ITEM 4. 13
CITY MANAGER' S REPORT
APRIL 11, 2022 CITY COUNCIL REGULAR MEETING
ITEM: APPROVAL OF FINAL MAP, STREET NAMES, CFD
ANNEXATION, AND SUBDIVISION IMPROVEMENT
AGREEMENT FOR 108 UNITS ( 1 LOT) IN TRACT 4115
VILLAGE CC" WITHIN LAKESIDE EAST DISTRICT OF
RIVER ISLANDS
RECOMMENDATION: Adopt Resolution Approving Final Map for Tract 4115 Village ' CC" within the Lakeside East District of River Islands, Totaling 108 Single Family Condominium
Units ( 1 Lot), Street Names, CFD Annexation No. 26,
and Subdivision Improvement Agreement with River
Islands Stage 2A, LLC
SUMMARY:
On June 1, 2015, the City Council approved an amendment to Vesting Tentative Map Tract 3694 ( VTM 3694), Phase 1 of River Islands at Lathrop, by Resolution No. 15- 3912 and an Amendment to the West Lathrop Specific Plan and River Islands Urban Design Concept by Ordinance No. 15- 344.
The proposed Final Map Tract 4115 is different from other final maps approved for the East Village District in that it will create a large lot utilized for medium density single family condominium dwelling units that are clustered" three unit packs. Van Daele Homes is the builder and the tract name is " Hideaway II". A Vicinity map and a Layout/ Unit Map Exhibit is included as Attachment " B".
Staff recommends that the City Council approve the proposed Final Map 4115, Village CC", Subdivision Improvement Agreement ( Attachment " D") with River Islands Stage 2A, LLC ( River Islands), proposed street names, and approval of City of Lathrop CFD- 2013 Annexation No. 26.
BACKGROUND:
The land for Tract 4115 is within the geographic boundaries of VTM 3694 approved by Council on March 27, 2007, and amended on June 1, 2015 with updated conditions of approval. On December 2, 2020, the City of Lathrop Planning Commission approved a Neighborhood Design Plan ( NDP) and Architectural Guidelines and Design Standards ( AG/ DS) for the Lakeside East District, known as Stage 2A, within Phase 1 of the project.
This proposed Final Map 4115 is considered a condominium map. As a result, the homebuilder, Van Daele Homes, must also obtain Bureau of Real Estate ( BRE) approval from the State in order to construct the project and must create a CITY MANAGER' S REPORT PAGE 2
APRIL 11, 2022 CITY COUNCIL REGULAR MEETING
APPROVAL OF FINAL MAP, STREET NAMES, CFD ANNEXATION, AND SIA FOR 108 UNITS ( 1 LOT) IN TRACT 4115 VILLAGE CC" WITHIN LAKESIDE EAST
DISTRICT OF RIVER ISLANDS
Homeowners Association ( HOA) for the project to maintain privately owned improvements after completion, including the on- site private streets.
As part of the Final Map, streets and street names are typically included in the approval, however, the streets are privately owned for Tract 4115. The City is still required to approve street names for addressing purposes. The street names shown in Attachment C" have been reviewed and approved by the Lathrop- Manteca Fire Department and the San Joaquin Sheriff Department.
As required by the City' s subdivision ordinance, all final maps must include a Subdivision Improvement Agreement ( SIA) to guarantee certain off- site and on- site improvements associated with the Final Map.
Performance and labor & material securities were provided with the SIA for Tract 4022 that guarantee the unfinished improvements for Village CC", including both Tract 4022 and 4115.
The SIA for Tract 4115 refers to the Agreement for Dedication, Inspection, and Guarantee of Streets and Public Improvements (" Off- site Agreement") that was approved by the City on September 30, 2013. Although the Off- site Agreement applies to Tract 4115, the Final Map will not trigger any additional offsite improvements or security.
The public improvements will be processed by staff at a later date and the private improvements will be constructed immediately after the improvement plans have been approved.
Before the Final Maps are recorded, River Islands must also satisfy the Escrow Instructions ( Attachment " E") that guarantee all required payments to the Sierra Club are made under the terms of the 3rd Amendment to the Development Agreement.
Tract 4115 will need to be annexed into Community Facility District No 2013- 1 ( River Islands Public Services and Facilities) with Annexation No. 26 for maintenance purposes. River Islands has signed the appropriate documentation to commit to the annexation and the Final Map recordation is contingent on the completion of the annexation.
REASON FOR RECOMMENDATION:
Completion of the unfinished improvements is required prior to the first occupancy of the first production home building final permit in Tract 4115. Prior to acceptance of public improvements within Tract 4115, River Islands shall provide a one- year maintenance and repair bond to secure the developers obligation to maintain all CITY MANAGER' S REPORT PAGE 3
APRIL 11, 2022 CITY COUNCIL REGULAR MEETING
APPROVAL OF FINAL MAP, STREET NAMES, CFD ANNEXATION, AND SIA FOR 108 UNITS ( 1 LOT) IN TRACT 4115 VILLAGE CC" WITHIN LAKESIDE EAST
DISTRICT OF RIVER ISLANDS
improvements and repair or correct any defective work. River Isiands has provided the tract map, the tract improvement plans, all required documents and all fees for Tract 4115.
This includes the following documents and fees:
Documents Status
1. Final Map ready for signature Completed
2. Subdivision Improvement Agreement Completed
3. Performance Security - Uncompleted Landscaping and
Completed
Miscellaneous Im rovements rovided with Tract 4022
4. Labor and Materials Security - Uncompleted Landscaping and Miscellaneous Improvements provided with Tract Completed 4022
5. Street Improvement, Landscape, Light & Joint Trench Completed
6. Geotechnical Report Completed
7. Agreement for Backbone Improvements and Parks
Agreement for Dedication, Inspection and Guarantee Completed of Streets and Public Im rovements
8. Approval of 3rd Amendment to Development
Agreement that guarantees creation of CFD for City
Maintenance and Shortfalls, and Guarantee of Completed
Developer CFDs for Developer/ other public agency
Maintenance
9. Allocation of Water and Sewer capacity Completed
10. Recommendation for approval from Stewart Tract
Completed
Desi n Review Committee
11. Submitted Certificate of Insurance, Tax Letter Completed
12. Submitted Preliminary Guarantee of Title Completed
13. Escrow Instructions Completed
14. Village CC" - Annexation No. 26 of City of Lathrop Approval Community Facilities District No. 2013- 1 ( River Islands Pending with this Public Services and Facilities) item
Fees Status
1. Final Map plan check fee Paid
2. Improvement Plans - Plan check and inspection fees Paid
3. Sierra Club Settlement fee
To be paid in
escrow
CITY MANAGER' S REPORT PAGE 4
APRIL 11, 2022 CITY COUNCIL REGULAR MEETING
APPROVAL OF FINAL MAP, STREET NAMES, CFD ANNEXATION, AND SIA FOR 108 UNITS ( 1 LOT) IN TRACT 4115 VILLAGE CC" WITHIN LAKESIDE EAST
DISTRICT OF RIVER ISLANDS
FISCAL IMPACT:
There is no fiscal impact to the City as all costs are covered by development fees and any shortfalls in the City' s maintenance and operating costs are covered by the CFDs.
ATTACH M ENTS:
A. Resolution approving Final Map for tract 4115 village CC" within the Lakeside East District of River Islands, Totaling 108 single family condominium units ( 1 lot), street names, CFD annexation No. 26, and Subdivision Improvement Agreement with River Islands Stage 2A, LLC.
B. Vicinity/ Exhibit Map - Village ' CC" & Hideaway II Layout/ Unit C. Proposed Street Name Exhibit
D. Subdivision Improvement Agreement between the City of Lathrop and River Islands Stage 2A, LLC, a Delaware limited liability company, for Tract 4115, Village CC"
E. Escrow Instructions - Final Map Tract 4115 Village CC", including the Annexation No. 26 of City of Lathrop Community Facilities District No. 2013- 1 F. Final Map - Tract 4115 Village " CC"
CITY MANAGER' S REPORT PAGE 5
APRIL 11, 2022 CITY COUNCIL REGULAR MEETING
APPROVAL OF FINAL MAP, STREET NAMES, CFD ANNEXATION, AND SIA FOR 108 UNITS ( 1 LOT) IN TRACT 4115 VILLAGE CC" WITHIN LAKESIDE EAST
DISTRICT OF RIVER ISLANDS
APPROVALS:
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Bra aylor Date
Land Development Manager
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Michael King Date
Director of Public Works
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Glenn Gebhardt Date
Cit Engineer
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Cari Jame Date
Finance Dir c or
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Salvador Navarrete Date
City Attorney
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Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP APPROVING FINAL MAP FOR TRACT 4115 VILLAGE CC" WITHIN THE LAKESIDE EAST DISTRICT OF RIVER ISLANDS, TOTALING 108 SINGLE FAMILY CONDOMINIUM UNITS ( 1 LOT), STREET NAMES, CFD ANNEXATION NO. 26, AND SUBDIVISION IMPROVEMENT AGREEMENT WITH RIVER ISLANDS STAGE 2A, LLC
WHEREAS, on March 27, 2007, the City Council approved Vesting Tentative Map ( VTM) No. 3694 with Conditions of Approval for residential and commercial development that is consistent with the West Lathrop Specific Plan ( WLSP) and the River Islands Urban Design Concept ( UDC); and
WHEREAS, on June 1, 2015, the City Council approved amendments to the VTM, WLSP, and UDC, with amended conditions of approval; and WHEREAS, on December 2, 2020, the City of Lathrop Planning Commission approved a Neighborhood Design Plan ( NDP) and Architectural Guidelines and Design Standards ( AG/ DS) for the Lakeside East District, known as Stage 2A, within Phase 1 of the project; and
WHEREAS, the proposed Final Map is part of the Lakeside East District of River Islands, consisting of 1 buildable lot to accommodate 108 condominium units ( 3 unit packs); and
WHEREAS, Tract 4115 is considered a condominium map, therefore the homebuilder, Van Daele Homes, must also obtain Bureau of Real Estate ( BRE) approval from the State in order to construct the project and must create a Homeowners Association ( HOA) for the project to maintain privately owned improvements after completion, including the on- site private streets; and WHEREAS, part of the Final Map, streets and street names are typically included in the approval, however, the streets are privately owned for Tract 4115.
