Desert Hot Springs City Council
January 17, 2023

8 PERSONNEL RESUMES
Charmaine McCarvel, Assessment Manager, assists municipalities with formation, annexation, financing, and annual administration services which includes apportionments and bond payoff calculations for special financing districts. Her efforts help ensure districts continue to receive appropriate tax funding to provide much-needed community services and infrastructure.

Charmaine offers 18 years of expertise in the Landscaping and Lighting Act of 1972, the Municipal Improvement Act of 1913, the Improvement Bond Act of 1915, the Mello-Roos Community Facilities Districts Act of 1982, the Benefit Assessment Act of 1982, and Community Services Districts. She has provided a full range of services including Proposition 218 compliance, dynamic client support with the preparation of annual budgets, staff reports, annual Engineer’s Reports, annual disclosure reports, and legal documents required for special district formation, annexation, administration, and bond issuance. Charmaine currently serves as Project Manager for the Cities of Desert Hot Springs, Chino, Temecula, Tustin, Redlands, the Hi-Desert Water District, and the Mission Springs Water District providing service for over 300 special districts.

CHARMAINE MCCARVEL
Project Role:

Project Manager
Title:

Assessment Manager
Years of Experience:
18 Years
Affiliations:

California Society of Municipal
Finance Officers
Formation, Administration, and Annexation Services, City of Desert Hot Springs - Charmaine serves as the Project Manager and is responsible for providing all Special District Services for the City of Desert Hot Springs’ Districts. These Districts include the Citywide Landscape and Lighting District, Drainage Benefit Assessment District containing 17 zones, Landscape and Lighting Maintenance District containing 19 zones, two Community Facilities Districts, two Public Safety Measure Tax Districts, and three tax roll billings for disposal and nuisance abatement services.

Formation, Debt Issuance, Administration, & Program Management Services for Special Financing Districts, Jurupa Community Services District (JCSD) - Charmaine serves as an Assistant Project Manager for JCSD, assisting with the oversight for 120 bonded and nonbonded Community Facility Districts (CFDs) including seven Lighting and Landscape Maintenance Districts (LLMDs)with 124 zones. With nearly 10 years of working with JCSD, Charmaine has assisted in formations, bond issuances, and administration which includes the preparation of Annual Engineer’s Reports, Semi-Annual and Annual Disclosure Reports, CDIAC, SB 165, SB 1029, and AB 2109 reports, annexations, district audits, constituent relations, and consulting services including Proposition 218, 1972 Act Landscaping and Lighting Maintenance Districts, and Community Facilities Districts.

9 CHARMAINE MCCARVEL

ASSESSMENT MANAGER
Administration and Consulting Services for Special Districts, City of Temecula (City) - Charmaine serves as the Project Manager for the City’s Community Services Districts and one Citywide Parks and Lighting Tax. Services provided in relation to the City’s special financing districts include annual budget preparation, Annual Engineer’s Report, annual noticing, meeting attendance, assistance with preparation of staff reports and resolutions, fund balance analysis, tracking parcel/district development, Levy Audit map preparation, property owner services, and various special projects on an as-needed basis. Services provided for the City also included Proposition 218 services in which Charmaine and the WMF Team provided assessment balloting proceedings for the City’s 29 Zones within the City’s Community Services Districts.

Administration and Program Management Services for Special Financing Districts, Mission Springs Water District - Charmaine serves as the Project Manager and is responsible for the administration of Assessment District No. 13 for the District. Charmaine and the WMF Team recently formed Assessment District No. 15, coordinating with the District to determine which of the needed improvements are authorized by the Municipal Improvement Act of 1913 and developed a comprehensive assessment budget to cover the costs of implementing these improvements. WMF prepared multiple preliminary bond sizing spreads for different grant funding scenarios. Additional services provided in relation to these Special Financing Districts include extensive delinquency management, prepayment calculations analysis, bond call apportionments, annual budget preparation, fund balance analysis, tracking parcel/district development, Levy Audit map preparation, preparation of Continuing Disclosure Reports, coordination of Arbitrage Rebate Calculations, property owner services, and various other special projects on an as needed basis.

Assessment District Formation Services, Hi-Desert Water District - Charmaine serves as the Assistant Project Manager and is responsible for the administration of Assessment District No. 2014-1 (AD No. 2014-1) which includes three Benefit Areas for HDWD. Charmaine and the WMF Team coordinated with HDWD, design engineering consultants, and a legal counsel to determine the cost of the improvements to be financed by AD No. 2014-1. Based upon this information, WMF devised an equitable method of assessment to ensure all parcels receiving direct and special benefit from the improvements would be fairly assessed according to the benefit received by each property in each Benefit Area. As required by California State Proposition 218, WMF also quantified the general benefit calculation and applied the general benefit contribution to the project and associated properties. After determining the appropriate formula for apportioning the assessment, WMF prepared the Preliminary and Final Combined 1931/1913 Act Engineer’s Reports which contain all required items in accordance with the California Code, a description of the improvements to be financed by the Assessment District, the plans and specifications, an engineer’s estimate of the construction, the method of assessment, assessment diagram, and the preliminary assessment roll. WMF’s formation team attended and participated in property owner outreach meetings with HDWD Staff and other members of the formation team. WMF also attended strategy meetings and Board of Directors meetings relating to the formation of the Assessment District.

10 Project Role:

Principal-in-Charge
Title:

President/Managing Director
Chief Compliance Officer
Years of Experience:
18 Years
Education:

MS, Finance
San Diego State University
BS, Business Administration
California State University, San
Marcos
Affiliations:

California Society of Municipal
Finance Officers
(Advisor for Professional Standards
& Recognition Committee)
Government Finance Officers
Association
(Member of Planning Committee for
Woman’s Public Finance Network)
Women in Public Finance
Committee on Assessments,
Special Taxes & Other
Financing Facilities California
Special District Association
Heidi Schoeppe is a leader in the development of innovative solutions for the formation and administration of special financing districts for municipalities throughout California. Due to her technical skills and sound approach, Heidi serves as a professional resource to her clients, associates, and finance teams.

Speaking at conferences throughout California, informing clients on proposed and enacted legislation, and being called upon as an expert consultant to financing teams, allows her the opportunity to provide her clients and team with the most up-to-date information in the field of special financing districts with a focus on the needs of her clients and their constituents.

With 18 years in the field, Heidi has managed infrastructure and services special financing district formations and has executed numerous bond financing and refinancing projects totaling more than $725M in debt issuance, providing significant savings to her clients and their constituents. Heidi has authored disclosure, debt, and land secured special financing district policies, staying in front of legislative updates to ensure her clients are receiving sound advice. Heidi specializes in providing full program management, administration, annexation, district auditing, constituent relations, and consulting services including Proposition 218, Landscaping and Lighting Act of 1972, Municipal Improvement Act of 1913, Improvement Bond Act of 1915, and Benefit Assessment Act of 1982.

HEIDI SCHOEPPE

REGISTERED MUNICIPAL ADVISOR REPRESENTATIVE
Administration and Consulting Services for Special Districts, City of Chino (City) - Heidi serves as the Principal-in-Charge for the City.

She is responsible for the annual administration for all Community Facilities District’s, Landscape and Lighting Maintenance Districts, for the City. Services provided in relation to these special financing districts include extensive delinquency management, Proposition 218 consulting services, prepayment calculation and analysis, bond redemption analysis and preparation, annual budget preparation, fund balance analysis, tracking parcel/district development, levy audit map preparation, preparation of Continuing Disclosure and CDIAC Reports, SB 165 Compliance, coordination of arbitrage rebate calculations, and various other special projects on an as needed basis.

11 HEIDI SCHOEPPE

REGISTERED MUNICIPAL ADVISOR REPRESENTATIVE
Administration and Program Management Services for Special Financing Districts, Jurupa Community Services District (JCSD) - Heidi serves as the Principal-in-Charge for JCSD providing oversight for 120 bonded and non-bonded Community Facility Districts (CFDs) as well as Landscaping Maintenance Districts (LMDs)
The recent formations of CFDs for JCSD include the design, construction, and acquisition of proposed facilities for JCSD that consist of master plan water system facilities including capacity in existing facilities and sewage treatment and disposal capacity, park and recreation facilities including incidental expenses related to the planning, design, and completion of such facilities, school district facilities that include K-12 public school facility improvements to be owned and operated by the school district, and/or County of Riverside improvements to be owned and operated by the County of Riverside, and/or City of Eastvale Development Impact Fees.

Formation, Debt Issuance, Administration, & Program Management Services for Community Facilities Districts, Eastern Municipal Water District (District) - Heidi serves as the Principal-in-Charge and Program Manager for the District and is responsible for the program management of 86 Community Facilities Districts.

In addition to formation services and comprehensive administration services for all districts, Heidi and the WMF Team also perform parcel audit services for all newly assumed districts and have taken on the role of Program Manager for the District’s entire book of CFD work.

12 NADIA BENALI
Project Role:

Assistant Project Manager
Title:

Senior Assessment Associate
Years of Experience:
14 Years
Education:

MBA, Business Administration -
Accounting
University of Phoenix
BS, Hotel & Restaurant
Management
University of Nevada, Las Vegas
Affiliations:

California Society of Municipal
Finance Officers
Nadia Benali, a Senior Assessment Associate at WMF, provides administration and consulting services to municipalities throughout Southern California to ensure their special financing districts function smoothly. Nadia, who earned a Master of Business Administration (MBA) with an emphasis in Accounting in 2005, joined WMF with seven years of experience in district administration in the California municipal market.

In fact, she has worked as a financial analyst in district administration for cities and municipalities in five different counties in the state. Nadia, who prides herself on providing excellent customer service, has served as lead contact for all of her clients.

She has administered and consulted on the Landscaping and Lighting Act of 1972, Mello-Roos Community Facilities Act of 1982, Municipal Improvement Act of 1913, and Improvement Bond Act of 1915, in addition to special “park tax” districts and those relating to fire services.

Formation, Administration, and Annexation Services, City of Desert Hot Springs - Nadia serves as the Assistant Project Manager and Analyst and is responsible for assisting in providing all Special District Services for the City of Desert Hot Springs’ Districts. These Districts include the Citywide Landscaping and Lighting District, Drainage Benefit Assessment District containing 17 zones, Landscape Maintenance District containing 19 zones, two Community Facilities Districts, two Public Safety Measure Tax districts, and three tax roll billings for disposal and nuisance abatement services.

Administration and Consulting Services for Special Districts, City of Chino (City) - Nadia serves as the Assistant Project Manager for the annual administration for all Landscape Maintenance and Community Facilities Districts for the City. Services provided in relation to these Special Financing Districts include the preparation of Annual Engineer’s Reports, Proposition 218 consulting services, extensive delinquency management, prepayment calculation and analysis, annual budget preparation, fund balance analysis, tracking parcel/district development, Levy Audit map preparation, preparation of Continuing Disclosure and CDIAC Reports, SB 165 and AB 2109 Compliance, coordination of Arbitrage Rebate Calculations, property owner services, and various other special projects on an as needed basis.

13 David Messenger
Assessment Associate
With over seven years of public agency experience in finance, David brings a high level of analytical skill to WMF. As an Assessment Associate, David has been an integral member of many client teams assisting with comprehensive administration, bond issuances, formations, and other special projects.

David’s responsibilities include, but are not limited to budget review and recommendation, annual enrollment calculation and submittal, compliance report preparation, Engineer’s Report and assessment diagram preparation, and property owner information services. David has been a vital component to WMF’s Team supporting the administration of over 70 CFDs, LLMDs, and ADs for agencies such as the City of Riverside, Jurupa Community Services District, and Edgemont Community Services District. David has developed an adept knowledge of data and technology which are used throughout the Special Tax District administration process and has been responsible for generating GIS KML files which visually represent taxing jurisdictions.

His proven attention to detail and strong work ethic, along with his friendly and diligent nature, make him an asset to the company and the clients for which he provides assistance.

AFFILIATIONS
Committee on Assessments, Special Taxes & Other Financing Facilities California Special District Association

EDUCATION
BA, Business Administration
California Baptist University
Years of Experience:
6 Years
Relative Project Experience
Joshua Norris
Assessment Analyst
Project Role:

Project Analyst
Project Experience & References
Administration and Formation Services for Special Districts, City of Riverside - David serves as the Assessment Analyst for the City of Riverside, providing formation, annexation, and administration services.

The City’s CFDs and ADs provide funding for the construction and acquisition of improvement facilities, as well as maintenance services throughout the City. The types of facilities financed through the use of special districts include roadway improvements, storm drain, water, landscape and irrigation improvements, wall rehabilitation, and street and display lighting. The City’s Street Light Assessment District (SLAD) and LLMDs provide for the operation and maintenance costs of the City’s street lighting and landscaping throughout the entire City.

EDUCATION
BA, Business Administration
California Baptist University
Years of Experience:
3 Years
Project Role:

GIS Specialist
Joshua Norris is an Assessment Analyst and serves as the lead Geographic Information Systems (GIS) Specialist at WMF.

He is an accomplished administrative specialist with an extensive background in customer service, financial analysis, GIS mapping, and policy governance. Prior to joining WMF, Joshua honed his skills as a Senior Housing Specialist for the County of Riverside’s Division of Economic Development. During his tenure he developed a reputation for his strong analytical capability, unwavering reliability, and high standard of integrity. He has assisted in the administration and GIS mapping for Lighting and Landscaping Maintenance Districts (LMD), Community Facilities Districts (CFD), and other special districts.

14 Subconsultant Identification
Albert A. Webb Associates (WEBB), a Corporation, has consistently provided civil engineering services to public sector clients throughout California since 1945. This means their clients receive the benefit of a financially stable firm that has withstood many diverse economic times. WEBB is a mid-size consulting firm with offices in Riverside, Palm Desert, and Murrieta to best meet the needs of all of their clients. WEBB has over 170 associates and the in-house expertise to address the needs of cities, water and special districts, counties, regional agencies, and our partner firms within the industry. WEBB offers a broad range of services to meet the objectives of our clients which include project development, planning, design, entitlement, funding, permitting, construction management, and inspection.

WMF’s close relationship with WEBB allows our team to provide our clients with services seamlessly.

Matthew Webb, PE, TE, LLS
Albert A. Webb Associates
President/CEO

AFFILIATIONS
American Society of Civil Engineers
International Right-of-Way Association
Institute of Transportation Engineers
Tau Beta Pi Engineering Society
The Monday Morning Group, President
The Raincross Group
District Attorney Crime Prevention Foundation Board
Mission Inn Foundation Board of Trustees
National Groundwater Association
Riverside Community Hospital Board of Directors
Riverside Chamber of Commerce Board of Directors
Riverside County Building Industry Association Board of Directors Inland Empire American Heart Association, Chairman of the Board Registered Civil Engineer 37385 (CA)
Registered Traffic Engineer 1898 (CA)
Registered Land Surveyor 5529 (CA)

EDUCATION
MS, Civil Engineering, Stanford University
BS, Civil Engineering, Stanford University

YEARS OF EXPERIENCE
45 Years
Matthew Webb is the President/CEO at WEBB and possesses nearly four decades of experience in preparing and reviewing Formation Engineer’s Reports for Assessment Districts (AD) and Landscaping and Lighting Maintenance Districts (LLMD), as well as Annual Engineer’s Reports for LLMDs. Matthew has vast experience pertaining to various types of Special Districts including, but not limited to the Landscaping and Lighting Act of 1972, Assessment Districts formed under the Municipal Improvement Act of 1913, the Improvement Bond Act of 1915, and the Benefit Assessment Act of 1982, Mello-Roos Community Facilities Act of 1982.

Matthew serves as assessment engineer to 13 agencies. His breadth of knowledge, standard of care, extensive experience, and responsibilities include:
• Preparation of Engineer’s Report containing all items as required by code including proposed improvements, engineer’s estimate of costs and incidental expenses, a narrative description of the spread methodology, assessment diagrams, preliminary annual assessment roll based upon current estimate of costs and expenses, confirmation of compliance with Proposition 218, and assumptions behind the determination of benefits
• Participation at public agency/public information meetings fully prepared to present all necessary testimony and to respond to all public comments pertaining to formations of ADs and LLMDs • Experience in establishing lines of communication, preparing the assessment district schedule of events, reviewing procedural and financial considerations, discussing proposed improvements, the eligibility of those improvements, and any limitations on the funding of those improvements

15 Section 4. References
Client:

Eastern Municipal Water District
2270 Trumble Road
Perris, CA 92572
Contact:

Laura Nomura, CPA
Deputy General Manager
951.928.6154
[email protected]
Fiscal Years (FY) of Service:

FY 2000-2001 to Present
Project Team:

Heidi Schoeppe - PM
Matt Chesney - APM
Josh Norris - GIS
WMF assumed and seamlessly transitioned the annual administration for all of Eastern Municipal Water District’s (EMWD) AD and CFD. WMF performed parcel auditing services for all assumed districts and currently provides formation and comprehensive administration services for six active ADs and 86 active CFDs. WMF has assumed the role of Program Manager for the entire book of EMWD’s special financing district work.

Program Management Services
• Manage all CFD related requests including formation of new CFDs, amending the structure of an existing CFD, Joint Community Facilities Agreement requests, and requests to issue CFD bonds from developers or consultants
Formation Services
• Prepare CFD Report, the Rate and Method of Apportionment and provide projections of special tax revenues
Bond Issuance and Refinancing
• Research, compile, and analyze appropriate data to generate tables for inclusion in preliminary and final bond offerings
• Review and provide comments to all bond issuance documents and assists in any analysis and presentations for credit ratings Administration Services
• Prepare annual budgets, levy enrollments, CDIAC, SB165, and AB2109 report preparation, special tax prepayment calculations and release of lien(s), public information services, parcel and development status research, and delinquency management

FORMATION, DEBT ISSUANCE, ADMINISTRATION, AND PROGRAM MANAGEMENT

SERVICES FOR COMMUNITY FACILITIES DISTRICTS

16 Client:

City of Riverside
3900 Main Street, 6th Floor
Riverside, CA 92522
Client Contact:

Heidi Schrader
Debt & Treasury Manager
951.826.3904 ext. 4952
[email protected]
Fiscal Years (FY) of Service:

FY 2000-2001 to Present
Project Team:

Heidi Schoeppe - PIC
Charmaine McCarvel, PM
Matthew Webb, PE, TE, LLS - EOR
Josh Norris, GIS

ADMINISTRATION AND FORMATION SERVICES FOR SPECIAL DISTRICTS WMF has been providing formation, bond issuance, and administration services to the City of Riverside since Fiscal Year 2000-2001. We have formed Community Facility Districts (CFD), Assessment Districts (AD), and Landscape Maintenance Districts (LMD). The City’s CFDs and ADs provide funding for the construction and acquisition of improvement facilities, as well as maintenance services throughout the City. The types of facilities financed through the use of special districts include roadway improvements, storm drain, water, landscape and irrigation improvements, wall rehabilitation, and street and display lighting. The City’s Street Light Assessment District (SLAD) and LMDs provide for the operation and maintenance costs of the City’s street lighting and landscaping throughout the entire City.

Administration Services
• Four Assessment Districts
• Nine Community Facilities Districts
• Two Landscape Maintenance Districts
• One Street Light Assessment District
• Community Service Area 152
Formation Services
• Prepared CFD/Engineer’s Reports including the outline of the plans & specifications, collection and review of data related to the formation and Rates and Method of Apportionment
• Prepare boundary maps, assessment diagrams, and tax roll preparation • Currently assisting in the formation of a Public Services Community Facilities District Bond Issuance and Refinancing
• Research, compile, and analyze appropriate data to generate tables for inclusion in preliminary and final bond offerings
• Review and provide comments to all bond issuance documents and assists in any analysis and presentations for credit ratings

17 Finance
Department
3900 Main Street, Riverside, CA 92522 | Phone: (951) 826-5454 | Fax: (951) 826-5683 | RiversideCA.gov November 21, 2022
To Whom It May Concern:

It’s my pleasure to recommend Webb Municipal Finance, LLC (WMF) to provide CFD Special Tax Administration services. I have worked with their CFD Program Management team at the City of Temecula, at Eastern Municipal Water District, and now at the City of Riverside and could not recommend any other firm more highly. Heidi Schoeppe has served as our Program Manager throughout this time, and I have consistently been impressed with her dedication to our agency and its Land Secured Financing program.

WMF manages our nine Community Facilities Districts with over $39 million in outstanding principal, and four Assessment Districts with over $16 million in outstanding principal. They also prepare the annual Engineer’s reports to levy our two Landscape Maintenance Districts and Streetlight Assessment District. WMF provides turnkey services, managing many of the day-today aspects of our program. Even more valuable is their considerable expertise. Heidi and her team stay on top of recent legislation and reporting requirements and keep us apprised of changes early in the process.

Along with Heidi and her team’s undeniable talent, the WMF team has been an absolute joy to work with. We consider them an extension of our staff due to the energy and commitment they have shown the City. Without a doubt, I confidently recommend Webb Municipal Finance to provide Special Tax Administration services for any busy public agency. They stand shoulders above the rest.

Please feel free to contact me at (951) 826-3904 should you wish to discuss WMF’s qualifications and services further.

Sincerely,
Heidi Schrader
Debt & Treasury Manager

18 Client:

City of Chino
13220 Central Avenue
Chino, CA 91710
Client Contact:

Rob Burns
Director of Finance
909.334.3262
[email protected]
Fiscal Years (FY) of Service:

FY 2007-2008 to Present
Project Team:

Heidi Schoeppe - PIC
Charmaine McCarvel - PM
Nadia Benali - APM
Matthew Webb, PE, TE, LLS - EOR
Josh Norris - GIS
WMF performs full consulting and administrative services for the City of Chino’s Community Facilities Districts (CFD) totaling 43, Landscaping Lighting Maintenance Districts (LLMD) totaling 180 zones, and provides consulting for the City’s Special Financing Districts. In this role, WMF has performed CFD Formation Consulting Services including fiscal impact analysis, tax rate analysis, Rates and Method of Apportionment preparation, infrastructure financing services, and CFD annexation services including feasibility and budget analysis. Additional services provided by WMF include CFD and Assessment District defeasance services, CFD refunding services, and Proposition 218 consulting services for the City’s LLMDs.

Administration Services
• Data maintenance, levy preparation/submission, reserve monitoring, analysis and recommendation for Proposition 218 compliance proceedings, public information services, budget review, and Annual Disclosure, SB 165, and Engineer’s Reports preparation
Formation Services
• Facilities and Services CFD formations
• Provide projections of tax revenues to ensure sufficient funds will be generated to meet debt service
• Prepare and record boundary maps
• Review CFD Reports for facilities/services to be financed and/or maintained Bond Issuance
• Eight new money bond issuances and four multiple CFD refinancings • Provide analysis and data for bond offering and review bond documentation

CONSULTING SERVICES FOR SPECIAL DISTRICTS

19 Client:

Jurupa Community Services District
11201 Harrel Street
Jurupa Valley, CA 91752
Client Contact:

Steven Popelar, CPA
Director of Finance
951.685.7434 x525
[email protected]
Fiscal Years (FY) of Service:

FY 1988-1989 to Present
Project Team:

Heidi Schoeppe - PIC
Charmaine McCarvel - APM
David Messenger - Project Analyst
Josh Norris - GIS
WMF currently performs administrative services for 120 bonded and non-bonded CFDs including 17 annexations, and seven LMDs including 124 annexations. The recent formations of CFDs for JCSD include the design, construction, and acquisition of proposed facilities for JCSD that consist of master plan water system facilities including capacity in existing facilities and sewage treatment and disposal capacity, park and recreation facilities including incidental expenses related to the planning, design, and completion of such facilities, school district facilities that include K-12 public school facility improvements to be owned and operated by the school district, and/or County of Riverside improvements to be owned and operated by the County of Riverside, and/or City of Eastvale Development Impact Fees.

Formation Services
• Projects the planned build-out scenarios to determine taxing capabilities, taking into consideration any overlapping debt in order to maintain the taxing limits outlined by JCSD’s policies • Review outline of plans & specifications, collection and review of all data related to the formation and annexation, preparation of the Engineer’s Report including the establishment of general benefit (Assessment Methodology), preparation of assessment diagrams, assessment roll preparation, and assistance in the preparation of the ballots (Proposition 218)

FORMATION AND ADMINISTRATION SERVICES

20 Kenneth J. McLaughlin, President
Jane F. Anderson, Vice President
Lupe R. Nava, Director
Bart Moreno, Director
Betty Folsom, Director
11201 Harrel Street, Jurupa Valley, CA 91752 * Phone (951) 685-7434 * Fax (951) 727-3501 December 1, 2022
RE: Letter of Reference for Webb Municipal Finance
To Whom It May Concern:

As the Director of Finance and Administration for Jurupa Community Services District (JCSD), it gives me great pleasure to highly recommend Webb Municipal Finance for their Municipal Finance and Administration consultant services. Webb has been a consultant and consistent resource for almost 30 years and is an integral part of the JCSD Finance team.

The team at Webb act as an extension of our staff, and are always responsive and supportive whenever questions arise, helping us to meet all mandatory deadlines, and proactively apprising us of any and all issues that affect our Special Tax districts.

