal impact to the filing of this annual report.
ATTACHMENTS:
Attachment A: Development Impact Fee Status
Attachment B: Development Impact Fee Table of Fees
Fire Flood Control/ Administrative Library Law Enf. Street/Traffic Park Total Facilities Drainage Facilities Facilities Facilities Improvement Improvement All Funds Beginning Fund Balance $ 30,408 $ 2,904,351 $ 2,805,623 $ 1,136,720 $ 534,926 $ 1,576,206 $ 3,323,286 $ 12,311,520 Revenues:
Mitigation Fees 854 119,018 93,686 23,820 9,158 105,021 351,557 Interest Income 674 10,061 10,175 4,138 2,759 5,294 11,912 45,013 Other 2,405,129 (5) 2,405,129
Total Revenue $ 1,528 $ 129,079 $ 103,861 $ 27,958 $ 11,917 $ 2,515,444 $ 11,912 $ 2,801,699 Expenditures:
Planning - 21,757 (3) - 172 - 172 3,661 $ 25,762
Engineering & Professional Services 143 (4) 440,601 (6) 440,744 Construction/Improvements 134,546 (8) 2,056,415 (7) 2,190,961 Vehicles and Equipment -
Administration 5,486 (1) 14,057 (1) 4,280 (1) 4,280 (1) 4,280 (1) 20,695 (1) 6,135 (1) 59,213 Debt Service 50,349 (2) 50,349
Transfers, Loans, Refunds -
Total Expenditures $ 55,835 $ 35,957 $ 138,826 $ 4,452 $ 4,280 $ 2,517,883 $ 9,796 $ 2,767,029 Ending Fund Balance $ (23,899) $ 2,997,473 $ 2,770,658 $ 1,160,226 $ 542,563 $ 1,573,767 $ 3,325,402 $ 12,346,190 Mitigation Fees Collected
2017-18 to 2021-22: $ 258,734 $ 2,701,372 $ 2,569,691 $ 702,772 $ 237,053 $ 1,120,901 $ 1,464,416 Fund Balance vs. Fees Collected $ (282,633) $ 296,101 $ 200,967 $ 457,454 $ 305,510 $ (1,952,263) $ 1,860,986 Accumulation in Excess of 5 Years No Yes Yes Yes Yes No Yes (1) Fees expended for administration of mitigation fee program related actvities. (2) All expenditures are related to vehicles and equipment for the Fire Department. (3) All expenditures are related to the Calimesa Creek Project. (4) This expenditure relates to the Roberts Road Storm Drain project. Project completed. (5) This revenue is not mitigation fee revenue. It is grant revenue, other governmental revenue and other developer contributions. This revenue has not been included in the excess revenue calculation. (6) All expenditures for design/engineering related to the Cherry Valley Interchange and Singleton Road Interchange. (7) All expenditures for construction/improvements related to the County Line Road Corridor Improvement Project. (8) The City is expanding office facilties at the City Hall complex. The project should be completed in calendar year 2022.
CITY OF CALIMESA ATTACHMENT A
DEVELOPMENT IMPACT FEE STATUS
FISCAL YEAR ENDED JUNE 30, 2022
Attachment 7A
City of Calimesa
908 Park Avenue, Calimesa, California 92320
Telephone 909.795.9801 Facsimile 909.795.4399
www.cityofcalimesa.net
“Preserving and enhancing the open space atmosphere and quality of life in Calimesa” *City Development Impact Fees are paid to the City of Calimesa and are due prior to building permit issuance.
**MSHCP fees are paid to the City of Calimesa and are due prior to grading or building permit issuance.
Transportation Uniform Mitigation Fees***
The online fee calculator tool allows stakeholders to input project-specific information and receive fee obligation estimates for development projects: http://tools.pbid.com/wrcog/ ***TUMF is paid to the Western Riverside Council of Governments and is due prior to certificate of occupancy.
Attachment 7B
City Council Meeting
Agenda Report
Agenda Item No. 8
SUBJECT: TRACT MAP NO. 26811 SINGLETON HEIGHTS: RELEASE OF
FAITHFUL PERFORMANCE BOND
MEETING DATE: November 7, 2022
PREPARED BY: Michael Thornton, City Engineer
RECOMMENDATION: Staff recommends that City Council authorize City Staff to release the Warranty Bonds for Tract Map No. 26811 – Singleton Heights..
BACKGROUND: Tract No. 26811 includes 268 single family lots located east of the 10 Freeway at Singleton Road and Singleton Canyon Road. On April 18, 2005, City Council approved Final Tract Map No. 26811 and accepted the accompanying sureties and Undertaking Agreement (Subdivision Improvements). Faithful performance sureties are summarized as follows:
• Faithful Performance “Grading” in the amount of $2,707,500.00 (Bond No.736577S) • Faithful Performance “Street” in the amount of $2,365,182.00 (Bond No.736576S) • Faithful Performance “Storm Drain” in the amount of $2,332,302.00 (Bond No.736575S) • Faithful Performance “Undertaking Agreement” in the amount of $879,425.00 (Bond No.736573S)
On September 7, 2021, City Council accepted the improvements and authorized City staff to reduce all of the Faithful Performance Bonds to 10% of the total bond amounts to be held for the purpose of Warranty Bonds for a period of 1 year. The City Engineer hereby notifies the City Council that the Developer’s 1-year warranty period has elapsed and recommends that Council authorizes the release of the following Warranty Bond Amounts:
• Faithful Performance “Grading” in the amount of $270,750.00 • Faithful Performance “Street” in the amount of $236,518.20 • Faithful Performance “Storm Drain” in the amount of $233,230.20 • Faithful Performance “Undertaking Agreement” in the amount of $87,942.50 FISCAL IMPACT: None
ATTACHMENTS: None
City Council Meeting
Agenda Report
Agenda Item No. 9
SUBJECT: Parcel Map 33105: Riverside County Flood Control and Water Conservation District Easement
MEETING DATE: November 7, 2022
PREPARED BY: Michael Thornton, City Engineer
RECOMMENDATION: That City Council authorize Quitclaim Deed Execution Conveying an Easement in the Summerwind Ranch Development to Riverside County Flood Control and Water Conservation District
BACKGROUND: Council approved Final Parcel Map 33105 on November 20, 2017. The map included an offer of dedication of a Public Utility Easement for drainage purposes to the City. The only facilities located in the easement is facilities to be owned and maintained by Riverside County Flood Control and Water Conservation District (RCFCWCD). Therefore, Staff is requesting that Council quitclaim the easement to RCFCWCD. The easement is shown on the enclosed Parcel Map No. 33105, Sheet 12 of 13 within Parcel 6.
FISCAL IMPACT: None
ATTACHMENTS:
Attachment A: Quitclaim Deed
Parcel Map 33105
244702
Recorded at request of, and return to:
Riverside County Flood Control
and Water Conservation District
1995 Market Street
Riverside, California 92501
NO FEE (GOV. CODE 6103)
SPACE ABOVE THIS LINE FOR RECORDER'S USE
Calimesa – Engleman Road Storm Drain The undersigned grantor(s) declare(s) Project No. 5-0-00164 DDT: - 0 - THE CONVEYANCE IS TO A GOVERNMENTAL Parcel Map 33105 Parcel 6 ENTITY OR POLITICAL SUBDIVISION R&T 11922 APN: 413-290-064 (Portion)
QUITCLAIM DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF CALIMESA does hereby remise, release and forever quitclaim to RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT, a body corporate and politic, all right, title and interest in and to the Easement for Public Utility Purposes dedicated over, upon and across that certain real property situated in the city of Calimesa, County of Riverside, State of California, described in:
See legal description attached hereto as Exhibits "A" and "B", and made part hereof, to be referenced hereafter as RCFC Parcel No. 5164-501.
CITY OF CALIMESA:
Date: By:
WILLIAM DAVIS, Mayor
ATTESTS:
DARLENE GERDES,
Clerk to the City of Calimesa
By:
City Clerk (SEAL)
Attachment 9A
RTVERSIDE COUNTY FLCIOD CCII{TROL AND WA:|EII
COI{SERVAT'ICIN DISTRICT
EXHIBIT IIAII
LEGAL DESCRIPTION
CALIMESA _ ENGLEMAN ROAD STORM DRAIN
Parcel No. 5164-501
APN:413-290-064
In the City of Calimesa, County of Riverside, State of California, being that certain Easement for Public Utility Purposes, noted as Easement Note No. 13, over a portion of Parcel 6, Parcel Map No. 33105, filed in Book 243,Pages 99 through 111, inclusive, of Maps, records of said County Containing 6,188 square feet I 0.L42 acres more or less.
See Exhibit "B" attached hereto and made apart hereof.
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Land Surveyor No. 7752
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CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Quitclaim Deed, dated _________________ from the CITY OF CALIMESA ("Grantor") to RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ("Grantee"), is hereby accepted by the undersigned officer on behalf of the Board of Supervisors of the Riverside County Flood Control and Water Conservation District pursuant to authority conferred by Resolution No. 474 of the Board of Supervisors adopted on May 12, 1961, and the Grantee consents to the recordation thereof by its duly authorized officer.
RIVERSIDE COUNTY FLOOD CONTROL
AND WATER CONSERVATION DISTRICT
Date: By:
JASON E. UHLEY
General Manager-Chief Engineer
Project: Calimesa – Engleman RD SD
Project No. 5-0-00164
APN: 413-290-064
RCFC Parcel No. 5166-501
AU:amh
P8/244702
Attachment 9B
City Council Meeting
Agenda Report
Agenda Item No. 10
SUBJECT: PURCHASE OF GENERAL-PURPOSE UTILITY VEHICLE
MEETING DATE: NOVEMBER 07, 2022
PREPARED BY: MARI SHAKIR, ASSOCIATE ENGINEER
RECOMMENDATION: That the City Council authorize the purchase of a Kubota general-purpose utility vehicle and adopt Resolution No. 2022-62, a. Resolution of the City Council of the City of Calimesa California, amending the FY 2022-23 budget to include an appropriation from the general fund for the purchase of a Kubota general-purpose utility vehicle DISCUSSION: On April 27, 2022, the City was awarded the CalRecycle SB 1383 Grant in the amount of $21,006. This is a one-time grant program meant to provide aid to jurisdictions in implementing SB 1383 regulations adopted by CalRecycle. Eligible projects include collection, education and outreach, edible food recovery, capacity planning, procurement requirements, record keeping, enforcement and inspection, and program evaluation/gap analysis. Under the procurement category, the City can purchase equipment to aid in compost procurement activities to include vehicles/tractors, turf tires, forklifts, or compost slingers.
Under SB 1383, the City is required to procure 819 tons of recycled organic waste in the form of renewable gas, compost, or mulch. This converts to 475 tons of compost or 818.9 tons of mulch. A general-purpose utility vehicle would help the maintenance crew to transport and disperse compost and mulch throughout our parks to help reach our annual target. Staff received confirmation from CalRecycle that this is an eligible expenditure.
This vehicle can also be utilized for other park maintenance purposes such as trash and green waste pickup or the general haul of equipment and new plants. Since trucks cannot be driven into the parks without potential damage to the turf, any hauling within the park is done by foot. With the completion of the new Summerwind Park and the expansion of the 4th street park, it is imperative that staff be provided equipment that allows for more efficient maintenance methods. Purchasing this utility vehicle would provide staff with the ability to haul and traverse the parks faster.
Staff obtained 3 quotes for similar vehicles from Kubota ($19,322.53), John Deere ($19,469), and Polaris ($20,299). The Kubota option is a 2-seat diesel vehicle with a dump bed carrying capacity of 1,102 pounds. The towing capacity is 1,300 pounds. There are also additional attachments that can be purchased to expand the capabilities of the vehicle. These include things such as broom attachments for sweeping spray systems, plows, and blades.
FISCAL IMPACT: The City has expended $4,174 of the SB 1383 grant through September 30, 2022 and a balance remains in the grant of $16,832. If approved, the General Fund budget will be amended to recognize grant revenue in the Other Governmental Revenue account (01-0000-4800) and an appropriation of expenditure in the Equipment and Machinery account (01-5100-8100) for the balance of the grant of $16,832. There are existing and sufficient budgeted expenditures within the Public Works department of $2,490 from the Minor Equipment Account (01-5100-7725) for the remaining cost of the Kubota general-purpose utility vehicle.
ATTACHMENTS:
Attachment A: Resolution 2022-62
Attachment B: Kubota Quote
RESOLUTION 2022-62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIMESA CALIFORNIA, AMENDING THE FY 2022-23 BUDGET
TO INCLUDE AN APPROPRIATION FROM THE GENERAL FUND
FOR THE PURCHASE OF A KUBOTA GENERAL-PURPOSE
UTILITY VEHICLE
WHEREAS, on April 27, 2022, the City was awarded the CalRecycle SB 1383 grant in the amount of $21,006; and
WHEREAS, the SB 1383 grant is a one-time grant program meant to provide aid to jurisdictions in implementing the SB 1383 regulations adopted by CalRecycle; and WHEREAS, eligible projects include collection, education and outreach, edible food recovery, capacity planning, procurement requirements, record keeping, enforcement and inspection, and program evaluation/gap analysis; and WHEREAS, CalRecycle confirmed the purchase of a vehicle to disperse recycled compost and mulch at City parks as an eligible project; and WHEREAS, staff obtained 3 quotes from Kubota, John Deere, and Polaris for comparable vehicles; and
WHEREAS, the Kubota vehicle was the least expensive option with a price of $19,322.53; and
WHEREAS, the City has expended $4,173.71 of the SB 1383 grant leaving an unused amount of $16,832.29; and
WHEREAS, there are available funds within the Public Works fund to cover the remaining cost of equipment; and
WHEREAS, the City Council adopted the Fiscal year 2022-23 Budget on June 6, 2022; and
WHEREAS, this purchase was not included in the adopted budget; and WHEREAS, the City Council now deems it appropriate to allocate $16,832.29 in General Funds for the Purchase.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1: The Fiscal Year 2022-23 Budget is hereby amended to incorporate an adjustment as follows:
• Increase expenditure account 01-5100-8100 by $16,832
• Increase revenue account 01-0000-4800 by $16,832
Attachment 10A
PASSED, APPROVED, and ADOPTED this 7th day of November 2022. ________________________________
WILLIAM DAVIS, MAYOR
ATTEST:
_________________________________
DARLENE GERDES, CITY CLERK
Attachment 10B
City Council Meeting
Staff Report
Agenda Item No. 11
SUBJECT: PUBLIC HEARING TO CONSIDER APPEAL OF THE
PLANNING COMMISSION’S CONDITIONS OF APPROVAL
FOR DEVELOPMENT PLAN REVIEW 22-03 – APPROVAL TO
RELOCATE SOUTH MESA WATER COMPANY WELL NO. 11
AND REPLACE APPROXIMATELY 24,533 LINEAR FEET OF
WATER MAIN LINES AND RELATED APPURTENANCES
MEETING DATE: November 7, 2022
PREPARED BY: Kelly Lucia, Planning Director
RECOMMENDED ACTION: That the City Council continue the public hearing to the meeting of November 21, 2022 to allow the parties to continue discussing the matter.
BACKGROUND/DISCUSSION: On August 8, 2022, the Planning Commission approved the relocation of South Mesa Water Company (“SMWC”) Well No. 11 (located at APN: 411-080-005) and replacement of approximately 24,533 linear feet of water system main lines and 25,696 linear feet of appurtenance and service pipes located along County Line Road extending approximately from the I-10 east bound exit to Douglas Place. The pipeline replace is expected to occur in both the cities of Calimesa and Yucaipa, extending short distances into intersecting roadways including Calimesa Boulevard, 5th Street, 4th Street, 3rd Street, 2nd Street, California Street, and Bryant Street. The Planning Commission approved an addendum to the initial study/mitigated negative declaration completed for the County Line Road Transportation Corridor project (SCH#2019109030), pursuant to CEQA Guidelines Sections 15162 and 15164.
Approval of the addendum has not been appealed and is now final.
The Applicant (SMWC) challenged various conditions of approval associated with DPR 22-03, and, pursuant to Calimesa Municipal Code Section 18.15.080.G.2, filed an appeal to the City Council.
PUBLIC HEARING NOTIFICATION: A notification of public hearing was published in the News Mirror on October 28, 2022 for the November 7, 2022 City Council meeting. A copy of the public hearing notice was posted at City Hall and the Norton Younglove Senior Center. The Notice was sent to property surrounding public agencies, and those who have previously requested to receive City public hearing notices.
City Council Meeting
Agenda Report
Agenda Item No. 12
SUBJECT: PUBLIC HEARING: ANNEXATION OF CERTAIN OAK VALLEY
TOWN CENTER DEVELOPMENT TO (A) CITY OF CALIMESA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND
TRAILS) AS ANNEXATION NO. 1 (ADDING IMPROVEMENT AREA
NO. 2) AND (B) CITY OF CALIMESA PUBLIC SERVICES
COMMUNITY FACILITIES DISTRICT NO. 1 (LAW
ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE
SERVICES) AS ANNEXATION AREA NO. 3
MEETING DATE: November 7, 2022
PREPARED BY: Bonnie Johnson, City Manager
RECOMMENDATION: That the City Council:
With respect to CFD 2018-1 Annexation No. 1:
1. Hold a public hearing for CFD No. 2018-1 (Summerwind Trails) Improvement Area No. 2.
2. Adopt Resolution 2022-65, a Resolution Determining Validity of Prior Proceedings and Calling an Election for Annexation No. 1 to be Designated as Improvement Area No. 2.
3. Conduct election for annexation of Improvement Area No. 2 to CFD No. 2018-1 (Summerwind Trails).
4. Adopt Resolution 2022-66, a Resolution Canvassing Results of Election to annex Improvement Area No. 2 to CFD No. 2018-1 (Summerwind Trails).
5. Adopt Resolution 2022-67, a Resolution Annexing Improvement Area No. 2 into CFD No. 2018-1.
6. Introduce Ordinance 385, an Ordinance Levying Special Tax for Improvement Area No. 2 and waive further reading.
With respect to CFD No. 1 Annexation Area No. 3:
7. Hold a public hearing for CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) Annexation Area No. 3.
8. Adopt Resolution 2022-68, a Resolution Determining Validity of Prior Proceedings and Calling an Election for Annexation Area No. 3.
9. Conduct election for annexation of Annexation Area No. 3 to CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services).
10. Adopt Resolution 2022-69, a Resolution Canvassing Results of Election to annex Annexation Area No. 3 to CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services).
11. Adopt Resolution 2022-70, a Resolution Annexing Annexation Area No. 3 into CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services).
12. Introduce Ordinance 386, an Ordinance Levying Special Tax for Annexation Area No. 3 and waive further reading.
BACKGROUND/SUMMARY: Community Facilities Districts are a form of financing that can be used by cities, counties, school district, and special districts. CFDs raise money through special taxes that must be approved by 2/3 of the voters within the CFD. Most often, CFDs are formed by the landowner prior to subdivision. A CFD can be formed to finance a wide list of improvements, which include roads, water facilities, sewers and schools. They are also used to finance ongoing maintenance services such as landscaping, streets, lighting and drainage facilities. The taxes are secured by a continuing lien and are levied against property within the district on an annual basis.
The revenue stream is used to pay debt service on bonds to finance facilities and to pay for services on a pay as you go basis by the annual special tax for services.
