Canyon Lake City Council
November 12, 2025

CITY COUNCIL AGENDA
City of Canyon Lake, California
Wednesday, November 12, 2025
Closed Session Meeting at 5:00 P.M.

Regular Meeting at 6:30 P.M.

City Hall Council Chambers
31516 Railroad Canyon Road
Canyon Lake, CA 92587
CITY COUNCIL MEMBERS:

Mayor Mark Terry
Mayor Pro Tem Kasey Castillo
Council Member Jeremy Smith
Council Member Joshua Steeber
Council Member Dale Welty
P ublic C omment: Any person wishing to address the City Council on any matter within the jurisdiction of the City, whether or not it appears on this agenda, is asked to complete a speaker card and provide it to the City Clerk prior to the start of public comment. The City Council has adopted a time limit of three (3) minutes per person. Comments on specific agenda items will be heard when the item is called. Please note that if you are addressing the City Council on items N OT on the agenda, the Brown Act does not allow discussion of such items. Therefore, the City Council may only do the following: refer the matter to staff, ask for additional information or request a report back, or give a very limited factual response. Electronic comments may be submitted to [email protected]. Comments submitted electronically will be provided to the City Council and included in the official record but will not be read aloud during the meeting.

C E Q A N otice: Unless stated otherwise on the agenda, every item on the agenda is exempt from C EQA Guidelines sections 15060(c), 15061(b)(3), 15273, 15378, 15301, 15323 and/or Public Resources Code section 21065.

C ouncil A gendas: The designated office for inspection of records is the Office of the City Clerk, Canyon Lake City Hall, 31516 Railroad Canyon Road, Canyon Lake, C A 92587. Complete agenda packets are available for public review at City Hall during normal business hours and on the City's website at www.canyonkaleca.gov.

A D A N otice: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting or if you need agenda documents provided in an alternate format, please contact the City Clerk's Office at (951) 244- 2955 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made.

City Council Agenda,

CLOSED SESSION

CALL TO ORDER

ROLL CALL
Castillo, Smith, Steeber, Welty, Terry
PUBLIC COMMENT (3 MINUTES)
Members of the public wishing to address the City Council on any matter listed on the Closed Session agenda are asked to complete a speaker card and provide it to the City Clerk prior to the start of public comment. Comments are limited to Closed Session items only. Each speaker is allowed (3) minutes to speak.

DISCUSSION IT EMS

1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION, Significant Exposure - Pursuant to Government Code Section 54956.9(d)(2): Claimant: M. Borja

2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Pursuant to Government Code Section 54956.9(d)(2): Significant Exposure to Litigation, One case

3. CONFERENCE WITH LEGAL COUNSEL -- INITIATION OF LITIGATION - Pursuant to Government Code Section 54956.9(d)(4): One case

4. PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Pursuant to Government Code Section 54957: Title: City Manager

REGULAR SESSION

CALL TO ORDER

INVOCATION

FLAG SALUTE

ROLL CALL
Castillo, Smith, Steeber, Welty, Terry

CLOSED SESSION REPORT

CEREMONIAL MATTERS
Citizen of the Quarter
Student of the Month
Canyon Lake Quilters
City Council Agenda,

PRESENTATIONS PRESENTATIONS
Elsinore Valley Municipal Water District
Canyon Lake Property Owners Association
Canyon Lake Chamber of Commerce
Riverside County Sheriff's Office
Canyon Lake Fire Department
Non-Profit Spotlight
PUBLIC COMMENT (3 MINUTES)
Members of the public wishing to address the City Council on any matter within the City's jurisdiction are asked to complete a speaker card and provide it to the City Clerk prior to the start of public comment.

Comments on specific agenda items will be heard when the item is called. Comments on Consent Calendar items will be heard prior to the City Council's consideration of that calendar. Each speaker is allowed (3) minutes to speak.

CONSENT CALENDAR
All items listed on the Consent Calendar are considered to be routine in nature and may be enacted in one motion. Individual items may be removed by a Council Member for separate discussion immediately after the adoption of the balance of the Consent Calendar. All ordinance titles are deemed to be read in their entirety and further reading waived on any ordinance listed on the Consent Calendar.

1. Approve Claims and Demands of the City
Recommendation:

Adopt Resolution No. 2025-42 approving Claims and Demands of the City for September 2025 and adopt Resolution No. 2025-43 approving Claims and Demands of the City for October 2025.

2. Approval of City Council Meeting Minutes
Recommendation:

Approve the minutes of the September 23 and October 2, 2025, City Council meetings.

3. Adopt a Resolution Setting the Regular City Council Meeting Schedule for Calendar Year 2026 Recommendation:

Adopt Resolution No. 2025-44 setting the regular City Council meeting schedule for calendar year 2026.

4. Adopt a Resolution Approving a Fire Department Position Reclassification Recommendation:

That the City Council adopt Resolution No. 2025-45 approving the conversion of one (1) part-time Fire Engineer position to one (1) part-time Fire Captain/Paramedic position within the Fire Department; and approve the corresponding amendment to the City's Salary Schedule to include the new part-time Fire Captain/Paramedic classification and pay range.

City Council Agenda,

5. Approve the Fifth Amended and Restated Joint Powers Agreement for the Southwest Communities Financing Authority
Recommendation:

Approve the Fifth Amended and Restated Joint Powers Agreement for the Southwest Communities Financing Authority.

6. Second Reading and Adoption of Ordinance No. 263 - An Ordinance of the City Council of the City of Canyon Lake, California, Repealing Sections 3.26.090 (Water Users' Tax) and 3.26.100 (Sewer Users' Tax) of the Canyon Lake Municipal Code
Recommendation:

Conduct second reading and adopt Ordinance No. 263 - An Ordinance of the City Council of the City of Canyon Lake, California, Repealing Sections 3.26.090 (Water Users' Tax) and 3.26.100 (Sewer Users' Tax) of the Canyon Lake Municipal Code.

7. Second Reading and Adoption of Ordinance No. 265 - An Ordinance of the City Council of the City of Canyon Lake, California, Amending Ordinance No. 260 to Appoint the Chief of Police as the Administrative Head of the Police Department
Recommendation:

Conduct second reading and adopt Ordinance No. 265 - An Ordinance of the City Council of the City of Canyon Lake, California, Amending Ordinance No. 260 to Appoint the Chief of Police as the Administrative Head of the Police Department.

8. Receive and File the Quarterly Investment Report for the Quarter Ended September 30, 2025 Recommendation:

Receive and file the Quarterly Investment Report for the quarter ended September 30, 2025, in compliance with the City's Investment Policy.

9. Adopt a Resolution Approving Budget Adjustments for the City's Rental Fund Recommendation:

Adopt Resolution No. 2025-46 approving budget adjustments for the City's Rental Fund.

10. Consideration of a Change Order for the Canyon Lake Police Department Construction Project in the Amount of $79,356.00
Recommendation:

Approve a change order in the amount of $79,356.00 for the Canyon Lake Police Department Construction Project.

PULLED CONSENT CALENDAR ITEMS
Items removed from the Consent Calendar for separate discussion will be considered at this time.

City Council Agenda,

PUBLIC HEARINGS

11. Adopt a Resolution Adopting a General Plan Amendment (GPA 25-01) Amending the City of Canyon Lake Housing Element for the 6th Cycle, Years 2021 to 2029 Recommendation:
(1) Open the public hearing and take public testimony; and (2) adopt Resolution No. 2025-47 amending the City of Canyon Lake General Plan Housing Element to meet the requirements of the 6th Cycle Housing Element requirements of State law and the California Department of Housing and Community Development, adopting the Addendum to the previous Negative Declaration for the Housing Element, adopted February 9, 2022, and a finding that no substantial changes have occurred in the proposed Project due to new significant information, new environmental effects or new information of substantial importance, consistent with the California Environmental Quality Act (CEQA).

12. Introduction and First Reading of Ordinance No. 266 - An Ordinance of the City Council of the City of Canyon Lake, California, Amending Title 9 (Planning and Zoning), Chapter 9.30 (Mixed Use Zones), Section 9.30.030 (Zones Established) of the Canyon Lake Municipal Code Recommendation:
(1) Open the public hearing and take public testimony; (2) find the proposed Zoning Ordinance amendment is exempt from the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and (3) waive full reading and introduce by title only Ordinance No. 266 - An Ordinance of the City Council of the City of Canyon Lake, California, Amending Title 9 (Planning and Zoning), Chapter

9.30 (Mixed Use Zones), Section 9.30.030 (Zones Established) of the Canyon Lake Municipal Code.

13. Adopt a Resolution Approving a Facility Use Policy and Associated Fee Schedule for the Use of City Council Chambers
Recommendation:
(1) Open the public hearing and take public testimony; and (2) adopt Resolution No. 2025-48 approving a Facility Use Policy and fee schedule governing the use of City Council Chambers.

BUSINESS ITEMS

14. Adopt Urgency Ordinance No. 267 Adopting by Reference the 2025 California Building Standards Code (Title 24, California Code of Regulations), Including the 2025 California Fire Code, with Local Amendments; Repealing Conflicting Ordinances; and Declaring the Urgency Thereof; and Introduction and First Reading of Ordinance No. 268 Adopting by Reference the 2025 California Building Standards Code (Title 24, California Code of Regulations) with Local Amendments and Repealing Conflicting Ordinances
Recommendation:
(1) Adopt Urgency Ordinance No. 267 - An Urgency Ordinance of the City Council of the City of Canyon Lake, California, Adopting by Reference the 2025 California Building Standards Code (Title 24, California Code of Regulations), Including the 2025 California Fire Code, with Local Amendments; Repealing Conflicting Ordinances; and Declaring the Urgency Thereof." by at least a four-fifths vote of the City Council; and (2) introduce and read by title only Ordinance No. 268 - An Ordinance of the City Council of the City of Canyon Lake, California Adopting by Reference the 2025 California Building Standards Code (Title 24, California Code of Regulations) with Local Amendments and Repealing Conflicting Ordinances.

City Council Agenda,

CITY COUNCIL AND COMMITTEE REPORTS / COMMENTS

CITY MANAGER COMMENTS

ANNOUNCEMENTS
The next regular City Council meeting will be held on December 10, 2025.

ADJOURNMENT
AFFIDAVIT OF POSTING: I, Sheryl L. Garcia, City Clerk of the City of Canyon Lake, California, do hereby declare that the foregoing agenda was posted as of the date noted below, at least seventy-two (72) hours prior to the meeting per Government Code 54954.2, and as required by Resolution 2019-42.

Sheryl L. Garcia, MMC, CPM
City Clerk
Dated: November 6, 2025
City Council Agenda,

ITEM NO. 1

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Elizabeth Luna, Accounting Specialist
DATE: 11/12/2025
SUBJECT: Approve Claims and Demands of the City
Recommendation:

Adopt Resolution No. 2025-42 approving Claims and Demands of the City for September 2025 and adopt Resolution No. 2025-43 approving Claims and Demands of the City for October 2025.

Background/Analysis:

All claims and demands are reported and summarized for review and approval by the City Council on a routine basis at each City Council meeting. The attached claims from September 2025 and October 2025 represent the paid claims and demand since the City Council meeting of September 23, 2025.

Fiscal Impact Yes/No:No
Additional Fiscal Information:

All claims and demands are paid from appropriated funds or authorized resources of the City and have been recorded in accordance with the City's policies.

Attachments:
1 - Resolution Sept 2025
Ex A - Claims and Demands Sept 2025
2 - Resolution Oct 2025
Ex A - Claims and Demands October 2025
City Council Agenda,

RESOLUTION NO. 2025-42

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CANYON LAKE,

CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN

EXHIBIT A
WHEREAS, the Finance & Planning Committee of the City of Canyon Lake reviewed Exhibit A at their regularly scheduled meeting on November 12, 2025; and WHEREAS, Exhibit A was presented at the regular meeting of the City Council on November 12, 2025, at which all present were given an opportunity to comment.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CANYON LAKE DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated herein by reference.

Section 2. Demands are approved as shown on the Demand\Warrant Register of November 12th, in the amount of $964,833.37 as follows:

Payroll Earnings (Direct Deposit) $159,699.58 (For Month of September) Payroll Processing Fees $394.36 (For Month of September) Payroll Taxes - Employer & Employee $49,119.74 (For Month of September) Payroll CLFAD $738.56 (For Month of September)
Payroll CS $795.04 (For Month of September)
On-line Retirement $17,126.31 (For Month of September)
On-line Health $30,389.09 (For Month of September)
GASB 68 Reporting Fee $350.00 (For Month of September)
Nationwide Deferred Comp. $6,939.80 (For Month of September) General $699,280.89 (For Month of September)
Total
$964,833.37
Section 3. The  provisions  of  this  Resolution  are  severable  and  if  any  provision,  clause, sentence,  word  or  part  thereof  is  held  illegal,  invalid,  unconstitutional,  or inapplicable  to  any  person  or  circumstances,  such  illegality,  invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Resolution or their applicability to other persons or circumstances.

Section 4.   That the City Clerk shall certify to the adoption of this Resolution and that the same shall be in full force and effect.

City Council Agenda,

Section 5.  This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 12th day of November 2025. ______________________________
Mark Terry, Mayor
ATTEST:
________________________________________
Sheryl L. Garcia, MMC, CPM
City Clerk
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RESOLUTION NO. 2025-43

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CANYON LAKE,

CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN

EXHIBIT A
WHEREAS, the Finance & Planning Committee of the City of Canyon Lake reviewed Exhibit A at their regularly scheduled meeting on November 12, 2025; and WHEREAS, Exhibit A was presented at the regular meeting of the City Council on November 12, 2025, at which all present were given an opportunity to comment.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CANYON LAKE DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated herein by reference.

Section 2. Demands are approved as shown on the Demand\Warrant Register of November 12th, in the amount of $1,151,377.99 as follows:

Payroll Earnings (Direct Deposit) $164,535.10 (For Month of October) Payroll Processing Fees $372.28 (For Month of October)
Payroll Taxes - Employer & Employee $47,096.93 (For Month of October) Payroll CLFAD $ 738.56 (For Month of October)
Payroll CS $795.04 (For Month of October)
On-line Retirement $14,129.36 (For Month of October)
On-line Health $29,544.89 (For Month of October)
Nationwide Deferred Comp. $7592.58 (For Month of October) General $886,625.30 (For Month of October)
Total
$1,151,430.04
Section 3. The  provisions  of  this  Resolution  are  severable  and  if  any  provision,  clause, sentence,  word  or  part  thereof  is  held  illegal,  invalid,  unconstitutional,  or inapplicable  to  any  person  or  circumstances,  such  illegality,  invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Resolution or their applicability to other persons or circumstances.

Section 4.   That the City Clerk shall certify to the adoption of this Resolution and that the same shall be in full force and effect.

City Council Agenda,

Section 5.  This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 12th day of November 2025. ______________________________
Mark Terry, Mayor
ATTEST:
________________________________________
Sheryl L. Garcia, MMC, CPM
City Clerk
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ITEM NO. 2

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Sheryl Garcia, Administrative Services Director/City Clerk DATE: 11/12/2025
SUBJECT: Approval of City Council Meeting Minutes
Recommendation:

Approve the minutes of the September 23 and October 2, 2025, City Council meetings.

Background/Analysis:

Minutes of City Council meetings are prepared by the City Clerk to serve as the official record of City Council actions. City Council approval of the minutes ensures the accuracy of the record before they are entered into the City's permanent archives.

Fiscal Impact Yes/No:No
Attachments:
1 - 9-23-25 Minutes
2 - 10-2-25 Minutes
City Council Agenda,

MINUTES

REGULAR MEETING OF THE

CANYON LAKE CITY COUNCIL
Canyon Lake City Hall
31516 Railroad Canyon Road
Canyon Lake, CA 92587
Tuesday, September 23, 2025
Closed Session – 5:00 p.m.

CALL TO ORDER
Mayor Terry called the meeting to order at 5:00 p.m.

ROLL CALL

Present: Mayor Pro Tem Castillo, Council Member Smith, Council Member Steeber, Council Member Welty and Mayor Terry.

Absent: None.

PUBLIC COMMENTS
There were no public comments.

CLOSED SESSION

1. CONFERENCE  WITH  LEGAL  COUNSEL  -  ANTICIPATED  LITIGATION Significant Exposure - Pursuant to Government Code Section 54956.9(d)(2):

Claimant: M. Borja

2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Pursuant to Government Code Section 54957:

Title: City Manager
The City Council entered Closed Session at 5:00 p.m.

City Council Agenda,

Minutes 9/23/2025

Open Session – 6:30 p.m.

CALL TO ORDER
Mayor Terry called the meeting to order at 6:30 p.m.

INVOCATION
The Invocation was led by Council Member Smith.

FLAG SALUTE
The Flag Salute was led by Ryan Moore.

ROLL CALL

Present: Mayor Pro Tem Castillo, Council Member Smith, Council Member Steeber, Council Member Welty and Mayor Terry.

Absent:  None.

CLOSED SESSION REPORT
City Attorney Graham stated that no reportable action was taken.

CEREMONIAL MATTERS
Mayor  Terry  and  the  City  Council  presented  a  City  Tile  to  retired  Riverside  County Sheriff’s Captain Jim Rayls.

City Manager Brown announced Jim Rayls as the new police chief for the Canyon Lake Police Department.

PRESENTATIONS
Director Darcy Burke provided an update on behalf of the Elsinore Valley Municipal Water District.

Board Vice-President Jeff Bill provided an update on behalf of the Canyon Lake Property Owner’s Association.

President Johnny Pineda provided an update on behalf of the Canyon Lake Chamber of Commerce.

Fire Chief LaTendresse provided an update on fire statistics.

City Council Agenda,

Minutes 9/23/2025

Mayor Terry provided a non-profit spotlight on behalf of the Oak Grove Center.

PUBLIC COMMENT
Donna  Richie  thanked  the  City  Council  for  spotlighting  non-profit  organizations.    She congratulated Mr. Rayls on his  retirement and thanked him for all he has done for the community.

CONSENT CALENDAR
Council Member Steeber pulled Item No. 6 for further consideration.

Motion and second by Council Member Smith/Council Member Welty to approve Consent Calendar Items 1-5 and 7-10.

Motion carried 5-0, with Mayor Pro Tem Castillo, Council Member Smith, Council Member Steeber, Council Member Welty and Mayor Terry voting aye. (1)  Waive Full Reading, Read all Ordinances by Title Only (2) Approve Claims and Demands of the City
Action taken:  The City Council adopted Resolution No. 2025-39 Approving Claims and Demands of the City.
(3) Approval of City Council Minutes
Action  taken:    The  City  Council  approved  the  Minutes  of  the  City  Council  Meeting  of August 13, 2025.
(4) Second  Reading  and  Adoption  of  Ordinance  256  -  An  Ordinance  of  the  City Council of the City of Canyon Lake, California, Amending Title 3, Chapter 3.36 (Grading and Planning Fees) of the Canyon Lake Municipal Code
Action taken:  The City Council adopted Ordinance 256 - An Ordinance of the City Council of  the  City  of  Canyon  Lake,  California,  Amending  Title  3,  Chapter  3.36  (Grading  and Planning Fees) of the Canyon Lake Municipal Code.
(5) Second Reading and Adoption of Ordinance No. 257 - An Ordinance of the City Council of the City of Canyon Lake, California, Approving an Amendment to the Canyon Lake Municipal Code, Title 9: Planning and Zoning, Section 9.1 Uses Permitted Action taken:  The City Council adopted Ordinance No. 257 - An Ordinance of the City Council of the City of Canyon Lake, California, Approving and Amendment to the Canyon Lake Municipal Code, Title 9: Planning and Zoning, Section 9.1 Uses Permitted.

City Council Agenda,

Minutes 9/23/2025

(7) Second Reading and Adoption of Ordinance No. 260 - An Ordinance of the City Council of the City of Canyon Lake, California, Formally Establishing the Canyon Lake Police  Department,  Declaring  the  City’s  Intent  to  Participate  in  the  California  Peace Officer Standards and Training (POST) Program, Accepting Penal Code Requirements, and Authorizing Necessary Implementation Actions
Action taken:  The City Council adopted Ordinance No. 260 - An Ordinance of the City Council of the City of Canyon Lake, California, to Formally Establishing the Canyon Lake Police  Department,  Declaring  the  City’s  Intent  to  Participate  in  the  California  Peace Officer Standards and Training (POST) Program, Accepting Penal Code Requirements, and Authorizing Necessary Implementation Actions.
(8) Second  Reading  and  Adoption  of  Ordinance  261  -  An  Ordinance  of  the  City Council  of  the  City  of  Canyon  Lake,  California,  Adding  Title  5,  Business  Regulations, Chapter 5.30 (Commercial Filming) to the Canyon Lake Municipal Code Action taken:  The City Council adopted Ordinance No. 261 - An Ordinance of the City Council  of  the  City  of  Canyon  Lake,  California,  Adding  Title  5,  Business  Regulations, Chapter 5.30 (Commercial Filming) to the Canyon Lake Municipal Code. (9) Adopt a Resolution Approving a Budget Adjustment in the Amount of $11,750 for the Battle of the Cities Golf Tournament
Action  taken:    The  City  Council  adopted  Resolution  No.  2025-41  approving  a  budget adjustment of $11,750 for the Battle of the Cities Golf Tournament. (10) Adopt  a  Resolution  Approving  the  List  of  Projects  for  Fiscal  Year  2025-2026 Funded by SB 1: the Road Repair and Accountability Act of 2017 Action taken:  The City Council  adopted Resolution No.  2025-40  approving the Fiscal Year 2025-2026 project list for Senate Bill 1 (Road Repair and Accountability Act of 2017) Road Maintenance and Rehabilitation Account (RMRA) funding

PULLED CONSENT CALENDAR ITEMS
Council Member Steeber pulled this item for further consideration. (6) Second Reading and Adoption of Ordinance No. 258 - An Ordinance of the City Council of the City of Canyon Lake, California, to Repeal and Replace Title 3 (Revenue and Finance), Chapter 3.08 (Purchases) of the Canyon Lake Municipal Code Council Member Steeber stated he was comfortable with the $50,000 signing threshold for the City Manager.

City Council Agenda,

Minutes 9/23/2025

Motion and second by Council Member Smith/Council Member Welty to adopt Ordinance No.  258  - An Ordinance  of the City Council  of the City  of Canyon  Lake, California, to Repeal  and Replace Title  3  (Revenue  and Finance), Chapter  3.08  (Purchases)  of the Canyon Lake Municipal Code.

Motion carried 4-1, with Mayor Pro Tem Castillo, Council Member Smith, Council Member Welty and Mayor Terry voting aye and Council Member Steeber voting no.

PUBLIC HEARINGS
None.

BUSINESS ITEMS
(11) Designation  of  a  Voting  Delegate  and  Alternate(s)  for  the  League  of  California Cities 2025 Annual Conference and Expo Annual Business Meeting City Clerk Garcia provided a presentation.

There were no public comments.

Motion  and  second  by  Council  Member  Smith/Mayor  Pro  Tem  Castillo  to  designate Council  Member  Welty  as  the  voting  delegate  and  Council  Member  Steeber  as  the alternate for the League of California Cities 2025 Annual Conference and Expo Annual Business Meeting.

Motion carried 5-0, with Mayor Pro Tem Castillo, Council Member Smith, Council Member Steeber, Council Member Welty and Mayor Terry voting aye. (12) Introduction and First Reading of Ordinance No. 263 - An Ordinance of the City Council  of  the  City  of  Canyon  Lake,  California,  Repealing  Sections  3.26.090  (Water Users’ Tax) and 3.26.100 (Sewer Users’ Tax) of the Canyon Lake Municipal Code City Attorney Graham provided a presentation.

There were no public comments.

Motion  and  second  by  Mayor  Pro  Tem  Castillo/Council  Member  Smith  to  waive  full reading and introduce by title only Ordinance No. 263 – An Ordinance of the City Council of the City of Canyon Lake, California, Repealing Sections 3.26.090 (Water Users’ Tax) and 3.26.100 (Sewer Users’ Tax) of the Canyon Lake Municipal Code.

Motion carried 5-0, with Mayor Pro Tem Castillo, Council Member Smith, Council Member Steeber, Council Member Welty and Mayor Terry voting aye.

City Council Agenda,

Minutes 9/23/2025

COMMITTEE AND COUNCIL REPORTS/COMMENTS
Council  Member  Smith  reported  that  Riverside  Transit  Agency  (RTA)  ridership  has increased and that the agency is investing in new EV charging stations. He noted that the RCTC carpool lane sticker program will be discontinued as of January 1. He also shared that the master agreement with the 91 and 241 toll roads has been approved, with plans to expand lanes and extend the FasTrak system down Interstate 15 beginning next year.

Council  Member  Smith  commended  the  success  of  the  September  11  ceremony  and recognized Council Member Steeber, the Mayor, and the Fire Department for their efforts.

Council Member Welty noted that T-NOW held a meeting in Canyon Lake and it was a great opportunity to discuss the Railroad Canyon Road HSIP project. He announced that the Western Riverside County Regional Conservation Authority (RCA) is reviewing and updating  its  plan  to  address  current  development  challenges  and  encouraged collaboration with the RCA to make land more developable.

Mayor Pro Tem Castillo announced that the Pumpkin Bash will take place on October 23 and expressed gratitude for the opportunity to live in Canyon Lake and be part of the City’s ongoing progress.

Council Member Steeber stated that it was an honor to participate in the September 11 ceremony.  He shared that the Student of the Month program has resumed and that City Manager  Brown  will  join  him  next  month.  He  also  attended  the  75th  Anniversary celebration for EVMWD and reported that Harborfest was a great success.

Mayor  Terry  announced  that  “Coffee  at  the  Country  Club”  will  be  held  soon  and encouraged residents to join and stay informed. He noted that the State of the City event will take place on October 2 and the Battle of the Cities golf tournament will follow on October 3, featuring 19 teams this year compared to six last year. He attended the Wild Blush  Luxe  ribbon  cutting  and  highlighted  Sunday  Funday  golf  which  drew  over  100 golfers. Finally, he spoke at the Charlie Kirk Vigil at Holiday Harbor, attended by over 500 people, which was a beautiful and fitting community gathering.

CITY MANAGER COMMENTS
City Manager Brown stated that the Merchants Association recently met to discuss ways to enhance the Towne Center, including improving vegetation maintenance, addressing conditions at Veterans Park, and reviewing traffic flow issues related to new tenants. He thanked his fellow directors for their efforts and strategic vision.

He also announced that the Pumpkin Bash is approaching and noted that last year’s event was a great success. This year’s event will include additional safety measures, such as a shuttle service, and even more attractions than before. He stated that preparations for the State of the City event are underway.

City Council Agenda,

Minutes 9/23/2025

ANNOUNCEMENTS
Mayor  Terry  announced  that  the  next  regular  City  Council  meeting  will  be  held  on November 12, 2025.

ADJOURNMENT
At 8:01 p.m., Mayor Terry adjourned the meeting.

