Agenda packet — Lake Elsinore City Council, March 10, 2026 (part 1 of 4)

City of Lake Elsinore Meeting Date:

City Council Meeting March 10, 2026
Agenda
Cultural Center Meeting Time:
183 N. Main Street Closed Session: 5:00 PM
Lake Elsinore, CA 92530 Open Session: 7:00 PM
Mayor Magee
Mayor Pro Tem Sheridan
Council Member Tisdale
Council Member Manos
Council Member Carroll
The City of Lake Elsinore appreciates your attendance. Citizens’ comments, input and interests provide the City Council with valuable information regarding issues of the community.

Meeting Information
Meetings are held on the 2nd and 4th Tuesday of every month, and the agenda is posted 72 hours prior to each meeting outside of City Hall. The agenda and related reports are also available on the City’s website at www.Lake-Elsinore.org. Meetings are conducted in person, televised live on Spectrum Cable Station Channel 29 and Frontier Cable Channel 31, and streamed online at http://www.lake-elsinore.org/city-government/citycouncil/webcast-videos. If you are attending the meeting in person, please park in the parking lot across the street from the Cultural Center to assist us in limiting the impact of meetings on the Downtown Business District. Thank you for your cooperation.

Public Comments – Addressing the City Council
Any person wishing to address the City Council on items not included on the Agenda may do so during Public Comments for 1 minute at the beginning of the meeting or during Public Comments for 3 minutes at the end of the meeting. We respectfully ask those interested in addressing the City Council to either submit a request to speak online at http://www.lake-elsinore.org/city-government/agendas-and-minutes or complete and present a “Request to Speak” form to the City Clerk at the meeting. This Form is available on the table located inside the Council Chamber. Members of the public may also provide comments on Agenda items by noting the item on the “Request to Speak” form and will be called to address the City Council when the item is considered by the City Council during the meeting.

Written Communications
If you would like to submit written public comments, you may do so prior to the meeting either by entering them online at the link above or emailing them to the City Clerk at [email protected]. Any written communications or additional documents distributed to the City Council within 72 hours of the meeting will also be made available to the public in accordance with Government Code Section 54957.5.

Accessibility Accommodations
In compliance with the Americans with Disabilities Act, any person with a disability who requires a modification or accommodation in order to participate in a meeting should contact the City Clerk’s Department at (951) 674- 3124, Option 6, at least 48 hours before the meeting to make reasonable arrangements to ensure accessibility.

Dream Extreme 2040 is the City’s FIRST long-term strategic plan to assist the City in its pursuit of achieving its vision. The plan is a living document that will be updated regularly and serve as the framework to guide all decision-making over the next 20 years by identifying key Anchors, Aspirations, and Strategies.

Our Vision is that the City of Lake Elsinore will be the ultimate destination where all can live, work, play, build futures, and fulfill dreams.

The Anchors are the City of Lake Elsinore’s unique community assets and opportunities: The Lake, Downtown, and Action and Adventure.
• The Lake: Lake Elsinore is a vital community asset. Protecting, enhancing, and celebrating the Lake is critical to the health of the City and community.
• Downtown: Enhancing and creating the highest-quality downtown experience will serve to establish a strong sense of place that will shape the City’s identity as a place where residents and visitors can live, work, and play.
• Action and Adventure: Lake Elsinore’s programs, facilities, and natural environment will define the City as a destination for action and adventure for both visitors and residents.

Our Aspirations are broad, long-term goals that encapsulate what we hope to achieve in Lake Elsinore’s future. The City has identified 4 key aspirations to work towards.

Items on the agenda that align with Aspirations from the Dream Extreme 2040 Plan are noted by the Aspiration’s icon to highlight City Council actions that help the City pursue its goals.

To read the plan and learn more about its implementation in the City, visit www.LakeElsinore.org/DreamExtreme2040.

City Council Agenda March 10, 2026
City of Lake Elsinore Page 2
CALL TO ORDER - 5:00 P.M.

ROLL CALL

PUBLIC COMMENTS ON CLOSED SESSION ITEMS

CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATOR (Gov’t Code Section 54957.6) Recommendation:

City negotiators: City Manager Jason Simpson; Assistant City Manager Shannon Buckley, Special Counsel Nate Kowalski
Employee organization: Lake Elsinore Chapter of Laborer’s International Union of North America, Local 777
RECESS
The City Council will recess to Closed Session.

RECONVENE/CALL TO ORDER - 7:00 P.M.

The Regular Meeting of the City Council will reconvene and the Regular Meeting of the Successor Agency will be called to order.

PLEDGE OF ALLEGIANCE

ROLL CALL

CLOSED SESSION REPORT

PRESENTATIONS/CEREMONIALS
CalFire 2025 Fourth Quarter Statistical Update
Recommendation:

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE
(Please read & complete a Request to Address the City Council/Successor Agency form prior to the start of the meeting and turn it in to the City Clerk/Clerk. The Mayor/Chair or City Clerk/Clerk will call on you to speak.)

CITY COUNCIL CONSENT CALENDAR
Minutes of the Regular City Council Meeting of February 24, 2026 Recommendation:

Approve the Minutes.

CC Warrant Report Dated February 09, 2026, to February 15, 2026

1. 2.

3. 4.

4.1 5.

6. 7.

8. 9.

10. 10.1

11. 12.

12.1 12.2
City Council Agenda March 10, 2026
City of Lake Elsinore Page 3
Recommendation:

Receive and file.

City Council Agenda March 10, 2026
City of Lake Elsinore Page 4
CC Warrant Report Dated February 16, 2026, to February 22, 2026 Recommendation:

Receive and file.

Second Reading of an Ordinance Approving Zone Change No. 2021-02 Changing the Zoning Designation from General Commercial (C-2) to Limited Manufacturing (M-1) for the Collier Commercial Properties Located at APNs 377-190-002, 377-190-003, and 377-190-004
Recommendation:

Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING ZONE CHANGE NO. 2021-02 CHANGING THE ZONING DESIGNATION FROM GENERAL COMMERCIAL (C-2) TO LIMITED MANUFACTURING (M-1) FOR THE COLLIER COMMERCIAL PROPERTIES LOCATED AT APNS 377-190-002, 377-190-003, AND 377-190-004.

Second Reading of Ordinances to Amend Development Agreements for Three Existing Cannabis Businesses to Revise Community Benefit Fees for Hyperwolf, The Nugg Hubb, and Roots 2 Harvest
Recommendation:

Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-07) FOR HYPERWOLF LOCATED AT 571 CRANE STREET, UNITS D, E, AND F (APN: 377-410-034, 377- 410-031, AND 377-410-020);

1. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-10) FOR ROOTS 2 HARVEST LOCATED AT 29370 HUNCO WAY (APN: 377-120-032); and

2. Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-11) FOR THE NUGG HUBB LOCATED AT 570 CENTRAL AVENUE SUITE D-1 (APN: 377-410-037.

3. Second Reading of an Ordinance Amending Chapter 16.83 of the Lake Elsinore Municipal Code to Establish Construction Cost Index Adjustments to the Western Riverside County TUMF Program
Recommendation:

Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING CHAPTER 16.83 OF

THE LAKE ELSINORE MUNICIPAL CODE TO ESTABLISH CONSTRUCTION COST

INDEX ADJUSTMENTS TO THE WESTERN RIVERSIDE COUNTY TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) PROGRAM.

12.3 12.4

12.5 12.6
City Council Agenda March 10, 2026
City of Lake Elsinore Page 5
Resolution of Consideration of Change Proceedings for Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) Recommendation:

Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS),

DECLARING ITS INTENTION TO CONSIDER AN AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.

Annexation No. 29 Into Community Facilities District No. 2015-2 (Maintenance Services) for Tentative Tract Map (TTM) 34249 (Canyon Hills Heights) Recommendation:

Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE

CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 29) AND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN.

Amendment No. 1 to the Agreement with Semper Patrol, Inc. for Security Services at the New City Hall Project (CIP Project No. Z20006) Recommendation:

Approve and authorize the City Manager to execute Amendment No. 1 to the Contractor Services Agreement with Semper Patrol, Inc. for the New City Hall Project (CIP Project No. Z20006) for an additional amount of $100,000, not to exceed a total amount of $219,808.00, for site security services in such final form as approved by the City Attorney.

Professional Services Agreement with Engineering Resources of Southern California, Inc. (ERSC) for the Storm Water Pollution Prevention Plan and Monitoring for the Library Project (CIP Project No. Z20003) Recommendation:

Approve and authorize the City Manager to execute a Professional Services Agreement with Engineering Resources of Southern California, Inc. (ERSC) for the Storm Water Pollution Prevention Plan and Monitoring for the Library Project (CIP Project No. Z20003) in an amount not to exceed $38,865.00 in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency of $3,886.00 for uncertainties and adjustments.

Change Order No. 1 to the Public Works Construction Agreement with Endresen Development, Inc. for the Library Site Retaining Wall for the New City Library Project (CIP Project No. Z20003)
Recommendation:

Approve and authorize the City Manager to execute Change Order No.1 to the Public Works Construction Agreement with Endresen Development, Inc. in an amount not to exceed $199,000.00 for the Library Site Retaining Wall for the New City Library Project (CIP Project No. Z20003).

12.7 12.8

12.9 12.10

12.11 City Council Agenda March 10, 2026
City of Lake Elsinore Page 6
Change Order No. 2 to the Public Works Construction Agreement with Double Play Glass Company for Bid Set “D”, Exterior Window/Storefront & Glazing for the New City Hall Project (CIP Project No. Z20006)
Recommendation:

Approve and authorize the City Manager to execute Change Order No. 2 to the Public Works Construction Agreement with Double Play Glass Company for Bid Set “D”, Exterior Window/Storefront & Glazing, on the New City Hall Project (CIP Project No. Z20006) in an amount not to exceed $580,000.00.

Amended and Restated Agreement with the Lake Elsinore Valley Chamber of Commerce to Refocus to Business Retention & Expansion Services Recommendation:

Approve and authorize the City Manager to execute an Amended and Restated Agreement with the Lake Elsinore Valley Chamber of Commerce for an amount not to exceed $162,000 annually, refocusing contracted services from general economic development activities to a structured Business Retention & Expansion (BRE) program with performance-based deliverables and measurable outcomes, subject to any minor modifications as approved by the City Attorney.

Memorandum of Understanding (MOU) with the Lake Elsinore Downtown Merchant Association
Recommendation:

Approve and authorize the City Manager to execute a Memorandum of Understanding (MOU) with the Lake Elsinore Downtown Merchant Association (DMA) to formalize a collaborative partnership supporting Downtown Main Street initiatives, programming, and economic vitality.

First Amendment to Right of Entry Agreement and License (City Properties Adjacent to Jack’s Bar-B-Q)
Recommendation:

Approve and authorize the City Manager to execute the First Amendment to the Right of Entry Agreement and License with Jack’s Bar-B-Q, LLC updating the terms for the use of City-owned property adjacent to Jack’s Bar-B-Q.

Agreement with Cotter Construction, Inc. for the Installation of New Trash Enclosures
Recommendation:

Approve and authorize the City Manager to execute a Contractor Services Agreement with Cotter Construction, Inc. for the installation of the new trash enclosures at the Neighborhood Center and Lakepoint Park in an amount not to exceed $85,000 in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency of $8,500 for uncertainties and adjustments, and authorize the City Clerk to record the Notice of Completion once the work is complete and the improvements are accepted.

12.12 12.13

12.14 12.15

12.16 City Council Agenda March 10, 2026
City of Lake Elsinore Page 7
Recreation Master Plan Update and Adoption
Recommendation:

Adopt the City of Lake Elsinore Recreation Department Master Plan, incorporating the requested revisions.

SUCCESSOR AGENCY CONSENT CALENDAR
Minutes of the Regular Successor Agency Meeting of February 24, 2026 Recommendation:

Approve the Minutes.

SA Warrant Report Dated February 09, 2026, to February 15, 2026 Recommendation:

Receive and file.

SA Warrant Report Dated February 16, 2026, to February 22, 2026 Recommendation:

Receive and file

PUBLIC HEARINGS
Request to Amend Central Tree Collective, Inc.’s Development Agreement to Revise the Community Benefit Fee
Recommendation:

Find that the proposed project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities); and

1. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-13) FOR CENTRAL TREE COLLECTIVE INC., LOCATED AT 18532 PASADENA STREET (APN: 377- 430-023).

2. Planning Application No. 2024-08 Walmart Gas Station Appeal.docx Recommendation:

No action is required by the City Council as the applicant/appellant withdrew the appeal request on March 5, 2026.

12.17 13.

13.1 13.2

13.3 14.

14.1 14.2
City Council Agenda March 10, 2026
City of Lake Elsinore Page 8

BUSINESS ITEMS
Ordinance Amending Chapter 8.44 of the Lake Elsinore Municipal Code Regarding Bowfishing on Lake Elsinore
Recommendation:

Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING AND RESTATING CHAPTER 8.44 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING BOWFISHING ON LAKE ELSINORE.

Compensation for Members of the City Council
Recommendation:

Introduce by title only and waive further reading AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING LAKE ELSINORE MUNICIPAL CODE (LEMC) SECTION 2.08.020 FOR THE PURPOSE OF INCREASING CITY COUNCIL COMPENSATION TO $1,680 PER MONTH.

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES
(Please read & complete a Request to Address the City Council/Successor Agency form prior to the start of the meeting and turn it in to the City Clerk/Clerk. The Mayor/Chair or City Clerk/Clerk will call on you to speak.)

CITY MANAGER COMMENTS

CITY ATTORNEY COMMENTS

CITY COUNCIL COMMENTS/REPORTS ON MEETINGS ATTENDED

ADJOURNMENT
The Lake Elsinore City Council will adjourn to the next Regular meeting on Tuesday, March 24, 2026 in the Cultural Center located at 183 N. Main Street. Closed Session will commence at 5:00 p.m. or such later time as noticed on the Agenda, and the regular Open Session business meeting will commence at 7:00 p.m.

AFFIDAVIT OF POSTING
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, do hereby affirm that a copy of the foregoing agenda was posted at City Hall at 5:30 p.m. on Thursday, March 5, 2026. ______________________________
Candice Alvarez, MMC, City Clerk

15. 15.1

15.2 16.

17. 18.

19. 20.

21. City Council Agenda March 10, 2026
City of Lake Elsinore Page 9

Page 1 of 1 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Barbara Leibold, City Attorney
Date: March 10, 2026
Subject: CONFERENCE WITH LABOR NEGOTIATOR (Gov’t Code Section 54957.6) City negotiators: City Manager Jason Simpson; Assistant City Manager Shannon Buckley, Special Counsel Nate Kowalski
Employee organization: Lake Elsinore Chapter of Laborer’s International Union of North America, Local 777

Page 1 of 1 ends

Attachments
Attachment 1 – Draft Minutes
City of Lake Elsinore Meeting Date:

City Council Meeting February 24, 2026
Minutes - Draft
Meeting Time:

Closed Session: 6:00 P.M.

Mayor Magee Open Session: 7:00 P.M.

Mayor Pro Tem Sheridan
Council Member Tisdale Cultural Center
Council Member Manos 183 N. Main Street
Council Member Carroll Lake Elsinore, CA 92530

1. CALL TO ORDER
The Regular Meeting of the City Council was called to order at 6:00 p.m.

2. ROLL CALL

Present: 4 - Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee

Absent: 0 - Council Member Manos

3. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
There were no speakers.