The City is still required to approve street names for addressing purposes. The street names shown in Attachment " C" of the City Manager' s Report have been reviewed and approved by the Lathrop- Manteca Fire Department and the San Joaquin Sheriff Department; and
WHEREAS, required by the City' s subdivision ordinance, all final maps must include a Subdivision Improvement Agreement ( SIA) to guarantee certain off-site and on- site improvements associated with the Final Map; and WHEREAS, performance and labor & material securities were provided with the SIA for Tract 4022 that guarantee the unfinished improvements for Village " CC", including both Tract 4022 and 4115; and
WHEREAS, the SIA for Tract 4115 refers to the Agreement for Dedication, Inspection, and Guarantee of Streets and Public Improvements ( Off- site Agreement") that was approved by the City on September 30, 2013. Although the Off- site Agreement applies to Tract 4115, the Final Map will not trigger any additional offsite improvements or security; and
WHEREAS, the public improvements will be processed by staff at a later date and the private improvements will be constructed immediately after the improvement plans have been approved; and
WHEREAS, prior to acceptance of public improvements within Tract 4115, River Islands shall provide a one- year maintenance and repair bond to secure the developers obligation to maintain all improvements and repair or correct any defective work; and
WHEREAS, River Islands will satisfy the escrow requirements to fund the Settlement Fee prior to recordation of the Final Map for Tract 4115; and WHEREAS, Tract 4115 will need to be annexed into Community Facility District No 2013- 1 ( River Islands Public Services and Facilities) with Annexation No. 26 for maintenance purposes.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Lathrop that approves and accepts the following actions:
1. The Final Map for Tract 4115 and is hereby approved as submitted for recordation with the San Joaquin County Assessor/ Recorder/ County Clerk Office. The recorded executed copy will be filed with the City Clerk.
2. The proposed street names as shown in Attachment " C" of the City Manager' s Report, incorporated by reference herein.
3. The City Manager, or their designee, is authorized to execute a Subdivision Improvement Agreement with River Islands Stage 2A, LLC, Annexation of the City of Lathrop Community Facilities District No. 2013- 1 No. 26 ( River Islands Public Services and Facilities), in substantially the form as attached to the April il, 2022 staff report, the file executed copy will be filed with the City Clerk.
PASSED AND ADOPTED by the City Council of the City of Lathrop this 11t" day of April 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
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ATTACHMENT D
SUBDIVISION IMPROVEMENT AGREEMENT
BY AND BETWEEN THE CITY OF LATHROP AND
RIVER ISLANDS STAGE 2A, LLC, A DELAWARE LIMITED LIABILITY COMPANY FOR TRACT 4115 VILLAGE " CC" 108 UNITS ( 1 LOT)
RECITALS
A. This Agreement is made and entered into this llth day of Apri12022, by and between the CITY OF LATHROP, a municipal corporation of the State of Califarnia (hereinafter " CTTY") and River Islands Stage 2A, LLC, a Delaware limited liability company, ( hereinafter SUBDIVIDER").
B. Pursuant to Division 2 of Title 7 of the Government Code of the State of California and the CTTY' s Subdivision Regulations ( City of Lathrop, Code of Ordinances, Chapter 16), SUBDIVIDER is required to make dedications and ilnprove Tract 4115. However, SUBDIVIDER has completed a significant portion of public infrastructure improvements associated with Tract 4115 ( Village" CC") located within the Lakeside East District of River Islands Phase l, which also includes major streets necessary to access the site. Performance and Labor & Material securities have been provided with the SIA for Tract 4022 that guarantee the unfinished improvements for Village " CC", which includes Tract 4ll5, in the amount shown in Section 8, and therefore no additional security is needed for Tract 4115.
C. SUBDIVIDER has completed a portion of the joint trench improvements for Tract 4115 and as noted in Recital B, security shall be required for the unfinished portion of these improvements, along with other required infrastructure associated with Tract 4115 and Village CC" overall. Improvement plans, and street light plans prepared by Power Systems Design, Inc. have already been approved by the City. The street, sidewalk, underground utility, storm drainage, streetlight and joint trench improvements ( hereinafter " Improvements") are substantially completed and minor improvements not yet constructed as part of the required infrastructure for Tract 4115 are required security as outlined in this Agreement is required.
NOW THEREFORE in consideration of CITY' S pending approval and acceptance of the Improvements upon their satisfactory completion, and in consideration of SUBDIVIDER' S construction of Improvements in strict accordance with the terms of this Agreement, all applicable laws, statutes, ordinances, rules and regulations currently in force and effect in CITY, the terms and conditions of which are incorporated herein by this reference, the parties hereto mutually covenant and agree as follows:
Subdivision Improvement Agreement( River Islands Stage 2A, LLC) Tract 4115 Village " CC"
1. SUBDIVIDER shall complete construction of, or cause construction to be completed at its sole cost and expense, the Improvements for all ofthe lots within the Lakeside East neighborhood, to the limits identified in ERhibit" A", including the public landscaping, streetlight and joint trench improvements. A Vicinity Map is included as Exhibit " B".
All improvements shall be constructed to the satisfaction and approval of the City Engineer, in a good and workmanlike manner in accordance with the above referenced improvement plans and specifications, the improvement standards and specifications of the CITY' S Department of Public Works, the applicable Ordinances of the City of Lathrop and the California Subdivision Map Act.
2. SUBDIVIDER shall complete the Improvements, including all deferred and unfinished improvements, prior to occupancy of the last home constructed in Tract 4115 that is conveyed to a private interest not associated with the transfer of title of Tract 4115 associated with the filing of Tract 4115 ( homebuilder), prior to the completion and occupancy of the last production dwelling unit associated with Tract 4115, or April 11, 2023, whichever comes first. Such occupancy shall be documented by CITY in the form of a Certificate of Occupancy or Final Building Permit.
3. CITY, or its agent( s), shall, at any time during the progress of the Improvements, have free access thereto, and shall be allowed to examine the same and all material to be used therein. Ifthe Improvements or any part thereof are not completed in strict compliance with the standards set forth in Paragraph 1 above, CTTY may refuse to accept and may reject the defective Improvements and/ or materials therein.
4. SUBDIVIDER shall secure the services of skilled personnel necessary to construct the Improvements. CITY is not skilled in these matters and relies upon the skill of the SUBDNIDER to ensure that the construction of the Improvements is in the most skillful and durable manner.
5. CITY' S acceptance of the Improvements does not operate as a release of SUBDIVIDER from any guarantee hereunder.
6. SUBDIVIDER guarantees and warrants that the Improvements shall be constructed in compliance with the standards set forth in Paragraph 1 above, free from any defects in work or labor done, and from any defects in materials furnished. Further, SUBDIVIDER shall repair and maintain the Improvements in good condition and in accordance with CITY specifications for one 1) year after CITY' S acceptance of the Improvements. As required by this Agreement, prior to acceptance of the Improvements, SUBDIVIDER shall deposit with the City Engineer a Warranty Bond in the amount of$ 138, 089, equal to 10% of the estimated cost of the Improvements for the Village " CC" entire area ($ 1, 380, 890) as included in the Engineer' s estimate attached to this Agreement as Exhibit " D", to insure SUBDIVIDER' S repair and warranty of the Improvements in accordance with the terms of this Agreement. The Warranty Bond shall be released at the end of the one year guarantee period, provided there are no claims against it are then outstanding.
7. If SUBDIVIDER, in whole or in part, abandons the Improvements, or unnecessarily or unreasonably delays construction of the Improvements, fails to complete construction of the Improvements within the time specified in this Agreement, or fails to repair.
Subdivision Improvement Agreement ( River Islands Stage 2A, LLC) Tract 4ll5 Village" CC"
Replace or reconstruct any defects, as set forth in Paragraph 6 above, CITY may, but is not required to, proceed to complete and/or repair, replace, or reconstruct the Improvements, either by itself or by contract for such service, and CITY may cause to be forfeited such portion of any security deposited therein as is necessary to cover the costs of completion, repair, replacement, or reconstruction incurred by CITY.
Once action is taken by CTTY to complete, repair, replace and/ or reconstruct the Improvements, SUBDIVIDER shall be responsible for all costs incurred by CITY, even if SUBDIVIDER subsequently completes the work.
The CITY shall have recourse against SUBDIVIDER for any and all amounts necessary to complete the obligations of SUBDIVIDER in the event the security ( including but not limited to any Letter of Guarantee, Certificate of Deposit, cash, bond for performance, labor and materials and repair and maintenance, letter of credit or cash deposit) therefore is insufficient to pay such amounts. All administrative costs, including reason ble attorney' s fees pursuant to Government Code Section 66499. 4, incurred by the CITY, in addition to the costs of the improvements shall be a proper charge against the security and SUBDIVIDER. In the event it becomes necessary for CTTY to bring an action to compel performance of this Agreement or to recover costs of completing such improvements, SUBDIVIDER shall pay reasonable attorney' s fees, costs of suit and all other expenses of litigation incurred by CITY in connection therewith.
8. Because the Improvements are not entirely complete, the SUBDIVIDER is required to only post Performance or Labor & Materials bonds to guarantee the unfinished improvements associated with Tract 4ll5 as included and described in Exhibit " D" of this Agreement.