The City is in receipt of two Petitions (including consent and waiver) with respect to a development for Summerwind Trails from the owners of the property known as the Oak Valley Town Center development (collectively, the “Owners”), which property consists of approximately 219 acres that are currently zoned as a combination of commercial and business park. The Owners are requesting that the City move forward and declare its intent to annex its property (the “Property”) (a) to the City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) (“CFD No. 2018- 1”) as Annexation No. 1 (adding Improvement Area No. 2) for the purpose of financing a portion of the cost of providing park landscape maintenance, lighting maintenance, including traffic signals, streets and sidewalk maintenance, street landscape maintenance, storm drain and detention basin maintenance services (the “CFD No. 2018-1 Services”), and (b) to the City of Calimesa Public Services Community Facilities District No. 1 as Annexation No. 3 for the purpose of funding law enforcement, fire, paramedic, and park maintenance services (the “CFD No. 1 Services,” and together with the CFD No. 2018-1 Services, the “Services”).
This property is slated for approximately 2.5 million square feet of warehouse logistics/business park uses on 121.6 acres, 88.7 acres of commercial uses, to include various public facilities such as a City Hall and fire station, 12.7 acres of open space, and 23.3 acres of road right of way.
The Rate and Method of Apportionment for Improvement Area No. 2 for CFD No. 2018-1 sets a maximum Special Tax B at $1,913 per acre for fiscal year 2022-23 with an annual escalator of the greater of the most recent annual percentage change in the Consumer Price Index or two percent (2%). This annexation does not affect the special taxes (both for facilities and services) for Improvement Area No. 1 of CFD No. 2018-1 or of the bonds issued in 2020 by CFD No. 2018-1 for Improvement Area No. 1. Improvement Area No. 2 is proposed to only have a services special tax and no bonding capacity.
The Rate and Method of Apportionment for CFD No. 1 will not be modified due to Annexation No.
3. The existing maximum special tax rates for CFD No. 1 Services will remain unchanged with its annual escalator, with Annexation No. 3 falling in Land Use Category 3 (Non-Residential Property) at a fiscal year 2022-23 maximum special tax rate of $3,348.16 per acre.
On October 3, 2022, the City Council, as the legislative body of the CFDs accepted the Petition, Consent and Waiver from the Owners, QR Birtcher Oak Valley Owner LLC and Oak Valley Development Company, LLC. These documents are the petitions from the Owners requesting their property to be annexed into the two CFDs, waiving certain statutory requirements and consenting to holding the public hearings and elections at the same meeting.
On October 3, 2022 the City Council adopted the Resolution of Intention to Annex to CFD No. 2018- 1 and adopted the Resolution of Intention to Annex to CFD No. 1. These resolutions set a public hearing for each annexation for November 7, 2022.
On behalf of the City, Koppel & Gruber Public Finance, as special tax consultant, has prepared a CFD Report describing the proposed annexation to CFD No. 2018-1 (Attachment A).
Staff is recommending the City Council for CFD No. 2018-1 to (a) hold a public hearing; (b) assuming there is no majority protest at the public hearing, adopt the Resolution Determining Validity of Prior Proceedings and Calling an Election for Annexation No. 1 to be Designated as Improvement Area No. 2 (Attachment B); (c) conduct election; (d) adopt Resolution Canvassing Results of Election (Attachment C); (e) assuming the proposition passes with at least two-thirds vote from the qualified voters, adopt Resolution Annexing Improvement Area No. 2 into CFD No. 2018-1 (Attachment D); and (f) introduce Ordinance Levying Special Tax for Improvement Area No. 2 and waive further reading (Attachment E). This Ordinance will be brought back for second reading and approval at the next Council meeting.
On behalf of the City, Koppel & Gruber Public Finance, as special tax consultant, has prepared a CFD Report describing the proposed annexation to CFD No. 1 (Attachment F).
Staff is recommending the City Council for CFD No. 1 to (a) hold a public hearing; (b) assuming there is no majority protest at the public hearing, adopt the Resolution Determining Validity of Prior Proceedings and Calling an Election for Annexation No. 3 (Attachment G); (c) conduct election; (d) adopt Resolution Canvassing Results of Election for Annexation Area No. 3 (Attachment H); (e) assuming the proposition passes with at least two-thirds vote from the qualified voters, adopt
Resolution Annexing Annexation Area No. 3 into CFD No. 1 (Attachment I); and (f) introduce Ordinance Levying Special Tax for Annexation Area No. 3 and waive further reading (Attachment J). This Ordinance will also be brought back for second reading and approval at the next Council meeting.
Following adoption of the Ordinances, the City may levy the special taxes pursuant to the rates and method of apportionment described in the applicable CFD Reports.
FISCAL IMPACT: None. Funds to be used for this annexation process were provided by developer deposit.
ATTACHMENTS:
Attachment A CFD Report for Annexation of Improvement Area No. 2 to CFD No. 2018-1 (Summerwind Trails) (including Rate and Method of Apportionment) Attachment B Resolution Determining Validity of Prior Proceedings and Calling Election for Annexation No. 1 Designated as Improvement Area No. 2 to CFD No. 2018-1 (Summerwind Trails)
Attachment C. Resolution Canvassing Results of Election for Improvement Area No. 2 to CFD No. 2018-1 (Summerwind Trails)
Attachment D. Resolution Annexing Improvement Area No. 2 to CFD No. 2018-1 (Summerwind Trails)
Attachment E. Ordinance Levying Special Tax within Improvement Area No. 2 of CFD No. 2018-1 (Summerwind Trails)
Attachment F CFD Report for Annexation of Annexation Area No. 3 to CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (including Rate and Method of Apportionment).
Attachment G Resolution Determining Validity of Prior Proceedings and Calling Election for Annexation Area No. 3 to CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services)
Attachment H. Resolution Canvassing Results of Election for Annexation Area No. 3 to CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services)
Attachment I. Resolution Annexing Annexation Area No. 3 to CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) Attachment J. Ordinance Levying Special Tax within Annexation Area No. 3 of CFD No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services)
ATTACHMENT A
CFD Report for Annexation of
Improvement Area No. 2 to CFD No. 2018-1
(Summerwind Trails)
(including Rate and Method of Apportionment)
CITY OF CALIMESA
COMMUNITY FACILITIES DISTRICT
NO. 2018-1 (SUMMERWIND TRAILS),
IMPROVEMENT AREA NO. 2
ANNEXATION NO. 1
PUBLIC REPORT
NOVEMBER 7, 2022
CITY OF CALIMESA
CITY COUNCIL
WILLIAM “BILL” DAVIS, MAYOR
JEFF CERVANTEZ, MAYOR PRO TEM
LINDA MOLINA, COUNCIL MEMBER
WENDY HEWITT, COUNCIL MEMBER
WYNONA DUVALL, COUNCIL MEMBER
CITY MANAGER
BONNIE JOHNSON
FINANCE DIRECTOR
CELESTE REID
November 7, 2022 Community Facilities District No. 2018-1 (Summerwind Trails) IA No 2 Annexation No. 1
City of Calimesa
TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................................ 1 A. DESCRIPTION OF CFD NO. 2018-1 ............................................................................................... 1 B. DESCRIPTION OF SERVICES ....................................................................................................... 2 C. BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT ............................................. 2 D. COST ESTIMATE.............................................................................................................................. 3 E. RATE AND METHOD OF APPORTIONMENT ........................................................................... 3 F. GENERAL TERMS AND CONDITIONS ....................................................................................... 3 EXHIBIT A – BOUNDARY MAP .......................................................................................................... A-1 EXHIBIT B – COST ESTIMATES .........................................................................................................B-1 EXHIBIT C- RATE AND METHOD OF APPORTIONMENT .......................................................... C-1
November 7, 2022 1 Community Facilities District No. 2018-1 (Summerwind Trails) IA No. 2 Annexation No. 1
City of Calimesa
Introduction
The City Council of the City of Calimesa (the “Council”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), on October 3, 2022 adopt a resolution entitled “Resolution of Intention of the City Council of the City of Calimesa, Acting as the Legislative Body of the City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails), Declaring its Intention to Annex Property into said District as Improvement Area No. 2 and to Authorize the Levy of a Special Tax within Improvement Area No. 2” (the “Resolution of Intention”).
In the Resolution of Intention the Council expressly ordered the preparation of a written Community Facilities District Report (the “Report”), for the proposed Community Facilities District No. 2018-1 (Summerwind Trails), Improvement Area No. 2 (“CFD No. 2018-1, IA No. 2” or the “District”).
The Resolution of Intention ordering the Report did direct that the Report generally contain the following:
1. a brief description the Services which are required to adequately meet the needs of CFD No. 2018-1, IA No. 2; and
2. an estimate of the cost of providing the Services, including an estimate of the fair and reasonable cost of all Incidental Expenses, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other expenses incidental to the construction, completion and inspection of the authorized work to be paid through the proposed financing, and the costs associated with the providing the authorized Services.
For particulars, reference is made to the Resolution of Intention (Resolution Number 2022-56) for the District, as previously approved and adopted by Council.
Now, Therefore Koppel & Gruber Public Finance, the appointed responsible firm directed to prepare the Report, does hereby submit the following:
A. Description of CFD No. 2018-1, IA No. 2
CFD No. 2018-1, IA No. 2 is comprised of approximately 160 net acres of commercially zoned land in the City of Calimesa known as Oak Valley Town Center. A map showing the boundaries of Community Facilities District No. 2018-1 (Summerwind Trails), Annexation No. 1 is included in Exhibit “A” of this Report. Table 1 below shows taxable acreage for CFD No. 2018-1 IA No.
2. CFD NO. 2018-1, ANNEXATION NO. 1 MINIMUM TAXABLE ACREAGE Improvement Area No. 2 159.36
November 7, 2022 2 Community Facilities District No. 2018-1 (Summerwind Trails) IA No. 2 Annexation No. 1
City of Calimesa
B. Description of Services
The purpose of CFD No. 2018-1, IA No. 2 is to provide the maintenance of park landscape maintenance, lighting maintenance, street and sidewalk maintenance, street landscape maintenance, storm drain and detention basin maintenance services that are in addition to those provided in the territory within CFD No. 2018-1, IA No. 2 prior to the formation of District.
Services to be Maintained
The General Description of the services to be maintained are described below (together referred to as “the Services”) as part of CFD No. 2018-1 include but are not limited:
Landscape servicing and maintenance,
Street lighting servicing and maintenance, and
Storm drain and detention basin maintenance.
These Services are in addition to those provided prior to the formation of CFD No. 2018-1 and do not supplant services already available within the territory proposed to be included in CFD No. 2018-1.
Incidental Expenses - the District may also finance any of the following:
The costs of administering the levy and collection of the Special Tax B and all other costs of the levy of the Special Tax B, including but not limited to, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy.
C. Boundaries of the Community Facilities District
A reduced map of the boundaries of CFD No. 2018-1, IA No. 2 titled “Annexation No. 1, Community Facilities District No. 2018-1 (Summerwind Trails) Improvement Area No. 2” is included in Exhibit “A” and is incorporated herein.
A full-scale map is on file with the Clerk of the City of Calimesa and was recorded with the County Recorder in the County of Riverside in Book 89 of Maps of Assessment and Community Facilities Districts, Page 81, Document Number 2022-0424894.
November 7, 2022 3 Community Facilities District No. 2018-1 (Summerwind Trails) IA No. 2 Annexation No. 1
City of Calimesa
D. Cost Estimate
As discussed above, CFD No. 2018-1, IA No. 2 includes the costs of Services.
The budget for Services is estimated at $304,850 for fiscal year 2022/2023.
The estimated costs of the Services are shown in 2022 dollars. For particulars on the estimated cost of Services, reference is made to Exhibit “B” of this Report.
E. Rate and Method of Apportionment
The Rate and Method of Apportionment provides sufficient information to allow a property owner within CFD No. 2018-1 IA No. 2 to estimate the Maximum Special Tax B for his or her property.
For particulars on the Rate and Method of apportionment, reference is made to Exhibit “C” of this report.
F. General Terms and Conditions
The description of the Services is general in nature. The final nature and location of the Services that will be provided and/or maintained will be determined upon approval of such Services.
November 7, 2022 Community Facilities District No. 2018-1 (Summerwind Trails)
City of Calimesa
A - 1
EXHIBIT A
BOUNDARY MAP FOR
ANNEXATION NO. 1
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(Summerwind Trails) IMPROVEMENT AREA NO. 2
A reduced copy of the Boundary Map follows. The original of such map is on file in the Office of the City Clerk and in the records of the County Recorder, County of Riverside, State of California.
November 7, 2022 Community Facilities District No. 2018-1 (Summerwind Trails)
City of Calimesa
A -2
November 7, 2022 Community Facilities District No. 2018-1 (Summerwind Trails)
City of Calimesa
B - 1
EXHIBIT B
COST ESTIMATES
Services Budget
The budget below reflects the maintenance costs for Improvement Area No. 2. The Special Tax for Services, Special Tax B, will be levied each fiscal year based on the methodology set out in the Rate and Method of Apportionment.
Improvement Area No. 2
Services Budget Fiscal Year 2022/2023
DIRECT COSTS TOTAL
Annual Maintenance
Landscape Maintenance $204,954
Street Lighting 6,216
Storm Drains 26,184
Contingency 7,121
Subtotal $244,475
Replacement/Rehabilitation/Reserves
Replacement Reserve $38,648
Cash Flow Reserve 12,223
Subtotal $50,871
Administration and Other Expenses
District Administration $7,500
County Costs 104
Legal Services 800
Accounting 1,000
Misc Office Expense 100
Subtotal $9,504
Total $304,850
The total costs for Services are estimates only. The District has the ability to reallocate amounts between line items as long as the total costs do not exceed the total budgeted amounts, which are subject to escalation.
November 7, 2022 Community Facilities District No. 2018-1 (Summerwind Trails)
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EXHIBIT C
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SUMMERWIND TRAILS)
IMPROVEMENT AREA NO. 2
OF THE CITY OF CALIMESA
RATE AND METHOD OF APPORTIONMENT
A Special Tax shall be levied on all Taxable Property (as defined below) within the boundaries of Improvement Area No. 2 (“IA No. 2”) of Community Facilities District No. 2018-1 (Summerwind Trails), (“CFD No. 2018-1”) of the City of Calimesa (“City”) and collected each Fiscal Year commencing in Fiscal Year 2022/2023 in an amount determined by the City Council (as defined below), through the application of this Rate and Method of Apportionment of the Special Tax to the extent and in the manner herein provided.
1. DEFINITIONS
“Acreage” or “Acre” means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable parcel map, condominium plan, or other recorded County parcel map. An Acre means 43,560 square feet of land. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
“Administrative Expenses” means the expenses incurred by the City on behalf of IA No. 2 related to the determination of the amount of the levy of Annual Special Taxes; the collection of Annual Special Taxes including the expenses of collecting delinquencies; the payment of salaries and benefits of any employee of the City whose employment duties are directly related to the administration of IA No. 2; and the costs otherwise incurred in order to carry out authorized purposes of IA No. 2. “Annual Special Tax” means any Special Tax actually levied in any Fiscal Year on any Assessor’s Parcel.
“Assessor” means the Assessor of the County.
“Assessor’s Parcel” means a parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number.
“Assessor’s Parcel Map” means an official map of the County designating parcels by Assessor’s Parcel number.
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“Building Permit” means a building permit for the construction within CFD No. 2018-1, IA No. 2 issued by the City, or another public agency in the event the City no longer issues building permits.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an authorized representative of the City, or designee thereof, responsible for determining the Special Tax Requirement for Services, for preparing the Annual Special Tax roll.
“CFD No. 2018-1” means Community Facilities District No. 2018-1 (Summerwind Trails) of the City.
“City” means the City of Calimesa, California.
“City Council” means the City Council of the City of Calimesa, acting as the legislative body of CFD No. 2018-1, or its designee.
“Consumer Price Index” means, for each Fiscal Year, the Consumer Price Index published by the U.S. Bureau of Labor Statistics for “All Urban Consumers” in the Los Angeles-Long Beach-Anaheim Area, measured as of the month of April in the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index that is reasonably comparable to the Consumer Price Index for the Los Angeles-Long Beach-Anaheim Area, as determined by the CFD Administrator.
“County” means the County of Riverside, California.
“Developed Property” means for each Fiscal Year, all Assessor’s Parcels of Taxable Property, exclusive of Assessor’s Parcels of Provisional Undeveloped Property, for which a Building Permit was issued prior to May 1 of the previous Fiscal Year. “Exempt Property” means Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section 7.
“Fiscal Year” means the period starting on July 1 and ending the following June 30. “Improvement Area No. 2” or “IA No. 2” means Improvement Area No. 2 of CFD No. 2018-1, as identified on the boundary map for CFD No. 2018-1, IA No. 2, as in effect on the date of formation of IA No. 2, and as may thereafter be amended in accordance with the Act.
“Land Use Class” means any of the classes listed in Table 1 under Section 3 below.
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“Maximum Special Tax B” means the Maximum Special Tax B (Services), determined in accordance with Section 3 below, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Proportionately” or “Proportionate” means for Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Developed Property. For Undeveloped Property, “Proportionately” means that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax B, as applicable, per Acre is equal for all Assessor's Parcels of Undeveloped Property.
The term “Proportionately” may similarly be applied to other categories of Taxable Property as described in Section 3 below.
“Provisional Undeveloped Property” means all Assessor’s Parcels of property that would otherwise be classified as Exempt Property pursuant to the provisions of Section 7, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage as set forth in Section 7.
“Services” means the services eligible to be funded by IA No. 2. This includes the repair, removal and replacement of all or part of an improvement. “Special Tax” means any special tax authorized to be levied within CFD No. 2018-1 pursuant to the Act and this Rate and Method of Apportionment. “Special Tax B” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within IA No. 2 to fund the Special Tax Requirement for Services.
“Special Tax Requirement for Services” means that amount required in any Fiscal Year to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the CFD Administrator; (iii) pay Administrative Expenses; (iv) less a credit for funds available to reduce the annual Special Tax B levy as determined by the CFD Administrator.
“State” means the State of California.
“Taxable Property” means all of the Assessor's Parcels within the boundaries of CFD No. 2018-1, IA No. 2, which are not exempt from the levy of the Special Tax pursuant to law or Section 7 below.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property within the boundaries of IA No. 2 not classified as Developed Property or Provisional Undeveloped Property.
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2. LAND USE CLASSIFICATION
Each Fiscal Year, beginning with Fiscal Year 2022/2023, each Assessor’s Parcel within the boundaries of IA No. 2 shall be classified as Taxable Property or Exempt Property. In addition, all Taxable Property within IA No. 2 shall be classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property, and all such Taxable Property shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections 3 and 4 below.
3. MAXIMUM SPECIAL TAX RATES
A. Special Tax B (Services)
i. Developed Property
The Maximum Special Tax B applicable to an Assessor’s Parcel of Developed Property for Fiscal Year 2022/2023 shall be $1,913 per Acre.
Each July 1 commencing July 1, 2023, the Maximum Special Tax B for Developed Property or Approved Property shall be increased by the greater of (i) the most recent annual percentage change in the Consumer Price Index or (ii) two-percent (2%) of the amount in effect in the prior Fiscal Year.
ii. Undeveloped Property Maximum Special Tax B
The Maximum Special Tax B applicable to an Assessor’s Parcel of Undeveloped Property for Fiscal Year 2022/2023 shall be $1,913 per Acre.