4. CLOSED SESSION – 6:00 P.M.

4.1 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Gov’t Code Section 54956.9: One potential case.

Dispute regarding Agreement for Public Works Construction (Camino Del Norte Sewer Extension Improvements Project). The contractor, Aneen Construction Inc., asserts it is entitled to additional compensation for additional bedrock encountered, additional excavation and additional shoring costs. City staff has disputed the claim for additional compensation.

City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 2

4.2 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Gov’t Code Section 54956.9: Two potential cases.

1. Initiation of litigation pursuant to the Eminent Domain Law (Code of Civ. Proc.

Section 1230.010 et. al) for the acquisition of property located in the City of Lake Elsinore (APN 374-173-004; Owner of Record: Berthanna Taylor).

2. Initiation of litigation pursuant to the Eminent Domain Law (Code of Civ. Proc.

Section 1230.010 et. al) for the acquisition of property located in the City of Lake Elsinore (APN 373-151-014; Owner of Record: Leticia Cervantes).

5. RECESS
The City Council recessed into Closed Session at 6:01 p.m.

6. RECONVENE/CALL TO ORDER - 7:00 P.M.

The Regular Meeting of the City Council reconvened and the Regular Meeting of the Successor Agency was called to order at 7:00 p.m.

7. PLEDGE OF ALLEGIANCE
Mayor Magee led the Pledge of Allegiance.

8. ROLL CALL

Present: 4 - Council/Agency Members Tisdale and Carroll; Mayor Pro Tem/Vice Chair Sheridan; and Mayor/Chair Magee

Absent: 1 - Council/Agency Member Manos

9. CLOSED SESSION REPORT
City Attorney Leibold reported that both items were discussed. No reportable action was taken on Item 4.1. The City Council authorized the City Attorney and special counsel to initiate litigation regarding Item 4.2.

10. PRESENTATIONS/CEREMONIALS

10.1 Business in Action Monthly Spotlight – La Unica Barrio Cocina y Tequila Recognize La Unica Barrio Cocina y Tequila as the City of Lake Elsinore’s Business in Action Monthly Spotlight for February 2026.

Mayor Magee presented the Certificate to Maria Manzo and Viviana Vacilio.

11. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE
John Thomas was called to speak.

Greg Langworthy was called to speak.

City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 3
Margaret Williams was called to speak.

12. CITY COUNCIL CONSENT CALENDAR
Moved by Mayor Pro Tem Sheridan, Seconded by Council Member Tisdale to approve the City Council Consent Calendar. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)

12.1 Minutes of the Regular City Council Meeting of February 10, 2026 Approve the Minutes.

This item was approved on the City Council Consent Calendar.

12.2 CC Warrant Report Dated January 26, 2026 to February 01, 2026 Receive and file.

This item was approved on the City Council Consent Calendar.

12.3 CC Warrant Report dated February 02, 2026 to February 08, 2026 Receive and file.

This item was approved on the City Council Consent Calendar.

12.4 Investment Report for January 2026
Receive and file the Investment Report for January 2026.

This item was approved on the City Council Consent Calendar.

12.5 Amended and Restated Legal Services Agreement with Leibold McClendon & Mann, PC
Approve and authorize the City Manager to execute the Amended and Restated Legal Services Agreement with Leibold McClendon & Mann, PC for ongoing legal services to the City.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 4

12.6 On-Call Contractor Services Agreement with Hoffman‘s Painting in Support of the New City Hall Project
Approve and authorize the City Manager to execute an On-Call Contractor Services Agreement with Hoffman’s Painting for metal staircase and miscellaneous metal specialty painting in an amount not to exceed $102,172.56 for a term ending June 30, 2027 in such final form as approved by the City Attorney.

This item was approved on the City Council Consent Calendar.

12.7 Public Works Construction Agreement with US National Corp for the Interior Wall and Ceiling Painting on the New City Hall Project (CIP Project No.

Z20006
Approve and authorize the City Manager to execute a public works agreement with US National Corp in an amount not to exceed $130,380.00 for the interior wall and ceiling painting at the new City Hall in such final form as approved by the City Attorney; authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $13,380.00 for construction uncertainties and adjustments, and authorize the City Clerk to file the notice of completion once the entire scope of work is complete and return withheld retention to the contractor.

This item was approved on the City Council Consent Calendar.

12.8 Grant of Easements to Southern California Edison at Canyon Hills Estates Approve and authorize City Manager to process the easement documents in such final form as approved by the City Attorney and instruct staff to forward the documents to Southern California Edison for recordation.

This item was approved on the City Council Consent Calendar.

12.9 Cooperative Agreement with the Riverside County Flood Control and Water Conservation District and KB Homes for the Lake Elsinore Scenic Crest Drive Storm Drain Stage 1 Improvement
Approve and authorize the City Manager to execute a Cooperative Agreement with the Riverside County Flood Control and Water Conservation District and KB HOMES Cal Management Services, LLC for the Lake Elsinore Scenic Crest Drive Storm Drain, Stage 1 Improvement in such final form as approved by the City Attorney.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 5

12.10 Renewal of a Software License Agreement with Environmental Systems Research Institute (ESRI) for Geographic Information System (GIS) Software Approve and authorize the City Manager to execute an Enterprise Software License Agreement with Environmental Systems Research Institute (ESRI) for Geographic Information System (GIS) on an unlimited basis, including maintenance for the firm, for a term of three years in an amount not to exceed $60,300 annually, totaling $180,900.00 over the three-year term.

This item was approved on the City Council Consent Calendar.

13. SUCCESSOR AGENCY CONSENT CALENDAR
Moved by Agency Member Tisdale, Seconded by Vice Chair Sheridan to approve the Successor Agency Consent Calendar. The motion carried by the following vote:

Yes (4): Agency Members Tisdale and Carroll; Vice Chair Sheridan; and Chair Magee
Absent (1): Agency Member Manos
Carried (4 to 0)

13.1 Minutes of the Regular Successor Agency Meeting of February 10, 2026 Approve the Minutes.

This item was approved on the Successor Agency Consent Calendar.

13.2 SA Warrant Report dated January 26, 2026 to February 01, 2026 Receive and file.

This item was approved on the Successor Agency Consent Calendar.

13.3 SA Warrant Report dated February 02, 2026 to February 08, 2026 Receive and file.

This item was approved on the Successor Agency Consent Calendar.

13.4 First Amendment to Legal Services Agreement with Leibold McClendon & Mann, PC
Approve and authorize the Executive Director to execute the First Amendment to Legal Services Agreement with Leibold McClendon & Mann, PC for ongoing legal services to the Successor Agency.

This item was approved on the Successor Agency Consent Calendar.

City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 6

13.5 SA Investment Report for January 2026
Receive and file the Investment Report for January 2026.

This item was approved on the Successor Agency Consent Calendar.

14. PUBLIC HEARINGS

14.1 Comprehensive User Fee Study
Open the Public Hearing and continue the item to the March 24, 2026 regular City Council meeting.

The Public Hearing was opened at 7:17 p.m.

Assistant City Manager Buckley presented the staff report.

City Clerk Alvarez noted that no written requests were received.

Adam Eventov was called to speak.

Moved by Council Member Tisdale, Seconded by Council Member Carroll to continue the Public Hearing to the March 24, 2026 regular City Council meeting. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)

14.2 Planning Application No. 2021-22 (Collier Commercial Properties) – A Proposal to Develop a 3,000 Square-Foot Office Building and an 8,975 Square-Foot Warehouse located on a 2.64-acre Vacant Site bound by Collier Avenue to the North and Minthorn Street to the South

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ADOPTING A MITIGATED NEGATIVE
DECLARATION (ER-2023-03; SCH NO. 2025100377) FOR PLANNING APPLICATION NO. 2021-22 (GENERAL PLAN AMENDMENT NO. 2021-02, ZONE CHANGE NO. 2021-02, CONDITIONAL USE PERMIT NO. 2022-25, AND INDUSTRIAL DESIGN REVIEW NO. 2021-03);

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ADOPTING FINDINGS THAT PLANNING
APPLICATION NO. 2021-22 (GENERAL PLAN AMENDMENT NO. 2021-02, ZONE CHANGE NO. 2021-02, CONDITIONAL USE PERMIT NO. 2022-25, AND INDUSTRIAL DESIGN REVIEW NO. 2021-03) IS CONSISTENT WITH

THE WESTERN RIVERSIDE COUNTY MULTIPLE SPECIES HABITAT
CONSERVATION PLAN (MSHCP);
City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 7

3. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT
NO. 2021-02 AMENDING THE LAND USE DESIGNATION FROM GENERAL

COMMERCIAL (GC) TO LIMITED INDUSTRIAL (LI) FOR THE COLLIER COMMERCIAL PROPERTIES LOCATED AT APNS 377-190-002, 377-190- 003, AND 377-190-004;

4. Introduce by title only and waive further reading of AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
APPROVING ZONE CHANGE NO. 2021-02 CHANGING THE ZONING
DESIGNATION FROM GENERAL COMMERCIAL (C-2) TO LIMITED
MANUFACTURING (M-1) FOR THE COLLIER COMMERCIAL PROPERTIES LOCATED AT APNS 377-190-002, 377-190-003, AND 377-190-004;

5. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 2022-25 TO ESTABLISH AND OPERATE AN 8,975 SQUARE-FOOT
WAREHOUSE WITH A 3,000 SQUARE-FOOT OFFICE BUILDING AND AN

OUTDOOR STORAGE AREA FOR THE COLLIER COMMERCIAL
PROPERTIES LOCATED AT APNS 377-190- 002, 377-190-003, AND 377- 190-004; and

6. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING INDUSTRIAL DESIGN REVIEW NO. 2021-03 PROVIDING BUILDING DESIGN AND RELATED SITE
IMPROVEMENTS FOR A 3,000 SQUARE-FOOT OFFICE BUILDING AND AN 8,975 SQUARE-FOOT WAREHOUSE FOR THE COLLIER COMMERCIAL
PROPERTIES LOCATED AT APNS 377-190-002, 377-190-003, AND 377- 190-004.

The Public Hearing was opened at 7:20 p.m.

Community Development Director Abraham presented the staff report.

City Clerk Alvarez noted that one written request was received, entered into the record, and distributed to the City Council and the public.

There were no speakers.

The Public Hearing was closed at 7:24 p.m.

Moved by Council Member Carroll, Seconded by Mayor Pro Tem Sheridan to approve Recommendation Nos. 1-3. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)
City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 8
Moved by Mayor Pro Tem Sheridan, Seconded by Council Member Tisdale to approve Recommendation No. 4. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)
Moved by Mayor Pro Tem Sheridan, Seconded by Council Member Tisdale to approve Recommendation No. 5. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)

14.3 Planning Application No. 2024-15 (Dexter Village) – A Senate Bill (SB) 330 Application for a 451-Unit Residential Development with 137 Single-Family Units, 230 Apartment Units, and 84 Townhomes on a 23.05-Acre Property Located Along Dexter Avenue Between Second Street and Third Street

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ADOPTING A MITIGATED NEGATIVE
DECLARATION (ER-2023-02; SCH NO. 2025110457) FOR PLANNING APPLICATION NO. 2024-15 (TENTATIVE TRACT MAP 38512, CONDITIONAL USE PERMIT NO. 2024-08, AND RESIDENTIAL DESIGN REVIEW NO. 2024- 07);

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ADOPTING FINDINGS THAT PLANNING
APPLICATION NO. 2024-15 (TENTATIVE TRACT MAP 38512, CONDITIONAL USE PERMIT NO. 2024-08, AND RESIDENTIAL DESIGN REVIEW NO. 2024- 07) IS CONSISTENT WITH THE WESTERN RIVERSIDE COUNTY MULTIPLE SPECIES HABITAT CONSERVATION PLAN (MSHCP);
City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 9

3. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING TENTATIVE TRACT MAP NO. 38512 TO SUBDIVIDE 23.05 ACRES INTO A 6.6-ACRE PARCEL FOR AN

APARTMENT DEVELOPMENT, TWO LOTS FOR CONDOMINIUM
PURPOSES TOTALING 3.8 ACRES, AND 137 SINGLE-FAMILY

RESIDENTIAL LOTS FOR THE DEXTER VILLAGE PROJECT LOCATED ON

DEXTER AVENUE BETWEEN SECOND STREET AND THIRD STREET
(APN: 377-090-013, 377-090-037, 377-090-039, AND 377-090-040);

4. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 2024-08 TO ALLOW THE DEVELOPMENT OF CONDOMINUMS (84

TOWNHOMES) IN THE COMMERCIAL MIXED USE (CMU) ZONE FOR THE

DEXTER VILLAGE PROJECT LOCATED ON DEXTER AVENUE BETWEEN SECOND STREET AND THIRD STREET (APN: 377-090-013, 377-090-037, 377-090-039, AND 377-090-040); and

5. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, APPROVING RESIDENTIAL DESIGN REVIEW NO. 2024-07 AND DENSITY BONUS AGREEMENTS, PROVIDING BUILDING DESIGNS AND RELATED IMPROVEMENTS FOR 230 APARTMENT UNITS, 137 SINGLE-FAMILY DWELLING UNITS, 84 TOWNHOMES, AND THREE

AMENITY BUILDINGS FOR THE DEXTER VILLAGE PROJECT LOCATED ON DEXTER AVENUE BETWEEN 2ND AND 3RD STREETS (APN: 377-090-013, 377-090-037, 377-090-039, AND 377-090-040).

The Public Hearing was opened at 7:29 p.m.

Principal Planner Huynh presented the staff report.

Nicole Dailey presented on behalf of the applicant.

City Clerk Alvarez noted that two written requests were received, entered into the record, and distributed to the City Council and the public.

Chase Preciado was called to speak.

The Public Hearing was closed at 7:58 p.m.

Moved by Mayor Pro Tem Sheridan, Seconded by Council Member Tisdale to adopt all five Resolutions. The motion carried by the following vote:

14.4 Request to Amend Development Agreements for Three Existing Cannabis Businesses to Revise the Community Benefit Fee

1. Find that the proposed project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities);

2. Introduce by title only and waive further reading of AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025- 07) FOR THE HIGHEST CRAFT, LLC LOCATED AT 571 CRANE STREET (APNs: 377-410-034, 377-410-031, AND 377-410-020;

3. Introduce by title only and waive further reading of AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025- 11) FOR THE NUGG HUBB LOCATED AT 570 CENTRAL AVENUE SUITE D-1 (APN: 377-410-037); and

4. Introduce by title only and waive further reading of AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025- 10) FOR R2H HOLDINGS, LLC LOCATED AT 29370 HUNCO WAY (APN:
377-120-032).

The Public Hearing was opened at 7:59 p.m.

Principal Planner Huynh presented the staff report.

City Clerk Alvarez noted that no written communications were received.

There were no speakers.

The Public Hearing was closed at 8:03 p.m.