Performance and Labor& Material securities have been provided with the SIA for Tract 4021 that guarantee the unfinished improvements for Village " CC", which includes Tract 4115, in the amount shown in Table 1 below and therefore no additional security is needed for Tract 4115.
SUBDIVIDER shall also comply with CITY' S insurance requirements set forth on Exhibit " C" attached hereto and incorporated herein.
Table 1 — Bond Values
Unfinished Improvement Total: 1, 380, 890
Performance Bond ( Bond No. 0757340): 1, 380, 890 x 120°10 = $ 1, 657, 068 Labor & Materials Bond ( Bond No. 0757340) 1, 518, 979 x 50% _ $ 828, 534
9. Any alteration( s) made to the plans and specifications, which are a part of this Agreement, or any provision of this Agreement shall not operate to release any surety or sureties from liability on any bond or bonds attached hereto and made a part thereof. The above referenced sureties hereby consent to such alterations and waive the provisions of California Civil Code Section 2819.
10. Neither the CITY nor any of its officers, employees or agents shall be liable to SUBDIVIDER, and/ or SUBDIVIDER' S agents, contractors or subcontractors for any error or omission arising out of or in connection with any work to be performed under this Agreement.
Subdivision Improvement Agreement( River Islands Stage 2A, LLC) Tract 4115 Village " CC"
11. Neither the CITY nor any of its officers, employees, or agents, shall be liable to the SUBDIVIDER ar to any person, entity, or organization, for any injury or damage that may result to any person or property by or from any cause in, on, or about the subdivision of all or any part of the land covered by this Agreement.
12. SUBDIVIDER hereby agrees to, and shall hold CITY, its elective and appointive boards, commissions, officers, agents and employees ( collectively, " Indemnitees"), harmless from any liability for damage or claims which may arise from SUBDIVIDER andlor SUBDIVIDER' S contractors, subcontractors, agents, or employees' operations under this Agreement, whether such operations be by SUBDIVIDER or by any SUBDIVIDER contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for, SUBDIVIDER or any of SUBDIVIDER' S contractors or subcontractors. SUBDIVIDER shall, at its own cost and expense, defend any and all actions, suits, or legal proceedings or any type that may be brought or instituted against CITY and indemnities on any claim or demand, of any nature whatsoever, and pay or satisfy any judgment that may be rendered against CTTY and the Indemnitees in any such action, suit or legal proceedings, resulting from or alleged to have resulted from SUBDIVIDER' S performance or non- performance of his duties and obligations under this Agreement, or from the negligent act or omission of himself, his agents, contractors, representatives, servants or employees. The promises and Agreement to indemnify and hold harmless set forth in this section is not conditioned or dependent on whether or not any indemnity has prepared, supplied or approved any plan or specification in connection with this work or subdivision, whether or not any such indemnity has insurance or indemnification covering any of these matters. CITY does not, and shall not; waive any rights against SUBDIVIDER which it may have by reason of the aforesaid hold harmless agreement, because of the acceptance by CITY of any deposit with CITY by SUBDIVIDER. The aforesaid hold harmless agreement by SUBDIVIDER shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, by reason of any of the aforesaid operations referred to in this paragraph, regardless of whether or not CITY has prepared, supplied or approved of, plans and/ or specifications for the subdivision.
13. Neither SUBDIVIDER nor any of SUBDIVI:DER' S agents, contractors or subcontractors are, or shall be, considered to be agents of CITY in connection with the performance of SUBDIVIDER' S obligations under this Agreement.
14. Prior to acceptance of the Improvements by the City Council, the SUBDIVIDER shall be solely responsible for maintaining the quality of the Improvements, and maintaining safety at the project site. The SUBDIVIDER' S obligation to provide the Improvements shall not be satisfied until after the City Engineer has made a written determination that all obligations of the Agreement have been satisfied and all outstanding fees and charges have been paid, and the City Council has accepted the Improvements as complete. The CITY and SUBDIVIDER have farmed Community Facilities Districts to finance maintenance and improvements. The CITY expects to preserve the ability to use future special taxes of the CFD for• payment of the cost of acquisition of the Improvements, which may require that acceptance of improvements by CITY be subject to the provisions of an acquisition agreement to be entered into by the CITY and SUBDIVIDER providing that CITY expects to be paid or reimbursed acquisition costs through future CFD special taxes. SUBDIVIDER shall cooperate to facilitate such method of acquisition.
Subdivision Improvement Agreement ( River Islands Stage 2A, LLC) Tract 4115 Village " CC"
15. SUBDIVIDER shall pay service fees for the utility services from the time the Improvements are accepted by the CITY to the end of the fiscal year, or up to a one( 1) year period, whichever is needed to ensure an opportunity for the Improvements to be included in the next fiscal year annual assessment.
16. SUBDIVIDER shall be responsible to sweep streets within the subdivision every two weeks as directed by the City Engineer, on all streets where lots are occupied and all streets providing access to occupied lots until the Improvements are accepted by the CTTY.
17. SUBDIVIDER shall not assign this Agreement without the prior written consent of CITY.
If such consent is given, the terms of this Agreement shall apply to and bind the heirs, successors, executors, administrators and assignees of SUBDNIDER, and any heirs, successors, executors, administrators and assignees of the SUBDIVIDER and shall be jointly and severally liable hereunder.
18. The SUBDIVIDER shall, at the SUBDIVIDER' S expense, obtain and maintain all necessary permits and licenses for construction of the Improvements. Prior to the commencement of Improvement construction, the SUBDIVIDER shall obtain a City of Lathrop Business License.
The SUBDIVIDER shall comply with all local, state and federal laws, whether or not said laws are expressly stated in this Agreement.
19. This Agreement and any amendments hereto comprise the entire understanding and agreement between the parties regarding the improvements to be constructed and dedications for Tract 4115.
20. The following miscellaneous provisions are applicable to this Agreement:
a. Controlling Law. The parties agree that this Agreement shall be governed and construed by and in accordance with the laws of the State of California. b. Definitions. The definitions and terms are as defined in this Agreement. c. Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to perform its obligations under this Agreeme,nt, which directly results from an Act of God or an act of a superior governmental authority.
d. Headings. The paragraph headings are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement. e. Incorporation of Documents. All documents referred to herein and all documents which may, from time to time, be referred to in any duly executed amendment hereto are by such reference incorporated herein and shall be deemed to be part of this Agreement. f. Modification of Agreement. This Agreement shall not be modified or be binding upon the parties unless such modification is agreed to in writing and signed by the parties.
Subdivision Improvement Agreement( River Islands Stage 2A, LLC) Tract 4115 Village " CC"
g. Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the provisions of this Agreement not so affected shall remain in full force and effect.
h. Successors and Assigns. Except as otherwise expressly provided herein, the provisions of this Agreement shall inure to the benefit of, and shall apply to and bind, the successors and assigns of the parties.
i. Time of the Essence. Time is of the essence of this Agreement and each of its provisions.
In the calculation of time hereunder, the time in which an act is to be performed shall be computed by excluding the first Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday or any Day observed as a legal holiday by CITY, the time for performance shall be extended to the following Business Day. j. Venue. In the event either party brings that suit hereunder, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of San Joaquin.
ATTACHMENTS:
EXHIBIT A FINAL MAP - TRACT 4115
EXHIBIT B TRACT 4115 AND VILLAGE " CC" AREA
EXHIBIT C: CITY INSURANCE REQUIREMENTS
EXHIBIT D: UNFINISHED IMPROVEMENT COST ESTIMATE AND VILLAGE " CC"
IMPROVEMENTS COST ESTIMATE
Subdivision Improvement Agreement( River Islands Stage 2A, LLC) Tract 4ll5 Village " CC"
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this l lth day of April 2022, at Lathrop, California.
ATTEST: TERESA VARGAS CITY OF LATHROP, a
City Clerk of and for the City municipal corporation of the of Lathrop, State of California State of California
BY: BY:
Teresa Vargas Date Stephen 7. Salvatore Date
City Clerk City Manager
APPROVED AS TO FORM BY THE CITY OF LATHROP CITY ATTORNEY y
BY: 3 J- Zo ZZ
Salvador Navarrete Date
City Attorney
Subdivision Improvement Agreement ( River Islands Stage 2A, LLC) Tract 4115 Village " CC"
SUBDIVIDER
River Islands Stage 2A, LLC,
a Delaware limited liability company
BY:
Susan Dell' Osso
President
Subdivision Improvement Agreement ( River Islands Stage 2A, LLC) Tract 4115 Village " CC"
EXHIBIT " A"
FINAL MAP - TRACT 4115
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Subdivision Improvement Agreement ( River Islands Stage 2A, LLC) Tract 4115 Village " CC"
EXHIBIT " B"
TRACT 4115 VILLAGE " CC" AREA
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VILLAGE CC
VICNITY MAP
APRIL 2022
Subdivision Improvement Agreement ( River Islands Stage 2A, LLC) Tract 4ll5 Village " CC"
EXHIBIT " C"
CITY INSURANCE REQUIREMENTS
1. The Subdivider shall obtain commercial general liability insurance companies licensed to do business in the State of California with an A.M. Best Company rating Insurance rating of no less than A:VII which provides coverage for bodily injury, personal injury and property damage liability in the amount of at least$ 1, 000, 000 for each occurrence and$ 2, 000, 000 in the aggregate.