Each July 1, commencing July 1, 2023, the Backup Special Tax B for Undeveloped Property shall be increased by the greater of (i) the most recent annual percentage change in the Consumer Price Index or (ii) two-percent (2%) of the amount in effect in the prior Fiscal Year.
iii. Provisional Undeveloped Property
The Maximum Special Tax B for Provisional Undeveloped Property for Fiscal Year 2022/2023 shall be $1,913 per Acre.
Each July 1, commencing July 1, 2023, the Maximum Special Tax B for Provisional Undeveloped Property shall be increased by the greater of (i) the most recent annual percentage change in the
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Consumer Price Index or (ii) two-percent (2%) of the amount in effect in the prior Fiscal Year.
4. METHOD OF APPORTIONMENT
A. Special Tax B (Services)
For each Fiscal Year, commencing Fiscal Year 2022/2023, the CFD Administrator shall calculate the Special Tax Requirement for Services and levy Special Tax B on all Taxable Property in accordance with the following steps:
Step 1: The Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Maximum Special Tax B for Developed Property as necessary to satisfy the Special Tax Requirement for Services;
Step 2: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, the Special Tax B shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Maximum Special Tax B; Step 3: If additional monies are needed to satisfy the Special Tax Requirement for Services after the first two steps have been completed, then the Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property at up to 100% of the Maximum Special Tax B for Provisional Undeveloped Property.
Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Developed Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within IA No. 2, except for those Assessor’s Parcels of Developed Property whose owners are also delinquent or in default on their Special Tax payments for one or more other properties within IA No. 2.
5. COLLECTON OF ANNUAL SPECIAL TAXES
Collection of the Annual Special Tax shall be by the County in the same manner as ordinary ad valorem property taxes are collected and the Annual Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for other means of collecting the Annual Special Tax, including direct billings thereof to the property owners.
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6. TERM OF SPECIAL TAX
Special Tax B shall be levied as long as necessary to meet the Special Tax Requirement for Services.
7. EXEMPTIONS
The CFD Administrator shall classify as Exempt Property (i) Assessor’s Parcels owned by the State of California, Federal or other local governments, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization (iii) Assessor’s Parcels with public utility easement by the restriction, as determined reasonably by the CFD Administrator, provided that no such classification would reduce the sum of all Taxable Property in IA No. 2 to less than 159 Acres. Assessor’s Parcels which cannot be classified as Exempt Property because such classification would reduce the sum of all Taxable Property in IA No. 2 to less than 159 Acres shall be classified as Provisional Undeveloped Property and will continue to be subject to the Special Tax B accordingly. Tax exempt status for this purpose of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes eligible for classification as Exempt Property.
If the use of an Assessor’s Parcel of Exempt Property changes so that such Assessor’s Parcel is no longer classified as one of the uses set forth in the first paragraph of this Section 7 above that would make such Assessor’s Parcel eligible to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property.
8. APPEALS
Any landowner who pays the Annual Special Tax and claims the amount of the Annual Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Annual Special Tax that is disputed.
If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may recommend changing the amount of the Annual Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner believes such error still exists, such person may file a written notice with the City Manager, or designee of the City, appealing the amount of the Annual Special Tax levied on such Assessor’s Parcel. Upon the receipt of such notice, the City Manager or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. The City Manager or designee thereof shall interpret this Rate and Method of Apportionment and make determinations relative to the administration of the Annual Special Tax and any landowner appeals. The decision of the City Manager or designee shall be final and binding as to all persons.
ATTACHMENT B
Resolution Determining Validity of Prior
Proceedings and Calling Election for
Annexation No. 1 Designated as Improvement
Area No. 2 to CFD No. 2018-1
(Summerwind Trails)
RESOLUTION NO. 2022-65
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA
DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS RELATING
TO ANNEXATION OF PROPERTY INTO CITY OF CALIMESA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND
TRAILS), AND CALLING SPECIAL ELECTION RELATED TO
ANNEXATION NO. 1 TO BE DESGINATED AS IMPROVEMENT AREA NO. 2 WHEREAS, the City Council (the “Council”) of the City of Calimesa, California (the “City”), has heretofore formed the City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”);
WHEREAS, the City Council, acting as the legislative body of the CFD, has heretofore adopted Resolution No. 2022-56 (the “Resolution of Intention to Annex”) stating its intention to annex certain property to the CFD (“Annexation No. 1”) to be designated as Improvement Area No. 2 (“Improvement Area No. 2”) pursuant to the Act; and WHEREAS, a copy of the Resolution of Intention to Annex incorporating a description and map of the proposed boundaries of Annexation No. 1 to be designated as Improvement Area No. 2, and setting forth the rate and method of apportionment (the “IA2 RMA”) and manner of collection of the special tax to be levied within Improvement Area No. 2, which will be used to finance a portion of the cost of providing park landscape maintenance, lighting maintenance, including traffic signals, streets and sidewalk maintenance, street landscape maintenance, storm drain and detention basin maintenance services (the “IA2 Services”), that are in addition to those provided in the territory within Improvement Area No. 2 prior to the annexation of Improvement Area No. 2 to the CFD and do not supplant services already available within the territory proposed to be included in Annexation No. 1, is on file with the City Clerk and is incorporated herein by reference; and
WHEREAS, the Resolution of Intention to Annex set November 7, 2022 as the date of the public hearing on the annexation of Annexation No. 1 as Improvement Area No. 2 to the CFD and this Council held the said public hearing as required by law; and WHEREAS, prior to the commencement of the hearing, there was filed with the City Council a Community Facilities Report prepared by Koppel & Gruber Public Finance (the “CFD Report”) containing a boundary map of Annexation No. 1 as Improvement Area No. 2, a description of the IA2 Services, an estimate of the costs of the IA2 Services and incidental expense to be financed by properties within Improvement Area No. 2, and the CFD Report has been reviewed by the Council and is incorporated herein and made a part of the record of the public hearing; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of proposed Annexation Area No. 1 as Improvement Area No. 2 to the CFD were heard and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to the Council on said matters before it, and this Council at the conclusion of said hearing is fully advised in the premises.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CALIMESA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWND TRAILS), AS FOLLOWS:
Section 1. Pursuant to Section 53325.1(b) of the Government Code, the Council finds and determines that the proceedings prior hereto were valid and in conformity with the requirements of the Act.
Section 2. The description and map of the boundaries of Annexation No. 1 designated as Improvement Area No. 2 on file in the City Clerk’s office and as described in the Resolution of Intention to Annex and incorporated herein by reference, shall be the boundaries of Annexation No. 1 designated as Improvement Area No. 2. The map of the proposed boundaries of Improvement Area No. 2 has been recorded in the Office of the County Recorder of Riverside County, California in Book 89, page 81 of the Book of Maps of Assessments and Community Facilities Districts (Instrument Number 2022-0424894).
Section 3. Except where funds are otherwise available, it is proposed that there shall be levied annually in accordance with procedures contained in the Act, special taxes (the “Special Tax B”) sufficient to finance the IA2 Services that are in addition to those provided in the territory within Annexation No. 1 as Improvement Area No. 2 prior to the annexation thereof to the CFD and do not supplant services already available within the territory proposed to be included in Imrpovement Area No. 2. The IA2 RMA and manner of collection is described in detail in Exhibit “A” attached to the Resolution of Intention to Annex and incorporated herein by this reference.
The Special Tax B shall be utilized to pay for authorized services.
Section 4. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all taxable real property in Improvement Area No. 2, and this lien shall continue in force and effect until the special tax obligation is canceled in accordance with law or until collection of the tax by the City ceases.
Section 5. Council finds that the IA2 Services are necessary to meet the increased demand put upon the City as a result of the development within Improvement Area No. 2.
Section 6. The Council finds that there is not an ad valorem property tax currently being levied on property within Improvement Area No. 2 for the exclusive purpose of financing services similar to the IA2 Services.
Section 7. Written protests against annexation of Annexation No. 1, or against the furnishing of specified services or the levying of a specified special tax within Improvement Area No. 2, have not been filed by fifty percent (50%) or more of the registered voters or property owners of one-half (1/2) or more of the area of land within either the existing CFD or proposed Improvement Area No. 2.
Section 8. Pursuant to Government Code Section 53353.5, the Council hereby submits to the qualified electors of Improvement Area No. 2 a proposition (the “Proposition”) to annex into the CFD Annexation No. 1 to be designated as Improvement Area No. 2 and to levy special taxes on property within Improvement Area No. 2 in accordance with the IA2 RMA. The Proposition is attached as Exhibit “A.”
Section 9. A special election is hereby called for Improvement Area No. 2 within the CFD on the Proposition set forth in Section 8 above.
Section 10. The Council hereby directs that the election be conducted by the City Clerk of the City of Calimesa, as the elections official.
Section 11. The City Clerk shall mail or hand deliver the ballots to the landowners immediately upon the adoption of this Resolution.
Section 12. The time for notice having been waived by the qualified electors, the date of the special election for the annexation of Improvement Area No. 2 to the CFD on the applicable proposition shall be on the 7
th day of November, 2022. The voter ballots shall each be returned to the City Clerk at 908 Park Avenue, Calimesa, California, no later than 11:00 o’clock p.m. on November 7, 2022. The election may be closed with the concurrence of the City Clerk, as soon as all of the ballots for such election are returned.
Section 13. The Council finds and determines that there were no registered voters residing within the territory of proposed Improvement Area No. 2 at the time of the protest hearing and ninety (90) days prior thereto. The requirements of Section 53326 of the Government Code having been waived by all of the landowners, the ballots for the special election shall be personally delivered to the landowners within Improvement Area No. 2. Each landowner shall have one (1) vote for each acre or portion thereof that he or she owns within Improvement Area No. 2 as provided by Section 53326 of the Act.
Section 14. Annexation No. 1 designated as Improvement Area No. 2 within the CFD shall constitute a single election precinct for the purpose of holding said election relating to Annexation No. 1.
Section 15. The City Clerk is directed to certify and attest to this Resolution and to take any and all necessary acts to call, hold, canvass and certify an election or elections on the levy of the special tax.
Section 16. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED, APPROVED AND ADOPTED this 7th day of November, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
WILLIAM DAVIS, MAYOR
ATTEST:
DARLENE GERDES, CITY CLERK
133199872.1
YES
NO
EXHIBIT A
CITY OF CALIMESA
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SUMMERWIND TRAILS)
ANNEXATION NO. 1 - IMPROVEMENT AREA NO. 2
SPECIAL TAX ELECTION
November 7, 2022
To vote, mark an “X” in the voting square after the word “YES” or after the word “NO.” All marks otherwise made are forbidden.
This ballot is provided to ___________________________________, as owner or authorized representative of such owner of land within proposed Improvement Area No. 2 of City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) and represents ___ votes.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Calimesa at 908 Park Avenue, Calimesa, California 92320.
PROPOSITION Shall City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) (the “CFD”) annex property known as Improvement Area No. 2 and be authorized to levy special taxes within Improvement Area No. 2 of the CFD pursuant to the rate and method of apportionment of special taxes (the “IA2 RMA”) set forth in Resolution No. 2022-56 to finance the authorized services, all as provided for in the IA2 RMA?
ATTACHMENT C
Resolution Canvassing Results of Election for
Improvement Area No. 2 to CFD No. 2018-1
(Summerwind Trails)
RESOLUTION NO. 2022-66
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA ACTING ON BEHALF OF CITY OF CALIMESA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS) CANVASSING THE RESULTS OF THE ELECTION HELD WITHIN IMPROVEMENT AREA NO. 2 PROPOSED TO BE ANNEXED TO SAID
DISTRICT
WHEREAS, the City Council (the “Council”) of the City of Calimesa, California has previously conducted proceedings pertaining to the annexation of certain property (“Annexation No. 1”) to be designated as Improvement Area No. 2 (“Improvement Area No. 2”), into the City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) (the “CFD”), the rate and method of apportionment of a special tax to finance the cost of providing certain public services (the “IA2 Services”), and the calling of an election in regard to the foregoing; and WHEREAS, the landowners of record within the CFD as of the close of the public hearing held on November 7, 2022 unanimously consented to a waiver of the time limits for setting the election and a waiver of any written analysis, arguments or rebuttals as set forth in California Government Code sections 53326 and 53327. Such waivers are set forth in the written petition executed by the landowners which is on file with the City Clerk as election official (the “Election Official”) concurring therein; and
WHEREAS, on November 7, 2022, an election was held within proposed Improvement Area No. 2 regarding annexation to the CFD and the levy of a proposed special tax in accordance with the rate and method of apportionment of special tax (the “IA2 RMA”); and WHEREAS, there has been presented to the Council a Certificate of the Election Official as to the Results of the Canvass of the Election Returns (the “Certificate of the Election Official”), a copy of which is attached hereto as Exhibit “A”; and
WHEREAS, at such election the proposal for the annexation of Improvement Area No. 2 into the CFD and the levy of a special tax pursuant to the IA2 RMA for nonexempt parels within Improvement Area No. 2 was approved by the qualified electors of Improvement Area No. 2;
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CALIMESA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS), AS FOLLOWS:
Section 1. It is hereby determined that the election conducted for Annexation No. 1 within Improvement Area No. 2 was duly and validly conducted.
Section 2. The canvass of the votes cast at the special election held in Improvement Area No. 2 within the CFD on November 7, 2022, as shown in the Certificate of the Election Official attached hereto, is hereby approved and confirmed.
Section 3. The Proposition presented to the qualified electors within Improvement Area No. 2 of the CFD for receipt by the Election Official on November 7, 2022, has carried.
Section 4. The Council, acting as the legislative body of the CFD, is authorized to annex Annexation No. 1 to be designated as Improvement Area No. 2 to the CFD and to levy the special tax on behalf of the CFD on nonexempt properties within Improvement Area No. 2.
Section 5. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED, APPROVED AND ADOPTED this 7th day of November, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
WILLIAM DAVIS, MAYOR
ATTEST:
DARLENE GERDES, CITY CLERK
EXHIBIT A
CITY OF CALIMESA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS) IMPROVEMENT AREA NO. 2
CERTIFICATE OF THE ELECTION OFFICIAL
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF CALIMESA )
I, DARLENE GERDES, City Clerk in my capacity as Elections Official in the City of Calimesa, California, in its capacity as the legislative body of the City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) (the “CFD”), DO HEREBY CERTIFY, that pursuant to the provisions of Section 53325.4 of the Government Code and Division 15, commencing with Section 15000 of the Elections Code of the State of California, I did canvass the return of the votes cast at the Special Election on November 7, 2022, held in CITY OF CALIMESA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS) IMPROVEMENT AREA NO. 2
ANNEXATION NO. 1
I FURTHER CERTIFY that the Statement of All Votes Cast, to which this certificate is attached, shows the total number of ballots cast within the property within Improvement Area No. 2 of the CFD for the Proposition, and the totals of the respective columns and the totals as shown for the Proposition are full, true and correct.
WITNESS my hand and Official Seal this 7
th day of November, 2022.
CITY OF CALIMESA, CALIFORNIA, acting as
the LEGISLATIVE BODY OF THE CITY OF
CALIMESA COMMUNITY FACILITIES
DISTRICT NO. 2018-1 (SUMMERWIND
TRAILS)
By: ______________________________________
DARLENE GERDES, City Clerk
CITY OF CALIMESA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS)
STATEMENT OF ALL VOTES CAST
SPECIAL ELECTION
FOR ANNEXATION NO. 1
IMPROVEMENT AREA NO. 2
NOVEMBER 7, 2022
Qualified Landowner Votes Votes Cast YES NO
222
ATTACHMENT D
Resolution Annexing Improvement Area No. 2
to CFD No. 2018-1 (Summerwind Trails)
RESOLUTION NO. 2022-67
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA,
ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND
TRAILS), ANNEXING ANNEXATION NO. 1 AS IMPROVEMENT AREA
NO. 2 TO SAID DISTRICT AND AUTHORIZING THE LEVY OF A
SPECIAL TAX WITHIN SAID IMPROVEMENT AREA NO. 2
WHEREAS, on October 3, 2022, the City Council (the “ City Council”) of the City of Calimesa, California (the “City”), acting as the legislative body of the City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) (the “CFD”), adopted Resolution No. 2022-56 (the “Resolution of Intention to Annex”) stating its intention to annex certain property (“Annexation No. 1”) to be designated as Improvement Area No. 2 (“Improvement Area No. 2”) into the CFD pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”); and
WHEREAS, notice was published as required by law relative to the intention of the City Council to annex into the CFD proposed Improvement Area No. 2; and WHEREAS, on November 7, 2022, this City Council held a duly noticed public hearing as required by law relative to the determination to proceed with the annexation into the CFD of Improvement Area No. 2; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation into the CFD of Improvement Area No. 2 were heard and a full and fair hearing was held; and
WHEREAS, the City Council subsequent to said hearing adopted a resolution determining the validity of prior proceedings relative to the annexation into the CFD of Improvement Area No. 2 and the authorization of the levy of a special tax within Improvement Area No. 2 and called an election for Annexation No. 1 with proposed Improvement Area No. 2 for November 7, 2022, on the proposition of annexing into the CFD and the levying of a special tax for such annexation; and WHEREAS, on November 7, 2022, an election was held within proposed Improvement Area No. 2 in which the eligible electors of such annexation approved by more than two-thirds vote the proposition of annexing into the CFD and the levying of a special tax within Improvement Area No. 2; and
WHEREAS, this Legislative Body, by the adoption of an ordinance (the “Ordinance”), as authorized by Section 53340 of the Act, will authorize the levy of such special taxes within Improvement Area No. 2;
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CALIMESA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS), AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. Annexation No. 1, designated as Improvement Area No. 2, is hereby annexed into the CFD and hereafter all references to the CFD shall include Improvement Area No.
2. Section 3. A special tax (the “Special Tax B”) shall be levied within the boundaries of Improvement Area No. 2 pursuant to the rate and method of apportionment set forth in Exhibit “A” attached to the Resolution of Intention to Annex and incorporated by reference (the “IA2 RMA”), in an amount necessary to finance all or a portion of the cost of providing certain public services and maintenance that are in addition to those provided in the territory within Improvement Area No. 2 prior to the annexation to the CFD, periodic costs, and costs of the tax levy and collection.
Section 4. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby establishes the following accountability measures pertaining to the levy by the CFD of the Special Tax B above:
(1) Such Special Tax B shall be levied for the specific purposes set forth in Section 3 hereof.
(2) The proceeds of the levy of such Special Tax B shall be applied only to the specific purposes set forth in Section 3 hereof.
(3) The CFD shall establish an account or accounts into which the proceeds of such Special Tax B shall be deposited.
(4) The City Manager, or his or her designee, acting for and on behalf of the CFD, shall annually file a report with the Council as required pursuant to Government Code Section 50075.3.
Section 5. The Office of the City Manager, 908 Park Avenue, Calimesa, California 92320, (909) 795-9801, or its designee, is designated to be responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number and for estimating future special tax levies pursuant to Section 53340.1 of the Government Code.
Section 6. This resolution shall become effective upon its passage and adoption.