Moved by Council Member Tisdale, Seconded by Council Member Carroll to approve Recommendation Nos. 1 and 2. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)
City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 11
Moved by Council Member Carroll, Seconded by Council Member Tisdale to approve Recommendation Nos. 1 and 3. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)

14.5 Participation in the Transportation Uniform Mitigation Fee (TUMF) Program; and Adopting a TUMF Schedule

1. Introduce by title only and waive further reading of AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
AMENDING CHAPTER 16.83 OF THE LAKE ELSINORE MUNICIPAL CODE

TO ESTABLISH CONSTRUCTION COST INDEX ADJUSTMENTS TO THE

WESTERN RIVERSIDE COUNTY TRANSPORTATION UNIFORM
MITIGATION FEE (TUMF) PROGRAM; and

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, AMENDING THE APPLICABLE

TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) APPLICABLE TO ALL DEVELOPMENTS IN CITY OF LAKE ELSINORE.

The Public Hearing was opened at 8:06 p.m.

City Engineer Tagai presented the staff report.

City Clerk Alvarez noted that no written communications were received.

There were no speakers.

The Public Hearing was closed at 8:09 p.m.

City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 12
Moved by Council Member Carroll, Seconded by Council Member Tisdale to introduce the Ordinance in Recommendation No. 1. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)
Moved by Council Member Tisdale, Seconded by Mayor Pro Tem Sheridan to adopt the Resolution in Recommendation No. 2. The motion carried by the following vote:

Yes (4): Council Members Tisdale and Carroll; Mayor Pro Tem Sheridan; and Mayor Magee
Absent (1): Council Member Manos
Carried (4 to 0)

15. BUSINESS ITEMS

16. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES
There were no speakers.

17. CITY MANAGER COMMENTS
City Manager Simpson had no comments.

18. CITY ATTORNEY COMMENTS
City Attorney Leibold had no comments.

19. CITY COUNCIL COMMENTS/REPORTS ON MEETINGS ATTENDED
Council Member Carroll congratulated the Lakeside wrestlers for their participation in the CIF Southern Section Championship and wished them luck in the State Finals; shared his attendance at the Lake Elsinore Women's Club event; and reported on his attendance at the Lake Elsinore Broker Appreciation Breakfast.

Council Member Tisdale had no comments.

City Council Minutes - Draft February 24, 2026
City of Lake Elsinore Page 13
Mayor Pro Tem Sheridan reminded the community that youth ride the Riverside Transit Agency buses free through December 31, 2026; invited the community to attend the Lake Elsinore Historical Society's fourth Ruth Atkins Speaker Series event at 7:00 p.m. on March 25, 2026 in the Cultural Center; shared his attendance at the Mt. San Jacinto College Math & Science (STEM) Building ribbon cutting and dedication event on February 5, 2026; congratulated the students of the month; invited the community to participate in the COPS for Kids Golf Classic on May 1, 2026 at the Glen Ivy Golf Club, the Hit Fore Homes Golf Classic on June 15, 2026 at Bear Creek Golf Club, and the Thunder Cares 3rd Annual Golf Tournament on October 26, 2026 at the Eagle Glen Golf Club.

Mayor Magee reported on his attendance at the Riverside County Transportation Commission meeting on February 11, 2026; spoke on the return of the Lake Elsinore Raceway; and invited the community to participate in the Larry Minor Memorial West Coast Shootout from March 27-29, 2026 at the Lake Elsinore Raceway.

20. ADJOURNMENT
The Lake Elsinore City Council adjourned at 8:21 p.m. to the next Regular meeting of Tuesday, March 10, 2026 in the Cultural Center located at 183 N. Main Street. Closed Session will commence at 5:00 p.m. or such later time as noticed on the Agenda, and the regular Open Session business meeting will commence at 7:00 p.m.

Candice Alvarez, MMC
City Clerk

Page 1 of 1 ends

Discussion
The Warrant Reports lists all general checks issued since the prior Warrant Report.

Attachments
Attachment 1 – City Warrant Summary
Attachment 2 – City Warrant List
FEBRUARY 09, 2026
TO FEBRUARY 15, 2026

CITY OF LAKE ELSINORE CITY WARRANT SUMMARY
FUND NO. FUND DESCRIPTION TOTAL
100 GENERAL 943,122.06 $
103 THE ANCHOR 957.67
110 GAS TAX 8,017.72
130 LIGHTING, LANDSCAPE, MAINTENANCE DIST - CITYWIDE 51,190.87 135 LIGHTING, LANDSCAPE, MAINTENANCE DIST - NO. 1 6,911.27 150 COMMUNITY DEVELOPMENT BLOCK GRANT 3,182.41
155 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM 1,185.21 180 LAUNCH POINTE 50,455.64
300 INSURANCE SERVICE (10,809.73)
305 INFORMATION SYSTEMS SERVICE 60,434.27
310 SUPPORT SERVICE 949.37
315 FLEET SERVICE 18,322.24
320 FACILITIES SERVICE 18,567.10
330 CFD 2015-2S MAINTENANCE SERVICES 1,957.24
331 CFD 2006-1 IA-CC SUMMERLY IMPROVEMENT 835.13
332 CFD 2006-1 IA-B SUMMERLY IMPROVEMENT 835.13
333 CFD 2015-4 TERRACINA IMPROVEMENT 835.13
334 CFD 2015-5 TRIESTE IMPROVEMENT 813.33
336 CFD 2006-1 IA-FF SUMMERLY IMPROVEMENT 813.33
337 CFD 2016-2 CANYON HILLS IMPROVEMENT 789.64
338 CFD 2006-1 IA-JJ SUMMERLY IMPROVEMENT 813.33
339 CFD 2006-1 IA-KK SUMMERLY IMPROVEMENT 835.13
340 CFD 2006-1 IA-EE SUMMERLY IMPROVEMENT 813.33
342 CFD 2007-5S RED KITE SERVICES 596.52
343 CFD 2006-2S VISCAYA SERVICES 596.52
344 CFD 2005-2S ALBERHILL RANCH SERVICES 596.52
345 CFD 2003-2 IA-D CANYON HILLS IMPROVEMENT 1,648.47
347 CFD 2006-1 IA-A SUMMERLY IMPROVEMENT 1,431.65
350 CFD 98-1 SUMMERHILL IMPROVEMENT 835.13
351 CFD 2006-1 IA-II SUMMERLY IMPROVEMENT 835.13
355 RAD 2021-1 CANYON HILLS IMPROVEMENT 2,279.85
357 CFD 2003-2 IA-A CANYON HILLS IMPROVEMENT 1,073.74
358 CFD 2007-4S MAKENNA SERVICES 596.52
359 CFD 2021-1 IA-2 TUSCANY VALLEY & CREST IMPROVEMENT 715.28 361 CFD 2022-2 LAKESHORE IMPROVEMENT 694.44
362 CFD 2006-8S RUNNING DEER ESTATES SERVICES 596.52
363 CFD 2023-1 LAKESIDE IMPROVEMENT 694.44
364 CFD 2023-2 COASTAL MISSION TRAIL IMPROVEMENT 707.30 366 CFD 2005-6 CITY CENTER TOWNHOMES IMPROVEMENT 596.52 367 CFD 2006-1S SUMMERLY SERVICES 596.52
368 CFD 2006-2 VISCAYA IMPROVEMENT 596.52
369 CFD 2004-3 IA-1 ROSETTA CANYON IMPROVEMENT 835.13
Attachment 1 1 of 2
FEBRUARY 09, 2026
TO FEBRUARY 15, 2026

CITY OF LAKE ELSINORE CITY WARRANT SUMMARY
FUND NO. FUND DESCRIPTION TOTAL
370 CFD 2006-1 IA-HH SUMMERLY IMPROVEMENT 835.13
371 CFD 2005-1 SERENITY IMPROVEMENT 835.13
372 CFD 2005-2 IA-A ALBERHILL RANCH IMPROVEMENT 835.13
373 CFD 2005-5S WASSON CANYON SERVICES 596.52
374 CFD 2005-4 LAKEVIEW VILLAS IMPROVEMENT 298.26
375 CFD 2006-4 ROSETTA HILLS IMPROVEMENT 298.26
376 CFD 2006-3 LA STRADA IMPROVEMENT 596.52
377 CFD 2006-6 TESSARA IMPROVEMENT 357.91
378 CFD 2006-8 RUNNING DEER ESTATES IMPROVEMENT 789.64
379 CFD 2022-1 ALBERHILL IMPROVEMENT 694.44
380 CFD 2015-4S TERRACINA SERVICES 607.56
384 CFD 2003-2 IA-B CANYON HILLS IMPROVEMENT 3,676.64
385 CFD 2004-3 IA-2 ROSETTA CANYON IMPROVEMENT 835.13
386 CFD 2007-4 MAKENNA IMPROVEMENT 789.64
387 CFD 2007-5 RED KITE IMPROVEMENT 789.64
390 CFD 2003-2 IA-C CANYON HILLS IMPROVEMENT 2,147.48
394 CFD 2005-5 WASSON CANYON IMPROVEMENT 596.52
395 CFD 2018-1 WASSON CANYON II IMPROVEMENT 564.03
396 CFD 2019-2 NICHOLS RANCH IMPROVEMENT 802.15
397 CFD 2019-1 WESTLAKE IMPROVEMENT 802.15
398 CFD 2021-1 IA-1 TUSCANY VALLEY & CREST IMPROVEMENT 715.28 500 CAPITAL IMPROVEMENT PLAN 1,171,557.73
617 HOUSING 6,415.00
620 COST RECOVERY TRUST DEPOSITS 18,754.98
650 CFD 2003-1S LAW,FIRE, PARAMEDIC SERVICES 835.13
651 CFD 2006-5S PARK, OPEN SPACE, STORM DRAIN SERVICES 596.52 652 CFD 2007-1S LAW,FIRE, PARAMEDIC SERVICES 596.52
653 CFD 2009-1S PARK,OPEN SPACE,STREET LIGHT SERVICES 2,319.37 655 CFD 2015-1S LAW, FIRE, PARAMEDIC SERVICES 948.95
GRAND TOTAL 2,398,836.90 $
Attachment 1 2 of 2
FEBRUARY 09, 2026
TO FEBRUARY 15, 2026

CITY OF LAKE ELSINORE CITY WARRANT LIST
WARRANT NO. VENDOR NAME AMOUNT
APA26001448 AARON CHEVROLET 30.33 $
APA26001449 ALBERT WEBB & ASSOCIATES 10,781.50
APA26001450 AMBER AIR CONDITIONING, INC. 41,350.00
APA26001451 ANIMAL FRIENDS OF THE VALLEY 22,614.71
APA26001452 CARDLOCK FUELS SYSTEM LLC 4,396.13
APA26001453 CED LAGUNA 5,903.98
APA26001454 CENTURY LINK 41.10
APA26001455 CHARTER COMMUNICATIONS 1,016.72
APA26001456 CODE PUBLISHING COMPANY 848.00
APA26001457 CONCENTRA 480.00
APA26001458 CORNWELL TOOLS 691.32
APA26001459 CORODATA RECORDS MANAGEMENT, INC. 174.42
APA26001460 COUNTY OF RIVERSIDE, EXECUTIVE OFFICE 197,414.00 APA26001461 DAVID TURCH & ASSOCIATES 3,500.00
APA26001462 DIRECTV 159.99
APA26001463 DP GLASS CO 234,412.59
APA26001464 EGP CONSULTING, INC. 3,183.07
APA26001465 ENVIROMINE, INC. 1,387.50
APA26001466 FCS INTERNATIONAL, INC 12,628.00
APA26001467 FRANCIS, MICHAEL J., MAI 3,450.00
APA26001468 FRONTIER CALIFORNIA - INTERNET 961.63
APA26001469 FRONTIER CALIFORNIA, INC. 478.17
APA26001470 FRONTIER CALIFORNIA, INC. 76.99
APA26001471 GLADWELL GOVERNMENTAL SERVICES, INC 565.00
APA26001472 GREAT AMERICA FINANCIAL SERVICES 949.37
APA26001473 GRIFFITH COMPANY 485,000.00
APA26001474 HANCOCK, LORENA 2,370.00
APA26001475 HEMET FENCE CORP 51,100.00
APA26001476 JONES, HANNAH 108.00
APA26001478 LAND IQ, LLC 4,032.50
APA26001479 LEAGUE OF CALIFORNIA CITIES 24,962.00
APA26001480 LIUNA LOCAL 777 744.00
APA26001481 MONET CONSTRUCTION, INC 210,493.40
APA26001482 MORTON PEST CONTROL INC 810.00
APA26001483 MULLIN 360 REAL ESTATE SERVICES LLC 81,600.00 APA26001484 NETFILE, INC. 5,440.00
APA26001485 NPG, INC. 71,780.00
APA26001486 O'REILLY AUTO STORES INC/FIRST CALL 2,937.30 APA26001487 PACIFIC CLAY PRODUCTS, INC. 41,847.19
APA26001488 RIVERSIDE TRANSIT AGENCY 2,267.50
APA26001489 ROBERT BERNEY CONSTRUCTION 193.00
Attachment 2 1 OF 3
FEBRUARY 09, 2026
TO FEBRUARY 15, 2026

CITY OF LAKE ELSINORE CITY WARRANT LIST
WARRANT NO. VENDOR NAME AMOUNT
APA26001490 RSG, INC. 3,415.00
APA26001491 SCOTT FAZEKAS & ASSOCIATES, INC. 23,563.53
APA26001492 SHAPIRO PROPERTY SERVICE, INC 1,320.00
APA26001493 SOUTHERN CALIFORNIA EDISON CO. 41,883.05
APA26001494 STAUFFER LAWN EQUIPMENT 50.80
APA26001495 STC TRAFFIC, INC. 1,090.00
APA26001496 TRI-STAR ELECTRIC 1,200.00
APA26001497 UNIFIRST CORP 743.35
APA26001498 VALLEY-WIDE ELITE GYMNASTICS 1,841.25
APA26001499 VERIZON WIRELESS (#1) 8,728.49
APA26001500 VERIZON WIRELESS (#2) 3,348.33
APA26001501 VISTA COMMUNITY CLINIC 3,182.41
APA26001502 VULCAN MATERIALS COMPANY 757.27
APA26001503 WILLSCOT MOBILE MINI 1,707.14
10957 AK SECURITY ALARM LLC 7,825.33
10958 AMAZON BUSINESS 5,549.35
10959 AMERICAN MATERIAL COMPANY 1,349.02
10960 AREA 63 PRODUCTIONS 8,618.02
10961 CIVICA LAW GROUP, APC 13,457.10
10962 COTTER CONSTRUCTION, INC. 21,950.00
10964 DERRIGO STUDIES, INC 7,900.00
10965 GMS ELEVATOR SERVICES, INC. 390.00
10966 HEFINGTON MARTIAL ARTS 243.75
10967 JD PROMOTIONS 1,974.49
10968 LYNN MERRILL AND ASSOCIATES, INC. 588.69
10969 MICHAEL BAKER INTERNATIONAL, INC. 17,369.75
10970 MURPHY & EVERTZ LLP 2,581.00
10971 MURPHY & EVERTZ LLP 2,581.00
10972 PLANETBIDS, LLC 18,611.08
10973 RENTERIA, YARABITH BUENFIL 1,048.50
10974 SOUTHERN CALIFORNIA GAS CO. 39.03
10975 SOUTHERN CALIFORNIA GAS CO. 82.60
10976 SOUTHERN CALIFORNIA GAS CO. 2,034.38
10977 SOUTHERN CALIFORNIA GAS CO. 153.68
10978 SOUTHERN CALIFORNIA GAS CO. 128.47
10979 SOUTHERN CALIFORNIA GAS CO. 18.39
10980 SOUTHERN CALIFORNIA GAS CO. 162.87
10981 SOUTHERN CALIFORNIA GAS CO. 68.83
10982 SOUTHERN CALIFORNIA GAS CO. 190.71
10983 SOUTHERN CALIFORNIA GAS CO. 144.84
10984 SOUTHERN CALIFORNIA GAS CO. 277.51
10985 SOUTHWEST ICE MACHINES 461.63
Attachment 2 2 OF 3
FEBRUARY 09, 2026
TO FEBRUARY 15, 2026