Respectfully submitted,
__________________________
Sheryl L. Garcia, MMC, CPM
City Clerk
City Council Agenda,

MINUTES

SPECIAL MEETING OF THE

CANYON LAKE CITY COUNCIL
Canyon Lake City Hall
31516 Railroad Canyon Road
Canyon Lake, CA 92587
Thursday, October 2, 2025
Closed Session – 4:00 p.m.

CALL TO ORDER
Mayor Terry called the meeting to order at 4:00 p.m.

ROLL CALL

Present: Mayor Pro Tem Castillo, Council Member Smith, Council Member Steeber, Council Member Welty and Mayor Terry.

Absent: None.

PUBLIC COMMENTS
There were no public comments.

CLOSED SESSION
(1) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION, Pursuant to Government Code Section 54956.9(d)(2)
Significant Exposure to Litigation, One case
(2) PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Pursuant to Government Code Section 54957
Title: City Manager
The City Council entered Closed Session at 4:00 p.m.

City Council Agenda,

Minutes 10/2/2025

Open Session – 4:30 p.m.

CALL TO ORDER
Mayor Terry called the meeting to order at 4:30 p.m.

FLAG SALUTE
The Flag Salute was led by Council Member Steeber.

ROLL CALL

Present: Mayor Pro Tem Castillo, Council Member Smith, Council Member Steeber, Council Member Welty and Mayor Terry.

Absent:  None.

CLOSED SESSION REPORT
City Attorney Graham stated that no reportable action was taken.

PUBLIC COMMENT
There was no public comment.

BUSINESS ITEMS
(1) Adopt Urgency Ordinance No. 264 - An Urgency Ordinance of the City Council of the City of Canyon Lake, California, Amending Ordinance No. 260 to Appoint the Chief of Police as the Administrative Head of the Police Department; and (2) Introduction and First Reading of Ordinance No. 265 - An Ordinance of the City Council of the City of Canyon Lake,  California,  Amending  Ordinance  No.  260  to  Appoint  the  Chief  of  Police  as  the Administrative Head of the Police Department
City Manager Brown provided a presentation.

There were no public comments.

Motion  and  second  by  Council  Member  Smith/Council  Member  Steeber  to:  (1)  adopt Urgency Ordinance No. 264  - An Urgency Ordinance of the City Council of the City of Canyon Lake, California, Amending Ordinance No. 260 to Appoint the Chief of Police as the Administrative Head of the Police Department; and (2) introduce Ordinance No. 265 - An  Ordinance  of  the  City  Council  of  the  City  of  Canyon  Lake,  California,  Amending Ordinance No. 260 to Appoint the Chief of Police as the Administrative Head of the Police Department.

City Council Agenda,

Minutes 10/2/2025

Motion carried 5-0, with Mayor Pro Tem Castillo, Council Member Smith, Council Member Steeber, Council Member Welty and Mayor Terry voting aye. (2) Recess and Travel to the 2025 State of the City Address At 4:35 p.m., Mayor Terry recessed the Special City Council meeting and the City Council traveled to the 2025 State of the City Address located at 5:00 p.m., Canyon Lake Lodge, 22200 Canyon Club Drive, Canyon Lake, CA 92587.
(3) Presentation of the 2025 State of the City Address
The City Council presented the 2025 State of the City Address.

ADJOURNMENT
At 7:13 p.m., Mayor Terry adjourned the meeting.

Respectfully submitted,
__________________________
Sheryl L. Garcia, MMC, CPM
City Clerk
City Council Agenda,

ITEM NO. 3

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Brianna Hemsley, Executive Assistant to the City Manager DATE: 11/12/2025
SUBJECT: Adopt a Resolution Setting the Regular City Council Meeting Schedule for Calendar Year 2026
Recommendation:

Adopt Resolution No. 2025-44 setting the regular City Council meeting schedule for calendar year 2026.

Background/Analysis:

Under Chapter 2.01 of the Canyon Lake Municipal Code, the City Council establishes its regular meetings by resolution. Resolution No. 2022-56, adopted September 14, 2022, sets the regular meeting time as the second Wednesday of each month at 6:30 p.m.

The proposed resolution formally adopts the City Council's annual meeting schedule for the upcoming calendar year. City Council meetings are regularly held on the second Wednesday of each month.

However, in November 2026, the second Wednesday falls on Veterans Day, a federal holiday.

Therefore, the November 2026 meeting will be rescheduled to the following Wednesday. Establishing the meeting calendar in advance provides transparency and predictability for the public, allows for coordinated planning of City business and community events, and ensures compliance with noticing requirements under the Brown Act.

Fiscal Impact Yes/No:No
Attachments:
1 - Resolution
City Council Agenda,

RESOLUTION NO. 2025-44

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CANYON LAKE,

CALIFORNIA, SETTING THE REGULAR CITY COUNCIL MEETING SCHEDULE FOR CALENDAR YEAR 2026
WHEREAS, pursuant to Chapter 2.01 of the Canyon Lake Municipal Code regular meetings of the City Council shall be held on days, times and locations as may be established by resolution; and
WHEREAS, Resolution No. 2022-56, adopted September 14, 2022, sets the regular meeting time as the second Wednesday of each month at 6:30 p.m.; and WHEREAS, setting an annual schedule of regular City Council meetings assists City Council and staff with advance planning and scheduling of City business.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CANYON LAKE DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated herein by reference.

Section 2. The City Council hereby establishes the following regular City Council meeting dates for calendar year 2026, beginning at 6:30 p.m. at City Hall:

January 14
February 11
March 11
April 8
May 13
June 10
July – dark
August 12
September 9
October 14
November 18
December 9
Section 3. Closed session and special City Council meetings may be scheduled as necessary.

Section 4. The City Manager is hereby authorized to make changes to this schedule as necessary.

City Council Agenda,

Section 5. The provisions of this Resolution are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Resolution or their applicability to other persons or circumstances.

Section 6. That the City Clerk shall certify to the adoption of this Resolution and that the same shall be in full force and effect.

Section 7. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 12th day of November 2025. ______________________________
Mark Terry, Mayor
ATTEST:
________________________________________
Sheryl L. Garcia, MMC, CPM
City Clerk
City Council Agenda,

ITEM NO. 4

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Jeff LaTendresse, Fire Chief
DATE: 11/12/2025
SUBJECT: Adopt a Resolution Approving a Fire Department Position Reclassification Recommendation:

That the City Council adopt Resolution No. 2025-45 approving the conversion of one (1) part-time Fire Engineer position to one (1) part-time Fire Captain/Paramedic position within the Fire Department; and approve the corresponding amendment to the City's Salary Schedule to include the new part-time Fire Captain/Paramedic classification and pay range.

Background/Analysis:

The Fire Department currently employs a combination of full-time and part-time personnel to provide fire suppression, emergency medical response, and community risk reduction services. The Department's operations needs have evolved in recent years, including increased training demands, administrative oversight, and coordination of part-time and reserve personnel.

At present, the Department has utilized one part-time position to support basic firefighting and engineering skills. As the part-time Fire Engineer was hired into a full-time position, the need for supplemental personnel in a supervisory rank has become more apparent. To address this, staff has evaluated the Department's organizational structure and determined that converting an existing part-time Fire Engineer position to a part-time Fire Captain/Paramedic position will improve supervision, training, operational efficiency, add greater flexibility, and operational efficiency without increasing the total number of budgeted positions.

The proposed part-time Fire Captain/Paramedic position will provide supervision of a fire engine company, assist with staffing for vacancies of all ranks, and provide supplemental staffing for strike team responses. In addition, this position can assist with ensuring adherence to department policies, safety procedures, and training standards. The position will also support incident command functions and assist with administrative duties such as scheduling, training, and fire prevention and community risk reduction services. The timing for this conversion is advantageous as the existing part-time Fire Engineer was recently hired as a full-time Fire Captain. The proposed salary range aligns proportionally with the existing full-time Fire Captain/Paramedic pay scale and maintains internal pay equity within the Fire Department.

Fiscal Impact Yes/No:No
Additional Fiscal Information:

While the actual hourly rate will increase with the reclassification, the budgeted allotment will not increase.

City Council Agenda,

Attachments:
1 - Resolution
Ex A - Salary Schedule
City Council Agenda,

RESOLUTION NO. 2025-45

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CANYON LAKE,

CALIFORNIA, APPROVING THE UPDATED SALARY AND WAGE SCHEDULE FOR

SAFETY EMPLOYEES
WHEREAS, the City Council has authorized the establishment of a municipal fire department to enhance public safety services and ensure local control over fire department operations; and WHEREAS, to ensure adequate staffing of the appropriate rank is always available, it is necessary to reclassify some part-time positions, specifically the current Fire Engineer to Fire Captain/Paramedic; and
WHEREAS, the Fire Chief requires support from qualified personnel to assist in planning, coordinating, and implementing the foundational operations and activities of the department; and WHEREAS, staff has also developed a proposed Salary and Wage Schedule for safety personnel within the fire department to ensure appropriate and competitive compensation for the recruitment and retention of qualified individuals; and
WHEREAS, the adoption of the proposed Salary and Wage Schedule is necessary to move forward with recruitment and ensure the successful staffing of the City’s municipal fire department.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CANYON LAKE DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated herein by reference.

Section 2. The City Council hereby authorizes salary ranges for the Part-Time Fire Captain/Paramedic as set forth on Exhibit “A” hereto.

Section 3. The provisions of this Resolution are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Resolution or their applicability to other persons or circumstances.

Section 4. That the City Clerk shall certify the adoption of this Resolution and that the same shall be in full force and effect.

City Council Agenda,

Section 5. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED this 12th day of November 2025. ______________________________
Mark Terry, Mayor
ATTEST:
__________________________
Sheryl L. Garcia, MMC, CPM
City Clerk
City Council Agenda,

SAFETY SALARY SCHEDULE
Proposed – Effective November 14, 2025

FIRE DEPARTMENT
Fire Chief and Department Heads
Job Title Allocated
Fire Chief 1 Per Contract Department Head Range: $131,760.68 – $166,829.09 Battalion Chief 1.5 Per Contract

Hourly/Non-Exempt Full Time Employees
Job Title Allocated Step A Step B Step C Step D Step E
Captain 0 $27.09/hr. $28.44/hr. $29.86/hr. $31.36/hr. $32.92/hr.

Captain/Paramedic 3.5 $28.43/hr. $29.85/hr. $31.35/hr. $32.91/hr. $34.56/hr.

Engineer 0 $24.62/hr. $25.85/hr. $27.15/hr. $28.50/hr. $29.93/hr.

Engineer/Paramedic 3 $25.85/hr. $27.15/hr. $28.50/hr. $29.93/hr. $31.43/hr.

Firefighter/Paramedic 3 $22.40/hr. $23.52/hr. $24.69/hr. $25.93/hr. $27.22/hr.

Volunteer Positions
Job Title Allocated Stipend
Reserve Firefighter $100.00 per 24-hour shift
Safety Allocated Positions
Full Time: 11
Part Time: 2
City Council Agenda,

POLICE DEPARTMENT
Police Chief and Department Heads
Job Title Allocated
Police Chief 1 Per Contract Department Head Range: $131,760.68 – $166,829.09 Exempt Full Time Employees
Job Title Allocated Step A Step B Step C Step D Step E
Supervising Community
Services Officer 1 $66,993.45 $70,343.12 $73,860.28 $77,553.29 $81,430.96 Safety Allocated Positions
Full Time: 2
Part Time:

City Council Agenda,

ITEM NO. 5

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Brianna Hemsley, Executive Assistant to the City Manager DATE: 11/12/2025
SUBJECT: Approve the Fifth Amended and Restated Joint Powers Agreement for the Southwest Communities Financing Authority
Recommendation:

Approve the Fifth Amended and Restated Joint Powers Agreement for the Southwest Communities Financing Authority.

Background/Analysis:

In November 2004, the Southwest Communities Financing Authority (SCFA) was established as a Joint Powers Authority (JPA), between the cities of Canyon Lake, Lake Elsinore, Murrieta, and Temecula as well as the County of Riverside. In October, 2010, the City of Wildomar was added as a member of the JPA. The SCFA JPA was created to finance, construct, and operate a regional animal shelter serving Southwest Riverside County. The shelter was completed and opened on October 4, 2010.

Under the agreement, member agencies collaborate on the construction, funding, and operation of the shelter, while maintaining independent authority over their respective field services and animal control operations. The SCFA is overseen by a Board of Directors, with one representative from each member agency.

Amendments to the agreement include the addition of a new recital under Section 7 (Fiscal Obligations of the Parties), establishing a new subsection (h) that requires Member Cities and the County to remit invoices in advance of each quarter to the County Executive Office for subsequent payment to Animal Friends of the Valleys (AFV). Section 8 (Officers and Employees) has also been revised to clarify that the Vice Chairperson will serve as Chairperson for the remainder of the term, rather than only until the vacancy is filled as outlined in the prior agreement. Additional updates include a revision to the City of Temecula's address and an update to the signatory line for the City of Murrieta.

The agreement further establishes clear procedures for administration, financial management, legal compliance, and staff support, demonstrating the member agencies shared commitment to sustainable and cooperative animal care services.

Fiscal Impact Yes/No:No
Attachments:
1 - Fifth Amended and Restated JPA with SCFA
City Council Agenda,

1 FIFTH AMENDED AND RESTATED JOINT POWERS AGREEMENT BETWEEN THE COUNTY OF RIVERSIDE;
THE CITY OF CANYON LAKE; THE CITY OF LAKE ELSINORE;
THE CITY OF MURRIETA; THE CITY OF TEMECULA;
THE CITY OF WILDOMAR; AND THE CITY OF MENIFEE;

FOR THE

SOUTHWEST COMMUNITIES FINANCING AUTHORITY
(Animal Shelter)
This Fifth Amended and Restated Joint Powers Agreement (“Agreement”), is made and entered into this 1st day of June, 2025 (“Effective Date”) by and between the County of Riverside (hereafter referred to as "COUNTY");the City of Canyon Lake ("Canyon Lake"); City of Lake Elsinore ("Lake Elsinore"); City of Murrieta ("Murrieta"); City of Temecula ("Temecula"); and City of Wildomar ("Wildomar"); and City of Menifee (“Menifee”), individually as “City” or “Party”, and collectively, the "Cities" or “Parties”, each body being a body corporate and politic of the State of California, or public entities or political subdivision of the State of California.

RECITALS:

WHEREAS, COUNTY, Canyon Lake, Lake Elsinore, Murrieta, Temecula, Wildomar and, Menifee have mutual interests in the continued operation of an animal shelter located within the geographic area common to all Parties within the geographic boundaries, attached hereto and incorporated here by this reference as Attachment A, in compliance with State laws and regulations; and
WHEREAS, the Board of Directors (“Board”) of the Southwest Communities Financing Authority (“SCFA”) approved that certain Joint Powers Agreement, dated November 30, 2004, between COUNTY, Lake Elsinore, Canyon Lake, Murrieta, and Temecula for the purpose of constructing an animal shelter in the southwest portion of the County of Riverside; and WHEREAS, the Board of SCFA approved that certain Second Amended and Restated Joint Powers Agreement, dated January 29, 2008, between COUNTY, Lake Elsinore, Canyon Lake, Murrieta, and Temecula;
WHEREAS, the Board of SCFA approved that certain Third Amended and Restated Joint Powers Agreement, dated November 2, 2010, between COUNTY, Lake Elsinore, Canyon Lake, Murrieta, Temecula, and Wildomar, accepting Wildomar as a JPA member; City Council Agenda,

2 WHEREAS, the Board of SCFA approved that certain Fourth Amended and Restated Joint Powers Agreement, dated November 1, 2020, between County, Lake Elsinore, Canyong Lake, Murrieta, Temecula, Wildomar, and Menifee, accepting Menifee as a JPA member; WHEREAS, the Board of SCFA desires to amend and restate the agreement to state that Member Cities and County shall pay invoices in advance of each quarter; WHEREAS, it is the interest and desire of the Parties to amend and restate that certain Fourth Amended and Restated Joint Powers Agreement to continue SCFA as a Joint Powers Agency, separate and apart from the Parties hereto, as hereinafter described and set forth, which entity shall set about the task of accomplishing the purpose of this Agreement in a manner most capable of promoting the greatest public good and welfare; and WHEREAS, the Parties hereto are each empowered by law to provide for the animal shelter needs to eligible residents of each City either directly, or by contract or similar arrangement; NOW, THEREFORE, in consideration of the above recitals, of the mutual promises and agreements herein contained and for other valuable consideration, the parties hereto agree as follows:

SECTION 1. PURPOSE
This Fifth Amended and Restated Joint Powers Agreement (hereinafter referred to as "Agreement") is made pursuant to the provisions of Article 1, Chapter 5, Division 7 of Title 1 (commencing with Section 6500) of the California Government Code, (hereinafter referred to as the "Act") for the express purpose of constructing and housing animals, also known as operating an animalshelter, to serve residents ofthe Parties hereof. Additionally, this Agreement shall permit the financing of public capital improvements and those purposes permitted under the Marks-Roos Local Bond Pooling Act of 1985, being Article 4, Chapter 5, Division 7 of Title 1 (commencing with Section 6584) of the California Government Code (the "Bond Law"). It is the intent of this Agreement that none of the decisions regarding field service boundaries or levels of service for animal control for each of the Cities shall be affected by the creation of this JPA, or by membership in this JPA.

The purpose of this Agreement shall be accomplished and the common powers of the parties hereto exercised in the manner hereinafter set forth. //
//
City Council Agenda,

3 SECTION 2. CREATION OF AUTHORITY
Pursuant to the Act and the Bond Law, there is hereby created a public entity to be known as the Southwest Communities Financing Authority ("SCFA"). SCFA shall be a public entity, separate and apart from the parties hereto, and as provided by law and not otherwise prohibited by this Agreement, shall be empowered to take such actions as may be necessary or desirable to implement and carry out the purpose of this Agreement.

SECTION 3. TERM
This Agreement shall become as of the Effective Date (defined above) and shall continue in full force and effect until terminated as provided in Section 4 below.

SECTION 4. TERMINATION AND AMENDMENTS
a. The Parties hereto may amend this Agreement by mutual written consent. b. The Parties hereto may terminate their participation in the Joint Powers Authority and this Agreement as provided herein.
c. If SCFA has incurred no obligations, each Party may terminate this Agreement by giving not less than sixty (60) days written notice thereof to the all other parties. d. If SCFA has acquired any indebtedness, fiscal obligation, and/or any property, each Party hereto may terminate this Agreement by giving twelve (12) months written notice thereof to all other Parties subject to the provisions of Sections 4(e) and 4(f) herein. e. This Agreement cannot be terminated until all forms of indebtedness, and/or fiscal obligation incurred by SCFA have been paid, or adequate provision for such payment shall have been made. f. In the event the Agreement is terminated, any property acquired by SCFA from the Effective Date of this Agreement, including but not limited to money, shall be divided and distributed between the Parties in proportion to the contributions made, including contributions made as provided in Section 10 below, unless otherwise required by law. //
//
City Council Agenda,

4 SECTION 5. POWERS AND DUTIES OF SCFA
SCFA shall have the powers common to the Parties to this Agreement to:

Exercise those powers enumerated in the Act and Bond Law as the same as now exists or as may hereinafter be amended;
Do all acts necessary or convenient to the exercise of the foregoing and to accomplish the purposes of this Agreement, including but not necessarily limited to the following:
to make and execute all contracts, agreements, and documents including, without limitation, agreements with any of the Parties to this Agreement, other local governments, agencies or departments, the State of California, the United States of America, or agencies thereof, or any entity, person or corporation of any kind or nature whatever; to employ agents, servants and employees;
to acquire, hold and dispose of property, both real and personal; to acquire, construct, maintain, manage, operate and lease buildings, works and improvements;
to accept gifts;
to sue and be sued in its own name;
to apply for and receive any available federal, State and/or local grants; to employ legal counsel;
to employ consultants;
to adopt a budget;
to incur debts, liabilities and obligations;
to establish a treasury for the deposit and disbursement of funds and monies, according to the policies and procedures set forth in this Agreement; to invest any money held in the treasury that is not required for immediate necessities of SCFA, as SCFA determines is advisable, in the same manner and upon the same conditions as local agencies pursuant to Section 52601 of the California Government Code; and to issue bonds and other evidences of indebtedness for the construction of an animal shelter, and the consent of the Governing Board of each member to participate in this Joint Powers Authority shall be deemed consent for the issuance of bonds by SCFA, as required under California Government Code Sections 6500 et seq. and the Bond Law.

The listing of the above acts is not intended to indicate any priority of one act over another.

Nor is such listing intended to be inclusive, and other acts may be done in the accomplishment of City Council Agenda,

5 the purposes of this Agreement as are authorized. One or several acts may take place concurrently or in sequence.

SECTION 6. CREATION OF THE BOARD OF DIRECTORS
a. Governance of SCFA by the Board of Directors. In order to effectuate the purposes of this Agreement as set forth herein, SCFA shall be governed by a Board of Directors (hereinafter called the "Board"), and all of the powers of SCFA shall be exercised by the Board. b. Membership. The Board shall be composed of the following members from the Parties:

One (1) member of the Board of Supervisors of Riverside County; One (1) member of the City Council of the City of Canyon Lake; One (1) member of the City Council of the City of Lake Elsinore; One (1) member of the City Council of the City of Murrieta; One (1) member of the City Council of the City of Temecula; One (1) member of the City Council of the City of Wildomar; One (1) member of the City Council of the City of Menifee. c. Designation of Members. Members shall serve on the Board during the term for which they are a member of the Board of Supervisors, or a member of the City Council from which they are appointed. A member's position on the Board shall automatically terminate if the term of the elected public office of such member is terminated.
d. Reimbursement. The Board may provide for reimbursement of reasonable expenses incurred in connection with a member's service on the Board.
e. Quorum and Transaction of Business. Four (4) members of the Board shall constitute a quorum.

City Council Agenda,

6 A vote of four (4) of the members present shall be required to take action, except for adjournment of a meeting which shall require only a majority of those present. No proxy or absentee voting shall be permitted.
f. Meetings. The Board shall establish the time and place for its regular and special meetings. The dates, hour and location of regular meetings shall be fixed by formal action of the Board. The Board shall hold at least one (1) regular meeting every calendar year. Special meetings and adjourned meetings may be held as required or permitted by applicable law. g. Ralph M. Brown Act. All meetings of the Board, including, without limitation, regular, special and adjourned meetings, shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the California Government Code).
h. Rules. The Board may adopt, from time to time, such rules and regulations for the conduct of its meetings and activities as it may deem necessary. In the absence of specific rules for SCFA meetings, the rules of the Board of Supervisors shall be applicable for the conduct of meetings of SCFA.

SECTION 7. FISCAL OBLIGATIONS OF THE PARTIES
It is the intent of the Parties as members of SCFA that the following fiscal obligations shall be agreed upon for all Parties to this Agreement:
a. Debt repayment of any bonds issued by SCFA shall be paid by each Party based on the percentage of animals housed at the facility, on an annual basis. b. Administration costs of the SCFA shall be borne equally between each Party and may include, but not be limited to, stipends, legal fees, audit, costs, administrative fee, mileage reimbursement. c. Operation of animal shelter shall be paid by each Party based on the percentage of animals housed at the facility, on an annual basis.
d. Determination of the percentages for sub-sections (a) and (c) shall be made on an annual basis in January based on the usage information received for the preceding calendar year. The City Council Agenda,

7 percentages shall be designated for calculation starting July 1st of that same calendar year. No Party shall divert any animals within its custody, care or control, including those held on behalf of a Party under contracted services with an animal control or humane society provider, that are located within the SCFA's geographic boundaries (as reflected in attached Attachment A) from being housed at SCFA's animal shelter facility contemplated under this Agreement unless said facility lacks the capacity to accept the animal(s) in question or where the SCFA has granted express written consent for the animal(s) in question to be diverted to another animal shelter facility.
e. Annexations of any area by any Party shall result in that Party assuming fiscal responsibility for the area annexed. The additional annexation shall result in a re-calculation of percentages of (a) and (c).
f. Incorporation of any geographic area served by SCFA, and in the event of the new city not joining as a member in SCFA, COUNTY shall reserve the ability to contract directly with the new city for animal services.
g. Any Party withdrawing from SCFA agrees to payment of the current percentage of the following:

After the issuance of bonds, the Party agrees to payment of the party's current percentage of the amount of the outstanding bonds.

Any unpaid portion of the administrative costs of SCFA, calculated up to the effective date of termination of participation in SCFA of the Party.

Any unpaid portion of the operation costs of the animal shelter, calculated up to the effective date of termination of participation in SCFA of the Party. h. Member Cities and County shall pay invoices in advance of each quarter to the County Executive Office for subsequent payment to AFV.

SECTION 8. OFFICERS AND EMPLOYEES
Chairperson and Vice Chairperson. The Board may select a chairperson and a vice chairperson from among its members at its first meeting, and annually thereafter. The term of the Chairperson and Vice Chairperson, when selected in this manner, shall be for two (2) years.

City Council Agenda,

8 In the event that the Chairperson or Vice Chairperson so elected resigned from such office or ceases to be a member of the Board, the resulting vacancy shall be filled at the next regular meeting of the Board. In the absence or inability of the Chairperson to act, the Vice Chairperson shall act as Chairperson through the end of term. The Chairperson, or in the Chairperson's absence, the Vice Chairperson, shall preside at and conduct all meetings of the Board.

Treasurer. The Treasurer of the County of Riverside shall be and shall act as the Treasurer of SCFA. The Treasurer shall have the custody of SCFA's money and disburse SCFA funds pursuant to the accounting procedures of the County of Riverside. The Treasurer shall assume the duties described in Section 6505.5 of the California Government Code, namely: receive and receipt for all money of SCFA (with the exception of any bond proceeds which shall be deposited with the Trustee bank) and place it in the Treasury of the Treasurer to the credit of SCFA; be responsible upon an official bond as prescribed by the Board for the safekeeping and disbursement of all Agency money so held; pay, when due, out of money of SCFA so held, all sums payable, only upon warrants of the officer performing the functions of the Controller who has been designated by SCFA or the Board; verify and report in writing in conjunction with the annual audit of SCFA and to the Parties to this Agreement the amount of money held for SCFA, the amount of receipts since the last report, and the amount paid out since the last report; and perform such other duties as are set forth in this Agreement or specified by the Board.

Any and all funds of the SCFA shall not be commingled with any other funds held by the Treasurer.

Controller. The Auditor/Controller of the County of Riverside shall be the Controller of SCFA.

The Controller shall draw warrants to pay demands against SCFA when such demands have been approved by the Board or by any other person authorized to so approve such by this Agreement or by resolution of the Board. The Controller shall perform such duties as are set forth in this Agreement and such other duties as are specified by the Board.

There shall be strict accountability of all funds and reporting of all receipts and disbursements. The Controller shall establish and maintain such procedures, funds and accounts as may be required by sound accounting practices. The books and records of SCFA in the hands of the Controller shall be open to inspection at all reasonable times by representatives of the parties to this Agreement.