Webb has assisted JCSD with forming more than 50 Community Facilities Districts and seven Landscaping Maintenance Districts, and currently is the Special Tax Consultant for these districts, as well as a District-wide Illumination District. Webb handles all mandatory reporting requirements, including AB 2109, SB 165, CDIAC, Annual and Semi-Annual Disclosures, Delinquency, Direct and Overlapping Debt tables, Annual Reports, and Engineer's Reports. Then after enrolling the annual levies, they provide Audit Maps and interactive KML Maps to ensure complete enrollment and for use in reporting. Additionally, they perform all parcel research and changes, preparing the districts' annual budgets, calculating, and enrolling annual levies, as well as handling all property owner tax calls.

Managing Director, Heidi Schoeppe, and her team work with Developers, Bond Counsel, Underwriters, Financial Advisors, and JCSD Staff when forming and financing JCSD’s Special Tax Districts. Heidi and her team provide full support for the process of formations and annexations of these districts. The Webb team plays an integral role when issuing new money Special Tax Bonds, preparing bond sizing financing, levy calculations, value-to-debt valuations, and other tables for the Official Statements. They are responsive and knowledgeable in providing any and all information and analysis required as well as providing recommendations regarding Special Tax rate structures and viability of formations based upon JCSD's policies.

I personally have worked with Heidi Schoeppe and the Webb team for ten years. During that time, they have been an invaluable resource, consistently exceeding expectations and never failing to

21 December 1, 2022

provide exactly what we need. They are consummate professionals, ensuring that we are kept up to date with current legislative requirements, making recommendations, and advising us on industry best practices to ensure that our districts operate smoothly and successfully. The Webb team makes sure that all aspects of our Special Districts are stress-free: from formations to bond issuance, and finally annual administration. Their recommendations make it easy to make effective decisions.

I would be happy to answer any questions regarding this letter of recommendation. Please do not hesitate to contact me at [email protected] or 951.685.7434, Ext. 525.

Sincerely,
Steven Popelar, CPA
Director of Finance and Administration

22 Client
City of Beaumont Finance
550 East 6th Street
Beaumont, CA 92223
Client Contact:

Jennifer Ustation
Finance Director
951.572.3236
[email protected]
Fiscal Years (FY) of Service:

FY 2014-2015 to Present
Project Team:

Heidi Schoeppe - PIC
Brent Howard - APM
Josh Norris - GIS
WMF currently provides special tax consulting and annual administration services for the City. These services include the annual administration of 81 CFDs which included special taxes comprising the City’s CFD program which includes multiple Improvement Areas under CFD No. 93-1, and seven new CFDs which WMF assisted in the formation of. WMF formed the City’s first public safety special tax, and implemented the City’s maintenance services program for the newest CFDs. Our project team has become CFD subject experts for the City’s Staff, Council, and the community. During our engagement, WMF has assisted in multiple projects and tasks which were out-of-scope to our contract of services. Illustrating our commitment to client service, WMF completed these numerous tasks without fail. The following are some examples of the types of activities WMF assisted in and completed:

Project Highlights
• Identified and Corrected Several Prior CFD Administration Deficiencies Ensuring all CFDs are Administered as Defined in the Formation Documents • Assisted the City’s Financial Advisor and Other Consultants in Providing CFD Budget Forecasts for the City’s Work Out and Reconciliation Projects • Created a Historical CFD Budget Looking Back 10 Years using Available Records
• Developed and Implemented the City’s CFD Maintenance Services Program
• Developed and Implemented the City’s First Public Safety Services Program to Provide Funding for Police, Fire, and Paramedic Services • Ongoing Support to the City’s Finance Department Providing Historical and Current CFD Financial Records and Budget Preparation

ANNUAL ADMINISTRATION, FORMATION, AND BOND SALE SUPPORT SERVICES FOR

SPECIAL DISTRICTS

23

24

25 Section 5. Project Understanding & Scope of Services WMF has an understanding of the manner in which a financing district will operate in the real world once formed. Our approach to the administration process has been developed through years of experience, primarily focusing our services within California. We offer technical capabilities, in-depth knowledge of our industry, and responsiveness to the City’s needs. We have developed our approach through decades of staff experience and believe it to be the most appropriate and successful. Our scope of services includes, but is not limited to:
• Annexation Services
• Preparation of the Annual Budgets as well as Engineer’s Reports • Council Maps, Assessment Diagrams, Boundary Maps, and Audit Maps • Meeting Attendance
WMF has reviewed the requirements as outlined in Exhibit A - RFP Specifications, Special District Administration, in it’s entirety and is able and willing to provide all requirements as outlined in the scope of work.

We have the experience the City requires; a solid approach in addressing all concerns that could be faced regarding the annual administration of the City’s Landscaping and Lighting Maintenance Districts, Community Facilities Districts, Public Safety Special Tax, and County Service Area, and other special financing districts.

We hold the philosophy that, in order to be a value-added administrator, we must effectively communicate, employ, and utilize our technologies and quality assurance procedures for efficient accurate work products, with commitment to on-time delivery.

Effective
Communication
In order to achieve effective communication, we establish the preferred communication styles during our initial kick-off meeting, where we meet with City Staff to set our lines of communication. We then use this method as frequently as needed or desired to immediately discuss all possible issues that may arise, for quick and efficient resolution. Our approach fosters relationship building with staff allowing for ease in discussion of any potential issues that may arise and immediately provides resolutions.

In-House
Technology
WebbSTAR™ & GIS
WMF uses our innovative GIS technology and our proprietary software, WebbSTAR™, to ensure accuracy of our work products. WebbSTAR™ was designed as a database management system to provide administrative services for property related fees, assessments, charges, and taxes.

Throughout a project we use WebbSTAR™ to store all data including complete parcel information, debt service schedules, generate levies, and reporting, generating the data necessary to collaborate with GIS Staff to create assessment diagrams and levy audit maps. WMF is launching a client portal in WebbSTAR™ by early 2023 allowing City Staff access to information on all administered districts including, but not limited to parcel details, levies, debt services schedules, and delinquency.

26 Schedule & Cost
Regulation
We are fully staffed and committed to completing projects on time and within budget. Having worked with numerous public agencies, WMF has a wealth of experience working on special financing district projects which translates to a comprehensive understanding of realistic time frames and appropriate project budgeting. For each project, a preliminary schedule is prepared and adopted. We evaluate and modify the project schedule and milestones to set the final baseline schedule during the initial project kick-off process. The baseline schedule will be monitored and tracked by our team to meet the project milestones and manage critical path items.

27 Communication
Open Dialogue
Communication between team members and City Staff is critical to project success. WMF coordinates with our clients to set goals, procedures and expectations, and to be an expert resource for any challenges that may arise. At the start of a project, we evaluate and confirm the preferred methods of communication with your staff. WMF then uses the established methods of communication throughout the project, improving the time it takes to develop quick and efficient resolutions in case an issue arises.

Compliance
Government
Codes &
Regulations
To ensure proper compliance is maintained, WMF stays current and compliant with the California Streets and Highways Code Landscaping and Lighting Act of 1972, Proposition 218, the Benefit Assessment Act of 1982, the Mello-Roos Community Facilities Act of 1982, as well as any case laws that affect the formation or administration of these Districts and other state and federal requirements.

Audits
Internal Peer
Reviews
WMF has instituted an internal audit and review policy that requires a minimum of three individuals participating in the preparation and review of any deliverable product. Once a required document is prepared, it will be reviewed and audited by a QA/QC Advisor. Any revisions are completed and the deliverable is then reviewed by a technical advisor and/or an assistant project manager. Finally, the product is reviewed and approved by the project manager prior to the dissemination to the City.

Technology
Cross Checks
As mentioned previously, our team embraces innovative technology such as GIS and WebbSTAR™ to enhance the quality of the services we provide our clients. Our associates have a keen understanding of the industry and are able to efficiently and effectively provide these services to our clients.

The use of these tools assist in the classification of properties so our team can more accurately prepare financial analyses through comparing various reports.

QA/QC is a core value at WMF that shapes our unique project management approach. Reinforced by experience and commitment to best practices, our QA/QC standards provide optimal results. WMF maintains a high level of quality assurance by following the protocols outlined below:

Quality Assurance/Quality Control (QA/QC)

28 Scope of Services
Community Facilities
District Annual
Administration
(Bonded & Services)

1. WMF will maintain and annually update an electronic database containing parcel characteristic data and annual special tax levy amounts by Assessor’s Parcel Number ("APN"). Database to include at a minimum, current year and historic tax roll information, parcel classifications, property owner information, land use, and building permit data. Database to be updated annually with current year final tract and/or parcel map recordation information along with the appropriate building and parcel information for all properties located within the boundaries of the City's Community Facilities Districts ("CFD").

2. WMF will create maps and other visual aids. All parcel data will be viewable (in a format similar to Google Earth) by City staff.

Maps will be updated on an annual basis with the current year's Riverside County parcel data and accurately show the CFD boundary, identification/labels, and current parcel special tax information.

Additionally, PDF versions of maps for each CFD will be prepared and presented to City staff illustrating the current year's levied parcels.

PDF maps will include boundary, parcels, and labels noting the enrolled status as either levied, not levied, exempt, non-taxable, writeof-way, or any other relevant notation.

3. At the City’s request, WMF will attend all meetings related to the City's CFD program. WMF will be prepared to attend, at minimum, one meeting per month. Including but not limited to staff meetings, Council meetings, public hearings, developer meetings, and meetings related to the conveyance of public education and information. WMF will also assist in the preparation of all relevant meeting material and presentations. Additionally, WMF will be prepared to present and speak at any meeting required.

4. WMF will assist City staff in the preparation of the annual CFD budgets, including coordinating with the Trustee to obtain the debt service requirements and availability of any applicable fund balances, determine the administration expense, delinquent property owners, any reserve requirement replenishment, and the calculation of any other applicable requirement. Apportionment will adhere to the Rate and Method of Apportionment of Special Tax ("RMA"). Including the assignment of special tax classes per each of the RMAs, and the setting of annual special tax rates that are necessary to satisfy the special tax requirement.

29 5. WMF will prepare all required documentation required for submittal of the special taxes to the Riverside County Auditor-Controller. Including City Council annual resolutions, Proposition 218 Compliance letters, direct bills (if needed), special tax levy summary for the Fiscal Year and an electronic copy of the annual CFD levy report for each CFD showing the amount levied by APN.

6. WMF will prepare and mail invoices (direct bills) on City letterhead to all property owners whose proposed annual levy for their parcel could not be applied to the County tax roll (parcels for which the County does not generate a tax bill). These invoices will be provided in two installments, similar to the County tax bills, and would be payable directly to the City.

7. WMF will provide special tax levies for each parcel by APN to the Riverside County Auditor-Controller’s Office in the media, format, and configuration required by the County for placement on the annual property tax roll (currently FTP).

8. WMF will research parcel exceptions provided by the County and, if possible, resubmit the levy amounts that were rejected by the Riverside County Auditor-Controller’s Office.

9. WMF will prepare and disseminate all required reporting. WMF will review all pertinent documents relating to each of the following report's requirements, collect third‐party data, and other required information needed to:
• Prepare all annual continuing disclosure reports as required by SEC rule 15c2‐12. Disseminate through the Electronic Municipal Market Access (EMMA) and to any other party directed by the applicable continuing disclosure agreement.
• Prepare and provide annual reports to the California Debt and Investment Advisory Commission (CDIAC) per Section 53359.5(b) of the California Government Code.
• Prepare the required reporting to the California State Controller’s Office California Government Code, Section 12463.2, enacted as part of AB 2109. Provide to City staff for inclusion in the annual financial transaction report.
• Assist in the filing of the SB 165 report to the City Council each year to comply with legislation that enforces additional reporting requirements. California Government Code, Sections 50075.3 or 53411.
• Prepare and provide the annual comprehensive CFD report to City staff.

30 10. WMF will prepare any other report, for City approval, as required by any State and/or Federal disclosure reporting requirements pertaining to each CFD, as applicable, amended, or newly enacted and required.

WMF will include being a resource to the City by staying current and identifying any new legislation and reporting requirements as they relate to CFDs.

11. WMF will assist the City in the preparation of all legal documents related to the CFD program. Including but not limited to staff reports, resolutions and ordinances, notices, and any presentation material required. The City acknowledges that the City Attorney will review all pertinent documents for form and content.

12. WMF will, at property owner's request (and subject to a fee for service per request), calculate written prepayment quotes for individual property owners. WMF will, upon payment in full, draft and record the notice of lien release and update database records with any prepayments.

13. WMF will perform required bond call spreads, coordinate the early redemption of outstanding bonds, update debt service schedules, and release of lien processing.

14. WMF will delinquency services which include the monitoring of delinquent parcels for each December 10th and April 10th installment and reporting to the City. Drafting and mailing of reminder letters and demand letters to property owners. Calculation of delinquency payoff quotes.

15. WMF will foreclosure services to include tax roll removal, drafting and mailing of foreclosure letters, and foreclosure coordination and support. Includes providing subsequent foreclosure services such as the preparation of foreclosure reports and resolutions, delinquency and foreclosure inquiry support, and repayment schedule preparation.

16. WMF will monitor the agency’s compliance with the Indenture of Trust or Fiscal Agent Agreement, as it relates to the pledge and/or flow of special tax revenues.

17. WMF will provide overall support to City staff and Council as it relates to the CFD program. Including the management and timing of all CFD related activities and community education/outreach workshops and presentations.

31 Landscape and
Lighting Maintenance
Districts & Drainage
Assessment District
Annual Administration

1. WMF will review past history (including all documentation, databases, and budgets) and impact of Proposition 218 as it relates to the City’s Landscape and Lighting Maintenance Districts (“LLMD”) and Drainage Assessment Districts (“DAD”), (collectively the “Districts”).

WMF will review prior years’ Engineer’s Reports to gain the necessary experience required to successfully administer the Districts.

2. WMF will stay current with all legislation affecting the City’s Districts and ensure each District is in compliance with all current and future legislation. WMF will keep the City apprised of all relevant reporting requirements and all proposed legislation which will amend or create new reporting obligations. With the passage of AB 1666 and SB 1029 it is apparent the state of California is looking to increase oversight of special financing districts, and it is critical the City’s Assessment Engineer ensure each District is aware and in compliance with current and upcoming legislation.

3. WMF will ensure the City’s projects are a priority and will meet all deadlines relating to the City’s Districts. WMF will establish and maintain lines of communication with City staff to determine the appropriate deadline for each project.

4. WMF will meet and coordinate with City staff to better understand the specific goals and objectives relating to the City’s Districts with an annual kickoff meeting. During the kick-off meeting WMF will work with City staff to develop timelines, including key dates and timeframes, for relevant tasks throughout the year for the annual administration services. Additionally, WMF will review key elements of each District’s annual administration, which includes, but is not limited to the review of: District budgets, administration expenses, reserve fund balances, potential annexations (if applicable), and modification or expansion of District improvements.

5. WMF will assist City staff in creating budgets necessary and determining the proposed special assessment required each year for the Districts. Based upon the costs provided by the City, WMF will confirm or modify the level of service for each zone/sub-area. The budgets will be independently prepared and based upon the specific improvements located in each zone or sub-area and will account for all costs including but not limited to the annual and periodic costs to operate, maintain, and service the Districts.

32 6. WMF will maintain and annually update an electronic database containing parcel characteristic data and annual special assessment levy amounts by Assessor’s Parcel Number ("APN"). Database to include at a minimum, current year and historic tax roll information, parcel classifications, property owner information, land use, acreage, and benefit assessment unit information. Database to be updated annually with current year final tract and/or parcel map recordation information along with the appropriate building and parcel information for all properties located within the boundaries of the City's Districts.

7. WMF will create maps and other visual aids. All parcel data will be viewable (in a format similar to Google Earth) by City staff. Maps will need be updated on an annual basis with the current year's Riverside County parcel data and accurately show the district boundary, identification/labels, and current parcel special assessment information. Additionally, PDF versions of maps for each district will be prepared and presented to City staff illustrating the current year's levied parcels. PDF maps will include boundary, parcels, and labels noting the enrolled status as either levied, not levied, exempt, non-taxable, write-of-way, or any other relevant notation.

8. For each item requiring Council action, WMF will prepare all necessary staff reports, assist in the preparation of the resolutions, notices, and scripts in accordance with California Government Code. WMF will also attend all applicable Council meetings which require City Council action and will, as necessary, be available to answer questions posed by the Council, City staff, and/or the public.

9. Engineer's Report Preparation (LLMD) - Prior to the annual public hearing and in accordance with the Landscaping and Lighting Act of 1972 and the California Constitution Article XIIID, WMF will file the Engineer’s Report for the City’s LLMDs with the City Clerk. The Engineer’s Report will include the fiscal year’s budget information, the listing of improvements to be maintained by the collection of the special assessments, the benefit spread methodology, a copy of plans and specifications, an estimate of costs, an assessment diagram, and a complete listing of parcels to be assessed and their total assessments. Each report will be prepared in accordance with California Government Code. The Engineer’s Report will include a statement of engineer signed by a Professional Engineer verifying the accuracy of the report. The original copy of the Engineer’s Report will be provided to the City along with an additional printed copy and a copy in PDF format.

33 10. Engineer's Report Preparation (DAD) - Prior to the annual public hearing and in accordance with the Benefit Assessment Act of 1982 and the California Constitution Article XIIID, an Engineer’s Report will be prepared by WMF and filed for the Drainage Maintenance District with the City Clerk. The Engineer’s Report will include the fiscal year’s budget information, the listing of improvements to be maintained by the collection of the special assessments, the benefit spread methodology, a copy of plans and specifications, an estimate of costs, an assessment diagram, and a complete listing of parcels to be assessed and their total assessments. The report will be prepared in accordance with California Government Code. The Engineer’s Report will include a statement of engineer signed by a Professional Engineer verifying the accuracy of the report. The original copy of the Engineer’s Report will be provided to the City along with an additional printed copy and a copy in PDF format.

11. Annual Special Assessment Submittal - Prior to the submission of the special assessments, WMF will prepare the Proposition 218 compliance letter and authorized signatures list which are required by the Riverside County Auditor-Controller’s Office.

In consultation with City staff, WMF will determine the levy requirement for the current fiscal year for the Districts. This task will include calculation and preparation of the annual levy for each of the Districts in the media, format, and configuration acceptable for direct submission to the Riverside County Auditor-Controller’s Office prior to the statutory deadline. Upon receipt of any rejected parcels, WMF will perform adjustments and corrections to the levies on the property tax rolls as necessary. WMF will also prepare and submit the required resolutions which authorize the special assessment enrollments.

12. WMF will prepare all required documentation, including staff reports, resolutions ordering the levy and collection of the special assessments, signature authorization forms, and Proposition 218 letter, as needed to submit the annual assessments to the Riverside County Auditor-Controller’s office.

13. Once the annual levies are finalized and submitted to the County, WMF will generate a levy detail report for each District. The reports will be provided to the City (in electronic format and a hard copy) within 90 days of the final submittal to the County. Each report will list the parcel number levied by the District and the total special assessment levied for the fiscal year.

34 14. WMF will serve as the initial and primary contact to City staff, property owners, title companies, and other interested parties for inquiries regarding each District’s administration and annual special assessment installments. A toll free telephone number, to be provided by WMF, will appear on the regular property tax billing next to the specific District line item to facilitate contact with the public. The City may also refer property owners, title companies, and other interested parties with inquiries regarding each District’s administration and annual special assessment installments directly to WMF.

Special District
Formation/Annexation
Services

1. WMF will act as primary point of contact for development community seeking to request the formation of, or annexation to, a City special district. Upon receiving the development documentation package WMF will confirm all pertinent documents have been received for processing.

2. After review of the development documentation package and based upon the characteristics of the development and facilities to be maintained, WMF will assist City in determining whether the development should be annexed into an existing special district or to form a new separate special district.

3. For each new special district formation/annexation, WMF will prepare and provide a timeline which will identify all relevant tasks relating to the formation/annexation. The timeline will be established in accordance with all California Government Code meeting requirements to ensure a smooth and efficient project.

4. WMF will use all submitted and approved information to prepare a budget for the improvements associated with the formation/annexation. The budgets will identify all annual expenses incurred by the special district.

5. WMF will prepare a parcel database to include the parcels proposed to be included in the special district, which will include, but is not be limited to, the special tax or assessment information, principal assessments (if applicable), acreage, square footage, classifications, land use codes, zones, dwelling units, EDU values, property owner information, situs addresses, and tract and lot numbers.

6. In accordance with the established formation documents, WMF will calculate the annual special tax or assessment for each parcel included in the formation/annexation.

35 7. WMF will prepare of all required mapping instruments for the applicable subject special district. This task will include the creation of boundary maps, assessment diagrams, and location exhibits in accordance with applicable California Government Code.

8. WMF will prepare the formation/annexation formation reports and documents. In the case of LMDs, includes preparation of the Engineer’s Report which will include, but not be limited to, the Engineer’s Statement, description of the facilities to be maintained, estimate of cost, method of assessment, and assessment diagram. In the case of CFDs, includes both the Rate and Method of Apportionment (“RMA”) and the Public Hearing report. The RMA will include, but not limited to, all required contents and provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The Public Hearing report will include, but is not limited to, the provisions of California Government Code Section 53321.5 requiring a description of the public services being provided and the estimate of the costs of providing said public services.

9. As necessary, WMF will assist in the preparation of all required legal documents including, but not limited to, staff reports, resolutions, ordinances, special tax/assessment liens, special election ballots, and notice of public hearing.

10. For each item requiring Council action, WMF will attend all Council Meetings which require City Council action and will, as necessary, be available to answer questions posed by the Council, City staff, and/or the public.

Public Safety Tax,
Public Safety Tax Area
and Tax Roll Billing
(Trash, Delinquent
Trash, Nuisance
Abatement)

1. WMF will maintain an electronic database containing parcel characteristic data and annual levy amounts by Assessor’s Parcel Number ("APN"). Database to include, if necessary, current year and historic tax roll information, development and land use information for all parcels where development and land use information is necessary in determining the levy for the APN. Database to be updated annually with current year information for all properties located within the boundaries of these Districts.

2. As necessary, WMF will assist in the preparation of all required legal documents including, but not limited to, staff reports, resolutions, ordinances, special tax/assessment liens, special election ballots, and notice of public hearing.

36 County Service
Area 152 (CSA 152)

1. WMF will maintain and annually update an electronic database containing parcel characteristic data and annual assessment levy amounts by Assessor’s Parcel Number ("APN"). Database to include at a minimum, current year and historic tax roll information, parcel classifications, property owner information, development status and land use classification.

2. WMF will determine the levy requirement for the current Fiscal Year for CSA 152. WMF will calculate and submit the annual levy for CSA 152 in the media, format, and configuration acceptable for submission to the Economic Development Agency (EDA) prior to EDA’s deadline, August 10, and will perform adjustments and corrections to the levy as necessary.

3. WMF will prepare the annual levy for in a format and media acceptable for direct submission to the Auditor-Controller's office prior to the statutory deadline and will perform adjustments and corrections to the levies on the property tax rolls as necessary. WMF will provide staff with a hard copy report of special assessment as calculated.

If corrections/revisions after deadline are necessary, WMF will research, recalculate, and follow City staff’s direction to rectify the issue.

4. WMF will serve as the initial and primary contact to City staff, property owners, title companies, and other interested parties for inquiries regarding each District’s administration and annual special assessment installments. A toll free telephone number, to be provided by WMF, will appear on the regular property tax billing next to the specific District line item to facilitate contact with the public. The City may also refer property owners, title companies, and other interested parties with inquiries regarding each District’s administration and annual special assessment installments directly to WMF.

37 Section 6. Fee Schedule
Fee Schedule
SCH 2022 (06/01/2022)

CLASSIFICATION
Engineers/Project Managers/Planners/Scientists/ Rates
Assessment/Special Tax Consultants/Landscape Architects/Designers $/Hour Principal II.............................................................................................................................. 302.00 Principal I .............................................................................................................................. 287.00 Senior III ............................................................................................................................... 272.00 Senior II ................................................................................................................................ 259.00 Senior I ............................................................................................................................... 250.00 Associate III .......................................................................................................................... 233.00 Associate II ........................................................................................................................... 220.00 Associate I ............................................................................................................................ 210.00 Assistant V ........................................................................................................................... 189.00 Assistant IV .......................................................................................................................... 170.00 Assistant III ........................................................................................................................... 157.00 Assistant II ............................................................................................................................ 142.00 Assistant I ............................................................................................................................. 125.00 Survey Services
2-Person Survey Party .......................................................................................................... 314.00 1-Person Survey Party ......................................................................................................... 221.00 Inspection Services
Construction Manager II ....................................................................................................... 274.00 Construction Manager I ........................................................................................................ 192.00 Inspector (Non-Prevailing Wage) ......................................................................................... 141.00 Inspector Overtime (Non-Prevailing Wage) .......................................................................... 190.00 Inspector (Prevailing Wage) ................................................................................................. 152.00 Inspector Overtime (Prevailing Wage).................................................................................. 200.00 Administrative Services
Project Coordinator .............................................................................................................. 135.00 Administrative Assistant III ................................................................................................... 115.00 Administrative Assistant II .................................................................................................... 102.00 Administrative Assistant I ..................................................................................................... 81.00 Other Direct Expenses
Incidental Charges ............................................................................................................... Cost + 15% Postage ................................................................................................................................ Cost Subcontracted Services ....................................................................................................... Cost + 15% Special Consultant………………………………………………………………………………… 385.00 Survey/Inspection Per Diem.................................................................................................. Prevailing Wage Rate In-House Delivery Up to 1/2 hour.......................................................................................... 34.00 In-House Delivery 1/2 Hour up to 1 Hour.............................................................................. 67.00 In-House Delivery Over 1 Hour up to 2 Hours ...................................................................... 124.00 In-House Delivery Over 2 Hours ........................................................................................... 178.00 Survey/Inspection Vehicle .................................................................................................... 0.81/Mile Mileage ................................................................................................................................. 0.72/Mile Note: All rates are subject to change based on annual inflation and cost of living adjustments. Prevailing wages are dictated by the California Department of Industrial Relations (DIR). As such, the indicated rate will remain in effect until revised rates are published by the DIR. The rate shown shall be subject to renegotiation to remain in compliance with State requirements if prevailing wages are increased by the DIR. * A FINANCE CHARGE of 1 ½ % per month (18% per year) will be added to any unpaid amount commencing thirty (30) days from invoice date. A mechanic’s lien may be filed for any invoice remaining unpaid after thirty (30) days from invoice date.