Said insurance coverage shall be evidenced by a certificate of insurance with policy endorsements, executed by an authorized official of the insurer( s). All parties to the Subdivision Improvement Agreement must be named insured on the policy. The policy endorsements to be attached to the certificate must provide all the following:
a. Name the City of Lathrop, its officers, City Council, boards and commissions, and members thereof, its employees and agents as additional insured as respects to any liability arising out of the activities of the named insured. A CG 2010 or CG 2026 endorsement form or the equivalent is the appropriate form.
b. State that " the insurance coverage afforded by this policy shall be primary insurance as respects to the City of Lathrop, its officers, employees and agents. Any insurance or self-insurance maintained by the City of Lathrop, its officers, employees, or agents shall be in excess of the insurance afforded to the named insured by this policy and shall not contribute to any loss.
c. Include a statement that, " the insurer will provide to the City at least thirty ( 30) days prior notice of cancellation or material change in coverage." The above language can be included on the additional insured endorsement form or on a separate endorsement form. d. The policy must contain a cross liability or severability of interest clause. e. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates.
DATE( MMIDDIYYYY)
A! zO CERTIFICATE OF LIABILITY INSURANCE 04/ OS/ 2022
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER( S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy( ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement( s).
PRODUCER NAMEACT MICFI@II@ S8f1CF12Z
Alliant Insurance Services, IIC. PHONE FAX
333 S Hope St Ste 3750 E- MAIL
Ext: A/ C No:
Los Angeles CA 90071 aooRess: Michelle. Sanchez alliant. com INSURER( S) AFFORDING COVERAGE NAIC#
License#: oC3sas INSURERA: UI11Y@CI S ecialt Insurance Com 12537 INSURED RIVEISL- 01 NSURERB:
River Islands Stage 2A, LLC
73 W. Stewart Road INSURERC:
Lathrop, CA 95330 INSURERD:
INSURER E:
INSURER F:
COVERAGES CERTIFICATE NUMBER: 1820238814 REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
7ypE OF INSURANCE
ADDL SUBR POLICY EFF POLICY EXP
LIMITS LTR N D WVD POLICYNUMBER MMIDD/ YYYY MMIDDIYYYY
A X COMMERCIALGENERALLIABILITY Y ATN2117764P 3/ 19/ 2021 3/ 19/ 2024 EACHOCCURRENCE 2, 000, 000 CLAIMS- MADE OCCUR PREM SES a occurence $ ____
MED EXP( Any one person) $
PERSONAL& ADV INJURY $ 1, 000, 000
GEN' L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2, 000, 000 POUCY ECT LOC PRODUCTS- COMP/ OP AGG $ 2, 000, 000
OTHER:
AUTOMOBILELIABILITY COMBINEDSINGLELIMIT
Ea accident
ANY AUTO BODILY INJURY( Per person) $
OWNED SCHEDULED BODILY INJURY( Per accident)
AUTOS ONLY AUTOS
HIRED NON- OWNED PROPERTY DAMAGE
AUTOS ONLY AUTOS ONLY Per accident
UMBRELLALIAB OCCUR EACHOCCURRENCE
EXCESS LIAB CLAIMS- MADE AGGREGATE
DED RETENTION$
WORKERS COMPENSATION PER OTHAND EMPLOYERS' LIABILITY Y N
STATUTE ER
ANYPROPRIETOR/ PARTNER/ EXECUTIVE E. L. EACH ACCIDENT
OFFICER/ MEMBEREXCWDED? N A
Mandatory in NH) E. L. DISEASE- EA EMPLOYEE $
If yes, describe under
DESCRIPTION OF OPERATIONS below E. L. DISEASE- POLICY LIMIT $ DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES ( ACORD 701, Additional Remarks Schedule, may be attached if more space is required) Re: FM 4115
City of Lathrop, its officers, City Councii, boards and commissions and members thereof, its employees and agents are included as Additional Insureds as respects to General Liability. General Liability shail be Primary and Non- Contributory with any other insurance in force for or which may be purchased by City of Lathrop, its officers, employees and agents.
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
City of Lathrop
390 Towne Centre Drive
Lathrop CA 95330
AUTHORIZEDREPRESENTATIVE
Y E
O 1988- 2015 ACORD CORPORATION. All rights reserved.
ACORD 25( 2016/ 03) The ACORD name and logo are registered marks of ACORD POLICY NUMBER: ATN217764P COMMERCIAL GENERAL LIABILITY
CG 20 10 04 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED - OWNERS, LESSEES OR
CONTRACTORS - SCHEDULED PERSON OR
ORGANIZATION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Person( s) Or
Or anization s Location s Of Covered O erations
City of Lathrop, its officers, City Council, boards As Required By Written Contract, Fully Executed and commissions and members thereof, its Prior To The Named Insured' s Work employees and agents
390 Towne Centre Drive
Lathrop, CA 95330
Information re uired to com lete this Schedule, if not shown above, will be shown in the Declarations.
A. Section II — Who Is An Insured is amended to B. With respect to the insurance afforded to these include as an additional insured the person( s) or additional insureds, the following additional exclusions organization( s) shown in the Schedule, but only with apply:
respect to liability for" bodily injury", " property damage" This insurance does not apply to " bodily injury" or or " personal and advertising injury" caused, in whole property damage" occurring after:
or in part, by: 1. All work, including materials, parts or equipment
1. Your acts or omissions; or
furnished in connection with such work, on the
2. The acts or omissions of those acting on your behalf; project( other than service, maintenance or repairs) to be performed by or on behalf of the additional
in the performance of your ongoing operations for insured( s) at the location of the covered operations the additional insured( s) at the location( s) has been completed; or designated above. 2. That portion of" your work" out of which the injury or damage arises has been put to its
However: intended use by any person or organization other
1. The insurance afforded to such additional insured only than another contractor or subcontractor engaged applies to the extent permitted by law; and in performing operations for a principal as a part of
2. If coverage provided to the additional insured is the same project. required by a contract or agreement, the insurance
afforded to such additional insured will not be broader than that which you are required by the contract or
agreement to provide for such additional insured.
CG 20 10 04 13 O Insurance Services Office, Inc., 2012 Page 1 of 2 C. With respect to the insurance afforded to 2. Available under the applicable Limits of these additional insureds, the following is added to Insurance shown in the Declarations; Section III— Limits Of Insurance: whichever is less.
If coverage provided to the additional insured is This endorsement shall not increase the applicable required by a contract or agreement, the most we Limits of Insurance shown in the Declarations. will pay on behalf of the additional insured is the
amount of insurance:
1. Required by the contract or agreement; or
Policy# ATN217764P
United Specialty Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
VEN 051 00 ( 02/ 20)
PRIMARY AND NON- CONTRIBUTING INSURANCE ENDORSEMENT
This endorsement modifies the Conditions provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
The following is added to SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS of the COMMERCIAL GENERAL LIABILITY COVERAGE PART, and supersedes any provision to the contrary:
Primary and Non- Contributory Insurance
Any coverage provided to an Additional Insured under this policy shall be excess over any other valid and collectible insurance available to such Additional Insured whether primary, excess, contingent or on any other basis unless:
a. ( 1) The Additional Insured is a Named Insured under such other insurance; and
2) A fully written contract fully executed prior to the Named Insured' s commencement of work for such Additional Insured for the specificproject that is the subject of the claim, " suit," or" occurrence" expressly requires that this insurance:
i) apply on a primary and non- contributory basis;
and
ii) would not seek contribution from any other insurance availableto the additional insured.
or
b. Prior to a loss, you request in writing and we agree in writing that this insurance shall apply on a primary and non- contributory basis.
Name Of Person s Or Or anization s
As Required By Written Contract, Fully Executed Prior To The Named Insured' s Work.
All other terms, conditions and exclusions under this policy are applicable to this Endorsement and remain unchanged.
VEN 051 00( 02/ 20) Page 1 of 1
Policy: ATN217764P
UNITED SPECIALTY INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
VEN 064 00 ( 01/ 15)
THIRD PARTY CANCELLATION NOTICE ENDORSEMENT
This endorsement modifies the Conditions provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
If we cancel this policy for any reason other than nonpayment of premium, we will mail notification to the persons or organizations shown in the schedule below ( according to the number of days listed below) once the Named Insured has been notified.
If we cancel this coverage for nonpayment of premium, we will mail a copy of such written notice of cancellation to the name and address below at least 10 days prior to the effective date of such cancellation.
Our failure to provide such advance notification will not extend the policy cancellation date nor negate cancellation of the policy.
SCHEDULE
Name and Address of Other Person/ Orqanization
City of Lathrop, its officers, City Council, Number of Days Notice boards and commissions and members thereof,
its employees and agents
390 Towne Centre Drive 30
Lathrop, CA 95330
All other terms, conditions and exclusions under this policy are applicable to this Endorsement and remain unchanged.