Program Administrator. The Executive Officer for the County of Riverside, or designee, shall be the Program Administrator for SCFA. The Program Administrator, or designee, shall direct the day-to-day operation of SCFA. The Program Administrator shall serve subject to the Board's City Council Agenda,

9 policies, rules, regulations and instructions, and shall have the powers described in this Agreement and those delegated and assigned by the Board, including, without limitation:
to appoint, remove and transfer employees of SCFA, including management level officers, subject to the conditions of employment of these individuals as employees of SCFA, except for the Treasurer, Controller and Attorney of SCFA and such others as the Board may designate; to enforce all orders, rules and regulations adopted by the Board relating to the regulation, operation, or control of funds, facilities, properties and apparatus of SCFA; to authorize expenditures whenever the Board shall have approved and authorized any work, improvement or task and shall have budgeted or appropriated the necessary money therefore; and
to have custody of and accountability for all property of SCFA except money. The Program Administrator, with the approval of the Board, shall contract with an independent certified public accountant or firm or certified public accountants to make an annual audit of the accounts and records of SCFA, and a complete written report of such audit shall be filed as public records annually, within six (6) months of the end of the fiscal year under examination, with each of the Parties to this Agreement. Such annual audit and written report shall comply with the requirements of Section 6505 of the California Government Code. The cost of the annual audit, including contracts with, or employment of such independent certified public accountants in making an audit pursuant to this Agreement shall be a charge against funds of SCFA available for such purpose.

The Board, by unanimous vote, may replace the annual audit with a special audit covering a twoyear period.

Assistant Program Administrator. The Board may appoint an Assistant Program Administrator, who shall be a person employed by any member agency of SCFA other than the County of Riverside, who is assigned to such duties for SCFA. The Assistant Program Administrator shall, with the consent of the Program Administrator, assist the Program Administrator in carrying out the direction of the day-to-day operation of SCFA. The Assistant Program Administrator shall serve subject to the Board's policies, rules, regulations and instructions, and shall have the powers described in this Agreement pertaining to the position of Program Administrator and those delegated and assigned by the Board.

Consultants. Subject to the availability of funds, the Board may employ such consultants, advisors and independent contractors as are deemed necessary and desirable in implementing and carrying out the purposes of this Agreement.

Attorney for SCFA. The offices of the Riverside County Counsel, or counsel as retained directly City Council Agenda,

10 by SCFA shall be the attorneys for SCFA. The Board may employ by contract or otherwise, specialty counsel.

SECTION 9. EXECUTIVE MANAGEMENT COMMITTEE
There shall be an Executive Management Committee established consisting of the County Executive Officer, or designee of COUNTY, and City Managers, or designees of CANYON LAKE, LAKE ELSINORE, MURRIETA, TEMECULA, WILDOMAR, MENIFEE, and any other member city who may join SCFA. The Executive Management Committee shall meet as necessary to review the operations and business of SCFA.

SECTION 10. REIMBURSEMENT
Officers and employees of the Parties (excepting members of the Board) designated in this Agreement to provide services for SCFA shall be reimbursed by SCFA for their actual costs of providing such services. In addition, additional services provided by officers and employees of the parties pursuant to contracts with SCFA shall be reimbursed as provided by the contracts. All reimbursements by SCFA shall be made after receiving an itemized billing for services rendered.

SECTION 11. FISCAL YEAR
The fiscal year of SCFA shall be the period commencing July 1 of each year and ending on and including the following June 30.

SECTION 12. CONTRIBUTIONS BY THE PARTIES
The Parties to this Agreement may provide contributions in the form of public funds and/or inkind services, equipment, furnishings, office space and other kinds of property which may be reasonably necessary for SCFA to accomplish the purposes of this Agreement.

SECTION 13. EMPLOYEES OF SCFA
Riverside County Employees. There shall be no individuals directly employed by SCFA. "Employees" for the purposes of indemnification and defense provisions herein shall mean all persons employed by Riverside County, or any Party, and assigned to duties for SCFA.

Indemnification and Defense of Employees. With respect to any civil claim or action against any Director, Officer, Employee, Board Member, Committee Member, or a person who formerly City Council Agenda,

11 occupied such position, for an injury arising out of an act or omission occurring within the scope of such person's duties, SCFA shall indemnify, hold harmless and defend such person to the full extent permitted or required under applicable sections of the California Government Code.

Nothing herein shall be construed to require SCFA to indemnify and hold harmless any Director, Officer, Employee, Board Member, Committee Member, or a person who formerly occupied such position, if SCFA has elected to conduct the defense of such person(s) pursuant to an agreement reserving SCFA's rights not to pay a judgment, compromise or settlement until it is established that the injury arose out of an act or omission occurring within the scope of his or her duties with SCFA.

Nothing herein shall be construed to require the SCFA indemnify, or to provide a defense for any Director, Officer, Employee, Board Member, Committee Member, or a person who formerly occupied such position where the individual has acted in an illegal, willful or intentionally negligent manner giving rise to the claim, or litigation.

The following definitions shall apply to SCFA:
"Directors" shall include the following: Members of the Governing Board of Directors of SCFA, Program Administrator, and the Assistant Program Administrator. "Officers" shall include all individuals who are defined in "Directors" herein, the Treasurer, Controller, and Attorney(s) for SCFA as defined herein. "Employees" shall mean all persons employed by Riverside County, or any other member agency, and assigned to duties for SCFA.
"Committee Members" shall mean all persons appointed by the Governing Board to any advisory committee or committees of SCFA, all persons appointed by the Program Administrator to any advisory committee or committees of SCFA.

SECTION 14. LIABILITIES
SCFA shall account separately for all funds collected or disbursed for each Party to this Agreement. It is the intent of the Parties, to the extent permitted by law, that the liabilities of each Party for the animal shelter services provided to that Party's members shall not become a liability of any other Party to this Agreement.

The debts, liabilities and obligations of SCFA shall be the debts, liabilities and obligations of SCFA alone, and not of the Parties to this Agreement.

SCFA shall indemnify, defend and hold harmless each Party to this Agreement from and against any and all liabilities, debts, claims, demands or costs (including but not limited to City Council Agenda,

12 attorney's fees) arising, or alleged to arise as a result of SCFA's operation or failure to operate.

SECTION 15. NOTICES
Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or upon deposit into the U.S. Mail, first class, postage prepaid to:

RIVERSIDE COUNTY
Executive Office
County Administrative Center, 4080 Lemon Street, 4th Floor Riverside, CA 92501 Attn: Deputy County Executive Officer - Finance

CITY OF CANYON LAKE
31516 Railroad Canyon Road, Canyon Lake, CA 92587
Attn: City Manager

CITY OF LAKE ELSINORE
130 South Main Street, Lake Elsinore, CA 92530
Attn: City Manager

CITY OF MURRIETA
24601 Jefferson Avenue, Murrieta, CA 92562
Attn: City Manager

CITY OF TEMECULA
41000 Main Street, Temecula, CA 92590
Attn: City Manager

CITY OF WILDOMAR
23873 Clinton Keith Road, Suite 201
Wildomar, CA 92595
Attn: City Manager

CITY OF MENIFEE
29844 Haun Road
Menifee, CA 92586
Attn: City Manager
//
//
City Council Agenda,

13 SECTION 16. OTHER AGREEMENTS NOT PROHIBITED
Other agreements by and between the Parties to this Agreement or any other entity are neither prohibited nor modified in any manner by execution of this Agreement.

SECTION 17. SEVERABILITY
If any section, clause or phrase of this Agreement or the application thereof to any Party or any other person or circumstance is for any reason held to be invalid by a court of competent jurisdiction, it shall be deemed severable and the remainder of this Agreement or the application of such provision to the other Party or other persons or circumstances shall not be affected thereby.

SECTION 18. NONASSIGNABILITY
The rights, titles and interests of any Party to this Agreement shall not be assignable or transferable without the written consent of the Board of Supervisors for Riverside County and the City Councils of any of the other Parties to this Agreement.

SECTION 19. MISCELLANEOUS
Section Headings. The section headings herein are for convenience of the Parties only, and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this Agreement.

Laws of California. This Agreement is made in the State of California, under the Constitution and laws of such State, and shall be construed and enforced in accordance with the laws of the State of California.

Construction of Language. It is the intention of the Parties hereto that if any provision of this Agreement is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid.

Cooperation. The Parties to this Agreement recognize the necessity and hereby agree to cooperate with each other in carrying out the purposes of this Agreement including cooperation in manners relating to the public, accounting, litigation, public relations and the like.

Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto.

City Council Agenda,

14 Publication Rights. Each Party to this Agreement shall have the right to duplicate, at its own expense, any and all documents and reports created or acquired, in the joint exercise of powers hereunder by the Board or by any other Party hereto pursuant to this Agreement.

Government Code Section 6509 Designation. The laws of the State of California applicable to the COUNTY, as a general law county, shall govern the SCFA in the manner of exercising its powers, subject, however, to such restrictions as are applicable to said county in the manner of exercising such powers, as required by California Government Code Section 6509. [Signature Pages to Follow]
City Council Agenda,

15 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and attested to by their proper officers thereunto duly authorized as of the date first above written.

COUNTY OF RIVERSIDE,
a political subdivision of the
State of California
By:____________________________
V. Manuel Perez, Chair
Board of Supervisors
ATTEST:

Kimberly Rector
Clerk of the Board
By:____________________________
Deputy
APPROVED AS TO FORM:

Minh C. Tran
County Counsel
By:____________________________
Amrit P. Dhillon
Deputy County Counsel
City Council Agenda,

CITY OF CANYON LAKE
By:______________________________ Date:_______________________ Mayor
ATTEST:

By:______________________________ Date:_______________________ City Clerk
Approved as to form:

By:______________________________
City Attorney
City Council Agenda,

CITY OF LAKE ELSINORE
By:______________________________ Date:_______________________ Mayor
ATTEST:

By:______________________________ Date:_______________________ Deputy
[Seal] Approved as to form:

By:______________________________
City Attorney
City Council Agenda,

CITY OF TEMECULA
By:______________________________ Date:_______________________ Mayor
ATTEST:

By:______________________________ Date:_______________________ City Clerk
Approved as to form:

By:______________________________
City Attorney
City Council Agenda,

CITY OF MURRIETA
By:______________________________ Date:_______________________ Mayor
ATTEST:

By:______________________________ Date:_______________________ City Clerk
[Seal] Approved as to form:

By:______________________________
City Attorney
City Council Agenda,

CITY OF WILDOMAR

By:______________________________ Date:_______________________

Mayor

ATTEST:

By:______________________________ Date:_______________________ Deputy
[Seal] Approved as to form:

By:______________________________
City Attorney
City Council Agenda,

CITY OF MENIFEE

By:______________________________ Date:_______________________ Mayor
ATTEST:

By:______________________________ Date:_______________________

Deputy
[Seal] Approved as to form:

By:______________________________
City Attorney
City Council Agenda,

ATTACHMENT A

MAP OF SCFA SERVICE AREA
(BEHIND THIS PAGE)
City Council Agenda,

City Council Agenda,

ITEM NO. 6

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Sheryl Garcia, Administrative Services Director/City Clerk DATE: 11/12/2025
SUBJECT: Second Reading and Adoption of Ordinance No. 263 - An Ordinance of the City Council of the City of Canyon Lake, California, Repealing Sections 3.26.090 (Water Users' Tax) and

3.26.100 (Sewer Users' Tax) of the Canyon Lake Municipal Code Recommendation:

Conduct second reading and adopt Ordinance No. 263 - An Ordinance of the City Council of the City of Canyon Lake, California, Repealing Sections 3.26.090 (Water Users' Tax) and 3.26.100 (Sewer Users' Tax) of the Canyon Lake Municipal Code.

Background/Analysis:

At the September 23, 2025, City Council meeting, the City Council approved the first reading of Ordinance No. 263, Repealing Sections 3.26.090 (Water Users' Tax) and 3.26.100 (Sewer Users' Tax) of the Canyon Lake Municipal Code.

In Beck v. City of Canyon Lake (2025) (D083322), the California Court of Appeal, Fourth District, held that the water and sewer UUT was unconstitutional under Article XIII D of the California Constitution (Proposition 218). The Court found the tax was imposed "as an incident of property ownership," and because revenues were used for general governmental services beyond the cost of water and sewer, the UUT violated several provisions of Article XIII D, section 6. The Court further emphasized that voter approval under Article XIII C does not override Article XIII D's independent restrictions.

Although voters twice approved the tax, the Court held it unconstitutional. The provisions remain codified in the Municipal Code. Adoption of the proposed ordinance is necessary to repeal Sections 3.26.090 and 3.26.100, thereby removing provisions the Court has declared unconstitutional and ensuring the Municipal Code is consistent with the law.

Fiscal Impact Yes/No:No
Additional Fiscal Information:

Adoption of the ordinance will ratify the repeal of the water and sewer users' taxes, and the revenue loss has already been accounted for in the City's budget.

Attachments:
1 - Ordinance
City Council Agenda,

ORDINANCE NO. 263

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CANYON LAKE, CALIFORNIA, REPEALING SECTIONS 3.26.090 (WATER USERS’ TAX) AND 3.26.100 (SEWER USERS’ TAX) OF THE CANYON LAKE MUNICIPAL CODE
WHEREAS, Canyon  Lake  voters  approved  a  utility  users’  tax  (“UUT”)  on  water  and  sewer services in 2014 (Measure DD) and extended the UUT in 2018 (Measure S), codified in Canyon Lake Municipal Code Sections 3.26.090 (water users’ tax) and 3.26.100 (sewer users’ tax); and WHEREAS, in Beck v. City of Canyon Lake (D083322), the California Court of Appeal, Fourth District, held that the City’s water and sewer UUT was unconstitutional under Article XIII D of the California  Constitution  (Proposition  218),  finding  that  the  tax  was  imposed  “as  an  incident  of property  ownership”  and  used for  general  governmental  purposes  beyond the  cost  of  providing water and sewer services; and
WHEREAS, the California Superior Court for Riverside County in the underlying case on remand issued a peremptory writ of mandate directing the City to rescind the provisions of the Municipal Code imposing those taxes; and
WHEREAS, the City Council desires to repeal Canyon Lake Municipal Code Sections 3.26.090 (water users’ tax) and 3.26.100 (sewer users’ tax) to comply with the Court’s ruling and writ of mandate.

THE CITY COUNCIL OF THE CITY OF CANYON LAKE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

Section 1. Incorporation. The above  recitals are all true and correct and are incorporated herein by this reference.

Section 2. CEQA.  The  adoption  of  this  Ordinance  is  not  subject  to  the  California Environmental Quality Act because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.

Section 3. Municipal Code Amendment. Sections 3.26.090 (water users’ tax) and 3.26.100 (sewer users’ tax) of the Canyon Lake Municipal Code are hereby repealed in their entirety.

3.26.090 Water users' tax.
(a)   There is imposed a tax upon every person using water in the city which is transported and delivered through a pipeline distribution system. The tax imposed by this section shall be at the rate of 3.95% of the charges made for such water.
(b)   As used in this section, the term “charges” shall apply to all services, components and items that are:  (1) necessary  for or common to the  receipt, use or enjoyment of water  service; or  (2) currently are, or historically have been, included in a single or bundled rate for water service by a City Council Agenda,

local distribution company to a class of retail customers. The term “charges” shall include, but is not limited to, the following charges:
(1)   Water commodity charges (potable and non-potable); (2)   Distribution or transmission charges;
(3)   Metering charges;
(4)   Customer charges, late charges, service establishment or reestablishment charges, bond financing payments, franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees and surcharges which are necessary for or common to the receipt, use or enjoyment of water service; and
(5)   Charges,  fees,  or  surcharges  for water  services  or  programs, which are mandated  by a water district or a State or Federal agency, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing. (6)   Recycled water charges.
(c)   As used in this section, the term “charges” shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the water services.
(d)   The Tax Administrator, from time to time, may survey the water service suppliers in the City to identify the various unbundled billing components of water retail service that they commonly provide to residential and commercial/industrial customers in the City, and the charges therefor, including  those  items  that  are  mandated  by  a  water  district  or  a  State  or  Federal  agency  as  a condition  of  providing  such  water  service.  The  Tax  Administrator,  thereafter,  may  issue  and disseminate to such water service suppliers an administrative ruling identifying those components and items which are: (1) necessary for or common to the receipt, use or enjoyment of water service; or (2) currently are, or historically have been, included in a single or bundled rate for water service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of subsection (a) of this section. (e)   There shall be excluded from the base on which the tax imposed in this section is computed charges  made  for  wholesale  water  which  is  to  be  resold  and  delivered  through  a  pipeline distribution system; and charges made by a public water district for water which it uses for the conduct of its business.
(f)   The tax on water service imposed by this section shall be collected from the service user by the water service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator, on or before the twentieth day of the following month; or, at the option of the person required to collect and/or remit the tax,  such  person  shall  remit  an  estimated  amount  of tax, measured  by the tax  billed in the City Council Agenda,

previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the twentieth day of the following month. (Ord. 177, passed 11-6-2018)

3.26.100 Sewer users' tax.
(a)   There is hereby imposed a tax upon every person in the City using sewer services within the City. The tax imposed by this section shall be at the rate of 3.95% of the charges made for such sewer service. The tax shall be paid by the person using such sewer service. (b)   As used in this section, the term “charges” shall apply to all services, components and items that are:  (1) necessary  for or common to the  receipt, use or enjoyment of sewer service; or  (2) currently are, or historically have been, included in a single or bundled rate for sewer service to retail customers. The term “charges” shall include, but is not limited to, the following charges:
(1)   Customer charges, late charges, service establishment or reestablishment charges, annual and monthly charges, bond financing payments and other charges, fees and surcharges which are necessary for or common to the receipt, use or enjoyment of sewer service; and (2)   Charges, fees, or surcharges for sewer services or programs, which are mandated by the City,  a  State  or  Federal  agency,  whether  or  not  such  charges,  fees,  or  surcharges  appear  on  a bundled or line item basis on the customer billing.
(c)   The tax on sewer service imposed by this section shall be collected from the service user by the sewer service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator, on or before the twentieth day of the following month; or, at the option of the person required to collect and/or remit the tax,  such  person  shall  remit  an  estimated  amount  of tax, measured  by the tax  billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the twentieth day of the following month.

Section 4. Clerical Errors. The City Council directs the City Clerk to correct any clerical errors  found  in  this  Ordinance  including,  but  not  limited  to,  typographical  errors,  irregular numbering and incorrect section references.

Section 5. Severability. Should any section, subsection, clause, or provision of this Ordinance for any reason be held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the  validity  or constitutionality  of the  remaining  portions  of this Ordinance; it  being hereby expressly declared that this Ordinance, and each section, subsection, sentence, clause, and phrase hereof would have been prepared, proposed, approved, and ratified irrespective of the fact that  any  one  or  more  sections,  subsections,  sentences,  clauses,  or  phrases  be  declared invalid, unenforceable, or unconstitutional.

Section 6. Effective Date. In accordance with California Government Code section 36937, this Ordinance shall take effect and be in force thirty (30) days from passage and adoption.

City Council Agenda,

Section 7. Publication. The Mayor shall sign this Ordinance and the City Clerk shall certify as to the adoption and shall cause the ordinance or a summary thereof to be published in accordance with state law.

PASSED APPROVED AND ADOPTED this 12th day of November 2025. ___________________________________
Mark Terry, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ _____________________________ Sheryl Garcia, MMC, CPM Steven Graham, City Attorney
City Clerk
City Council Agenda,

ITEM NO. 7

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Sheryl Garcia, Administrative Services Director/City Clerk DATE: 11/12/2025
SUBJECT: Second Reading and Adoption of Ordinance No. 265 - An Ordinance of the City Council of the City of Canyon Lake, California, Amending Ordinance No. 260 to Appoint the Chief of Police as the Administrative Head of the Police Department Recommendation:

Conduct second reading and adopt Ordinance No. 265 - An Ordinance of the City Council of the City of Canyon Lake, California, Amending Ordinance No. 260 to Appoint the Chief of Police as the Administrative Head of the Police Department.

Background/Analysis:

At the October 2, 2025, City Council meeting, the City Council approved the first reading of Ordinance No. 265, amending Ordinance No. 260 to appoint the Chief Police as the administrative head of the Canyon Lake Police Department and adopted Urgency Ordinance No. 264, which is identical to proposed Ordinance No. 265.

On April 9, 2025, the City Council adopted Resolution No. 2025-15, expressing the City's intent to establish a municipal police department and authorizing implementation steps. On September 23, 2025, the City Council adopted Ordinance No. 260, which formally established the Canyon Lake Police Department and declared the City's intent to participate in the California Commission on Peace Officer Standards and Training (POST) Program.

As the City had not yet appointed a Chief of Police, Ordinance No. 260 provided that the Department would operate under the administrative direction of the City Manager. Under Penal Code Sections 832.3 and 832.4 and Government Code Section 38630, now that the City has appointed a Chief of Police who meets POST training and certification requirements, it is appropriate to amend Ordinance No. 260 to place the Canyon Lake Police Department under the control of a Chief of Police. This approach is consistent with state statutory requirements and general guidance from POST, ensuring the proper organizational structure is in place as the City prepares for the Department's operational start on or about August 31, 2026.

Fiscal Impact Yes/No:No
Attachments:
1 - Ordinance
City Council Agenda,

ORDINANCE NO. 265

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CANYON LAKE, CALIFORNIA, AMENDING ORDINANCE NO. 260 TO APPOINT THE CHIEF OF

POLICE AS THE ADMINISTRATIVE HEAD OF THE POLICE DEPARTMENT WHEREAS, on September 23, 2025, the City Council adopted Ordinance No. 260 formally establishing the Canyon Lake Police Department and declaring the City’s intent to participate in the California Commission on Peace Officer Standards and Training (POST) Program; and WHEREAS, as no Chief of Police had yet been appointed, Ordinance No. 260 placed the Police Department under the administrative direction of the City Manager; and WHEREAS, now that a Chief of Police has been appointed, and consistent with the requirements of Penal Code Sections 832.3 and 832.4 and Government Code Section 38630, the City Council desires to amend Ordinance No. 260 to appoint the Chief of Police as the administrative head of the Canyon Lake Police Department.

THE CITY COUNCIL OF THE CITY OF CANYON LAKE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

Section 1. Incorporation. The above recitals are all true and correct and are incorporated herein by this reference.

Section 2. CEQA. The adoption of this Ordinance is not subject to the California Environmental Quality Act because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.

Section 3. Amendment. Section 3 of Ordinance No. 260 is hereby amended to read in full as follows:

Section 3. Establishment of the Canyon Lake Police Department.

The City Council hereby formally establishes the Canyon Lake Police Department as a department of the municipal government of the City of Canyon Lake. The department shall be responsible for providing municipal police services within the jurisdictional boundaries of the City, under the control of the Chief of Police. The Canyon Lake Police Department is expected to begin operations on or about August 31, 2026, in accordance with the implementation timeline previously authorized by the City Council in Resolution No. 2025-15.

Section 4. Continuity. Except as expressly amended herein, all other provisions of Ordinance No. 260 shall remain in full force and effect.

City Council Agenda,

Section 5. Clerical Errors. The City Council directs the City Clerk to correct any clerical errors found in this Ordinance including, but not limited to, typographical errors, irregular numbering and incorrect section references.

Section 6. Severability. Should any section, subsection, clause, or provision of this Ordinance for any reason be held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this Ordinance; it being hereby expressly declared that this Ordinance, and each section, subsection, sentence, clause, and phrase hereof would have been prepared, proposed, approved, and ratified irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid, unenforceable, or unconstitutional.

Section 7. Effective Date. In accordance with California Government Code section 36937, this Ordinance shall take effect and be in force thirty (30) days from passage and adoption.

Section 8. Publication. The Mayor shall sign this Ordinance and the City Clerk shall certify as to the adoption and shall cause the ordinance or a summary thereof to be published in accordance with state law.

PASSED APPROVED AND ADOPTED this 12th day of November, 2025. ___________________________________
Mark Terry, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ___________________________________ Sheryl Garcia, MMC, CPM Steven Graham, City Attorney
City Clerk
City Council Agenda,

ITEM NO. 8

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Arron Brown, City Manager
DATE: 11/12/2025
SUBJECT: Receive and File the Quarterly Investment Report for the Quarter Ended September 30, 2025
Recommendation:

Receive and file the Quarterly Investment Report for the quarter ended September 30, 2025, in compliance with the City's Investment Policy.

Background/Analysis:

The attached Quarterly Investment Report presents the City's cash and investments for the quarter that ended September 30, 2025. This report is in compliance with the California Government Code Section 53646 regarding the reporting of detailed information on all securities, investments, and monies of the City, as well as the reporting of the market value of the investments held. All the investments contained within the portfolio are in full compliance with the City's Investment Policy and Government Code Section 53601 as to the types of investments allowed. It is recommended that the City Council receive and file the attached Quarterly Investment Report.

The City maintains a portfolio of investments in order to earn interest in cash balances that are not currently required to fund operations. California Government Code Sections 53601 and 53646 establish the types of investments allowed, the governing restrictions on these investments, the third-party custodian arrangement for certain investments, and the reporting practices related to the portfolios of local agencies. In keeping with best practices, the City has implemented an Investment Policy, which was last reviewed by the City Council on September 13, 2023. The policy is in full compliance with the requirements of both of the above-mentioned Code Sections.

The attached Quarterly Investment Report presents the City's cash and investments for the quarter that ended September 30, 2024. The report complies with California Government Code Section 53646 regarding the reporting of detailed information on all securities, investments, and monies of the City, as well as the reporting of the market value of the investments held. All the investments contained within the portfolio are in full compliance with the City's Investment Policy and Government Code Section 53601 as to the types of investments allowed. As stated in the attached report, there is more than adequate liquidity within the portfolio for the City to meet its budgeted expenditures over the next six months.

The City's investment policy has set the primary goals of the portfolio management as Safety and Liquidity followed by Yield. The City's cash flow requirements are evaluated on an ongoing basis, with short-term needs accommodated through the City's pooled investment funds with Local Agency Investment Fund (LAIF) and Citizens Trust Allspring Funds Trust Government Money Market Funds.

LAIF is a pool of public funds managed by the State Treasurer of California, providing 24-hour liquidity while yielding a rate of return approximately equivalent to a one-year treasury bill. With the combined City Council Agenda,

use of a conservative approach to evaluating cash flow needs and LAIF and the Allspring Funds Trust Government Money Market liquidity, the City will not have to liquidate securities at current market rates that are intended to be held for longer-term investment.

The table below shows the portfolio average yield to maturity for the quarter ending September 30, 2025, compared to the quarter ending September 30, 2024.