38 Section 7. Cost Proposal
Annual Administrative Services
DISTRICT FISCAL YEAR 2023-2024 FEE**
Citywide Landscape and Lighting Maintenance District- Zone A and B $9,000.00 Landscape Maintenance District No. 2 (Zones 1 to 18) $14,500.00 Drainage Assessment District No. 1 (Zones 1 to 16) $14,500.00 Assessment Engineering - Subtotal $38,000.00
Other Districts
CFD 2006-1 (Improvement Area 1) $7,000.00
DVD Delinquent Tax Roll Billing $5,800.00
Public Safety Measure Tax (PTAX) $13,200.00
Public Safety Services Tax Area (PTAX 2) $5,300.00
CFD 2010-1 (Services)* $8,500.00
Nuisance Abatement $6,400.00
CSA 152 $2,100.00
Disposal Citywide Tax Roll Billing $4,700.00
Other Districts - Subtotal $53,000.00
Grand Total $91,000.00
PROJECT FISCAL YEAR 2023-2024 FEE***
CFD 2010-1 Annexations and PTAX 2 Zone Establishments $5,000.00 ***Fee paid for by the Applicant.

Direct/Indirect Costs
* $250 for each levied Annexation.
**Fee is inclusive of administration and levy, municipal disclosure, delinquency management, and all other requested services within scope. Annual Fees increase by 2% each year.

Annexation Services
For the services performed related to the projects which are not listed herein, compensation shall be at the hourly rates set forth in the attached Fee Schedule, together with reimbursement, at cost, for incidental expenses incurred in connection with such services, together with reimbursement for outside services at cost plus 15%.

WMF is committed to continuing to provide high quality Special District Administration Services to the City. After analyzing the scope of work for this contract, we have provided our fees below as well as our hourly rates and direct and indirect costs for the City’s consideration.

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FISCAL YEAR 2022-2023

ADMINISTRATION REPORT

CITY OF ANAHEIM
COMMUNITY FACILITIES DISTRICT NO. 06-2
July 28, 2022

www.FinanceDTA.com
100 Bayview Circle, Suite 100
Newport Beach, CA 92660
FISCAL YEAR 2022-2023

ADMINISTRATION REPORT
City of Anaheim
Community Facilities District No. 06-2
Prepared for:

City of Anaheim
200 South Anaheim Boulevard
Anaheim, CA 92805

TABLE

OF CONTENTS

SECTION
INTRODUCTION ....................................................................... 1 I BACKGROUND.................................................................2 A CFD Location and Boundaries .........................................2 B CFD Formation ....................................................................2 C CFD Bonded Indebtedness ...............................................2 D Facilities Financed by CFD No. 06-2............................... 2 II SPECIAL TAX REQUIREMENT .......................................3 III SPECIAL TAXES................................................................5 A Billing And Collection Of Special Taxes......................... 6 B Maximum Special Tax ........................................................ 7

IV SPECIAL TAX CLASSIFICATIONS AND
DEVELOPMENT STATUS................................................8 A Special Tax Classifications................................................8 B Development Status ........................................................... 8 V DELINQUENT SPECIAL TAXES......................................9 A Foreclosure Covenant ....................................................... 9 VI FUNDS AND ACCOUNTS .............................................10 A Description of Funds and Accounts .............................10 B Flow of Funds ....................................................................10 C Account Balances .............................................................10 VII DISCLOSURE REPORTS AND NOTICES ....................12 A California Debt and Investment Advisory
Commission Yearly Fiscal Status Report ..................... 12 B Report of Special Tax Revenues, Expenditures, and
Status of Improvements .................................................. 12 C Continuing Disclosure Report ....................................... 12 D Assembly Bill No. 1666 .................................................... 12 E Assembly Bill No. 2109 .................................................... 13 F Senate Bill No. 1029 ......................................................... 13 G Notice of Special Tax ....................................................... 13

APPENDICES

APPENDIX A BOUNDARY MAP

APPENDIX B DEBT SERVICE SCHEDULE

APPENDIX C RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX APPENDIX D SPECIAL TAX ROLL, FISCAL YEAR 2022-2023

APPENDIX E DELINQUENCY REPORT

APPENDIX F CDIAC REPORT
APPENDIX G SB 165 REPORT
APPENDIX H AB 2109 REPORT

APPENDIX I SAMPLE NOTICE OF SPECIAL TAX

1 INTRODUCTION
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
www.FinanceDTA.com

INTRODUCTION
This report provides an analysis of the financial and administrative obligations of Community Facilities District No. 06-2 ("CFD No. 06-2") of the City of Anaheim (the "City") resulting from the sale of the $9,060,000 Special Tax Bonds issued in February 2007 (the “2007 Bonds”). CFD No. 06-2 issued $7,540,000 in bonds in August 2016 (the “2016 Bonds”) to refund the 2007 Bonds. CFD No. 06-2 has covenanted to the owners of the 2016 Bonds not to issue any additional bonds except for refunding Bonds.

CFD No. 06-2 is a legally constituted governmental entity established under the Mello- Roos Community Facilities Act of 1982 (the "Act"), as amended. The Act provides a method for the financing of certain public capital facilities and services. Specifically, CFD No. 06-2 is authorized to issue up to $12,000,000 in bonds. The current outstanding principal amount is equal to $6,005,000, which is based on principal paid through September 1, 2021. In addition, the outstanding principal amount above reflects an optional bond redemption in which $50,000 in bonds were called on September 1, 2021. No future optional bond redemptions are planned at this time.

The 2016 Bonds are scheduled to be paid off in 2037. Pursuant to the Rate and Method of Apportionment (“RMA”), the special tax shall be levied for a period not to exceed forty years commencing in Fiscal Year 2007-2008.

The bonded indebtedness of CFD No. 06-2 is both secured and repaid through the annual levy and collection of special taxes from all property subject to the tax within the community facilities district. In calculating the special tax liability for Fiscal Year ("FY") 2022-2023, this report examines the current and prior fiscal years' financial obligations as well as recent development activity.

This report is organized into the following sections:  Section I – Background;  Section II –Special Tax Requirement;  Section III – Special Taxes;  Section IV – Special Tax Classifications and Development Status;  Section V – Delinquent Special Taxes;  Section VI – Funds and Accounts; and  Section VII - Disclosure Reports and Notices.

2 SECTION I

BACKGROUND
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
www.FinanceDTA.com

I BACKGROUND
A CFD Location and Boundaries
CFD No. 06-2 (commonly known as "Stadium Lofts") encompasses approximately 6.6 acres located in the area of the City of Anaheim known as the Platinum Triangle. Stadium Lofts is located just to the north-west of the Anaheim Stadium. Maps showing the boundaries of CFD No. 06-2 are included in Appendix A.

B CFD Formation
On July 11, 2006 the City Council of the City of Anaheim (the "City") acting on behalf of CFD No. 06-2 adopted a resolution of intention to establish the CFD, authorize the levy of special taxes pursuant to an Amended and Restated Rate and Method of Apportionment of Special Tax (the "RMA"), and incur bond indebtedness in an amount not to exceed $12,000,000. A public hearing was held on September 12, 2006 and immediately thereafter an election conducted in which the qualified electors voted to authorize the issuance of up to $12,000,000 in bonds and approved the levy of special taxes. C CFD Bonded Indebtedness Special tax bonds in the amount of $9,060,000 were issued in February 2007 (the "2007 Bonds"). CFD No. 06-2 issued $7,540,000 in bonds in August 2016 (the “2016 Bonds”) to refund the 2007 Bonds. Additional bonds may be issued by CFD No. 06-2 on a parity with the 2016 Bonds, but only for the purpose of refunding all or a portion of the 2016 Bonds.

D Facilities Financed by CFD No. 06-2
A general description of the facilities authorized to be funded by CFD No. 06-2 is listed below.  Roadway & right-of-way improvements including utilities, curb and gutter, lighting, sidewalks, irrigation, landscaping, traffic control and signalization, design, engineering, permitting, grading, and demolition, and any and all appurtenant facilities relating to the foregoing;  Sewer improvements including survey, design, engineering, all costs of site acquisition, planning, engineering legal services, materials testing, coordination, construction, staking, construction inspection and any and all appurtenant facilities relating to the foregoing;  Impact Fee Facilities including Traffic Signal Fees, Library Fees, Platinum Triangle Park Fees, Police Facility Fees, Fire Facility Fees, Connector Street Fees, Water Facility Fees, Electric Utilities Undergrounding; and
 Water, Electrical, Storm Drain, and Fire Station Facilities Costs.

3 SECTION II

SPECIAL TAX REQUIREMENT
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
www.FinanceDTA.com

II SPECIAL TAX REQUIREMENT
The FY 2022-2023 special tax requirement for CFD No. 06-2 is $508,182. The special tax requirement, as defined in the RMA, means that amount required or estimated to be required in any fiscal year to pay: (1) debt service and other periodic costs on the 2016 Bonds due in the calendar year commencing in such fiscal year; (2) directly for the acquisition or construction of authorized facilities of CFD No. 06-2, to the extent that the inclusion of such amount does not increase the special tax levy beyond the first step in Section F of the RMA; (3) administrative expenses; (4) any amount required to increase the amount on deposit in any reserve fund established for the 2016 Bonds to the reserve requirement applicable thereto; (5) for reasonably anticipated delinquent special taxes based on the delinquency rate for special taxes levied in the previous fiscal year; and (6) the costs of remarketing, credit enhancement and liquidity facility and reserve surety fees; less (7) a credit for funds available to reduce the annual special tax levy, as determined by the CFD Administrator pursuant to the Indenture. The debt service schedule for the 2016 Bonds is included in Appendix B. The FY 2022-2023 special tax requirement is shown in Table II-1 and the percentage allocation of budgeted expenditures by line item is shown in Figure II-1 below. Table II-1: Special Tax Requirement
Subtotal Total
Budgeted Fiscal Year 2022-2023 Expenditures: $514,327
Interest Due March 1, 2023
1 $80,934
Interest Due September 1, 2023
1 $80,934
Principal Due September 1, 2023
1 $320,000
County Collection Charge $1,538
Administrative Expenses $30,000
Delinquency Contingency $775
Prior Year Surplus Applied as a Credit ($6,000)
Fiscal Year 2022-2023 Special Tax Requirement $508,182
[1] Reflects revised debt service following bond call on September 1, 2021.

4 SECTION II

SPECIAL TAX REQUIREMENT
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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Figure II-1: Fiscal Year 2022-2023 Budgeted Expenditures Interest (3/1/23)

15.74%
Interest (9/1/23)

15.74%
Principal (9/1/23)

62.23%
County
Collection Charge

0.30% Delinquency
Contingency

0.15%
Administrative
Expenses

5.83%

5 SECTION III

SPECIAL TAXES
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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III SPECIAL TAXES
The RMA contains the special tax apportionment methodology. A copy of the RMA is included in Appendix C. The RMA apportions the special tax requirement in four steps as follows:  First, the special tax shall be levied proportionately on each parcel of Developed Property at up to 100% of the applicable Assigned Special Tax. If the resulting special taxes are less than the special tax requirement, the second step is applied.  Second, the special tax on each parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for such parcels. Again, if the resulting special taxes are less than the special tax requirement, the third step is applied.  Third, the special tax shall be levied proportionately on each acre of Taxable Property Owner Association Property at up to its Maximum Special Tax.  Fourth, if additional special taxes are needed, the special tax shall be levied proportionately on each acre of Taxable Public Property at up to its Maximum Special Tax.

The special tax requirement for FY 2022-2023 equals $508,182. Application of the special taxes under the first step generates special tax revenues of $779,550, which is more than sufficient to meet all of the obligations for CFD No. 06-2 as outlined in Section II.

Therefore, the FY 2022-2023 special tax for each parcel of Developed Property is equal to

65.19% of the Assigned Special Tax which generates the amount of $508,182. The FY 2022- 2023 special taxes levied on Developed Property are shown in Table III-1 below. For comparison, the amounts levied in FY 2021-2022 are also shown. Figure III-1 below depicts the trend of actual special taxes levied since CFD No. 06-2 was formed through FY 2022-2023. The Special Tax Roll, which lists the actual special tax levied against each parcel, is shown in Appendix D.

6 SECTION III

SPECIAL TAXES
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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Table III-1: Special Taxes Levied on Developed Property Tax
Class Land Use
FY 2021-2022
Special Tax per
Unit/SF
FY 2022-2023
Special Tax per
Unit/SF
1 Residential Property (> 1,250 SF) $2,268.10 $2,235.33 2 Residential Property (1,100 – 1,249 SF) $2,016.09 $1,986.96 3 Residential Property (900 – 1,099 SF) $1,549.77 $1,527.38 4 Residential Property (700 – 899 SF) $976.97 $962.84
5 Residential Property (< 700 SF) $864.51 $852.02
6 Non-Residential Property square foot $1.2299 $1.2121
Figure III-1: Trend of Special Taxes Levied on Developed Property Since Formation A Billing and Collection of Special Taxes
CFD No. 06-2 special taxes are billed and collected, along with regular property taxes, by the Treasurer Tax Collector of the County of Orange. In accordance with the Act, the special taxes are submitted to the Auditor-Controller of the County of Orange in August each year. As required by the County of Orange, the submittal package includes a certified copy of the resolution authorizing the levy of the special taxes along with the list of special taxes by Assessor's Parcel Number in the specified electronic format. The County of Orange has assigned District Code 051 - Tax Code R1 to CFD No. 06-2. The FY 2022- 2023 special taxes are expected to be remitted to the City by the Treasurer Tax Collector in 0%
15%
30%
45%
60%
75%
90%
% of Maximum Special Tax Rate
Fiscal Year

7 SECTION III

SPECIAL TAXES
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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accordance with the following FY 2021-2022 schedule:  Secured Payment #1: November 10  Secured Payment #5: March 10  Secured Payment #2: November 24  Secured Payment #6: April 21  Secured Payment #3: December 23  Secured Payment #7: May 19  Secured Payment #4: January 13  Secured Payment #8: July 14 B Maximum Special Tax
Pursuant to Section C of the RMA, the Maximum Special Tax for a parcel of Developed Property is equal to the greater of (i) the Backup Special Tax or (ii) the Assigned Special Tax set forth in Table 1 of the RMA.

The Backup Special Tax was established as a contingency against loss of dwelling units and/or significant reductions in Residential Floor Area. Since the actual development is consistent with original plans, the contingency for which the Backup Special Tax was established does not exist and hence, all discussion of the Maximum Special Tax for Developed Property focuses on the Assigned Special Tax set forth in Table 1 of the RMA.

The Assigned Special Taxes vary by land use type and by residential floor area in the case of residential property and are shown in Table III-2 below.

Table III-2: Assigned Special Tax
Tax Class Land Use
Assigned/Maximum
Special Tax per
Unit/SF
1 Residential Property (> 1,250 SF) $3,429.00
2 Residential Property (1,100 – 1,249 SF) $3,048.00
3 Residential Property (900 – 1,099 SF) $2,343.00
4 Residential Property (700 – 899 SF) $1,477.00
5 Residential Property (< 700 SF) $1,307.00
6 Non-Residential Property $1.8594

8 SECTION IV

SPECIAL TAX CLASSIFICATIONS

AND DEVELOPMENT STATUS
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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IV SPECIAL TAX CLASSIFICATIONS AND DEVELOPMENT STATUS
A Special Tax Classifications
The RMA establishes six Developed Property special tax classifications based on land use type and residential floor area. The Developed Property classifications are shown in Table IV-1 below.

Table IV-1: Developed Property Classifications
Tax Class Description Residential Floor Area
1 Residential Property > 1,250 SF
2 Residential Property 1,100 - 1,249 SF
3 Residential Property 900 - 1,099 SF
4 Residential Property 700 - 899 SF
5 Residential Property < 700 SF
6 Non-Residential Property NA
Developed Property includes all parcels for which a building permit was issued as of March 1 preceding the fiscal year for which the special tax is being levied. Hence, all property in CFD No. 06-2 for which building permits were issued prior to March 1, 2022 will be classified as Developed Property in FY 2022-2023. Review of the City of Anaheim’s building permit records indicated that all building permits for Residential Property and Non-Residential Property within the district were issued prior to the formation of CFD No. 06-2. No new building permits are expected to be issued in the future.

B Development Status
As shown in Table IV-2 below, CFD No. 06-2 includes a total of 390 residential dwelling units and 10,542 building square feet of Non-Residential Property.

Table IV-2: Cumulative Developed Property
Tax Class Description Residential Floor Area Units/S.F. 1 Residential Property > 1,250 s. f. 12 Units
2 Residential Property 1,100 - 1,249 s. f. 12 Units
3 Residential Property 900 - 1,099 s. f. 172 Units
4 Residential Property 700 - 899 s. f. 151 Units
5 Residential Property < 700 s.f. 43 Units
6 Non-Residential Property N/A 10,542 s.f.

9 SECTION V

DELINQUENT SPECIAL TAXES
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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V DELINQUENT SPECIAL TAXES
As of July 19, 2022, the County had collected $514,856 of the $515,631 in special taxes levied for FY 2021-2022 resulting in a delinquency rate of 0.15 percent, as presented in Table V-1 below. Delinquent special taxes are subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem property taxes and are also subject to the foreclosure covenant provisions discussed below. Table V-1 illustrates the trend of special tax delinquencies in recent years. Of the 394 parcels that were subject to the special tax, two failed to pay all or some of the FY 2021-2022 special taxes in a timely manner. A detailed report of delinquent parcels is included as Appendix E.

Table V-1: Special Tax Delinquencies Summary
Fiscal Year Amount
Enrolled
Current
Amount
Delinquent
Current Parcels
Delinquent
Current
Percent
Delinquent
2021-2022 $515,631 $775 1 0.15%
2020-2021 $514,950 $0 0 0.00%
2019-2020 $513,328 $0 0 0.00%
2018-2019 $507,505 $0 0 0.00%
2017-2018 $512,319 $0 0 0.00%
A Foreclosure Covenant
CFD No. 06-2 has covenanted to commence foreclosure proceedings no later than October 1 of each year on any parcel with delinquent special taxes as of August 15 of such year provided, however, that CFD No. 06-2 shall not be required to commence foreclosure proceedings if (a) the total special tax delinquency in CFD No. 06-2 for such fiscal year is less than 5% of the total special tax levied in such year, and (b) the amount then on deposit in the Reserve Fund is equal to the Reserve Requirement. Notwithstanding the foregoing, CFD No. 06-2 shall diligently institute, prosecute and pursue foreclosure proceedings against any single property owner delinquent in excess of $5,000 in the payment of special taxes.

As indicated above, the FY 2021-2022 delinquency rate is less than five percent (5.0%) and there are currently no parcels with delinquent special taxes in excess of $5,000. Based on the current level of delinquencies, CFD No. 06-2 is not obligated to commence foreclosure on any parcels.

10 SECTION VI

FUNDS AND ACCOUNTS
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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VI FUNDS AND ACCOUNTS
A Description of Funds and Accounts
Seven funds for CFD No. 06-2 were established under the 2016 Indenture. These funds include the Costs of Issuance Fund, Special Tax Fund, Bond Fund, Redemption Fund, Reserve Fund, Rebate Fund, and Administrative Expense Fund.

The Costs of Issuance Fund was created exclusively to pay the costs of issuance of the 2016 Bonds. In January 2017, the Trustee transferred the amount remaining in the Cost of Issuance Fund to the Bond Fund and, upon making such transfer, the Cost of Issuance Fund was closed.

The Bond Fund was created exclusively for the payment of principal and interest and any premium on the bonds. Within the Bond Fund, the Trustee shall establish and maintain a separate account designated the Principal Account and a separate account designated as the Interest Account.

The Reserve Fund was established exclusively to ensure payment of interest and principal due on the bonds in the event of a deficiency in the Bond Fund. The Reserve Requirement is equal to the maximum annual debt service for the bonds or $487,075. Any amount in excess of the Reserve Requirement shall be transferred to the Interest Account, Principal Account, and/or Redemption Fund, as applicable.

B Flow of Funds
All receipts from the annual collection of special taxes for CFD No. 06-2 are deposited in the Special Tax Fund, which is held in trust by the Trustee. The 2016 Indenture instructs the Trustee to transfer that money on the business day preceding each interest payment date to other funds and accounts in the amount and priority set forth below:  Administrative Expense Fund – an amount necessary to pay administrative expenses of CFD No. 06-2;  Interest Account – an amount necessary to cause the amount on deposit in the Interest Account to be equal to the interest due on the Bonds on such interest payment date;  Principal Account – an amount necessary to cause the amount on deposit in the Principal Account to be equal to the principal due on the Bonds on such interest payment date;  Reserve Fund – any amount that may be necessary to replenish the Reserve Fund to the Reserve Requirement.

Monies held in any of the aforementioned funds and accounts can be invested by the Trustee at the direction of the City and in conformance with the limitations set forth in the 2016 Indenture. Investment interest earnings, if any, will generally be applied to the fund

11 SECTION VI

FUNDS AND ACCOUNTS
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or account for which the investment is made.

C Account Balances
The funds and accounts relating to CFD No. 06-2 established by the 2016 Indenture have the balances shown in Table VI-1 below:

Table VI-1: Account Balances as of May 31, 2022
Funds and Accounts Amount
Administrative Expense Fund $4,422
Interest Account $9,657
Principal Account $25
Bond Fund $0
Reserve Fund $487,075
Special Tax Fund $437,436
Redemption Fund $0
Rebate Fund $0

12 SECTION VII

DISCLOSURE REPORTS AND

NOTICES
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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VII DISCLOSURE REPORTS AND NOTICES
A California Debt and Investment Advisory Commission Yearly Fiscal Status Report Pursuant to Section 53359.5 of the Act, CFD No. 06-2 is required to prepare and submit an annual report to the California Debt and Investment Advisory Commission (the "CDIAC") by October 30 of each year. The report contents are as follows:  The principal amount of bonds outstanding:  The balance in the bond reserve fund;  The balance in the capitalized interest fund, if any;  The number of parcels which are delinquent with respect to their special taxes, the amount that each parcel is delinquent, the length of time that each has been delinquent, and if and when foreclosure was commenced for each delinquent parcel;  The balance of any construction funds, if any; and  The assessed value of all parcels subject to special tax to repay the bonds as shown on the most recent equalized roll.

A copy of the FY 2021-2022 CDIAC report for CFD No. 06-2 is attached hereto as Appendix F. B Report of Special Tax Revenues, Expenditures, and Status of Improvements Pursuant to Government Code Section 50075.3, an annual report of revenues, expenditures, and the status of improvements funded thereby must be filed in connection with all special tax measures approved on or after January 1, 2001. The report for CFD No. 06-2 is prepared in November of each year and is filed with the City.

A copy of the most recent report for CFD No. 06-2 is attached hereto as Appendix G.

C Continuing Disclosure Report
A separate annual report (the "Report") is prepared pursuant to the Continuing Disclosure Agreement executed by CFD No. 06-2 and the Trustee in connection with the sale and issuance of the 2016 Bonds. As provided in Section 2 of the 2016 Continuing Disclosure Agreement, a copy of the Report is filed by March 1 of each year with the Municipal Securities Rulemaking Board’s (“MSRB”) Electronic Municipal Market Access (“EMMA”) system, or such other electronic system designated by the MSRB.