PASSED, APPROVED AND ADOPTED this 7th day of November, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
WILLIAM DAVIS, MAYOR
ATTEST:
DARLENE GERDES, CITY CLERK
ATTACHMENT E
Ordinance Levying Special Tax within
Improvement Area No. 2 of CFD No. 2018-1
(Summerwind Trails)
ORDINANCE NO. 385
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CALIMESA ACTING AS
THE LEGISLATIVE BODY OF CITY OF CALIMESA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN IMPROVEMENT AREA NO. 2 ANNEXED TO SAID DISTRICT
AND PROVIDING FOR FUTURE ANNEXATIONS
WHEREAS, on October 3, 2022, the City Council (the “Council”) of the City of Calimesa, California (the “City”), acting as the legislative body of the City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) (the “CFD”), adopted Resolution No. 2022-56 stating its intention to annex certain properties as referenced by “Annexation Map No. 1 – Community Facilities District No. 2018-1 (Summerwind Trails) Improvement Area No. 2, City of Calimesa” Recorded in Office of the County Recorder of Riverside County, California, in Book 89, page 81 of the Book of Maps of Assessments and Community Facilities Districts (Instrument Number 2022-0424894) (“Annexation No. 1”) to be designated as Improvement Area No. 2 (“Improvement Area No. 2”), into the CFD pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”); and
WHEREAS, notice was published as required by law relative to the intention of the Council to annex proposed Improvement Area No. 2 into the CFD; and WHEREAS, on November 7, 2022, this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Improvement Area No. 2 into the CFD and authorization of the special tax to be levied in accordance with the rate and method of apportionment and manner of collection of the special tax within Improvement Area No. 2 to finance certain public services; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Improvement Area No. 2 were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2022-65 determining the validity of prior proceedings relative to the annexation of Improvement Area No. 2 and called an election within proposed Improvement Area No. 2 for November 7, 2022 on the proposition of annexing Improvement Area No. 2 into the CFD and levying a special tax on nonexempt properties within Improvement Area No. 2; and WHEREAS, on November 7, 2022 an election was held within Improvement Area No. 2 in which the eligible electors of Improvement Area No. 2 approved by more than two-thirds vote the proposition of annexing into the CFD and levying a special tax; and WHEREAS, the Council subsequent to said election adopted Resolution No. 2022-67 the “Resolution of Annexation”) which annexed Improvement Area No. 2 into the CFD and authorized the levy of a special tax; and
WHEREAS, the Council desires to encompass all future annexations of the CFD and clarify the rate and method of apportionment to be utilized as that which is amended for such annexations or as a result of a resolution of change;
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CALIMESA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS), AS FOLLOWS:
Section 1. A special tax is levied within the boundaries of Improvement Area No. 2 pursuant to the formula set forth in the Rate and Method of Apportionment of Special Tax – Improvement Area No. 2 set forth in Exhibit “A” attached hereto and incorporated by reference, or as may be modified or amended from time to time by a resolution of change or resolution of annexation, including supplemental rates and ethods of apportionment relating to a special improvement area, adopted pursuant to the provisions of the Act (the “RMA”), in an amount necessary to finance a portion of the cost of providing facilities and/or services that are in addition to those provided in the territory within Improvement Area No. 2, or subsequent annexations prior to the annexation of Improvement Area No. 2, or subsequent annexations, as applicable, into the CFD.
By passage of this Ordinance, the City Council authorizes the levy of a special tax for any approved future annexations in accordance with the then-existing RMA.
Section 2. Unless amended by resolution, this legislative body is hereby further authorized each year as provided in section 53340 of the Act, by resolution adopted, to determine the specific special tax rates and amounts to be levied for the next fiscal year in accordance with the then existing and approved RMA and to prepare or cause to be prepared a list of all nonexempt parcels within the CFD and the specific amount of the special taxes for each parcel, except that the special tax rates to be levied shall not exceed the maximum set forth in the then existing and approved RMA.”
Section 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution of Annexation and any resolution of change or resolution of annexation adopted from time to time by the Council.
Section 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure sale and lien priority in cases of delinquency as is provided for ad valorem taxes; provided, however, the CFD may collect the authorized special tax at a different time or in a different manner if necessary to meet its financial obligations.
Section 5. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of
the adopted ordinance along with the names of the Council Members voting for and against the ordinance.
Section 6. This Ordinance relating to the levy of the special tax takes effect and shall be in force immediately after the date of final passage pursuant to Government Code Section 36937(a). A copy of this Ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside County.
INTRODUCED AND APPROVED UPON FIRST READING this 7th day of November, 2022, upon the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
PASSED, APPROVED AND ADOPTED UPON SECOND READING this __ day of November, 2022, upon the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
WILLIAM DAVIS, MAYOR
ATTEST:
DARLENE GERDES, CITY CLERK
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT
NOTICE OF ADOPTION OF ORDINANCE NO. 385
NOTICE IS HEREBY GIVEN that on ______________, 2022, at the Council Chambers of the City of Calimesa, 908 Park Avenue, Calimesa, California 92320, the City Council of the City of Calimesa, in its capacity as the legislative body of the City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails), adopted Ordinance No. _____. A summary of Ordinance No. ____ follows and is marked as Exhibit “A”. At said time and place the testimony of all interested persons or taxpayers for or against said ordinance was heard.
Ordinance No. ______ was adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
CITY COUNCIL OF THE CITY OF CALIMESA,
ACTING AS THE LEGISLATIVE BODY OF THE
CITY OF CALIMESA COMMUNITY
FACILITIES DISTRICT NO. 2018-1
(SUMMERWIND TRAILS)
Dated: _________________, 2022 By
Darlene Gerdes
City Clerk of the City of Calimesa
EXHIBIT B
BEFORE THE CITY COUNCIL OF THE CITY OF CALIMESA IN ITS CAPACITY
AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SUMMERWIND TRAILS)
IN THE MATTER OF Authorizing the
Levy of a Special Tax Within
Improvement Area No. 2 Annexed to
City of Calimesa Community Facilities
District No. 2018-1 (summerwind Trails)
) ORDINANCE NO. 385 SUMMARY
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The ordinance authorizes the levy of an annual special tax within Improvement Area No. 2, and future annexations, if any, annexed to City of Calimesa Community Facilities District No. 2018-1 (Summerwind Trails) (the “CFD”), collected in the same manner as ordinary ad valorem taxes, in an amount necessary to finance a portion of the cost of providing park landscape maintenance, lighting maintenance, including traffic signals, streets and sidewalk maintenance, street landscape maintenance, storm drain and detention basin maintenance services that are in addition to those provided in the territory within Improvement Area No. 2, and future annexation areas, prior to the annexation of Improvement Area No. 2, and such future annexation areas, to the CFD, which is necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within Improvement Area No. 2 or such future annexation areas.
DATED: ____________________, 2022 CITY OF CALIMESA
By:
Darlene Gerdes
City Clerk of the City of Calimesa
ATTACHMENT F
CFD Report for Annexation of Annexation Area
No. 3 to CFD No. 1 (Law Enforcement, Fire,
Paramedic and Park Maintenance Services)
(including Rate and Method of Apportionment).
CITY OF CALIMESA
PUBLIC SERVIES
COMMUNITY FACILITIES DISTRICT
NO. 1 (LAW ENFORCEMENT, FIRE,
PARAMEDIC AND PARK MAINTENANCE
SERVICES),
ANNEXATION NO. 3
PUBLIC REPORT
NOVEMBER 7, 2022
CITY OF CALIMESA
CITY COUNCIL
WILLIAM “BILL” DAVIS, MAYOR
JEFF CERVANTEZ, MAYOR PRO TEM
LINDA MOLINA, COUNCIL MEMBER
WENDY HEWITT, COUNCIL MEMBER
WYNONA DUVALL, COUNCIL MEMBER
CITY MANAGER
BONNIE JOHNSON
FINANCE DIRECTOR
CELESTE REID
October 2022 Community Facilities District No. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) Annexation No. 3
City of Calimesa
TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................................ 1 A. DESCRIPTION OF PSCFD NO. 1 ................................................................................................... 1 B. DESCRIPTION OF SERVICES ....................................................................................................... 2 C. BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT ............................................. 2 D. COST ESTIMATE.............................................................................................................................. 2 E. RATE AND METHOD OF APPORTIONMENT ........................................................................... 2 F. GENERAL TERMS AND CONDITIONS ....................................................................................... 3 EXHIBIT A – BOUNDARY MAP .......................................................................................................... A-1 EXHIBIT B – COST ESTIMATES .........................................................................................................B-1 EXHIBIT C- RATE AND METHOD OF APPORTIONMENT .......................................................... C-1
November 7, 2022 1 Community Facilities District No. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) Annexation No. 3, City of Calimesa
Introduction
The City Council of the City of Calimesa (the “Council”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), on October 3, 2022 adopt a resolution entitled “Resolution of Intention of the City Council of the City of Calimesa, Acting as the Legislative Body of the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services), Declaring its Intention to Annex Property into said District and to Authorize the Levy of a Special Tax within Annexation Area No. 3” (the “Resolution of Intention”). In the Resolution of Intention the Council expressly ordered the preparation of a written Community Facilities District Report (the “Report”) for Annexation Area No. 3, for the proposed Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services), Improvement Area No. 2 (“PSCFD No. 1,” or the “District”).
The Resolution of Intention ordering the Report did direct that the Report generally contain the following:
1. a brief description the Services which are required to adequately meet the needs of PSCFD No. 1; and
2. an estimate of the cost of providing the Services, including an estimate of the fair and reasonable cost of all Incidental Expenses, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other expenses incidental to the construction, completion and inspection of the authorized work to be paid through the proposed financing, and the costs associated with the providing the authorized Services.
For particulars, reference is made to the Resolution of Intention (Resolution Number 2022-57) for the District, as previously approved and adopted by Council.
Now, Therefore Koppel & Gruber Public Finance, the appointed responsible firm directed to prepare the Report, does hereby submit the following:
A. Description of PSCFD No. 1, Annexation No. 3
PSCFD No. 1, Annexation No. 3 is comprised of approximately 160 net acres of commercially zoned land in the City of Calimesa known as Oak Valley Town Center. A map showing the boundaries of Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services), Annexation No. 3 is included in Exhibit “A” of this Report. Table 1 below shows the minimum taxable acreage for Annexation No. 3.
November 7, 2022 2 Community Facilities District No. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) Annexation No. 3, City of Calimesa
PSCFD NO. 1, ANNEXATION NO. 3 MINIMUM TAXABLE ACREAGE
Annexation No. 3 159.36
B. Description of Services
The purpose of PSCFD No. 1 is to provide for the cost of providing (1) police protection services, (2) fire protection/paramedic services, and (3) park maintenance services that are in addition to those provided in the territory within the CFD prior to the formation of CFD No. 1 and (4) the incidental expenses related to financing, forming and administering PSCFD No. 1.
C. Boundaries of Annexation No. 3
A reduced map of the boundaries of PSCFD No. 1, Annexation No. 3 titled “Annexation Map No. 3, Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services)” is included in Exhibit “A” and is incorporated herein.
A full-scale map is on file with the Clerk of the City of Calimesa and was recorded with the County Recorder in the County of Riverside in Book 89 of Maps of Assessment and Community Facilities Districts, Page 82, Document Number 2022-0424895.
D. Cost Estimate
As discussed above, PSCFD No. 1, Annexation No. 3 includes the costs of Services. The budget for Annexation No. 3 Services is estimated at $533,563 for fiscal year 2022/2023, based on the special taxes expected to be generated from the annexation.
The estimated costs of the Services are shown in 2022 dollars. For particulars on the estimated cost of Services, reference is made to Exhibit “B” of this Report.
E. Rate and Method of Apportionment
The Rate and Method of Apportionment provides sufficient information to allow a property owner within Improvement Area No. 3 of PSCFD No. 1 to estimate the Maximum Special Tax B for his or her property.
November 7, 2022 3 Community Facilities District No. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) Annexation No. 3, City of Calimesa
For particulars on the Rate and Method of apportionment, reference is made to Exhibit “C” of this report. The table below provide the fiscal year 2022/2023 special tax rates.
CLASSIFICATION
FY 2022/2023
MAXIMUM SPECIAL TAX
Single Family Residential Property $669.62 per Unit
Multi-Family Property $502.23 per Unit
Non-Residential Property $3,348.16 per Acre
F. General Terms and Conditions
The description of the Services is general in nature. The final nature and location of the Services that will be provided and/or maintained will be determined upon approval of such Services.
November 7, 2022 Community Facilities District No. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) City of Calimesa
A - 1
EXHIBIT A
BOUNDARY MAP FOR
ANNEXATION NO. 3
PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) A reduced copy of the Boundary Map follows. The original of such map is on file in the Office of the City Clerk and in the records of the County Recorder, County of Riverside, State of California.
November 7, 2022 Community Facilities District No. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) City of Calimesa
A -2
November 7, 2022 Community Facilities District No. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) City of Calimesa
B - 1
EXHIBIT B
COST ESTIMATES
Services Budget
The budget below reflects the maintenance costs for Annexation No. 3. The Special Tax will be levied each fiscal year based on the methodology set out in the Rate and Method of Apportionment based on the proportions set forth at the time of formation. The total costs for Services are estimates only. The City has the ability to reallocate amounts between line items as long as the total costs do not exceed the total budgeted amounts, which are subject to escalation
Annexation No. 3
Services Budget Fiscal Year 2022/2023
DIRECT COSTS TOTAL
Police Services $231,984
Fire Services 143,830
Park Maintenance 157,749
Total Estimated Budget $533,563
November 7, 2022 Community Facilities District No. 1
(Law Enforcement, Fire, Paramedic and Park Maintenance Services) City of Calimesa
C - 1
EXHIBIT C
CITY OF CALIMESA
PUBLIC SERVICES COMMUNITY FACILITIES
DISTRICT NO. 1
(LAW ENFORCEMENT, FIRE, PARAMEDIC AND
PARK MAINTENANCE SERVICES)
RATE AND METHOD OF APPORTIONMENT
A Special Tax shall be levied on all Taxable Property within the boundaries of the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (“CFD No. 1”) and collected each Fiscal Year commencing in Fiscal Year 2006-2007 according to the tax liability determined by the City Council, through the application of the rate and method of apportionment of the Special Tax set forth below. All Taxable Property shall be taxed to the extent and in the manner herein provided.
1. Definitions
“Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, or other recorded County parcel map. An Acre means 43,560 square feet of land. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
“Administrative Expenses” means the costs incurred by the City to determine, levy and collect the Special Taxes, including salaries of City employees and the fees of consultants and the costs of collecting installments of the Special Taxes upon the general tax rolls; preparation of required reports, and any other costs required to administer CFD No. 1 as determined by the City.
“Annual Cost(s)” means for each Fiscal Year, the total of 1) the estimated cost of Services as determined by the City; 2) Administrative Expenses, and 3) any amounts needed to cure actual or projected delinquencies in Special Taxes for the current or previous Fiscal Year.
“Annual Tax Escalation Factor” means an increase in the Maximum Special Tax each year following the Base Year in an amount not to exceed the greater of Consumer Price Index (All Items) for Los Angeles – Riverside – Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year or two percent (2%) annually. “Assessor” means the Assessor of the County of Riverside.
City of Calimesa 1 Public Services
Community Facilities District No. 1
“Assessor's Parcel” means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor designating parcel(s) by Assessor’s Parcel Number(s).
“Assessor's Parcel Number” means the number assigned to an Assessor’s Parcel by the County for purposes of identification.
“Base Year” means Fiscal Year ending June 30, 2007.
“CFD No. 1” means the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance). “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Costs and preparing the annual Special Tax roll. “City” means the City of Calimesa, California.
“City Council” means the City Council of the City of Calimesa which acts for CFD No. 1 under the Act.
“County” means the County of Riverside, California.
“Developed Property” means for each Fiscal Year, commencing with Fiscal Year 2006- 2007, each Assessor’s Parcel, for which a building permit for new construction was issued, prior to May 1 of the previous Fiscal Year.
“Exempt Property” means an Assessor’s Parcel that is not classified as Taxable Property. Exempt Property is not subject to the Special Tax. “Fiscal Year” means the period starting on July 1 and ending the following June 30. “Land Use Class” means any of the classes listed in Table 1 under Section 3 below. “Maximum Special Tax” means the greatest amount of Special Tax, determined in accordance with Section 3 below, which may be levied in any Fiscal Year on any Assessor’s Parcel.
“Multi-Family” means all Residential Property for which a building permit has been issued for attached residential units or manufactured home for which an Assessor’s Parcel Number is not assigned.
“Non-Residential Property” means all Developed Property for which a building permit(s) was issued for a non-residential use.
“Public Property” means any property within the boundaries of CFD No. 1, the ownership of which is transferred to a public agency of CFD No. 1, and is used for rightsof-way or any other purpose and is owned by, or irrevocably offered for dedication to the City of Calimesa 2 Public Services
Community Facilities District No. 1
federal government, the State of California, the County, the City or any other public agency where the public agency has officially agreed to accept the offer of dedication; provided however that any property owned by a public agency and leased to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use.
“Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units.
“Services” means services, including 1) police protection services, 2) fire protection/paramedic services, and 3) park maintenance services that are in addition to those services that were provided within the boundaries of CFD 1 at the time of formation of CFD 1.
“Single-Family” means all Residential Property for which a building permit has been issued for single family detached residential development or manufactured home for which an Assessor’s Parcel Number is assigned.
“Special Tax” means any special tax authorized to be levied within CFD No. 1 pursuant to the Act and this Rate and Method of Apportionment.
“State” means the State of California.
“Taxable Property” means all of the Assessor's Parcels within the boundaries of CFD 1 that are classified as Residential Property or Non-Residential Property.
2. Land Use Classification
Each Fiscal Year, each Assessor’s Parcel within the boundaries of CFD No. 1 shall be classified as Taxable Property, Public Property or Exempt Property. Each Assessor’s Parcel of Taxable Property shall be classified as Residential Property or NonResidential Property. Each Assessor’s Parcel of Residential Property shall be further classified as either a Single-Family or a Multi-Family .
City of Calimesa 3 Public Services
Community Facilities District No. 1
3. Maximum Special Tax Rates
Table 1
Fiscal Year 2006/2007
Maximum Special Tax Rates
Land Use
Class Description
Maximum
Special Tax
1 Residential Property
Single-Family $429.65 per Unit
2 Residential Property
Multi-Family $322.24 per Unit
3 Non-Residential Property $2,148.27 per Acre
Escalation of Maximum Special Tax
Each Fiscal Year following the Base Year, the Maximum Special Tax shall be increased in accordance with the Annual Tax Escalation Factor and otherwise adjusted as provided in this rate and method of apportionment.
Multiple Land Use Classes
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Taxes for all Land Use Classes located on that Assessor’s Parcel. For an Assessor’s Parcel that contains both Residential Property and Non-Residential Property, the Acreage of such Assessor’s Parcel shall be allocated to each type of property based on the amount of Acreage designated for each Land Use Class as determined by reference to the site plan approved for such Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
4. Method of Apportionment
For each Fiscal Year, commencing Fiscal Year 2006/2007, the CFD Administrator shall determine the Annual Costs and calculate the Special Tax so that the amount of Special Taxes equals the Annual Costs. The Special Tax shall be levied on Taxable Property each Fiscal Year as follows:
First: Calculate the available Special Tax revenues by setting the Special Tax on each Assessor’s Parcel of Taxable Property at 100% of its Maximum Special Tax. If revenues are greater than the Annual Costs, then reduce the Special Tax City of Calimesa 4 Public Services
Community Facilities District No. 1
proportionately against all Assessor’s Parcels until the tax levy is set at an amount sufficient to cover the Annual Costs.
Second: Levy on each Assessor’s Parcel of Taxable Property the amount calculated above. No Special Tax shall be levied on Exempt Property.