Fiscal Impact Yes/No:No
Attachments:
1 - Schedule of Investments
2 - Investment Policy
3 - Citizens Bank Statement
4 - Multi Bank Securities Statement
City Council Agenda,

Book Value (Fair Value)
Par Price @ Market Purchase Maturity
Institution Value Cost Value Yield Date Date

ACTIVE DEPOSITS
Money Market Accounts:

Citizens Business Bank - Money Market 313,717.82 $ 313,717.82 $ 313,717.82 $ 0.100% N/A N/A Total Money Market 313,717.82 $ 313,717.82 $ 313,717.82 $ Pooled Investment Accounts:

Local Agency Investment Fund 11,532.16 $ 11,532.16 $ 11,532.16 $ 4.340% N/A N/A Total Pooled Investment 11,532.16 $ 11,532.16 $ 11,532.16 $ Multi-Bank Securities
Cash Balance 6,637.72 $ 6,637.72 $ 6,637.72 $ 0.000% N/A N/A United States Treasruy Bill 2,150,000.00 2,109,872.40 2,146,366.50 4.750% 04/17/25 10/16/25 Total MBS 2,156,637.72 $ 2,116,510.12 $ 2,153,004.22 $
Citizens Trust:

Allspring Funds TR Government MMKT 2,433,596.67 $ 2,433,596.67 $ 2,433,596.67 $ 4.500% N/A N/A Fannie Mae 200,000.00 200,000.00 199,624.00 0.580% 10/20/20 10/20/25 Fannie Mae 100,000.00 100,000.00 99,465.00 0.600% 11/25/22 11/25/25 Federal Home Loan Bank 150,000.00 150,000.00 148,066.50 0.650% 02/24/21 02/24/26 Federal Home Loan Bank 150,000.00 150,000.00 146,503.50 1.050% 08/26/21 08/26/26 Federal Farm Credit Bank 100,000.00 99,925.00 97,457.00 0.900% 08/26/21 08/26/26 Federal Home Loan Bank 500,000.00 499,000.00 499,620.00 4.280% 12/11/24 12/11/26 Federal Home Loan Bank 150,000.00 150,000.00 148,141.50 0.780% 02/26/21 02/26/26 Federal Home Loan Bank 100,000.00 100,000.00 98,281.00 1.000% 08/12/21 05/12/26 Apple Inc. 125,000.00 121,254.58 124,291.25 3.350% 02/23/23 02/09/27 Western Alliance Bank CD 245,000.00 245,000.00 245,565.95 5.200% 06/21/24 12/19/25 Valley National Bank CD 245,000.00 245,000.00 245,560.27 5.150% 06/20/24 12/22/25 Total Citizens Trust 4,498,596.67 $ 4,493,776.25 $ 4,486,172.64 $ ACTIVE DEPOSITS TOTAL $ 6,935,536.35 6,980,484.37 $ 6,964,426.84 $ Effective Interest Rate 3.87% Unrealized Gains (Losses) $ 28,890.49

INACTIVE DEPOSITS
Checking Account:

Citizens Business Bank - Checking 363,799.00 $ 363,799.00 $ 0.000% N/A N/A California Bank & Trust - Checking 7,982.82 7,982.82 0.000% N/A N/A Investment in Real Estate 2,222,501.37 2,222,501.37 0.000% N/A N/A Total 2,594,283.19 $ 2,594,283.19 $ 0.000%
INACTIVE DEPOSITS TOTAL $ 2,594,283.19 2,594,283.19 $
GRAND TOTAL CASH $ 9,529,819.54 $ 9,558,710.03
City of Canyon Lake
Schedule of Investments
as of September 30, 2025
Per Government Code requirements, the Investment Report is in compliance with the City of Canyon Lake's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. ________________________________
Terry Shea
9/30/2025
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INVESTMENT POLICY
The City of Canyon Lake has adopted the following policy for the investment of City funds.

I. The Legal Authority
The Authority governing investments for the City of Canyon Lake is set forth in the California Government Code, sections 53601 et. Seq. The City Treasurer is granted authority to make investments on behalf of the City.

Government Code Section 53607 states “.....the authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for such transactions until such time as the delegation of authority is revoked, and shall make a monthly report of such transaction to the legislative body.”
Government Code Section 53649 states “...the treasurer is responsible for the safekeeping of money in his custody and shall enter into any contract with a depository relating to any inactive deposits which in his judgment is to the public advantage.” The City Treasurer will enter into purchases subject to this policy and at the direction of City Council.

In addition, Government Code Section 53607 provides the authority for the legislative body of the local agency to invest the funds of the local agency or to delegate the full responsibility to the treasurer of the local agency.

II. Investment Objectives
A. The purpose of this policy is to provide guidelines for the investment of the City’s funds based upon State law and prudent money management. This policy is designed according to the specific needs of the City of Canyon Lake. The ultimate goal is to enhance the economic status of the City while ensuring the safety of funds.

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C. The investment of the funds of the City of Canyon Lake shall be guided by the goals of safety, liquidity, diversification and return on investments in that order of priority.

Safety: Safety of principal is the foremost objective of the City of Canyon Lake. Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker-dealer default, or erosion of market value. The City shall seek to preserve principal by mitigating the two types of risk; credit risk and market risk.

Credit Risk - Credit Risk; defined as the risk of loss due to failure of the issuer of a security, shall be mitigated by investing only with issuers whose financial strength and reputation can be verified to be the highest as rated by nationally known rating agencies and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow.

Market Risk - Market risk, the risk of the market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by (a) structuring the portfolio so that securities mature earlier than or concurrent with the timing of major cash outflows, thus eliminating the need to sell securities prior to their maturity; (b) prohibiting the use of leverage or margin accounts; (c) prohibiting the taking of short positions, that is, selling securities which the City does not own; (d) prohibiting the use of reverse repurchase agreements and repurchase agreements; and (e) prohibiting the use of “inverse floaters”. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured loses are inevitable, and must be considered within the context of the overall investment return.

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.

Return on Investments: 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.

III. Deposits/Authorized Investments
A. Deposits
Money must be deposited in State or national banks, State or Federal savings associations, or State or Federal Credit unions within the State. It may be in inactive City Council Agenda,

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The bank or savings and loan must secure the active and inactive deposits with eligible securities having a market value of 110% of the total amount of the deposits. State law also allows as an eligible security, first trust deeds having a value of 150% of the total amount of the deposits. A third class of collateral is letter of credit drawn on the Federal Home Loan Bank (FHLB).

B. Authorized Investments
General Guidelines that the City should follow in managing its investments are as follows:
• No investment will be purchased which matures more than five years from the date of purchase without the prior approval of the City Council. • Maturities of individual investments shall be diversified, attempting to match, where possible, cyclical cash flow requirements.
• The use of callable securities is permitted.

To reduce overall portfolio risk while attempting to attain market value rates of return consistent with the primary objectives of safety and availability of funds, investments shall be diversified cross types of investments, maturities of those investments, and institutions in which those investments are made. Generally, the portfolio is to be invested in Federal Agency securities, with a modest addition of high-grade Medium Term Corporate Notes, Certificates of Deposit (CD’s), U.S. Treasuries and Commercial Paper.

The City specifically prohibits investments in Bonds issued by other local agencies, Reverse Repurchase Agreements and Derivatives (Interest rate floaters, range notes, interest-only strips)
Permitted Investments Per City Policy:

Investments shall be made only in those instruments specifically authorized by California State laws (section 53600-53609), and to no greater an extent than those authorized by those laws.

The City’s specific permitted investment guidelines are listed below. It should be noted that the City’s permitted investments are moderately more restrictive than the State guidelines. Attachment A provides a summary of the State of California Statues Applicable to Municipal Investments and a Glossary.

PERMITTED INSTRUMENTS CITY GUIDELINES
State or County Investment
Pool (LAIF)
LAIF $75,000,000 / 50% of portfolio
maximum
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Deposits
5 Years / No limit
U.S. Treasuries 5 Years / No limit
Government
Sponsored Enterprises
*(US Agencies)
5 Years / No limit
Bankers Acceptances 180 Days / 10% max / 5% per issuer
Commercial Paper 270 Days / 10% max / 10% per issuer
combined
Medium-Term Notes 5 Years / 15% max / 5% per issuer
combined / 10% max by sector
classification
Negotiable Certificates of Deposit 5 Years / 30% max / lesser of 5% or $1 million per issuer
Repurchase Agreements 1 Year / 10% max
Only with Master Repurchase
Agreement / Daily mark to market
valuation
Money Market Mutual Funds 10% max / $500 million assets / 5% per issuer
Reverse Repurchase Agreements Not Allowed
California State Obligations Not Allowed
California Local Obligations Not Allowed
Mutual Funds Not Allowed
Mortgage Pass Through
Securities
Not Allowed
IV. Investment Program Controls
A. Separation of Reconciliation. A separation of responsibilities of reconciling bank statements and conducting investment transactions provides an internal control of checks and balances. Only individuals authorized by the City Manager and City Clerk may conduct investment transactions. Consequently, individuals responsible for reconciling bank statements may not conduct investment transactions.

B. Third Party Safekeeping Agreements. Contractual agreement between the City and third-party custodian public investment agencies (LAIF) is used to secure City invested funds.

C. Quarterly Treasurer’s Report. The City Treasurer shall submit a quarterly investment report to the City Council. This report shall include types of investment, investment ratings, institutions involved, dates of purchases, dates of maturity, amount of deposits or cost of the security, current market value of securities, interest rates, investment fund balances and a statement that there are sufficient funds to meet the City’s cash obligations.

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ATTACHMENT A:

Summary of State of California Statutes Applicable to Municipal Investment

The following investments are authorized by California State Code, Title 5, Division 2, Sections53600 et seq. and 16429.1.

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GLOSSARY
ACTIVE DEPOSITS: Demand or checking accounts, which receive revenues and pay disbursements.

AGENCIES: Federal agency securities.

ASKED: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at its maturity. An acceptance is a highgrade negotiable instrument.

Acceptances are purchased in various denominations for 30, 60, or 90 days, but no longer than 180 days. The interest is calculated on a 360-day discount basis similar to treasury bills. Local agencies may not invest more than 40% of their surplus money in banker’s acceptance.

BASIS POINT: A basis point equals one one-hundredth of 1% (.01%).

BID: The price offered for securities.

BOOK-ENTRY SECURITIES: All U.S. Treasury and Federal Agencies are maintained on computerized records at the Federal Reserve now known as "wireable" securities.

BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides. In the money market, brokers are active in markets in which
banks buy and sell money and in inter-dealer markets.

CERTIFICATES OF DEPOSIT (CD): Time deposits of a bank or savings and loan.

They are purchased in various denominations with maturities ranging from 30 to 360 days. The interest is calculated on a 360-day, actual day month basis and is payable monthly.

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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): The official annual report for the City of Canyon Lake. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related, legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COMMERCIAL PAPER: Short-term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Local agencies are permitted by State law to invest in commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical ratings as provided by Moody's Investor's Service, Inc., or Standard and Poor's Corporation. Purchases of eligible commercial paper may not exceed 270 days maturity nor exceed 30% of the local agency's surplus funds.

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 evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free).

Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipts is delivery of securities with an exchange of a signed receipt for the securities.

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CL 10-11
https://cityofcanyonlake.sharepoint.com/sites/SharePoint/Shared Documents/120 CITY COUNCIL/120-110 AGENDA PACKETS/2023 City Council Agendas/2023-09-13 Regular City Council Meeting/Final/9 Investment Policy Attach 2 Updated Policy.doc DEBENTURE: A bond secured only by the general credit of the issuer.

DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value (e.g., U.S.

Treasury bills).

DIVERSIFICATION: Dividing investment funds among a variety of securities and issuers offering independent returns.

DERIVATIVE: An asset that derives its value from another asset. For example, a call option on the stock of Coca-Cola is a derivative security that obtains value from the shares of Coca-Cola that can be purchased with the call option. Call options, put options, convertible bonds, futures contracts, and convertible preferred stock are examples of derivatives. A derivative can be either a risky or low-risk investment, depending upon the type of derivative and how it is used.

FEDERAL CREDIT AGENCIES: Guaranteed directly or indirectly by the United States Government. All agency obligations qualify as legal investments and are acceptable as security for public deposits. They usually provide higher yields than regular Treasury issues with all of the same advantages. Examples include Federal Home Loan Bank, Federal Farm Credit Bank, FNMA (Fannie Mae) and Federal Home Loan Mortgage Corp. (Freddie Mac).

FEDERAL FUNDS: Non-interest-bearing deposits held by member banks at the Federal Reserve. Also used to denote "immediately available" funds in the clearing sense. "Fed Funds" also used to refer to these funds.

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 OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents.

The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

City Council Agenda,

CL 10-11
https://cityofcanyonlake.sharepoint.com/sites/SharePoint/Shared Documents/120 CITY COUNCIL/120-110 AGENDA PACKETS/2023 City Council Agendas/2023-09-13 Regular City Council Meeting/Final/9 Investment Policy Attach 2 Updated Policy.doc 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.

INTEREST-BEARING ACTIVE DEPOSITS: Money-market accounts at a financial institution, (e.g., bank, savings and loan, credit union). These accounts are demand accounts (i.e., checking accounts) with restricted transaction activity.

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.

LAIF (Local Agency Investment Fund): A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period, and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $75,000,000 for any agency. The City is restricted to a maximum of fifteen transactions per month. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-quarter of one percent of the earnings. The interest rates are fairly high because of pooling the State's surplus cash with the surplus cash deposited. This creates a multi-billion-dollar money pool and allows diversified investments.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

City Council Agenda,

CL 10-11
https://cityofcanyonlake.sharepoint.com/sites/SharePoint/Shared Documents/120 CITY COUNCIL/120-110 AGENDA PACKETS/2023 City Council Agendas/2023-09-13 Regular City Council Meeting/Final/9 Investment Policy Attach 2 Updated Policy.doc MEDIUM-TERM CORPORATE NOTES: Unsecured promissory notes issued by a corporation organized and operating in the United States. These are negotiable instruments and are traded in the secondary market. Medium-term corporate notes can be defined as extended-maturity commercial paper. Local agencies are restricted by the Government Code to investments in corporations rated in the top three note categories by a nationally recognized rating service. Further restrictions are a maximum term of five years to maturity and total investments in mediumterm corporate notes may not exceed 30% of the local agency's surplus funds.

MONEY MARKET FUNDS: Open-ended mutual fund that invests in highly liquid and safe securities (bills, commercial paper, bankers' acceptances, CD’s, etc.) and pays money market rates of interest. The fund’s net asset value remains a constant $1 a share.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.

PASSBOOK SAVINGS ACCOUNTS: Similar to an inactive deposit except that the period of time is not fixed. The interest rate is much lower than for a certificate of deposit, but the savings account is more flexible. Funds can be deposited and withdrawn according to daily needs.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight.

Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

PRIME RATE: The rate at which banks lend to their best or "prime" customers.

Also known as the "reference rate."
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one which would be brought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

City Council Agenda,

CL 10-11
https://cityofcanyonlake.sharepoint.com/sites/SharePoint/Shared Documents/120 CITY COUNCIL/120-110 AGENDA PACKETS/2023 City Council Agendas/2023-09-13 Regular City Council Meeting/Final/9 Investment Policy Attach 2 Updated Policy.doc RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

REPURCHASE AGREEMENTS (RP OR REPO): A repo or reverse-repo is a shortterm investment transaction. Banks buy temporarily idle funds from a customer by selling U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date. Repurchase agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal funds and the maturity of the repo. Some banks will execute repurchase agreements for a minimum of $100,000 to $500,000, but most banks have a minimum of $1,000,000.

A reverse-repo is exactly what the name implies.

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 for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds. This date may be the same as the trade date or later.

TRADE DATE: The date on which a transaction is initiated or entered into by the buyer and seller.

TREASURY BILLS: Issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest figured on 1 360-day basis, actual number of days. They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a highly liquid security.

City Council Agenda,

CL 10-11
https://cityofcanyonlake.sharepoint.com/sites/SharePoint/Shared Documents/120 CITY COUNCIL/120-110 AGENDA PACKETS/2023 City Council Agendas/2023-09-13 Regular City Council Meeting/Final/9 Investment Policy Attach 2 Updated Policy.doc TREASURY NOTES: Initially issued with two- to ten-year maturities. They are actively traded in a large secondary market and are very liquid. The Treasury may issue note issues with a minimum of $1,000; however, the average minimum is $5,000.

TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than ten years.

UNIFORM NET CAPITAL RULE (SEC RULE 15C3-1): Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates.

Liquid capital includes cash and assets easily converted into cash.

WHEN-ISSUED TRADES: Typically, there is a lag between the time a new bond is announced and sold, and the time when it is actually issued. During this interval, the security trades "when, as, and if issued."
YIELD: The rate of annual income returns 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.

YIELD TO MATURITY: The rate of return yielded by a debt security held to maturity when both interest payments and the investor’s capital gain or loss on the security are taken into account.

City Council Agenda,

City Council Agenda,

Account Summary Statement Page 2
Account Number:

September 01, 2025 To September 30, 2025
Performance Summary - Total Returns
Since
1 3 1 2 3 Inception
Market Value Month Months Year Years Years 03/01/2010
Total Portfolio 4,520,964 0.37 0.99 4.54 5.45 4.77 1.38 Return On Indexes
Gov Bench 2 0.24 1.14 3.82 5.59 4.46 1.56
Return Comparison
0 1M 3M 1Y 2Y 3Y SI
Total Portfolio Weighted Index
PAST RESULTS ARE NOT INDICATIVE OF FUTURE INVESTMENT RESULTS. FUND DATA IS ON TRADE DATE BASIS. PERFORMANCE RESULTS ARE GROSS OF MANAGEMENT FEES. RETURNS FOR PERIODS LONGER THAN ONE YEAR ARE ANNUALIZED. MARKET VALUE DOES NOT INCLUDE ACCRUED INCOME.

City Council Agenda,

Account Summary Statement Page 3
Account Number:

September 01, 2025 To September 30, 2025
Portfolio Statement
Quantity Description Market Value Cost Basis
Fixed Income
037833CJ7
125 ,000 .000 APPLE INC DTD 02/09/2017 3.35% 124 ,291 .25 121, 254. 58 02/09/2027-2026
3130AL5X8
150 ,000 .000 FEDERAL HOME LOAN BANKS CONS DTD 148 ,066 .50 150, 000. 00 02/24/2021 .65% 02/24/2026
3130ALEK6
150 ,000 .000 FEDERAL HOME LOAN BANKS CONS DTD 148 ,141 .50 150, 000. 00 02/26/2021 .78% 02/26/2026
3130ANCF5
100 ,000 .000 FEDERAL HOME LOAN BANKS CONS DTD 98 ,281 .00 100, 000. 00 08/12/2021 1% 05/12/2026
3130ANJT8
100 ,000 .000 FEDERAL HOME LOAN BANKS CONS DTD 97 ,457 .00 99, 925. 00 08/26/2021 .9% 08/26/2026
3130ANND8
150 ,000 .000 FEDERAL HOME LOAN BANKS CONS DTD 146 ,503 .50 150, 000. 00 08/26/2021 1.05% 08/26/2026-2022
3130B43J8
500 ,000 .000 FEDERAL HOME LOAN BANKS CONS BD 499 ,620 .00 499, 000. 00 DTD 12/11/2024 4.28%
12/11/2026-2025
3135G06A6
200 ,000 .000 FEDERAL NATIONAL MORTGAGE ASSN 199 ,624 .00 200, 000. 00 DTD 10/20/2020 .58% 10/20/2025
3135GA3W9
100 ,000 .000 FEDERAL NATL MTG ASSN DTD 99 ,465 .00 100, 000. 00 11/25/2020 .6% 11/25/2025
919853MH1
245 ,000 .000 VALLEY NATL BK PASSAIC N J DTD 245 ,560 .27 245, 000. 00 06/20/2024 5.15% 12/22/2025
95763PTR2
245 ,000 .000 WESTERN ALLIANCE BK PHOENIX DTD 245 ,565 .95 245, 000. 00 06/21/2024 5.2% 12/19/2025
Total Fixed Income 2 ,052 ,575 .97 2, 060, 179. 58
Cash And Cash Equivalents
94975P405
2, 433 ,596 .670 ALLSPRING FUNDS TR GOVT MMKT I 2 ,433 ,596 .67 2, 433, 596. 67 Total Cash And Cash Equivalents 2 ,433 ,596 .67 2, 433, 596. 67 Miscellaneous
CBB000AB6
1 .000 INVESTMENT MANAGEMENT AGREEMENT 0 .00 0. 00
CITY OF CANYON LAKE A/C#
1035003119
Total Miscellaneous 0 .00 0. 00
Grand Total Assets 4 ,486 ,172 .64 4, 493, 776. 25
City Council Agenda,

Account Summary Statement Page 4
Account Number:

September 01, 2025 To September 30, 2025
Account Activity Summary
Cost Basis Market Value
Total Cash Excluding Cash Including Cash
Balances Beginning Of Period 0 .00 4, 984, 608. 96 5 ,004 ,650 .55 Prior Accruals 31 ,500 .19-
Unrealized Depreciation This Period 486 ,977 .72-
Current Accruals 34 ,791 .59
Assets Distributed 500 ,000 .00- 0. 00 500 ,000 .00-
Bank Fees 762 .07- 0. 00 762 .07-
Cash Management 390 ,832 .71 390, 832. 71 - 390 ,832 .71 Dividends 9 ,629 .36 0. 00 9 ,629 .36
Interest 300 .00 0. 00 300 .00
Sales/maturities 100 ,000 .00 100, 000. 00 - 100 ,000 .00 Realized Gain/loss 0 .00
Non Cash Asset Changes
Balances End Of Period 0 .00 4, 493, 776. 25 4 ,520 ,964 .23 Transaction Statement
Date Quantity Description Transaction Cash Cost Basis
Type
09/01/25 Beginning Balance 0.00 4,984,608.96
Sales/maturities
3134GWVN3
09/30/25 100,000.000- MATURED 100,000 UNITS FEDERAL MATURITY 100,000.00 100,000.00-

HOME LN MTG CORP CALL DTD
09/30/2020 .6% 09/30/2025
Total Sales/maturities 100,000.00 100,000.00-
Assets Distributed
09/09/25 TRANSFER TO DDA/SAV ACCT CITY OF DISBURSEMENT 500,000.00-

CANYON LAKE CASH TRANSFER TO CBB
ACCT ENDING 5402 PER WRITTEN
RQST DTD 9/6/25 & VERBAL
CONFIRMATION DTD 9/8/25 WITH CMD
APPROVAL DTD 9/8/25
Total Assets Distributed 500,000.00- 0.00
Bank Fees
09/29/25 MANAGEMENT FEES CITIZENS DISBURSEMENT 762.07-

BUSINESS BANK
FOR THE PERIOD ENDING 09/20/2025
Total Bank Fees 762.07- 0.00
Cash Management
94975P405
09/30/25 390,832.710- NET CASH MANAGEMENT NET CASH MGMT 390,832.71 390,832.71- Total Cash Management 390,832.71 390,832.71-
City Council Agenda,

Account Summary Statement Page 5
Account Number:

September 01, 2025 To September 30, 2025
Transaction Statement ( Continued )
Date Quantity Description Transaction Cash Cost Basis
Type
Interest
3134GWVN3
09/30/25 INTEREST ON 100,000 UNITS INTEREST RCVD 300.00

FEDERAL HOME LN MTG CORP CALL
DTD 09/30/2020 .6% 09/30/2025
PAYABLE 09/30/2025
Total Interest 300.00 0.00
Dividends
94975P405
09/02/25 DIVIDEND ON ALLSPRING FUNDS TR DIVIDEND 9,629.36 GOVT MMKT I PAYABLE 09/02/2025
EFFECTIVE 08/31/2025 TAX
EFFECTIVE 08/31/2025
Total Dividends 9,629.36 0.00
09/30/25 Ending Balance 0.00 4,493,776.25
City Council Agenda,

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City Council Agenda,

ITEM NO. 9

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Arron Brown, City Manager
DATE: 11/12/2025
SUBJECT: Adopt a Resolution Approving Budget Adjustments for the City's Rental Fund Recommendation:

Adopt Resolution No. 2025-46 approving budget adjustments for the City's Rental Fund.

Background/Analysis:

The City purchased a commercial property located at 31542 Railroad Canyon Road on March 30, 2020. The activity is recorded in the Rental Fund which is an enterprise fund. The City leases out portions of the building to various tenants and is responsible for the costs to maintain the building including repairs and maintenance. The activities of this property were included in the City's Adopted 2025-26 Budget on May 14, 2025.

The City purchased a commercial property located at 31600 Railroad Canyon Road on April 30, 2025.

The activity is recorded in the Rental Fund which is an enterprise fund. The building had several tenants from the date of purchase through July 2025. As of August 1, 2025, the building is leased to one tenant. The activities of this property were not included in the City's Adopted 2025-26 Budget, as the date of the purchase did not allow enough time to be included in the FY 2025-26 Budget adopted on May 14, 2025.

For the building located at 31542 Railroad Canyon Road the budget needs to be amended to include additional repair and maintenance costs for $15,000 due to unforeseen necessary repairs. In addition, the initial budget included payments for principal and interest on the Interfund Loan which included costs for the building located at 31520 Railroad Canyon Road, which was converted to City use during FY 2024-25. The loan was amended by the City Council at the June 11, 2025, City Council meeting.

For the building located at 31600 Railroad Canyon Road the adjustments include rental income and all expenses associated with the building as detailed in the proposed resolution attached hereto.

Fiscal Impact Yes/No:Yes
Additional Fiscal Information:

For 31542 Railroad Canyon Road there is a reduction in total expenses of $7,137 as detailed in the budget summary for Department 560. For 31600 Railroad Canyon Road the proposed rental income is $102,000 and proposed expenses are $101,674 for revenues over expenses of $326, as detailed in the budget summary for Department 580.

Attachments:
1 - Resolution
City Council Agenda,

Ex A
Ex B
City Council Agenda,

RESOLUTION NO. 2025-46

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CANYON LAKE, CALIFORNIA, APPROVING BUDGET ADJUSTMENTS FOR THE CITY’S RENTAL FUND
WHEREAS, the City has purchased two commercial properties located at 31542 and 31600 Railroad Canyon Road. The buildings are recorded in the City’s Rental Fund which is an enterprise fund; and
WHEREAS, the City leases out the buildings to various tenants and is responsible for the costs to maintain the buildings; and
WHEREAS, the City Council on May 14, 2025, adopted the FY 2025-26 Budget which included the activity of Building 31542 Railroad Canyon Road but not the activity of Building 31600 Railroad Canyon Road; and
WHEREAS, the FY 2025-26 Budget for 31542 Railroad Canyon Road needs to be amended to include additional repair and maintenance costs of $15,000 and a reduction of $1,227 and $20,910 in interest and principal costs respectively, per the Amended Interfund Loan Agreement approved by the City Council at the June 11, 2025, City Council meeting; and WHEREAS, the FY 2025-26 Budget for 31600 Railroad Canyon Road needs to be amended to include the rental activity. The amendment includes $102,000 in rental income and $101,674 in rental expenses.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CANYON LAKE DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated herein by reference.

Section 2. That the City Council does hereby approve the Budget Adjustments as proposed for 31542 Railroad Canyon Road (Exhibit “A” hereto).

Section 3. That the City Council does hereby approve the Budget Adjustments as proposed for 31600 Railroad Canyon Road (Exhibit “B” hereto).

Section 4. The provisions of this Resolution are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Resolution or their applicability to other persons or circumstances.

City Council Agenda,

Section 5. That the City Clerk shall certify to the adoption of this Resolution and that the same shall be in full force and effect.