D Assembly Bill No. 1666
Pursuant to Assembly Bill No. 1666, approved on July 25, 2016, the City must, within seven months after the last day of each fiscal year (January 31, 2022 as fiscal year ended June 30, 2021), display prominently on its Internet Web site all of the following information:

13 SECTION VII

DISCLOSURE REPORTS AND

NOTICES
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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 A copy of an annual report for that fiscal year if requested pursuant to Section 53343.1 (Requiring CFDs formed after January 1, 1992 to prepare an annual report only if requested). There have been no requests for a copy of an annual report for CFD No. 06-2.  A copy of the report provided to the California Debt and Investment Advisory Commission pursuant to Section 53359.5.  A copy of the report provided to the Controller’s office pursuant to Section 12463.2 (otherwise known as AB 2109)
E Assembly Bill No. 2109
Pursuant to Assembly Bill No. 2109, approved on September 29, 2014, the City is required to report the following items to the State Controller’s Office:  Type and rate of parcel tax imposed;  Number of parcels subject to the parcel tax;  Number of parcels exempt from the parcel tax;  Sunset date of parcel tax, if any;  Amount of revenue received from the parcel tax; and  Manner in which the revenue received from the parcel tax is being used. However, parcel tax information does not need to be reported if such taxes are levied by a state agency, K-12 school, or community college district.

The City met all AB 2109 requirements in Fiscal Year 2021-2022. A copy of the most recent AB 2109 report for CFD No. 06-2 is attached hereto as Appendix H. F Senate Bill No. 1029 The reporting requirements related to Senate Bill No. 1029 commence in January 2018. Pursuant to Government Code Section 8855(k), effective January 1, 2017, state and local issuers are required to submit an annual debt transparency report for any issue of debt for which they have submitted a Report of Final Sale during the reporting period. The annual debt transparency report is due to CDIAC within seven months of the close of the reporting period (January 31, 2022 as fiscal year ended June 30, 2021).

The Series 2016 Bonds were issued before January 1, 2017 and are subsequently not subject to the Senate Bill No. 1029 reporting requirements.

G Notice of Special Tax
A sample Notice of Special Tax for CFD No. 06-2 is attached hereto as Appendix I. On behalf of the City and CFD No. 06-2, DTA prepares and furnishes Notices of Special Tax to enable homeowners to satisfy the notice requirements of Civil Code Section 1102.6b when

14 SECTION VII

DISCLOSURE REPORTS AND

NOTICES
City of Anaheim Community Facilities District No. 06-2 July 28, 2022 Fiscal Year 2022-2023 Administration Report
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selling their home. Pursuant to Government Code Section 53340.2, DTA furnishes notices within 5 working days of receiving a request for the notice.

APPENDIX A
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report

BOUNDARY MAP

APPENDIX B
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report

DEBT SERVICE SCHEDULE

CITY OF ANAHEIM
COMMUNITY FACILITIES DISTRICT NO. 06-2
SPECIAL TAX BONDS, SERIES 2016

REVISED DEBT SERVICE SCHEDULE
FOLLOWING SEPTEMBER 1, 2021 BOND CALL
Semi-Annual Annual
Principal Interest Total Total
September 1 2021 2.000% $310,000 $87,988 $397,988 NA
March 1 2022 2.000% $0 $84,084 $84,084
September 1 2022 2.000% $315,000 $84,084 $399,084 $483,169 2023 2.000% $320,000 $161,869 $481,869
2024 2.000% $330,000 $155,469 $485,469
2025 2.000% $335,000 $148,869 $483,869
2026 2.000% $340,000 $142,169 $482,169
2027 2.250% $350,000 $135,369 $485,369
2028 2.375% $355,000 $127,494 $482,494
2029 2.500% $360,000 $119,063 $479,063
2030 2.625% $370,000 $110,063 $480,063
2031 3.000% $375,000 $100,350 $475,350
2032 4.000% $390,000 $89,100 $479,100
2033 4.000% $405,000 $73,500 $478,500
2034 4.000% $420,000 $57,300 $477,300
2035 3.000% $440,000 $40,500 $480,500
2036 3.000% $450,000 $27,300 $477,300
2037 3.000% $460,000 $13,800 $473,800
$6,325,000 $1,758,369 $7,685,381

APPENDIX C
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report

RATE AND METHOD OF

APPORTIONMENT OF

SPECIAL TAX

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 1

AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT FOR
CITY OF ANAHEIM COMMUNITY FACILITIES DISTRICT NO. 06-2
(STADIUM LOFTS)
To the extent provided herein a Special Tax shall be levied on all Assessor’s Parcels in the City of Anaheim Community Facilities District No. 06-2 (Stadium Lofts) ("CFD No. 06-2") and collected each Fiscal Year commencing in Fiscal Year 2007-08, in an amount determined by the Council through the application of the procedures described below. All of the real property in CFD No. 06- 2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the number of acres of land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other recorded County parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter

2.5 of Part 1 of Division 2 of Title 5 of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs related to the administration of CFD No. 06-2: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City, CFD No. 06-2, or any designee thereof); the costs of collecting the Special Taxes (whether by the County, the City, through foreclosure proceedings, or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 06-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 06-2 or any designee thereof of complying with City, CFD No. 06-2 or obligated persons disclosure requirements associated with applicable federal and state securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 06-2 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes; the costs of City staff time and reasonable overhead relating to the administration of CFD No. 06-2; and any other costs or third party expenses estimated or advanced by the City or CFD No. 06-2 for any other administrative purposes of CFD No. 06-2. "Assessor’s Parcel" means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.

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CFD No. 06-2 (Stadium Lofts) Page 2
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.1 below. "Backup Special Tax" means the Backup Special Tax applicable to each Assessor’s Parcel of Residential Property, as determined in accordance with Section C.1 below. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 06-2 under the Act. "CFD Administrator" means an official of the City who is responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes, and other duties as set forth herein.
"CFD No. 06-2" means the City of Anaheim Community Facilities District No. 06-2 (Stadium Lofts).
"City" means the City of Anaheim.
"Council" means the City Council of the City, acting as the legislative body of CFD No. 06-

2. "County" means the County of Orange.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Property Owner Association Property or Taxable Public Property, for which a building permit for construction of new building square footage was issued after January 1, 2005 and prior to March 1 of the prior Fiscal Year.
"Final Map" means (i) a final map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) that creates individual lots or parcels for which building permits may be issued, or (ii) for condominiums, a final map approved by the City and a condominium plan recorded pursuant to California Civil Code Section 1352 creating such individual lots or parcels. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1.

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CFD No. 06-2 (Stadium Lofts) Page 3
"Maximum Special Tax" means, with respect to an Assessor’s Parcel of Taxable Property, the Maximum Special Tax, determined in accordance with Section C.1 below, that can be levied in any Fiscal Year on such Assessor’s Parcel.
"Non-Residential Floor Area" means for Non-Residential Property the total of the gross area of the floor surfaces within the exterior wall of the building, not including space devoted to residential dwelling units, stairwells, separate storage areas, required corridors, public restrooms, elevator shafts, light courts, vehicle parking and areas incident thereto, mechanical equipment incidental to the operation of such building, and covered public pedestrian circulation areas, including atriums, lobbies, plazas, patios, decks, arcades and similar areas, except such public circulation areas or portions thereof that are used solely for commercial purposes. The amount of floor area shall be determined by reference to the building permit(s) issued by the City, or if square footage is not available from this source, as otherwise determined by the CFD Administrator.
"Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) was issued for a non-residential use. "Outstanding Bonds" means all Bonds which are outstanding under and in accordance with the provisions of the Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 06-2 that is owned by or irrevocably dedicated to a property owner association, including any master or sub-association. "Proportionately" means (a) with respect to the Special Tax for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor’s Parcels of Developed Property; (b) with respect to the Special Tax for Taxable Property Owner Association Property that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Property Owner Association Property; and (c) with respect to the Special Tax for Taxable Public Property that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels of Taxable Public Property.
"Public Property" means, for each Fiscal Year, any property within the boundaries of CFD No. 06-2 that (i) is owned by or irrevocably offered for dedication to the federal government, the State, the County, the City or any other public agency, provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use; or (ii) is encumbered by a public utility easement making impractical its use for any purpose other than that set forth in the easement.
"Reserve Requirement" means the reserve requirement for the Bonds as defined in the Indenture.
"Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang,

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 4
patio, enclosed patio, or similar area. The amount of floor area shall be determined by reference to the building permit(s) issued by the City, or if square footage is not available from this source, as otherwise determined by the CFD Administrator based on the recorded condominium plan or other available documents.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units.
"Special Tax" means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property, Taxable Property Owner Association Property, and Taxable Public Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required or estimated to be required in any Fiscal Year to pay: (1) debt service and other periodic costs on the Bonds due in the calendar year commencing in such Fiscal Year; (2) directly for the acquisition or construction of authorized facilities of CFD No. 06-2; (3) Administrative Expenses; (4) any amount required to increase the amount on deposit in any reserve fund established for the Bonds to the Reserve Requirement applicable thereto; (5) for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; and (6) the costs of remarketing, credit enhancement and liquidity facility and reserve surety fees; less (7) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture. "State" means the State of California.
"Taxable Property" means, for each Fiscal Year, all of the property within the boundaries of CFD No. 06-2 which is not exempt from the Special Tax pursuant to law or Section E below.
"Taxable Property Owner Association Property" means, for each Fiscal Year, all Assessor’s Parcels of Property Owner Association Property that are not exempt from the Special Tax pursuant to Section E below.
"Taxable Public Property" means, for each Fiscal Year, all Assessor’s Parcels of Public Property that are not exempt from the Special Tax pursuant to law or Section E below. "Trustee" means the trustee or fiscal agent under the Indenture.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2007-08, all Taxable Property within CFD No. 06-2 shall be classified as Developed Property (which shall be further classified as Residential Property and Non-Residential Property), Taxable Property Owner Association Property, and Taxable Public Property and shall be subject to the Special Tax in accordance with the rate and method of apportionment determined pursuant to Sections C and D below.

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 5
Developed Property shall be further classified as Residential Property and Non-Residential Property.

C. MAXIMUM SPECIAL TAX

1. Developed Property
(a) Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.
(b) Assigned Special Tax
The Assigned Special Tax for each residential unit shall be based on the Residential Floor Area of such unit. The Assigned Special Tax for NonResidential Property shall be based on the amount of Non-Residential Floor Area located on the Assessor’s Parcel.

The Assigned Special Tax for each Land Use Class is shown below in Table

1. TABLE 1
Assigned Special Tax for Developed Property
Land
Use
Class Description Residential Floor Area Assigned Special Tax 1 Residential Property > 1,250 sq. ft. $3,429 per unit
2 Residential Property 1,100 – 1,249 sq. ft. $3,048 per unit 3 Residential Property 900 – 1,099 sq. ft. $2,343 per unit 4 Residential Property 700 – 899 sq. ft. $1,477 per unit 5 Residential Property < 700 sq. ft. $1,307 per unit
6 Non-Residential Property Not Applicable $1.8594 per square foot of Non-Residential Floor Area
(c) Backup Special Tax
The Backup Special Tax for each Assessor’s Parcel of Residential Property shall equal $1,999 per unit.

There shall be no Backup Special Tax levied on Non-Residential Property.

Notwithstanding the foregoing, if all or any portion of a Final Map is

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 6
subsequently changed or modified in a manner that results in fewer than 390 residential units, then the Backup Special Tax for each Assessor’s Parcel of Residential Property within the area that is changed or modified shall be a rate per unit calculated as follows:
(1) Determine the total Backup Special Tax anticipated to apply to the changed or modified portion of the Final Map prior to the change or modification.
(2) The result of paragraph (a) above shall be divided by the total number of residential units which exist in such changed or modified Final Map area, as reasonably determined by the CFD Administrator. (3) The result is the Backup Special Tax per unit which shall be applicable to all Assessor’s Parcels of Residential Property in such changed or modified portion of the Final Map.

2. Taxable Property Owner Association Property and Taxable Public Property

The Maximum Special Tax for Taxable Property Owner Association Property and Taxable Public Property shall be $139,481 per Acre.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2007-08 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and the Council shall levy the Special Tax as follows:

First: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax as needed to satisfy the Special Tax Requirement;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Special Tax shall be levied Proportionately on each Acre of Taxable Property Owner Association Property at up to the Maximum Special Tax for Taxable Property Owner Association Property;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Acre of Taxable Public Property at up to the Maximum Special Tax for Taxable Public Property.

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 7
Notwithstanding the above, under no circumstances shall the Special Tax levied against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 06-2.

E. EXEMPTIONS
No Special Tax shall be levied on up to 417,618 building square feet of Property Owner Association Property and 0.4264 Acres of Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property or Public Property.

Property Owner Association Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of steps three and four in Section D.1 above at up to 100% of the applicable Maximum Special Tax for Taxable Property Owner Association Property and Taxable Public Property.

F. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct and requesting a refund may file a written notice of appeal and refund to that effect with the CFD Administrator not later than one calendar year after having paid the Special Tax that is disputed. The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and decide the appeal. If the CFD Administrator's decision requires the Special Tax be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the next Special Tax levy. Any dispute over the decision of the CFD Administrator shall be referred to the City Council and the decision of the City Council shall be final. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to any legal action by such owner.

G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 06-2 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations.

H. PREPAYMENT OF SPECIAL TAX
The Special Tax may be prepaid as described below.

The following definitions apply to this Section H:

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 8
"CFD Public Facilities" means either $7.7 million in 2006 dollars, which shall increase by the Construction Inflation Index on July 1, 2007, and on each July 1 thereafter, or such lower number as shall be determined by the Council concurrently with a covenant by CFD No. 06- 2, made for the benefit of the owners of Bonds, that no additional Bonds (other than refunding Bonds issued under the Act) payable from the Special Tax will be issued by CFD No. 06-2.
"Construction Fund" means a fund or account, however denominated, specifically identified in the Indenture to hold funds which are available for expenditure to acquire or construct public facilities eligible for financing by CFD No. 06-2 under the Act. "Construction Inflation Index" means, for a Fiscal Year, the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs previously paid from the Construction Fund, (ii) moneys currently on deposit in the Construction Fund, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance public facilities costs.
"Outstanding Bonds" means, for purposes of this Section H, all Bonds which are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year.
"Reserve Fund" means the fund established under the Indenture as a reserve for the payment of principal of, and interest and any premium on, the Bonds.

1. Prepayment in Full
The Maximum Special Tax on any Assessor’s Parcel of Developed Property may be prepaid. The Special Tax obligation applicable to such Assessor’s Parcel in CFD No. 06-2 may be fully prepaid and the obligation of the Assessor’s Parcel to pay the Special Tax permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the Prepayment Amount (defined below) of such Assessor’s Parcel. The CFD Administrator may charge a reasonable fee for providing this calculation.

The Prepayment Amount shall be calculated as summarized below (capitalized terms as defined below):

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 9
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount shall be calculated as follows:

Paragraph No.:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. Compute the Maximum Special Tax for the Assessor’s Parcel to be prepaid.

3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total Maximum Special Tax for the entire CFD No. 06-2 at buildout (adjusted to reflect the reduction in Maximum Special Tax revenues from any Assessor’s Parcels which have prepaid their Special Tax obligation in full or in part).

4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be paid or redeemed (the "Bond Redemption Amount").

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium").

6. Compute the current Future Facilities Costs.

7. Multiply the quotient computed pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount").

8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses from the date of

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 10
prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.

11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount").

12. Verify the administrative fees and expenses of No. 06-2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses").

13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of:
(a) the expected reduction in the Reserve Requirement, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new Reserve Requirement in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the Reserve Fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amount computed pursuant to paragraph 13 (the "Prepayment Amount").

15. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, and 13 shall be deposited into the appropriate fund or account established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments thereon. The amount computed pursuant to paragraph 7 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 06-2.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund or account established under the Indenture to be used with the next redemption of Bonds or to make debt service payments thereon.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined under paragraph 11 (above), the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for such Assessor’s Parcel from the County tax rolls. With respect to any Assessor's Parcel on which the Special Tax is prepaid and permanently satisfied pursuant hereto, the Council shall cause a notice of cancellation of special tax lien to be recorded in compliance with the Act, to indicate the prepayment and permanent satisfaction of such Special Tax and the cancellation of the Special Tax lien on such Assessor’s Parcel.

City of Anaheim August 30, 2006
CFD No. 06-2 (Stadium Lofts) Page 11

2. Prepayment in Part
The Maximum Special Tax on any Assessor’s Parcel of Developed Property may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1, except that a partial prepayment shall be calculated according to the following formula:

PP = (PE – A) × F + A.

These terms have the following meaning:

PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Assessor’s Parcel is partially prepaying the Maximum Special Tax
A = the Administrative Fees and Expenses according to Section H.1 An owner of an Assessor’s Parcel intending to partially prepay the Special Tax obligation shall provide the CFD Administrator with (i) written notice of intent to partially prepay and (ii) the percentage of the Special Tax to be prepaid. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the partial Prepayment Amount of such Assessor’s Parcel. The CFD Administrator may charge a reasonable fee for providing this calculation.

With respect to any Assessor’s Parcel that is partially prepaid, CFD No. 06-2 shall (i) distribute the funds remitted to it according to Section H.1. and (ii) indicate in the records of CFD No. 06-2 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax shall continue to be levied on such Assessor’s Parcel pursuant to Section D.

Notwithstanding the foregoing, no full or partial prepayment shall be allowed unless the amount of the Maximum Special Tax that may be levied on Taxable Property (excluding Taxable Property Owner Association Property and Taxable Public Property) within CFD No. 06-2 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds.

I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed forty years commencing in Fiscal Year 2007-08.

K:\CLIENTS2\ANAHEIM\Platinum Triangle\Stadium Lofts\RMA\Stadium Lofts RMA 07.doc

APPENDIX D
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report

SPECIAL TAX ROLL
FISCAL YEAR 2022-2023

DTA Municipal Solutions 7/20/2022
FY 2022-2023 Special Tax
Appendix D
City of Anaheim
Community Facilities District 06-2
Stadium Lofts
FY 2022-2023 Special Tax Levy
Assessor's Parcel Number
930-28-535 $9,796.19
930-28-536 $879.98
930-28-537 $879.98
930-28-538 $1,221.80
930-28-539 $1,527.38
930-28-540 $962.84
930-28-541 $1,527.38
930-28-542 $1,527.38
930-28-543 $1,527.38
930-28-544 $1,986.96
930-28-545 $962.84
930-28-546 $962.84
930-28-547 $1,527.38
930-28-548 $962.84
930-28-549 $962.84
930-28-550 $1,527.38
930-28-551 $1,527.38
930-28-552 $852.02
930-28-553 $1,527.38
930-28-554 $1,527.38
930-28-555 $962.84
930-28-556 $962.84
930-28-557 $962.84
930-28-558 $962.84
930-28-559 $1,527.38
930-28-560 $962.84
930-28-561 $852.02
930-28-562 $962.84
930-28-563 $852.02
930-28-564 $962.84
930-28-565 $852.02
930-28-566 $852.02
930-28-567 $962.84
930-28-568 $962.84
930-28-569 $1,527.38
930-28-570 $1,527.38
930-28-571 $1,527.38
930-28-572 $1,986.96
930-28-573 $962.84
930-28-574 $962.84
930-28-575 $1,527.38
930-28-576 $962.84
930-28-577 $962.84
930-28-578 $1,527.38
930-28-579 $1,527.38
930-28-580 $852.02
930-28-581 $1,527.38
930-28-582 $1,527.38
930-28-583 $1,527.38
930-28-584 $962.84
930-28-585 $962.84

FY 2022-2023 Special Tax
Appendix D
City of Anaheim
Community Facilities District 06-2
Stadium Lofts
FY 2022-2023 Special Tax Levy
Assessor's Parcel Number
930-28-586 $962.84
930-28-587 $962.84
930-28-588 $962.84
930-28-589 $962.84
930-28-590 $962.84
930-28-591 $962.84
930-28-592 $962.84
930-28-593 $962.84
930-28-594 $962.84
930-28-595 $1,527.38
930-28-596 $962.84
930-28-597 $852.02
930-28-598 $962.84
930-28-599 $852.02
930-28-600 $962.84
930-28-601 $962.84
930-28-602 $962.84
930-28-603 $852.02
930-28-604 $852.02
930-28-605 $962.84
930-28-606 $2,235.33
930-28-607 $962.84
930-28-608 $1,527.38
930-28-609 $1,527.38
930-28-610 $1,527.38
930-28-611 $1,986.96
930-28-612 $962.84
930-28-613 $962.84
930-28-614 $1,527.38
930-28-615 $962.84
930-28-616 $962.84
930-28-617 $1,527.38
930-28-618 $1,527.38
930-28-619 $852.02
930-28-620 $1,527.38
930-28-621 $1,527.38
930-28-622 $1,527.38
930-28-623 $962.84
930-28-624 $962.84
930-28-625 $962.84
930-28-626 $962.84
930-28-627 $2,235.33
930-28-628 $962.84
930-28-629 $962.84
930-28-630 $962.84
930-28-631 $962.84
930-28-632 $1,527.38
930-28-633 $962.84
930-28-634 $962.84
930-28-635 $962.84
930-28-636 $1,527.38
930-28-637 $962.84

FY 2022-2023 Special Tax
Appendix D
City of Anaheim
Community Facilities District 06-2
Stadium Lofts
FY 2022-2023 Special Tax Levy
Assessor's Parcel Number
930-28-638 $852.02
930-28-639 $962.84
930-28-640 $852.02
930-28-641 $962.84
930-28-642 $962.84
930-28-643 $962.84
930-28-644 $852.02
930-28-645 $852.02
930-28-646 $962.84
930-28-647 $2,235.33
930-28-648 $962.84
930-28-649 $1,527.38
930-28-650 $1,527.38
930-28-651 $1,527.38
930-28-652 $1,986.96
930-28-653 $962.84
930-28-654 $962.84
930-28-655 $1,527.38
930-28-656 $962.84
930-28-657 $962.84
930-28-658 $1,527.38
930-28-659 $1,527.38
930-28-660 $852.02
930-28-661 $1,527.38
930-28-662 $1,527.38
930-28-663 $1,527.38
930-28-664 $1,527.38
930-28-665 $1,527.38
930-28-666 $1,527.38
930-28-667 $1,527.38
930-28-668 $2,235.33
930-28-669 $1,527.38
930-28-670 $1,527.38
930-28-671 $1,527.38
930-28-672 $1,527.38
930-28-673 $1,527.38
930-28-674 $962.84
930-28-675 $1,527.38
930-28-676 $962.84
930-28-677 $962.84
930-28-678 $852.02
930-28-679 $962.84
930-28-680 $962.84
930-28-681 $852.02
930-28-682 $1,527.38
930-28-683 $1,527.38
930-28-684 $1,527.38
930-28-685 $1,527.38
930-28-686 $962.84
930-28-687 $962.84
930-28-688 $962.84
930-28-689 $962.84

FY 2022-2023 Special Tax
Appendix D
City of Anaheim
Community Facilities District 06-2
Stadium Lofts
FY 2022-2023 Special Tax Levy
Assessor's Parcel Number
930-28-690 $962.84
930-28-691 $2,235.33
930-28-692 $852.02
930-28-693 $1,527.38
930-28-694 $852.02
930-28-695 $1,527.38
930-28-696 $1,527.38
930-28-697 $1,527.38
930-28-698 $1,527.38
930-28-699 $1,527.38
930-28-700 $1,527.38
930-28-701 $1,527.38
930-28-702 $1,527.38
930-28-703 $1,527.38
930-28-704 $1,527.38
930-28-705 $1,527.38
930-28-706 $1,527.38
930-28-707 $962.84
930-28-708 $962.84
930-28-709 $852.02
930-28-710 $962.84
930-28-711 $962.84
930-28-712 $852.02
930-28-713 $1,527.38
930-28-714 $1,527.38
930-28-715 $1,527.38
930-28-716 $1,527.38
930-28-717 $962.84
930-28-718 $962.84
930-28-719 $852.02
930-28-720 $962.84
930-28-721 $962.84
930-28-722 $962.84
930-28-723 $2,235.33
930-28-724 $852.02
930-28-725 $1,527.38
930-28-726 $852.02
930-28-727 $1,527.38
930-28-728 $1,527.38
930-28-729 $1,527.38
930-28-730 $1,527.38
930-28-731 $1,527.38
930-28-732 $1,527.38
930-28-733 $1,527.38
930-28-734 $1,527.38
930-28-735 $1,527.38
930-28-736 $1,527.38
930-28-737 $1,527.38
930-28-738 $1,527.38
930-28-739 $962.84
930-28-740 $962.84
930-28-741 $852.02

FY 2022-2023 Special Tax
Appendix D
City of Anaheim
Community Facilities District 06-2
Stadium Lofts
FY 2022-2023 Special Tax Levy
Assessor's Parcel Number
930-28-742 $962.84
930-28-743 $962.84
930-28-744 $852.02
930-28-745 $1,527.38
930-28-746 $1,527.38
930-28-747 $1,527.38
930-28-748 $1,527.38
930-28-749 $962.84
930-28-750 $962.84
930-28-751 $852.02
930-28-752 $962.84
930-28-753 $962.84
930-28-754 $962.84
930-28-755 $2,235.33
930-28-756 $852.02
930-28-757 $1,527.38
930-28-758 $852.02
930-28-759 $1,527.38
930-28-760 $1,527.38
930-28-761 $1,527.38
930-28-762 $1,527.38
930-28-763 $1,527.38
930-28-764 $1,527.38
930-28-765 $1,527.38
930-28-766 $1,527.38
930-28-767 $1,527.38
930-28-768 $1,527.38
930-28-769 $1,527.38
930-28-770 $1,527.38
930-28-771 $962.84
930-28-772 $962.84
930-28-773 $852.02
930-28-774 $962.84
930-28-775 $962.84
930-28-776 $852.02
930-28-777 $1,527.38
930-28-778 $1,527.38
930-28-779 $1,527.38
930-28-780 $1,527.38
930-28-781 $962.84
930-28-782 $962.84
930-28-783 $852.02
930-28-784 $962.84
930-28-785 $962.84
930-28-786 $962.84
930-28-787 $2,235.33
930-28-788 $852.02
930-28-789 $1,527.38
930-28-790 $852.02
930-28-791 $1,986.96
930-28-792 $1,527.38
930-28-793 $1,527.38