The City shall make every effort to correctly assign the number of taxable units and calculate the Special Tax for each Assessor’s Parcel.
5. Collection of Special Taxes
Collection of the Special Tax shall be by the County in the same manner as ordinary ad valorem property taxes are collected and the Special Tax shall be subject to the same penalties and the same lien priority in the case of delinquency as ad valorem taxes; provided, however, that the City Council may provide for other means of collecting the Special Tax if necessary to meet its financial obligations, including direct billings to the property owners.
6. Administrative Changes and Appeals
Any landowner who pays the Special Tax and claims the amount of the Special Tax levied on his or her Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error not later than twelve (12) months after first having paid the first installment of the Special Tax that is disputed. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may recommend changing the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner believes such error still exists, such person may file a written notice with the City Manager or designee of the City appealing the amount of the Special Tax levied on such Assessor’s Parcel. Upon the receipt of such notice, the City Manager or designee may establish such procedures as deemed necessary to undertake the review of any such appeal. The City Manager or designee thereof shall interpret this Rate and Method of Apportionment and make determinations relative to the administration of the Special Tax and any landowner appeals. The decision of the City Manager or designee shall be final and binding as to all persons.
Interpretations may be made by Resolution of the City Council for purposes of clarifying any vagueness or ambiguity as it relates to the Special Tax, the Rate and Method of Apportionment, the classification of properties, or any definition applicable to CFD No. 1.
7. Term of Special Tax
The Special Tax shall be levied annually in perpetuity, unless terminated earlier by the City Council.
City of Calimesa 5 Public Services
Community Facilities District No. 1
ATTACHMENT G
Resolution Determining Validity of Prior
Proceedings and Calling Election for
Annexation Area No. 3 to CFD No. 1 (Law
Enforcement, Fire, Paramedic and Park
Maintenance Services)
RESOLUTION NO. 2022-68
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA
DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS RELATING
TO ANNEXATION OF PROPERTY INTO CITY OF CALIMESA PUBLIC
SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW
ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE
SERVICES), AND CALLING SPECIAL ELECTION RELATED TO
ANNEXATION AREA NO. 3
WHEREAS, the City Council (the “Council”) of the City of Calimesa, California (the “City”), has heretofore formed the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”); WHEREAS, the City Council, acting as the legislative body of the CFD, has heretofore adopted Resolution No. 2022-57 (the “Resolution of Intention to Annex”) stating its intention to annex certain property to the CFD (“Annexation Area No. 3”) pursuant to the Act; and WHEREAS, a copy of the Resolution of Intention to Annex incorporating a description and map of the proposed boundaries of Annexation Area No. 3, and setting forth the rate and method of apportionment (the “RMA”) and manner of collection of the special tax to be levied within Annexation Area No. 3, which will be used to finance the cost of providing certain services and maintenance, including but not limited to, law enforcement, fire, paramedic and park maintenance services (the “Services”) that are in addition to those provided in the territory within Annexation Area No. 3 prior to the annexation of Annexation Area No. 3 to the CFD and do not supplant services already available within the territory proposed to be included in Annexation Area No. 3, is on file with the City Clerk and is incorporated herein by reference; and WHEREAS, the Resolution of Intention to Annex set November 7, 2022 as the date of the public hearing on the annexation of Annexation Area No. 3 to the CFD and this Council held the said public hearing as required by law; and
WHEREAS, prior to the commencement of the hearing, there was filed with the City Council a Community Facilities Report prepared by Koppel & Gruber Public Finance (the “CFD Report”) containing a boundary map of Annexation Area No. 3, a description of the Services, an estimate of the costs of the Services and incidental expense to be financed by properties within Annexation Area No. 3, and the CFD Report has been reviewed by the Council and is incorporated herein and made a part of the record of the public hearing; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of proposed Annexation Area No. 3 to the CFD were heard and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to the Council on said matters before it, and this Council at the conclusion of said hearing is fully advised in the premises.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CALIMESA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES), AS FOLLOWS:
Section 1. Pursuant to Section 53325.1(b) of the Government Code, the Council finds and determines that the proceedings prior hereto were valid and in conformity with the requirements of the Act.
Section 2. The description and map of the boundaries of Annexation Area No. 3 on file in the City Clerk’s office and as described in of Intention to Annex and incorporated herein by reference, shall be the boundaries of Annexation Area No. 3. The map of the proposed boundaries of Annexation Area No. 3 has been recorded in the Office of the County Recorder of Riverside County, California in Book 89, page 81 of the Book of Maps of Assessments and Community Facilities Districts (Instrument Number 2022-0424895.
Section 3. Except where funds are otherwise available, it is proposed that there shall be levied annually in accordance with procedures contained in the Act, the Special Tax sufficient to finance the Services that are in addition to those provided in the territory within Annexation Area No. 3 prior to the annexation thereof to the CFD and do not supplant services already available within the territory proposed to be included in Annexation Area No. 3. The RMA and manner of collection is described in detail in Exhibit “A” attached to the Resolution of Intention to Annex and incorporated herein by this reference. The Special Tax shall be utilized to pay for authorized services.
Section 4. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all taxable real property in Annexation Area No. 3, and this lien shall continue in force and effect until the special tax obligation is canceled in accordance with law or until collection of the tax by the City ceases.
Section 5. Council finds that the Services are necessary to meet the increased demand put upon the City as a result of the development within Annexation Area No. 3.
Section 6. The Council finds that there is not an ad valorem property tax currently being levied on property within Annexation Area No. 3 for the exclusive purpose of financing law enforcement, fire, paramedic and park maintenance services.
Section 7. Written protests against annexation of Annexation Area No. 3, or against the furnishing of specified services or the levying of a specified special tax within Annexation Area No. 3, have not been filed by fifty percent (50%) or more of the registered voters or property owners of one-half (1/2) or more of the area of land within either the existing CFD or Annexation Area No. 3.
Section 8. Pursuant to Government Code Section 53353.5, the Council hereby submits to the qualified electors of Annexation Area No. 3 a proposition (the “Proposition”) to annex into the CFD Annexation Area No. 3 and to levy special taxes on property within Annexation Area No. 3 in accordance with the RMA. The Proposition is attached as Exhibit “A.”
Section 9. A special election is hereby called for the Annexation Area No. 3 within the CFD on the Proposition set forth in Section 8 above.
Section 10. The Council hereby directs that the election be conducted by the City Clerk of the City of Calimesa, as the elections official.
Section 11. The City Clerk shall mail or hand deliver the ballots to the landowners immediately upon the adoption of this Resolution.
Section 12. The time for notice having been waived by the qualified electors, the date of the special election for the annexation of Annexation Area No. 3 to the CFD on the applicable proposition shall be on the 7
th day of November, 2022. The voter ballots shall each be returned to the City Clerk at 908 Park Avenue, Calimesa, California, no later than 11:00 o’clock p.m. on November 7, 2022. The election may be closed with the concurrence of the City Clerk, as soon as all of the ballots for such election are returned.
Section 13. The Council finds and determines that there were no registered voters residing within the territory of proposed Annexation Area No. 3 at the time of the protest hearing and ninety (90) days prior thereto. The requirements of Section 53326 of the Government Code having been waived by all of the landowners, the ballots for the special election shall be personally delivered to the landowners within Annexation Area No. 3. Each landowner shall have one (1) vote for each acre or portion thereof that he or she owns within Annexation Area No. 3 as provided by Section 53326 of the Act.
Section 14. Annexation Area No. 3 within the CFD shall constitute a single election precinct for the purpose of holding said election relating to Annexation Area No. 3.
Section 15. The City Clerk is directed to certify and attest to this Resolution and to take any and all necessary acts to call, hold, canvass and certify an election or elections on the levy of the special tax.
Section 16. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED, APPROVED AND ADOPTED this 7
th day of November, 2022, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
WILLIAM DAVIS, MAYOR
ATTEST:
DARLENE GERDES, CITY CLERK
YES
NO
EXHIBIT A
CITY OF CALIMESA
PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1
(LAW ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES) ANNEXATION AREA NO. 3
SPECIAL TAX ELECTION
November 7, 2022
To vote, mark an “X” in the voting square after the word “YES” or after the word “NO.” All marks otherwise made are forbidden.
This ballot is provided to ___________________________________, as owner or authorized representative of such owner of land within Annexation Area No. 3 of City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) and represents ___ votes.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Calimesa at 908 Park Avenue, Calimesa, California 92320.
PROPOSITION Shall City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (the “CFD”) annex property known as Annexation Area No. 3 and be authorized to levy special taxes within Annexation Area No. 3 of the CFD pursuant to the rate and method of apportionment of special taxes (the “RMA”) set forth in Resolution No. 2022-57 to finance the authorized services, all as provided for in the RMA?
ATTACHMENT H
Resolution Canvassing Results of Election for
Annexation Area No. 3 to CFD No. 1 (Law
Enforcement, Fire, Paramedic and Park
Maintenance Services)
RESOLUTION NO. 2022-69
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA ACTING ON
BEHALF OF CITY OF CALIMESA PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE, PARAMEDIC AND PARK
MAINTENANCE SERVICES) CANVASSING THE RESULTS OF THE ELECTION HELD WITHIN ANNEXATION AREA NO. 3 PROPOSED TO BE ANNEXED TO SAID
DISTRICT
WHEREAS, the City Council (the “Council”) of the City of Calimesa, California has previously conducted proceedings pertaining to the annexation of certain property (“Annexation Area No. 3”), into the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (the “CFD”), the rate and method of apportionment of a special tax to finance the cost of providing certain public services (the “Services”), and the calling of an election in regard to the foregoing; and WHEREAS, the landowners of record within the CFD as of the close of the public hearing held on November 7, 2022 unanimously consented to a waiver of the time limits for setting the election and a waiver of any written analysis, arguments or rebuttals as set forth in California Government Code sections 53326 and 53327. Such waivers are set forth in the written petition executed by the landowners which is on file with the City Clerk as election official (the “Election Official”) concurring therein; and
WHEREAS, on November 7, 2022, an election was held within Annexation Area No. 3 regarding annexation to the CFD and the levy of a proposed special tax in accordance with the rate and method of apportionment of special tax (the “RMA”); and WHEREAS, there has been presented to the Council a Certificate of the Election Official as to the Results of the Canvass of the Election Returns (the “Certificate of the Election Official”), a copy of which is attached hereto as Exhibit “A”; and
WHEREAS, at such election the proposal for the annexation of Annexation Area No. 3 to the CFD and the levy of a special tax pursuant to the RMA for nonexempt parels within Annexation Area No. 3 was approved by the qualified electors of Annexation Area No. 3;
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CALIMESA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES), AS FOLLOWS:
Section 1. It is hereby determined that the election conducted within Annexation Area No. 3 was duly and validly conducted.
Section 2. The canvass of the votes cast at the special election held in Annexation Area No. 3 within the CFD on November 7, 2022, as shown in the Certificate of the Election Official attached hereto, is hereby approved and confirmed.
Section 3. The Proposition presented to the qualified electors within Annexation Area No. 3 of the CFD for receipt by the Election Official on November 7, 2022, has carried.
Section 4. The Council, acting as the legislative body of the CFD, is authorized to annex Annexation Area No. 3 to the CFD and to levy the special tax on behalf of the CFD on nonexempt properties within Annexation Area No. 3.
Section 5. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED, APPROVED AND ADOPTED this 7th day of November, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
WILLIAM DAVIS, MAYOR
ATTEST:
DARLENE GERDES, CITY CLERK
EXHIBIT A
CITY OF CALIMESA
PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW
ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES)
CERTIFICATE OF THE ELECTION OFFICIAL
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF CALIMESA )
I, DARLENE GERDES, City Clerk in my capacity as Elections Official in the City of Calimesa, California, in its capacity as the legislative body of the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (the “CFD”), DO HEREBY CERTIFY, that pursuant to the provisions of Section 53325.4 of the Government Code and Division 15, commencing with Section 15000 of the Elections Code of the State of California, I did canvass the return of the votes cast at the Special Election on November 7, 2022, held in
CITY OF CALIMESA PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES) – ANNEXATION AREA NO. 3
I FURTHER CERTIFY that the Statement of All Votes Cast, to which this certificate is attached, shows the total number of ballots cast within the property within Annexation Area No. 3 of the CFD for the Proposition, and the totals of the respective columns and the totals as shown for the Proposition are full, true and correct.
WITNESS my hand and Official Seal this 7
th day of November, 2022.
CITY OF CALIMESA, CALIFORNIA, acting as
the LEGISLATIVE BODY OF THE CITY OF
CALIMESA PUBLIC SERVICES COMMUNITY
FACILITIES DISTRICT NO. 1 (LAW
ENFORCEMENT, FIRE, PARAMEDIC AND
PARK MAINTENANCE SERVICES)
By: ______________________________________
DARLENE GERDES, City Clerk
CITY OF CALIMESA
PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW
ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES)
STATEMENT OF ALL VOTES CAST
SPECIAL ELECTION
FOR ANNEXATION AREA NO. 3
NOVEMBER 7, 2022
Qualified Landowner Votes Votes Cast YES NO
222
ATTACHMENT I
Resolution Annexing Annexation Area No. 3 to
CFD No. 1 (Law Enforcement, Fire, Paramedic
and Park Maintenance Services)
RESOLUTION NO. 2022-70
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA,
ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA
PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW
ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE
SERVICES), ANNEXING ANNEXATION AREA NO. 3 TO SAID
DISTRICT AND AUTHORIZING THE LEVY OF A SPECIAL TAX
WITHIN SAID ANNEXATION AREA NO. 3
WHEREAS, on October 3, 2022, the City Council (the “ City Council”) of the City of Calimesa, California (the “City”), acting as the legislative body of the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (the “CFD”), adopted Resolution No. 2022-57 (the “Resolution of Intention to Annex”) stating its intention to annex certain property (“Annexation Area No. 3”) into the CFD pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”); and WHEREAS, notice was published as required by law relative to the intention of the City Council to annex into the CFD Annexation Area No. 3; and WHEREAS, on November 7, 2022, this City Council held a duly noticed public hearing as required by law relative to the determination to proceed with the annexation into the CFD of Annexation Area No. 3; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation into the CFD of Annexation Area No. 3 were heard and a full and fair hearing was held; and
WHEREAS, the City Council subsequent to said hearing adopted a resolution determining the validity of prior proceedings relative to the annexation into the CFD of Annexation Area No. 3 and the authorization of the levy of a special tax within Annexation Area No. 3 and called an election within Annexation Area No. 3 for November 7, 2022, on the proposition of annexing into the CFD and the levying of a special tax for such annexation; and WHEREAS, on November 7, 2022, an election was held within Annexation Area No. 3 in which the eligible electors of such annexation approved by more than two-thirds vote the proposition of annexing into the CFD and the levying of a special tax within Annexation Area No. 3; and
WHEREAS, this Legislative Body, by the adoption of an ordinance (the “Ordinance”), as authorized by Section 53340 of the Act, will authorize the levy of such special taxes within Annexation Area No. 3;
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CALIMESA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA
PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES), AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. Annexation Area No. 3 is hereby annexed into the CFD and hereafter all references to the CFD shall include Annexation Area No. 3.
Section 3. A special tax (the “Special Tax”) shall be levied within the boundaries of Annexation Area No. 3 pursuant to the rate and method of apportionment set forth in Exhibit “A” attached to the Resolution of Intention to Annex and incorporated by reference (the “RMA”), in an amount necessary to finance all or a portion of the cost of providing certain public services and maintenance that are in addition to those provided in the territory within Annexation Area No. 3 prior to the annexation to the CFD, periodic costs, and costs of the tax levy and collection.
Section 4. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby continues the following accountability measures pertaining to the levy by the CFD of the Special Tax above:
(1) Such Special Tax shall be levied for the specific purposes set forth in Section 3 hereof.
(2) The proceeds of the levy of such Special Tax shall be applied only to the specific purposes set forth in Section 3 hereof.
(3) The CFD shall establish an account or accounts into which the proceeds of such Special Tax shall be deposited.
(4) The City Manager, or his or her designee, acting for and on behalf of the CFD, shall annually file a report with the Council as required pursuant to Government Code Section 50075.3.
Section 5. The Office of the City Manager, 908 Park Avenue, Calimesa, California 92320, (909) 795-9801, or its designee, is designated to be responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number and for estimating future special tax levies pursuant to Section 53340.1 of the Government Code.
Section 6. This resolution shall become effective upon its passage and adoption.
PASSED, APPROVED AND ADOPTED this 7th day of November, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
WILLIAM DAVIS, MAYOR
ATTEST:
DARLENE GERDES, CITY CLERK
ATTACHMENT J
Ordinance Levying Special Tax within
Annexation Area No. 3 of CFD No. 1 (Law
Enforcement, Fire, Paramedic and Park
Maintenance Services)
ORDINANCE NO. 386
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CALIMESA ACTING AS
THE LEGISLATIVE BODY OF CITY OF CALIMESA PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE,
PARAMEDIC AND PARK MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX WITHIN ANNEXATION AREA NO. 3 ANNEXED TO
SAID DISTRICT AND PROVIDING FOR FUTURE ANNEXATIONS
WHEREAS, on October 3, 2022, the City Council (the “Council”) of the City of Calimesa, California (the “City”), acting as the legislative body of the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (the “CFD”), adopted Resolution No. 2022-57 stating its intention to annex certain properties as referenced by “Annexation Map No. 3 – City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services)”, Recorded in Office of the County Recorder of Riverside County, California, in Book 89, page 81 of the Book of Maps of Assessments and Community Facilities Districts (Instrument Number 2022-0424895) (“Annexation Area No. 3”), into the CFD pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the “Act”); and WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area No. 3 into the CFD; and
WHEREAS, on November 7, 2022, this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No. 3 into the CFD and authorization of the special tax to be levied in accordance with the rate and method of apportionment and manner of collection of the special tax within Annexation Area No. 3 to finance certain public services; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No. 3 were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2022-68 determining the validity of prior proceedings relative to the annexation of Annexation Area No. 3 and called an election within Annexation Area No. 3 for November 7, 2022 on the proposition of annexing Annexation Area No. 3 into the CFD and levying a special tax on nonexempt properties within Annexation Area No. 3; and
WHEREAS, on November 7, 2022 an election was held within Annexation Area No. 3 in which the eligible electors of Annexation Area No. 3 approved by more than two-thirds vote the proposition of annexing into the CFD and levying a special tax; and WHEREAS, the Council subsequent to said election adopted Resolution No. 2022-70 (the “Resolution of Annexation”) which annexed Annexation Area No. 3 into the CFD and authorized the levy of a special tax; and
WHEREAS, the Council desires to encompass all future annexations of the CFD and clarify the rate and method of apportionment to be utilized as that which is amended for such annexations or as a result of a resolution of change;
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CALIMESA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE, PARAMEDIC AND PARK MAINTENANCE SERVICES), AS FOLLOWS:
Section 1. A special tax is levied within the boundaries of Annexation Area No. 3 pursuant to the formula set forth in the Rate and Method of Apportionment of Special Tax set forth in Exhibit “A” attached hereto and incorporated by reference, or as may be modified or amended from time to time by a resolution of change or resolution of annexation adopted pursuant to the provisions of the Act (the “RMA”), in an amount necessary to finance a portion of the cost of providing law enforcement, fire, paramedic and park maintenance services that are in addition to those provided in the territory within Annexation Area No. 3 prior to the annexation of Annexation Area No. 3 into the CFD.