Section 6. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 12th day of November 2025. ______________________________
Mark Terry, Mayor
ATTEST:
________________________________________
Sheryl L. Garcia, MMC, CPM
City Clerk
City Council Agenda,

Enterprise Fund - Rental Rental - Fund 60
Function - Department Dept - Code 560
Object Budget Adopted Budget Amended
Acct # 2024-25 2025-26 Adjustments 2025-26

REVENUES
4698 Rental Income $ 74,600 $ 108,315 -$ $ 108,315
Revenue Total $ 74,600 $ 108,315 -$ $ 108,315

OPERATING EXPENSES
6210 Office Expense & Supplies $ 250 $ 250 -$ $ 250
6320 Utilities 14,000 14,000 - 14,000
6325 Repairs & Maintenance 2,000 5,000 15,000 20,000
6326 Assessments 11,000 11,400 - 11,400
6328 Property Taxes 2,800 3,100 - 3,100
6610 Professional & Specialized Services - 2,000 - 2,000 6900 Interest Expense 15,988 16,720 (1,227) 14,761
6910 Principal Expense 33,240 33,969 (20,910) 13,059
Expense Total: $ 80,010 $ 85,707 $ (7,137) $ 78,570

CAPITAL COSTS
8014 Building Improvements ‐                   - ‐                   - -$ -$ -$ -$

DIVISION SUMMARY
Total Revenue $ 74,600 $ 108,315 -$ $ 108,315
Personnel -$ -$ -$ -$
Operations & Maintenance 80,010 85,707 (7,137) 78,570
Capital - - - -
Total Expenses $ 80,010 $ 85,707 $ (7,137) $ 78,570
Surplus/Shortfall $ (5,410) $ 22,608 $ 7,137 $ 29,745
City of Canyon Lake
Budget Summary - Building 31542 Railroad Canyon Road
Fiscal Year 2025-26
City Council Agenda,

Enterprise Fund - Rental Rental - Fund 60
Function - Department Dept - Code 580
Object Budget Adopted Budget Amended
Acct # 2024-25 2025-26 Adjustments 2025-26

REVENUES
4698 Rental Income -$ -$ $ 102,000 $ 102,000
Revenue Total -$ -$ $ 102,000 $ 102,000

OPERATING EXPENSES
6210 Office Expense & Supplies -$ -$ $ 500 $ 500
6320 Utilities - - 6,000 6,000
6325 Repairs & Maintenance - - 7,000 7,000
6328 Property Taxes - - -
6326 Assessments - - 5,700 5,700
6900 Interest Expense - - 56,487 56,487
6910 Principal Expense - - 25,987 25,987
Expense Total: -$ -$ $ 101,674 $ 101,674

CAPITAL COSTS
Building Improvements $ - $ - $ - $ -

DIVISION SUMMARY
Total Revenue -$ -$ $ 102,000 $ 102,000
Personnel -$ -$ -$ -$
Operations & Maintenance - - 101,674 101,674
Capital - - - -
Total Expenses -$ -$ $ 101,674 $ 101,674
Surplus/Shortfall -$ -$ $ 326 $ 326
City of Canyon Lake
Budget Summary - Building 31600 Railroad Canyon Road
Fiscal Year 2025-26
City Council Agenda,

ITEM NO. 10

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Arron Brown, City Manager
DATE: 11/12/2025
SUBJECT: Consideration of a Change Order for the Canyon Lake Police Department Construction Project in the Amount of $79,356.00
Recommendation:

Approve a change order in the amount of $79,356.00 for the Canyon Lake Police Department Construction Project.

Background/Analysis:

On August 13, 2025, the City Council awarded a construction contract to Lowe Construction, Inc. in the amount of $637,230 for the Canyon Lake Police Department Construction Project. As part of the project the City Council approved a 10% contingency to cover the cost of any contract change order work.

Construction on the project began on August 18, 2025, and is nearing completion. During the course of the project it was determined by the engineer of record that certain additional work needed to be performed, which is outlined in the attached change order. Since this additional work exceeds the original project contingency, staff is requesting that the City Council approve a contract change order with Lowe Construction, Inc. in the amount of $79,356.00.

Fiscal Impact Yes/No:Yes
Additional Fiscal Information:

Funds sufficient to cover the proposed additional work is included in the $1,200,000 police department start-up funds approved by the City Council on August 13, 2025.

Attachments:
1 - Change Order
City Council Agenda,

PROJECT DESCRIPTION:

Lowe General Construction Inc., herein referred to as “Contractor”, shall provide the material and labor in order to complete the following additional work to the Public Works Agreement, dated August 14, 2025, between the City of Canyon Lake and Lowe General Construction, Inc.. These changes come at the request of the City of Canyon Lake and/or at the direction of the Engineer of record with DMA, in order to meet compliance requirements.

DUAL PANE WINDOWS $9,581.00
Contractor will remove and dispose of the existing single pane windows, found in the newly added Sergeant and Lieutenant offices. Contractor will install new, bronze, dual pain, center glazed, storefront windows with tempered LOW-E70 glass over laminated bronze glass.

SEWER CLEAN OUT $375.00
Contractor will scope and clean out the existing 4” sewer line, located at the east end of the building and install a cap on the clean out end (currently absent).

EVIDENCE ROOM CEILING $2,700.00
At the direction of the Engineer of record with DMA, Contractor will create a “hard lid” ceiling, in the Evidence Room, by installing ceiling joists and two layers of 5/8” sheetrock. Contractor will texture coat and paint the new ceiling to match the walls.

Change Order #012025 Page 1
30049 Gulf Stream Drive - Canyon Lake, CA 92587 (951) 498-8101 License #1073832
CHANGE ORDER #012025

CONTRACTOR
Lowe General Construction, Inc.
30049 Gulf Stream Drive
Canyon Lake, CA 92587
CLIENT
City of Canyon Lake
31516 Railroad Canyon Road
Canyon Lake, CA 92587

PROJECT LOCATION
Canyon Lake Police Department
31516 Railroad Canyon Road
Canyon Lake, CA 92587
City Council Agenda,

EVIDENCE ROOM FILTRATION $9,795.00
At the direction of the Engineer of record with DMA, contractor will provide and install a HERO HS300 Commercial/Medical grade exhaust system with a charcoal and HEPA filter. Contractor will install a Magnahelic pressure guage on the unit, to monitor filter performance. Contractor will install rigid ducting to the outer, east side of the building and install an eyebrow in the stucco. Contractor will patch and paint the stucco, around the newly installed eyebrow. Contractor will install a second eyebrow, in the exterior stucco and run a rigid metal intake pipe, in order to bring fresh air into the Evidence Room.

INTERVIEW ROOM CEILING $2,700.00
Contractor will create a “hard lid” ceiling, in the Interview Room, by installing ceiling joists and two layers of 5/8” sheetrock, in an attempt to minimize sound transition, outside of the room, through the ceiling. Contractor will texture coat and paint the new ceiling to match the walls.

PROCESSING ROOM CEILING $2,180.00
At the direction of the Engineer of record with DMA, Contractor will create a “hard lid” ceiling, in the Processing Room, by framing ceiling joists and installing two layers of 5/8” sheetrock. Contractor will texture coat and paint the new ceiling to match the walls.

PROCESSING ROOM FLOOR $550.00
Contractor will install an epoxy finish, over the cement floor of the Processing Room. This will be done to eliminate the old vinyl tile delineation marks that were found on floor, post diamond grinding.

Contractor will install a polyaspartic urethane over the epoxy in order to add scratch resistance and resilience to the floor.

EVIDENCE LOCKER $1,500.00
Contractor will frame in an opening to accommodate City purchased evidence lockers, according to the spec sheets provided by the locker manufacturer. Contractor will install the evidence lockers according to the manufacturers specifications.

HVAC $7,652.00
At the direction of the Engineer of record with DMA, Contractor will install a separate 12,000 BTU mini split HVAC system in the Evidence Room. Contractor will tie the condensation line into the existing copper condensation line, found above T-bar.

SECURITY $6,235.00
At the direction of the Engineer of record with DMA, Contractor will install 1/4” thick aluminum sheet panels, across the Northern wall, separating the Police Department and the POA offices. Sheet metal will installed on the furred out wall of the Armory, Evidence Room, and Server Room.

ADA COMPLIANT ENTRY DOOR $8,875.00
At the direction of the Engineer of record with DMA, Contractor will install a motorized door opener, for the elevator vestibule entry door, into the Police Station. Additionally, contractor will install an electrical supply to the motor and an ADA compliant push button, on the inside of the Police Station.

Change Order #012025 Page 2
City Council Agenda,

CODE ENFORCEMENT OFFICE $5,375.00
Contractor will completely demo and dispose of the existing public countertop and wall. Contractor will re-frame a new wall, complete with an ADA height compliant countertop and standard public height countertop. Contractor will install (2) 3/8” laminated glass partitions with 6” pass though slots on the bottom and speak through holes. Contractor will run the framing, drywall, texture coat, and paint above the glass, to above T-bar. Contractor will replace carpeting, where bottom plates were removed form old framing.

CODE ENFORCEMENT ELECTRICAL $250.00
Contractor will add one additional convenience outlet to the employee side of the newly constructed countertop. This will eliminate the extension cord being run through the hole in the wall of the countertop, as it is currently.

INFORMATION TECHNOLOGY $400.00
Precision Technologies will run new CAT6 cabling from the Police Department Server Room to two pre determined location upstairs, in the Council Chamber. Cabling will be routed above Police Department T-bar and through existing conduit whips.

REFRIGERATOR $2,358.00
Contractor will provide and install an LG-Counter Depth refrigerator with zero hinge clearance.

Contractor will provide and install a dual outlet angle stop and stainless steel water line for the ice maker.

AIR HANDLER FRESH AIR INTAKE $2,624.00
At the direction of the Engineer of record with DMA, Contractor will install a split fresh air intake for the two air handler systems. Contractor will install rigid ducting through the east exterior wall, into a galvanized eyebrow. Contractor will patch the stucco around the new eyebrow. Contractor will make connections at each air handler, above T-Bar.

EXHAUST FAN DUCTING $2,117.00
Contractor will add ducting to the two existing exhaust fans, in the men’s and women’s first floor restrooms that are currently exhausting into the attic. Contractor will run ducting through the roof of the building and will mastic around the opening to ensure a water tight seal.

WEEP SCREED $4,150.00
Contractor will cut out and dispose of the existing stucco, along the bottom of the east facing exterior wall of the building, and remove the weep screed that is rotting away. Contractor will install new flashing and weep screed and will patch repair new stucco to the new weep screed.

EXTERIOR PAINTING $4,750.00
Contractor will pressure wash the east facing, exterior wall of the building. Contractor will mask off windows and paint the existing stucco wall, two electrical room doors, four metal eye brows, and two exterior light fixtures.

Change Order #012025 Page 3
City Council Agenda,

EXTERIOR PLANTER $1,463.00
Contractor will install weed block fabric in the existing planter, along the east wall of the building.

Contractor will cover the weed block fabric with decorative rock in order to minimize splashing of rain water onto the building and A/C condensers.

DOOR SEAL OFF $100.00
Contractor will prepare office door for application of black sealant and install sealant to the exterior door opening of storefront office unit in order to prevent weather and insect penetration into office. Doing so will eliminate the use of the storefront office door.

PLANTER DOWNSPOUTS $1,188.00
Contractor will install two downspout connectors to the existing downspouts located on two west facing columns (parking lot area). Contractor will relocate plants and dig a trench, though the planter, and install drain pipes that carry the water away from the building. Contractor will terminate the drain lines, at the asphalt parking lot, with miter drain caps.

RAIN GUTTER $3,780.00
Contractor will cut off the existing rafter tails that protrude past the facia board. Contractor will install a seamless rain gutter system, along the east wall of the building. Contractor will install downspouts at the north and south end of the rain gutter, that carry water away from the building.

CSO OFFICE GLASS PARTITION $1,558.00
At the direction of Chief Rayles, Contractor will install two additional pieces of 3/8” laminated, clear tempered glass strips. Strips will be installed in matching chrome hardware and will located on the employee side of the newly installed glass partitions. Glass strips will be flush mounted with the new countertop with 17” strips, in the middle of each piece, that rise approximately 3/4” in order to pass papers through. The top of the glass strips will rise above the bottom of newly installed glass partitions by approximately 2”.

CUBICLE WALL CAPS $0.00
Contractor will install Poplar wall caps in lieu of drywall caps to the cubicle walls. Contractor will stain the Poplar wall caps with black stain and apply two coats of urethane clear coat.

ELEVATOR CARPET $0.00
Contractor will remove the existing elevator carpeting and install glue down carpet tiles to match the new carpet in the elevator vestibule, stairs, and Police Station.

CREDITS -$2,900.00
• No block wall installed in Processing Room -$1,700.00 • No door installed in Processing Room -$1,200.00
Change Order #012025 Page 4
City Council Agenda,

CHANGE ORDER TOTAL
Lowe General Construction, Inc., shall provide all of the material (except otherwise noted) and labor in order to complete the changes described within this Change Order and furthermore, according to the Plans and Scope of Work provided by the City of Canyon Lake and at the direction of the Engineer of record with DMA, in a professional and workmanlike manner for the fixed sum of $79,356.00 (seventy nine thousand three hundred fifty six dollars).

WORK SCHEDULE: The work described in this Change Order shall begin on or about the 18th day of August, 2025 and shall be substantially completed by November 21, 2025, weather and circumstances permitting. Should the City of Canyon Lake elect to make changes or additions to the scope of the work described, a re-projected end date shall be determined at such time. See the attached formal schedule for reference.

CHANGES: Any changes to the plans, specifications and/or installation of the job, as described in this Proposal, shall be in writing and approved in writing by the City of Canyon Lake and the Contractor and shall be billed at an agreed upon price.

Respectfully submitted this 17th day of October, 2025.
_____________________________________
Kevin S. Lowe 10/17/2025
President
Change Order #012025 Page 5
Kevin S Lowe
City Council Agenda,

ITEM NO. 11

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Arron Brown, City Manager
BY: Jim Morrissey, City Planner
DATE: 11/12/2025
SUBJECT: Adopt a Resolution Adopting a General Plan Amendment (GPA 25-01) Amending the City of Canyon Lake Housing Element for the 6th Cycle, Years 2021 to 2029 Recommendation:
(1) Open the public hearing and take public testimony; and (2) adopt Resolution No. 2025-47 amending the City of Canyon Lake General Plan Housing Element to meet the requirements of the 6th Cycle Housing Element requirements of State law and the California Department of Housing and Community Development, adopting the Addendum to the previous Negative Declaration for the Housing Element, adopted February 9, 2022, and a finding that no substantial changes have occurred in the proposed Project due to new significant information, new environmental effects or new information of substantial importance, consistent with the California Environmental Quality Act (CEQA).

Background/Analysis:

Overview
Housing Elements are required to be updated during specific periods to meet identified housing needs established by the State, including the provision of ensuring adequate housing for all income groups.

The City's existing Housing Element was completed for the 5th Cycle and adopted in October 2019, with a Mid-Term Update in May 2020. Both documents consisted of goals, policies, and programs for the period 2013 to 2021. This proposed updated Housing Element contains some of the same goals, policies, and programs contained in the existing Housing Element.

The City of Canyon Lake has prepared a number of draft updates to its current General Plan Housing Element to comply with State Department of Housing and Community Development (HCD) comments.

The most recent update and the subject of this hearing, was undertaken by Rincon Associates. It represents a comprehensive revision in the manner in which existing demographic and economic characteristics are presented. Also included are some new programs intended to meet the requirements of the State Housing and Community Development.

Analysis
The City of Canyon Lake initiated this most recent change to the Housing Element starting in June 2023, with the execution of an agreement with Rincon Consultants, Inc. Since that time, Rincon has undertaken a methodical update to the Housing Element that incorporates an expansion of demographic and economic data and updated implementation programs. Through Rincon, the City has coordinated with HCD to obtain their comments. An updated version of the Housing Element was filed with HCD on December 17, 2024. On February 7, 2025, HCD provided a comment letter requesting minor changes to the Element and a modification to the City's Mixed Use Zone that incorporates some of the State housing requirements. Changes have been made to both documents and are presented to the City Council for their consideration. The Mixed Use Zone, which covers the businesses in the City Council Agenda,

Towne Center, includes the Towne Center Specific Plan where the number of housing units required by the State Regional Housing Needs Allocation (RHNA) distribution model are to be located.

To comply with the State's request to amend the Mixed Use Zone, Staff has placed that Zone Amendment on the same agenda as the Housing Element Amendment, so that both documents can be submitted to the State for final acceptance and certification. The purpose of the comments provided by HCD are to determine compliance with State Law and do not represent approval of the document. The State's review and acceptance process is intended to certify compliance with State Law.

Proposed Housing Programs
Most of the proposed Programs represent a continuation of past Programs and are either unchanged or modified. The most notable additions or modifications provided by the new Programs reflect programs related to the development of housing in the Towne Center. Among the programs included in the Housing Element are those to incentivize the construction of Accessory Dwelling Units and housing for lower-income and special needs; a vacant land survey; displacement prevention of existing businesses in the Towne Center; methods to streamline project approvals; review opportunities to remove barriers to housing production and affordability; housing code enforcement; preparation of a marketing plan for the Towne Center to provide diverse housing opportunities for demographically diverse and lower income households; networking with groups to help ensure householders are not displaced through new construction, and; cooperate with RTA to identify actions to connect residents to job centers. The proposed housing programs are listed below:

New and Modified Programs as Accepted by State HCD
Program Category List of Programs
Category 1:

Actions to Make Sites Available to Accommodate
the RHNA

1.1: Annual Housing and Vacant Lot Reporting
Program

1.2a: Facilitate the full buildout of the TCSP to
accommodate RHNA

1.2b: Rezone and Lot Consolidation Program on
Mixed-use Sites within the TCSP

1.2c: Displacement Prevention of Existing
Businesses within the TCSP

1.2d: City-owned Sites/Surplus Land Act

1.3: No Net Loss Program (continuation)
Category 2:

The Development of Adequate Housing to Meet the
Needs of All Economic Segments

2.1: Section 8 Housing Choice Voucher
Program (continuation)

2.2: First Time Homebuyer Program
(continuation)

2.3: Lower-Income and Special Needs Housing
Incentives Program

2.4: ADU Incentives Plan

2.5: Area Agency on Aging Outreach Program
(continuation)

2.6: Inland Regional Center Outreach Program

2.7: Density Bonus Ordinance (continuation)
Category 3:

3.1: Zoning Ordinance Amendments
(continuation)

3.2: Reasonable Accommodation Procedure
(continuation)
City Council Agenda,

Address and Remove Governmental and
Nongovernmental Housing Constraints

3.3: SB 35 Streamlining Information

3.4: Support the Development of a Variety of
Housing Types
Category 4: Conserve and Improve the Condition of
the Existing Housing Stock

4.1: Housing Code Enforcement

4.2: Homeowner Housing Rehabilitation
Program (continuation)
Category 5: Promote and Affirmatively Further
Housing Opportunities for All Persons

5.1: AFFH Outreach Program (continuation)

5.2: Fair Housing Services Program
(continuation)

5.3: Affirmative Fair Housing (Marketing AFHM)
Plan

5.4: Displacement Risk Program

5.5: Transit Expansion Program

5.6: Equitable Quality of Life Program
Fiscal Impact Yes/No:No
Attachments:
1 - Resolution
Ex A - HCD Letter
Ex B - Housing Element Amendment
Ex C - Adopted Negative Declaration
Ex D - Addendum to the Adopted Negative Declaration
City Council Agenda,

RESOLUTION NO. 2025-47

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CANYON LAKE, CALIFORNIA, ADOPTING GENERAL PLAN AMENDMENT 25-01, TO ADOPT THE CITY’S 6TH CYCLE HOUSING ELEMENT UPDATE, YEARS 2021 TO 2029; AND

DIRECTING STAFF TO PROVIDE THE AMENDED HOUSING ELEMENT FOR THE

SIXTH CYCLE TO THE DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT
WHEREAS, the City of Canyon Lake has adopted a General Plan, consistent with Government Code Section 65300; and
WHEREAS, said General Plan includes a Housing Element certified by the State Department of Housing and Urban Development for the 5th Cycle, Years 2013 to 2021; and WHEREAS, the City Council has received correspondence from the State Department of Housing and Community Development requiring an update to that document for the 6th Cycle, Years 2021 to 2029; and
WHEREAS, the City of Canyon Lake Housing Element has been updated to provide the required materials and documentation requested by the State Department of Housing and Community Development in their multiple adoption of a revised Housing Element on October 2, 2019, February 9, 2022, and August 8, 2022, and in subsequent versions submitted for review, as referenced in their letters of December 7, 2021, April 15, 2022, October 18, 2022, March 4, 2024, August 27, 2024, February 7, 2025 to the City of Canyon Lake as part of the City’s 6th Cycle Housing Element Update; and
WHEREAS, the City of Canyon Lake updated and adopted the City’s Housing Element to comply with the request of the State Department of Housing and Community Development for the 6th Cycle Housing Element; and
WHEREAS, the State Department of Housing and Community Development (HCD) issued a letter on February 7, 2025, requesting a number of minor modifications to the adopted 6th Cycle Housing Element; and
WHEREAS, Staff modified the Housing Element pursuant to HCD suggestions and to meet Proposed Sixth Cycle Housing Element the needs of the City for all income groups for the eightyear period encompassing the Sixth Cycle Housing Element (“Amended Sixth Cycle Housing Element”); and
WHEREAS, the Amended Sixth Cycle Housing Element is in accordance with the requirements of the Sixth Cycle Housing Element and updated to be consistent with the comments provided by the HDC in their letter dated February 7, 2025; and
City Council Agenda,

WHEREAS, the Amended Sixth Cycle Housing Element contains a number of new, expanded and continued programs listed in the City’s 5th Cycle Housing Element; and WHEREAS, the Amended Sixth Cycle Housing Element focuses on meeting the identified number of new housing units within the City, providing programs to meet identified needs and housing requirements, and continuing and updating a number of the previously adopted programs to meet identified housing needs; and
WHEREAS, the City of Canyon Lake has made the document available for public review to receive input on the proposed Housing Element update; and WHEREAS, the amended Housing Element projects meeting the needs of the City of Canyon Lake for all income groups for the eight year period encompassing the 6th Cycle, Year 2021 to 2029; and
WHEREAS, the City complied with SB 18 and other laws for tribal consultation, and, incorporated an additional policy and objective based upon that consultation; and WHEREAS, this Housing Element update was noticed with a 1/8 page advertisement in the Friday Flyer for public hearing, before the City Council on November 12, 2025, as provided for in Government Code Section 65091; and
WHEREAS, on November 12, 2025, after a duly noticed public hearing, the City Council adopted a Resolution to recommend approval of the Resolution approving, among other things, the Proposed Sixth Cycle Housing Element; and
WHEREAS, an Addendum to an adopted Negative Declaration was prepared consistent with the California Environmental Quality Act (CEQA), based upon the proposed changes to the Element, and used as a basis for the evaluation of this update; and WHEREAS, the City Council finds that the adoption of the General Plan Amendment 25-01 and the Amended Sixth Cycle Housing Element will promote the public interest, health, safety, convenience, or welfare of the City.
.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CANYON LAKE DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated herein by reference.

Section 2. Based upon the referenced HCD comment letters and the February 7, 2025, letter (Exhibit “A”), the City Council makes the following findings regarding GPA (General Plan Amendment) 25-01:

City Council Agenda,

1. The proposed Housing Element update (Exhibit “B”), is in accordance with the requirements of the 6th Cycle Housing Element and updated to be consistent with the comments provided by the State Housing and Community Development (HDC) in their letter dated February 7, 2025.

2. The proposed Housing Element update contains a number of new programs and expanded or continued programs listed in the City’s 5th Cycle Housing Element.

3. The proposed Housing Element update focuses on meeting the identified number of new housing units within the City, providing programs to meet identified needs and housing requirements, and continuing and updating a number of the previously adopted programs to meet identified housing needs.

4. The proposed Housing Element update does not require the establishment of additional residentially designated properties or an increase in residential densities to meet identified housing needs, as reflected in the General Plan Land Use Map.

5. The proposed Housing Element update does not involve a change to or conflict with any of the General Plan’s visions, goals, and principles.

6. The proposed Housing Element update has been evaluated to determine compliance with the California Environmental Quality Act (CEQA) through the completion of an adopted Negative Declaration on February 9, 2022 (Exhibit “C”), and the preparation of an Addendum (Exhibit “D”) to evaluate any changes to the Housing Element, including the availability of additional information, such as the update Safety Element, and represents the City’s independent evaluation of the project.

Section 3. The proposed Housing Element Amendment addresses the comments from the Department of Housing and Community Development and incorporates changes in the Housing Element data and programs to identify demographic and economic data and to comply with updated State laws.

Section 4. Pursuant to the above findings, the City Council of the City of Canyon Lake adopts the findings and the environmental determination provided in this resolution and approve GPA 25-01.

Section 5. The provisions of this Resolution are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Resolution or their applicability to other persons or circumstances.

Section 6. That the City Clerk shall certify to the adoption of this Resolution and that the same shall be in full force and effect.

City Council Agenda,

Section 7. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 12th day of November 2025. ______________________________
Mark Terry, Mayor
ATTEST:
________________________________________
Sheryl L. Garcia, MMC, CPM
City Clerk
City Council Agenda,

EXHIBIT “A”
February 7, 2025, HCD Letter
(attached)
City Council Agenda,

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
February 7, 2025
Jim Morrissey, City Planner
City of Canyon Lake
31516 Railroad Canyon Road
Canyon Lake, CA 92587
Dear Jim Morrissey:

RE: City of Canyon Lake’s 6th Cycle (2021-2029) Subsequent Draft Housing Element Thank you for submitting the City of Canyon Lake’s (City) revised draft housing element update received for review on December 17, 2024, along with revisions received on February 4, 2025. The revisions were posted and made available to the public for seven days prior to review. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on January 23, 2025 with Jason Montague, Consultant.

The revised draft element, incorporating the revisions, addresses most statutory requirements described in HCD’s August 27, 2024 review. However, the housing element cannot be found in substantial compliance until the City has completed Program 1.2b (Rezone Program on Mixed-use Sites within the TCSP) to rezone sites to accommodate the Regional Housing Needs Allocation (RHNA) pursuant to Government Code section 65583.2, subdivisions (h) and (i). While HCD has reviewed Ordinance Number 222 to rezone sites within the TCSP, the ordinance does not meet statutory requirements. Specifically, the zoning does not appear to meet requirements related to nondiscretionary review for housing developments with 20 percent affordability, minimum density (20 dwelling units per acre for Canyon Lake), residential performance standards, including allowing 100 percent residential development, among other requirements. Pursuant to Government Code section 65588, subdivision (e)(4), a jurisdiction that failed to adopt a compliant housing element within one year from the statutory deadline cannot be found in compliance until rezones pursuant to Government Code sections 65583, subdivision (c)(1) and 65583.2, subdivision (c) is completed.

City Council Agenda,

Jim Morrissey, City Planner

The housing element will substantially comply with State Housing Element Law (Gov.