FY 2022-2023 Special Tax
Appendix D
City of Anaheim
Community Facilities District 06-2
Stadium Lofts
FY 2022-2023 Special Tax Levy
Assessor's Parcel Number
930-28-794 $1,527.38
930-28-795 $1,986.96
930-28-796 $1,527.38
930-28-797 $1,986.96
930-28-798 $1,986.96
930-28-799 $1,527.38
930-28-800 $1,527.38
930-28-801 $1,527.38
930-28-802 $962.84
930-28-803 $1,527.38
930-28-804 $962.84
930-28-805 $962.84
930-28-806 $962.84
930-28-807 $962.84
930-28-808 $1,527.38
930-28-809 $962.84
930-28-810 $1,986.96
930-28-811 $1,527.38
930-28-812 $1,527.38
930-28-813 $1,527.38
930-28-814 $1,527.38
930-28-815 $1,527.38
930-28-816 $962.84
930-28-817 $1,527.38
930-28-818 $962.84
930-28-819 $2,235.33
930-28-820 $852.02
930-28-821 $852.02
930-28-822 $962.84
930-28-823 $962.84
930-28-824 $962.84
930-28-825 $1,527.38
930-28-826 $1,527.38
930-28-827 $962.84
930-28-828 $962.84
930-28-829 $1,527.38
930-28-830 $1,527.38
930-28-831 $1,527.38
930-28-832 $1,527.38
930-28-833 $1,527.38
930-28-834 $962.84
930-28-835 $1,527.38
930-28-836 $962.84
930-28-837 $962.84
930-28-838 $962.84
930-28-839 $962.84
930-28-840 $1,527.38
930-28-841 $962.84
930-28-842 $1,986.96
930-28-843 $1,527.38
930-28-844 $1,527.38
930-28-845 $1,527.38

FY 2022-2023 Special Tax
Appendix D
City of Anaheim
Community Facilities District 06-2
Stadium Lofts
FY 2022-2023 Special Tax Levy
Assessor's Parcel Number
930-28-846 $1,527.38
930-28-847 $1,527.38
930-28-848 $962.84
930-28-849 $1,527.38
930-28-850 $962.84
930-28-851 $2,235.33
930-28-852 $852.02
930-28-853 $852.02
930-28-854 $962.84
930-28-855 $962.84
930-28-856 $962.84
930-28-857 $1,527.38
930-28-858 $1,527.38
930-28-859 $962.84
930-28-860 $962.84
930-28-861 $1,527.38
930-28-862 $1,527.38
930-28-863 $1,527.38
930-28-864 $1,527.38
930-28-865 $1,527.38
930-28-866 $962.84
930-28-867 $1,527.38
930-28-868 $962.84
930-28-869 $962.84
930-28-870 $962.84
930-28-871 $962.84
930-28-872 $1,527.38
930-28-873 $962.84
930-28-874 $1,986.96
930-28-875 $1,527.38
930-28-876 $1,527.38
930-28-877 $1,527.38
930-28-878 $1,527.38
930-28-879 $1,527.38
930-28-880 $962.84
930-28-881 $1,527.38
930-28-882 $962.84
930-28-883 $2,235.33
930-28-884 $852.02
930-28-885 $852.02
930-28-886 $962.84
930-28-887 $962.84
930-28-888 $962.84
930-28-889 $1,527.38
930-28-890 $1,527.38
930-28-891 $962.84
930-28-892 $962.84
930-28-893 $1,527.38
930-28-894 $1,527.38
930-28-895 $1,527.38
930-28-896 $1,527.38
930-28-897 $1,527.38

FY 2022-2023 Special Tax
Appendix D
City of Anaheim
Community Facilities District 06-2
Stadium Lofts
FY 2022-2023 Special Tax Levy
Assessor's Parcel Number
930-28-898 $962.84
930-28-899 $1,527.38
930-28-900 $962.84
930-28-901 $962.84
930-28-902 $962.84
930-28-903 $962.84
930-28-904 $1,527.38
930-28-905 $962.84
930-28-906 $1,986.96
930-28-907 $1,527.38
930-28-908 $1,527.38
930-28-909 $1,527.38
930-28-910 $1,527.38
930-28-911 $1,527.38
930-28-912 $962.84
930-28-913 $1,527.38
930-28-914 $962.84
930-28-915 $2,235.33
930-28-916 $852.02
930-28-917 $852.02
930-28-918 $962.84
930-28-919 $962.84
930-28-920 $962.84
930-28-921 $1,527.38
930-28-922 $1,527.38
930-28-923 $962.84
930-28-924 $962.84
930-28-925 $1,527.38
930-28-926 $1,527.38
930-28-927 $1,527.38
930-28-928 $1,527.38
Total FY 2022-2023 Special Tax
Total Number of Parcels Taxed 394
$508,180.49

APPENDIX E
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report

DELINQUENCY REPORT

Fiscal Year 2021-2022
Delinquency Report
City of Anaheim
Community Facilities District No. 06-2
(Stadium Lofts)
Assessor's
Parcel
Number
FY 2021-22
Levy
Delinquent
Owner DEC 10 APR 10 Amount
Delinquent Installment
930-287-45 ESCAMILLA ALFRED X $1,549.77 $774.88
Total Levy for FY 2021-22:

Number of Delinquent Parcels:

FY 2021-22 Delinquency Rate: %0.15
Delinquent Amount as of 7/19/2022:
1 $515,631.22
$774.88 Collection Amount as of 7/19/2022: $514,856.34
Total Parcels Levied in FY 2021-22: 394
7/26/2022
Fund No. 051-R1 Page 1 of 1

APPENDIX F
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report

CDIAC REPORT

STATE OF CALIFORNIA

MELLO-ROOS COMMUNITY FACILITIES DISTRICT (CFD)

YEARLY FISCAL STATUS REPORT
California Debt and Investment Advisory Commission
915 Capitol Mall, Room 400, Sacramento, CA 95814
P.O. Box 942809, Sacramento, CA 94209-0001
(916) 653-3269 Fax (916) 654-7440
For Office Use Only
Fiscal Year
Submitted:
7:31:33PM
Tuesday, October 26, 2021
CDIAC #: 2016-2142
I. GENERAL INFORMATION
A. Issuer
B. Project Name
C. Name/ Title/ Series of Bond Issue
D. Date of Bond Issue
E. Original Principal Amount of Bonds
F. Reserve Fund Minimum Balance Required
II. FUND BALANCE FISCAL STATUS
Balances Reported as of:

A. Principal Amount of Bonds Outstanding
B. Bond Reserve Fund
C. Capitalized Interest Fund
D. Construction Fund(s)
III. ASSESSED VALUE OF ALL PARCELS IN CFD SUBJECT TO SPECIAL TAX A. Assessed or Appraised Value Reported as of:

B. Total Assessed Value of All Parcels
IV. TAX COLLECTION INFORMATION
A. Total Amount of Special Taxes Due Annually
B. Total Amount of Unpaid Special Taxes Annually
C. Does this agency participiate in the County's Teeter Plan? V. DELINQUENT REPORTING INFORMATION
Delinquent Parcel Information Reported as of Equalized Tax Roll of:

A. Total Number of Delinquent Parcels:

B. Total Amount of Taxes Due on Delinquent Parcels:

VI. FORECLOSURE INFORMATION FOR FISCAL YEAR
(Aggregate totals, if foreclosure commenced on same date) Date Foreclosure Commenced
Total Number of Foreclosure
Parcels
Total Amount of Tax Due on
Foreclosure Parcels
(Use only in first year or before annual tax roll billing commences) (Do not include penalties, penalty interest, etc.)
(Attach additional sheets if necessary.)
Anaheim CFD No 06-2
2016 Special Tax Refunding Bond
7/19/2016
$7,540,000.00
$487,075.00
6/30/2021
$6,375,000.00
$487,075.00
$0.00
$0.00
1/1/2021
$146,193,946.00
$514,952.42
$0.00
N
10/25/2021
1 $3,991.41
$0.00
$0.00
$0.00
$0.00
$0.00
From Equalized Tax Roll
From Appriasal of Property
X
Stadium Lofts
Yes X Amount No

STATE OF CALIFORNIA

MELLO-ROOS COMMUNITY FACILITIES DISTRICT (CFD)

YEARLY FISCAL STATUS REPORT
California Debt and Investment Advisory Commission
915 Capitol Mall, Room 400, Sacramento, CA 95814
P.O. Box 942809, Sacramento, CA 94209-0001
(916) 653-3269 Fax (916) 654-7440
For Office Use Only
Fiscal Year
Submitted:
7:31:33PM
Tuesday, October 26, 2021
CDIAC #: 2016-2142
IX. ADDITIONAL COMMENTS:

Phone Number
E-Mail
City/ State/ Zip
Address
Firm/ Agency
Title
Name
VIII. NAME OF PARTY COMPLETING THIS FORM
If Other:
and redemption date:

If Redeemed Entirely, state refunding bond title & CDIAC #:

Matured Redeemed Entirely
If Matured, indicate final maturity date:

This issue is retired and no longer subject to the Yearly Fiscal Status report filing requirements.

VII. ISSUE RETIRED
Date of Report
Nehal Thumar
Vice President
DTA
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
(949) 955-1500 10/26/2021
[email protected]
Other
(Indicate reason for retirement)
and date:

Completion and submittal of this form to the California Debt and Investment Advisory Commission will assure your compliance with California State law. Section 53359.5 of the California Government Code requires that all agencies issuing Mello-Roos Community Facilities bonds after January 1, 1993 to report specific information to the Commission by October 30th of each year.

APPENDIX G
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report
SB 165 REPORT

11/12/2021

CITY OF ANAHEIM
COMMUNITY FACILITIES DISTRICT NO. 06-2 (STADIUM LOFTS)
$7,540,000 SPECIAL TAX REFUNDING BONDS, SERIES 2016

ANNUAL REPORT

The purpose of this report is to comply with the provisions of the Local Agency Special Tax and Bond Accountability Act (the “Act”). The Act provides that any local special tax measure that is subject to voter approval on or after January 1, 2001, that would provide for the imposition of a special tax by a local agency shall require the chief fiscal officer of the levying local agency to file a report with its governing body no later than January 1, 2002, and at least once a year thereafter. The annual report shall contain both of the following:
 The amount of funds collected and expended.
 The status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1 and Article 1.5, Section 53410.

The City of Anaheim (the “City”) issued $9,060,000 in Community Facilities District No. 06- 2 Special Tax Bonds (the “2007 Bonds”) in February 2007. In August 2016, the 2007 Bonds were refunded by the sale of $7,540,000 in Community Facilities District No. 06-2 Special Tax Refunding Bonds (the “2016 Bonds”). The 2007 Bonds were issued to finance the acquisition and construction of certain public facilities necessary for the development of Community Facilities District No. 06-2 including, the acquisition and construction of street improvements including permitting, demolition, grading, paving, curbs and gutters, sidewalks, street signalization and signage, irrigation, street lights and parkway and landscaping related thereto, sewers, storm drains, water facilities, sanitation facilities, electric utility facilities, public parks and recreation facilities, police facilities and equipment, fire facilities and equipment, library facilities and equipment and land, rights-of-way and easements necessary for any such facilities. The types of facilities proposed to be purchased as completed facilities are street improvements, right-of-way improvements, and sewer improvements.

Separate accounts have been established with a third party trustee to administer the receipt and subsequent disbursement of the bond proceeds as the City accepts completed improvements. Summary sheets showing the receipt of funds as well as all disbursements made during the reporting period (October 1, 2020 to September 30, 2021) are attached as a part of this report. The street improvements and sewer improvements that were proposed to be purchased as completed facilities have been constructed and acquired. The accounts established for the 2007 Bonds were closed and any remaining balances were transferred to the accounts established for the 2016 Bonds. The funds for all other facilities expected to be funded through the 2007 Bonds have been expended.

David Taussig Associates, Inc. 11/12/2021
8:52 AM

CITY OF ANAHEIM
CFD NO. 06-2 (STADIUM LOFTS)
SB165 FUND SUMMARY (SERIES 2016 BONDS)
Beginning Balance Funds Received Funds Expended Ending Balance Fund as of 10/1/20 (10/1/20 through 9/30/21) (10/1/20 through 9/30/21) as of 9/30/21 Special Tax Fund $44,213 $523,897 ($562,475) $5,636
Interest Account $9,393 $176,085 ($175,975) $9,503
Principal Account $25 $361,500 ($361,500) $25
Reserve Fund $487,075 $108 ($108) $487,075
Administrative Expense Fund $9,417 $25,002 ($29,998) $4,420 Escrow Fund $0 $0 $0 $0
Acquisition Account $0 $0 $0 $0
Cost of Issuance Fund $0 $0 $0 $0
Redemption Fund $0 $0 $0 $0
Bond Fund $0 $0 $0 $0
Rebate Fund $0 $0 $0 $0
Grand Total $550,123 $1,086,592 ($1,130,056) $506,659
C:\Users\Blake\OneDrive - FinanceDTA\Documents\SB165\2021\Anaheim (Need Req Detail)\06-2\[ACCT_SUMMARY_062_2021.xlsx]B

APPENDIX H
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report
AB 2109 REPORT

City of Anaheim

Parcel Tax Rate Notes
Dollar Amount Base
$2,265.11 Per Parcel (see building SF categories in Notes) Res (Greater than 1,250) $2,013.44 Per Parcel (see building SF categories in Notes) Res (1,100 to 1,249) $1,547.73 Per Parcel (see building SF categories in Notes) Res (900-1,099) $975.67 Per Parcel (see building SF categories in Notes) Res (700-899) $863.38 Per Parcel (see building SF categories in Notes) Res (Less than 700) Parcel Tax Reporting- Statistical Data
(To Be Completed by Levying Entity)
Fiscal Year 2020-21
Parcel Tax Name City of Anaheim CFD No. 06-2
A. The Type and Rate of Parcel Tax Imposed
(Please Check and Complete All Box(es) that Apply)
Parcel Tax Type
All Property
All Residential
Single-Family
Multi-Family
Condominiums
Mobile Homes
x

City of Anaheim

$1.2283 Per Square Foot of Building
Parcel Tax Reporting- Statistical Data
(To Be Completed by Levying Entity)
Other (Specify)
All Non-Residential
Commercial
Industrial
Institutional
Recreational
Other (Specify)
x

City of Anaheim

Parcel Tax Reporting- Statistical Data
(To Be Completed by Levying Entity)
Unimproved /
Undeveloped
Other (Specify)

Police Protection and Personal Safety
X Recreation and Park, Open Space
Resource Conservation
Snow Removal
X Streets, Roads, and Sidewalks
Television Translator Station Facilities
Trade and Commerce
Transit
Transportation
Underground Electric and Communication Facilities
Veterans Buildings and Institutions
Water Conservation
Waste Management
X Water Services and Irrigation
Weed Abatement
City of Anaheim
Parcel Tax Reporting - Statistical Data
(To Be Completed by Levying Entity)
Parcel Tax Name City of Anaheim CFD No. 06-2
B. The Number of Parcels Subject to the Parcel Tax 394
C. The Number of Parcels Exempt from the Parcel Tax 0
D. The Sunset Date of the Parcel Tax, if any. (MM/DD/YYYY) 06/30/2047 E. The Amount of Revenue Received from the Parcel Tax (Annually) $514,952.42 F. The Manner in Which the Revenue Received from the Parcel Tax is Being Used (Please Check All Box(es) Applicable or the Box(es) with the Closest Description that Apply)
Agriculture and Fair
Air Quality and Pollution Control
Airport Purpose
Ambulance Service and Emergency Medical Services
Amusement
Animal Control
Broadband Services
Cemetery
Conduit Financing
Drainage and Drainage Maintenance
Electric Purpose
Erosion Control
X Financing or Constructing Facilities
Fire Protection and Fire Prevention
Flood Control
Gas Purpose
Graffiti Abatement
Harbor and Port Purpose
Hazardous Material Emergency Response
Health
Hospital Purpose
Land Reclamation
Landscaping
Library Services
Lighting and Lighting Maintenance
Local and Regional Planning or Development
Memorial
Museums and Cultural Facilities
Parking
Pest Control, Mosquito Abatement and Vector Control

APPENDIX I
City of Anaheim
Community Facilities District No. 06-2
Fiscal Year 2022-2023
Administration Report

SAMPLE NOTICE OF

SPECIAL TAX

NOTICE OF SPECIAL TAX

CITY OF ANAHEIM
COMMUNITY FACILITIES DISTRICT NO. 06-2
County of Orange, California
TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:

APN: _____________
SITUS: ____________
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY. (1) This property is subject to a special tax, which is in addition to the regular property taxes and any other charges, fees, special taxes, and benefit assessments on the parcel. This special tax may not be imposed on all parcels within the city or county where the property is located. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE PUBLIC FACILITIES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. (2) The maximum special tax which may be levied against this parcel to pay for public facilities is $_____ during the 2022/2023 tax year. This amount will not increase. The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the 2046/2047 tax year. (3) The authorized facilities which are being paid for by the special taxes, and by the money received from the sale of bonds which are being repaid by the special taxes, are:  Roadway and Right-of-Way Improvements  Sewer Improvements  Impact Fee Facilities including Traffic Signal Fees, Library Fees, Platinum Triangle Park Fees, Police Facility Fees, Fire Facility Fees, Connector Street Fees, Water Facility Fees, Electric Utilities Undergrounding  Water, Electrical, Storm Drain, and Fire Station Facilities Costs These facilities may not yet have all been constructed or acquired, and it is possible that some may never be constructed or acquired.

In addition, the special taxes may be used to pay for the costs of the following services:

None

YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH AUTHORIZED CREATION OF

THE COMMUNITY FACILITIES DISTRICT, AND WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL

TAX IS APPORTIONED AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM THE CITY OF ANAHEIM FINANCE DEPARTMENT BY CALLING (714) 765-5195. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED REASONABLE COST OF PROVIDING THE DOCUMENT.

I (WE) ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A COPY OF THIS NOTICE. I (WE) UNDERSTAND

THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE OWNER OR AGENT SELLING THE PROPERTY. THE CONSTRUCT MAY BE

TERMINATED WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PERSON OR WITHIN FIVE DAYS

AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY. ________________
________________ Date
_________________________________________________
________________________________________________ Signature(s)

100 BAYVIEW CIRCLE, SUITE 100
NEWPORT BEACH, CA 92660
PHONE: (800) 969-4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com

1 City of Anaheim CFD No. 06-2 March 1, 2022
Fiscal Year 2020-2021 Continuing Disclosure Annual Report $7,540,000
COMMUNITY FACILITIES DISTRICT NO. 06-2
(STADIUM LOFTS)

OF THE CITY OF ANAHEIM
SPECIAL TAX REFUNDING BONDS, SERIES 2016

FISCAL YEAR 2020-2021

ANNUAL REPORT
This continuing disclosure Annual Report (the "Report") has been prepared to satisfy the obligations of Community Facilities District No. 06-2 (“CFD No. 06-2”) of the City of Anaheim (the “City”), as provided in the Continuing Disclosure Agreement dated August 1, 2016 (the "Continuing Disclosure Agreement"), as executed and delivered by CFD No. 06-2, in connection with the sale and issuance of the above-captioned bonds. As provided in Section 2 of the Continuing Disclosure Agreement, a copy of this Annual Report is being forwarded to the Municipal Securities Rulemaking Board (see Exhibit A attached). Unless otherwise defined above, capitalized terms used herein shall have the meanings set forth in the Continuing Disclosure Agreement.

The following information is being provided as required under Section 3 of the Continuing Disclosure Agreement:
(a) The Community Facilities District’s audited financial statements, if any, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the Community Facilities District’s audited financial statements, if any, are not available by the time the Annual Report is required to be filed pursuant to Section 2(a) hereof, the Annual Report shall contain unaudited financial statements in a format similar to that used for the Community Facilities District’s audited financial statements, and the audited financial statements, if any, shall be filed in the same manner as the Annual Report when they become available.

CFD No. 06-2 does not prepare audited financial statements. In lieu of filing CFD No. 06-2’s audited financial statements, the City of Anaheim’s Audited Financial Statements were filed with the Municipal Securities Rulemaking Board Electronic Municipal Market Access on February 7, 2022 (Submission ID: P21177211). (b) The following additional items:
i) The principal amount of Series 2016 Bonds Outstanding as of the December 31 next preceding the Annual Report Date;
The principal amount of Series 2016 Bonds Outstanding was $6,015,000 as of December 31, 2021.
ii) The principal amount of Additional Bonds Outstanding as of the December 31 next preceding the Annual Report Date;
There are no Additional Bonds Outstanding as of December 31, 2021. iii) The balance in the Reserve Fund, and a statement of the Reserve Requirement, as of the December 31 next preceding the Annual Report Date; The balance in the Reserve Fund was $487,075, and the Reserve Requirement is $487,075 as of December 31, 2021.

2 City of Anaheim CFD No. 06-2 March 1, 2022
Fiscal Year 2020-2021 Continuing Disclosure Annual Report

iv) The total assessed value of all parcels within the Community Facilities District on which the Special Taxes are levied, as shown on the assessment roll of the Orange County Assessor last equalized prior to the December 31 next preceding the Annual Report Date;
Fiscal Year 2021-2022
Assessed Value [1]
$146,193,946
[1] Assessed value data provided by the County of
Orange Assessor as of January 1, 2021. Assessed value
is calculated as the sum of land value and
improvement value.
v) An update of the value to lien analysis (by assessed values only), substantially in the form of Table 1 of the Official Statement, by property class and landowner, individually listing property owners responsible for more than 5% of the annual Special Tax Levy;
See “Assessed Value-to-Lien Ratios” in Exhibit B attached. vi) The Special Tax delinquency rate for all parcels within the Community Facilities District, substantially in the form of Table 2 of the Official Statement, as shown on the assessment roll of the Orange County Assessor for the preceding Fiscal Year;

See “Special Tax Delinquency History” in Exhibit B attached. vii) The status of foreclosure proceedings and a summary of the results of any foreclosure sales as of the December 31 next preceding the Annual Report Date;

CFD No. 06-2 has not been required to initiate any foreclosure proceedings to date.

viii) The identity of any property owner representing more than 5% of the Special Tax levy delinquent in payment of such Special Taxes as of December 31 next preceding the Annual Report Date;

There is no delinquent property owner representing more than 5% of the Fiscal Year 2020-2021 Special Tax levy.
ix) A land ownership summary listing property owners responsible for more than 5% of the annual Special Tax, as shown on the assessment roll of the Orange County Assessor last equalized prior to the December 31 next preceding the Annual Report Date;
No property owner is responsible for more than 5% of the Fiscal Year 2021- 2022 Special Tax levy for CFD No. 06-2.

EXHIBIT A

REPOSITORY LIST
This Annual Report is provided through EMMA as defined in the Continuing Disclosure Agreement.

Municipal Securities Rulemaking Board
Electronic Municipal Market Access
http://emma.msrb.org

EXHIBIT B

ASSESSED VALUE-TO-LIEN RATIOS

SPECIAL TAX DELINQUENCY HISTORY

David Taussig and Associates, Inc. 2/8/2022
Number FY 2021-2022 FY 2021-2022 CFD No. 06-2 Total Total Direct and Estimated Assessed of Parcels Percentage Assessed Actual Outstanding Overlapping Overlapping Value-to-Lien Ratio Taxed of Parcels Value [2] Special Tax Bond Amount [3] Debt [4] Debt Less than 5:1 0 0.00% $0 $0 $0 $0 $0
Between 5:1 and 10:1 0 0.00% $0 $0 $0 $0 $0
Greater than 10:1 394 100.00% $146,193,946 $515,631 $6,015,000 $2,227,274 $8,242,274 Grand Total 394 100.00% $146,193,946 $515,631 $6,015,000 $2,227,274 $8,242,274 [1]
[2]
[3] As of January 2, 2022. Share of Series 2016 Bonds based upon the Fiscal Year 2021-2022 Special Tax levy. [4] As of January 2, 2022.

Based on the final Fiscal Year 2021-2022 assessed values provided by the County of Orange. Assessed value is calculated as the sum of land value and improvement value.

ANNUAL REPORT

OF THE CITY OF ANAHEIM
COMMUNITY FACILITIES DISTRICT NO. 06-2 (STADIUM LOFTS)
Numbers may not sum due to rounding.