VEN 064 00( 01/ 15) Page 1 of 1
Subdivision Improvement Agreement ( River Islands Stage 2A, LLC) Tract 4115 Village " CC"
EXHIBIT " D"
UNFINISHED IMPROVEMENT COST ESTIMATE
AND VILLAGE " CC" — FULL IMPROVEMENT COST
ENGINEER' S BOND ESTIMATE January 27, 2020
COST TO COMPLETE Job No.: 25504- 09
RIVER ISLANDS- VILLAGE CC
VAN DAELE HOMES HIDEAWAY( PUBLIC IMPROVEMENTS)
CITY OF LATHROP, SAN JOAQUIN COUNTY, CALIFORNIA
Item Description Quantity Unit Unit Price Amount
COST TO COMPLETE( PUBLIC)
1 Landscape[ Offsite]( o% Completion) 1 LS $ 474, 150. 00 $ 474, 150. 00 2 Sanitary Sewer[ Onsite)( 0% Comp/ etion) 1 LS $ 238, 180. 00 $ 238, 180. 00 3 Water Supply[ Onsite]( 0% Completion) 1 LS $ 346, 910. 00 $ 346, 910. 00 4 Joint Trench[ Onsite]( 0% Completion) 1 LS $ 308, 000. 00 $ 308, 000. 00 5 Signing& Striping[ Offsite]( 0% Completion) 1 LS $ 13, 650. 00 $ 13, 650. 00 TOTAL COST TO COMPLETE( PUBLIC) $ 1, 380, 890. 00
T: 25504- River Islands\ Phase 09- Van Daele Homes Hideaway\ Word& Excel\ Cost Estimate\ Bond Estimate\ Hideaway Bond Es imates\ Improvements ENGINE{ Z7NG
DRAFT ENGINEER' S OPINION OF PROBABLE COST 1/ 27/ 2020
VAN DAELE HOMES HIDEAWAY( PUBLIC IMPROVEMENTS) Job No.: 25504- 09
RIVER ISLANDS- VILLAGE CC
CITY OF LATHROP, SAN JOAQUIN COUNTY, CALIFORNIA
Item Description Quantity Unit Unit Price Amount
LANDSCAPE
Sidwell Drive( River Islands Pkwy to Garden Farms Ave) 5, 410 SF $ 8. 00 $ 43, 280. 00 2 Oberlin Avenue( River Islands Pkwy to Garden Farms Ave) 13, 190 SF $ 8. 00 $ 105, 520. 00 3 Garden Farms Avenue( south side of Bosch Ave to Oberlin Ave) 12, 050 SF $ 8. 00 $ 96, 400.00 4 Swale( Sidwell Dr to Oberlin Ave) 45, 790 SF $ 5. 00 $ 228, 950.00 Subtotal Landscape $ 474, 150. 00
SANITARY SEWER
5 S" PVC 2, 310 LF $ 28. 00 $ 64, 680. 00
6 Manholes 17 EA $ 4, 000. 00 $ 68, 000. 00
7 Sanitary Sewer Services2 41 EA $ 2, 500. 00 $ 102, 500. 00 8 Connect to Existing 1 EA $ 3, 000. 00 $ 3, 000. 00
Subtotal Sanitary Sewer $ 238, 180. 00
POTABLE WATER
9 8" PVC 3, 080 LF $ 32. 00 $ 98, 560. 00
10 8" GV 27 EA $ 1, 550. 00 $ 41, 850. 00
11 Blow- Off 5 EA $ 4, 000. 00 $ 20, 000. 00
12 ARV 1 EA $ 2, 500. 00 $ 2, 500. 00
13 Fire Hydrants 3 EA $ 4, 000. 00 $ 12, 000. 00
4 Water Services3 41 EA $ 4, 000. 00 $ 164, 000. 00
15 Connect to Existing 2 EA $ 4, 000. 00 $ 8, 000. 00
Subtotal Potable Water $ 346, 910. 00
JOINT TRENCH
16 Joint Trench per POD 40 EA $ 7, 700. 00 $ 308, 000. 00 Subtotal Joint Trench $ 308, 000. 00
SIGNING 8 STRIPING
1 Sidwell Drive( River Islands Pkwy to Garden Farms Ave) 490 LF $ 5. 00 $ 2, 450. 00 2 Oberlin Avenue( River Islands Pkwy to Garden Farms Ave) 1, 630 LF $ 5. 00 $ 8, 150. 00 3 Garden Farms Avenue( south side of Bosch Ave to Oberlin Ave) 610 LF $ 5. 00 $ 3, 050. 00 Subtotal Landscape $ 13, 650.00
TOTAL CONSTRUCTION COST $ 1, 380, 890. 00
Notes:
1) Unit prices are based on estimated currenl construction costs and no provision for inflation is included. 2) Unit price assumed to include one 6" sanitary sewer lateral, four sewer cleanouts, and three 4" sanitary sewer laterals to each pod. 3) Unit price assumed to include one 2" water service and one water manifold with three t" water meters and one t- 1/ 2" fre service for each pod.
BzGO ST lER3DGE E^ ALL ROAD. StJiTE 33 i, PLEA. ANTON. CA 34558 W P 92b.223.8340 : 209 5712466 T'. 25504- R rver Islands\ Phase 09- Van Daele Homes Hldeaway\ Word& Excel\ Cos Estimate\ Bontl Estimate 25504- Van Daele Homes Hltleaway Cost Es ima e( Public Improvements)\ Sheeti
ATTACHMENT E
JOINT ESCROW INSTRUCTIONS
RECORDATION OF FINAL MAPS
RIVER ISLANDS AT LATHROP)
April 11, 2022
Via Email and Hand Delivery
Old Republic Title Company
1215 W. Center Street, Suite 103
Manteca, CA 95337
Attn: Lori Richardson
Re: Recordation of Final Map 4115; Escrow No. 1214021507 Dear Lori:
This letter constitutes the joint escrow instructions (" Escrow Instructions") of River Islands Stage 2A, LLC, a Delaware limited liability company (" RIS2A") and the City of Lathrop (" City') in connection with the above- referenced escrow (" Escrov'). The Escrow was opened in connection with recordation of the above- referenced final map (" Final Map"). Recordation of the Final Map is subject to the conditions set forth below. The transactions described in these Escrow Instructions are referred to as the " Transaction." Old Republic Title Company is referred to as " you" or" ORTC." A. Date for Closinqs
The Final Map will be recorded at the time designated by RIS2A as set forth below. The Final Map can only be recorded after the City has approved the map in writing. The closing date for the Transaction is intended to occur by December 30, 2022, at the time designated in writing by RIS2A, subject to satisfaction of the conditions set forth below ( each a Closingl'). If the Final Map has not been recorded by June 30, 2022, ORTC will return the Final Map to the City.
B. Documents to be Delivered and Recordation Documents
In connection with the Transaction, you have in your possession or will receive the following documents from City and RIS2A for recordation in the Official Records of San Joaquin County, California (" Official Records").
B. 1. One original Final Map for Tract 4115, executed and acknowledged by the City ( provided to title by City).
B. 2. A fully executed and acknowledged Amendment to Notice of Special Tax Lien for the City of Lathrop Community Facilities District No. 2013- 1 ( River Islands Public Services and Facilities) Annexation No. 26 ( provided to title by City).
B. 3. A fully executed and acknowledged Amendment to Notice of Special Tax Lien for Island Reclamation District 2062 Community Facilities District No. 2013- 1 ( Levee and Lake Maintenance Services) ( provided to title by RIS2A).
B. 4. A fully executed and acknowledged Amendment to Notice of Special Tax Lien for River Islands Public Financing Authority Community Facilities District No. 2013- 1 ( River Islands Public Services) ( provided to title by RIS2A).
B. 5. A fully executed and acknowledged Amendment to Notice of Special Tax Lien for the River Islands Public Financing Authority Community Facilities District No. 2016- 1 ( River Islands Supplemental) ( provided to title by RIS2A). 1 JOINT ESCROW INSTRUCTIONS
RECORDATION OF FINAL MAPS
RIVER ISLANDS AT LATHROP)
The documents listed in Items B. 1, B. 2, B. 3, B. 4 and B. 5 above are referred to as the Recordation Documents." The Recordation Documents shall be recorded in the order referred to above. The date on which the Recordation Documents are recorded in the Official Records is the Recordation Date.
Prior to recording the Recordation Documents, please confirm that you have received copies or originals of the following documents: ( i) Unanimous Approval of Annexation to a Community Facilities District and Related Matters, City of Lathrop Community Facilities District No. 2013- 1 ( River Islands Public Services and Facilities); ( ii) Consent to, and Ballot in favor of, Annexation of Real Property to the River Islands Public Financing Authority Community Facilities District No. 2013- 1 ( River Islands Public Services); ( iii) Consent to, and Ballot in favor of, Annexation of Real Property to Island Reclamation District No. 2062 Community Facilities District No. 2013- 1 ( Levee and Lake Maintenance); and ( iv) Consent to, and Ballot in favor of, Annexation of Real Property to the River Islands Public Financing Authority Community Facilities District No. 2016- 1 ( River Islands Supplemental). The original City of Lathrop Unanimous Approval must be delivered to the City of Lathrop. The original Consents and Ballots for River Islands Public Financing Authority CFD Nos. 2013- 1 and 2016- 1 and Island Reclamation District No. 2013- 1 must be delivered to Jeanne Zolezzi at Herum\ Crabtree\ Suntag, 5757 Pacific Ave., Suite 222, Stockton, CA 95207. Copies should be sent via email to Cari James ( clames@ci. lathrop. ca. us), Cindy Yan at Goodwin Consulting Group, cindy@qoodwinconsultinq qroup. net, Susan Dell' Osso sdellosso@riverislands. com) and Debbie Belmar ( dbelmarC riverislands. com) together with conformed copies of the amendments to notices of special tax that are recorded as part of the Recordation Documents.
C. Funds and Settlement Statement
You also have received, or will receive from RIS2A, prior to the recordation of the Recordation Documents, in immediately available funds, the following amounts, in accordance with the settlement statement prepared by you and approved in writing by both RIS2A and City ("Settlement Statemenf'): recordation costs, escrow fees and other amounts as set forth in the Settlement Statement. Such costs, fees and other amounts are the sole responsibility of RIS2A.
Funds to be wire transferred directly to the entity set forth below, immediately upon recordation of the Final Map, in accordance with the wire transfer instructions for each entity are as follows: The amount of $ 32,839.38, payable to the City pursuant to that certain Agreement to Settle Litigation Regarding River Islands at Lathrop as amended " Sierra Club Agreemenf'), constituting the amount of $ 3, 501. 00 multiplied by 9. 38 acres ( or portion thereof) included in the Final Map, is to be transferred to the City upon recordation of the Final Map. The City' s wire instructions are set forth below.