Code, § 65580 et seq) when it is adopted, submitted to and approved by HCD, in accordance with Government Code section 65585, subdivision (g) and all rezones are completed pursuant to Government Code section 65583.2, subdivision (h) and (i).

Once the City completes Program 1.2b, a copy of the resolution or ordinance should be transmitted to HCD.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate.

Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

In addition, for your information, if the element relies on nonvacant sites to accommodate 50 percent or more of the housing needs for lower-income households, requirements are triggered to make findings based on substantial evidence (as part of adoption) that the existing use is not an impediment and will likely discontinue in the planning period. Please see HCD’s prior reviews for additional information.

For your information, pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory and submit an electronic version of the sites inventory. While the City has submitted an electronic version of the sites inventory, if changes occur, any future adopted versions of the element must also submit the electronic version of the sites inventory.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Affordable Housing and Sustainable Communities programs, and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

City Council Agenda,

Jim Morrissey, City Planner

HCD appreciates the hard work and dedication of the housing element team in the update and review of the housing element. HCD looks forward to receiving the City’s adopted housing element. If you have any questions or need additional technical assistance, please contact Clare Blackwell, of our staff, at [email protected].

Sincerely,
Melinda Coy
Proactive Housing Accountability Chief
City Council Agenda,

EXHIBIT “B”
Housing Element Update
(attached)
City Council Agenda,

Canyon Lake Housing Element (2021-2029)
Adopted: August 8, 2022
City Council Agenda,

Table of Contents i
Adopted: August 8, 2022
Table of Contents
Section I – Introduction
1 Background and History.................................................................................................................................... 1-1

1.1 Government Code Requirements.......................................................................................................... 1-1 2 Organization of the Housing Element............................................................................................................... 1-2 3 Housing Element Consistency with Other General Plan Elements................................................................... 1-3

3.1 Water and Sewer Priority ...................................................................................................................... 1-3 4 Public Participation and Consultation............................................................................................................... 1-4

4.1 City Council Meeting – May 5, 2021 ...................................................................................................... 1-4

4.2 Community Housing Element Workshop – July 1, 2021 ........................................................................ 1-4

4.3 City Council Public Hearing on Draft Housing Element– September 1, 2021 ........................................ 1-5

4.4 City Council Public Hearing – December 1, 2021................................................................................... 1-5

4.5 City Council Public Meeting – June 1, 2022 ........................................................................................... 1-7 Section II – Housing Element Summary & Housing Programs 1 Introduction ...................................................................................................................................................... 2-1

1.1 Goals, Policies, and Programs................................................................................................................ 2-1

1.2 Category 1: Actions to make sites available to accommodate the Regional Housing Needs Assessment (RHNA) ............................................................................................................................... 2-2

1.3 Category 2: Assist in the development of adequate housing for Special Needs and LowIncome households................................................................................................................................ 2-8

1.4 Program Category 3: Address and remove governmental and nongovernmental housing constraints ........................................................................................................................................... 2-15

1.5 Program Category 4: Conserve and improve the condition of the existing stock ............................... 2-18

1.6 Program Category 5: Promote and affirmatively further housing opportunities for all persons................................................................................................................................................. 2-20

1.7 Quantified Objectives.......................................................................................................................... 2-26 Tables
Table 2-1 City of Canyon Lake 2021-2029 Housing Programs............................................................................... 2-2 Table 2-2 Quantified Objectives .......................................................................................................................... 2-26 Appendices
Appendix A Assessment of Housing Needs
Appendix B Assessment of Fair Housing
Appendix C Sites Inventory and Analysis
Appendix D Governmental Constraints Analysis
Appendix E Non-Governmental Constraints Analysis
Appendix F Housing Resources
Appendix G Progress Report
City Council Agenda,

ii Table of Contents
Adopted: August 8, 2022
THIS PAGE INTENTIONALLY LEFT BLANK.

City Council Agenda,

Canyon Lake Housing Element (2021-2029)
Canyon Lake Housing Element (2021-2029)
Section I – Introduction
City Council Agenda,

Section I – Introduction 1-1
Canyon Lake Housing Element (2021-2029)
1 Background and History
The roots of the City of Canyon Lake were established in 1882 when the California Southern Railroad built a small branch line from Perris to Lake Elsinore along the east side of the San Jacinto River. In the early 1900’s, a series of multiple floods wiped out the rail lines, which were eventually abandoned. In 1927, work started on the dam that would create Canyon Lake, originally named Railroad Canyon Reservoir. When the lake was constructed, it was one of the largest freshwater lakes in Southern California. From 1937 to 1968 the lake was operated as a small fishing resort. In 1968 Canyon Lake was established as a gated master planned community by the Corona Land Company.

The City of Canyon Lake was officially incorporated on December 1, 1990. Community development patterns, location and density of development was established prior to the City’s incorporation. The City is structured around private, gated residential areas and is only one of five gated cities in California.

All residences within the city are currently located within the Canyon Lake Property Owners Association (POA), and all but a few roads within the city are privately held and maintained. The entrances to the Canyon Lake POA are gated and guarded, accessible by residents and selected guests approved by the owners within the POA. Recreational parks, water use, and social centers are restricted to residents and their invited guests. Current residents include retirees, young families, and those looking for security or a change of residence.

The community is named for Canyon Lake reservoir which it surrounds. The reservoir, created in 1928 with the construction of the Railroad Canyon Dam, has a storage capacity of 11,586-acre feet. It is owned and operated by the Elsinore Valley Municipal Water District. The reservoir is supplied by storm water runoff from the San Jacinto River and Salt Creek. Water from the reservoir feeds the Canyon Lake Water Treatment Plant, which provides approximately 10 percent of the domestic water supply in the Lake Elsinore/Canyon Lake area.

Three commercial areas are located within the city. The first is located at the west end of the city on Railroad Canyon Road, while the second at the east end of the city on Goetz Road. The main shopping and business center of the city, Canyon Lake Towne Center, is located directly across Railroad Canyon Road from the Main (south) entrance gates.

The Towne Center provides Canyon Lake with many services and is the location of Canyon Lake City Hall, a county sheriff's satellite station, a Riverside County branch library, and the Property Owner's Association offices, which are all located side by side in the same building. The Towne Center also houses the Canyon Lake Chamber of Commerce.

The City of Canyon Lake does not have identifiable extremely low-, very low- and low- income neighborhoods. All residents have access to POA amenities, which include parks, restaurants, pools, boat launch areas, an equestrian center and the Lake. All but a very few single-family residential lots are in gated areas. The gating of the major portions of the city establishes a more uniform development pattern which decreases the ability to create demographic differences.

1.1 Government Code Requirements
A housing element is one of the seven mandated elements of the General Plan and must be updated every eight years unless otherwise extended by legislation. The City of Canyon Lake’s Housing Element covers the planning period from October 2021 to October 2029. The mandated contents of a housing element are described in detail in Title 7, Chapter 3, Article 10.6, Government Code Sections 65580 through Government Code 65589.8. The law governing the contents of a housing element is the most detailed of all elements of the General Plan. In accordance with Government Code Section 65583, “the housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobile homes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community.”
City Council Agenda,

1-2 Section I – Introduction
Canyon Lake Housing Element (2021-2029)
2 Organization of the Housing Element
The 2021-2029 Housing Element includes the following sections and appendices:
 Section I – Introduction. This section provides a background of the city as well as the required components of a housing element in accordance with State law. This section also details the public engagement effort that has been conducted through the housing element update.
 Section II – Housing Element Summary and Programs. This section presents a summary of housing needs and constraints; a statement of goals, policies, and objectives; and a description of planned actions to address the program requirements of Government Code Section 65583(c).  Appendix A – Assessment of Housing Needs. This appendix includes data and analysis of existing and projected housing needs.
 Appendix B – Assessment of Fair Housing. This appendix contains information on fair housing protected groups; describes fair housing issues; and recommends goals, priorities; and strategies.  Appendix C – Sites Inventory and Analysis. This appendix identifies the sites that will accommodate the City’s share of the regional housing need for above moderate-, moderate-, and lower-income housing units.  Appendix D – Governmental Constraints. This appendix describes actual and potential governmental constraints that hinder the City’s ability to address housing needs.  Appendix E – Nongovernmental Constraints. This appendix describes market conditions that impede the development of housing for all economic segments, including the availability of financing, land costs, and construction costs.
 Appendix F – Housing Resources. This appendix describes financial and administrative resources that can contribute to addressing the City’s housing needs.
 Appendix G – Progress Report. This appendix describes the progress the City has made in implementing the actions adopted in the 2021-2024 Housing Element.

City Council Agenda,

Section I – Introduction 1-3
Canyon Lake Housing Element (2021-2029)
3 Housing Element Consistency with Other General
Plan Elements
The City’s General Plan was adopted in 1996 and includes the seven mandated elements: Land Use, Circulation, Housing, Open Space, Conservation, Safety and Noise. The Land Use Element was amended in 2009 and the Safety Element was updated in 2023.

During the planning period, consistency between the 2021-2029 Housing Element and the other General Plan Elements will be maintained through the General Plan Annual Progress Report. This Report, which is completed in April of each year, reports on the status and implementation progress of the General Plan Elements. The Progress Report contains information on the status of General Plan amendments, if any, and how internal consistency will be maintained between the Housing Element and the other six elements.

3.1 Water and Sewer Priority
Government Code Section 65589.7(a) requires the 2021-2029 Housing Element that is adopted by the City Council to be delivered to agencies providing the City’s water and sewer services. Each public agency or private entity providing water or sewer services shall grant a priority for the provision of these services to proposed developments that include housing units affordable to lower income households.

The City will transmit a copy of the adopted 2021-2029 Housing Element with a cover letter referencing Government Code Section 65589.7(a) to the Elsinore Valley Municipal Water District (EVMWD) and the Eastern Municipal Water District (EMWD).

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1-4 Section I – Introduction
Canyon Lake Housing Element (2021-2029)
4 Public Participation and Consultation
During the preparation of the Draft 2021-2029 Housing Element the following public participation and consultation efforts were undertaken:

4.1 City Council Meeting – May 5, 2021
A presentation was made to the City Council and the public on the progress made on the preparation of the Towne Center Specific Plan. The Specific Plan is being jointly funded by the City and an SB 2 Planning Grant.

Two of the topics discussed at the meeting were the vision for the Towne Center and how mixed-use sites can accommodate the RHNA. The focus of achieving the RHNA numbers is one of the fundamental purposes of the Towne Center Specific Plan.

4.2 Community Housing Element Workshop – July 1, 2021
The City of Canyon Lake residents are all members of a Property Owners Association POA. City staff engaged residents during a community workshop on July 1, 2021. Advertisement of the workshop was made via the POA and in a local newspaper (“Friday Flyer”) advertisement. The Workshop was an in-person meeting and had a virtual component to the workshop, and a video recording of the workshop was posted on the City’s website following the meeting.

The purpose of the meeting was for City Staff to:
 Inform the public on the features of the City’s Housing Element;  The status of the Housing Element update process;
 Receive community input, and;
 Respond to questions. Staff also was to also provide an overview of recently enacted State laws that affect the City’s Housing Element.

The following organizations were invited to the public workshop:
 Canyon Lake Community Church: Largest church within the City and also provides Day Care facilities for area residents.
 Canyon Lake Chamber of Commerce: Major business/entrepreneurial organization within the City.  POA: All residential properties within the City of Canyon Lake are automatically part of the POA. The POA operates all City parks, boating on Canyon Lake, golf course, common area amenities including restaurants, equestrian center, lodge, beaches, amphitheater, and boat dock.  The Giardinelli Law Group (offices are located in Canyon Lake): Local active law firm in the City.  Housing Authority of the County of Riverside: Oversees many of the region’s housing programs.  Jamboree Housing Corporation (located in Irvine) Affordable housing developer that builds affordable housing with services throughout California.
 Riverside Housing Development Corporation: A non-profit that is committed to improving the quantity and quality of affordable housing opportunities throughout the Inland Empire.  Habitat for Humanity (located in Riverside): Nationally recognized non-profit that assists families in need of decent and affordable housing.

Unfortunately, none of the invitees or the public attended the Workshop.

City Council Agenda,

Section I – Introduction 1-5
Canyon Lake Housing Element (2021-2029)

4.3 City Council Public Hearing on Draft Housing Element– September 1, 2021
The City Council held a noticed public hearing on the Draft Housing Element with an advertisement in the Friday Flyer. City staff provided an overview of the 2021-2029 Preliminary 6th cycle Housing Element. There were no inperson or live streaming questions from the public during the general comment period at the meeting. Topics presented at the meeting included:
 Draft housing programs
 Schedule of submittal of the Housing Element to the California Department of Housing and Community Development (HCD).
 Other actions are to be taken to update the City’s Zoning Ordinance to mirror the Housing Element  Towne Center Specific Plan
Staff noted The Towne Center Specific Plan had been drafted and would be brought to the City Council for approval.

Staff also noted the Towne Center Specific Plan would provide adequate affordability of housing and meet the City’s requirement for the Regional Housing Needs Allocation (RHNA) from HCD.

Mayor Kasey Castillo asked when will the HCD review be responded to and presented back to the City Council. Mr.

Morrissey responded that it would be at the latest, the first meeting in January. Since HCD has a 60-day review period.

City Council Member Larry Greene had a question regarding the Housing Element and its effect on grants. He asked if the 5th Certified Housing Element, which was a midterm cycle, is what will allow for the SB2 Funds to pay for the Housing Element and a $160,000 Grant that was awarded will be able to move forward? Mr. Morrissey replied that the 5th Certified Housing Element would allow the funds and grants to move forward or be reimbursed. Council Member Greene further asked if the submittal and certification of the 6th Cycle Housing Element would allow for future funds for housing and other grants would allow for the submittal of the applications? Mr. Morrissey responded that they would. Also, Council Member Mr. Greene asked if there are HUD funds the City can apply for.

Jim Morrissey replied that the City of Canyon Lake has a lower population in the City; therefore, the status of HUD and CDBG grants are administered by the County of Riverside.

After a question-and-answer period between staff and the City Council, the City Council unanimously approved transmittal of the Preliminary Draft Housing Element to the State Department of Housing and Community Development.

4.4 City Council Public Hearing – December 1, 2021
Critical information regarding community surveys, community needs assessment, services provided, number and types of persons assisted, and policy recommendations were obtained from the following organizations:
 California Department of Developmental Disabilities
 Data on the number of Canyon Lake clients and their living arrangements  Amanda Swartz
 Community Access Center
 Information on home modifications and transition to independent living  Carrie Harmon
 Community Action Partnership
 Information on poverty reducing programs
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1-6 Section I – Introduction
Canyon Lake Housing Element (2021-2029)
 Disability Rights California
 Information on reasonable accommodations, reasonable modifications, service and companion animals  County of Riverside Area Agency on Aging
 Information on needs assessments, survey of seniors, housing priorities  Fair Housing Council of Riverside County, Inc.
 Review and comments on the fair housing enforcement, resources and outreach section (Appendix B) of the Preliminary Draft Housing Element by the staff of the Fair Housing Council of Riverside County, Inc.  Housing Authority of the County of Riverside – Cindy Hui (Section 8 statistics and Housing Opportunity Area Maps)
 Public Counsel Pro Bono Law Firm
 Information on best practices regarding planning for emergency shelters  Inland Regional Center
 Information on services provided and licensed and unlicensed living options  Southern California Association of Governments (SCAG) – Kevin Kane (RHNA methodology and housing data)  Terner Center for Housing Innovation
 Information on housing development costs, impact of local development impact fees, density bonuses  Vicki Gums
 U.S. Department of housing and Urban Development (HUD)  San Francisco Regional Office
 Information on housing discrimination complaints filed by Canyon Lake residents by basis and alleged act  Western Riverside County Council of Governments (WRCOG) In addition, the Draft 2021-2029 Housing Element was posted on the City’s website for review by the interested public. Additional public participation opportunities were made available during the 60-day HCD review period and the public hearings that will be held by the City Council.

The public participation and consultation effort contributed to the development of the 2021-2029 Housing Element in the following ways:
 Housing programs have been incorporated into the Housing Element to initiate and maintain ongoing consultation and involvement with mainstream organizations such as the Area Agency on Aging and the Inland Regional Center.
 The FHCRC provided valuable information on fair housing enforcement and capacity. In addition, insights were provided by the FHCRC on fair housing actions.
 The Public Counsel provided data on best practices concerning the development of emergency shelters.

In an effort to provide additional public outreach and understanding of the Towne Center Specific Plan several steps were undertaken, which include the following:
 Draft Mitigated Negative Declaration – Towne Center Specific Plan  The Draft Mitigated Negative Declaration for the Towne Center Specific Plan was made available for public review March 4, 2022, to April 4, 2022, through direct mailing to surrounding property owners within 700 feet and notice within the local newspaper publication, Friday Flyer. The City expanded the notification distance from 300 feet to 700 feet in order to obtain additional community input. The location of the Towne Center Specific Plan is directly across the street from the main gated access into the residential areas of the City. As such, the additional notification distance greatly expanded the number of residences receiving personal notification of the project.

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Section I – Introduction 1-7
Canyon Lake Housing Element (2021-2029)
 In conjunction with the environmental notification, the City prepared a Fact Sheet about the Towne Center Specific Plan and posted it on the City’s website detailing the various components of the Specific Plan. Copies of the Fact Sheet were also made available at the public counter.

4.5 City Council Public Meeting – June 1, 2022
The Towne Center Specific Plan was adopted by the City on June 1, 2022, through Resolution No. 2022-33. Ordinance 222. This Resolution amended the City Zoning Map of the City of Canyon Lake changing the zoning designation of the Towne Center property from C-1 General Commercial to Mixed Use Zone. The adoption of the Towne Center Specific Plan and the changes to the Zoning Map allow for zoning to permit high density housing in the plan area to fulfill the Regional Housing Needs Allocation. The Specific Plan also includes commercial uses to reduce vehicle trips and air emissions. Efforts to keep the public informed will continue through public notices and announcements; providing information on the City’s website; providing copies of the Draft 2021-2029 Housing Element at City Hall, the Library, and POA offices.

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Canyon Lake Housing Element (2021-2029)
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Canyon Lake Housing Element (2021-2029)
Section II – Housing Element Summary and Housing Programs City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-1 Canyon Lake Housing Element (2021-2029)
2 Introduction
The Housing Program identifies the City of Canyon Lake’s housing goals, policies, and programs. The overall strategy is to present a balanced and diverse array of programs to address the main issue areas of construction, preservation of affordable housing, conservation of naturally occurring affordable housing, rehabilitation, and administration.

Canyon Lake’s Housing Program includes the five following categories:
▪ Category 1: Actions to Make Sites Available to Accommodate the RHNA ▪ Category 2: Assist in the Development of Adequate Housing to Meet the Needs of All Economic Segments ▪ Category 3: Address and Remove Governmental and Nongovernmental Housing Constraints ▪ Category 4: Conserve and Improve the Condition of the Existing Housing Stock ▪ Category 5: Promote and Affirmatively Further Housing Opportunities for All Persons The Housing Program seeks to address housing needs as identified in Appendix A, housing constraints as identified in Appendix D and Appendix E, and patterns of segregation and barriers that restrict access to opportunity for protected classes as identified in Appendix B. Programs from the 5 th cycle Housing Element have been carried
forward where applicable, as identified in Appendix G.

2.1 Goals, Policies, and Programs
The goals and policies contained in the Housing Element address the identified housing needs in Canyon Lake and are implemented through a series of housing programs. Housing programs define the actions the City will take to achieve specific goals and policies. The Housing Element includes programs currently in operation as well as new programs that address identified housing constraints and fair housing issues. This section provides a description of each program as well as qualitative and quantitative objectives for implementing each program.

2.1.1 Summary of Programs
Table 2-1 lists individual programs in five program categories.

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2-2 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Table 2-1 City of Canyon Lake 2021-2029 Housing Programs Program Category List of Programs
Category 1: Actions to
Make Sites Available to
Accommodate the RHNA

1.1: Annual Housing and Vacant Lot Reporting Program (new)

1.2a: Facilitate the full buildout of the TCSP to accommodate RHNA (new)

1.2b: Rezone and Lot Consolidation Program on Mixed-use Sites within the TCSP (new)

1.2c: Displacement Prevention of Existing Businesses within the TCSP (new)

1.2d: City-owned Sites/Surplus Land Act (new)

1.3: No Net Loss Program (continuation)
Category 2: The
Development of
Adequate Housing to
Meet the Needs of All
Economic Segments

2.1: Section 8 Housing Choice Voucher Program (continuation)

2.2: First Time Homebuyer Program (continuation)

2.3: Lower-Income and Special Needs Housing Incentives Program (new)

2.4: ADU Incentives Plan (modified)

2.5: Area Agency on Aging Outreach Program (continuation)

2.6: Inland Regional Center Outreach Program (new)

2.7: Density Bonus Ordinance (continuation)
Category 3: Address and
Remove Governmental
and Nongovernmental
Housing Constraints

3.1: Zoning Ordinance Amendments (continuation)

3.2: Reasonable Accommodation Procedure (continuation)

3.3: SB 35 Streamlining Information (new)

3.4: Support the Development of a Variety of Housing Types (new) Category 4: Conserve and
Improve the Condition of
the Existing Housing
Stock

4.1: Housing Code Enforcement (new)

4.2: Homeowner Housing Rehabilitation Program (continuation) Category 5: Promote and
Affirmatively Further
Housing Opportunities
for All Persons

5.1: AFFH Outreach Program (continuation)

5.2: Fair Housing Services Program (continuation)

5.3: Affirmative Fair Housing (Marketing AFHM) Plan (new)

5.4: Displacement Risk Program (new)

5.5: Transit Expansion Program (new)

5.6: Equitable Quality of Life Program (new)

2.2 Category 1: Actions to make sites available to accommodate the Regional Housing Needs Assessment (RHNA)
A major part of meeting the housing needs of all segments of the community is the provision of adequate sites to facilitate the development of all types, sizes, and prices of housing throughout the city. People and households of different ages, types, incomes, and lifestyles have a variety of housing needs and preferences that evolve over time and in response to changing life circumstances. Providing an adequate and diverse supply of housing works to accommodate the housing needs of all residents. If existing land use regulations or other constraints are present that prevent a jurisdiction from reaching its RHNA mandates for each income level, the City must take action to address these constraints.

City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-3 Canyon Lake Housing Element (2021-2029)

2.2.1 Goals
▪ Accommodate meeting the housing needs of all income groups which were allocated to the City by the Southern California Association of Government’s 6
th Cycle Regional Housing Needs Assessment Final Allocation Plan.1 ▪ Facilitate the construction of the maximum feasible number of housing units for all income groups.

2.2.2 Policies
▪ The City shall designate sites that provide a variety of housing types. ▪ The City shall implement the Land Use Element, Housing Element, TCSP, and Zoning Ordinance updates to achieve adequate sites for extremely low-, very low-, low-, moderate-, and above moderate-income households.

2.2.3 Programs
Program 1.1: Annual Housing Element and Vacant Lot Reporting Program In compliance with Government Code Section 65400, each jurisdiction in California must submit an Annual Progress Report (APR) documenting progress in implementing its Housing Element. This report is due to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR) by April 1 of each year, covering the previous calendar year. The City will enhance the APR by reporting on vacant R-1 lots within city limits. To support this effort, the City will develop and maintain a comprehensive database of all vacant and available R-1 lots.

Objectives
Objective 1: Develop and publish an Annual Vacant Residential Lot Development Report.

Objective 2: Submit the APR to HCD and OPR by April 1 each year.

Responsible Agency
Planning Department and Building Department
Timeline
Objective 1: Complete and release the first Annual Vacant Residential Lot Development Report by April 2026.

Objective 2: Continue submitting the APR annually throughout the 8-Year Planning Period.

Funding Source
General Fund
Program 1.2a: Facilitate the full buildout of the TCSP to accommodate RHNA The City has analyzed potential development sites, as detailed in Appendix C, confirming sufficient capacity to accommodate housing across all income levels, aligned with the City’s RHNA allocation for 2021-2029. However, due to limited available parcels and a lack of vacant multi-family parcels, the TCSP plays a critical role in meeting lowerand moderate-income RHNA allocations. To support TCSP buildout, the City will actively engage developers, provide technical assistance for lot consolidation (see Program 1.3d), and complete steps for affordable housing 1 Southern California Association of Governments. 2021. 6th Cycle Regional Housing Needs Assessment Final Allocation Plan. https://scag.ca.gov/sites/main/files/file-attachments/6th_cycle_final_rhna_allocation_plan_070121.pdf?1646938785 (accessed November, 2023)
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2-4 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
development on City-owned property (see Program 1.2d). Development will be monitored to ensure compliance with SB 166 requirements (see Program 1.3).

Objective 1: Facilitate full buildout of the TCSP, ensuring projects achieve at least 30 dwelling units per acre and align with the California Low-Income Housing Tax Credit Program. Monitor and facilitate TCSP development to ensure at least 43 very low-income units, 24 low-income units, and 24 moderateincome units are completed by the end of the planning period.

Objective 2: Maintain and promote a Sites Inventory for developers through the following actions:
▪ Adopt additional incentives, such as amending or removing restrictive development standards. ▪ Develop a web-based Housing Development Toolkit with step-by-step guidance, incentives, and funding resources for affordable housing development.
▪ Launch an outreach program to local real estate brokers to promote TCSP development opportunities.
▪ Streamline the development process with a dedicated staff contact to assist developers through entitlement and permitting.
▪ Provide technical assistance to developers for accessing funding, utilizing density bonuses, and addressing infrastructure needs.

Objective 3: Relocate City operations from parcels in Planning Area 4 of the TCSP to enable residential development through the following actions:
▪ End the lease for APN 355-330-011 within 18 months of development application approval and secure new operational space.
▪ Dispose of City-owned parcels in compliance with the Surplus Land Act (see Program 1.2d).

Responsible Agency
Planning Department
Timeline
Objective 1: Create a full build-out program for the TCSP by June 2026. If residential development of the TCSP does not appear on track to meet the RHNA, meet with developers and/or add incentives (e.g., density bonus incentives beyond State law) to facilitate development by December 2026. If no residential development application is approved by June 2027, identify and rezone alternative sites by December 2027.

Objective 2: Adopt incentives for developers by August 2026. Publish web-based toolkit by September 2026. Email list of potential sites and information on technical assistance and incentives to developers and real estate brokers by December 2026 and establish an interest list. By June 2026, meet with the Southwest Riverside County Association of Realtors, developers, and nonprofit organizations that develop housing to discuss sites and incentives. Provide outreach to potential developers, real estate brokers, and property owners of the sites at least once every six months afterwards. Offer technical assistance throughout the development process.

Objective 3: Relocate City operations within 18 months of development approval for APN 355-330-011 and upon availability of new usable space upon which operations can be conducted. The timeline for disposition of City-owned sites is included in Program 1.2d.