By passage of this Ordinance, the City Council authorizes the levy of a special tax for any approved future annexations in accordance with the then-existing RMA.
Section 2. Unless amended by resolution, this legislative body is hereby further authorized each year as provided in section 53340 of the Act, by resolution adopted, to determine the specific special tax rates and amounts to be levied for the next fiscal year in accordance with the then existing and approved RMA and to prepare or cause to be prepared a list of all nonexempt parcels within the CFD and the specific amount of the special taxes for each parcel, except that the special tax rates to be levied shall not exceed the maximum set forth in the then existing and approved RMA.”
Section 3. All of the collections of the special tax shall be used as provided for in the Act and Resolution of Annexation and any resolution of change or resolution of annexation adopted from time to time by the Council.
Section 4. The above authorized special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall be subject to the same penalties and the same procedure sale and lien priority in cases of delinquency as is provided for ad valorem taxes; provided, however, the CFD may collect the authorized special tax at a different time or in a different manner if necessary to meet its financial obligations.
Section 5. The Mayor shall sign this ordinance and the City Clerk shall attest to such signature. The City Clerk is directed to cause the title and summary or text of the this ordinance, together with the vote thereon, to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated within the territorial jurisdiction of the City, and to post at the main office of the City a certified copy of the full text of the adopted ordinance along with the names of the Council Members voting for and against the ordinance.
Section 6. This Ordinance relating to the levy of the special tax takes effect and shall be in force immediately after the date of final passage pursuant to Government Code Section 36937(a). A copy of this Ordinance shall be transmitted to the Clerk of the Board of Supervisors of Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside County.
INTRODUCED AND APPROVED UPON FIRST READING this 7th day of November, 2022, upon the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
PASSED, APPROVED AND ADOPTED UPON SECOND READING this 21st day of November, 2022, upon the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
WILLIAM DAVIS, MAYOR
ATTEST:
DARLENE GERDES, CITY CLERK
APPROVED AS TO FORM:
QUINN BARROW, CITY ATTORNEY
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT
NOTICE OF ADOPTION OF ORDINANCE NO. 386
NOTICE IS HEREBY GIVEN that on ______________, 2022, at the Council Chambers of the City of Calimesa, 908 Park Avenue, Calimesa, California 92320, the City Council of the City of Calimesa, in its capacity as the legislative body of the City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services), adopted Ordinance No. _____. A summary of Ordinance No. ____ follows and is marked as Exhibit “A”. At said time and place the testimony of all interested persons or taxpayers for or against said ordinance was heard.
Ordinance No. ______ was adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
CITY COUNCIL OF THE CITY OF CALIMESA,
ACTING AS THE LEGISLATIVE BODY OF THE
CITY OF CALIMESA PUBLIC SERVICES
COMMUNITY FACILITIES DISTRICT NO. 1
(LAW ENFORCEMENT, FIRE, PARAMEDIC
AND PARK MAINTENANCE SERVICES)
Dated: _________________, 2022 By
Darlene Gerdes
City Clerk of the City of Calimesa
EXHIBIT B
BEFORE THE CITY COUNCIL OF THE CITY OF CALIMESA IN ITS CAPACITY
AS THE LEGISLATIVE BODY OF THE CITY OF CALIMESA PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT NO. 1 (LAW ENFORCEMENT, FIRE,
PARAMEDIC AND PARK MAINTENANCE SERVICES)
IN THE MATTER OF Authorizing the
Levy of a Special Tax Within Annexation
Area No. 3 Annexed to City of Calimesa
Public Services Community Facilities
District No. 1 (Law Enforcement, Fire,
Paramedic and Park Maintenance
Services)
) ORDINANCE NO. 386 SUMMARY
)
)
)
)
)
)
The ordinance authorizes the levy of an annual special tax within Annexation Area No. 3, and future annexations, if any, annexed to City of Calimesa Public Services Community Facilities District No. 1 (Law Enforcement, Fire, Paramedic and Park Maintenance Services) (the “CFD”), collected in the same manner as ordinary ad valorem taxes, in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 3, and future annexation areas, prior to the annexation of Annexation Area No. 3, and such future annexation areas, to the CFD, which is necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within Annexation Area No. 3 or such future annexation areas.
DATED: ____________________, 2022 CITY OF CALIMESA
By:
Darlene Gerdes
City Clerk of the City of Calimesa
City Council Meeting
Agenda Report
Agenda Item No. 13
SUBJECT: CITY OF CALIMESA – RIVERSIDE COUNTY ADVANCED LIFE
SUPPORT FIRST RESPONDER PROGRAM OPERATING
AGREEMENT
MEETING DATE: November 7, 2022
PREPARED BY: Tim O’Connell, Fire Chief
RECOMMENDATION: That the City Council adopt Resolution No. 2022-63, A Resolution of the City Council of the City of Calimesa approving an agreement between the City and Riverside County Emergency Medical Services Authority Advanced Life Support First Responder Program Operating Agreement.
BACKGROUND: On December 20, 2021, the Calimesa City Council directed staff to begin conducting the required process to transition the City of Calimesa Fire Department, from a Basic Life Support (BLS) service provider to an Advanced Life Support (ALS) Paramedic service provider.
Fire Department staff, under the direction of the City Fire Chief, have been actively procuring the required training, equipment, operating and governance requirements, in order to comply with the application process as required under the direction of the local Emergency Medical Services Authority also known as Riverside County Emergency Medical Services Authority (REMSA) to facilitate this service upgrade.
DISCUSSION: This operating agreement stipulates adherence with the tenants and governance requirements to provide Advanced Life Support (ALS) services in compliance with the relevant state and local requirements as defined by California Health and Safety Code Section 1797.218 and California Code of Regulations, Title 22, and the County of Riverside Ordinance No. 756, pertaining to the authorization and criteria to provide paramedic services and designate ALS First Responders.
FISCAL IMPACT: This Operating Agreement does not realize a fiscal impact.
ATTACHMENTS:
Attachment A: Advanced Life Support First Responder Agreement Attachment B: Council Resolution 2022-63
Calimesa ALS First Response #EM-23-110
1 ADVANCED LIFE SUPPORT (ALS) FIRST RESPONDER AGREEMENT
BY AND BETWEEN THE
CITY OF CALIMESA AND COUNTY OF RIVERSIDE
This Advanced Life Support (“ALS”) First Responder Agreement (“Agreement”) dated July 1, 2022 (“Effective Date”), is hereby made and entered into by and between the City of Calimesa (“City”), a municipal corporation organized under the laws of the State of California, and the County of Riverside (“County”), a county organized under the laws of the State of California, on behalf of its Riverside County Emergency Medical Services Agency (“REMSA”). City and County are sometimes individually referred to as “party” and collectively as “parties.” County and REMSA are sometimes referred to interchangeably.
RECITALS
A. Pursuant to the California Health and Safety Code, Division 2.5, the Local Emergency Medical Services Agency (“LEMSA”) has the exclusive authority to determine the providers of ALS services within its jurisdictional limits, and to determine emergency ambulance service operating areas within such jurisdictional limits, subject to certain statutory exceptions. In addition, Health and Safety Code section 1797.218; California Code of Regulations, Title 22, sections 100145, 100146, 100166, 100168 and 100170; and the County of Riverside Ordinance No. 756, give REMSA exclusive authority to authorize and establish criteria for an ALS program, which provides services utilizing paramedics, and to designate ALS First Responders and ALS Ambulance Providers.
B. Nothing in this Agreement shall be construed to abrogate or diminish any rights either party may have under the EMS Act, Health and Safety Code section 1797 et seq., prior to the effective date or after the termination of this Agreement.
C. Definitions: The definitions set forth in Exhibit A shall apply to this Agreement.
D. The purpose of this Agreement is:
1. Subject to the terms and conditions set forth herein,to authorize City as a provider of ALS First Responder services within City’s jurisdictional boundaries, as they exist now or may be modified in the future, hereafter referred to as the “Calimesa Operating Area,” and other areas of Riverside County as needed for mutual aid requests, plans and/or agreements.
Attachment 13A
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2 2. To assure the ALS First Responder services supplied by City are integrated into the County EMS system and codified in the County’s EMS Plan in compliance with medical control policies, protocols and procedures established by REMSA and in compliance with State, County and local laws.
OPERATIVE PROVISIONS
Now therefore, for good and valuable consideration the adequacy of which the parties acknowledge, the parties agree as follows:
Section 1. County’s authorization of City as an ALS First Responder Service Provider.
County hereby authorizes City to provide ALS First Responder Services in the Calimesa Operating Area, and it shall be so codified in the County’s EMS Plan. County also authorizes ALS First Responder Services to other areas of Riverside County as needed for mutual aid requests, plans and/or agreements. County further agrees to be bound by, implement and perform the Operational Standards applicable to the County as set forth in Exhibit B.
Section 2. City’s Obligation as an ALS First Responder Service Provider.
As a condition for County’s authorization to City to provide ALS First Responder Services in the Calimesa Operating Area, City represents and agrees:
a. That such services will be performed in accordance with all applicable federal, state, and County laws, rules, regulations, and REMSA protocols, policies, and procedures(the current version and future revised versions of the REMSA Policy Manual are available at www.remsa.us/policy) which directly relate to ALS First Responder Services, including but not limited to, the requirements set forth in Exhibit B – Operational Requirements and Exhibit C – ALS Service Provider Standards of this Agreement;
b. To cooperate with REMSA’s representatives relating to City’s performance as an ALS Service Provider and REMSA’s oversight for the County’s EMS system including, but not limited to, the utilization and submittal of required patient care, continuous quality improvement and operational performance reports, and cooperating with REMSA investigations of EMS related incidents.
c. That it shall not be entitled to, or demand, any compensation from County for services rendered pursuant to City’s designation as an ALS Service Provider as stated in this Agreement; and
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3 d. That it will cooperate and participate with REMSA and other EMS System participants, subject to adequate available City funding, to achieve the goals and objectives of the EMS System Strategic Plan.
Section 3. Modifications
The parties agree that obligations as set forth in Exhibit B and Exhibit C may be modified by written agreement of City Manager and REMSA’s EMS Administrator, or as applicable under law by update or implementation of REMSA policies, protocols and procedures.
Section 4. Term.
The term of Agreement shall begin when this Agreement is executed by the parties and shall continue until June 30, 2024. Thereafter, this Agreement shall be extended automatically to coincide with time extensions of the Agreement between the County and American Medical Response (“AMR”) for ground emergency ambulance transport service effective July 1, 2015.
Section 5. Termination.
Notwithstanding the foregoing term, this Agreement may be terminated at an earlier time as follows:
a. Immediately by REMSA upon written notice for non-compliance with the provisions of this Agreement or violation of REMSA protocols, policies, procedures or operational agreements. b. By either party upon ninety (90) days’ written notice to the other party; or c. Both parties may agree in writing to terminate this Agreement in a mutually satisfactory manner.
d. In the event of any termination of this Agreement, both parties shall retain any rights they had under the EMS Act prior to entering into the Agreement.
Section 6. County Authority
City understands, acknowledges and agrees that it shall not, during the term of this Agreement and for a period of six (6) months thereafter, initiate or participate in initiating any lawsuit which challenges the County’s exclusive authority or County’s right to award an Exclusive Operating Area (“EOA”) Agreement for the Southwest EOA without competitive process pursuant to Health and Safety Code section 1797.224.
Section 7. County Authority in the Southwest Exclusive Operating Area (EOA)
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4 Pursuant to its authority under Health and Safety Code Section 1797.224, the County has entered into an agreement with AMR through which it has granted exclusive authority to provide ground ALS emergency ambulance transport services within the Southwest EOA. Nothing in this Agreement shall be construed in any manner to abrogate or diminish this grant of authority for the Southwest EOA or AMR’s qualifications to receive such exclusive authority under existing law.
Section 8. Independent Contractor Status
Each party shall be solely responsible for its own employees. Each party shall pay all wages, salaries, overtime, benefits and other amounts due to their own personnel pursuant to applicable law and in connection with all services under this Agreement. Each party shall be responsible for all reports and obligations respecting their own personnel, including, but not limited to, social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance. Employees or agents of one party shall not be deemed employees of the other for any purpose. Each party shall defend, indemnify and hold harmless the other party from and against all expenses or liabilities of any kind arising from or incident to any claim by any employee of the indemnifying party or any governmental agency relating to wages, salaries, overtime, benefits or other obligations of the indemnifying party to any employee thereof.
Section 9. Notices
All notices permitted or required under this Agreement shall be given to the respective parties at the following addresses, or at such other addresses as the respective parties may provide in writing for this purpose:
City: City of Calimesa
Address
Calimesa, CA ZIP
Attn: City Manager
With a copy to:
City of Calimesa
Address
Calimesa, CA ZIP
Attn: Fire Chief
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5 County: Riverside County EMS Agency
450 E. Alessandro Blvd.
Riverside, California 92508
Attn: EMS Administrator
Such notices may be provided by personal delivery, by first class mail, by express delivery or by facsimile transmission. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
Section 10. Cooperation and Further Acts
The parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
Section 11. Non-Discrimination
City agrees to not discriminate in the provisions of services, allocation of benefits, accommodation of facilities, or employment of personnel, on the basis of ethnic group or gender identification, race, color, creed, ancestry, religion, national origin, sexual preference, sex, age (over 40), marital status, medical condition, physical or mental handicap, or any other class protected by applicable federal, state, or local law, including County of Riverside Board Policy No. A-73, and agrees to comply with all requirements of the law regarding nondiscrimination.
Section 12. Hold Harmless/Indemnification
a. City shall indemnify and hold harmless County, its special districts and agencies, including their officers, employees and representatives (collectively “County Indemnitees”) from any liability, claim, damage or action related to or arising from any activities of City, its officers, employees or representatives arising out of or in any way related to its involvement with this Agreement, including but not limited to property damage, personal injury or death. City shall defend County Indemnitees at its sole expense, all costs and expenses including, but not limited to, attorneys’ fees, investigation costs, settlements or awards in any claim or action for which indemnification is required.
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6 b. County shall indemnify and hold harmless City, including its officers, employees and representatives (collectively “City Indemnitees”) from any liability, claim, damage or action related to or arising from any activities of County, its officers, employees or representatives arising out of or in any way related to its involvement with this Agreement, including but not limited to property damage, personal injury or death. County shall defend City Indemnitees at its sole expense, all costs and expenses including, but not limited to, attorneys’ fees, investigation costs, settlements or awards in any claim or action for which indemnification is required.
Section 13. Insurance
Without limiting or diminishing the City’s obligation to indemnify or hold the County harmless, City shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverages during the term of this Agreement. As respects to the insurance section only, the City herein refers to the County of Riverside, its Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board of Supervisors, employees, elected or appointed officials, agents or representatives as Additional Insureds.
A. Workers’ Compensation:
If the City has employees as defined by the State of California, the City shall maintain statutory Workers' Compensation Insurance (Coverage A) as prescribed by the laws of the State of California. The City provides a self-insured program to twenty-five thousand dollars ($25,000). Policy shall include Employers’ Liability (Coverage B) including Occupational Disease with limits not less than one million dollars ($1,000,000) per person per accident.
The policy shall be endorsed to waive subrogation in favor of the County of Riverside.
B. Commercial General Liability:
Commercial General Liability insurance coverage, including but not limited to, premises liability, unmodified contractual liability, products and completed operations liability, personal and advertising injury, and cross liability coverage, covering claims which may arise from or out of City’s performance of its obligations hereunder. Policy shall name the County as Additional Insured. The City is a member of the California Intergovernmental Risk Authority’s (CIRA) self-insured general liability program which provides one million
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7 dollars ($1,000,000) liability limits The City’s insurance coverage has no general aggregate limit and the Policy’s limit of liability shall not be less than three million dollars ($3,000,000) per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or be no less than two (2) times the occurrence limit.
C. Professional Liability
City shall maintain Professional Liability Insurance, under the City’s General Liability coverage and separate Professional Liability is not provided for the City’s performance of work included within this Agreement, with a limit of liability of not less than two million dollars ($2,000,000) per occurrence and four million dollars ($4,000,000) annual aggregate.
If City’s Professional Liability Insurance is written on a claims made basis rather than an occurrence basis, such insurance shall continue through the term of this Agreement and City shall purchase at his sole expense either 1) an Extended Reporting Endorsement (also, known as Tail Coverage); or 2) Prior Dates Coverage from new insurer with a retroactive date back to the date of, or prior to, the inception of this Agreement; or 3) demonstrate through Certificates of Insurance that City has maintained continuous coverage with the same or original insurer. Coverage provided under items; 1), 2), or 3) will continue if the law allows.
Failure on the part of City to produce or maintain required insurance or the selfinsurance program shall constitute a material breach of this Agreement upon which County may immediately terminate or suspend this Agreement.
D. General Insurance Provisions - All lines:
1) The City is a member of the California Intergovernmental Risk Authority (CIRA) as a joint powers authority and is not subject to AM Best ratings. 2) The City must declare its insurance self-insured retention for each coverage required herein. The City provides a self-insured program to ten thousand dollars ($10,000). If any such self-insured retention exceeds five hundred thousand dollars($500,000) per occurrence each such retention shall have the prior written consent of the County Risk Manager before the commencement of operations under this Agreement. Upon notification of self-insured retention unacceptable
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8 to the County, and at the election of the County’s Risk Manager, City’s carriers shall either; 1) reduce or eliminate such self-insured retention as respects this Agreement with the County, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses.
3) City shall cause City’s insurance carrier(s) to furnish the County of Riverside with either 1) a properly executed original Certificate(s) of Insurance and certified original copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in writing by the County Risk Manager, provide original Certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall contain the covenant of the insurance carrier(s) that thirty (30) days written notice shall be given to the County of Riverside prior to any material modification, cancellation, expiration or reduction in coverage of such insurance. In the event of a material modification, cancellation, expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County of Riverside receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage’s set forth herein and the insurance required herein is in full force and effect. City shall not commence operations until the County has been furnished original Certificate(s) of Insurance and certified original copies of endorsements and if requested, certified original policies of insurance including all endorsements and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for each policy and the Certificate of Insurance.
4) It is understood and agreed to by the parties hereto that the City’s insurance shall be construed as primary insurance, and the County’s insurance and/or deductibles and/or self-insured retentions or self-insured programs shall not be construed as
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9 contributory.
5) If, during the term of this Agreement or any extension thereof, there is a material change in the scope of services; or, there is a material change in the equipment to be used in the performance of the scope of work; or, the term of this Agreement, including any extensions thereof, exceeds five (5) years; the County reserves the right to adjust the types of insurance and the monetary limits of liability required under this Agreement, if in the County Risk Manager's reasonable judgment, the amount or type of insurance carried by the City has become inadequate. 6) City shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Agreement. 7) The insurance requirements contained in this Agreement may be met with a program(s) of self-insurance acceptable to the County.
8) City agrees to notify County of any claim by a third party or any incident or event that may give rise to a claim arising from the performance of this Agreement.
Section 14. Entire Agreement; Amendments
This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.
Section 15. Governing Law
This Agreement shall be governed by the laws of the State of California. Venue shall be in a court of competent jurisdiction in Riverside County, and the parties waive any provision of law providing for a change of venue to another location.
Section 16. Successors and Assigns
This Agreement shall be binding on the successors and assigns of the parties.
Section 17. Assignment or Transfer
No party shall assign, hypothecate, subcontract or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the other party.
Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
Section 18. Construction, References and Captions
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10 Since the parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. All references to any party shall include all officials, officers, employees and agents of that party, except as otherwise specified in this Agreement. The captions of the various sections are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
Section 19. Waiver
No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give any other party any contractual rights by custom, estoppel, or otherwise.
Section 20. No Third-Party Beneficiaries
There are no third-party beneficiaries of any right or obligation assumed by the parties.
Section 21. Invalidity and Severability
If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. In addition, if any portion of this Agreement is declared to be invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, or is otherwise deemed to be such by legal counsel for the parties to this Agreement, the parties shall use their reasonable best efforts to amend this Agreement to remove the inappropriate provision(s); provided, however, that if the amendment cannot be made in a manner which preserves all essential parts of the consideration for any party, such party may terminate this Agreement as soon as is reasonably practicable or as required by law.
Section 22. Authority to Execute Agreement
Each party warrants it has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party also warrants that the individuals who have signed this Agreement have the legal power to make this Agreement and bind each respective party hereto.
Section 23. Counterparts and Signatures
This Agreement may be executed in any number of counterparts, each of which will be an
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11 original, but all of which together will constitute one instrument. Each party of this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Civ. Code, §§ 1633.1 to 1633.17), for executing this Agreement. The parties further agree that the electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time.
The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.
(Signatures on next page)
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12 Approved:
COUNTY: CITY:
Signature: ___________________________ Signature: _________________________ Print Name: __Jeff Hewitt ________ Print Name: Bonnie Johnson Title: Chair, Board of Supervisors Title: City Manager
Dated: ______________________________ Dated: ____________________________ ATTEST:
Kecia Harper
Clerk of the Board
By: ___________________
Deputy
APPROVED AS TO FORM:
OFFICE OF COUNTY COUNSEL
COUNTY OF RIVERSIDE
By: __________________
Melissa R. Cushman
Deputy County Counsel
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13 Exhibit A
Definitions
1. Advanced life support (ALS) - Shall mean special services designed to provide definitive prehospital emergency medical care including, but not limited to, cardiopulmonary resuscitation, cardiac monitoring, cardiac defibrillation, advanced airway management, intravenous therapy, administration of specified drugs, and other medicinal preparations, and other specified techniques and procedures administered by authorized personnel under the direct supervision of a base hospital or utilizing approved prehospital treatment protocols or standing orders as part of the local EMS system at the scene of an emergency, during transport to an acute care hospital or other approved facility, during inter-facility transfers, and while in the emergency department of an acute care hospital until responsibility is assumed by the emergency department or other medical staff of that hospital (Health & Safety Code).
2. ALS Emergency Ambulance Providers – Shall mean providers of ALS emergency ambulance services who have been authorized to operate within an area defined by the county EMS Plan.
3. Emergency Ambulance Services – Shall mean ambulance services at any REMSA-authorized level (ALS, LALS or BLS) provided in response to 9-1-1 and seven digit or ten-digit requests for emergency medical service through an authorized Public Safety Answering Point (PSAP) or emergency calls received directly by the City.
4. Emergency Ambulance – Shall mean an ambulance permitted pursuant to Riverside County Ambulance Ordinance No. 756 and operated by a REMSA-authorized EOA or Non-EOA emergency ambulance provider as identified in the County EMS Plan.
5. ALS First Responders – Shall mean non-ambulance fire department paramedic units that have been authorized by and meet REMSA policies to provide ALS services.
6. Emergency Medical Services (EMS) – Shall mean the services utilized in response to a medical emergency.
7. EMS Plan – Shall mean a plan for the delivery of emergency medical services consistent with state guidelines and approved by the EMS Authority pursuant to the California Code of Regulations, Title 22.
8. EMS Quality Improvement Program (EQIP) – Shall mean system-wide quality improvement planning and activities as stated in the plan submitted by REMSA and approved by the California EMS Authority pursuant to the California Code of Regulations, Title 22.
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14 9. County EMS System or EMS System - Shall mean the specifically organized system which provides for the personnel, facilities, and equipment for the effective and coordinated delivery of EMS services within the county.
10. EMS System Strategic Plan – Shall mean the strategic plan developed by REMSA with input from EMS system stakeholders. The plan is accessible at http://remsa.us/documents/plans/140923FINALEMSSystemStratPlan.pdf.
11. Exclusive Operating Area (EOA) – Shall mean an area or subarea defined by the County EMS Plan for which REMSA, upon recommendation of the County, restricts operations to one or more emergency ambulance services or providers of limited advanced life support (LALS) or advanced life support (ALS) pursuant to the Health and Safety Code, Division 2.5, 1797.224. a. Southwest EOA shall be the area as identified by the map attached as Exhibit D.
12. Calimesa Operating Area – Shall mean the area or subarea defined by the County EMS plan that has been designated by REMSA for the provision of ALS First Responder services by the City pursuant to the terms of this Agreement.
a. The Calimesa Operating Area shall be the area as identified by the map attached as Exhibit E.
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15 EXHIBIT B
OPERATIONAL REQUIREMENTS
City shall:
1. Annually provide County with a map which outlines the Calimesa Operating Area and provide County with notice of any changes to the Calimesa Operating Area and updated maps reflecting changes that have occurred.
2. Provide continuous twenty-four (24) hour per day Advanced Life Support (ALS) Emergency Ambulance Services for their designated service area as described in number 1 above, and as updated annually by mutual agreement.
3. Comply with County’s requirements for the implementation of Quality Improvement Program (QIP), including the designation of a qualified person to supervise the QIP.
4. Appoint City’s Fire Chief, or his/her designate, as ALS Program Coordinator to serve as a liaison with County and other County EMS system service providers, and to act on City’s behalf in the administration of this Agreement.
5. Comply with REMSA system protocols, policies, procedures and performance standards (the current version and future revised versions of the REMSA Policy Manual are available at:
http://www.remsa.us/policy/).
6. Notify County in a timely manner of significant or continuing service performance problems, including but not limited to: (1) base hospital complaints; (2) changes in the status of certified/accredited personnel (e.g., termination, classification, etc.); (3) changes in station location(s); (4) radio frequency interference which causes operational problems; (5) and local emergencies/disasters which causes operational problems.
7. Ensure all appropriate employees and agents hold necessary certification, licenses, or accreditation and maintain the records of such that they comply with all training requirements as required by applicable state and federal law, regulation, policy and protocol.
8. Meet the ALS Service Provider Standards as stipulated in Exhibit C of this document or as they may be subsequently established or modified from time to time by REMSA policy.
9. Strive to ensure a positive, communicative and effective working relationship with County and partner agencies.
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16 County shall:
1. Provide City with adopted protocols, policies and procedures relating to emergency medical care, and agrees to provide City with any revisions or additions following approval by the County;
2. Involve City in the County’s EMS Quality Improvement Program (EQIP).
3. Communicate as necessary with City’s Provider Medical Advisor, ALS Program Coordinator and/or Fire Chief.
4. Assign one or more base hospitals to City’s ALS program according to REMSA policies and procedures.
5. Schedule mutually acceptable periodic visits by County staff with City’s staff to ensure compliance with local polices and/or procedures related to the Agreement which fall within the jurisdiction of REMSA.
6. Strive to ensure a positive, communicative and effective working relationship with City.
7. Designate the City as an authorized ALS First Responder and emergency ambulance Provider in the County’s EMS Plan.
8. Notify the City of any proposed or required changes to the County EMS plan and provide the city an opportunity to provide input prior to submission; and
9. Subject to adequate available funding, provide the approved electronic patient care report (ePCR) software to the city.
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17 EXHIBIT C
ADVANCED LIFE SUPPORT (ALS) SERVICE PROVIDER STANDARDS
1. Medical Control
Overall medical control of Emergency Medical Service (EMS) provider personnel shall be according to the policies and procedures of the REMSA Medical Director. On-line medical direction shall be provided to EMS provider personnel by Base Hospital physicians or mobile intensive care nurses according to the policies and procedures of the Riverside County EMS Agency (REMSA) Medical Director. Retrospective medical control shall be provided according to the standards set for by the REMSA Medical Director through EMS Quality Improvement Programs (EQIP) – California Code of Regulations, Title 22, Section 100400), including continuing education programs, conducted cooperatively by the City, REMSA, and the Base Hospitals.
2. Training/Education/Certification/Accreditation/Reverification All paramedic personnel employed or utilized by City must be accredited by REMSA to practice within Riverside County.
a. Field Training Officers
City agrees to designate enough field training officers who shall function as trainers and perform other duties on behalf of City.
b. Continuing Education Records
The City agrees to maintain records of continuing education for its EMS employees for a minimum of four (4) years.
c. Field Care Audits
The city agrees to work cooperatively with the Hospitals and REMSA in identifying educational opportunities, assisting with field care audits, continuing education classes and programs.
d. Mandatory Education for Local Paramedic Accreditation and EMT Certification The city agrees to cooperate fully with REMSA to notify and ensure completion by paramedics and EMTs of mandatory education programs.
e. EMS Quality Improvement Program (EQIP) Specialty Education Programs.
The City agrees to ensure through its EQIP program that all personnel meet REMSA policy requirements for First Responder and Transportation Services. Competency and performance based continuing education/training shall be developed and implemented as identified by the City and REMSA (EQIP).
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18 3. Paramedic Interview by REMSA
City will cooperate fully with County in the coordination of any interviews of an employee of City by REMSA subject to applicable laws.
4. Paramedic Preceptors
City agrees to cooperate with REMSA and REMSA-approved paramedic training programs to participate in the preceptor program. The City’s preceptor program shall provide adequate, as determined by REMSA, paramedic field internship positions in support of REMSA approved programs. Preferential placement for paramedic field internship shall be provided to REMSA approved Community College Programs.
5. Preventative Health Care Immunizations
City agrees to make available to prehospital personnel, at no cost to the employee the following immunizations and communicable disease testing:
a. Tuberculosis PPD test semi-annually
b. Hepatitis B
c. Influenza immunizations annually
d. Measles Mumps and Rubella (MMR)
e. Varicella (Chickenpox)
f. Tetanus, Diphtheria and Pertussis (TDaP)
6. Infection Control
City agrees to have written infection control policies and procedures approved by the County Health Officer or his/her designee. Testing and counseling services shall be provided to employees at no cost for employees exposed to serious infectious diseases. The City agrees to report any known employee exposures to serious infectious diseases to the County Health Officer or his/her designee. The city is required to specify a Designated Officer who will be the point of contact for suspected exposures.
7. Key Personnel
City agrees to have key personnel in the following functions. Personnel assigned these functions shall be submitted in writing to REMSA within sixty (60) days of signing of Agreement. City is not required to have an employee solely dedicated to each function. Key job functions shall be the following:
a. ALS Program Coordinator - appoint an appropriate individual to serve as a liaison with REMSA and other County EMS system service providers and represent City in the administration of this Agreement.
b. Quality Improvement Plan (QIP) Coordinator/Officer- responsible for the QIP. This individual will ensure core values and standards of care are maintained by all ALS
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19 personnel. This individual will be responsible for investigating clinical issues per the approved QIP plan and the policies, procedures and protocols of REMSA as approved by the REMSA Medical Director.
c. Paramedic Education/Training Coordinator/Officer- City agrees to designate a paramedic who shall function as the trainer/evaluator as described in their approved EQIP plan. This individual will provide for all in-house primary and continuing education/training.
d. Infection Control Officer - City agrees to designate an individual as the point of contact to work cooperatively with the medical/health community to ensure appropriate follow-up and documentation of employee and patient exposures.
8. Patient Medical Records, EMS System Data Submission and Research The city willingly agrees to complete a patient care report for every EMS response utilizing the REMSA approved electronic patient care report (ePCR) that includes integration of Computer Aided Dispatch (CAD) data. The city also agrees to provide data as reasonably requested by REMSA for focused CQI audits and collaborate with REMSA on approved research projects.
9. System Wide Integrated Education Training
City agrees to work with REMSA, Base Hospitals, paramedic education/training programs and other ALS providers to develop and implement education/training initiatives designed to improve the continuity of patient care and interoperability amongst EMS system partners.
10. Confidentiality
City agrees to have a program for maintaining confidentiality of protected patient healthcare information consistent with the requirements of HIPAA and REMSA policy.
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20 EXHIBIT D
MAP OF SOUTHWEST EXCLUSIVE OPERATING AREA (EOA)
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21 EXHIBIT E
MAP OF CITY OF CALIMESA OPERATING AREA
RESOLUTION NO. 2022-63
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIMESA, CALIFORNIA, APPROVING AN AGREEMENT
BETWEEN THE CITY AND RIVERSIDE COUNTY EMERGENCY
MEDICAL SERVICES AUTHORITY ADVANCED LIFE SUPPORT
FIRST RESPONDER PROGRAM OPERATING AGREEMENT
WHEREAS, the City of Calimesa is a California municipal corporation located in the County of Riverside, State of California; and WHEREAS, the City of Calimesa City Council directed Fire Department staff (Chief) to transition from a Basic Life Support (BLS) service provider to an Advanced Life Support (ALS) paramedic pre-hospital care provider.
WHEREAS, the City desires to enter into an Operating Agreement with Riverside County Emergency Medical Services Authority (REMSA) for the purposes of (ALS) program operating and governance requirements as stipulated and required by relevant State Codes and County Ordinances pertaining to ALS Paramedic Program services.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1 The City Council of the City of Calimesa does hereby approve the following documents: (a). Advanced Life Support (ALS) First Responder Agreement by and Between the City of Calimesa and County of Riverside (b).
Exhibit A, Definitions (c). Exhibit B Operational Requirements (d). Exhibit C Advanced Life Support (ALS) Service Provider Standards (e). Exhibit D Map of Southwest Exclusive Operating Area (f). Exhibit E Map of City of Calimesa Operating Area.
Section 2 The City Manager for City of Calimesa is hereby authorized to execute the Agreement and other documents specified in Section 1 of this Resolution on behalf of the City of Calimesa.
PASSED, APPROVED, and ADOPTED this 7
th day of November 2022.
________________________________
WILLIAM DAVIS, MAYOR
ATTEST:
___________________________
DARLENE GERDES, CITY CLERK
Attachment 13B
City Council Meeting
Agenda Report
Agenda Item No. 14
SUBJECT: APPOINTMENT WILLIAM M. KOLBOW AS CITY MANAGER
EFFECTIVE NOVEMBER 28, 2022 AND APPROVAL OF
EMPLOYMENT AGREEMENT BETWEEN WILLIAM M. KOLBOW
AND THE CITY OF CALIMESA
MEETING DATE: November 7, 2022
PREPARED BY: Darlene Gerdes, Deputy City Manager
Quinn Barrow, City Attorney
RECOMMENDATION: That the City Council take the following actions:
1. Approve Resolution No. 2022-64 appointing William M. Kolbow as City Manager, approving the attached Employment Agreement, amending the City’s salary schedule, and directing the Mayor to execute the Employment Agreement on behalf of the City.
2. Approve in concept the City Manager Transition Plan contained in this staff report and direct staff to return at the next Council meeting with the necessary documents and recommendations for implementation.
BACKGROUND/DISCUSSION: Several months ago, City Manager Bonnie Johnson informed the City Council of her intent to retire from the City by the end of the 2022 calendar year. Consequently, on May 2, 2022 an executive recruitment firm, HR Dynamics & Performance Management, was hired to conduct the recruitment process for a new City Manager. There was an initial field of 38 candidates. The process has now been completed and a contract has been negotiated with the successful candidate, Mr. William M. Kolbow. Mr. Kolbow comes to the City of Calimesa with 20 years of municipal experience and most recently is serving as the Assistant City Manager in the City of Orange.
The Employment Agreement contains terms similar to the terms in the Employment Agreement with Ms. Johnson, including the following basic provisions:
1. The proposed Employment Agreement provides for an initial term of three years, plus one-year automatic renewals on the same terms and conditions unless either party gives the other party written notice of non-renewal at least six (6) months prior to the end of a term (either the initial term or any subsequent renewal term).
2. Mr. Kolbow will perform the duties of the City Manager as set forth in Chapter 2.05 of the Calimesa Municipal Code, the California Government Code, and City
policies and procedures. Pursuant to the Bylaws of the Calimesa Public Finance Authority, the City Manager is automatically the Executive Director of the Calimesa Public Finance Authority, and he will also perform the duties of that position.
3. The City Manager’s annual base salary will be $224,000 annually, effective November 28, 2022. To comply with requirements of the California Public Employees’ Retirement System, the City’s publicly available pay schedule must be amended to reflect this amount.
4. The City will review Mr. Kolbow’s salary annually, and City may, but is not required to grant future salary increases.
5. The City will initially review Mr. Kolbow’s performance after six months and annually thereafter, based on criteria jointly developed by the City Council and Mr.
Kolbow.
6. The City will provide the City Manager with use of a City-owned automobile for his own use and for City-related business, subject to the City’s vehicle use policy. The City will provide fuel, insurance, maintenance and repair for the vehicle.
7. Benefits are generally the same as other City management employees and consistent with the previous City Manager’s benefits package.
8. Either party may terminate the Employment Agreement without cause.
The City Manager may terminate the Employment Agreement upon at least 30 days’ notice by submittal of a written resignation.
9. If the Employment Agreement is terminated by the City Council without cause, the City will pay a severance benefit equal to six months base salary.
Transition Plan
In addition, given the volume of activity in our City currently, particularly in the development area, the current City Manager and new City Manager have been discussing a Transition Plan wherein the current City Manager would remain reasonably available to City to answer questions, advise on pending matters and projects, and be involved in existing matters where her involvement may be beneficial to the City. This would require the current City Manager being appointed a new classification of “Executive Advisor to the City Manager”. In this position she would remain a fulltime employee and be available to the City as needed for an average of 20 hours per week. The remaining hours would be paid out of the leave time she has accrued that must be paid to her upon separation per her contract anyway. This would result in a lesser lump-sum payout to the current City Manager at retirement/separation. Thus, the only new expense to the City would be an hourly cost for hours actually worked. The current City Manager is willing to work in this capacity through June 30, 2023 at which time she plans to retire. With City Council concurrence, the appropriate documents to implement this proposed Transition Plan would be brought forward on November 21, 2022. The net cost is estimated to be approximately $95,000 assuming a consistent average 20 hours of availability each week and use of 20 hours leave time each week.
FISCAL IMPACT: The total annual cost of Mr. Kolbow’s Employment Agreement, including salary and all related benefits, is approximately $297,650. This is approximately $28,700 in excess of the current City Manager’s contract. For fiscal year 2022-23, the prorated cost for the new City Manager will be $173,630, which will be offset by existing budget of $158,300. Appropriate budget adjustments, based upon City Council approvals, will be brought forward during the upcoming Midyear Budget review process.
ATTACHMENTS:
Attachment A: Resolution 2022-64
Attachment B: Employment Agreement between the City of Calimesa and William M. Kolbow
RESOLUTION NO. 2022-64
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIMESA, CALIFORNIA, APPOINTING WILLIAM M. KOLBOW AS
CITY MANAGER, APPROVING AN EMPLOYMENT AGREEMENT
AND AMENDING THE CITY’S SALARY SCHEDULE
WHEREAS, the City of Calimesa (“City”) was incorporated on December 1, 1990, as a general law City of the State of California; and
WHEREAS, the City by ordinance has adopted a City Manager form of government; and
WHEREAS, Chapter 2.05 of Title 2 of the Calimesa Municipal Code adopted the provisions for appointment of the City Manager; and
WHEREAS, the City Council now desires to appoint William M. Kolbow to the position of City Manager.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. William M. Kolbow is hereby appointed as the City Manager effective November 28, 2022.