The amounts set forth in Section C are referred to as the " C/osing Funds." D. Closinq Requirements
When the following has occurred, you are authorized to close the Escrow at the time( s) and in accordance with the process set forth below:
D. 1. You have delivered copies of your Settlement Statement by email transmission to: ( a) Susan Dell' Osso ( sdellosso@riverslands. com); ( b) Debbie Belmar dbelmar@riverislands. com); ( c) Brad Taylor ( btaylor@ci. lathrop. ca. us); ( d) Salvador 2 JOINT ESCROW INSTRUCTIONS
RECORDATION OF FINAL MAPS
RIVER ISLANDS AT LATHROP)
Navarrete snavarrete@ci. lathrop. ca. us; e) Gienn Gebhardt qqebhardt@ci. lathrop. ca. us), ( f) Sandra Lewis ( slewis@ci. lathrop. ca. us), and have confirmation ( by telephone or email) from Susan Dell' Osso and Glenn Gebhardt or Brad Taylor that the Settlement Statement is accurate and acceptable; D. 2. You have not received any instructions contrary to these Escrow Instructions;
D. 3. The Recordation Documents and all other documents described herein as being held by you or delivered to you have been received by you and have been fully executed and, where applicable, acknowledged, and you have attached all legal descriptions or have confirmed that all exhibits and legal descriptions are attached; D. 4 You are prepared to record the Recordation Documents, as designated, release funds in accordance with the Settlement Statement and complete the Transaction in compliance with these Escrow Instructions; D. 5. You have delivered a copy of these instructions, executed by an authorized signatory of ORTC with authority to bind ORTC, and initialed all pages, by email transmission ( with original hard copy to follow by U. S. Mail) to Debbie Belmar and Glenn Gebhardt at the email addresses set forth above; and D. 6. You have received confirmation ( by email or other writing) from Susan Dell' Osso and Stephen Salvatore or Glenn Gebhardt to record the Recordation Documents and complete the Transaction.
E. Closinq Process and Priorities
When you have fully satisfied all of the closing requirements set forth in Section D, then you are authorized and instructed to do the following in the chronological order given:
E. 1. Date the Recordation Documents to be recorded;
E. 2. Record the Recordation Documents in the Official Records; E. 3. Pay the costs associated with the Transaction;
3 JOINT ESCROW INSTRUCTIONS
RECORDATION OF FINAL MAPS
RIVER ISLANDS AT LATHROP)
E. 4. Refund any funds delivered to you by RIS2A that are not disbursed at the time of the final Closing pursuant to these Escrow Instructions to the following entity and address:
River Islands Stage 2A, LLC
73 W. Stewart Road
Lathrop, CA 95330
Attn: Susan Dell' Osso
E. 5. Notify Susan Dell' Osso ( sdellosso@riverslands. com), Debbie Belmar( dbelmar@riverislands. com), Glenn Gebhardt ( qqebhardt@ci. lathrop. ca. us), Brad Taylor ( btaylor@ci. lathrop. ca. us), Sandra Lewis ( slewis@ci. lathrop. ca. us), Teresa Vargas tvarqas@ci. lathrop. ca. us), Sarah Pimentel ( spimentel@ci. lathrop. ca. us), and Jose Molina ( JMolina@sjqov. orq) of the completion of the Transaction; E. 6. Within five ( 5) business days after each Recordation Date, deliver by overnight delivery via recognized, national, overnight delivery carrier to: ( 1) Susan Dell' Osso, River Islands Stage 2A, LLC, 73 W. Stewart Road, Lathrop, CA 95330; and 2) Mr. Glenn Gebhardt, City Engineer, City Attorney, City of Lathrop, 390 Towne Centre Drive, Lathrop, CA 95330:
A) a certified copy of the Recordation Documents, showing all recording information of the Recordation Documents; and B) a certified copy of the final Settlement Statement.
F. Additionallnstructions
When assembling the final documents, signature pages from all parties shall be inserted into each respective final document in creating fully executed counterparts.
Please acknowledge receipt of these instructions and your agreement to act as Escrow agent in connection with this Transaction in accordance with these Escrow Instructions, by executing and dating a copy of these Escrow Instructions where indicated below, initialing all pages and returning it to both of the undersigned.
The Escrow Instructions may be modified only in a writing signed by both of the undersigned.
Very truly yours,
Stephen J. Salvatore Date Susan Dell' Osso Date
City Manager President
City of Lathrop River Islands Stage 2A, LLC
4 JOINT ESCROW INSTRUCTIONS
RECORDATION OF FINAL MAPS
RIVER ISLANDS AT LATHROP)
ESCROW INSTRUCTIONS
ACKNOWLEDGEMENT AND AGREEMENT:
Receipt of the foregoing Escrow Instructions from RIS2A and the City is hereby acknowledged. The undersigned agrees, for itself, and on behalf of ORTC, to proceed in strict accordance with these Escrow Instructions. The undersigned represents and warrants to RIS2A and the City that the undersigned is authorized to execute this Acknowledgement and Agreement, for itself, and on behalf of ORTC.
Old Republic Title Company
By:
its:
Date:
5 Quint& T1 inunig LLP 8/ 22/ 16
RECORDING REQUESTED BY AND
AFTER RECORDATION RETURN TO:
City Clerk
City of Lathrop
390 Towne Centre Drive
Lathrop, CA 95330
Recorded for the benefit of the City of Lathrop
pursuant to Government Code Section 27383
TWENTY- SIXTH AMENDMENT TO NOTICE OF SPECIAL TAX LIEN
City of_Lathrop
Community Facilities District No. 2013- 1
River Islands Public Services and Facilities)
Annexation No. 26
Pursuant to the requirements of Section 3117.5 of the Streets and Highways Code of California and the Mello-Roos Community Facilities Act of 1982, as amended, Section 53311, et. seq., of the California Government Code ( the " Act"), the undersigned City Clerk of the City of Lathrop( the" City"), County of San Joaquin, State of California, hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City on the property described in Exhibit A hereto. The special tax secured by this lien is authorized to be levied for the purpose of paying principal and interest on bonds, the proceeds of which are being used to finance the acquisition and construction of all or a portion of the public facilities authorized to be funded by the City of Lathrop Community Facilities District No. 2013- 1 ( River Islands Public Services and Facilities) ( the " CFD"), and to pay costs of the public services and facilities authorized to be funded by the CFD, both as described in Exhibit A to the Notice of Special Tax Lien heretofore recorded in the Office of the County Recorder for the County of San Joaquin, State of California ( the" County Recorder") on November 18, 2013 as Document No. 2013- 143754 ( the Original Notice"), and said special tax is to be levied according to the Rate and Method of Apportionment of Special Tax set forth in Exhibit B to the Notice of Special Tax Lien, to which recorded Notice of Special Tax Lien reference is hereby made and the provisions of which are hereby incorporated herein in full by this reference. An Amended Notice of Special Tax Lien reflecting the Amended Rate and Method of Apportionment of Special Tax was subsequently recorded at the County Recorder on October 23, 2015 as Document No. 2015- 127760 ( the Amended Notice').
This Twenty- Sixth Amendment to Notice of Special Tax Lien amends the Notice of Special Tax Lien to add to the territory within the City of Lathrop Community Facilities District No. 2013- 1 ( River Islands Public Services and Facilities) certain real property identified in Exhibit A hereto the " Property") and shown within the future annexation area on the boundary map of the community facilities district recorded on June 1, 2013, in Book 6 of Maps of Assessment and Community Facilities Districts at Page 42 ( Document No. 2013- 13663, in the Office of the 18016. 00: RIPFA: J 14223
County Recorder, which map is the final boundary map of the community facilities district. The Property is being arulexed into Tax Zone 1 of the community facilities district, as described in the Amended and Restated Rate and Method of Apportionment of Special Tax attached as Exhibit A to the Amended Notice, with the maximum special tax rates identified in Exhibit B hereto.
The assessor' s tax parcel( s) numbers of all parcels or any portion thereof which are included in this Twenty-Sixth Amendment to Notice of Special Tax Lien, together with the name( s) of the owner( s) thereof, as they appear on the latest secured assessment roll as of the date of recording hereof or as are otherwise known to the Authority are as set forth in Exhibit A hereto which is by this reference made a part hereof.
For further information concerning the current and estimated future tax liability of owners or purchasers of real property or interests therein subject to the special tax lien, interested persons should contact the Finance Director, City of Lathrop, 390 Towne Centre Drive, Lathrop, California 95330; Telephone: ( 209) 941- 7327.
Dated: 2022.
By:
City Clerk,
City of Lathrop
2-
EXHIBIT A
CITY OF LATHROP
COMMUNITY FACILITIES DISTRICT NO. 2013- 1
RIVER ISLANDS PUBLIC SERVICES AND FACILITIES)
ANNEXATION NO. 26
ASSESSOR' S PARCEL NUMBER( S) AND OWNER( S) OF LAND
WITHIN ANNEXATION NO. 26 TO CITY OF LATHROP
COMMUNIT' Y FACILITIES DISTRICT NO. 2013- 1
RIVER ISLANDS PUBLIC SERVICES AND FACILITIES)
San Joaquin County
Name( s) of Property Owner( s) Assessor' s Parcel No.
RIVER ISLANDS STAGE 2A, LLC 210- 570- 01
73 W. STEWART RD.,
LATHROP, CA 95330
A- 1
EXHIBIT B
CITY OF LATHROP
COMMUNIT` Y FACILITIES DISTRICT NO. 2013- 1
RIVER ISLANDS PUBLIC SERVICES AND FACILITIES)
ANNEXATION NO. 26
MAXIMUM SERVICES SPECIAL TAX FOR ZONE 1 OF THE CFD
The table below identifies the Maximum Services Special Tax for Developed Property within Tax Zone 1, both before and after the Trigger Event:
Maximum Services Maximum Services
Special Tax in Tax Special Tax in Tax
Zone 1 Prior to the Zone 1 After the
Trigger Event Trigger Event
Fiscal Year 2013- ( Fiscal Year 2013-
T e of Pro er Lot Size 14)* 14)*
Residential Propert
Single Family Detached Property Greater than 7, 000 SqFt $ 328. 74 per SFD Lot $ 155. 91 per SFD Lot Single Family Detached Property 5, 801 to 7, 000 SqFt $ 265. 42 per SFD Lot $ 125. 88 per SFD Lot Single Family Detached Property 4, 801 to 5, 800 SqFt $ 243. 51 per SFD Lot $ 115. 49 per SFD Lot Single Family Detached Property 4, 000 to 4, 800 SqFt $ 206. 98 per SFD Lot $ 98. 16 per SFD Lot Single Family Detached Property Less Than 4, 000 SqFt $ 192. 37 per SFD Lot $ 91. 23 per SFD Lot Single Family Attached Property Not Applicable 0. 00 per Unit 0. 00 per Unit Multi- Famil Pro ert Not A licable 0. 00 er Unit 0. 00 er Unit
0. 00 per Non- 0. 00 per NonNon- Residential Property Not Applicable Residential Square Residential Square Foot Foot
Ofi July 1, 2014, and on each july 1 thereafter, all figures shown in the tatile above shall be increased tiy the Escalation Factor.