Funding Source
General Fund
City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-5 Canyon Lake Housing Element (2021-2029)
Program 1.2b: Rezone and Lot Consolidation Program on Mixed-use Sites within the TCSP To address a substantial portion of the City’s RHNA allocation, the City rezoned sites within the TCSP in 2022. The City must amend the TCSP and zoning code to allow multifamily residential uses by-right, consistent with Government Code Sections 65583.2(h) and (i). Key features of these rezoned sites include:
▪ Density Requirements: All sites support a minimum density of 20 units per acre, with the capacity for at least 16 units per site.
▪ Mixed-Use Standards: Sites within the TCSP allow 100 percent residential use by-right and require residential uses to comprise at least 50 percent of the total floor area in mixed-use projects. ▪ By-Right Development: Multifamily residential developments in which at least 20 percent of units are affordable to lower-income households are permitted by-right. This means no conditional use permit, planned unit development permit, or other discretionary approval is required.

All rezoned sites are detailed in the Sites Inventory (Appendix C). To ensure compliance, the City will amend the zoning code and TCSP to explicitly allow owner-occupied and rental multifamily uses by-right for qualifying affordable developments. Additionally, at least 50 percent of the lower-income housing needs must be met on sites zoned for residential use only or on mixed-use sites that:
▪ Allow 100 percent residential use, and,
▪ Require residential uses to occupy at least 50 percent of the total floor area through a Memorandum of Understanding (MOU) or development agreement.

The Sites Inventory includes 13 parcels under 0.5 acre which are too small to accommodate lower-income units.

Once an application is submitted, the City will work with the developer to consolidate these small parcels with larger adjacent parcels to align with the proposed parcel layout of the TCSP buildings.

Objectives
Objective 1: Adopt the TCSP consistent with the requirements of Government Code section 65583.2(i) (completed). Amend the zoning code and TCSP for rezoned sites by December 2025.

Objective 2: Develop and adopt the findings of an affordable housing and lot consolidation incentives study with input from housing developers. Meet with at least three housing developers to receive input. Typical strategies include flexible development standards such as reduced or alternative parking arrangements.

Objective 3: Provide technical assistance to applicants receptive to lot consolidation to encourage housing development, with priority for developments that support lower- and moderate-income housing.

Offer interdepartmental pre-development consultation for multifamily housing developments with lot consolidation. When a development application is received, work with the developer to consolidate small lots within the TCSP to conform with the proposed parcel layout. The City will take the following actions to support lot consolidation and development of the 13 parcels under 0.5 acre in the Sites Inventory:
▪ Make the list of potential sites for lot consolidation available to interested developers. The list will be available online with information on parcel size, zoning, and existing uses. ▪ Facilitate communication between property owners and interested developers. ▪ Provide technical assistance to expedite the site acquisition, plan review, and entitlement process.

Responsible Agency
Planning Department
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2-6 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Timeline
Objective 1: Amend the zoning code by December 2025.

Objective 2: Meet with developers for input by June 2026. Complete study by December 2026 and adopt identified incentives by June 2027.

Objective 3: Provide technical assistance on an as-needed basis. Email a list of potential sites for consolidation and information on technical assistance and incentives to list of developers and real estate brokers by December 2026 (see Program 1.2a). Conduct outreach to interested parties of potential sites for consolidation by June 2026 to establish an interest list. By June 2026, meet with the Southwest Riverside County Association of Realtors and developers to discuss potential sites and incentives.

Provide outreach to developers, real estate brokers, and property owners at least once every six months afterwards. Consolidate lots as part of the Specific Plan development process by December 2027. Develop small lots by the end of the planning period.

Funding Source
Funding will be sourced from the General Fund and from additional State and Federal funding sources as they become available.

Program 1.2c: Displacement Prevention of Existing Businesses within the TCSP The TCSP will require building housing on the footprints of existing buildings which may contain businesses. This program is intended to mitigate the impact of TCSP buildout on existing businesses by requiring TCSP developer(s) to provide a displacement prevention plan as part of proposal and buildout.

Objectives
Objective 1: Conduct a survey of existing businesses to determine displacement risk of existing businesses.

Objective 2: Include a MOU for a business displacement prevention plan as part of the TCSP RFP is issued.

Objective 3: Monitor implementation of a business displacement prevention plan as the TCSP is built out.

Responsible Agency
Planning Department
Timeline
Objective 1: Complete survey before issuing an RFP.

Objective 2: During the issuing of the RFP.

Objective 3: Ongoing through the planning period.

Funding Source
General Fund
Program 1.2d: City-owned Sites/Surplus Land Act
The City shall maintain compliance with all requirements of the Surplus Land Act, Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5, including holding a public hearing designating the properties as “surplus properties” under California Law throughout the planning period.

The Sites Inventory identifies 76 units on four City-owned sites as capacity to meet the RHNA: APNs 355-330-034, 355-330-009, 355-330-011, and 355-330-029. The City intends to make these properties available through the City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-7 Canyon Lake Housing Element (2021-2029)
Surplus Land Act process by 2027. The City will declare the surplus property in accordance with State law. Following the declaration of surplus, the City must provide a Notice of Availability (NOA) to the eligible entities including HCD, any local public entity within the city, and developers who have notified HCD of their interest in developing affordable housing on surplus local land, for specified uses, including affordable housing, parks and recreation, and schools. An eligible entity desiring to purchase or lease the surplus land must notify the City in writing of its intent to purchase or lease the land within 60 days after receipt of the City’s notification of intent to dispose of the land. If the City receives notice of interest from any eligible entities, a 90-day negotiation period with any designated entities that submit timely offers. If no notice of interest is received or negotiations do not result in a disposition, the City may proceed with disposing of the land. State law requires that, at a minimum, any subsequent development of 10 or more residential units on the site must designate at least 15 percent of units as affordable. Following release of the NOA and 60-day noticing period, if no notice of interest is received or negotiations do not result in a disposition, the City may proceed with disposing of the land in accordance with the City’s disposition procedures and notice will be posted on the City’s website.

Objectives
Objective 1: Publish a list of publicly owned sites on the City’s website by January 2026. Prioritize releasing Surplus Lands Act-related documents for City-owned parcels. The City Council will make a declaration of surplus during a public hearing by June 2026.

Objective 2: Engage with local affordable housing developers to determine site constraints and potential policies to meaningfully incentivize affordable housing development on these sites. Discuss opportunities and potential incentives for affordable housing on the City-owned sites with at least three potential developers by June 2026. Adopt incentives for affordable housing on City-owned sites based on engagement with the development community by December 2026.

Objective 3: By December 2026, release an RFP to eligible entities. Specifically focus outreach and distribution to local affordable housing developers. Provide technical assistance to applicants on the RFP upon release. If no notice of interest is received or negotiations do not result in a disposition, conduct additional targeted outreach to housing developers by June 2027.

Objective 4: Select developer(s) by December 2027 and issue land use entitlements by July 2028 and building permits by December 2028. Provide technical assistance to developer(s) to achieve the development City-owned sites by the end of the planning period in accordance with state requirements and objectives of the TCSP.

Objective 5: If any of these sites are determined to be infeasible for residential development or unlikely to provide the assumed number of units, identify alternative sites to accommodate the shortfall by July 2028 and rezone (if necessary) by December 2028.

Responsible Agency
Planning Department
Timeline
Objective 1: Declare surplus properties and publish sites on the City’s website by January 2026.

Objective 2: Engage with developers by June 2026 and develop incentives December 2026.

Objective 3: Issue RFP by January 2027. If needed, conduct additional outreach by June 2027.

Objective 4: Select Developer(s) by December 2027. Issue land use entitlements by July 2028 and issue permits by December 2028.

Objective 5: Identify alternative sites by December and rezone, if necessary, by July 2028.

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2-8 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Funding Source
General Fund
Program 1.3: No-Net Loss Program
To ensure sufficient residential capacity is maintained to accommodate the RHNA for each income category, within one year of adoption of the Housing Element, develop and implement a formal, ongoing (project-by-project) evaluation procedure pursuant to Government Code section 65863. The evaluation procedure will track the number of extremely low-, very low-, low-, moderate-, and above moderate-income units constructed to calculate the remaining unmet RHNA by income group. The evaluation procedure will also track the number of units built on the identified sites to determine the remaining site capacity by income category and will be updated continuously as developments are approved. No action can be taken to reduce the density or capacity of a site (e.g., downzone, moratorium), unless other additional adequate sites are identified prior to reducing site density or capacity. If a development is being approved on an identified site at a lower density than what was assumed for that site identified in the Housing Element, additional adequate sites must be made available within 180 days of approving the development.

Objective
Objective 1: Develop and maintain a no-net loss evaluation procedure.

Responsible Agency
Planning Department and Building Department
Timeline
Objective 1: Within one year of adoption of the Housing Element, develop and implement a formal ongoing evaluation procedure pursuant to Government Code Section 65863.

Funding Source
General Fund

2.3 Category 2: Assist in the development of adequate housing for Special Needs and Low-Income households
The City of Canyon Lake is a diverse community with many residents who have special housing needs. State law requires the housing element to address the needs of specific “special needs” groups, including extremely lowincome residents, seniors, persons with disabilities, large families, female-headed households with children, and persons experiencing homelessness. The City will continue to monitor its policies, standards, and regulations to ensure that they comply with applicable laws pertaining to housing for special needs populations.

The City will also work with experienced nonprofits developing affordable special needs housing through aid, incentives, or concessions such as direct financial assistance (when available), density increases, or other financial, land or regulatory assistance that would result in enhancing development feasibility.

2.3.1 Goal
▪ Accommodate meeting the housing needs of special needs households living in Canyon Lake with financial resources available from the County Riverside (Housing Authority of the County of Riverside and County of Riverside Economic Development Agency).

City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-9 Canyon Lake Housing Element (2021-2029)
▪ Develop working relationships with experienced nonprofits developing affordable special needs.

2.3.2 Policies
▪ The City shall reduce barriers to housing development, especially the development of housing for special needs groups.
▪ The City shall assist special-need groups to achieve rental assistance through programs administered by the County of Riverside Housing Authority.
▪ The City shall facilitate the development of affordable housing. ▪ The City shall work cooperatively with non-profit and for-profit housing developers to secure financing for affordable housing.

2.3.3 Programs
Program 2.1: Section 8 Housing Choice Voucher (HCV) Program The Section 8 Housing Choice Voucher is administered by the Housing Authority of the County of Riverside. The program provides rental assistance to extremely low- and very low-income and special needs households. As of September 2021, the Housing Authority provided rental assistance to one household living in Canyon Lake. On average, one to three households received rental assistance in recent years.

The City will continue to support the Housing Authority’s applications to the U.S. Department of Housing and Urban Development (HUD) for additional funding and assist the Housing Authority in marketing the program to rental property owners.

Objective
Objective 1: Promote knowledge of Section 8 Housing Vouchers to tenants of Canyon Lake, individuals who work in the city but do not reside in the city, and residents in neighboring areas.

Objective 2: Promote knowledge of Section 8 Housing Vouchers to owners of rental properties in Canyon Lake.

Objective 3: Provide assistance to help at least five extremely low- and very low-income households achieve Section 8 housing vouchers during the planning period.

Objective 4: Work to achieve up to 10 properties in the city eligible for Section 8 Housing Vouchers by December 2029, with at least eight located in areas designated high resource by TCAC.

Responsible Agency
Housing Authority of the County of Riverside
Timeline
Objective 1: Post information on the basic practical details of the Section 8 Housing Voucher Program on the City’s website, post informational flyers at public locations (e.g., libraries, City Hall, and Property Owners Association (POA) in the city and in neighboring areas, and promote information on the City’s social media platforms by March 2026 and update annually thereafter.

Objective 2: Conduct a workshop with the Housing Authority to explain how the Section 8 Housing Voucher Program works for rental property owners by December 2026.

Objective 3: Provide assistance to at least five extremely low- and very low-income households by December 2029.

Objective 4: Provide assistance to at least five extremely low- and very low-income households by December 2029.

City Council Agenda,

2-10 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Funding Source
HUD Housing Choice Vouchers
Program 2.2: First Time Homebuyer Program
Canyon Lake is a Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) cooperating city with the County of Riverside. Through this cooperative effort, City residents and projects located in Canyon Lake are eligible to participate in three County funded programs including the First-Time Homebuyer Program, Mortgage Credit Certificate Program (reduced federal income tax liability) and the Neighborhood Stabilization Program (silent second mortgage purchase price assistance). The First Time Homebuyer (FTHB) Program provides down payment assistance up 20 percent of the purchase price (not to exceed $75,000).

The County’s 2019-2024 Consolidated Plan allocates $4,353,170 to the First Time Homebuyer Program.2 The funding amount is projected to assist 100 households over a five-year period. The funding amount may assist households living in the County territory and the cooperating cities. Therefore, the number of households that can be assisted in any one city is limited.

Objective
Objective 1: Promote knowledge of First Time Homebuyer Assistance to residents of Canyon Lake in English and Spanish. Distribute bilingual materials to the POA office and to regional advocacy groups. Promote program to employees who work in the city but do not currently reside in the city.

Objective 2: Facilitate First Time Homebuyer Assistance to five buyers purchasing homes in Canyon Lake by promoting Riverside County’s Mortgage Credit Certificate (MCC) Program and other public funding opportunities such as CAL HOME, with the goal of assisting at least two homebuyers who are employed in the city but do not currently reside in the city.

Responsible Agency
County of Riverside Economic Development Agency, Planning Department, and Building Department Timeline
Objective 1: Post information on the program on its website annually throughout the planning period. Annually conduct a FTHB Workshop hosted by the City and Fair Housing Council of Riverside County (FHCRC).

Objective 2: Assist at least five homebuyers obtain funding during the planning period.

Funding Source
County of Riverside HUD CDBG/HOME Funds.

Program 2.3: Lower-Income and Special Needs Housing Incentives Program The City will encourage and support the development of housing that meets the needs of lower-income and extremely low-income households, seniors, and persons with disabilities, including developmental disabilities. The City will also support services that meet the needs of City residents, especially extremely low-income households and special housing needs populations, that support mobility options and housing choices. 2 Riverside County Economic Development Agency. 2023. 2022-2023 Consolidated Annual Performance and Evaluation Report (CAPER). https://rivcoeda.org/Portals/0/CDBG/PlansAndReports/FINAL_CAPER_9_28_2023.pdf?ver=2023-10-02-160301-047 (accessed November, 2023)
City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-11 Canyon Lake Housing Element (2021-2029)
Objective
Objective 1: Conduct outreach and coordination with affordable and special needs housing developers to determine best practices and procedures for accommodating lower-income, extremely low-income, and special needs housing development such as fee waiver or deferral.

Objective 2: Assist affordable housing developers by providing site information and assisting in the entitlement processes.

Objective 3: Adopt priority processing procedures and incentives (e.g. permit streamlining for projects with an affordability component) for housing developments which designate at least 10 percent of their units for extremely low-income households or 15 percent of their units for low-income households. In connection with Objective 1, coordinate with affordable and special needs housing developers to determine fee waivers/deferrals to facilitate and encourage the development of lower-income housing and special needs housing.

Objective 4: In connection with Objective 1, coordinate with affordable and special needs housing developers to identify development standards that present obstacles to the development of lower-income and special needs housing. Modify development standards accordingly.

Objective 5: Encourage use of State density bonus provisions through technical assistance and information dissemination.

Objective 6: Promote awareness of Riverside County’s Continuum of Care services by adding relevant material to the City website, print materials at City Hall, and conducting workshops with the public in English and Spanish. Distribute bilingual materials to the POA office and to regional advocacy groups.

Objective 7: Promote shared housing programs such as Affordable Living for the Aging (ALA), with the goal of connecting at least ten senior homeowners with housemates seeking discounted rent in exchange for providing support to senior homeowners during the planning period. Post information on shared housing programs on the City’s website by June 2025 and invite the ALA and/or similar organizations to attend a workshop on senior resources.

Responsible Agency
Planning Department
Timeline
Objective 1: Annually: Hold at least one conference between City leadership and relevant housing developers to discuss:
▪ Best practices and procedures for accommodating lower-income housing, extremely low-income housing, and special needs housing development.
▪ Changes to the Sites Inventory.
▪ Other opportunities for development.

Objective 2: Annually: Make the Sites Inventory available online; refresh at least once per year.

Objective 3: Adopt priority processing procedures by June 2026. Determine appropriate fee waivers/deferrals by the December 2026 and adopt by June 2027.

Objective 4: Identify obstacles by June 2026 and modify constraining development standards by December 2026.

Objective 5: Complete by December 2025: Add an informational webpage to the City website on State Density Bonuses. Ongoing: Ensure City planning staff are informed on changes to State legislation related to lower-income housing, extremely low-income housing, and special needs housing development.

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2-12 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Objective 6: Complete initial workshop and add relevant information to the City website, City Hall, POA, and regional advocacy groups by December 2025. Conduct subsequent workshops annually.

Objective 7: Provide information on shared housing programs throughout the planning period. Post information on shared housing programs on the City’s website by June 2026. Invite ALA and/or similar organizations to resource fairs and/or in conjunction with other communitywide events.

Funding Source
General Fund
Program 2.4: ADU Incentives Plan
The City adopted an ADU Ordinance in March 2020.
3 To support and encourage the production of ADUs, the City will develop handouts, frequently asked questions, brochures, and checklists to educate property owners regarding strategies to reduce construction costs. The City will also adopt a program that incentivizes and promotes the creation of ADUs that can be offered at an affordable rent for very low-, low-, or moderate-income households. In addition, the City will clarify the ADU permitting process by developing an application checklist and posting to the City’s website. The City will also develop materials for use by city residents to find lower-income tenants for their ADUs, which will be provided by the City to ADU applicants upon application for a building permit or ADU permit.

These affirmative marketing materials will include contact information for housing service providers and non-profit housing organizations that serve lower-income tenants in the surrounding region. Interested residents can use these materials to find prospective tenants in the larger southern Riverside County market area, including residents of all races, ethnicities, ages, and abilities.

Objectives
Objective 1: Post on the City’s website examples of design features and methods to construct attached ADUs, examples of small ADUs (<500 square feet), and strategies on how to reduce ADU construction costs including information about outside funding sources.

Objective 2: Provide interested parties with a brochure and/or online material describing ADU opportunities and the permitting and development process, including an application checklist. Disseminate information through the POA, City website, and mail.

Objective 3: Offer free consultation meetings with planning staff for property owners interested in developing ADUs. Conduct at least three consultation meetings per year with interested parties.

Objective 4: Research and promote awareness of available fee waivers and reductions from City, school district and special district fees. Promote the use of HCVs or development of cost incentive programs and prioritize promotion in areas designated as high-resource by TCAC. Implement a Pilot Program with the goal of assisting at least four income-restricted ADUs by the end of the planning period. Develop affirmative marketing materials for property owners to locate lower-income tenants.

Objective 5: Inform property owners and ADU permit applicants of the Section 8 Housing Choice Voucher Program and County of Riverside Housing Authority contacts.

Objective 6: Adopt pre-approved ADU plans.

Objective 7: Ensure all areas of the city have adequate infrastructure to support existing and proposed ADU development. Coordinate with City Staff to review the City’s Capital Improvement Projects (CIP) and other agencies providing infrastructure and utility services to ensure public facilities and infrastructure are supportive of the needs of ADU development. Prioritize areas of the city designated as highresource areas by TCAC. 3 City of Canyon Lake Municipal Code. Chapter 9.32: Accessory Dwelling Units. https://codelibrary.amlegal.com/codes/canyonlakeca/latest/canyonlake_ca/0-0-0-27065 (accessed November, 2023).

City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-13 Canyon Lake Housing Element (2021-2029)
Objective 8: Adopt an ordinance, consistent with SB 9, for new development standards to allow an additional primary unit and additional ADUs that meet basic setbacks and square footage requirements on properties in the R-1, ER-1, and ER-2 zoning districts. The ordinance shall allow additional units on qualifying properties if such properties can be safely accommodated (e.g., that the properties have adequate sewer/septic and water capacity, can construct in compliance with all building code and fire prevention requirements, and can meet parking requirements).

Objective 9: Develop a database to track all permitted ADUs in the city. Require all newly permitted ADUs to be registered at the time of permit issuance and incentivize pre-existing ADUs to register by incentivizing compliance with fee waivers or streamlined inspections. Permit at least 8 very low-, low, and/or moderate-income units in High Resource areas during the planning period.

Objective 10: Prepare a survey to assess the utilization, effectiveness, and challenges of ADUs as housing units in the city. Send surveys to all registered ADU owners via mail, email, or an online platform. If necessary, based on the results of the survey, provide additional incentives to increase the effectiveness of ADUs.

Responsible Agency
Planning Department and Building Department
Timeline
Objective 1-3: Complete all objectives June 2026.

Objective 4: Prepare a report on potential strategies and apply for potential funding sources to implement ADU affordability program June 2026. Implement pilot program and develop affirmative marketing materials by December 2026.

Objective 5: Ongoing.

Objective 6: Complete by end of 2026.

Objective 7: Meet annually with appropriate individuals and groups with the first meeting by December 2025.

Objective 8: Adopt ordinance by June 2026.

Objective 9: Develop ADU database and incentive pre-existing ADUs to register by December 2025. Register new ADUs upon permit issuance.

Objective 10: Develop the ADU survey by June 2026 and distribute annually. If necessary, implement additional incentives six months after receiving survey results.

Funding Source
General Fund
Program 2.5: Area Agency on Aging Outreach Program
The Riverside County Office on Aging (OOA) is authorized by the Older Americans Act and the Older Californians Act to serve as the local Area Agency on Aging for Riverside County. OOA is charged with developing a system of care that offers safety net services for vulnerable older persons and adults with disabilities.

The City will reach out to the Area Agency on Aging to assist toward achievement of the following Area Plan on Aging.

Objectives
Objective 1: Participate in the Needs Assessment, Community Surveys, and Planning Workshop conducted by the Area Agency on Aging as needed.

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2-14 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Objective 2: Provide emergency assistance in the form of housing, rental, utility, transportation, home repairs and modifications, falls prevention, and mobility management assistance.

Objective 3: Conduct workshops to educate the local community about resources for Seniors.

Responsible Agency
Planning Department
Timeline
Objective 1: Ongoing as needed.

Objective 2: Emergency services will be provided on an on-going basis.

Objective 3: Conduct an initial workshop on resources for Canyon Lake Seniors in 2025. Conduct additional workshops annually.

Funding Source
General Fund
Program 2.6: Inland Regional Center Outreach Program
Objective
Objective 1: Continue to reach out to the Inland Regional Center to obtain the most recent information on:
▪ Description of common services (e.g., adult day programs, housing support services, etc.); ▪ Living options (brochures in English and Spanish); and ▪ Transition fact sheets describing the transition from adolescence to adulthood (in both English and Spanish).

Objective 2: Work with the Inland Regional Center to obtain the most current and relevant data on the types of housing occupied by Canyon Lake’s developmentally disabled youth and adults (e.g., home of parent, foster/family home, etc.)
Responsible Agency
Planning Department
Timeline
Objective 1: Ongoing. Post information on the City’s website as needed.

Objective 2: Ongoing. Participate in the Needs Assessment, Community Surveys, and Planning Workshops conducted by the Inland Regional Center as needed.

Funding Source
General Fund
City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-15 Canyon Lake Housing Element (2021-2029)
Program 2.7: Density Bonus Ordinance
The purpose of this program is to implement State law to provide affordable housing by providing concessions for new development through the reduction of various development standards. The 5th Cycle Housing Element provided for adoption of the Density Bonus Program.

Objective
Objective 1: Conduct and present research on best practices for Density Bonus Ordinances (DBOs) in cities comparable to Canyon Lake.

Objective 2: Draft a DBO.

Objective 3: Adopt a DBO.

Responsible Agency
Planning Department
Timeline
Objective 1: Complete and present by December 2025.

Objective 2: Draft by June 2026.

Objective 3: Adopt by December 2025.

Funding Source
General Fund

2.4 Program Category 3: Address and remove governmental and nongovernmental housing constraints
The City must regularly evaluate and update its development review and permitting policies, standards, and practices in response to State and federal laws intended to facilitate residential development. The City also takes into consideration the needs and desires of the community as it undertakes such policy updates.

The City also continues to improve the efficiency of the development review process. As a response to the State housing crisis, Senate Bill 35 (SB 35; 2017-Wiener) made changes to Housing Element law to limit local discretion for qualified housing projects. The City continues to take steps to reduce identified constraints to housing production and make housing developments more financially feasible.

2.4.1 Goals
▪ Remove existing governmental constraints to the maintenance, preservation, improvement and development of housing.
▪ Remove existing and, where appropriate and legally possible, future governmental constraints that may hinder addressing the housing needs of disabled persons.

2.4.2 Policies
▪ The City shall prepare Zoning Ordinance development standards and requirements that address the housing needs of special populations such as disabled persons.
▪ The City shall permit reduced parking standards based on the results of a parking study correlating the need for parking to the housing unit/bedroom mix of the proposed project.

City Council Agenda,

2-16 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)

2.4.3 Housing Programs
Program 3.1: Zoning Ordinance Amendments
A number of Zoning Ordinance Amendments are required to comply with recently updated State regulations. This program will implement these changes.

Objective
Objective 1: Adopt applicable Zoning Ordinance amendments pertaining to emergency shelters, pursuant to AB 139/Government Code section 65583, subdivision (a)(4)(A). Increase the number of allowed beds at emergency shelters from 10 to 20.

Objective 2: Adopt applicable Zoning Ordinance amendments pertaining to low barrier navigation centers, pursuant to Government Code section 65660.

Objective 3: Adopt applicable Zoning Ordinance amendments pertaining to permanent supportive housing, pursuant to Government Code section 65651.

Objective 4: Adopt applicable Zoning Ordinance amendments pertaining to single-room occupancy units (SROs), pursuant to Government Code sections 65583 and 65583.2.

Objective 5: Adopt applicable Zoning Ordinance amendments pertaining to employee housing, pursuant to the Employee Housing Act (Health and Safety Code, § 17000 et seq.), specifically, sections 17021.5 and 17021.6.

Objective 6: Adopt applicable Zoning Ordinance amendments pertaining to accessory dwelling units (ADUs).

Objective 7: Adopt applicable Zoning Ordinance amendments pertaining to large family daycare homes, pursuant to Assembly Bill 234.

Responsible Agency
Planning Department
Timeline
Objectives 1-7: Complete all Zoning Ordinance Amendments by December 2026.

Funding Source
General Fund and Local Early Action Planning (LEAP) Grant Program 3.2: Reasonable Accommodation Procedure
Various federal laws require housing providers to make reasonable accommodations and reasonable modifications for individuals with disabilities.4Federal nondiscrimination laws that protect against disability discrimination cover not only tenants and home seekers with disabilities, but also buyers and renters without disabilities who live or are associated with individuals with disabilities. These laws also prohibit housing providers from refusing residency to persons with disabilities, or placing conditions on their residency, because they require reasonable accommodations or modifications.

The City has prepared an application and brochure describing the Reasonable Accommodation Procedure. The application and brochure are available at the Planning Department and Building Department counters. To increase community awareness, the brochure/application will be posted on the City’s website. 4 U.S. Department of Housing and Urban Development. “Reasonable Accommodations and Modifications.” HUD.gov, accessed November 30, 2023. https://www.hud.gov/program_offices/fair_housing_equal_opp/reasonable_accommodations_and_modifications.