CITY OF LAKE ELSINORE CITY WARRANT LIST
WARRANT NO. VENDOR NAME AMOUNT
10986 SOUTHWEST ICE MACHINES 848.25
10987 SPICER CONSULTING GROUP 53,231.78
10991 STAPLES ADVANTAGE 36.31
10992 WEST COAST ARBORISTS, INC. 9,259.00
10993 WEST COAST SERVICES 1,325.00
10994 YUNEX, LLC 9,662.00
144020 LAKE ELSINORE VALLEY CHAMBER OF COMMERCE 13,500.00 144021 CHAVEZ, DAVID 300.00
144022 DEPARTMENT OF MOTOR VEHICLES 10.00
144023 ESTES, RYAN 150.00
144024 GAMBOA, RICARDO 300.00
144025 GONZALES, HECTOR 300.00
144026 RUBIO, PABLO 450.00
144027 SELVAGGIO, JOSEPH 150.00
DFT260562 PAYCHEX OF NEW YORK, LLC 2,257.96
DFT260563 RIVERSIDE COUNTY SHERIFF'S OFFICE 926.50
DFT260564 STATE DISBURSEMENT UNIT 134.30
DFT260565 STATE DISBURSEMENT UNIT 245.53
DFT260566 MISSION SQUARE RETIREMENT 450.77
DFT260567 MISSION SQUARE RETIREMENT 10,183.55
DFT260568 INTERNAL REVENUE SERVICE 198.50
DFT260569 NATIONWIDE TRUST COMPANY, FSB 2,093.20
DFT260570 CONCENTRA (3,393.00)
DFT260574 CALPERS 76,942.08
DFT260575 INTERNAL REVENUE SERVICE 112,255.33
DFT260576 FRANCHISE TAX BOARD 23,681.77
DFT260577 US BANKCORP SERVICE CENTER 984.91
DFT260578 STEWART TITLE OF CALIFORNIA 3,000.00
DFT260581 LOWE'S 7,772.66
DFT260582 TASC 12,086.66
DFT260584 CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE 96.63 DFT260592 PAYCHEX OF NEW YORK, LLC 7,625.56
PR02122026 NET PAYROLL 309,961.60
GRAND TOTAL 2,398,836.90 $
Attachment 2 3 OF 3

Page 1 of 1 ends

Discussion
The Warrant Report lists all general checks issued since the prior Warrant Report Attachments
Attachment 1 – City Warrant Summary
Attachment 2 – City Warrant List
FEBRUARY 16, 2026
TO FEBRUARY 22, 2026

CITY OF LAKE ELSINORE CITY WARRANT SUMMARY
FUND NO. FUND DESCRIPTION TOTAL
100 GENERAL 145,772.22 $
103 THE ANCHOR 20,751.47
110 GAS TAX 69,422.71
130 LIGHTING, LANDSCAPE, MAINTENANCE DIST - CITYWIDE 44,439.45 135 LIGHTING, LANDSCAPE, MAINTENANCE DIST - NO. 1 4,990.02 155 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM 155.00 180 LAUNCH POINTE 55,350.41
305 INFORMATION SYSTEMS SERVICE 2,281.00
310 SUPPORT SERVICE 1,052.29
315 FLEET SERVICE 4,237.06
320 FACILITIES SERVICE 2,901.91
330 CFD 2015-2S MAINTENANCE SERVICES 324.69
331 CFD 2006-1 IA-CC SUMMERLY IMPROVEMENT 24,108.23
332 CFD 2006-1 IA-B SUMMERLY IMPROVEMENT 50,100.00
334 CFD 2015-5 TRIESTE IMPROVEMENT 35,200.00
335 CFD 2003-2 IA-E CANYON HILLS IMPROVEMENT 31,455.72
336 CFD 2006-1 IA-FF SUMMERLY IMPROVEMENT 65,200.00
337 CFD 2016-2 CANYON HILLS IMPROVEMENT 352,927.98
338 CFD 2006-1 IA-JJ SUMMERLY IMPROVEMENT 80,268.96
339 CFD 2006-1 IA-KK SUMMERLY IMPROVEMENT 74,033.76
340 CFD 2006-1 IA-EE SUMMERLY IMPROVEMENT 85,430.78
345 CFD 2003-2 IA-D CANYON HILLS IMPROVEMENT 319,311.95 347 CFD 2006-1 IA-A SUMMERLY IMPROVEMENT 49,885.11
350 CFD 98-1 SUMMERHILL IMPROVEMENT 78,075.13
351 CFD 2006-1 IA-II SUMMERLY IMPROVEMENT 109,007.01
355 RAD 2021-1 CANYON HILLS IMPROVEMENT 12,855.46
357 CFD 2003-2 IA-A CANYON HILLS IMPROVEMENT 226,821.53 366 CFD 2005-6 CITY CENTER TOWNHOMES IMPROVEMENT 57,452.09 368 CFD 2006-2 VISCAYA IMPROVEMENT 120,702.08
369 CFD 2004-3 IA-1 ROSETTA CANYON IMPROVEMENT 402,867.37 370 CFD 2006-1 IA-HH SUMMERLY IMPROVEMENT 92,471.69
371 CFD 2005-1 SERENITY IMPROVEMENT 160,584.73
372 CFD 2005-2 IA-A ALBERHILL RANCH IMPROVEMENT 508,811.11 375 CFD 2006-4 ROSETTA HILLS IMPROVEMENT 94,541.56
377 CFD 2006-6 TESSARA IMPROVEMENT 60,439.57
378 CFD 2006-8 RUNNING DEER ESTATES IMPROVEMENT 68,017.17 379 CFD 2022-1 ALBERHILL IMPROVEMENT 96,569.44
384 CFD 2003-2 IA-B CANYON HILLS IMPROVEMENT 405,029.18 385 CFD 2004-3 IA-2 ROSETTA CANYON IMPROVEMENT 728,429.16 386 CFD 2007-4 MAKENNA IMPROVEMENT 45,700.00
387 CFD 2007-5 RED KITE IMPROVEMENT 19,709.61
390 CFD 2003-2 IA-C CANYON HILLS IMPROVEMENT 236,639.93 Attachment 1 1 of 2
FEBRUARY 16, 2026
TO FEBRUARY 22, 2026

CITY OF LAKE ELSINORE CITY WARRANT SUMMARY
FUND NO. FUND DESCRIPTION TOTAL
394 CFD 2005-5 WASSON CANYON IMPROVEMENT 32,991.17
396 CFD 2019-2 NICHOLS RANCH IMPROVEMENT 169,435.88
397 CFD 2019-1 WESTLAKE IMPROVEMENT 91,090.24
500 CAPITAL IMPROVEMENT PLAN 698,563.06
GRAND TOTAL 6,036,404.89 $
Attachment 1 2 of 2
FEBRUARY 16, 2026
TO FEBRUARY 22, 2026

CITY OF LAKE ELSINORE CITY WARRANT LIST
WARRANT NO. VENDOR NAME AMOUNT
APA26001504 AMERICAN FORENSIC NURSES, INC. 1,461.00 $
APA26001505 ATKINSON, ANDELSON, LOYA, RUUD & ROMO 15,654.76 APA26001506 AUTOZONE PARTS, INC. 1,468.13
APA26001507 AZTECA CLEANING SERVICES LLC 8,742.08
APA26001508 BEGINNERS EDGE SPORTS TRAINING, LLC 1,555.50 APA26001509 BIO-TOX LABORATORIES 1,966.00
APA26001510 BMW MOTORCYCLES OF TEMECULA - SO CAL 319.96 APA26001511 CALIFORNIA, DEPARTMENT OF JUSTICE 280.00
APA26001512 CALIFORNIA, DEPARTMENT OF JUSTICE 32.00
APA26001513 CALIFORNIA, DEPARTMENT OF JUSTICE 420.00
APA26001514 CARDLOCK FUELS SYSTEM LLC 435.67
APA26001515 CED LAGUNA 6,028.55
APA26001516 CITY NET 12,578.62
APA26001517 COUNTY OF RIVERSIDE DEPT. OF ENVIRONMENTAL HEALTH 170.00 APA26001518 COUNTY OF RIVERSIDE DEPT. OF ENVIRONMENTAL HEALTH 170.00 APA26001519 DISCOUNT HAULING & CLEANUP SERVICE 3,520.00 APA26001520 FRONTIER CALIFORNIA - INTERNET 110.48
APA26001521 FRONTIER CALIFORNIA, INC. 76.99
APA26001522 GREAT AMERICA FINANCIAL SERVICES 1,052.29
APA26001523 HEMET FENCE CORP 6,900.00
APA26001524 KIMBALL MIDWEST 1,728.29
APA26001526 MARIPOSA ECO CONSULTING INC 3,220.00
APA26001527 MORTON PEST CONTROL INC 6,021.00
APA26001528 NPG, INC. 65,950.00
APA26001529 PECHANGA BAND OF INDIANS 5,076.55
APA26001530 PRESS-ENTERPRISE, THE 324.69
APA26001531 PROACTIVE ENGINEERING CONSULTANTS, INC. 1,350.00 APA26001532 RAPID FIRE SAFETY & SECURITY LLC 515.00
APA26001533 RELIABLE RENTALS, INC 2,840.00
APA26001534 RIVERSIDE COUNTY TRANSPORTATION & LAND MANAGEMENT 48,239.28 APA26001535 RP LANDSCAPE & IRRIGATION 78,791.61
APA26001536 SAFETY-KLEEN SYSTEMS, INC. 270.17
APA26001537 SOUTHERN CALIFORNIA EDISON CO. 359.32
APA26001538 STAUFFER LAWN EQUIPMENT 239.21
APA26001539 STEWART TITLE OF CALIFORNIA 800.00
APA26001540 TARGET SPECIALTY PRODUCTS 22,105.83
APA26001541 TEMECULA ELECTRICAL SUPPLY 4,615.77
APA26001542 UNIFIRST CORP 565.54
APA26001543 VULCAN MATERIALS COMPANY 405.34
APA26001544 WAXIE SANITARY SUPPLY 395.95
APA26001545 YESCO SIGNS LLC 158,473.52
Attachment 2 1 OF 2
FEBRUARY 16, 2026
TO FEBRUARY 22, 2026

CITY OF LAKE ELSINORE CITY WARRANT LIST
WARRANT NO. VENDOR NAME AMOUNT
10995 AK SECURITY ALARM LLC 11,190.33
10996 AMAZON BUSINESS 6,160.74
10997 AMERICAN MATERIAL COMPANY 549.60
10998 BMW MOTORCYCLES OF RIVERSIDE 1,696.29
10999 BMW MOTORCYCLES OF RIVERSIDE 294.50
11000 COTTER CONSTRUCTION, INC. 5,500.00
11001 ENDRESEN DEVELOPMENT, INC. 65,000.00
11002 ENDRESEN DEVELOPMENT, INC. 19,877.84
11003 ENDRESEN DEVELOPMENT, INC. 19,877.84
11004 ENDRESEN DEVELOPMENT, INC. 199,000.00
11005 ENGINEERING RESOURCES OF SO CA 9,206.34
11006 KC CUSTOM HARDWOODS, LLC 49,992.33
11007 PALMS PARK LLC 4,000.00
11008 PROSTAFF, LLC 24,937.50
11010 PURSUIT ELECTRIC, INC. 72,800.00
11011 RIGHTWAY SITE SERVICES, INC. 4,202.14
11012 SECURITAS SECURITY SERVICES USA, INC. 3,467.20
11013 SECURITAS SECURITY SERVICES USA, INC. 3,623.04
11014 SERVICE FIRST 5,401.22
11015 SO CAL SANDBAGS,INC. 538.88
11016 SOUTHWEST ICE MACHINES 363.19
11017 SOUTHWEST ICE MACHINES 258.79
11018 SOUTHWEST ICE MACHINES 533.75
11019 SOUTHWEST ICE MACHINES 366.10
11020 SOUTHWEST ICE MACHINES 557.50
11021 STAPLES ADVANTAGE 418.28
11022 TC SPORTS MANAGEMENT, LLC 800.00
11023 WEST COAST ARBORISTS, INC. 29,279.00
11024 YUNEX, LLC 31,353.10
144028 EVMWD 13,053.27
DFT260572 CHARTER COMMUNICATIONS 713.42
GRAND TOTAL 1,050,241.29 $
Attachment 2 2 OF 2

Page 1 of 1 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Candice Alvarez, MMC, City Clerk
Date: March 10, 2026
Subject: Second Reading of an Ordinance Approving Zone Change No. 2021-02 Changing the Zoning Designation from General Commercial (C-2) to Limited Manufacturing (M-1) for the Collier Commercial Properties Located at APNs 377-190-002, 377-190-003, and 377-190-004
Recommendation
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING ZONE CHANGE NO. 2021-02 CHANGING THE ZONING DESIGNATION FROM GENERAL COMMERCIAL (C-2) TO LIMITED MANUFACTURING (M-1) FOR THE COLLIER COMMERCIAL PROPERTIES LOCATED AT APNS 377-190-002, 377-190-003, AND 377-190-004.

Background
At its Regular meeting on February 24, 2026, the City Council introduced by title only and waived further reading of the Ordinance.

Attachments
Attachment 1 – Ordinance
ORDINANCE NO. 2026-1524

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING ZONE CHANGE NO. 2021-02 CHANGING THE ZONING DESIGNATION FROM GENERAL COMMERCIAL (C-2) TO LIMITED MANUFACTURING (M-1) FOR THE COLLIER COMMERCIAL PROPERTIES LOCATED AT APNS 377-190-002, 377-190-003, AND 377-190-004 Whereas, Troy Chislock, has filed an application with the City of Lake Elsinore (City) requesting approval of Planning Application No. 2021-22 to develop the 2.64-acre vacant site with a 3,000 square-foot office building and an 8,975 square-foot warehouse building totaling 11,975 square-feet and related site improvements. The project’s requests include a General Plan Amendment (GPA) No. 2021-02) to amend the project site’s land use designation from General Commercial (GC) to Limited Industrial (LI), Zone Change (ZC) No. 2021-02 to change the project site’s zoning designation from General Commercial (C-2) to Limited Manufacturing (M-1), Conditional Use Permit (CUP) No. 2022-25 to establish and operate an outdoor storage area in conjunction with the proposed office/warehouse facility, and Industrial Design Review (IDR) No. 2021-03 to construct an office/warehouse facility with an 8,975 square-foot warehouse and a 3,000 square-foot office building. The project is located on West Minthorn Avenue at Assessor’s Parcel Numbers (APNs) 377-190-002, 377-190-003, and 377-190-004; Whereas, Zone Change (ZC) No. 2021-02 proposes to change the project site’s current zoning designation from General Commercial (C-2) to Limited Manufacturing (M-1); Whereas, pursuant to Lake Elsinore Municipal Code (LEMC) Section 17.415.040 (Zoning Amendments), the Planning Commission (Commission) has been delegated with the responsibility of making recommendations to the City Council (Council) pertaining to zone changes,
Whereas, on December 16, 2025 and January 20, 2026, at a duly noticed Public Hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve ZC No. 2021-02; and Whereas, on February 24, 2026, at a duly noticed Public Hearing, the Council has considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

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

Section 1: The foregoing recitals are true and correct and are hereby incorporated into these findings by this reference.