B- 1
MAXIMUM FACILITIES SPECIAL TAX FOR ZONE 1 OF THE CFD
The table below identifies the Maximum Facilities Special Tax for Developed Property within Tax Zone 1, both before and after the Trigger Event:
Maximum Maximum
Facilities Special Facilities Special
Tax in Tax Zone 1 Tax in Tax Zone 1
Prior to the Trigger After the Trigger
Event( Fiscal Year Event( Fiscal Year
T e of Pro er Lot Size 2013- 14)* 2013- 14)*
Residential Propert
Single Family Detached Property Greater than 7, 000 SqFt $ 0. 00 per SFD Lot $ 172. 83 per SFD Lot Single Family Detached Property 5, 801 to 7, 000 SqFt $ 0. 00 per SFD Lot $ 139. 54 per SFD Lot Single Family Detached Property 4, 801 to 5, 800 SqFt $ 0. 00 per SFD Lot $ 128. 02 per SFD Lot Single Family Detached Property 4, 000 to 4, 800 SqFt $ 0. 00 per SFD Lot $ 108. 82 per SFD Lot Single Family Detached Property Less Than 4, 000 SqFt $ 0. 00 per SFD Lot $ 101. 14 per SFD Lot Single Family Attached Property Not Applicable 0. 00 per Unit 0. 00 per Unit Multi- Famil Pro ert Not A licable 0. 00 er Unit 0. 00 er Unit
0. 00 per Non- 0. 00 per NonNon- Residential Property Not Applicable Residential Square Residential Square Foot Foot
On July 1, 2014, and on each July 1 thereafter until the first Fiscal Year after the Trigger Event, allfigures shown in the tatile a ove shall be increased by the Escalation Factor. On July 1 of the first Fiscal Year after the Trigger Event, ancl on each July 1 thereafter, the Maximum Facilities Special Taxes shall increase by two percent( 2%) of the amount in effect in the prior Fiscal Year.
B- 2
Quint& Thiininig LLP 2/ 13/ 16
CONSENT TO, AND BALLOT IN FAVOR OF, ANNEXATION OF REAL PROPERTY
TO THE RIVER ISLANDS PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 2016- 1 ( RIVER ISLANDS SUPPLEMENTAL) To: Board of Directors of the River Islands
Public Financing Authority, in its capacity
as the legislative body for the River Islands
Public Financing Authority Community
Facilities District No. 2016- 1 ( River Islands
Supplemental)
The undersigned hereby states and certifies, under penalty of perjury, as follows:
L The undersigned is the owner( the" Owner"), or the legally authorized representative of the Owner, of fee title to the real property identified by San Joaquin County Assessor' s parcel number( s) listed below ( the " Property"), and possesses all legal authority necessary to execute this consent to, and ballot in favor of( the " Consent and Ballot"), the annexation of the Property to the River Islands Public Financing Authority Community Facilities District No. 2016- 1 ( River Islands Supplemental) ( the" CFD").
2. The Owner understands that the Board of Directors of the River Islands Public Financing Authority ( the " Board") has conducted proceeding pursuant to the Mello-Roos Community Facilities Act of 1982, as amended ( the " Law") to form the CFD to finance various facilities ( the " Facilities") described in Exhibit A hereto. The Owner also understands that the proceedings for the formation of the CFD authorized the Board to levy an annual special tax (the Special Tax") on property in the CFD as specified in the Amended Rate and Method of Apportionment of Special Tax ( the" Rate and Method") for the CFD, a copy of which is attached hereto as Exhibit B, and authorized the annexation of property to the CFD, without additional public hearings, upon approval of the fee title owner of the property to be annexed as permitted by Section 53339.7(a) of the Law.
The Owner has been advised that a Notice of Special Tax Lien was recorded against the real property initially included within the boundaries of the CFD in the Office of the San Joaquin County Recorder ( the " County Recorder') on September 19, 2016 as Document No. 2016- 112901 the" Original Notice"), and a First Amendment to Notice of Special Tax Lien was recorded in the Office of the County Recorder on February 16, 2017, as Document No. 2017-020077.
3. The Owner hereby irrevocably consents to, approves, and votes ( for purposes of Article XIIIA of the California Constitution) in favor of the annexation of the Property to Tax Zone 3 of the CFD( as such Tax Zone is described in the Rate and Method, and as the Maximum Special Tax rates for such Zone 3 are set forth in Exhibit C hereto), and irrevocably consents to, approves and votes in favor of the annual levy of the Special Tax on the Property pursuant to the Rate and Method to finance the Facilities and for the other authorized purposes of the CFD. The Owner acknowledges that the Secretary of the River Islands Public Financing Authority will record, or cause to be recorded, against the Property in the Office of the County Recorder an amendment to 18016. 17: J14447
the Original Notice as required by Section 3117.5 of the California Streets and Highways Code, which will impose a continuing lien on the Property to secure each levy of the Special Tax, and that under the Law said lien ( a) will be coequal with the lien for ad valorem real property taxes levied by the County of San Joaquin on the Property, and ( b) will be senior to any lien of any mortgage on the Property whether such mortgage lien was recorded prior to or after the recordation of the amendment to the Original Notice.
4. The Owner hereby irrevocably waives any right the Owner may otherwise have to protest or challenge the validity of the proceedings of the Board to form the CFD and to authorize the annexation of any property ( including the Property) to the CFD, and any necessity, requirement or right for further public hearings or any election pertaining to the annexation of the Property to the CFD or the levy of the Special Tax on the Property.
5. The Owner hereby agrees to provide written notice of the annexation of the Property to the CFD, and of the authority of the Board to levy the Special Tax on the Property pursuant to the Rate and Method, to any subsequent purchaser of the Property to the extent required by applicable law.
The Property subject to this Consent and The full legal name of the fee title Owner of Ballot, and to be annexed to the CFD, the Property is:
consist of the following San Joaquin County
Assessor' s Parcel( s): River Islands Stage 2A, LLC
See Exhibit D
The foregoing Consent and Ballot is hereUy executed this day of 2022, in California.
By:
signature)
Susan Dell' Osso
type naine of person executing
Consent and Ballot)
Its: President
insert legal capacity of person
executing Consent and Ballot)
2-
EXHIBIT A
RIVER ISLANDS PUSLIC FINANCING AUTHORITY
COMMUNIT' Y FACILITIES DISTRICT NO. 2016- 1
RIVER ISLANDS SUPPLEMENTAL)
DESCRIPTION OF FACILITIES AUTHORIZED TO BE FUNDED BY THE DISTRICT The following generally described public infrastructure and related improvements within, in the vicinity or otherwise incident to the development of the area generally known as River Islands at Lathrop:
Lake improvements, discharge facilities and intake facilities, including grading, pumps, shore improvements, aeration facilities, CDS units, pipes and other necessary infrastructure required to provide storm water, flood retention and recreational facilities.
Bio Retention Basins and BMP improvements, including planting, irrigation and other improvements necessary for storm water storage and cleansing.
Roadway improvements, including grading, fill, pavement section, joint trench, water, sewer, reclaimed water and other utility improvements necessary for or incident to road construction. Also including landscaping, street lights and signage, monuments and traffic signals.
Bridge improvements, including design, construction, utility connections, roadway approaches and other incidental improvements required for construction of bridges.
Water system infrastructure, including tanks, pump stations, distribution lines and other improvements necessary for delivery of potable or reclaimed water.
Sewer system infrastructure and improvements, including treatment facilities, sanitary sewer collection lines and force mains, effluent holding and storage, spray fields, pump stations, lift stations, and other improvements necessary for delivery and treatment of sanitary sewer service.
Public parks, as well as landscaping and recreational features along rivers, lakes, within parks and along and including pathways and other public areas.
Electrical system improvements, including offsite improvements, overhead facilities, substations, relocation and removal of electrical poles, undergrounding of service facilities and associated improvements to service the development.
Natural gas facilities upgrades and extensions, including pipeline extension and gas transmission regulator stations.
A- 1
Telecommunications facilities, including fiber optic cable on and off site and other required infrastructure.
Grading for and construction of levees.
Public safety facilities, including but not limited to fire stations and related appurtenances, also including related site improvements, plus related equipment with a useful life of five years or more.
Elementary schools, middle schools and high schools and related appurtenances, including sports fields, parking and other customary amenities.
Environmental mitigation and related appurtenances related to the facilities and improvements eligible to be funded by the District.
All or a portion of any amount necessary to eliminate any fixed special assessment liens, or to pay, repay, or defease any obligation to pay or any indebtedness secured by any tax, fee, charge, or assessment levied within the area of the District and any property annexed thereto or to pay debt service on any such indebtedness.