City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-17 Canyon Lake Housing Element (2021-2029)
Objective
Objective 1: Make materials regarding reasonable accommodation procedure, reasonable modifications, and service and companion animals available at City Hall and on the City’s website.

Objective 2: Conduct biannual community workshops to educate the public about reasonable accommodation procedure, reasonable modifications, and service and companion animals.

Responsible Agency
Planning Department and Building Department
Timeline
Objective 1: Post the brochure and application and additional relevant information on the City’s website by December 2025.

Objective 2: Conduct initial community workshop by December 2025; continue to conduct workshops biannually.

Funding Source
General Fund
Program 3.3: SB 35 Streamlining Information
SB 35 requires cities and counties to streamline review and approval of eligible affordable housing projects by providing a ministerial approval process, exempting such projects from environmental review under the California Environmental Quality Act (CEQA). The City has not received any SB 35 development applications or inquiries. To accommodate any future SB 35 applications or inquiries, the City will create and make available to interested parties an informational packet that explains the SB 35 streamlining provisions in Canyon Lake and provides SB 35 eligibility information.

Objective
Objective 1: Compile relevant SB 35 information and create both a print and a virtual information packet; Post this information on the City website.

Objective 2: Draft and adopt an amendment to the Zoning Ordinance to implement SB 35 streamlining processes.

Responsible Agency
Planning Department
Timeline
Objective 1: Post information packet on City website by December 2025.

Objective 2: Adopt by June 2026.

Funding Source
General Fund
Program 3.4: Support the Development of a Variety of Housing Types Providing development opportunities for a variety of housing types promotes diversity in housing price, style, and size, and contributes to neighborhood stability by offering more affordable and move-up homes and accommodating a diverse income mix. The City will also support housing for the “missing middle”—households that earn too much annual income to qualify for traditional affordable housing, but not enough to afford market-rate rents. The City will City Council Agenda,

2-18 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
review applicable plans and the City’s Zoning Code to support the development of housing types at higher densities in lower-density neighborhoods.

Objective 1: Review the General Plan, applicable Specific Plans, and Zoning Code and Zoning Map to evaluate opportunities for removing barriers to housing production such as adding housing capacity and accommodating a greater mix of dwelling types and sizes, prioritizing areas designated as high resource by TCAC. Recommend amendments, as necessary, to accommodate added housing capacity in these areas. Additionally, review the Zoning Code to identify opportunities to increase and encourage a greater mix of dwelling types and sizes, specifically housing types that may accommodate moderate-income households (e.g., ADUs, duplexes, triplexes, fourplexes, townhouses, courtyard buildings), in low-density residential areas and mixed-use zones citywide. The City will develop a report identifying strategies to be implemented by the City to encourage and facilitate missing-middle housing. Develop at least 8 units of missing middle housing types in high resource areas by the end of the planning period.

Objective 2: Through the State Notice of Funds Available (NOFA), apply for grantsfor projects offering diverse types of housing (e.g. ADUs, senior housing, live-work units), particularly those targeting low- and moderateincome households. Assist at least five applicable projects during the planning period.

Responsible Agency
Planning Department
Timeline
Objective 1: Review the General Plan, applicable Specific Plan, and Zoning Code and Zoning Map by December 2025 and implement Develop a report of missing middle housing strategies and present to City leadership for adoption by March 2026. Adopt amendments to the zoning code to implement changes by June 2026.

Objective 2: Pursue funding annually as part of the State NOFA process. Consider funding mechanisms on a projectby-project basis.

Funding Source
General Fund

2.5 Program Category 4: Conserve and improve the condition of the existing stock
The city’s existing housing stock is a valuable asset to the community. There is a need to maintain and improve the quality of existing market rate and deed-restricted subsidized affordable housing. While the age of housing, by itself, does not necessarily equate with poor housing conditions, there is greater potential for housing problems in older structures. Supporting the maintenance and preservation of the existing housing stock stabilizes neighborhoods and protects against displacement, particularly for low-income residents.

Government Code Section 65583(c)(4) states that a housing element shall describe actions to conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action.

2.5.1 Goals
▪ Conserve and improve the condition of Canyon Lake’s existing housing stock.

City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-19 Canyon Lake Housing Element (2021-2029)

2.5.2 Policies
▪ The City shall enforce adopted code requirements that set forth acceptable health and safety standards for the occupancy of existing housing.
▪ The City shall continue to provide information on the County’s rehabilitation programs regarding financial assistance to repair and improve homes.

Program 4.1: Housing Code Enforcement
To ensure the quality of the City’s housing stock, the City will continue to enforce its health and safety code.

Objective
Objective 1: The City will continue providing ongoing inspection services to review and enforce code violations.

Responsible Agency
Code Compliance Department
Timeline
Objective 1: Implementation will occur as needed throughout the 8-year planning period Funding Source
General Fund
Program 4.2: Homeowner Housing Rehabilitation Program
The City is a cooperating city in the County of Riverside Urban County CDBG Program. The County’s 2019-2024 Consolidated Plan allocates $4,235,710 to the Homeowner Housing Rehabilitation Program. The 5-year goal is the rehabilitation of 125 owner-occupied housing units. Canyon Lake homeowners may apply for the financial assistance provided by this program. County staff has indicated that there have been very few applications from Canyon Lake residents in the past five years. The City will continue to cooperate with the County of Riverside in the implementation of home repair and rehabilitation programs. The City will post information on its website describing the County program and encouraging eligible homeowners to submit an application.

Objective
Objective 1: Rehabilitate five homes through the County’s program during the planning period.

Responsible Agency
Planning Department
Timeline
Objective 1: Complete by December 2029.

Funding Source
County CDBG funds
City Council Agenda,

2-20 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)

2.6 Program Category 5: Promote and affirmatively further housing opportunities for all persons
Section 65583(c)(5) requires that the housing element promotes and affirmatively furthers fair housing (AFFH) opportunities throughout the community for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by State and Federal law.

Appendix B summarizes the fair housing issues and concerns in Canyon Lake. It includes a demographic summary of fair housing protected classes in Canyon Lake; analysis of fair housing issues; description of factors contributing to fair housing issues; and a fair housing action plan encompassing priorities, goals, and strategies.

Programs under this goal are designed to affirmatively reduce barriers to housing and increase equitable conditions across neighborhoods, addressing issues such as historic and existing racial and economic inequities, housing mobility and access, community investment and engagement, and environmental health.

2.6.1 Goals
▪ Promote equal housing opportunity in the City’s housing market for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by State and Federal law.
▪ Collect and maintain relevant data on fair housing issues in Canyon Lake. ▪ Join and participate in relevant AFFH related organizations.

2.6.2 Policies
▪ The City shall consistently enforce fair housing laws. ▪ The City shall develop and implement policies to affirmatively further fair housing. ▪ The City shall ensure meaningful consultation with California Native American tribes.

Program 5.1: AFFH Outreach Program
The City will outreach related to affirmatively further fair housing through the meaningful actions described in this program.

Objectives
The outreach efforts shall include the following:

Objective 1: Conduct annual meetings with the following agencies to discuss and determine best practices for AFFH within Canyon Lake:
▪ Fair Housing Council of Riverside County, Inc. (FHCRC) ▪ California Department of Fair Employment and Housing (DFEH) ▪ U.S. Department of Housing and Urban Development (HUD) ▪ Community Access Center
▪ Elsinore Valley Municipal Water District (EVMWD)
Objective 2: Conduct at least one AFFH Community Outreach event per year within Canyon Lake to provide residents of Canyon Lake a summary of fair housing issues within the City and to provide residents information on fair housing resources including where and how to report violations of fair housing laws.

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Section II – Housing Element Summary and Housing Programs 2-21 Canyon Lake Housing Element (2021-2029)
Objective 3: Create a fair housing resources page on the Canyon Lake website which provides information on fair housing resources including where and how to report violations of fair housing laws.

Objective 4: Join the FHCRC as a public agency and promote relevant events to residents of Canyon Lake on the City website and social media.

Objective 5: In collaboration with the EVMWD, communicate with property owners of hazardous waste sites and solid waste facilities to ensure the safety and health of residents. Host an annual workshop to educate residents on water quality in the community.

Objective 6: In accordance with Senate Bill 18 and Assembly Bill 52, ensure meaningful consultation with California Native American tribes during the preparation, adoption, and implementation of the Housing Element and other land use planning activities that are encompassed within this legislation.

Responsible Agency
Planning Department
Timeline
Objective 1: Complete initial round of meetings by December 2025; conduct follow-up meetings annually.

Objective 2: Complete initial outreach event by December 2025; conduct additional outreach events annually.

Objective 3: Complete by December 2025; update as needed.

Objective 4: Join by December 2025; conduct community outreach as needed.

Objective 5: Complete initial meeting, outreach to property owners, and host a workshop by December; conduct follow up meetings annually.

Objective 6: Ongoing on a project-by-project basis.

Funding Source
▪ General Fund
▪ County CDBG funds
Program 5.2: Fair Housing Services Program
The City of Canyon Lake will take affirmative steps to promote fair housing practices by working with the Fair Housing Council of Riverside County, Inc. to provide applicable services for residents.

Objectives
Objective 1: Continue to refer cases and questions to the FHCRC for enforcement of prohibitions on discrimination in lending practices and in the sale or rental of housing.

Objective 2: Make fair housing information available at City Hall, Chamber of Commerce, Senior Center, and the Public Library. The information will include brochures and other written information that will be obtained from the FHCRC. In addition, the City will make information available on its Website and provide links to additional resources.

Objective 3: Obtain training and education on fair housing issues for the benefit of City staff.

Objective 4: Work with the Fair Housing Council of Riverside County, Inc. to ensure that female householders are free from housing discrimination on the basis of sex and familial status.

Objective 5: Post on the City’s website information on availability and location of childcare services.

Objective 6: Work with the FHCRC to schedule Fair Housing Workshops.

City Council Agenda,

2-22 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Responsible Agency
Planning Department
Timeline
Objective 1: Ongoing
Objective 2: Publicly post fair housing resources within six months of adoption of the Housing Element.

Objective 3: Research and conduct initial City staff training by December 2026, annually through the remainder of the planning period.

Objective 4: Ongoing
Objective 5: Complete by December 2025.

Objective 6: Schedule and complete an initial Fair Housing Workshop by December 2025. Conduct additional workshops annually.

Funding Source
General Fund and/or County CDBG funds
Program 5.3: Affirmative Fair Housing (AFHM) Marketing Plan A key purpose of the AFFH is to create inclusive communities. An associated objective is to remove barriers to buying or renting housing based on these characteristics.

To achieve these purposes the City shall require the developers of mixed-use developments in the TCSP to prepare and implement an Affirmative Fair Housing Marketing Plan to ensure that future units are marketed to attract occupants who are demographically diverse, including lower-income households in other areas of Riverside County.

The Affirmative Fair Housing Marketing Plan will consist of the following:
▪ Property location
▪ Demographics of the market area
▪ Identification of populations groups interested but least likely to buy or rent at the property location. ▪ Develop outreach efforts to the targeted population groups. ▪ Develop targeted advertising to the population groups. ▪ Obtain input and evaluation of the Marketing Plan from the FHCRC.

Objective
Objective 1: Complete an Affirmative Fair Housing (AFHM) Marketing Plan for the TCSP, with a goal of at least 50 percent of future TCSP affordable housing occupants migrating to the area from outside Canyon Lake.

Responsible Agency
Planning Department, FHCRC, affordable housing developers Timeline
Objective 1: Complete the Plan requirements by December 2028 upon buildout of the TCSP.

Funding Source
General Fund and/or County CDBG funds
City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-23 Canyon Lake Housing Element (2021-2029)
Program 5.4: Displacement Risk Program
In the past few decades, Canyon Lake has experienced slow new housing construction compared to surrounding cities and Riverside County as a whole. This can lead to displacement, particularly for low- and moderate-income households. Although there are significant factors outside of the City’s control that affect the housing market and cost of construction, the City will do its part to make it easier for different types of housing to be built at a variety of affordability levels to serve the needs of current and future residents.

The City will work with the Housing Authority of the County of Riverside and local non-profit to make available – when needed – financial resources such to prevent householders from being displaced from their Canyon Lake housing.

Objective
Objective 1: Network with the Housing Authority of the County of Riverside, fair housing service providers, service providers, and community organizations to discuss best practices for preventing displacement within Canyon Lake. Present this information to City leadership.

Objective 2: Draft and implement a Displacement Risk Program to prevent displacement of city residents, prioritizing low- and moderate-income renters and residents with special housing needs living within the TCSP. Depending on the input received, the Displacement Risk Program may include the development of an emergency tenant assistance fund, property owner/manager and tenant education program, and/or additional City administrative support for resident referrals to affordable housing. The Displacement Risk Program may include, but is not limited to, the following potential efforts:
▪ Production: Increase multifamily residential and mixed-use opportunities throughout the city beyond the City’s RHNA allocation.
▪ Preservation: Establish partnership with the Housing Authority to support acquisition of affordable units at-risk of conversion to market rate; identify a code enforcement specialist on staff that can provide technical assistance and information to property owners of lower income units to address code enforcement issues; seek funding to support rehabilitation of substandard multifamily units; restrict conversion of existing units occupied by lower-income households to short term rentals; require replacement of all lower income units lost due to redevelopment. ▪ Protect Current Residents through Engagement: Develop an engagement strategy and work with a fair housing provider to disseminate information on tenant protections (especially source of income, and State rent stabilization and just cause eviction regulations) and available resources.

Work to reduce/avoid displacement of local businesses during redevelopment; establish a single point of contact for technical/relocation assistance for business owners.

Objective 3: Create a registry of affordable units (e.g. deed restrictions, development agreements, or other affordability mechanisms as applicable) available citywide and posting on the City’s website. Inform residents of online registry during targeted outreach events.

Responsible Agency
Planning Department, FHCRC, affordable housing developers Timeline
Objective 1: Complete by December 2025.

Objective 2: Prepare the displacement risk program and engagement strategy by the June 2026 and adopt and implement a program by December 2026.

Objective 3: Post the registry of affordable units on City’s website by June 2025.

City Council Agenda,

2-24 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Funding Source
General Fund and/ other funding sources that may become available.

Program 5.5: Transit Expansion Program
Reliable public transit access and active transportation options (walking and biking) are imperative for lower-income residents and/or persons with disabilities to connect to employment opportunities. Access to employment via public transit and active transportation can reduce income burden and increase housing mobility, which enables residents to find housing in more areas. Lack of transportation options can impede fair housing choice and continue to reinforce barriers for low-income residents in accessing opportunities.

Transit access in Canyon Lake is very limited. The City of Canyon Lake does not have its own transit system and Riverside County Transportation Authority operates only one line which provides service to the commercial area outside the gated portion of the community. To expand transportation opportunities within Canyon Lake, the City will collaborate with the Riverside Transit Agency to prepare a study on transit and active transportation needs for Canyon Lake residents and identify actions to address those needs, focusing on connecting residents to job centers.

Objective
Objective 1: Evaluate transit needs as part of a transit and active transportation needs study and identify actions to address identified needs, specifically to address the transportation needs of elderly and disabled residents.

Objective 2: Schedule and complete a meeting with the Riverside County Transportation Authority to discuss options for expanding transit in Canyon Lake. Complete meeting with at least three suggested transit solutions to at least double the level of transit service in Canyon Lake and address transportation needs for elderly and disabled residents. Solutions could include increase paratransit services, fixedroute transit stops, reduced-fare programs for seniors and disabled individuals, community shuttle program specifically for elderly and disabled populations.

Objective 3: Present these three suggested transit solutions to City leadership, employees of city businesses, and residents via a public workshop.

Objective 4: Apply for grants under programs like the Federal Transit Administration’s Enhanced Mobility of Seniors and Individuals with Disabilities program to fund transit improvements.

Responsible Agency
Planning Department
Timeline
Objective 1: Complete by January 2026.

Objective 2: Complete by June 2026.

Objective 3: By December 2026.

Objective 4: Appy for grants annually as funds become available.

Funding Source
General Fund
Program 5.6: Equitable Quality of Life Program
Due to limited capacity of the gated portion of the community to accommodate lower-income housing, the entirety of income-restricted RHNA requirements is planned to be accommodated at the TCSP. While all these sites are City Council Agenda,

Section II – Housing Element Summary and Housing Programs 2-25 Canyon Lake Housing Element (2021-2029)
located within a high opportunity census tract, the concentration of all lower-income units within one census tract could potentially exacerbate fair housing conditions. To ensure that the location of these sites does not further segregation or result in substandard living conditions for occupants of income-restricted units, the City will implement programs to promote equitable quality of life throughout the city.

Objective
Objective 1: At the time of issuing an RFP for build out of the TCSP as required in Program 1.2a, include a requirement for a residential displacement prevention plan as part of the TCSP that includes multilingual outreach and information on tenant rights and responsibilities, access to fair housing services, and right to counsel. Ensure that residents of the TCSP are informed of any City measures developed from the Displacement Risk Program (Program 5.4 above).

Objective 2: Monitor implementation of the residential displacement prevention plan as the TCSP is built out with a report on outreach efforts and resident survey conducted by a fair housing provider conducted at least every two years.

Objective 3: Implement place-based community revitalization strategies: At the time of the issuing an RFP for build out of the TCSP as required in Program 1.2c, include a requirement as part of the development agreement to implement at least one place-based community revitalization program that will: (a) encourage economic and community development within the TCSP, (b) facilitate equitable quality of life for residents of income-restricted units.

Objective 4: Monitor implementation of the place-based community revitalization strategies.

Objective 5: Implement community improvement projects within the TCSP to ensure equity in development of public amenities and placemaking projects and events, including:
▪ Prioritize capital improvement projects, that could include various actions that would further benefit future residents, such as one new neighborhood park, social service facilities, or public transit or active transportation amenities, in the TCSP. Identify specific improvements December 2026 in alignment with development of the TCSP Specific Plan and release of the RFP. ▪ Budget for and implement plans and strategies prioritizing areas designated for lower-income and mixed-income housing opportunities in the sites inventory. By December 2025, identify and prioritize plans and strategies to assist future households in the TCSP, including but not limited to, school transportation, workforce development, childcare centers, and public transit connections, and create a list of partner agencies and interested parties. By December 2026, identify potential private investment incentives; public/private partnerships; and/or federal, state, and philanthropic grant funds for identified plans. Apply for potential funds within six months after issuing an RFP for build out of the TCSP. By the following fiscal year, secure funding for at least two plans or strategies.
▪ Upon development of the TCSP with residential units, organize a TCSP resident association to identify and prioritize additional placemaking projects, events, and plans and work with the City to identify potential funding and management.
▪ Prepare a report that identifies and summarizes community improvement projects.

Responsible Agency
Planning Department
Timeline
Objective 1: During the issuing of the RFP and ongoing implementation thereafter.

Objective 2: Two years after buildout of the TCSP and ongoing thereafter.

Objective 3: During the issuing of the RFP.

City Council Agenda,

2-26 Section II – Housing Element Summary and Housing Programs Canyon Lake Housing Element (2021-2029)
Objective 4: Ongoing
Objective 5: Complete first annual report by the end of the year following execution of a contract from the RFP and annually thereafter. Complete at least two of the identified projects within the planning period.

Funding Source
General Fund and/or other funding sources that may become available.

2.7 Quantified Objectives
California Housing Element Law requires jurisdictions to estimate the number of units achieved for maintenance, preservation, and construction of housing over the eight-year planning period. The City has two sets of numerical housing goals included in the Housing Element: the City’s share of the RHNA (with adequate buffer) and the Quantified Objectives for Affordable Housing Production. The analysis of adequacy of available land resources to meet the RHNA is provided in Appendix C.

The second set of numerical goals is quantified objectives for the creation of affordable housing opportunities and the provision of other housing assistance. These quantified objectives are based on the goals, policies, and programs described in this section. The quantified objectives set a target goal for the City based on needs, resources, and constraints.

Table 2-2 shows quantified objectives for construction, rehabilitation, and conservation/preservation of housing for the current housing cycle.

Table 2-2 Quantified Objectives
Category Extremely Low Very Low Low Moderate Above Moderate Total Construction 21 22 24 24 38 129
Rehabilitation 1 2 87 85 86 109
Conservation/
Preservation
3 2 0 0 0 5
The construction objective of 129 units is based on the following:
▪ 67 lower-income housing units. In 2020, the average size of a project awarded low-income housing tax credits was 67 housing units.
▪ At least the RHNA allocation of 24 moderate income housing units. ▪ At least the RHNA allocation of 38 above moderate-income housing units.

The rehabilitation objective of 109 units is based on the following:
▪ Rehabilitation of one extremely low-income unit, two very low-income units, and two low-income units funded through the Riverside County Homeowner Housing Rehabilitation Program. ▪ The Home Mortgage Disclosure Act (HMDA) reports that an annual average of 32 home improvement loans were approved in 2018 and 2019. Based on this, 256 home improvement loans can be projected to be approved over the 8-year planning period.
 Rehabilitation of 85 moderate-income homes funded through private home improvement loans.  Rehabilitation of 86 above moderate-income homes funded through private home improvement loans.

The conservation/preservation objective of five units is based on three extremely low-income households and two very low-income households funded through Section 8.

City Council Agenda,

Canyon Lake Housing Element (2021-2029)
Appendix A – Assessment of Housing Needs
City Council Agenda,

Appendix A – Assessment of Housing Needs i
Canyon Lake Housing Element (2021-2029)
Table of Contents
A Housing Needs Assessment.............................................................................................................................. A-1 A.1 Population Characteristics ................................................................................................................... A-1 A.2 Age Characteristics............................................................................................................................... A-2 A.3 Race and Ethnicity................................................................................................................................ A-3 A.4 Economic Characteristics..................................................................................................................... A-3 A.5 Household Characteristics.................................................................................................................... A-9 A.6 Special Needs Groups......................................................................................................................... A-10 A.7 Housing Stock Characteristics............................................................................................................ A-16 A.8 Housing Costs and Affordability......................................................................................................... A-21 A.9 Eviction............................................................................................................................................... A-24 Tables
Table A-1 Population Growth ............................................................................................................................. A-2 Table A-2 Age Characteristics ............................................................................................................................. A-2 Table A-3 Race/Ethnicity..................................................................................................................................... A-3 Table A-4 Major Employers in Menifee .............................................................................................................. A-4 Table A-5 Employment Characteristics............................................................................................................... A-5 Table A-6 Mean Salary by Occupation – Riverside County ................................................................................. A-6 Table A-7 Household Income by Tenure (2013-2017)........................................................................................ A-7 Table A-8 Median Household Income (2015-2019)............................................................................................ A-8 Table A-9 Household Characteristics.................................................................................................................. A-9 Table A-10 Average Persons per Household by Jurisdiction............................................................................... A-10 Table A-11 Special Needs Groups in Canyon Lake (2020)................................................................................... A-10 Table A-12 Persons Aged 65 and Over................................................................................................................ A-11 Table A-13 City of Canyon Lake Elderly Households 65 Years+ by Tenure and Household Type: 2015-2019.... A-11 Table A-14 Disabilities Tallied in Canyon Lake (2019)......................................................................................... A-12 Table A-15 Large Households in Canyon Lake Compared to Riverside County .................................................. A-14 Table A-16 Single-Parent Households (2021) ..................................................................................................... A-14 Table A-17 Homelessness in Canyon Lake and Surrounding Cities (2023) ......................................................... A-16 Table A-18 Housing Unit Growth (2000 to 2020)................................................................................................ A-17 Table A-19 Housing Unit Type............................................................................................................................. A-17 Table A-20 City of Canyon Lake Tenure by Units in Structure: 2015-2019......................................................... A-18 Table A-21 Vacancy Rates by Community (2020) ............................................................................................... A-19 Table A-22 City of Canyon Lake Persons per Room by Tenure – 2015-2019...................................................... A-21 Table A-23 Comparison of Median Monthly Rent (2023)................................................................................... A-23 Table A-24 Housing Cost Burden by Tenure (2016-2020)................................................................................... A-24 City Council Agenda,

ii Appendix A – Assessment of Housing Needs
Canyon Lake Housing Element (2021-2029)
Figures
Figure A-1 Comparison of Median Household Income (2015-2019) Household Income .................................... A-7 Figure A-2 Household Income Distribution (2015-2012) ..................................................................................... A-8 Figure A-3 Tenure by Race of Householder (2020)............................................................................................ A-18 Figure A-4 Housing Stock Age (2020)................................................................................................................. A-20 Figure A-5 Median Home Values (2023) ............................................................................................................ A-21 Figure A-6 Median Home Values (2023) ............................................................................................................ A-22 Figure A-7 Estimate of Household Income by Rent in Canyon Lake (2014-2018).............................................. A-22 City Council Agenda,

Appendix A – Assessment of Housing Needs A-1
Canyon Lake Housing Element (2021-2029)
A Housing Needs Assessment
Ensuring adequate housing for all Canyon Lake’s present and future residents is a primary housing goal for the City.

To realize this goal, the City must effectively target its programs and resources toward those households with the greatest need. An assessment of the demographic, socioeconomic, and housing characteristics in Canyon Lake helps determine the specific housing needs of present and future residents. This section discusses the characteristics of Canyon Lake’s population and housing stock to better define the nature and extent of unmet housing needs in the city.

This section includes the following sections:
 Population Characteristics
 Age Characteristics
 Race and Ethnicity
 Economic Characteristics
 Household Characteristics
 Special Needs Groups
 Housing Stock Characteristics
 Affordable Housing in Canyon Lake
A.1 Population Characteristics
Population characteristics affect the type and amount of housing needed in a community. Factors such as population growth, age and income distribution, and employment trends influence housing needs including the type and affordability of housing stock. The following section describes and analyzes the various population characteristics and trends that affect housing needs.

A.1.1 Population Growth
The City of Canyon Lake encompasses 3.9 square miles of Riverside County and is located between the cities of Lake Elsinore and Menifee, approximately 12 miles north of the City of Temecula. The city’s incorporated area surrounds the Canyon Lake Reservoir, which is owned and operated by the Elsinore Valley Municipal Water District. The City began as a gated master-planned community, and incorporated as a city in 1990. The vast majority of its growth occurred between 1980 and 1990, when it grew from 2,039 to 7,938 residents.

From 1990 to 2000, Canyon Lake's population increased by over 25 percent to 9,952 residents. Growth in the city slowed from 2000 to 2010, with an increase of 6.1 percent. From 2010 to 2020 Canyon Lake's population grew by

4.9 percent and has remained stable with a population of just over 11,000 residents.

Among comparable cities, Canyon Lake's growth has been relatively moderate. From 1990 to 2020, Riverside County experienced explosive population growth, more than doubling in 20 years. The neighboring cities of Murieta and Temecula tripled in population, and the cities of Perris and Lake Elsinore more than doubled. By comparison, Canyon Lake's population grew by 40 percent.

Based on the City's RHNA allocations, its population is expected to grow by about 350 residents by 2029. This estimate is based on an average household size of 2.76 persons multiplied by the RHNA allocation of 129 housing units. This would constitute a growth of 3.2 percent. Table A-1 compares Canyon Lake's population growth with neighboring cities as well as Riverside County as a whole.

City Council Agenda,