ASSESSED VALUE-TO-LIEN RATIOS FOR DEVELOPED PARCELS [1]

David Taussig and Associates, Inc. 2/8/2022
Number of
Delinquent Delinquency Delinquency Number of
Number of Parcels as of as of Rate as of Delinquent Delinquency Delinquency Total Tax Parcels June 30 of June 30 of June 30 of Parcels as of as of Rate as of Fiscal Year Levy Levied Year Levied [1] Year Levied [1] Year Levied 2/8/2022 [2] 2/8/2022 [2] 2/8/2022 [2] 2016-2017 $517,449 394 2 $2,333 0.45% 0 $0 0.00%
2017-2018 $512,319 394 1 $770 0.15% 0 $0 0.00%
2018-2019 $507,505 394 4 $4,701 0.93% 1 $1,984 0.39%
2019-2020 $513,328 394 6 $6,423 1.25% 1 $2,007 0.39%
2020-2021 $514,952 394 6 $3,101 0.60% 0 $0 0.00%
[1] As of approximately June 30 of year levied based on information provided by the County of Orange Tax Collector. [2] As of February 8, 2022 based on information provided by the County of Orange Tax Collector.

COMMUNITY FACILITIES DISTRICT NO. 06-2 (STADIUM LOFTS)

OF THE CITY OF ANAHEIM

ANNUAL REPORT

SPECIAL TAX DELINQUENCY HISTORY

www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Newport Beach | San Jose | San Francisco | Riverside | Dallas | Houston | Raleigh | Tampa May 19, 2022
Ms. D’Anne Lee
City of Anaheim
200 S. Anaheim Blvd., 6
th Floor
Anaheim, CA 92805
Subject: Special Tax Delinquency Reports for CFD No. 06-2, CFD No. 08-1, and the Resort Maintenance Assessment District of the City of Anaheim
Dear Ms. Lee:

Enclosed please find the first and second installment delinquency reports for the abovementioned districts. The reports include the following information for each delinquent parcel: assessor parcel number, owner name, delinquent installments, fiscal year 2021-2022 special tax levy, and the fiscal year 2021-2022 first and second installment delinquent amount. Each report also includes a summary of the number of parcels taxed, number of parcels delinquent, total special taxes levied in fiscal year 2021-2022, total amount of delinquent special taxes, and the delinquency rate for the first and second installment. Please see Table 1 below for a summary of the fiscal year 2020-2021 and 2021-2022 first and second installment delinquency rates for each district mentioned above.

Table 1: Fiscal Year 2021-2022 Delinquency Summary
Community Facilities District
FY 2020-2021
1 st and 2nd Installment
Delinquent Special Tax
Percentage as of
5/12/2021
FY 2021-2022
1 st and 2nd Installment
Delinquent Special Tax
Percentage as of
5/9/2022
CFD No. 06-2 0.60% 0.72%
CFD No. 08-1 10.66% 0.19%
Maintenance Assessment District 0.36% 0.16%
Please let us know if you would like us to prepare delinquency reminder letters for property owners who are delinquent in the payment of their fiscal year 2021-2022 special taxes.

Should you have any questions or concerns, please contact me at (800) 969-4DTA. Sincerely, Andrea Roess
Managing Director
Enclosures:

1. Attachment 1 – First and Second Installment Delinquency Reports

ATTACHMENT 1

FIRST AND SECOND

INSTALLMENT

DELINQUENCY REPORTS

Fiscal Year 2021-2022
Delinquency Report
City of Anaheim
Community Facilities District No. 06-2
(Stadium Lofts)
Assessor's
Parcel
Number
FY 2021-22
Levy
Delinquent
Owner DEC 10 APR 10 Amount
Delinquent Installment
930-285-40 HARTLEY BROOKE S X $976.96 $488.48
930-286-14 REYES RICHARD TR R REYES X $1,549.77 $774.88 930-286-38 TURNER LESLIE BULLOCK X $864.51 $432.25
930-287-45 ESCAMILLA ALFRED X $1,549.77 $774.88
930-288-22 CHANG NICHOLAS Y X $976.96 $488.48
930-289-11 HSIA YUKUN TR YUKUN & X $1,549.77 $774.88
Total Levy for FY 2021-22:

Number of Delinquent Parcels:

FY 2021-22 Delinquency Rate: %0.72
Delinquent Amount as of 5/9/2022:
6 $515,631.22
$3,733.85 Collection Amount as of 5/9/2022: $511,897.37 Total Parcels Levied in FY 2021-22: 394
5/19/2022
Fund No. 051-R1 Page 1 of 1

Fiscal Year 2021-2022
Delinquency Report
City of Anaheim
Community Facilities District No. 08-1
(Platinum Triangle)
Assessor's
Parcel
Number
FY 2021-22
Levy
Delinquent
Owner DEC 10 APR 10 Amount
Delinquent Installment
930-298-04 TAN DAWEI X X $1,946.88 $1,946.88
930-298-13 GROOMS RAHSAN X $2,587.21 $1,293.60
930-298-61 PANDYA DARSHAN JYOTINDRA X $2,199.13 $1,099.56 930-299-04 DONOHUE CATHERINE G X $3,143.46 $1,571.73
Total Levy for FY 2021-22:

Number of Delinquent Parcels:

FY 2021-22 Delinquency Rate: %0.19
Delinquent Amount as of 5/9/2022:
4 $3,070,822.76
$5,911.77 Collection Amount as of 5/9/2022: $3,064,910.99 Total Parcels Levied in FY 2021-22: 302
5/19/2022
Fund No. 051-R2 Page 1 of 1

Fiscal Year 2021-2022
Delinquency Report
City of Anaheim
Maintenance Assessment District
Assessor's
Parcel
Number
FY 2021-22
Levy
Delinquent
Owner DEC 10 APR 10 Amount
Delinquent Installment
090-251-22 PAVILIONS LLC X $8,768.08 $4,384.04
251-041-24 PATEL PARSOTAM R X $7,515.91 $3,757.95
Total Levy for FY 2021-22:

Number of Delinquent Parcels:

FY 2021-22 Delinquency Rate: %0.16
Delinquent Amount as of 5/9/2022:
2 $5,035,129.96
$8,141.99 Collection Amount as of 5/9/2022: $5,026,987.97 Total Parcels Levied in FY 2021-22: 171
5/19/2022
Fund No. 051-X0 Page 1 of 1

Delinquency Report as of September 22, 2022
RUSD CFD No. 15, IA No. 2
Assessor's
Parcel
Number Owner
Total
FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Delinquency 266-580-011 NGAN WAI YEE $0.00 $0.00 $0.00 $0.00 $0.00 $1,234.80 $1,234.80 $2,469.60 266-581-006 SU WEI $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,234.80 $1,234.80 266-610-001 TOMA SALWA N $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $8,447.84 266-620-007 DEOLDEN CARMEN $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,206.80 $1,206.80 266-620-009 ACOVERA MICHELLE GIRALAO $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $3,040.22 $3,040.22 $0.00 $16,399.26
2:43:21PM 9/22/2022
$1,096,131.20
$1,096,131.20
403
0 Total Levies:

Total Collections:

Total Parcels Levied:

Total Parcels Delinquent:

Delinquency Rate: 0.00%
Total Delinquencies:
5 N/A
N/A
N/A
N/A
$1,124,238.08
$0.00
$1,124,238.08

0.00%
0 403 403
0 $1,085,172.60

0.00%
$1,085,172.60
$0.00 $0.00
$1,079,744.22
$1,079,744.22
403
0 0.00%
$0.00
$1,079,744.22
$1,079,744.22

0.00%
403
0 $1,079,744.22
$1,078,509.42
1 403

0.11%
$1,234.80 $6,716.62
$1,079,744.22
$1,073,027.60
403
4 0.62%

www.FinanceDTA.com
Tax Levy Submittal Process [1]
Land Use
Research
Classify
Property
Financial
Analysis
Council
Meeting to
Approve Levies
Prepare
Administrative/
Engineer’s
Reports
Start – May
End – August
Submit Taxes to
the County/Mail
Direct Bills
[1] Based on the typical tax levy approval and submittal process. Tax levy schedule subject to change based on City’s Landscaping and Lighting Maintenance Districts, Community Facilities Districts, Public Safety Special Tax, and other Tax Roll Billing being submitted.

23 SECTION VI
FISCAL YEAR 2022-2023 SPECIAL

TAX REQUIREMENT

Riverside Unified School District Community Facilities District No. 15 September 15, 2022 Fiscal Year 2022-2023 Administration Report
www.FinanceDTA.com
Table 11: FY 2022-2023 Special Tax Requirement (Improvement Area No. 2) Account/Fund Amount
Local Obligation Debt Service
Interest Due March 1, 2023 $250,650
Interest Due September 1, 2023 $250,650
Principal Due September 1, 2023 $575,000
Administrative Expenses 1 $24,361
Credit ($39,774)
Prior Year Delinquencies 2 $18,856
FY 2022-2023 Special Tax Requirement $1,079,742
Notes:

1. Includes administrative expenses for prior years.

2. As of May 23, 2022.

Figure 2: Fiscal Year 2022-2023 Gross Special Tax Requirement (Improvement Area No. 2) Total Fiscal Year 2022-2023 Gross Special Tax Requirement: $1,119,516 Interest Due
March 1, 2023,

22.39%
Interest Due
September 1, 2023,
Principal Due 22.39%
September 1, 2023,

51.36%
Administrative
Expenses,

2.18%
Prior Year
Delinquencies,

1.68%

SR-23-010
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: January 17, 2023
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Professional Services Agreement for Research and Consulting Services regarding the City-wide Lighting and Landscaping District 1 with the Lew Edwards Group in the Amount of $154,000.

RECOMMENDATION:

Authorize the City Manager to execute a Professional Services Agreement for Research and Consulting Services regarding the City-wide Lighting and Landscaping District 1 with the Lew Edwards Group in the amount of $154,000.

BACKGROUND:

The City established the City-wide Lighting and Landscaping District 1 (LMD1) around 1986 pursuant to the Landscaping and Lighting Act of 1972. LMD1 consists of Zones A and B. Zone A includes all the parcels within the City limits and are assessed an annual levy of $40.56 per parcel which has been the same amount since the inception of LMD1. Zone B consists of the territory known as the Palm Tree Lighting and Parkway Maintenance Boundary. The boundaries that comprise Zone B are 8th Street in the north, West Avenue on the West, Verbena Drive on the east and Hacienda Drive on the South. The parcels within this boundary are assessed an annual levy of $0.52 per linear foot of street frontage of any parcels facing either Palm Drive or Pierson Blvd. The purpose of the assessment is to provide funding for improvements, repairs, maintenance, and operations of certain City facilities. These facilities include landscaping, sidewalks, trees, street lighting, park facilities, parkways, street tree lighting, and medians.

DISCUSSION:

As the City has grown, there have been increases in the number of parks, medians, street lights, landscaping, and other related facilities. With this growth, the cost for operating and maintaining these facilities has increased but the assessment amount has remained the same since the inception of the LMD1. The assessment does not provide for any annual increases based on inflation or CPI index increases and currently provides between $560,000 and $580,000 annually. Any expenditures over the amount of the assessment must be funded by the General Fund. In Fiscal Year 2022-23, the General Fund covered an additional $1,184,623 of costs towards the Citywide LMD.

The assessment and General Fund contributions provide services to the City’s most visible and used facilities, such as parks. It helps to make the City more aesthetically pleasing.

SR-23-010
Staff is recommending research be done on the process to increase the annual assessment. As the City continues to grow and make improvements to its facilities, the repair and maintenance costs will continue to increase. As costs increase, the City-wide LMD1 Fund will continue to impact the City's General Fund. When the General Fund is required to subsidize the City-wide LMD1 Fund, the annual operating budget has fewer resources available for other necessary City programs and services.

The proposed agreement is for Lew Edwards Group to work with City Staff on researching the possibility of increasing the City-wide LMD1 assessment. The services provided by Lew Edwards will include, but are not limited to:
• Facilitate and update a coordinated strategy and timeline • Facilitate design of an updated research opinion
• Analyze survey results and provide strategic recommendations for property owner engagement
• Assist with public engagement and messaging
• Assist with rapid responses to the community and the media as needed.

City staff has chosen to contract with the Lew Edwards Group because of their professional expertise and experience, as well as the City's direct experience with the firm for the 2017 Public Safety Parcel Tax and the Utility Users Tax measures.

FISCAL IMPACT:

The cost of professional services agreement with the Lew Edwards Group is for an amount not to exceed $154,000.

The amount of $154,000 has been included in the FY22-23 Budget (amended on October 18, 2022).

ATTACHMENTS:

Exhibit 1 - Lew Edwards Scope of Services - 2023
Exhibit 2 - Professional Services Agreement - Lew Edwards 2023 Exhibit 3 - Citywide Landscape and Lighting Maintenance District 1 Boundary Map

EXHIBIT “A”

SCOPE OF SERVICES AND COMPENSATION SCHEDULE
• Update the City on current Best Practices
• Facilitate and update a coordinated strategy and timeline for Project • Conduct audit of all recent City issues /media coverage in the public arena over past 18 months
• Review archival City budget materials and planning
• Facilitate design of updated opinion research by designated subcontractor FM3 Research for an English language interview sample of up to 400 respondents, approximately 15 minutes
• Analyze survey results, provide Strategic Recommendations for property owner engagement
• Draft Public Messaging/Engagement Platform
• Draft text copy and produce communications collaterals such as FAQs, web content, mailings, utility inserts, digital/online vehicles, and other materials • Conduct updated message training
• Work with City staff on methods to engage affected constituents, expand community awareness of policy, fiscal/service needs and solicit additional community input on City’s proposal/vision
• Provide recommendations to proposed city budget reports, presentations, or documents and project-related staff reports
• Participate in selected City briefing and planning sessions related to budget adoption to maximize messaging
• Assist with rapid response needs from media or the community as necessary to correct misinformation or clarify confusing information (LEG does not function as a city spokesperson)
• Advise City of viability and feasibility of any proposal and confer with City Attorney on measure components
The parties expressly acknowledge and agree that legal services or advice are not within Consultant’s scope of services. When providing direct mail services, Consultant shall facilitate timely delivery to USPS but can only monitor, not ensure delivery once mail is within the possession and control of USPS. Consultant’s services will be provided exclusively via teleconference or videoconference—no on-site visit or travel will be requested by the City.
[Compensation schedule on following page]
Total Not To Exceed (NTE) Contract Amount is One Hundred and Fifty-Four Thousand Dollars and No Cents ($154,000.00).

For Professional Consulting Services: Not to Exceed (NTE) Sixty-One Thousand, Seven Hundred and Fifty Dollars ($61,750.00) as follows:
• Three Thousand, Two Hundred and fifty Dollars ($3,250) due and payable on December 31st, 2022; and
• Nine payments of Six Thousand, Five Hundred Dollars ($6,500) per payment due and payable on the last business day of each month commencing January 31st, 2023 and ending on September 29th, 2023, unless the term of agreement ends sooner.

For Public Opinion Research Services to be conducted by designated subcontractor FM3 Research: NTE Thirty-Four Thousand, Two Hundred and Fifty Dollars ($34,250.00) upon invoice by consultant.

For USPS Direct Mail or Paid Digital production, NTE Fifty-Eight Thousand Dollars ($58,000) for up to four postal mailings of various specifications, inclusive of graphic design, printing/mail house services, and bulk rate postage; or alternatively, City can opt to implement a combination of mail/paid digital communications within this line item.

City agrees to Consultant’s production protocol of no more than two (2) rounds of edits to proposed graphic design layouts, including final review/approval by City Attorney.

Confirmation of legal approval will be necessary prior to printing each item.

Consultant shall invoice per execution of each item. Preceding mailing costs must be paid in full prior to commencing each subsequent mailing or digital placement.

PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND

THE LEW EDWARDS GROUP
This Professional Services Agreement (“Agreement”) is made and entered into this 17th day of January 2023, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and The Lew Edwards Group, a California Corporation, hereinafter referred to as “Consultant.”
RECITALS:

WHEREAS, the City desires to utilize the services of Consultant, as an independent contractor, to provide the City with communications outreach consulting for Landscape Maintenance District (LMD) as directed by the City on an as needed basis (sometimes hereinafter, the “Services”), as described in more particularity in Exhibit “A,” attached hereto and incorporated herein by this reference as the “Scope of Services”; and
WHEREAS, Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS,

CONDITIONS AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER

GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth in full herein.

Section 2. SCOPE OF SERVICES
Consultant shall provide to the City the Services on an as-needed and asdirected basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of

Services. In the event a conflict exists between this Agreement and the Scope of Services, the former shall supersede.

Section 3. TERM
This Agreement shall commence as of the date in the opening paragraph of this Agreement and shall continue in force and effect until terminated, in accordance with Section 7 of this Agreement, subject to allocation of funds pursuant to a duly approved City budget.

Section 4. COMPENSATION
The City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, One Hundred and Fifty-four Thousand Dollars and Zero Cents ($154,000.00).

Section 5. METHOD OF PAYMENT
a. Consultant shall submit invoices to the City, not more often than once a month, describing the work performed. Consultant’s bills shall include a brief description of the services performed, and the month services were performed and a description of any reimbursable expenditures. The City shall pay Consultant no later than thirty (30) days after approval of the invoice by City staff provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement, and that all expenses, rates and other information set forth in the invoice are consistent with the terms and conditions of this Agreement. Review and approval of invoice by City staff will occur within thirty (30) calendar days of receipt of invoice via email.
b. The Consultant shall submit invoices under this Agreement to:

Luke Rainey
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected] via Emily Pearson at
[email protected]
Section 6. EXTRA WORK

At any time during the term of this Agreement, the City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform Extra Work without written authorization from the City.

Section 7. TERMINATION
This Agreement may be terminated by the City immediately for cause. Either party may terminate this Agreement without cause upon twenty-four hours (24) hours written notice of termination to the other party. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination, provided that Consultant shall have satisfied all its obligations under this Agreement through and including the effective date of termination and is not otherwise in breach of this Agreement.

Section 8. OWNERSHIP OF DOCUMENTS
All plans, studies, documents and other writings, including drafts, prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at its expense, provide such reports, plans, studies, documents and other writings in pdf format to the City upon written request, or such other electronic format as reasonably requested by the City.

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without prior written consent of the City, be used by Consultant for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential.

b. Consultant shall not use the City’s insignia or photographs relating to Consultant’s Services, or any publicity pertaining to the Consultant’s Services under this

Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

Section 10. CONSULTANT’S BOOKS AND RECORDS
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

Section 11. INDEPENDENT CONTRACTOR’S STATUS: NOT AGENT

OF THE CITY
Consultant shall at all times during the term of this Agreement remain, as to the City, a wholly independent contractor and shall perform the services described in this Agreement as an independent contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors. Neither the City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as herein set forth. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Consultant or by any third person to create the relationship of principal and agent and Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity

whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the City to any obligation whatsoever.

Section 12. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS

OF CONSULTANT
a. Consultant represents and acknowledges the following:
(1) The City is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City. (3) The services described in this Agreement can be performed without the use of City equipment, materials, tools or facilities. (4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.
(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by Consultant to perform the services described in this Agreement. (6) Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the City. b. The City represents and acknowledges the following:
(1) Consultant is not required to comply with daily instructions from City staff with respect to when, where or how Consultant must perform the services set forth in this Agreement.
(2) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.
(3) The City will not hire, supervise or pay any assistants working for Consultant pursuant to this Agreement.

(4) Nothing in this Agreement shall be interpreted to imply that the Consultant must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.
(5) It is the sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement. (6) Consultant is not required to devote full time to the business operations of the City in order to perform the services set forth in this Agreement. (7) Consultant is not required to perform the services set forth in the Agreement in any particular order or sequence.
(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.
(9) Consultant is not required to perform the Services at City-owned property.

Section 13. CIVIL CODE SECTION 1542 WAIVER
Consultant expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”
This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind, that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (“CalPERS”) that are only afforded to employees and not independent contractors.

Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
__________
Initials
Section 14. CONFLICTS OF INTEREST

a. Consultant (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding
approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract;
(iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
(v) granting the City approval to a plan, design, report, study, or similar item; or
(vi) adopting, or granting City approval of, policies, standards, or guidelines for the City or for any subdivision thereof. (2) Does not serve in a staff capacity with the City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code under Government Code Section 87302.
c. In the event the City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with

the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

Section 15. PROFESSIONAL ABILITY OF CONSULTANT;
WARRANTY; FAMILIARITY WITH WORK; PERMITS AND

LICENSES
a. Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.
b. By executing this Agreement, Consultant warrants that:
(1) it has thoroughly investigated and considered the work to be performed;
(2) it has investigated the issues, regarding the scope of services to be provided;
(3) it has carefully considered how the work should be performed; and (4) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. c. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the City Manager or appropriate City representative.
d. Consultant represents that it and all of its subcontractors, if any, have obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

Section 16. COMPLIANCE WITH LAWS
Consultant shall comply with all local, state and federal laws and regulations applicable to the services required hereunder.

Section 17. INDEMNIFICATION
a. Consultant shall defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any

and all costs, expenses and attorneys’ fees in connection therewith), arising out of the performance of this Agreement, except for any such claim arising out of the sole negligence, recklessness, or willful misconduct of the City, its officers, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Consultant under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Consultant shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Consultant’s work promptly, or by reason of delay or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Consultant’s control, or for which Consultant is without fault. d. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

Section 18. INSURANCE REQUIREMENTS
a. Policies. Consultant, at Consultant’s sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker’s Compensation Coverage. Consultant shall maintain Worker’s Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California, of an amount not less than one million dollars ($1,000,000) per accident. In addition, Consultant shall require each subcontractor to similarly maintain Worker’s Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. If any class of employees employed by Consultant pursuant to this Agreement is not protected by the California State Worker’s Compensation Law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Consultant has no employees performing work under this Agreement. Consultant agrees to waive its statutory

immunity under any worker’s compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Services to do the same.
(2) General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence, combined single limit coverage for bodily injury, personal injury and property damage associated with work contemplated in this Agreement. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Consultant shall provide insurance on an occurrence, not claims-made basis. Consultant acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an “offense” while bodily injury and property damage coverage shall be triggered by an “occurrence” during the policy period. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof.
(3) Automobile Liability Coverage. Consultant shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Consultant arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000) in the aggregate. As an alternative, Consultant shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as though Consultant were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant’s Services, whether such Services are performed by Consultant or by its employees, subcontractors, or sub-consultants, to the extent such persons other than Consultant are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($1,000,000) per claim or aggregate. b. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the following specific language:

(1) Except as otherwise provided by law, the City, its elected or appointed officers, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work or operations.
(2) This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have shall be considered excess insurance only and shall not contribute with it. (3) This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(4) The insurer waives all rights of subrogation against the City, its elected or appointed officials, officers, employees or agents. (5) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
(6) The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the approval of City for any self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of the City Manager, Consultant may either reduce or eliminate such deductibles or selfinsured retentions with respect to City, its officers, employees, agents, and volunteers.

The City Manager may condition approval of any reduction or elimination in deductible or self-insured retention levels with a requirement that Consultant procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. d. Certificates of Insurance. , Consultant shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. e. Imposition of Insurance Requirements. Provided the City gives its written consent for any persons other than Consultant to perform any part of the Services, Consultant agrees to require that all parties, including but not limited to subcontractors,

architects, engineers or others with whom Consultant enters into contracts or whom Consultant hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and name as additional insureds the parties to this Agreement consistent with Section 18b(1) hereof.

Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section.
f. Maintain Coverages. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Consultant agrees to maintain all coverages required herein through the end of the project period contemplated in this Agreement .
g. Failure to Obtain Coverages. Consultant agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the performance of Services, to the extent such is permissible under this Agreement, Consultant shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City or its officers, employees, servants, volunteers, agents and independent contractors.
h. Notice of Cancellation or Reduction in Coverage. In the event that any coverage required in this Agreement is canceled, reduced, limited, or materially affected in any other manner, Consultant shall provide written notice to the City either by facsimile and/or via certified mail, at Consultant’s earliest possible opportunity and in no case later than fifteen (15) calendar days after Consultant is notified of the change in coverage.

Section 19. NOTICES
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the parties as follows:

To the City: Luke Rainey
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected]
To Consultant: Lloyd A. Edwards, Secretary-Treasurer
The Lew Edwards Group

5454 Broadway
Oakland, CA 94618
Telephone: (510) 594-0224 x 216
Facsimile: (510) 420-0876
Email: [email protected]
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 20. DEFAULT
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder.
b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen (15) calendar days following written notice, as provided above, a "material breach" shall be deemed to have occurred. In the event of a material breach, the injured party shall be entitled to seek any appropriate remedy or damages as otherwise set forth herein and by initiating legal proceedings.

Section 21. REMEDIES
If Consultant materially breaches any of the terms of this Agreement, the City’s remedies shall include, but shall not be limited to, the following:
a. Immediately terminate the Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement;

c. Retain a different consultant to complete the Services that are not finished by Consultant.

Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Consultant with respect to the subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and each party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement.
c. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

Section 23. MODIFICATIONS AND AMENDMENTS
This Agreement may be modified or amended only by a written instrument signed by both parties.

Section 24. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the written consent of the City. b. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written consent of the City. If the City consents to such subcontract, Consultant shall be fully responsible to the City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as required by law.