Section 2: The Council has reviewed and analyzed proposed ZC No. 2021-02, pursuant to the California Planning and Zoning Laws (Cal. Gov. Code Sec 65000 et. seq.), the Lake Elsinore General Plan (GP), and the LEMC and finds that ZC No. 2021-02 is consistent with the requirements of California Planning and Zoning Law and with the goals and policies of the GP and the LEMC.

Section 3: That in accordance with LEMC Section 17.415.040.F. Findings, the Council makes the following findings regarding findings regarding ZC No. 2021-02:

Ord. No. 2026-1524

Page 2 of 3 ends

1. The proposed amendment will not be (a) detrimental to the health, safety, comfort, or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, (b) injurious to property or improvements in the neighborhood or within the City
a. The proposed zone change from commercial to industrial would be consistent with the existing surrounding developments, which include other light industrial-related uses. The project site is not adjacent or in close proximity to residential uses. Therefore, the zone change is not anticipated to create adverse impacts for persons residing or working within the neighborhood.
b. The application to change the zoning designation would not be injurious to the property or improvements in the neighborhood because the land use designation change from commercial to industrial would be more in line with the existing industrial developments adjacent to the site and within the vicinity. Furthermore, the proposed industrial project would contribute to the industrial vitality of the corridor along Collier Avenue and West Minthorn Street as well as the City in general.

2. The proposed amendment will be consistent with the latest General Plan.

ZC No. 2021-02 proposes to change the project site’s current zoning designation from General Commercial (C-2) to Limited Manufacturing (M-1). The project would also concurrently amend the site’s current General Plan land use designation to an industrial designation to ensure that the zone change would be consistent with the General Plan. Therefore, upon approval of General Plan Amendment No. 2021-02 and the proposed zone change, the zoning would be consistent with the latest General Plan.

Section 4: Based upon the evidence presented, both written and testimonial, and the above findings, the Council hereby approves of Zone Change No. 2021-02.

Section 5: Severability. If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end, each phrase, section, sentence, or word is declared to be severable.

Section 6: Effective Date. This Ordinance shall become effective at 12.01 a.m. on the thirty-first (31st) day after the date of adoption
Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis on the same to be published according to law.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 10th day of March 2026.

Robert E. Magee
Mayor
Ord. No. 2026-1524

Page 3 of 3 ends

Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2026-1524 was introduced by the City Council of the City of Lake Elsinore, California, at the Regular meeting of February 24, 2026 and adopted at the Regular meeting of March 10, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Candice Alvarez, MMC, City Clerk
Date: March 10, 2026
Subject: Second Reading of Ordinances to Amend Development Agreements for Three Existing Cannabis Businesses to Revise Community Benefit Fees for Hyperwolf, The Nugg Hubb, and Roots 2 Harvest
Recommendation
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-07) FOR HYPERWOLF LOCATED AT 571 CRANE STREET, UNITS D, E, AND F (APN: 377-410-034, 377-410-031, AND 377-410-020); Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-10) FOR ROOTS 2 HARVEST LOCATED AT 29370 HUNCO WAY (APN: 377-120-032); and
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-11) FOR THE NUGG HUBB LOCATED AT 570 CENTRAL AVENUE SUITE D-1 (APN: 377-410-037.Click or tap here to enter text.

DA Amendment Ordinances

Page 2 of 2 ends

Background
At its Regular meeting on February 24, 2026, the City Council introduced by title only and waived further reading of the Ordinance.

Attachments
Attachment 1 – DA-2025-07 Ordinance
Exhibit A – DA Amendment with Hyperwolf
Attachment 2 – DA-2025-10 Ordinance
Exhibit A – DA Amendment with Roots 2 Harvest
Attachment 3 – DA-2025-11 Ordinance
Exhibit A – DA Amendment with The Nugg Hubb
ORDINANCE NO. 2026-1525

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-07) FOR HYPERWOLF LOCATED AT 571 CRANE STREET, UNITS D, E, AND F (APN: 377-410-034, 377-410-031, AND 377-410-020) Whereas, Jacob Telo, Hyperwolf, has filed an application with the City of Lake Elsinore (City) requesting approval of Development Agreement (DA) No. 2025-07 (Attachment 2) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 571 Crane Street Units D, E, and F (APNs: 377-410-034, 377-410-031, and 377-410-020); Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within an MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 (Development Agreements) of the Lake Elsinore Municipal Code (LEMC), the Planning Commission (Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement;
Whereas, on January 20, 2026, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-07; and
Whereas, on February 24, 2026, at a duly noticed Public Hearing, the Council considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That, in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The Project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

2. The Project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines as the Project is wholly located within an existing Ord. No. 2026-1525

Page 2 of 4 ends

building and does not include any earth disturbing activities therefore Sections 6.1.2 or

6.3.1 of the MSHCP are not applicable.

3. The Project is consistent with the Protection of Narrow Endemic Plant Species Guidelines and the Additional Survey Needs and Procedures because the project is not located within any Narrow Endemic Plant Species Survey Areas or Critical Species Survey Areas.

4. The Project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The Project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 2: The Council hereby finds and determines that the Project is categorically exempt from California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section 15301 (Class 1 – Existing Facilities), because the proposed project is an existing cannabis business that is operating within a fully developed site and building. The proposed amendment to the business’ development agreement would not result in new construction, additional square footage, or expansion of the existing use.

Section 3: That in accordance with California Planning and Zoning Law and the Section

19.12.080.B. of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-07:

1. It is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan.

The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Business Professional (BP). The proposed project is consistent the BP land use designation and with the objectives, policies, general land uses and programs specified in the General Plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

The proposed development agreement amendment will continue to facilitate the establishment of the cannabis facility within an existing industrial building. The cannabis facility has been in operation which includes manufacturing and storage uses consistent with other similar businesses within the Business Professional (BP) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning designation.

3. It is in conformity with public convenience, general welfare and good land use practices.

The existing cannabis facility has been operating in a manner that has not resulted in negative impacts to the public and its general welfare. The proposed development agreement amendment will ensure the cannabis facility continues to have beneficial impacts to the surrounding community. Furthermore, the project has been reviewed and Ord. No. 2026-1525

Page 3 of 4 ends

conditioned by all applicable City departments to reduce the potential for any adverse effects.

4. It will not be detrimental to the health, safety and general welfare.

The proposed development agreement amendment will not be detrimental to the health, safety, and general welfare of the community because the existing cannabis facility has been operation without negative impacts or concerns. The development agreement amendment will ensure the cannabis facility continues to operate in a safe manner.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects to the health, safety, and general welfare.

5. It will not adversely affect the orderly development of property or the preservation of property values;
The cannabis facility is an existing business that has been operation without land use issues and has not caused adverse impacts for existing businesses and future developments. The proposed development agreement amendment will ensure the cannabis facility continues to operate as such.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

The proposed development agreement amendment includes all mandatory provisions required by Government Code § 65865.2 and does not include any provisions that are not authorized by the Development Agreement Act.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-07 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this ordinance.

Section 5: Severability. If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end each phrase, section, sentence, or word is declared to be severable.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law Ord. No. 2026-1525

Page 4 of 4 ends

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 10th day of March 2026.

Robert E. Magee
Mayor
Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2026-1525 was introduced by the City Council of the City of Lake Elsinore, California, at the Regular meeting of February 24, 2026 and adopted at the Regular meeting of March 10, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Clerk
(Space Above Line For Recorder’s Use Only)
(Exempt from Recording Fees Per Gov. Code § 27383)
_______________ AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE

CITY OF LAKE ELSINORE
AND
___________________________________
Approved ___________ __, 2026
Ordinance No. 2026-_____
-1-
______________ AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND ________________________.

This _________ Amendment to Development Agreement (“Second Amendment”), dated for identification only as of May 20, 2025, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and _______________, a California _______________ (“Developer”). This Amendment shall take effect on the “Amendment Effective Date,” as this term is hereafter defined. City and Developer may each be referred to herein individually as a “Party” or collectively as the “Parties.”

RECITALS
A. On ___________, ______, pursuant to Ordinance No. 20__-_____, the City approved and adopted that certain “Development Agreement by and between the City of Lake Elsinore and _____________________,” which Development Agreement was recorded on __________ in the Official Records of Riverside County, California as Instrument No. 20__- _____ (the “Development Agreement”).

B. [If applicable] On ___________, ______, pursuant to Ordinance No. 20__-_____, the City approved and adopted that certain, the City approved and adopted that certain “First Amendment To Development Agreement by and between the City of Lake Elsinore and _________________.,” which Development Agreement was recorded on _________ in the Official Records of Riverside County, California as Instrument No. 20__-_____ (the “First Amendment”).

C. In connection with the Developer Agreement [and the First Amendment], Developer acquired an equitable interest in that certain real property located at _______________________ in the City of Lake Elsinore, County of Riverside, State of California, Assessor Parcel Number ______________, which is within a manufacturing zoning district (the “Site”).

D. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

E. The total Cannabis Retail Business Floor Area (as defined below) is [ ] sq. ft. The total Non-Retail Cannabis Business Floor Area (as defined below) is [ ] sq. ft. The Floor Plan depicting the total floor area is attached hereto as Exhibit C.

F. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, [insert name].

G. The Property Owner have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

H. Developer uses the Site for a Cannabis Business in accordance with California Cannabis Laws and the LEMC, as each may be amended from time to time (the “Project”). -2-
I. On __________ __, 2025, the City Council approved Ordinance No. 2025-____ amending the Lake Elsinore Municipal Code (“LEMC”) Chapter 17.156 to: (i) streamline the regulation of cannabis-related business; (ii) to limit the number of cannabis-related business in the City.

J. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code section 65864 et seq. (the “Development Agreement Statute”), which authorizes the City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property that is subject to a development agreement application.

K. Consistent with the requirements of the Development Agreement Statute, the City adopted LEMC, Chapter 19.12 (“Development Agreement Ordinance”), authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City along with amendments thereto. LEMC, Section 19.12.020, provides for amendments to a development agreement “is the same as the procedure for entering into an agreement in the first instance.” LEMC, Section 19.12.010 requires submittal of an application along with information and supporting data as requested by the Director of Community Development for consideration of any development agreement. Developer has satisfied this requirement.

L. On _________ __, 2025, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider the application for this __________ Amendment and recommended to the City Council approval of this Amendment.

M. On ___________ __, 2025, the City Council held a duly noticed public hearing to consider this ______ Amendment and found and determined that this ___________ Amendment:
(a) is consistent with the objectives, policies, general land uses, and programs specified in the City’s General Plan and any applicable specific plan; (b) is compatible with the uses authorized in, and the regulations prescribed for the Site and the surrounding area and will not adversely affect the orderly development of the Site or the preservation of property values; (c) is in conformity with public convenience, general welfare, and good land use practices; (d) will have an overall positive effect on the health, safety and welfare of the residents of and visitors to the City; and (e) constitutes a lawful, present exercise of the City’s police power and authority under the Development Agreement Statute and Development Agreement Ordinance.

N. Based on the findings set forth in Recital __herein, the City Council entered into this Amendment pursuant to and in compliance with the requirements of the Development Agreement Statute and the Development Agreement Ordinance; and did, therefore, in approving this Amendment introduce for first reading Ordinance No. 2025-___ (the “Enabling Ordinance”).

On __________ __, 2025, the City Council conducted the second reading of the Enabling Ordinance, thereby approving this Amendment to become effective thirty (30) days after the adoption thereof.
-3-
NOW, THEREFORE, in consideration of the mutual terms, obligations, promises, covenants, and conditions contained herein and for other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties, and each of them, agree as follows:

SECTION 1. EXHIBITS
The Development Agreement has attached to it four exhibits designated alphabetically as Exhibit A through Exhibit D. Exhibits A through D of the Development Agreement shall remain in full force and effect except to the extent that the provisions of this Section 1 of the Second Amendment modify those Exhibits.

The following documents are referred to in this _______Amendment, attached hereto and incorporated herein by this reference:

Exhibit A Legal Description
Exhibit B Site Plan1
Exhibit C Floor Plan1
Exhibit D Property Owner’s Consent
1 The Approved Site Plan and Floor Plan exhibits are on file as a public record and available for review at the City of Lake Elsinore’s City Clerk’s Office located at 130 South Main Street, Lake Elsinore, CA 92530.

SECTION 2. REVISIONS TO DEFINITIONS
The words and phrases used in this ______Amendment as defined terms shall have the meaning set forth in Section 2 of the Development Agreement, except as added and/or modified below, which defined terms shall be applicable to both the Development Agreement and the ______Amendment.
“Amendment Effective Date” means the later of: (i) the latest date of execution shown on the signature page hereto; or (ii) the Effective Date of the Enabling Ordinance. The Amendment Effective Date does not amend the Effective Date as defined in the Development Agreement, nor does the Amendment Effective Date modify or change the “Term” or the “Term Commencement Date.”
“Cannabis Business License” or “Cannabis Business Permit” means the City license established and authorized by LEMC, Section 17.156.080, authorizing permissible Cannabis Business activity, which can only be issued upon City approval of a conditional use permit, development agreement, and Additional City Approvals for each proposed Cannabis Business activity project.
“Conditional Use Permit” means Conditional Use Permit No. ____-__ issued by the City to Developer pertaining to Developer’s original development of the Project and any subsequent amendments thereto. In the event that an amendment to the Conditional Use Permit -4-
pertaining to the Suite G Site has not been issued to the Developer as of the Amendment Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of any amendment to the Conditional Use Permit. “Development Regulations” means the following regulations as they are in effect as of the Effective Date and to the extent they govern or regulate the development of the Site, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Effective Date that impairs or restricts Developer’s rights set forth in this Agreement, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Developer in writing: the City’s General Plan; any existing Specific Plan that include the Site, and, to the extent not expressly superseded by this Agreement, all other land use and subdivision regulations governing the permitted uses, density and intensity of use for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Site during the Term of this Agreement that are set forth in Title 16 of the LEMC (Subdivisions), Title 17 of the LEMC (Zoning), except that Chapter 17.156 of Title 17 shall be as amended by Ordinance No. 2025-___, and Title 19 of the LEMC (Development). Notwithstanding the foregoing, the term “Development Regulations,” as used herein, does not include any City ordinance, resolution, code, rule, regulation, or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii) taxes and assessments; (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; (v) the exercise of the power of eminent domain; or (vi) the California Building Standards Codes.
“Cannabis Retail Business Floor Area” means interior gross floor area allocated and dedicated to the retail operation of a Cannabis Retail Business and shall include but not limited to reception or entrance lobby area for customer check-in, retail product storage room(s), office(s), and other ancillary area(s) to support the retail operation (including cannabis delivery). “Cannabis Non-Retail Business Floor Area” means interior gross floor area allocated and dedicated to the cannabis non-retail operation(s) of a Cannabis Non-Retail Business, such as cultivation, distribution, manufacturing, and/or testing laboratory, and shall include but not limited to storage room(s) of finished and raw products, office(s), and other ancillary area(s) to support the non-retail operation(s).