Section 2. The Agreement between the City of Calimesa and William M. Kolbow for City Manager Services dated November 7, 2022, and effective November 28, 2022, attached hereto as Exhibit “A”, is hereby approved.
Section 3. The City’s publicly available salary schedule is hereby amended effective November 28, 2022, to provide for an annual salary of $224,000.00 for the position of City Manager on a full-time basis.
Section 4. The Mayor is authorized to execute the Employment Agreement which is attached hereto as Exhibit “A.”
PASSED, APPROVED, and ADOPTED this 7
th day of November 2022
WILLIAM DAVIS, MAYOR
ATTEST:
_____________________________________
DARLENE GERDES, CITY CLERK
Attachment 14A
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EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF CALIMESA AND
WILLIAM M. KOLBOW
THIS AGREEMENT, made and entered into November 7, 2022 and effective November 28, 2022, by and between the City of Calimesa, California, a municipal corporation (hereinafter called “City” or “Employer”) and William M. Kolbow, an individual (hereinafter called “Employee”):
RECITALS
A. City desires to employ Employee as City Manager and Employee desires to accept appointment as City Manager.
B. Employee represents that he has the necessary qualifications and licenses required in the performance of his duties and responsibilities pursuant to this Agreement, and that any such licenses will be maintained in effect and good standing during the course of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:
Section 1. Employment
The City hereby agrees to employ Employee, and Employee agrees and does accept employment upon the terms and conditions set forth herein.
Section 2. Duties and Obligations of City Manager
A. Employee hereby agrees to perform the functions and duties of City Manager in an efficient, competent and ethical manner. Such functions include, but are not limited to, the following:
(1) Employee shall be the chief executive officer of the City and be responsible to the City Council for the proper administration of all affairs of the City. (2) Employee shall perform all of the duties of the City Manager as set forth in Chapter
2.05 of the Calimesa Municipal Code, the California Government Code, and City policies and procedures approved by the City Council, as may be provided from time to time. In addition to the powers and duties expressly set forth and incorporated herein, Employee shall have such powers and duties which are delegated to him by the City Council. Employee shall execute all of the powers and duties in accordance with the policies adopted by the City Council and applicable state and federal laws.
(3) At the option of City, Employee shall serve as the Executive Director, an officer or a governing body member of any authority or agency created by or staffed by City.
Attachment 14B
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2 (4) Pursuant to the Bylaws of the Calimesa Public Finance Authority, the City Manager is automatically the Executive Director of the Calimesa Public Finance Authority, and Employee shall perform the duties of that position. (5) Employee shall administer and enforce policies established by the City Council and promulgate rules and regulations as necessary to implement City Council policies.
(6) Employee shall attend all meetings of the City Council, unless excused by the Mayor, and take part in the discussion of all matters before the City Council. (7) Employee shall direct the work of all City officers and departments that are the concern and responsibility of the City Council, except those that are directly appointed by or report directly to the City Council. Employee shall endeavor to implement changes that Employee believes will result in greater efficiency, economy, or improved public service in the administration of City affairs. (8) Employee shall recommend to the City Council from time to time, adoption of such measures as Employee may deem necessary or expedient for the health, safety, or welfare of the community or for the improvement of administrative services. (9) Employee shall develop and recommend to the City Council long-range plans to improve City operations and prepare for future City growth and development. (10) Employee shall provide management training and develop leadership qualities among department heads and staff as necessary to build a City management team that can plan for and meet future challenges.
(11) Employee shall exercise control of City Government in emergencies as authorized by the Municipal Code and California law.
B. Employee shall focus his professional time, ability, and attention to City business during the term of this Agreement. Employee shall not engage in any other business duties or pursuits whatsoever or, directly or indirectly, render any services of a business, commercial, or professional nature to any other person or organization, whether for compensation or otherwise, without prior consent of the Council, except that:
(1) The expenditure of reasonable amounts of time not in conflict with the City’s needs and interests, for educational, charitable, community, and professional activities, shall not be deemed a breach of this Agreement and shall not require prior consent. (2) This Agreement shall not be interpreted to prohibit Employee from making passive personal investments or conducting private business affairs if those activities do not materially interfere with the services required under this Agreement.
C. Employee shall be vigilant in avoiding conflicts of interest and the appearance of conflicts of interest as follows:
(1) Employee shall not engage in any business or transaction or have a financial or other personal interest or association, direct or indirect, which is in conflict with the proper discharge of official duties or that tend to impair independence of judgment
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3 or action in the performance of official duties. Personal as distinguished from financial interest includes an interest arising from blood or marriage relationships or close business, personal, or political relationships or close business, personal or political associations. This section shall not serve to prohibit independent acts or other forms of enterprise during those hours not covered by Employee’s active engagement for the City, providing such acts do not constitute a conflict of interest as defined herein.
(2) Employee shall also be subject to the conflict of interest provisions of the California Government Code and any conflict of interest code applicable to Employee’s City position.
(3) Employee is responsible for submitting to the City Clerk the appropriate Conflict of Interest Statements at the time of appointment, annually thereafter, and at the time of separation from his position.
D. All data, studies, reports and other documents prepared by Employee while performing his duties during the term of this Agreement shall be furnished to and become the property of the City, without restriction or limitation on their use.
Section 3. Term
A. Initial Term: The initial term of this Agreement shall be for three years, effective on November 28, 2022 and ending November 27, 2025, unless sooner terminated as provided in this Agreement. Provided, however, that this Agreement will not become effective unless Employee actually assumes the duties of City Manager on November 28, 2022, or on such later date as the parties may mutually agree in writing.
Regardless of Employee’s start date, the initial term will end on November 27, 2025.
B. Renewal Term: This Agreement will automatically renew year-to-year for additional one year renewal terms on the terms and conditions that are in force at the time of the renewal, unless either party gives the other party written notice of non-renewal at least six (6) months prior to the end of the term of this Agreement (whether the initial term or a renewal term). The Agreement will continue to be subject to early termination, as provided in this Agreement.
C. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the employee to resign/retire at any time from his position with City, subject only to the provision set forth in Section 4, Paragraph C, of this Agreement.
Section 4. Termination and Severance Pay
A. Except as provided in Section 10, Paragraph A (termination for “cause”), in the event Employee is terminated by the City Council without “cause” before expiration of this Agreement, or any extension thereof, and during such time that Employee is willing and able to perform the duties of the City Manager, City agrees to pay Employee immediately upon termination a lump sum cash payment equal to his then monthly base salary for a period of six (6) months.
B. Any other term of this Agreement notwithstanding, the maximum severance that Employee may receive under this Agreement shall not exceed the limitations provided in Government Code Sections 53260 – 53264, or other applicable law. Further, in the
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4 event Employee is convicted of a crime involving an abuse of office or position, Employee shall reimburse City for any paid leave salary offered pending investigation or cash settlement (including severance), as provided by Government Code Sections 53243 – 53243.4. This shall not include payments for accrued leave as provided for in Section 8E of this agreement.
C. If Employee wishes to terminate this Agreement, he shall provide City with at least 30 days prior notice in the form of a written resignation.
Section 5. Salary
City agrees to pay Employee for his services rendered pursuant hereto an annual base salary per the following schedule, payable in installments at the same time as other employees of the City are paid: effective with assumption of duties pursuant to Section 3A - $224,000 annually. The City will review Employee’s salary annually, and City may, but is not required to grant future salary increases. One of the factors the City Council may consider in its review of Employee’s salary is the Median Salary Range of the most current Inland Empire City Manager’s Salary Survey.
Section 6. Professional Development
City hereby agrees to budget and to pay the travel and subsistence expense of Employee for professional and official travel, meetings, and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official functions of City, including, but not limited to International City Management Association and League of California Cities.
Employee is expected and encouraged to participate in professional organizations and to attend Area, Regional, State, and occasionally National meetings and conferences relative to matters of interest to the City of Calimesa, consistent with the time required for such attendance in relationship to his other City responsibilities.
City agrees to budget and pay for the professional dues and subscriptions of Employee necessary for his continuation and full participation in such organizations, and consistent with applicable City policies, pay for all reasonable and budgeted expenses referred to in the paragraph above, up to a maximum of $2,000.00 per year. Employee shall not incur dues and subscription expenses in excess of the budgeted amount of $2,000.00 per year without first securing the approval of City Council.
Section 7. Other Terms and Conditions of Employment
A. The City Council, in consultation with the City Manager shall fix any such other terms and conditions of employment, as it may determine from time-to-time, relating to the performance of the Employee, provided such terms and conditions are in writing and not inconsistent with or in conflict with the provisions of this Agreement the Municipal Code, or any other law.
B. Evaluation of Performance: Employee’s performance of the duties and responsibilities shall be evaluated by the City Council within six months of the starting date of employment; thereafter, the City Council may conduct an evaluation of Employee's performance on or before the one year anniversary of the first evaluation. Employee will request and schedule such reviews, as appropriate, pursuant to City Council agenda procedures or as otherwise directed by City Council. In addition, the City Council may, but is not required to, review Employee's salary and benefits as part of the evaluation process or at any other time. Said review and evaluation shall be in accordance with specific
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5 criteria developed jointly by City and Employee. Said criteria may be added to or deleted from as the City Council may from time-to-time determine in consultation with the Employee. Further, the Mayor shall provide the Employee with a summary written statement of the findings of the City Council and provide an adequate opportunity for the Employee to discuss his evaluation in closed session with the City Council. Nothing in this paragraph is intended to limit additional interim evaluations or reviews or to limit the normal communications process between the City Council and Employee.
C. In effecting the provisions of this Section, the City and Employee hereby mutually agree to abide by the provisions of the applicable laws.
D. It is recognized that the Employee must devote a great deal of time outside the normal office hours on business for the City, and to that end Employee shall be allowed to establish an appropriate work schedule.
Section 8. Other Employee Benefits
A. Sick Leave: Employee shall accrue 96 hours of sick leave annually. There shall be no cap on the number of hours which the Employee may accumulate. Pursuant to City policy, Employee may not sell back unused sick leave while employed, but conversion to additional retirement service credit for all unused sick leave is available at retirement, per the applicable Public Employee Retirement System (PERS) benefit terms and requirements and to the extent Employee does not elect the cash conversion provided below.
B. Vacation Leave: Employee shall accrue 160 hours of vacation annually. There shall be no cap on the number of hours which the Employee may accumulate.
C. Administrative Leave: Employee shall accrue in July of each year 80 hours of administrative leave. Time must be used within the fiscal year in which it is accrued. Any unused administrative leave shall not be carried over.
D. Holidays: Employee shall be entitled to paid holiday time annually as other employees.
E. At termination, for any reason, the Employee shall be entitled to one hundred (100%) percent of all unused sick leave and vacation leave, and the unused balance of that year’s administrative leave. Payment for said leave shall be made at the rate of pay in place at time of termination. Payment for unused sick leave shall be at Employee’s election except that Employee shall not be entitled to payment for unused sick leave in the event of termination for cause, as provided under Section 10, Paragraph A, or conversion to additional retirement service credit, under Section 8, Paragraph A.
F. Bereavement Leave: Employee shall receive an annual allocation of 30 hours that does not accrue.
G. Vehicle. Employee shall be given exclusive, reasonable use of a City-owned automobile for his own use and for City-related business during, before, and after normal business hours and subject to the City’s vehicle use policy. The City shall provide fuel, insurance, maintenance and repair for the vehicle.
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6 H. Health Insurance. City agrees to pay the current medical stipend afforded all other City employees. Employee shall have the option to deposit all of part of the value of the monthly stipend towards Employee 457 Deferred Compensation Plan in accordance with City policies, plan documents and legal requirements.
I. Life Insurance: In accordance with the City’s established policy relative to Life Insurance coverage for management employees, City shall obtain and pay for a life insurance policy on Employee in an amount equal to his annual salary or the maximum amount allowed by the City’s current Plan, if less than current annual salary.
J. Disability: Employee shall receive long-term disability insurance on the same terms and conditions as this benefit is made available to regular City employees.
K. Management Incentive: City shall provide Employee with a six and one half percent (6.5%) management incentive, payable on a bi-weekly basis, which may at the election of the Employee be contributed to any of the City’s 457 Deferred Compensation Plans or taken in cash as compensation. Employee may add his own funds to it, up to the maximum allowable under law. Management Incentive pay is compensation granted to Employee based upon the unique nature of the job. This compensation is for duties performed during normal working hours. All amounts payable under this provision are not reportable to PERS pursuant to applicable law and regulations.
L. Retirement:
(1) City agrees that the City will pay to PERS the required statutory Employee Contribution equal to seven percent (7%) of the Employee’s base salary and other compensation, as required by State law, plus the normal matching Employer’s share to secure the PERS retirement plan benefit. Such amounts will be applied to the Employee’s individual account per Government Code Section 20691. (2) City shall pay the Employer’s portion of the One Year Final Compensation and Full Formula retirement plan.
(3) Employee shall be eligible for two percent (2%) @ 60 PERS retirement formula, consistent with all other employees.
M. Indemnification: The City shall defend, hold harmless and indemnify Employee against and for all losses sustained by Employee in direct consequence of the lawful discharge of the City Manager’s duties on the City’s behalf for the period of Employee’s engagement. The City shall defend, hold harmless and indemnify Employee against any tort, professional liability claim or demand or other legal action arising out of an alleged act or omission occurring in the lawful performance of Employee’s duties as City Manager, provided that such indemnity shall not extend to any judgment for damages arising out of any willful wrongdoing by Employee. The City may compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered thereon. In the event City provides funds for legal criminal defense pursuant to this section and terms of the Government Code, Employee shall reimburse the City for such legal criminal
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7 defense funds if Employee is convicted of a crime involving an abuse of office or position, as provided by Government Code Sections 53243 – 53243.4.
The indemnification provided in this Section shall extend beyond termination of Employee’s engagement and this Agreement to provide protection for any such acts undertaken or committed in Employee’s capacity as City Manager, regardless of whether the notice of filing of a claim or lawsuit occurs during or following engagement with the City.
In the event that the City Manager shall serve as the chief executive of other Cityrelated legal entities then each provision of this Section shall be equally applicable to each City-related legal entity as though set forth in an indemnity agreement between Employee and that legal entity.
N. Bonding: City shall bear the full cost of any fidelity or other bonds required of the Employee under any law, State enabling legislation, or City ordinance.
O. City agrees to provide Employee with a computer, software, and fax/modem at his office work site, and offered a cell phone for the Employee to perform the job and to maintain communication. Employee has declined a City provided cell phone and will be paid $50 per month in-lieu.
Section 9. Reduction of Compensation
City shall not at any time during the term of this Agreement reduce the salary, compensation or any other benefit of employee, except as mutually agreed upon and only to the degree of a reduction across-the-board for all management employees of the City.
Section 10. Termination for Cause
A. In the event the City terminates Employee for cause, then the City may terminate this Agreement immediately, without providing Employee with any notice, opportunity to be heard, or right of appeal. Employee shall be entitled to only the compensation accrued up to the date of termination, payments for accrued unused vacation leave, and such other termination benefits and payments as may be required by law. Employee shall not be entitled to any severance benefits and payments. For purposes of this Agreement, for “cause” is defined to mean as follows:
(1) Conviction of a felony or any offense involving a violation of Employee’s official duties;
(2) If, during the term of this Agreement, Employee becomes mentally or physically incapable of performing the City Manager’s functions and duties as set forth in this Agreement with reasonable accommodation, and it reasonably appears such incapacity will last for more than six (6) months;
(3) Continued abuse or use of prescription or non-prescription drugs or alcohol that materially affects the performance of City Manager’s duties; (4) Repeated and protracted unexcused absences from the City Manager’s office and duties;
(5) Refusal to comply with a lawful order or instruction issued by a majority of the City Council at a lawfully convened meeting;
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8 (6) Deliberate falsification of City records or official documents, or instructing a City employee to commit an act which Employee knows or has reason to know is a crime;
(7) Failure and refusal to carry out the duties of the City Manager as set forth in this Agreement;
(8) Any violation of Section 2.C (1) and (2) of this Agreement.
B. If the City, voters, or the State Legislature acts to amend any provisions of the Municipal Code pertaining to the role, powers, duties, authority or responsibilities of the Employee’s position that substantially changes the form of government, the Employee shall have the right to declare that any such amendment constitutes termination.
Section 11. Notices
Notices pursuant to this Agreement shall be given electronically or by deposit in the custody of the U.S. Postal Service, postage prepaid, addressed as follows:
A. City: City Clerk
City of Calimesa
908 Park Avenue
Calimesa, California 92320
[email protected]
B. Employee: William M. Kolbow
address on file with City
[email protected]
With a courtesy copy to: City Attorney
Richards, Watson & Gershon
350 Grand Ave., 37th Floor
Los Angeles, CA 90071
[email protected]
Alternately, notices required to this Agreement may be personally served in the same manner as is applicable to civil judicial practices. Notice shall be deemed given as of the date of: the electronic notice; personal service; or three days after the date the notice was deposited in the U.S. mail.
Section 12. General Provisions
A. This Agreement shall be binding upon and inure to the benefit of the heirs, et al. and executors of the Employee.
B. This Agreement shall become effective commencing November 28, 2022.
C. If any portion of this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement shall be deemed severable and shall remain in full force and effect.
Section 13. Effect of Waiver
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9 The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.
Section 14. Assignment
Neither this Agreement, nor any right, privilege or obligation of the City Manager hereunder shall be assigned or transferred by him without the prior written consent of the Council. Any attempt at assignment or transfer in violation of this provision shall, at the option of the Council, be null and void and may be considered a material breach of this Agreement.
Section 15. Entire Agreement
From and after the effective date of this Agreement, this Agreement supersedes any and all other agreements, either oral or in writing, between the City and the City Manager. This Agreement contains all of the covenants and agreements between the parties with respect to the City Manager’s employment by the City in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding on either party.
Section 16. Law Governing Agreement
This Agreement shall be governed by and construed in accordance with the laws of the State of California.
Section 17. No Presumption of Drafter
The parties acknowledge and agree that the terms and provisions of this Agreement have been negotiated and discussed between the parties, and this Agreement reflects their mutual agreement regarding the subject matter of this Agreement. Because of the nature of such negotiations and discussions, it would be inappropriate to deem any party to be the drafter of this Agreement and, therefore, no presumption for or against validity or as to any interpretation hereof based upon the identity of the drafter shall be applicable in interpreting or enforcing this Agreement.
Section 18. Attorney’s Fees
If any action at law or in equity, including an action for declaratory relief is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover such amount permitted by law, and the court may award to the prevailing party reasonable attorney’s fees and other costs incurred in connection with such action.
Section 19. Assistance of Counsel
Each party to this Agreement warrants to the other party that it has either had the assistance of counsel in negotiation for, and preparation of this Agreement, or could have had such assistance and voluntarily declined to obtain it.
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10 IN WITNESS WHEREOF, the City of Calimesa has caused this Agreement to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and Employee has signed this Agreement, both in duplicate, the day and year first above written. ___________________________
William Davis, Mayor
City of Calimesa, California
APPROVED AS TO FORM
AND LEGAL CONTENT
___________________________
Quinn Barrow, City Attorney
EMPLOYEE
___________________________
William M. Kolbow
ATTEST
___________________________
Darlene Gerdes, City Clerk