Section 25. WAIVER
a. No waiver shall be binding, unless executed in writing by the party making the waiver.

b. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. c. Failure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.

Section 26. SEVERABILITY
If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.

Section 27. VENUE
All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in Riverside County, California.

Section 28. LITIGATION EXPENSES AND ATTORNEYS’ FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof.

Section 29. EXECUTION IN COUNTERPARTS
This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least a copy hereof shall have been signed by both parties hereto. Electronic and facsimile signatures shall be deemed the same as original signatures. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

Section 30. PROHIBITED INTERESTS
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to

solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement.

For breach or violation of this warranty, the City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of the City, during the term of his or her service with the City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

Section 31. EQUAL OPPORTUNITY EMPLOYMENT
Consultant represents that it is an equal opportunity employer and shall not discriminate against any subcontractor, employee, or applicant (“person”) for employment because of race; denial of family and medical care leave; religious creed (including religious dress and grooming practices); color; national origin (including language use restrictions); ancestry; physical disability or mental disability (including HIV and Aids); medical condition (cancer and genetic characteristics); genetic information; military or veteran status; marital status; gender, gender identity, and gender expression; sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding); age or sexual orientation. Unless otherwise permitted under the law, Consultant shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.

Section 32. TIME OF THE ESSENCE
Time is of the essence in the performance of this Agreement.

Section 33. PRINCIPAL REPRESENTATIVES
a. _____ shall be Consultant's Principal Representative and the person responsible for undertaking, managing and supervising the performance of all of the Services for this Agreement. Consultant's Principal Representative's experience, knowledge, capability and reputation were a substantial inducement for the City to enter into this Agreement, and as such, for the purposes of performing the Services, the duties of Consultant's Principal Representative shall not be reassigned, without the express written consent of both parties.
b. Charles Maynard, shall be the Principal Representative of the City for purposes of communicating with Consultant on any matter associated with the performance of the services set forth in this Agreement.

Section 34. NON-LIABILITY OF CITY’S OFFICERS AND EMPLOYEES

No officer or employee of the City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Consultant or to its successor, or for any breach of any obligation of the terms of this Agreement.

Section 35. INTERPRETATION
This Agreement shall not be interpreted against either party on the grounds that one of the parties was solely responsible for preparing it or caused it to be prepared as both parties were involved in drafting it.

Section 36. PROTECTION AND CORRECTION OF WORK
a. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages.
b. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to the City, when such inaccuracies are due to the fault of Consultant.

Section 37. CAPTIONS AND HEADINGS
The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 38. GOVERNING LAW
The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 39. CUMULATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

Section 40. NO THIRD PARTY BENEFICIARIES

The parties do not intend the benefits of this Agreement to inure to any third party, nor shall any provision of this Agreement be so construed.

Section 41. OTHER GOVERNMENTAL REGULATIONS
To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

Section 42. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT
a. Each of the parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the parties hereto. b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the parties each purports to represent.

Section 43. SUCCESSORS AND ASSIGNS
The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties hereto.

Section 44. SURVIVAL
All obligations arising prior to any termination of this Agreement and all provisions of this Agreement allocating liability between the City and Consultant shall survive any such termination.

Section 45. FINGERPRINTING
Consultant hereby acknowledges that the people working with the City must pass a background check and that s/he is required to be livescanned (fingerprinted) by the City of Desert Hot Springs Police Department, at Consultant’s expense, prior to execution of this Agreement. In the event Consultant does not do so prior to execution, Consultant agrees to do so immediately following execution hereof.

Section 46. USE OF RECYCLED PRODUCTS
Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

CITY OF DESERT HOT SPRINGS
_____________________________
Luke Rainey, City Manager
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_____________________________
Jennifer Mizrahi, City Attorney

THE LEW EDWARDS GROUP
_____________________________
Lloyd A. Edwards, Secretary-Treasurer
N:\DHSO\0001-01 General\Doc\6051

EXHIBIT “A”

SCOPE OF SERVICES AND COMPENSATION SCHEDULE
• Update the City on current Best Practices
• Facilitate and update a coordinated strategy and timeline for Project • Conduct audit of all recent City issues /media coverage in the public arena over past 18 months
• Review archival City budget materials and planning
• Facilitate design of updated opinion research by designated subcontractor FM3 Research for an English language interview sample of up to 400 respondents, approximately 15 minutes
• Analyze survey results, provide Strategic Recommendations for property owner engagement
• Draft Public Messaging/Engagement Platform
• Draft text copy and produce communications collaterals such as FAQs, web content, mailings, utility inserts, digital/online vehicles, and other materials • Conduct updated message training
• Work with City staff on methods to engage affected constituents, expand community awareness of policy, fiscal/service needs and solicit additional community input on City’s proposal/vision
• Provide recommendations to proposed city budget reports, presentations, or documents and project-related staff reports
• Participate in selected City briefing and planning sessions related to budget adoption to maximize messaging
• Assist with rapid response needs from media or the community as necessary to correct misinformation or clarify confusing information (LEG does not function as a city spokesperson)
• Advise City of viability and feasibility of any proposal and confer with City Attorney on measure components
The parties expressly acknowledge and agree that legal services or advice are not within Consultant’s scope of services. When providing direct mail services, Consultant shall facilitate timely delivery to USPS but can only monitor, not ensure delivery once mail is within the possession and control of USPS. Consultant’s services will be provided exclusively via teleconference or videoconference—no on-site visit or travel will be requested by the City.

[Compensation schedule on following page]
Total Not To Exceed (NTE) Contract Amount is One Hundred and Fifty-Four Thousand Dollars and No Cents ($154,000.00).

For Professional Consulting Services: Not to Exceed (NTE) Sixty-One Thousand, Seven Hundred and Fifty Dollars ($61,750.00) as follows:
• Three Thousand, Two Hundred and fifty Dollars ($3,250) due and payable on December 31st, 2022; and
• Nine payments of Six Thousand, Five Hundred Dollars ($6,500) per payment due and payable on the last business day of each month commencing January 31st, 2023 and ending on September 29th, 2023, unless the term of agreement ends sooner.

For Public Opinion Research Services to be conducted by designated subcontractor FM3 Research: NTE Thirty-Four Thousand, Two Hundred and Fifty Dollars ($34,250.00) upon invoice by consultant.

For USPS Direct Mail or Paid Digital production, NTE Fifty-Eight Thousand Dollars ($58,000) for up to four postal mailings of various specifications, inclusive of graphic design, printing/mail house services, and bulk rate postage; or alternatively, City can opt to implement a combination of mail/paid digital communications within this line item.

City agrees to Consultant’s production protocol of no more than two (2) rounds of edits to proposed graphic design layouts, including final review/approval by City Attorney.

Confirmation of legal approval will be necessary prior to printing each item.

Consultant shall invoice per execution of each item. Preceding mailing costs must be paid in full prior to commencing each subsequent mailing or digital placement.

Source: County of Riverside GIS, 2020.

PALM DR

WEST DR

N INDIAN CANYON DR
8TH ST

HACIENDA DR

LITTLE MORONGO RD
4TH ST

MISSION LAKES BLVD
5TH ST
3RD ST
1ST ST
12TH ST

MESQUITE AVE

VERBENA DR
7TH ST

DESERT VIEW AVE

CHOLLA DR
15TH AVE
14TH AVE

IRONWOOD DR

ATLANTIC AVE

WESTERN AVE

SANTA CRUZ RD
8TH AVE

POMELO DR

MIRACLE HILL RD

YUCCA DR

CAMINO CAMPANERO

VALENCIA DR

CALIENTE DR

SKYLINE
DR

CALLE CERRITO

PARK LN WHITEWATER

VIEW RD
16TH AVE

PIERSON BLVD
GG
RB
RB
RB
RB
RB
SM
JP
RN
M:\GIS-Assessment\DHS\LMD1_ZoneB_CouncilProperties.mxd; Map revised March 31, 2020. 0 2,000 4,000 6,000
Feet
LEGEND
Citywide LMD 1
LMD 1 Zone B
Council Member's Property
500 Foot Buffer of
Council Member's Property
RB - Russell Betts
GG - Gary Gardner
SM - Scott Matas
JP - Jan Pye
RN - Roger Nunez
I City of Desert Hot Springs
LMD 1 Zone B with Council Member Properties

SR-23-008
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: January 17, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Mayor's Appointments to Various Intergovernmental and Regional Boards and Committees
RECOMMENDATION:

Ratify Mayor Matas' appointments to the various intergovernmental and regional boards and committees.

BACKGROUND:

Pursuant to Section 6.2 of the City Council's "Meeting Guidelines and Procedures,"

6.2 Council Member Appointments to Boards, Committees, and Commissions The Mayor shall appoint Council Members to all City and intergovernmental Boards, Committees, and Commissions. The majority of the City Council may ratify the Mayor's appointments at a regularly scheduled City Council meeting.

DISCUSSION:

Mayor Matas' proposed appointments are attached hereto and reflected in Exhibit 1.

FISCAL IMPACT:

There is no fiscal impact as a result of this action.

ATTACHMENTS:

City Council Appointments 2023-2024

2023-2024 CITY COUNCIL APPOINTMENTS

OFFICE OF THE CITY CLERK
City of Desert Hot Springs
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) Member Alternate Executive Committee Matas Betts
Energy and Environmental Resources Committee Betts Gardner Homelessness Committee Pye Nuñez
Public Safety Committee Nuñez Pye
Transportation Committee Matas Betts
Coachella Valley Conservation Commission Gardner Matas
REGIONAL BOARDS AND COMMITTEES Member Alternate
Coachella Valley Economic Partnership (CVEP) Board of Directors Nuñez Betts Coachella Valley Mountains Conservancy (State Agency) Gardner Matas Eastern Riverside County Interoperable Communications Authority (ERICA) Matas Gardner Greater Palm Springs Convention and Visitors Bureau (CVB) Gardner Nuñez Palm Springs Airport Commission
(Position is “nominated” by the Desert Hot Springs City Council; and “appointed” by the Palm Springs City Council) Pye N/A Riverside County Transportation Commission (RCTC) Matas Betts SunLine Transit Betts Matas
Animal Campus Pye Gardner
CV Mosquito & Vector Control Board Gardner
Riverside County Airport Land Use Commission
(Appointed by Riverside County City Selection Committee) Betts CAL-ID Board Matas
LIAISON POSITIONS Liaisons
Mission Springs Water District Pye Matas
Hoteliers Association Gardner Betts
Chamber of Commerce Nuñez Matas
Palm Springs Unified School District Matas Nuñez
Desert Health Care District Matas Pye
Cabot’s Museum Foundation Betts Gardner
Historical Society Gardner Pye
League of California Cities Gardner Betts
SCAG (Southern CA Association of Governments) Member
Transportation Committee Betts
CITY COUNCIL SUB-COMMITTEES Chair Co-Chair
Policy Rules and Regulations Gardner Pye

MEETING SCHEDULE
2023-2024
MONDAYS Board, Commission or Committee Time Member Alternate 2nd Monday CVAG Public Safety
CVAG Room 119 9:00 a.m. Nuñez Pye
CV Mountains Conservancy
CVAG, Room 115 (meets every other month) 11:00 a.m. Gardner Matas CVAG Transportation
CVAG Room 119 11:00 a.m. Matas Betts
3rd Monday MSWD Board Meeting (Liaison)
(Study Sessions are Thursday prior to the 3rd
Monday)
3:00 p.m. Pye/Matas
Last Monday CVAG Executive Committee
CVAG Room 119 4:30 p.m. Matas Betts
CVAG General Assembly (June only)
TBD 6:00 p.m. All
2023-2024
TUESDAYS Board, Commission or Committee Time Member Alternate 1st Tuesday City Council Regular Meeting
City Hall – Council Chamber 6:00 p.m. All
2nd Tuesday Coachella Valley Mosquito & Vector
Control District
43-420 Trader Place, Indio
6:00 p.m.

Gary Gardner
First appointed on January 15, 2019
Term expires January 15, 2025
3rd Tuesday City Council Regular Meeting
City Hall – Council Chamber 6:00 p.m. All
2023-2024
WEDNESDAYS Board, Commission or Committee Time Member Alternate 2nd Wednesday Riverside County Transportation
Commission (RCTC)
4080 Lemon Street, Riverside, First Floor
9:30 a.m. Matas Betts
Palm Springs Airport Commission
Palm Springs Airport Conference Room 8:00 a.m. Pye N/A
3rd Wednesday CVAG Homelessness Committee
CVAG, Room 119 10:00 a.m. Pye Nuñez
CVEP Board of Directors
(Meeting locations change monthly) 8:00 a.m. Nuñez Betts 4th Wednesday Sunline Transit Authority
Kelly Board Room 12:00 p.m. Betts Matas
2023-2024
THURSDAYS Board, Commission or Committee Time Member Alternate 1st Thursday Historical Society Liaison 7:00 a.m. Gardner / Pye

2nd Thursday CVEP Legislative Committee
CVAG, Room 119 7:30 a.m. Nuñez Betts
Animal Campus
Meeting Location alternates between:

CVAG Room 119 and Animal Campus
9:30 a.m.
every other
month
Pye Gardner
CVAG Coachella Valley Conservation
Commission 11:00 am Gardner Matas
CVAG Energy & Environmental Resources
CVAG, Room 119 12:00 p.m. Betts Gardner
2023-2024
FRIDAYS Board, Commission or Committee Time Member Alternate 3rd Friday Visit Greater Palm Springs
CVB Boardroom 70-100 Hwy. 111 8:00 a.m. Gardner Nuñez
2023-2024
OTHER Board, Commission or Committee Time Member Alternate ERICA Board
(Eastern Riverside Interoperable
Communications Authority)
Cathedral City
9:00 a.m. Matas Gardner
Hoteliers Association Liaison
TBD 12:00 p.m. Gardner / Betts

SR-23-009
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: January 17, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Appointment of a Delegate and Alternate Delegate for the 2023 Southern California Association of Governments (SCAG) Annual General Assembly RECOMMENDATION:

Appoint a delegate and alternate delegate for the 2023 SCAG Annual General Assembly on May 4, 2023 - May 5, 2023.

DISCUSSION:

The SCAG 2023 General Assembly will be held in Palm Desert at the JW Marriott Desert Springs Resort & Spa on Thursday, May 4, 2023 - Friday, May 5, 2023.

Each year, SCAG member cities select a delegate and alternate representative to participate at this annual meeting.

Council Member Betts currently serves or previously served on the following SCAG Committees:
• Transportation Committee
• Regional Housing Needs Assessment (RHNA) Subcommittee Last year, Council Member Betts was appointed as the Delegate, and Council Member Pye was the Alternate.

The Delegate (or Alternate, in the absence of the Delegate) will have the opportunity to propose any policy matter for determination by the General Assembly in the form of a proposed Resolution and/or to propose revisions to the SCAG Bylaws. The deadline to submit is 5:00 p.m., Friday, February 3, 2023. All proposed Resolutions and/or Bylaws revisions will be reviewed by SCAG’s Bylaws and Resolutions Committee and Regional Council before being considered at the Regional Conference and General Assembly meeting.

FISCAL IMPACT:

None.

SR-23-003
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: January 17, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Amending Chapter 17.190 “Desert Harvest Specific Plan” to Title 17 “Zoning” of the Desert Hot Springs Municipal Code to Establish Zoning Standards for the Desert Harvest Specific Plan Area and renaming the Specific Plan as the “Desert Gateway Specific Plan”
RECOMMENDATION:

Approve Second Reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs, California, amending Chapter 17.190 “Desert Harvest Specific Plan” to Title 17 “Zoning” of the Desert Hot Springs Municipal Code to establish zoning standards for the Desert Harvest Specific Plan Area and renaming the Specific Plan as the “Desert Gateway Specific Plan.” BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on December 6, 2022.

The Ordinance shall take effect thirty (30) days after its second reading.

FISCAL IMPACT:

None.

ATTACHMENTS:

Exhibit 1 - Staff Report from December 6, 2022
Exhibit 2 - Ordinance Amending Chapter 17.190

SR-22-259
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: December 6, 2022
Department: Community Development
Prepared by: Patricia Villagomez, Principal Planner
Subject: A Resolution of the City Council to: 1) Adopt The Addendum to the Mitigated Negative Declaration; 2) Approve Desert Gateway Specific Plan Amendment No. SP 22-3, Amending The Desert Harvest Specific Plan In The City; 3) Approve Design Review No. 22-1; 4) Approve Tract Map No. 22-3 and; 5) Adopt an Ordinance Amending Chapter 17.190 "An Application to Amend the Desert Harvest Specific Plan and Develop a Logistics Center" (IRI DHS Land, LLC)
RECOMMENDATION:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take testimony from Applicant;
5) Take public testimony from those in favor;
6) Take public testimony from those opposed;
7) Take public testimony from those in a neutral position; 8) Opportunity for Applicant rebuttal;
9) Close the Public Hearing;
10) City Council discussion and questions to Staff; and 11) A) Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, to 1) Adopt The Addendum to the Mitigated Negative Declaration; 2) Approve Desert Gateway Specific Plan Amendment No. SP 22-3, Amending The Desert Harvest Specific Plan in the City; 3) Approve a Design Review No. 22-1; and 4) Approve Tract Map No. 22-3; AND B) Introduce for First Reading and read by title only: "An Ordinance Amending Chapter 17.190 “Desert Harvest Specific Plan” to Title 17 “Zoning” of the Desert Hot Springs Municipal Code to Establish Zoning Standards for the Desert Harvest Specific Plan Area and renaming the Specific Plan as the “Desert Gateway Specific Plan.”
BACKGROUND:

The Desert Gateway Specific Plan was originally approved by the City Council on November 7th, 2017, as the “Desert Harvest Specific Plan”. The Specific Plan was intended to facilitate the development of a mixed-use commercial and industrial project and allow for the development of a 1,500,000 sq. ft. cannabis cultivation facility. In addition to approval of the Specific Plan, Tentative Parcel Map, Conditional Use Permit, Development Agreement, General Plan Amendment, and a Zone Text

SR-22-259
Amendment were all processed as part of the original entitlement for the property. Since the approvals, the Tentative Parcel Map and Conditional Use Permit have expired, and the parcel remains vacant.

On November 21st, 2022, in a Special Meeting, the Planning Commission made a recommendation to the City Council for approval.

DISCUSSION:

On June 17th, 2022, the applicant, IRI DHS Land I, LLC, submitted a Specific Plan Amendment (SP 22-3), Design Review (DR 22-1), and Tract Map (TM 22-3). The Desert Gateway Specific Plan is a proposed 65-acre (APN 666-370-019) retail commercial, light industrial, and logistics development located on the northwest corner of 20th Ave and Calle De Los Romos.

This Amendment to the Specific Plan is to allow for logistics/warehouse uses as well as commercial retail and also provide for updated development guidelines and regulations to allow for an updated, contemporary development strategy. The Desert Gateway Specific Plan Amendment propose to develop a mixed-use project on approximately 65-acres within two (2) planning areas that would provide for a variety of retail commercial, logistics, and light industrial uses.

SETTING
The Zoning, General Plan Land-Use designations, and current land uses for surrounding properties are as follows:

Table 1: Surrounding Land Uses

Zoning & General Plan
Designations Current Land-Use
North Light Industrial
(I-L) Cannabis Business Park
West Commercial Business Park
(C-BP) Commercial Business Park
South Un-Incorporated
Palm Springs & I-10 Vacant Parcel
East Light Industrial
(I-L) Vacant Parcel
MASTER PLAN – LAND USE PLAN
The Specific Plan Amendment would allow up to 1,060,000 sq. ft. of logistics/warehousing, and light industrial space, 42,000 sq. ft. of retail commercial, and two (2) hotels totaling up to 150 keys within two (2) distinct Planning Areas. Table 2 provides a summary of uses and square footages within the project site.

Table 2:

Planning Area Acres Maximum Sq. Ft. Maximum # of Keys
PA – 1 (Retail
Commercial) 11 Up to 42,000 sq. ft. Up to 150 Keys
PA – 2 (Light
Industrial) 53 Up to 1,060,000 sq. ft.

Total 64 150 Keys

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The Specific Plan is divided into two Planning Areas, each corresponding with a basic land use component. A Cannabis Overlay exists over the two planning areas that allow for the development of cannabis related uses as per Section 17.180 of the DHSMC.

Planning Area 1 (PA-1) – Retail Commercial: Consists of approximately 11 acres of land and will allow for community commercial uses. Representative uses within this planning area include restaurants (including drive-thru), hotels, and commercial retail.

Planning Area 2 (PA-2) – Light Industrial, Logistics, and Warehousing: Consists of approximately 53 acres of land and will allow for a variety of uses such as light industrial, logistics, warehousing, and cannabis cultivation.

Permitted Uses Table: The following are some of the permitted uses that will be allowed within the Specific Plan a complete list of all allowable uses can be found within Exhibit 1.

P – Permitted Use
DR – Design Review
C – Conditional Use Permit
- Not Allowed
Table 3:

Allowable Uses PA – 1 PA - 2
Hotel DR -
Drive-in and Drive-through
Sales DR -
Entertainment Facilities DR -
Restaurants, with Alcoholic
Beverages DR -
Shopping Centers DR -
Cannabis Cultivation - CUP
Cannabis Manufacturing - CUP
Cannabis Distribution - CUP
Logistics, Distribution,
warehousing - DR

SPECIFIC PLAN DEVELOPMENT STANDARDS
The following are the Development Standards for Planning Area 1 and Planning Area 2 for the Desert Harvest Specific Plan Amendment, below.

Table 4: PA -1
Minimum Lot Size 5,000 sq. ft.

Minimum Front Setback 20 feet
Minimum Side Setback Zero
Minimum Rear Setback Zero

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Minimum Distance between Buildings 20 feet (1)
Maximum Structure Height 35 feet
Maximum Building Lot Coverage 35%
Off Street Parking (2)
Cannabis Dispensaries: 1 space/250 sq. ft.

Restaurants (sit downs): 1 space/75 sq. ft.

Restaurant (drive through): 1 space/100 sq. ft.

Hotel: Per DHSMC
Notes:
(1) Unless attached buildings are proposed, where no side yard or building separation would be required. (2) Any use not listed would be in accordance with DHSMC Section 17.48.040 TABLE 5: PA – 2
Minimum Lot Size 20,000 sq. ft
Minimum Public Street Setback 20 feet
Minimum Side Setback (1)(2) 10 feet
Minimum Rear Setback 10 feet
Minimum Distance between Buildings (1)(2) 20 feet (1)
Max Height (3) 5 Stories/100 feet
Maximum Building Coverage 75%
Off Street Parking (4)
Office/Administration
• 1 Space/250 sq. ft.

Manufacturing/Processing
• 1 space/750 sq. ft.

Laboratory
• 1 Space/750 sq. ft.

Cannabis Cultivation
• 1 Space/2,500 sq. ft. (5)
Warehousing/Logistics
• 1 Space/750 sq. ft. of gfa for the first 20,000
sq. ft.
• 1 Space/2,000 sq. ft. of gfa for the 2nd
20,000 sq. ft.
• 1 Space/4,000 sq. ft. of gfa more than
40,000 sq. ft.

Notes:
(1) (1) Except when attached buildings are proposed where side yard or building separation would not be required. (2) (2) For PA – 2, all interior lot lines would be considered side yards. (3) (3) Height measured from surrounding finished grade. Basements are allowed but do not count toward overall building height or number of stories.
(4) (4) Any use not listed would be in accordance with DHSMC Section 17.48.040 (5) (5) Including hallways, mechanical rooms, elevator shafts, stairways, storage areas, restrooms, locker rooms, packaging rooms, break rooms, and similar support areas within buildings where cultivation is the primary function.

ARCHITECTURAL DESIGN GUIDELINES

SR-22-259
The Specific Plan allows for a wide range of commercial and industrial uses. Therefore, it is anticipated that the site will be developed with a range of architectural styles, materials, and building types. The guidelines will establish and ensure that all development within the Specific Plan is complementary within the Specific Plan and with the surrounding community. Any and all projects within the project site must be consistent with the design guidelines. The following are some of the guidelines that the developers will need to follow: for a complete list of Architectural Design Guidelines see Exhibit 1.

Planning Area 1 (PA – 1)
• Interesting and varied materials to include different plaster textures, stone tile, ceramic or porcelain tiles, cementitious simulated wood materials, various metals and finishes. • Three-dimensional massing of forms with offsets to create shadow lines, opportunities to change color and materials, and to create a more welcoming human scale. • Windows and glass walls that are recessed in thickened walls where practical to further create shadow lines and shade the glass
Planning Area 2 (PA – 2)
• A consistent architectural style is encouraged to be used for a building and associated accessory structures.
• Pedestrian access to buildings accessible to visitors should be easily identifiable through use of massing, building materials, and or colors.
• Roof top screening shall be integrated as part of building structure.

DESIGN REVIEW
Per Section 3.2 Permitted Uses of the Specific Plan Amendment (Exhibit 1), a Design Review application is required for the development of a proposed Logistics and Warehousing Building. The proposed development will be located on PA – 2 which allows for this type of “Use” with approval of a Design Review application. The applicant proposes to develop a 1,061,090 sq. ft. logistics and warehousing on a 53-acre parcel (PA – 2). The proposed development would include a single story with a footprint of approximately 1,061,090 sq. ft., the building height would not exceed 50 feet.