SECTION 3. REVISIONS TO GENERAL PROVISIONS
In order to update certain renumbering of the Lake Elsinore Municipal Code, subparts e and f of Section 1.8 of the Development Agreement entitled Termination are hereby amended to read as follows.
e. abandonment of the Developer’s Conditional Use Permit pursuant to LEMC, Section 17.415.070(D), including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit;
-5-
f. suspension or revocation of Developer’s Conditional Use Permit pursuant to LEMC, Section 17.415.070(G);
In order to address the potential for Developer modifications to the square footage of area allocated to the Cannabis Retail Business and/or Cannabis Non-Retail Business, Section 1.9(a) of the Development Agreement entitled Operating Memoranda; Amendment of Agreement is hereby amended to read as follows.
a. Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between the City and the Developer. The Development of the Developer Property may demonstrate that clarifications to this Agreement and the Existing Land Use Regulations are appropriate with respect to the details of performance of the City and the Developer. To the extent allowable by law, the Developer shall retain a certain degree of flexibility as provided herein with respect to all matters, items and provisions covered in general under this Agreement, except for those which relate to the (i) term; or (ii) permitted uses. When and if the Developer finds it necessary or appropriate to make changes, adjustments or clarifications to matters, items or provisions not enumerated in (i) through (ii) above, the Parties shall effectuate such changes, adjustments or clarifications through operating memoranda (the “Operating Memoranda”) approved by the Parties in writing which reference this Section 1.9(a). Operating Memoranda are not intended to constitute an amendment to this Agreement but mere ministerial clarifications; therefore public notices and hearings shall not be required. The City Manager shall be authorized, upon consultation with, and approval of, the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment to this Agreement which requires compliance with the provisions of Section 1.9(b) below. The Parties agree that proposed changes to the Cannabis Retail Business Floor Area and/or the Cannabis Non-Retail Business Floor Area may be addressed by way of an Operating Memoranda and shall generally include and be evidenced by an updated Floor Plan (Exhibit C) reflecting such changes.

SECTION 4. REVISIONS TO COMMUNITY BENEFITS FEE
Section 4.2 of the Development Agreement entitled Community Benefits Fee is hereby amended to add the following subparts c and d:
c. Community Benefits Fee Upon the Amendment Effective Date.

Notwithstanding subparts (a) and (b) above, concurrent with the Amendment Effective Date, and on each anniversary thereafter, Developer shall make payment to the City pursuant to the following fee schedule:
-6-
All Cannabis Business
activities
$[insert rate as of 6/30/25] per square foot
of area allocated to the Cannabis Retail
Business with an annual 4% increase but
in no event to exceed $25 per square foot;
and
$5 per square foot of area allocated to
Cannabis Non-Retail Business with no
annual increase as provided in subpart d.

Developer may elect to make payments of the Community Benefit Fee due on the Amendment Effective Date and each Adjustment Date (as defined herein) in up to 12 (monthly) equal installments, the first installment to be made on the Amendment Effective Date or Adjustment Date, as applicable. Installment payment plans shall be evidenced by separate agreements of the Parties.
d. Annual Increase. In order to account for the increasing cost of providing City services, the Community Benefits Fee set forth in Section 4.2(c) for any Cannabis Retail Business shall be increased annually commencing on each anniversary of the Amendment Effective Date (each of which day shall be continued to be referred to as an “Adjustment Date”) until said fee reaches $25 per square foot of Floor Area. Each Adjustment Date shall be continued to be numbered in sequence (e.g., Third Adjustment Date, Fourth Adjustment Date, etc.).

The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non-Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows:

Article 4 of the Development Agreement is hereby amended to add the following Section

4.5:

4.5 Tax Payment and Facility Payment Offset.
a. In the event that the voters of the City of Lake Elsinore approve a Cannabis business tax or any percentage of gross receipts based fee, Developer shall pay the amount established by any such measure or initiative (“Tax Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Tax Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied. b. In the event that the voters of the City of Lake Elsinore or the City Council approve a fee based on the square footage of premises where permitted commercial cannabis activities, Developer shall pay the amount established thereby -7-
(“Facility Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Facility Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied.
c. Imposition of a Tax Payment and/or a Facility Payment obligation by the City or the voters of the City of Lake Elsinore shall not relieve Developer of its obligation to pay the Community Benefit Fee except for the offset as set forth in Sections 4.5.a, 4.5.b, 4.5.c, and 4.5.d above.

SECTION 5. ADDITIONAL PROVISIONS

5.1 Release. In consideration for this ______________ Amendment and the provisions as set forth herein, and subject to the City Council approving/adopting this ______________ Amendment Developer, on behalf of itself and its respective successors, assigns, officials, directors, officers, employees, insurers, lenders, lien holders, attorneys, agents, and other representatives, do hereby release the City as any and all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty, claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including attorney’s fees, of any nature whatsoever, known or unknown, fixed or contingent as of the Amendment Effective Date.

5.2 Counterparts. This ______________ Amendment may be executed in counterparts, each of which so executed shall be deemed an original, and such counterparts together shall constitute but one ______________ Amendment.

5.3 No Other Changes. Except as modified by this ______________ Amendment, the terms and conditions of the Original Development Agreement, remain in full force and effect and shall be incorporated as a part of and interpreted as one integrated agreement covering the subjects included therein. If there are any conflicts between the provisions of this ______________ Amendment and the original Development Agreement, the provisions of this ______________ Amendment shall control.

5.4 Recordation by City Clerk. Pursuant to Government Code Section 65868.5, within ten (10) days of execution of this ______________ Amendment by the Parties, the City Clerk shall record a copy with the Riverside County Recorder. Thereafter, pursuant to Government Code Section 65868.5, the burdens of the ______________ Amendment shall be binding upon, and the benefits of the agreement shall inure to, all successors in interest to the Parties to the ______________ Amendment.
[SIGNATURES ON NEXT PAGE]
-8-
IN WITNESS WHEREOF, the Parties have executed this ______________ Amendment as of the dates set forth below.
“CITY”

CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:

Mayor
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

By:

David Mann, Acting City Attorney
“DEVELOPER”
____________________________,
a ___________________
Date: By:
_______________, Its: ____________

STATE OF CALIFORNIA )
) §
County of )
On , before me, a
Notary Public, personally appeared who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.
________________________________
Signature of Notary
(Affix seal here)
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

Page 1 ends

EXHIBIT A

LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

Page 1 ends

EXHIBIT B

SITE PLAN
[TO BE INSERTED]

Page 1 ends

EXHIBIT C

FLOOR PLAN
[Delineated to Show Cannabis Retail Business Area versus Non-Retail Area(s)] [TO BE INSERTED]

Page 1 ends

EXHIBIT D
PROPERTY OWNER’S CONSENT
[ATTACHED]

Page 2 ends

PROPERTY OWNER’S CONSENT
__________________________, a California ________________, being the owner of the real properties described in Exhibit A to this ____________ Amendment to Development Agreement by and between the City of Lake Elsinore and ______________________, dated for identification as of ________________, 2025 (the “________ Amendment”), do hereby consent to the recordation of said ____________ Amendment in the Official Records of the County of Riverside. ____________________________,
a ___________________
Date: By:
_______________, Its: ____________
[notary required]

ORDINANCE NO. 2026-1526

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-10) FOR ROOTS 2 HARVEST LOCATED AT 29370 HUNCO WAY (APN: 377-120-032)
Whereas, Ted Kingston, Roots 2 Harvest, has filed an application with the City of Lake Elsinore (City) requesting approval of Development Agreement (DA) No. 2025-10 (Exhibit A) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 29370 Hunco Way (APN: 377-120-032);
Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within an MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 (Development Agreements) of the Lake Elsinore Municipal Code (LEMC), the Planning Commission (Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement;
Whereas, on January 20, 2026, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-10; and
Whereas, on February 24, 2026, at a duly noticed Public Hearing, the Council considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That, in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The Project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

2. The Project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines, as the Project is wholly located within an existing Ord. No. 2026-1526

Page 2 of 4 ends

building and does not include any earth disturbing activities; therefore, Sections 6.1.2 or

6.3.1 of the MSHCP are not applicable.

4. The Project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The Project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 3: That in accordance with California Planning and Zoning Law and the Section

19.12.080.B. of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-10:

1. It is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan.

The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Limited Industrial (LI). The proposed project is consistent the LI land use designation and with the objectives, policies, general land uses and programs specified in the General Plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

The proposed development agreement amendment will continue to facilitate the establishment of the cannabis facility within an existing industrial building. The cannabis facility has been in operation which includes manufacturing and storage uses consistent with other similar businesses within the Limited Industrial (LI) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning designation.

3. It is in conformity with public convenience, general welfare and good land use practices.

Ord. No. 2026-1526

Page 3 of 4 ends

4. It will not be detrimental to the health, safety and general welfare.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects to the health, safety, and general welfare.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-10 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this ordinance.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 10th day of March 2026.

Robert E. Magee
Mayor
Ord. No. 2026-1526

Page 4 of 4 ends

Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2026-1526 was introduced by the City Council of the City of Lake Elsinore, California, at the Regular meeting of February 24, 2026 and adopted at the Regular meeting of March 10, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE

CITY OF LAKE ELSINORE
AND
___________________________________
Approved ___________ __, 2026
Ordinance No. 2026-_____
-1-
______________ AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND ________________________.

D. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

F. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, [insert name].

G. The Property Owner have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

The following documents are referred to in this _______Amendment, attached hereto and incorporated herein by this reference:

The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non-Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows:

Article 4 of the Development Agreement is hereby amended to add the following Section

4.5:

SECTION 5. ADDITIONAL PROVISIONS

CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:

Mayor
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

By:

David Mann, Acting City Attorney
“DEVELOPER”
____________________________,
a ___________________
Date: By:
_______________, Its: ____________

Page 1 ends

EXHIBIT A

LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

Page 1 ends

EXHIBIT B

SITE PLAN
[TO BE INSERTED]

Page 1 ends

EXHIBIT C

FLOOR PLAN
[Delineated to Show Cannabis Retail Business Area versus Non-Retail Area(s)] [TO BE INSERTED]

Page 1 ends

EXHIBIT D
PROPERTY OWNER’S CONSENT
[ATTACHED]

Page 2 ends

ORDINANCE NO. 2026-1527

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-11) FOR THE NUGG HUBB LOCATED AT 570 CENTRAL AVENUE, SUITE D-1 (APN: 377-410-037)
Whereas, Todd Davis, The Nugg Hubb, has filed an application with the City of Lake Elsinore (City) requesting approval of Development Agreement (DA) No. 2025-11 (Exhibit A) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 570 Central Avenue, Suite D-1 (APN: 377-410-037);
Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within an MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 (Development Agreements) of the Lake Elsinore Municipal Code (LEMC), the Planning Commission (Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement;
Whereas, on January 20, 2026, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-11; and
Whereas, on February 24, 2026, at a duly noticed Public Hearing, the Council considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That, in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The Project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

2. The Project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines, as the Project is wholly located within an existing Ord. No. 2026-1527

Page 2 of 4 ends

building and does not include any earth-disturbing activities; therefore, Sections 6.1.2 or

6.3.1 of the MSHCP are not applicable.

4. The Project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The Project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 2: The Council hereby finds and determines that the Project is categorically exempt from California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section 15301 (Class 1 – Existing Facilities), because the proposed project is an existing cannabis business that is operating within a fully developed site and building. The proposed amendment to the business’s development agreement would not result in new construction, additional square footage, or expansion of the existing use.

Section 3: That, in accordance with California Planning and Zoning Law and Section

19.12.080.B. of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-11:

1. It is consistent with the objectives, policies, general land uses, and programs specified in the General Plan and any applicable specific plan.

The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Limited Industrial (LI). The proposed project is consistent with the LI land use designation and with the objectives, policies, general land uses, and programs specified in the General Plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

The proposed development agreement amendment will continue to facilitate the establishment of the cannabis facility within an existing industrial building. The cannabis facility has been in operation, which includes manufacturing and storage uses consistent with other similar businesses within the Limited Industrial (LI) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning designation.

3. It is in conformity with public convenience, general welfare, and good land use practices.

The existing cannabis facility has been operating in a manner that has not resulted in negative impacts to the public and its general welfare. The proposed development agreement amendment will ensure the cannabis facility continues to have beneficial impacts on the surrounding community. Furthermore, the project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects.

Ord. No. 2026-1527

Page 3 of 4 ends

4. It will not be detrimental to the health, safety, and general welfare.

The proposed development agreement amendment will not be detrimental to the health, safety, and general welfare of the community because the existing cannabis facility has been operating without negative impacts or concerns. The development agreement amendment will ensure the cannabis facility continues to operate in a safe manner.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects on the health, safety, and general welfare.

5. It will not adversely affect the orderly development of property or the preservation of property values;
The cannabis facility is an existing business that has been operating without land use issues and has not caused adverse impacts for existing businesses and future developments. The proposed development agreement amendment will ensure the cannabis facility continues to operate as such.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-11 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this ordinance.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 10th day of March 2026.

Robert E. Magee
Mayor
Ord. No. 2026-1527

Page 4 of 4 ends

Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2026-1527 was introduced by the City Council of the City of Lake Elsinore, California, at the Regular meeting of February 24, 2026 and adopted at the Regular meeting of March 10, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE

CITY OF LAKE ELSINORE
AND
___________________________________
Approved ___________ __, 2026
Ordinance No. 2026-_____
-1-
______________ AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND ________________________.

D. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

F. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, [insert name].

G. The Property Owner have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

The following documents are referred to in this _______Amendment, attached hereto and incorporated herein by this reference:

The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non-Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows:

Article 4 of the Development Agreement is hereby amended to add the following Section

4.5:

SECTION 5. ADDITIONAL PROVISIONS

CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:

Mayor
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

By:

David Mann, Acting City Attorney
“DEVELOPER”
____________________________,
a ___________________
Date: By:
_______________, Its: ____________

Page 1 ends

EXHIBIT A

LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

Page 1 ends

EXHIBIT B

SITE PLAN
[TO BE INSERTED]

Page 1 ends

EXHIBIT C

FLOOR PLAN
[Delineated to Show Cannabis Retail Business Area versus Non-Retail Area(s)] [TO BE INSERTED]

Page 1 ends

EXHIBIT D
PROPERTY OWNER’S CONSENT
[ATTACHED]

Page 2 ends

Page 1 of 1 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Candice Alvarez, MMC, City Clerk
Date: March 10, 2026
Subject: Second Reading of an Ordinance Amending Chapter 16.83 of the Lake Elsinore Municipal Code to Establish Construction Cost Index Adjustments to the Western Riverside County TUMF Program
Recommendation
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING CHAPTER 16.83 OF THE LAKE

ELSINORE MUNICIPAL CODE TO ESTABLISH CONSTRUCTION COST INDEX

ADJUSTMENTS TO THE WESTERN RIVERSIDE COUNTY TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) PROGRAM.