EMPLOYMENT
The logistics/warehousing building anticipates hiring approximately 450 employees.

CIRCULATION
The Desert Gateway project has direct and convenient vehicular access to the Interstate 10 Freeway via Indian Canyon and 20th Avenue, a paved road that is not fully constructed to current standards.

The southern commercial areas would be accessible to the public during normal business hours while the northern light industrial area will be fenced, gated and accessed only by authorized personnel. The vehicular circulation system consists of an interior network of drive aisles that provide access to the parking, loading and service areas associated with each commercial and industrial building. The drive aisles will be 24 – 30 feet wide as needed for consistency with Fire Department standards.

Pedestrian circulation to the commercial building (PA – 1) will be provided via public sidewalks on 20th Avenue and Calle De Los Romos. Each commercial entry incorporates walkway connections to allow pedestrian access from the surrounding public streets.

ENTRIES

SR-22-259
Vehicular access to the site will be from 20th Avenue and Calle De Los Romos via driveways to each Planning Area. The entries would include landscaping, entry signage, and pedestrian walkway connections.

PARKING AND LOADING
Loading areas suitable for various vehicle types, including semi-trucks will be provided at the northernmost processing building and accessible via a primary and secondary service gate on Calle De Los Romos. Vehicles would enter through the northerly gate, process to the processing building, load/unload, then exit through the southerly gate. The logistics/warehouse will have 82 dock doors on the south side of the building and 86 dock doors on the north side of the building.

Parking will be provided to serve each proposed “Use”. Parking standards for each Planning Area (PA – 1 & PA – 2) are provided within the Specific Plan Amendment (Exhibit 1) Chapter 3 (Table 3.2 & Table 3.3). A parking analysis is outlined below for the proposed development of the logistics/warehousing building.

Table 6: Parking Calculation
Proposed Use Square Footage Parking Ratio Parking Required Office 20,000 sq. ft. 1 space per 250 sq. ft. 80
Logistics/Warehouse
First 20,000 SF of
GFA
Second 20,000 SF of
GFA
Remainder of GFA
1,061,090 sq. ft.
20,000 sq. ft.
20,000 sq. ft
1,001,090 sq. ft
1 space per 750 sq. ft.
1 space per 2,000 sq.
ft
1 space per 4,000 sq.
ft
27 10
251
Total Parking
Required 368
Total Parking Provided 549
Trailer Parking
Provided 498

ELEVATIONS, COLORS, AND MATERIALS
The proposed logistics/warehouse building will be a concrete tilt up construction. The exterior finishes will have a smooth concrete palette of greys, and red stripping to add a variation. The entry doors on the elevations shows a red canopy installed above to shade the pedestrian entries, the windows and doors will have a blue reflective glass. The building elevations are similar to other industrial buildings in the area and will have architectural panels with alternating colors of greys. The overall architecture is simple and modern, and the color scheme is appropriate to the design. The material sample board is included (Exhibit 8) for reference.

LANDSCAPE
Landscaping plants, materials and irrigation systems will be installed by the project developer and maintained in accordance with the Specific Plan Amendment. Consistent with the emphasis placed by the City on water conservation, the plant species selected for this project are desert hardy with irrigation systems that comply with the City-adopted recommendations of the Mission Springs Water District (MSWD). Table 4 below will provide a breakdown of some of the proposed landscape:

SR-22-259
Table 7: Landscape Plan
Biological Name Quantity Size
Blue Palo Verde 27 24’’ Box
Desert Museum 7 36’’ Box
Texas Mountain Laurel 41 15 Gallon
Manzanillo Olive 6 36’’ Box
Afriacan Sumac 92 24’’ Box
Yello Bird of Paradise Varies 5 Gallon
Maui Yellow Varies 5 Gallon
Compact Texas Ranger Varies 5 Gallon
Bougainvillea Varies 5 Gallon

PHASING PLAN
Phasing for the Development of the Desert Gateway Specific Plan Amendment may occur as a single developer or incrementally as multiple developers propose individual component projects per Section

2.8 of the Specific Plan Amendment. At this time the applicant has submitted a Design Review application for the development of a 1,061,090 sq. ft. logistics/warehouse building. The development has been conditioned to construct all off-site street improvements, and infrastructure as part of the development.

Tentative Parcel Map:

Tentative Parcel Map No. 38435 has been submitted as part of the entitlement applications. The Tentative Parcel Map is for the subdivision of a single parcel of approximately 64 acres, into four (4) individual parcels. A breakdown of the proposed subdivision is as follows:

Parcel No. Acreage Planning Area
1 3.10 PA - 1
2 4.13 PA - 1
3 3.46 PA - 1
4 52.72 PA - 2
The Tentative Parcel Map is processed under Section 16.24.150 Subdivision Maps “Commission Determination” of the Desert Hot Springs Municipal Code (“DHSMC”):

A. Notice of Public Hearings. Upon receipt of a complete tentative map application, the Department shall prepare a report with recommendations after environmental review by the Director. The Department shall set the matter for public hearing before the Commission, pursuant to Chapter 17.104.

A copy of the Department report shall be mailed to the subdivider at least 3 days prior to the public hearing at the address designated on the application.

B. Action. The Commission shall approve, conditionally approve or deny the tentative map within 50 days after the tentative map application has been determined by the Department to be complete and report the decision to the subdivider. If an environmental impact report is prepared, the decision by the Commission shall be made 45 days after certification of the report.

SR-22-259
C. Determination. The tentative map may be approved or conditionally approved by the Commission if it finds that the proposed subdivision, together with the provisions for its design and improvements, are consistent with the General Plan, and applicable specific plan, and all applicable provisions of the municipal code. The Commission may require, as a condition of its approval, that the payment by the subdivider of all development fees, required to be paid at the time of the application for, or issuance of, a building permit or other similar permit, shall be made at the rate for applicable fees in effect at the time of said application or issuance of a building or similar permit.

D. The tentative map may be denied by the Commission on any of the grounds contained in the Map Act, General Plan or the municipal code.

FENCING PLAN
The proposed logistics/warehouse has provided a fencing plan. The fencing plan include the installation of an 8-foot-high wrought iron fence with an 8-foot metal swing gate for access. The proposed wrought fencing will provide secured access to the logistics/warehouse building.

LIGHTING
An exterior photometric plan will be reviewed, and it shall indicate wall packs and freestanding poles that would be provide lighting throughout the site, with an average two foot-candles provided at entrances, and loading doors. The plan must meet the requirements of Section 17.12.370 for lighting in the Industrial Zone.

SIGNAGE
The applicant has not proposed any signage at this time. Staff will evaluate signage for conformance with the zoning code as a separate application, and a condition has been added that all future signage will require a separate review and approval.

NOTICING REQUIREMENT
The project was noticed to neighboring owners within a 300-foot radius of the project site on November 22nd, 2022 and was advertised in the Desert Star Weekly on November 23rd, 2022 per state noticing requirements.

FISCAL IMPACT:

The applicant has paid all application fees related to the Specific Plan Amendment, Design Review and Tentative Tract Map for entitlements. Additionally, the proposed development will be subject to all Building Permit fees and property taxes.

ENVIRONMENTAL ANALYSIS:

In accordance with CEQA Guidelines, an Addendum to the Mitigated Negative Declaration addresses the potential environmental impacts associated with the revised uses of the proposed development and provides an evaluation of potential environmental impacts in relation to the original project evaluated in the adopted MND, as well as the new environmental topics required by the most current CEQA Guidelines. Pursuant to Section 15164(d) of the CEQA Guidelines, an Addendum is appropriate if the projects changes, or modifications do not result in any new significant impacts or a substantial increase in severity of previously identified significant impacts. The Planning Commission only needs to make a finding that the request for an Addendum is consistent with the original MND, and no further analysis is required.

OPTIONAL:

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SPECIFIC PLAN APPROVAL FINDINGS
Under Section 17.128.070 of the Desert Hot Springs Municipal Code, a Specific Plan may only be adopted only if all of the following findings are made:

1. The proposed plan is consistent with the General Plan; The proposed Specific Plan Amendment has been evaluated against the General Plan of the City of Desert Hot Springs to identify any potential inconsistencies. The proposed Specific Plan Amendment introduces limited industrial and retail commercial uses to a site presently designated I-L (Light Industrial) but provides for adequate public and private improvements to avoid conflicts with the General Plan Land Use, Circulation, Housing and other Elements of the Community Development Chapter; as well as with the Environmental Resources, Environmental Hazards, and Public Facilities and Facilities Chapters. Staff has identified no inconsistencies between the proposed Specific Plan Amendment and the General Plan. Staff recommends this finding.

2. The proposed plan would not be detrimental to the public interest, health, safety, convenience, or welfare of the City;
The proposed Specific Plan Amendment provides for development of a mixed-use commercial/industrial development, including provisions for public and private improvements to address vehicular circulation, including emergency services, as well as drainage, air quality and other environmental factors. The proposed Specific Plan Amendment implements General Plan economic goals through the establishment of polices and regulations supporting a logistics/warehouse building.

Staff has concluded that the proposal would not be detrimental to the public interest, health, safety, convenience or welfare of the City. Staff recommends this finding.

3. The subject property is physically suitable for the requested land use designation(s) and the anticipated land use development(s);
The proposed Specific Plan Amendment would amend the General Pan Land Use Map for the vacant 64-acre site to establish Planning Area to support development of a mixed-use commercial/industrial complex. The site is generally flat and squared-shaped to allow for development according to the Specific’s Plan standards and guidelines. Public streets fronting all property boundaries of the site provide adequate access, and no physical constraints to the proposed development have been identified. The Specific Plan’s amendment provides for a mix of uses that are compatible with surrounding industrial and commercial zones. Staff believes the subject parcel is physically suitable for the requested land use designation and anticipated development. Staff recommends this finding.

4. The proposed plan shall ensure development of desirable character which will be compatible with existing and proposed development in the surrounding neighborhood; The proposed Specific Plan Amendment includes development regulations (zoning standards), design guidelines and review procedures to assure that future development of the site is of a desirable character, both functionally and esthetically. These regulations, guidelines and procedures will also assure that the commercial and industrial uses allowed on the site are compatible with surrounding commercial and industrial development. Staff recommends this finding.

5. The proposed plan will contribute to a balance of land uses so that local residents may work and shop in the community in which they live.

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The proposed Specific Plan Amendment will convert a small amount (11-acres) of industrially zoned land to commercial use. The mix of commercial and industrial uses on the site including a logistics/warehousing complex, will create employment and shopping opportunities for the Desert Hot Springs community. Staff believes that the proposed Specific Plan Amendment will contribute to a balance of land uses, within which local residents may both work and dine. Staff recommends this finding.

DESIGN REVIEW FINDINGS
Under Section 17.80.040 of the Desert Hot Springs Municipal Code, the Design Review may only be approved only if all of the following findings are made:

1. The design of the proposed project would provide a desirable environment for its occupants and visiting public as well as its neighbors through good aesthetic use of materials, textures, and colors that will remain appealing and will retain a reasonably adequate level of maintenance;
The proposed logistics/warehouse building which is specifically labeled as an allowable “Use” with an approval of a Design Review within the table of permitted uses (Table 3.1, Desert Gateway Specific Plan Amendment) for Planning Area 2 (PA – 2) designation. The proposed development of the site and the project is consistent with the development standards and design guidelines, in reference to density, setbacks, height, open space, and architecture. Staff recommends this finding.

2. The design and layout of the proposed project will not unreasonably interfere with the use and enjoyment of neighboring existing or future development, and will not result in vehicular and/or pedestrian hazards;
The proposed Specific Plan Amendment for the development of a 1,061,090 sq. ft. logistics/warehouse building on a vacant 52 acres site is consistent with the Zoning and General Plan land-use designations and is consistent with other development in the vicinity. The allowable building coverage is 75% for the SP/I-L zoning district. The project’s building footprint only proposes to cover approximately 46% of the site. Therefore, the project is of less intensity that what is allowed in the SP Development Standards.

Staff recommends this finding.

3. The architectural design of the proposed project is compatible with the character of the surrounding neighborhood and will maintain the harmonious, orderly and attractive development contemplated by this Zoning Ordinance and the General Plan; A logistics/warehouse building is specifically allowed as a “DR” (Design Review) within Planning Area 2 (PA – 2) of the Desert Gateway Specific Plan. The proposed development site is located in a partially developed area of the city and surrounding county lands. Development to the north and west are partially developed and to the east it is presently vacant. Land immediately to the south it is bounded by 20th Avenue and the I-10 Freeway. Staff recommends this finding.

TENTATIVE MAP FINDINGS
Under Section 16.24.150 of the Desert Hot Springs Municipal Code, the Commission shall deny the tentative map if it makes any of the following mandatory findings contained in Map Act Section 66474:

SR-22-259

1. That the proposed map is not consistent with the applicable general and specific plans as specified in Section 65451;

2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans;

3. That the site is not physically suitable for the type of development;

4. That the site is not physically suitable for the proposed density of development;

5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat;

6. That the design of the subdivision or type of improvements is likely to cause serious public health problems;

7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision;
ATTACHMENTS:

EXHIBIT 1 - Resolution
EXHIBIT 2 - Draft Desert Gateway Specific Plan Amendment EXHIBIT 3 - Draft Addendum to the Mitigated Negative Declaration EXHIBIT 4 - Draft Conditions of Approval
EXHIBIT 5 - Ordinance Amending Chapter 17.190
EXHIBIT 6 - Proposed Site Plan
EXHIBIT 7 - Proposed Colored Elevations
EXHIBIT 8 - Proposed Material Board
EXHIBIT 9 - Tentative Parcel Map No. 38435
EXHIBIT 10 - Original Approved Specific Plan Desert Harvest Specific Plan EXHIBIT 11 - Original Staff Report Desert Harvest Specific Plan EXHIBIT 12 - Original Approved Site Plan Desert Harvest Specific Plan EXHIBIT 13 - Certified Mitigated Negative Declaration Desert Harvest Specific Plan EXHIBIT 14 - Comment Letter 1
EXHIBIT 15 - Comment Letter 2
EXHIBIT 16 - Response to Comments

ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS 1) AMENDING CHAPTER 17.190 “DESERT HARVEST
SPECIFIC PLAN” TO TITLE 17 “ZONING” OF THE DESERT HOT

SPRINGS MUNICIPAL CODE TO ESTABLISH ZONING STANDARDS
FOR THE DESERT HARVEST SPECIFIC PLAN AREA AND 2)
RENAMING THE SPECIFIC PLAN AS THE “DESERT GATEWAY
SPECIFIC PLAN”
WHEREAS, the City of Desert Hot Springs (“City”) has a responsibility to plan and regulate the use of property within the City; and
WHEREAS, the City has received an application to amend the Municipal Code through the adoption of the Desert Harvest Specific Plan SP 02-17 (“Specific Plan”) for a vacant 64.9- acre property (APN 666-370-109), as well as supporting applications for Specific Plan Amendment 22-3, Tentative Map 22-3 and Design Review 22-1 collectively “Project”); and WHEREAS, the Desert Hot Springs Municipal Code (“DHSMC”) provides for the adoption of Specific Plans and related actions, as follows:
• Chapter 17.88 provides for the adoption of Zoning Ordinance Amendments; • Chapter 17.100 provides for the adoption of General Plan Amendments; • Chapter 17.128 provides for the approval of Specific Plans; and WHEREAS, the City Council desires to 1) amend Chapter 17.190 “Desert Harvest Specific Plan”, to provide a comprehensive set of zoning regulations to facilitate the development of the subject site, while at the same time ensuring that such development does not conflict with the General Plan, is not inconsistent with surrounding uses, and is not detrimental to the public health, safety and welfare, and rename the specific plan to the “Desert Gateway Specific Plan”; and
WHEREAS, the City Council finds that the adoption of this ordinance has been adequately evaluated by the applicable provisions of the California Environmental Quality Act (CEQA), and that the City Council hereby certifies the Mitigated Negative Declaration and Mitigation Monitoring Program prepared from the Initial Study (see accompanying Resolution for the Project); and
WHEREAS, the City Council finds this ordinance is not detrimental to the public interest, health, safety, convenience, or welfare of the City and is for the convenience and general welfare of the City; and
WHEREAS, this Ordinance is compatible with the general objectives of the General Plan and the Desert Harvest Specific Plan, in that the subject uses and standards conform goals, policies and standards of the General Plan and Specific Plan; and WHEREAS, the City’s Planning Commission held a public hearing, considered this Ordinance (along with the Project), and made a positive recommendation to the City Council; and

WHEREAS, on December 6, 2022, the City Council concluded the public hearings and considered this Ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS:

Section 1. RECITALS.

The Recitals are true and correct and are hereby incorporated by this reference.

Section 2. EVIDENCE
That the City Council has considered all of the evidence submitted into the administrative record, which includes, but is not limited to, the following:
(a) The City’s Municipal Code and its General Plan, including updates; (b) The documents that consist of the Project;
(c) All of the environmental documents;
(d) The adopted Desert Harvest Specific Plan;
(e) Testimony and/or comments from all persons including the Applicant and its representatives submitted to the City in both written and oral form at, or prior to, the public hearing conducted at the Planning Commission; (f) Planning Commission’s recommendation; and
(g) Public comments, both written and oral, received and/or submitted at, or prior to the City Council’s consideration of this ordinance.

Section 3. ADMENDING CHAPTER 17.190 “DESERT HARVEST SPECIFIC PLAN” TO TITLE 17 “ZONING” TO THE “DESERT GATEWAY
SPECIFIC PLAN”
Chapter 17.190 “Desert Harvest Specific Plan” shall change its name to the Desert Gateway Specific Plan and is hereby amended to read as follows:

17.190.010. – Desert Gateway Specific Plan Map
The area of the Desert Gateway Specific Plan is set forth on the following map, including the establishment of Planning Areas PA-1and PA-2.

17.190.020. – Desert Gateway Specific Plan – Permitted Uses Table The following tables for permitted uses shall govern:

TABLE 3.1

PERMITTED USES
Allowable Uses1 PA-1 PA-2
P-Permitted Use, DR - Design Review, C – Conditional Use Permit, Blank – Not Allowed.

Commercial Retail
Hotel DR -
Banks and Financial Services DR -
Convenience Stores DR -
Cycling/Motorcycle Stores DR -
Drive-in and Drive-through Sales DR -
Drug Stores DR -
Dry Cleaners DR -
Entertainment Facilities DR -
Food Products DR -
Grocery Stores and Markets DR -
Health/Fitness Facilities DR -
Indoor Recreation Facilities DR -
Liquor Stores DR -
Marijuana Dispensaries DR -
Medical Services DR -
Motor Vehicle Fueling/Service Stations DR -
Commercial Retail Uses Continued
PA-1 PA-2
Offices DR -
Personal Services DR -
Pet Grooming DR -
Printing/Publishing DR -
Restaurants, with alcoholic beverages DR -
Restaurants, Drive In DR -
Retail Stores, General Merchandise DR -
Shopping Centers DR -
Studios DR -

Wholesaling DR -
Accessory uses (customarily incidental to a permitted
use when located on the same site with the main
building and use.)
DR
-
Commercial Gardening DR -
Crop Production DR -
Food Products DR -
Testing Laboratories DR -
Cannabis Cultivation
Commercial Gardening - DR
Crop Production - DR
Food Processing - DR
Motor Vehicle Fueling - DR
Light Manufacturing Facilities - DR
Marijuana Cultivation - CUP
Marijuana Manufacturing /Extraction / Processing - CUP
Marijuana Distribution/ Packaging/ Shipping - CUP
Marijuana Testing Laboratories - CUP
Mixed Use Industrial/Offices - DR
Offices - DR
Security Services - DR
Storage - DR
Utilities - DR
Interim Marijuana Facilities1 - DR
Accessory uses (customarily incidental to a permitted
use when located on the same site with the main
building and use.)
- DR
Logistics, storage, and distribution
Wholesale, storage, and / or distribution centers
(including high-cube warehouses) - DR
Accessory uses (customarily incidental to a permitted
use when located on the same site with the main
building and use.)
- DR
Notes:

1. Cultivation projects with multiple uses may incorporate all uses under a common CUP application.

2. All uses listed in the City’s Light Industrial (I-L) w / Cannabis Overlay Zone that are not specified in the table above for PA-2 shall be allowed in PA-2 subject to the appropriate permit type as described in Section 17.16.020 Permitted uses of the Desert Hot Springs Municipal Code (DHSMC)

3. The general review authority (Planning Commission, City Council, etc.) for the subject permits above shall be determined as outlined in the DHSMC.

17.190.030. – Desert Gateway Specific Plan – Development Standards The following development standards shall govern:

TABLE 3.2
PA-1 DEVELOPMENT STANDARDS
Min Lot Size 5,000 sf
Min Front Setback 20 ft
Min. Side Setback Zero
Min. Rear Setback Zero
Min Distance between Buildings 20 ft1
Max. Structure Height 35 ft
Max Building Coverage 35%
Off Street Parking2
Marijuana Dispensaries: 1 space/250 SF
Restaurant (Sit Down): 1 space/75 SF GFA
Restaurant (Drive Through): 1 space/100 SF GFA
Hotel: Per City Code
Notes:

1. Unless attached buildings are proposed, where no side yard or building separation would be required.

2. Any use not listed would be in accordance with DHS Municipal Code 17.48.040.

TABLE 3.3
PA-2 DEVELOPMENT STANDARDS
Min Lot Size 20,000 sf
Min. Public Street Setback 20 ft
Min. Side Setback 1,2 10 ft
Min. Rear Setback 10 ft
Min Distance between Buildings 1,2 20 ft1

Max Height3, 5 stories / 100 ft
Max Building Coverage 75%
Off Street Parking4
Office/Administration
▪ 1 space/ 250 SF
Manufacturing/Processing
▪ 1 space/750 SF
Laboratory
▪ 1 space/750 SF
Marijuana Cultivation
▪ 1 space/2,500 SF 5
Warehousing / Logistics
▪ 1/750 sq. ft. of gross floor area for the
first 20,000 sq. ft.;
▪ 1/ea. 2,000 sq. ft. of gross floor area
for the second 20,000 sq. ft.;
▪ 1/ea. 4,000 sq. ft. of gross floor area
for areas in excess of the initial 40,000
sq. ft
Notes:

1. Except when attached buildings are proposed where side yard or building separation would not be required.

2. For PA3, all interior lot lines would be considered side yards.

3. Height measured from surrounding finished grade. Basements are allowed but do not count toward overall building height or number of stories.

4. Any use not listed would be in accordance with DHS Municipal Code 17.48.040

5. Including hallways, mechanical rooms, elevator shafts, stairways, storage areas, restrooms, locker rooms, packaging rooms, break rooms and similar support areas within buildings where cultivation is the primary function.

17.190.040 – Review and Approval
A. All uses within the Desert Gateway Specific Plan Planning Areas shall be subject to review and approval for conformance with this Chapter.

B. Uses which are indicated as “P” (Permitted) shall require, for any related construction or development, review and approval by the Planning Commission, in accordance with Section 17.80 (Design Review).

C. Uses which are indicated as “C” (Conditionally Permitted) shall require review and approval by the Planning Commission in accordance with Section 17.76 (Conditional Use Permits).

D. Required findings for approval of Design Review (Section 17.80.040) or Conditional Use Permit (Section 17.76.050) shall include consideration of the Design Guidelines of the Desert Gateway Specific Plan.

Section 4. ENVIRONMENTAL FINDINGS

Based upon the initial study, the negative declaration, the comments received thereon, and the record before the City Council, the City Council hereby finds that the addendum to the negative declaration prepared for the Project represents the independent judgment of the City and that there is no substantial evidence that the approval of the Project may have any significant environmental impact, which can be mitigated with the Mitigation Monitoring Plan.

The documents and other material which constitute the record on which this decision is based are located in the Department of Planning. The City Council, therefore, certifies the negative declaration prepared for the Project.

Section 5. GENERAL PLAN CONSISTENCY FINDINGS
The City Council finds this amendment is compatible with the general objectives of the General Plan and any applicable specific plan, in that the subject uses would be conditionally permitted in Commercial General districts, similar to other permitted and conditionally permitted uses, and in that the use will be subject to strict review and conditions.

Section 6. GENERAL FINDINGS
The City Council finds this ordinance is not detrimental to the public interest, health, safety, convenience, or welfare of the City.

Section 7. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 8. AMENDING OF BAIL SCHEDULE
That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 9. EXECUTION AND CERTIFICATION
That the City Clerk is directed to do all things necessary to cause the execution of this ordinance immediately upon its adoption and shall thereafter certify to the passage of this ordinance and cause the same to be published according to law.

Section 10. EFFECTIVE DATE
That this ordinance shall take effect thirty (30) days after its second reading by the City Council.
[END OF PAGE]

The foregoing Ordinance was approved and adopted at a meeting of the City Council held on ______________________, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Jerryl Soriano, City Clerk
Scott Matas, Mayor
APPROVED AS TO FORM:

Jennifer A. Mizrahi,
City Attorney