Background/ Discussion
At its Regular meeting on February 24, 2026, the City Council introduced by title only and waived further reading of the Ordinance.

Attachments
Attachment 1 – Ordinance
ORDINANCE NO. 2026-1528

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING CHAPTER 16.83 OF THE LAKE ELSINORE

MUNICIPAL CODE TO ESTABLISH CONSTRUCTION COST INDEX

ADJUSTMENTS TO THE WESTERN RIVERSIDE COUNTY

TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) PROGRAM
WHEREAS, the City of Lake Elsinore is a member agency of the Western Riverside Council of Governments (“WRCOG”), a joint powers agency comprised of the County of Riverside and 18 cities located in Western Riverside County. Acting in concert, the WRCOG Member Agencies developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials in Western Riverside County (the “Regional System”) could be made up in part by a Transportation Uniform Mitigation Fee (“TUMF”) on future residential, commercial, and industrial development; and WHEREAS, in furtherance of this plan, the WRCOG Executive Committee adopted the “Western Riverside County Transportation Uniform Fee Nexus Study”, dated October 18, 2002 (the “2002 Nexus Study”); and
WHEREAS, based on the 2002 Nexus Study, the City adopted Ordinance 1096 on April 22, 2003 (the “TUMF Ordinance,” and as codified in Chapter 16.83 of the Lake Elsinore Municipal Code) pursuant to California Government Code sections 66000 et seq., authorizing the City to impose the Transportation Uniform Mitigation Fee (“TUMF”) upon new development; and WHEREAS, in 2016, the TUMF Nexus Study (“2016 Nexus Study”) was updated for the purpose of updating the fees. On July 10, 2017, the WRCOG Executive Committee reviewed the 2016 Nexus Study and TUMF Program and recommended that TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program; and
WHEREAS, on September 26, 2017, the City adopted Ordinance No. 1381, which adopted the 2016 Nexus Study and updated the TUMF; and
WHEREAS, in 2018, the TUMF Program was altered to adopt a process in which WRCOG calculates and collects TUMF on behalf of member agencies under the Western Riverside County Transportation Uniform Mitigation Fee Program Ordinance of 2018; and WHEREAS, the City adopted Ordinance No. 1501 on February 25, 2025, allowing WRCOG to calculate and collect TUMF on behalf of the City; and WHEREAS, WRCOG, with the assistance of TUMF Participating Jurisdictions, prepared an updated nexus study entitled “Transportation Uniform Mitigation Fee Nexus Study: 2024 Update” (“2024 Nexus Study”) pursuant to California Government Code sections 66000 et seq. (the Mitigation Fee Act), for the purpose of updating the fees; and WHEREAS, in September 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and TUMF Program and recommended that TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program; and
Ord. No. 2026-1528

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WHEREAS, on February 25, 2025, the City Council approved Ordinance No. 1501, which adopted the 2024 Nexus Study and its findings; and
WHEREAS, the TUMF Administrative Plan calls for a Construction Cost Index (“CCI”) adjustment to be brought forth to the WRCOG Executive Committee on an annual basis; and WHEREAS, on December 1, 2025, the WRCOG Executive Committee approved the implementation of an automatic CCI adjustment for all TUMF land uses tied to the September indices of the National Association of Realtors and Engineering News Record with a cap at 5% of any annual adjustments; and
WHEREAS, an automatic CCI adjustment ensures that fee levels keep pace with increases in the cost of constructing transportation projects and avoids large increases at comprehensive TUMF Nexus Study updates; and
WHEREAS, this approach also allows for consistency and predictability for the TUMF Program, while ensuring that the fair share principles under AB 1600 are satisfied; and WHEREAS, the City Council desires to provide for automatic inflationary adjustments to the TUMF to reflect changes in construction costs over time, without modifying the underlying fee nexus, land use assumptions, or fee methodology; and
WHEREAS, this Ordinance also includes minor updates to the definitions portion of the previous Ordinance to clarify the definitions of residential units.

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

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

SECTION 2. The definition of “Multifamily residential unit” set forth in Section 16.83.030 “Definitions” of the Lake Elsinore Municipal Code is hereby amended to read as follows:
“Multifamily residential unit” means a residential dwelling unit that is physically attached to one or more other dwelling units by a shared wall, floor, ceiling, roof, or structural foundation, regardless of the lot or parcel configuration, ownership structure, or type of subdivision (including condominium subdivisions). Multifamily residential units include, but are not limited to, duplexes, townhomes, apartments, and condominiums with attached units. Accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs), as defined by State law, are exempt from TUMF and shall not be counted in determining residential land use classification.

SECTION 3. The definition of “Single-family residential unit” set forth in Section

16.83.030 “Definitions” of the Lake Elsinore Municipal Code is hereby amended to read as follows:
“Single-family residential unit” means a residential dwelling unit that is physically detached from any other dwelling unit, sharing no common wall, floor, ceiling, roof, or structural foundation with another dwelling unit, regardless of the lot or parcel configuration, ownership structure, or type of subdivision (including condominium subdivisions). Accessory dwelling units (ADUs) and junior accessory dwelling Ord. No. 2026-1528

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units (JADUs), as defined by State law, are exempt from TUMF and shall not be counted in determining residential land use classification.

SECTION 4. Section 16.83.040.C is hereby amended to add the following subpart 1 to read as follows:

1. Beginning July 1, 2026, and annually thereafter, the Transportation Uniform Mitigation Fee (TUMF) shall be automatically adjusted to reflect changes in construction costs.

The annual adjustment shall be calculated by WRCOG based on a blended Construction Cost Index derived from: (1) the National Association of Realtors – Median Sales Price of Existing Single-Family Homes, and (2) the Engineering News-Record (ENR) Construction Cost Index, using the September values of each index from the prior calendar year.

The percentage adjustment applied to the TUMF shall equal the annual percentage change in the blended index; provided, however, that in no event shall the annual adjustment exceed five percent (5%), whether positive or negative.

The calculated adjustment shall be implemented on July 1 of the year following the index calculation.

If either referenced index is discontinued or materially altered, WRCOG shall apply a comparable, industry-recognized index that most closely reflects regional transportation construction costs.

SECTION 5. Effect. No provisions of this Ordinance shall entitle any person who has already paid the TUMF to receive a refund, credit or reimbursement of such payment. This Ordinance does not create any new TUMF.

SECTION 6. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases thereof be declared unconstitutional. If, for any reason, any portion of this ordinance is found to be invalid by a court of competent jurisdiction, the balance of this ordinance shall not be affected.

SECTION 7. No Procedural Defenses. Prohibition of Jurisdictions from raising procedural defenses, including, without limitation, a statute of limitations, laches, the California Government Tort Claims Act, and necessary parties in a dispute with WRCOG regarding the matters set forth herein.

SECTION 8. Judicial Review. In accordance with State law, any judicial action or proceeding to attack, review, set aside, void, or annul this Ordinance shall be commenced within ninety (90) days of the date of adoption of this Ordinance.

Ord. No. 2026-1528

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SECTION 9. Ordinance. This Ordinance amends certain provisions of Chapter 16.83 of the Lake Elsinore Municipal Code, provided this Ordinance is not declared invalid or unenforceable by a court of competent jurisdiction. If, for whatever reason, this Ordinance is declared invalid or unenforceable by a court of competent jurisdiction, Chapter 16.83 and all other related ordinances and polices shall remain in full force and effect.

SECTION 10. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 10th day of March 2026.

Robert E. Magee
Mayor
Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2026-1528 was introduced by the City Council of the City of Lake Elsinore, California, at the Regular meeting of February 24, 2026 and adopted at the Regular meeting of March 10, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

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REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: March 10, 2026
Subject: Resolution of Consideration of Change Proceedings for Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights)
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS), DECLARING ITS

INTENTION TO CONSIDER AN AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.

Background
The City of Lake Elsinore (the “City”) formed Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (the “District”) pursuant to the Mello-Roos Community Facilities District Act of 1982. Tri Pointe Homes IE-SD, Inc., a California Corporation is the current landowner of all of the property in the District (the “Developer”). The District is located on the corner of Canyon Hills Road and Cottonwood Canyon Road (the “Property”). Collectively, the Property is approximately 76.71 gross acres with plans to be developed into133 single family residential lots.

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Homebuilding within the District has not yet commenced. Due to increased maintenance responsibilities within the District, the Developer has requested that the District undertake proceedings to amend the Rate and Method of Apportionment of Special Taxes for the District with a First Amended and Restated Rate and Method of Apportionment attached to the Resolution of Consideration presented at this meeting (the “First Amended RMA”).

The current annual Special Tax rates to finance facilities for a single family home within the District range from $4,437 to $5,463. If the First Amended RMA is approved, the annual Special Tax rates for a single family home within the District will range from $4,417 to $5,144.

Discussion
Approval of the attached resolution is the first step in the process to effectuate the changes discussed above. The attached resolution declares the District’s intention to consider approval of the proposed First Amended RMA and calls a public hearing on the approval of the proposed First Amended RMA.

Fiscal Impact
The Developer has made a deposit to pay for the costs of the change proceedings. The Developer will be reimbursed for such costs if and when bonds are issued for the District.

If approved, the District will annually levy special taxes on all of the taxable property within the District in accordance with the First Amended RMA in order to pay for the costs of facilities, services, debt service on bonds issued by the District and administration of the District. Any bonds issued by the District are not obligations of the City and will be secured solely by the Special Taxes levied in the District.

Attachments
Attachment 1 – Resolution
Attachment 2 – Landowner Petition
RESOLUTION NO. 2026-___

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

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS), DECLARING ITS INTENTION TO CONSIDER AN

AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT OF

SPECIAL TAX
Whereas, on June 24, 2025, the City Council of the City of Lake Elsinore (the “City Council”) adopted Resolution No. 2025-034 stating its intention to form Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (“Community Facilities District No. 2025-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
Whereas, on June 24, 2025, the City Council also adopted Resolution No. 2025-035 stating its intention to incur bonded indebtedness within the District in the amount not to exceed $14,000,000 to finance the types of facilities set forth in Resolution No. 2025-034 (the “Facilities”); and the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and Whereas, a notice calling a public hearing on August 12, 2025, was published as required by law relative to the intention of the City Council to establish Community Facilities District No. 2025-1 and to incur bonded indebtedness within Community Facilities District No. 2025-1; and
Whereas, on August 12, 2025, the City Council conducted a noticed public hearing to determine whether it should proceed with the establishment of Community Facilities District No. 2025-1, issue bonds for the benefit of Community Facilities District No. 2025-1 to pay for the Facilities and Incidental Expenses, authorize the levy of special taxes to finance the Facilities and to authorize the rate and method of apportionment of the special taxes in the form attached as Attachment A to the Resolution of Formation (the “Rate and Method”) to be levied within Community Facilities District No. 2025-1 for the purposes described in the Resolution of Formation; and
Whereas, at the August 12, 2025, public hearing all persons desiring to be heard on all matters pertaining to the establishment of Community Facilities District No. 2025-1, the levy of the special taxes in accordance with the Rate and Method and the issuance of bonds within Community Facilities District No. 2025-1 to pay for the cost of the proposed Facilities and Incidental Expenses were heard and a full and fair hearing was held; and Whereas, after the public hearing, on August 12, 2025, the City Council adopted Resolution Nos. 2025-60 (the “Resolution of Formation”) and 2025-61 (the “Resolution to Incur Bonded Indebtedness”) which formed the District and called a special election on August 12, 2025, within the District on propositions relating to the levying of the special taxes, the incurring of CC Reso No. 2026-
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bonded indebtedness and the establishment of an appropriations limit for the District, which were approved by more than two-thirds vote by the qualified electors on August 12, 2025; and Whereas, pursuant to Resolution No. 2025-62, adopted on August 12, 2025, the City Council, acting as the legislative body of Community Facilities District No. 2025-1, declared the results of the special election and directed the recording of a notice of special tax lien within Community Facilities District No. 2025-1; and
Whereas, the District has received a petition signed by Tri Pointe Homes IE-SD, Inc., a California Corporation (the “Owner”), which owns all of the land within Community Facilities District No. 2025-1, the boundaries of which are shown on the map designated “Boundary Map of Community Facilities District No. 2025-1 (Canyon Hills Heights) City of Lake Elsinore, County of Riverside, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County ClerkRecorder’s office of the County of Riverside in Book No. 96 Page No. 66 on July 2, 2025 as Instrument No. 2025-0202948, which petition meets the requirements of Section 53332 of the Act, requesting that the District initiate proceedings to approve the new rate and method of apportionment for Community Facilities District No. 2025-1, attached hereto as Attachment “A” (the “First Amended and Restated Rate and Method”); and

NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS), DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District.

Section 2. The City Council, acting as the legislative body of the District, declares its intention to conduct proceedings pursuant to the Act to consider amending and restating the Rate and Method with the First Amended and Restated Rate and Method.

Section 3. The Facilities proposed to be provided within the District are public facilities as defined in the Act. The Facilities and Incidental Expenses authorized to be financed by the District are described in the Resolution of Formation. The City and the Elsinore Valley Municipal Water District, with respect to certain water and sewer facilities, are authorized by law to construct, acquire, own and operate the Facilities for the benefit of the District.

Section 4. A public hearing (the “Hearing”) on the levy of special taxes in the District in accordance with the First Amended and Restated Rate and Method, shall be held at 7:00 p.m., or as soon thereafter as practicable, on April 14, 2026, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to submit the proposed First Amended and Restated Rate and Method to the qualified electors of the District, a special election will be held to authorize the First Amended and Restated Rate and Method in accordance with the procedures contained in Government Code Section 53326. If such election is held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the District. Ballots for the special election may be distributed by mail or by personal service.

CC Reso No. 2026-
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Section 4. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the District, may appear and be heard.

Section 5. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area within Community Facilities District No. 2025-1. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of Community Facilities District No. 2025-1 at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the District and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 6. This Resolution shall be effective upon its adoption.

Section 7. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 10th day of March 2026.
_____________________________
Robert Magee, Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk

CC Reso No. 2026-
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2026-______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of March 10, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
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ATTACHMENT “A”

PROPOSED FIRST AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE

CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS)
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Lake Elsinore Community Facilities District No. 2025-1 (Canyon Hills Heights) ("CFD No. 2025-1”). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2025-1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, 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:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a standalone Residential Unit. "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter

2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2025-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2025-1 or obligated persons associated with applicable federal and state securities laws and 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. 2025- 1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025-1 for any other administrative purposes of CFD No. 2025-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 2 of 18
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"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax of CFD No. 2025-1 have been pledged.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2025-1” means Community Facilities District No. 2025-1 (Canyon Hills Heights) established by the City under the Act.
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“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2025-1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 6624.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) has an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“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 Category” means any of the categories listed in Table 1 and Table 2 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025-1 in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

"Non-Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s) was issued or will be issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. 4 of 18
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"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Sections F. "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 Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2025-1 or the payment of debt services on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. “Tax Zone(s)” means the geographical area(s) within CFD No. 2025-1 identified as Tax Zone 1 or Tax Zone 2 as shown on the Boundary Map.
“Tax Zone 1” means all property located within CFD No. 2025-1 and identified on the Boundary Map as Tax Zone 1.
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“Tax Zone 2” means all property located within CFD No. 2025-1 and identified on the Boundary Map as Tax Zone 2.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property.

B. SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025-2026, each Assessor’s Parcel within CFD No. 2025-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property shall be further classified as being within Tax Zone 1 or Tax Zone 2.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property, or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further categorized into Land Use Categories based on its Building Square Footage and assigned to its appropriate Assigned Special Tax rate.

In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and shall be taxed as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on all other Undeveloped Property multiplied by the total of the amount determined in clause (1), less the amount determined in clause (2).
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D. MAXIMUM SPECIAL TAX

1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.

The Maximum Special Tax for each Assessor’s Parcel of Non-Residential or Multifamily Residential Property shall be the applicable Assigned Special Tax described in Table 1 and Table 2 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 and Table 2 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 1
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit

1. Single Family Residential
Property RU Less than 1,900 sq. ft $4,147

2. Single Family Residential
Property RU
1,900 sq. ft to 2,100 sq.
ft $4,247

3. Single Family Residential
Property RU
Greater than 2,100 sq.
ft $4,397

4. Multifamily Property Acre N/A $46,851

5. Non-Residential Property Acre N/A $46,851
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
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TABLE 2

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 2
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit

1. Single Family Residential
Property RU Less than 2,100 sq. ft $4,784

2. Single Family Residential
Property RU
2,100 sq. ft to 2,300 sq.
ft $4,907

3. Single Family Residential
Property RU
Greater than 2,300 sq.
ft $5,144

4. Multifamily Property Acre N/A $26,440

5. Non-Residential Property Acre N/A $26,440
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Land Use Categories located on the Assessor’s Parcel.

The CFD Administrator’s allocation to each type of property shall be final. c. Backup Special Tax
When a Final Map is recorded, the Administrator shall determine which Tax Zone the Final Map area lies within and the Backup Special Tax for an Assessor’s Parcel within the Final Map classified or to be classified as Single Family Property shall calculated according to the following formula.

B = (U x A) / L
The terms above have the following meanings:

B = Backup Special Tax per per Assessor’s Parcel within the Final Map U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below A = Acreage of Single Family Residential Property expected to exist in such Final Map at the time of calculation, as determined by the Administrator L = Number of Residential Units expected to exist in such Final Map at the time of calculation, as determined by the Administrator.
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In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be determined by Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX PER ACRE
Tax Zone
Maximum Special
Tax per Acre
1 $46,851
2 $26,440
In the event any superseding Final Map is recorded as a Final Map within the Boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be on the rate per Acre shown in the table above. The Backup Special Tax shall not apply to Multifamily Residential Property, or Non-Residential Property.

On each July 1, commencing July 1, 2026, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.

The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $46,851 per Acre for Tax Zone 1 and $26,440 per Acre for Tax Zone 2.

On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of $46,851 per Acre for Tax Zone 1 and $26,440 per Acre for Tax Zone 2 multiplied by the Acreage of such Assessor’s Parcel.

On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Undeveloped and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

Step One: 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 rate to satisfy the Special Tax Requirement. 9 of 18
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Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.

Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than the amounts shown in Table 4 below.

TABLE 4

MINIMUM TAXABLE ACRES
Tax Zone Acres
1 5.46
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2 16.44
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than the Acres shown in Table 4 per Tax Zone. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than the Acres shown in Table 4 per Tax Zone will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $13,000,000 expressed in 2026 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2025-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Amended and Restated Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible to be financed by CFD No. 2025-1. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the city of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded through existing construction or escrow accounts funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property, or Provisional Undeveloped Property that are not Exempt Property pursuant to Section F. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes 11 of 18
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with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

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

2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property, Property Owner’s Association Property, or Provisional Undeveloped Property to be prepaid compute the Maximum Special Tax for the Assessor’s Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined 12 of 18
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pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

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

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (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 (as defined in the Indenture), 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 (as defined in the Indenture) 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 Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.

In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for 13 of 18
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which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

PP = ((PE – A) x F) + A
These terms have the following meaning:

PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Maximum Special Tax obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation will continue to be levied on the Assessor’s Parcel pursuant to Section E. 14 of 18
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H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2069-2070 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2025-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2025-1 have been satisfied.

I. 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. 2025-1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The CFD Administrator shall interpret this Amended and Restated Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified. 1 4925-3879-0799/022042-0050

PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE REQUESTING INSTITUTION OF CHANGE
PROCEEDINGS FOR COMMUNITY FACILITIES DISTRICT NO. 2025- 1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS)

1. The undersigned (the “Owner”) is the owner of all of the land shown on the map designated “Boundary Map of Community Facilities District No. 2025-1 (Canyon Hills Heights) City of Lake Elsinore, County of Riverside, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 96 Page No. 66 on July 2, 2025 as Instrument No. 2025-0202948 (the “Property”), which land is all of the land included within the boundaries of Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (the “District”). The Property is located within the City of Lake Elsinore (the “City”) in the County of Riverside.

2. The Owner requests, pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”), that the City Council of the City (the “City Council”) institute proceedings to approve the new rate and method of apportionment for the District, attached hereto as Exhibit A (the “First Amended and Restated Rate and Method”).

3. The Owner further requests that the City Council authorize the levy of special taxes in accordance with the First Amended and Restated Rate and Method in the District to pay the costs of the facilities and incidental expenses (the “Facilities”) of the District previously authorized in connection with the formation of the District and to pay principal of, interest and premium, if any, on the bonds in order to contribute to the financing of the Facilities and the incidental expenses.

4. The Owner further requests that, upon the sale of bonds, the City Council, as legislative body of the District, annually levy special taxes in accordance with the Amended and Restated Rate and Method on the property within the District for the construction, acquisition and rehabilitation of the Facilities, for the payment of the aggregate amount of principal of and interest owing on the bonds in each fiscal year, including the maintenance of reserves therefor, for the payment of administrative expenses of the District.

5. The Owner has advanced to the City the amounts necessary to pay for the costs related to the change proceedings for the District, which amounts will be reimbursed, without interest, from the proceeds of the first sale of the bonds, if any. The reimbursement of such amounts is expected to be governed by the terms of that certain Acquisition, Construction and Funding Agreement (the “Acquisition Agreement”) entered into on August 12, 2025 by and between the City and the Owner relating to the District. If bonds are not sold, the City will have no obligation to reimburse amounts expended for costs incurred, but will reimburse any unexpended amounts advanced by the Owner as set forth in the Acquisition Agreement. 2 4925-3879-0799/022042-0050
Dated: February __, 2026
TRI POINTE HOMES IE-SD, INC., a
California corporation
By:____________
Brian Ortwein, Manager Member

B-1
4925-3879-0799/022042-0050

EXHIBIT A

PROPOSED FIRST AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF
COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE

2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2025-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2025-1 or obligated persons associated with applicable federal and state securities laws and 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. 2025- 1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025-1 for any other administrative purposes 2 4925-3879-0799/022042-0050
of CFD No. 2025-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax of CFD No. 2025-1 have been pledged.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2025-1” means Community Facilities District No. 2025-1 (Canyon Hills Heights) established by the City under the Act.
3 4925-3879-0799/022042-0050
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2025-1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 6624.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) has an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“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 Category” means any of the categories listed in Table 1 and Table 2 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025-1 in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

"Non-Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s) was issued or will be issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. 4 4925-3879-0799/022042-0050
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Sections F. "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 Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2025-1 or the payment of debt services on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. “Tax Zone(s)” means the geographical area(s) within CFD No. 2025-1 identified as Tax Zone 1 or Tax Zone 2 as shown on the Boundary Map.
“Tax Zone 1” means all property located within CFD No. 2025-1 and identified on the Boundary Map as Tax Zone 1.
5 4925-3879-0799/022042-0050
“Tax Zone 2” means all property located within CFD No. 2025-1 and identified on the Boundary Map as Tax Zone 2.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 1
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit

1. Single Family Residential
Property RU Less than 1,900 sq. ft $4,147

2. Single Family Residential
Property RU
1,900 sq. ft to 2,100 sq.
ft $4,247

3. Single Family Residential
Property RU
Greater than 2,100 sq.
ft $4,397

4. Multifamily Property Acre N/A $46,851

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 2
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit

1. Single Family Residential
Property RU Less than 2,100 sq. ft $4,784

2. Single Family Residential
Property RU
2,100 sq. ft to 2,300 sq.
ft $4,907

3. Single Family Residential
Property RU
Greater than 2,300 sq.
ft $5,144

4. Multifamily Property Acre N/A $26,440

B = (U x A) / L
The terms above have the following meanings:

B = Backup Special Tax per per Assessor’s Parcel within the Final Map U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below A = Acreage of Single Family Residential Property expected to exist in such Final Map at the time of calculation, as determined by the Administrator L = Number of Residential Units expected to exist in such Final Map at the time of calculation, as determined by the Administrator.
8 4925-3879-0799/022042-0050
In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be determined by Table 3 below:

TABLE 3

On each July 1, commencing July 1, 2026, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

Step One: 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 rate to satisfy the Special Tax Requirement. 9 4925-3879-0799/022042-0050
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

TABLE 4

MINIMUM TAXABLE ACRES
Tax Zone Acres
1 5.46
10 4925-3879-0799/022042-0050
2 16.44
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than the Acres shown in Table 4 per Tax Zone. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than the Acres shown in Table 4 per Tax Zone will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property, or Provisional Undeveloped Property that are not Exempt Property pursuant to Section F. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes 11 4925-3879-0799/022042-0050
with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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

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

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined 12 4925-3879-0799/022042-0050
pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).

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

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for 13 4925-3879-0799/022042-0050
which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.

PP = ((PE – A) x F) + A
These terms have the following meaning:

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Maximum Special Tax obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation will continue to be levied on the Assessor’s Parcel pursuant to Section E. 14 4925-3879-0799/022042-0050
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2069-2070 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2025-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2025-1 have been satisfied.

Page 1 of 3 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckey, Assistant City Manager
Date: March 10, 2026
Subject: Annexation No. 29 Into Community Facilities District No. 2015-2 (Maintenance Services) for Tentative Tract Map (TTM) 34249 (Canyon Hills Heights)
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 29) AND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN.

Background
On September 22, 2015, the City Council approved Resolution No. 2015-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore (the "CFD No. 2015-2" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

CFD No. 2015-2 Annexation No. 29

Page 2 of 3 ends

Tri Pointe Homes IE-SD, Inc. (the “Owner”), owns 76.71 gross acres of vacant residential lots proposed to include 133 single-family residential properties within the City (TTM 34249) known as Canyon Hills Heights. The project area encompassing this tract was previously annexed into Community Facilities District No. 2015-2 (Maintenance Services) as Annexation No. 23. However, subsequent modifications to the development plan by the Owner, have resulted in revised public improvement obligations and corresponding adjustments in maintenance responsibilities. These changes necessitate a new annexation, designated as Annexation No. 29, to reflect the updated configuration of services to be provided through CFD No. 2015-2.

Discussion
The landowner has advised the City that the area described in Exhibit “A” of the Resolution of Intention to be annexed into CFD No. 2015-2 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit “C”.

The area proposed within Annexation No. 29 will encompass 133 single-family residential lots.

The territory proposed to be annexed into CFD No. 2015-2 will be included in Tax Zone 34. The proposed total maximum tax rate for Tax Zone 34 is $921 per unit per year for Special Tax A and $209 per unit per year for Special Tax B. The maximum annual tax rates are proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. See attachment 3 for a maintenance exhibit illustrating which services are being maintained by the CFD.

The Owner has agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office, to initiate and conduct proceedings pursuant to the MelloRoos Act of 1982, requesting the annexation of property to CFD No. 2015-2 (Maintenance Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

The next step to annex the property to CFD No. 2015-2 is to publish a notification of the proposed district along with the "Resolution of Intention" and Boundary Map of the proposed Annexation area. A public hearing on the matter will take place on April 14, 2026, and at that time the Council will formally consider approval of Annexation No. 29.

Upon completion and formal approval of Annexation No. 29, the existing special tax liens associated with Tax Zones 26, established under Annexation No. 23, will be terminated, and a Notice of Cessation of Special Tax will be recorded accordingly.

Fiscal Impact
On March 1 of each year, every taxable property for which a building permit has been issued will be subject to the special taxes in the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be on undeveloped property within the Tax Zones.

Once developed, the Special Tax A for Tax Zone 34 will generate $122,493 for maintenance services.

CFD No. 2015-2 Annexation No. 29

Page 3 of 3 ends

Attachments
Attachment 1 – Project Map
Attachment 2 – Resolution of Intention
Exhibits A – G
Attachment 3 – CFD Maintenance Responsibility Map

HILLSI D E DR

CANYON HILLS
RD

CEDARHILL
LN

HEMLOCK ST CORKTREE R D
^_ORANGE ST

NEWPORT
RD

RAILR OAD

CANYON RD

GRAY FOXDR

CANYO N
HILLS
RD

SU MMERHI LL DR CANYON DR

HOLTWAY

LOST RD

GARBANI RD

CRAIG AVE

NORTH LOOP DR LA STRADA
CANYON DR §¨¦15
COMMUNITY FACILITIES DISTRICT NO. 2015-2
ANNEXATION NO. 29

PROJECT MAP
RESOLUTION NO. 2026-____

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

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 29) AND AUTHORIZING THE LEVY OF A

SPECIAL TAXES THEREIN
Whereas, on September 22, 2015, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) approved Resolution No. 2015-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore, County of Riverside, State of California, defined the "CFD No. 2015-2", for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and
Whereas, the City Council has received a written instrument from the landowner in the CFD No. 2015-2 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2015-2 and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and Whereas, the City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2015-2, that a rate and method of apportionment of the special tax to be levied therein be established;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Intent to Annex. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District.

Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2015-2 (Maintenance Services)”.

Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed are included within the boundaries within which property may annex to CFD No. 2015-2 and are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore, County of Riverside, State of California,” as recorded on August 19, 2015 in Book 78 of Maps of Assessment and Community Facilities District,

Page 74 ends

The territory proposed to be annexed to the CFD No. 2015-2 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on CC Res. No. 2026-_____

Page 2 of 3 ends

the map thereof entitled "Annexation Map No. 29, Community Facilities District No. 2015-2 (Maintenance Services), City of Lake Elsinore, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.

Section 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2015-2 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2015-2, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2015-2. The Services authorized to be financed by CFD No. 2015-2 are in addition to those currently provided in the territory of CFD No. 2015-2 and do not supplant services already available within that territory.

Section 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2015-2, will be levied annually within CFD No. 2015-2. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C.

Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2015-2. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

Section 7. Public Hearing. The City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Tuesday, April 14, 2026, in the City Council Chambers located at 183 N Main St., Lake Elsinore, California 92530, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2015-

2. Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2015-2.

The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.

Section 9. Mailing Ballots. In anticipation of its action on Tuesday, April 14, 2026 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2015-2 a ballot, the full text of which shall be as set forth in Exhibit G hereto, and shall be included in the ballot pamphlet mailed to each qualified elector. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

Section 10. Effective Date. This Resolution shall take effect immediately upon it’s adoption.

Section 11. This City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

CC Res. No. 2026-_____

Page 3 of 3 ends

Lake Elsinore City CouncilMarch 10, 2026

Lake Elsinore City Council
March 10, 2026