The foregoing improvements may include the acquisition of right of way and land, the cost of design, engineering and planning, the costs of any environmental review or traffic studies, survey or other reports, landscaping and irrigation, soils testing, soil preparation including deep dynamic compaction, dewatering, permits, plan check and inspection fees, other public fees, insurance, legal and related overhead costs, coordination and supervision and any other costs or appurtenances related to any of the foregoing.
OTHER
The District may also finance any of the following:
1. Bond related expenses, including underwriter' s discount, reserve fund, capitalized interest, structuring agent, bond, disclosure and underwriter' s counsel and all other incidental expenses.
2. Adminishative fees of the Authority and the Bond trustee or fiscal agent related to the District and the Bonds.
3. Reimbursement of costs related to the formation of the District advanced by the Authority or any landowner or developer within the District, as well as reimbursement of any costs advanced by the Authority or any landowner or developer within the District, for facilities, fees or other purposes or costs of the District.
A- 2
EXHIBIT B
RIVER ISLANDS PUBLIC FINANCING AUTHORITY
COMMUNIT' Y FACILITIES DISTRICT NO. 2016- 1
RIVER ISLANDS SUPPLEMENTAL)
AMENDED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX A Special Tax applicable to each Assessor' s Parcel in the River Islands Public Financing Authority Community Facilities District No. 2016- 1 ( River Islands Supplemental) shall be levied and collected according to the tax liability determined by the Board of Directors or its designee, through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in CFD No. 2016- 1, unless exempted by law or by the provisions of Section F below, shall be taxed for the purposes, to the extent, and in the manner herein provided, including property subsequently annexed into the CFD.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
Accessory UniY' means a second residential unit of limited size ( e.g., granny cottage, second unit) that shares a Parcel with a single-family detached 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 or other parcel map recorded with the County.
Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, commencing with Section 53311), Division 2 of Title 5 of the California Government Code.
Adrninistrative Expenses" means any or all of the following: the fees and expenses of any fiscal agent or trustee ( including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the Authority in carrying out its duties with respect to CFD No. 2016- 1 and the Bonds, including, but not limited to, levying and collecting the Special Tax, the fees and expenses of legal counsel, charges levied by the County Auditor' s Office, Tax Collector' s Office, and/ or Treasurer' s Office, costs related to annexing property into the CFD, costs related to property owner inquiries regarding the Special Tax, amounts needed to pay rebate to the federal government with respect to the Bonds, costs associated with complying with any continuing disclosure requirements for the Bonds and the Special Tax, and all other costs and expenses of the Authority, Lathrop Irrigation District, and Island Reclamation District No. 2062 in any way related to the establishment or administration of the CFD.
Adrninistrator" means the person or firm designated by the Authority to administer the Special Tax according to the Amended RMA.
Amended RMA" means this Amended Rate and Method of Apportionment of Special Tax.
B- 1
Assessor' s Parcel" or " Parcel" means a lot or parcel shown on an Assessor' s Parcel Map with an assigned Assessor' s Parcel number.
Assessor' s Parcel Map" means an official map of the County Assessor designating parcels by Assessor' s Parcel number.
Association Property" means any property within the CFD that is owned by a homeowners association or property owners association, excluding Association Property under the pad or footprint of a Unit.
Authority' means the River Islands Public Financing Authority.
Authorized Facilities" means those public facilities authorized to be funded by the CFD as set forth in the CFD formation proceedings.
Board of Directors" or " Board" means the Board of Directors of the River Islands Public Financing Authority.
Bonds" means bonds or other debt( as defined in the Act), whether in one or more series, issued, insured or assumed by CFD No. 2016-1, including debt issued by agencies other than the Authority( as referenced in Section 53313. 5( g) of the Act), to pay for public infrastructure and/ or improvements that will serve property included within, or intended to be annexed into, the CFD.
Capitalized Interest" means funds in any capitalized interest account available to pay debt service on Bonds.
CFD" or " CFD No. 2016- 1" means the River Islands Public Financing Authority Community Facilities District No. 2016- 1 ( River Islands Supplemental).
CFD Formation" means the date on which the Resolution of Formation to form CFD No. 2016- 1 was adopted by the Board of Directors.
City" means the City of Lathrop.
City Council" means the City Council of the City of Lathrop.
County" means the County of San Joaquin.
Developed Property' means, in any Fiscal Year, all Taxable Property in CFD No. 2016- 1 for which a building permit for new construction was issued by the City on or prior to June 30 of the preceding Fiscal Year.
Excess Public Property" means the acres of Public Property that exceeds the acreage exempted in Section F below. In any Fiscal Year in which a Special Tax must be levied on Excess Public Property pursuant to Step 4 in Section D below, Excess Public Property shall be those Assessor' s B- 2
Parcel( s) that most recently became Public Property based on the dates on which Final Maps recorded creating such Public Property.
Final Map" means a final map, or portion thereof, recorded by the County pursuant to the Subdivision Map Act( California Government Code Section 66410 et seq.) that creates individual lots on which building permits for new construcdon may be issued without further subdivision and for which no further subdivision is anticipated pursuant to a Tentative Map approved for the property or, if no Tentative Map has been approved, pursuant to a then current specific plan or other land use plan for the property.
First Transfer Date" means for a Parcel of Residential Property, the date of the first transfer of ownership to a private homeowner after a building permit for new construction has been issued.
Fiscal Year' means the period starting July 1 and ending on the following June 30.
Master Developer" means River Islands Development, and its successors and assignees.
Maximum Special Tax" means the greatest amount of Special Tax that can be levied in any Fiscal Year determined in accordance with Section C below.
Other Property' means, in any Fiscal Year, all Parcels of Developed Property that are not Residential Property.
Proportionately" means the following: (i) for Developed Property, the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Assessor' s Parcels of Developed Property; (ii) for Undeveloped Property, the ratio of the actual Special Tax to the Maximum Special Tax is equal for all Assessor' s Parcels of Undeveloped Property; ( iii) for Association Property, the ratio of the actual Special Tax to the Maximum Special Tax is equal for all Assessor' s Parcels of Association Property; and ( iv) for Excess Public Property, the ratio of fl1e actual Special Tax to the Maximum Special Tax is equal for all Assessor' s Parcels of Excess Public Property.
Public Property" means, in any Fiscal Year: ( i) all Parcels within the boundaries of the CFD that are owned by or irrevocably offered for dedication to the federal government, the State of California, the City or any other public agency; and ( ii) all Parcels within the boundaries of the CFD that are encumbered by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement.
Purchase Agreement" means an agreement between the Master Developer and a homebuilder.
Required Coverage" means the amount by which the Maximum Special Tax revenues must exceed the debt service on the Bonds and required Administrative Expenses, as set forth in the Indenture, Certificate of Special Tax Consultant, or other formation or bond document that sets forth the minimum required debt service coverage.
B- 3
Residential Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of one or more Units.
Special Tax" means a Special Tax levied in any Fiscal Year to pay the Special Tax Requirement.
Special Tax Requirement" means the amount necessary in any Fiscal Year: (i) to pay principal and interest on Bonds which are due in the calendar year that begins in such Fiscal Year; ( ii) to create and/ or replenish reserve funds for the Bonds to the extent such replenishment has not been included in the computation of Special Tax Requirement in a previous Fiscal Year; ( iii) to cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year;( iv) to pay Administrative Expenses; and( v) if the Administrator determines Special Tax revenues are available after items ( i) through ( iv) have been funded, to directly pay the costs of Authorized Facilities that have not been paid by the proceeds of previously issued Bonds to the extent that the inclusion of such amounts does not increase the Special Tax levied on Undeveloped Property. The amounts referred to in clauses( i) and( ii) of the preceding sentence may be reduced in any Fiscal Year by: ( i) interest earnings on or surplus balances in funds and accounts for the Bonds to the extent that such earnings or balances are available to apply against debt service pursuant to a Bond indenture, Bond resolution, or other legal document that sets forth these terms;( ii) proceeds from the collection of penalties associated with delinquent Special Taxes; and ( iii) any other revenues available to pay debt service on the Bonds as determined by the Administrator.
Taxable Property' means all of the Assessor' s Parcels within the boundaries of the CFD which are not exempt from the Special Tax pursuant to law or Section F below.
Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Amended RMA. All of the property within CFD No. 2016- 1 at the time of CFD Formation is within Tax Zone 1. Additional Tax Zones may be created when property is annexed to the CFD, and a separate Maximum Special Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor' s Parcels included within a new Tax Zone established when such Parcels are annexed to the CFD shall be identified by Assessor' s Parcel number in the Unanimous Approval Form that is signed by the owner( s) of the Parcels at the time of aruzexation.
Tentative Map" means a map that is made for the purpose of showing the design of a proposed subdivision and the conditions pertaining thereto and is not Uased on a detailed survey of the property within the map and is not recorded at the County Recorder' s Office to create legal lots.
Unanimous Approval Form' means that form executed by the record owner of fee title to a Parcel or Parcels annexed into the CFD that constitutes the property owner' s approval and unanimous vote in favor of annexing into the CFD and the levy of the Special Tax against his/ her Parcel or Parcels pursuant to this Amended RMA.
Undeveloped Property" means, in any Fiscal Year, all Parcels of Taxable Property within the CFD that are not Developed Property, Association Property, or Excess Public Property.
B- 4
Unit" means an individual single family detached residential unit or an individual residential rental unit within a duplex, triplex, fourplex, townhome, condominium structure, or apartment complex. An Accessory Unit that shares a Parcel with a single-family detached unit shall not be considered a separate Unit for purposes of this Amended RMA B. DATA FOR ANNUAL ADMINISTRATION
On or about July 1 of each Fiscal Year, the Administrator shall identify the current Assessor' s Parcel numbers for all Taxable Property. The Administrator shall also determine: (i) within which Tax Zone each Parcel is located, ( ii) whether each Assessor' s Parcel is Developed Property, Undeveloped Property, Association Property, or Excess Public Property, ( iii) for Developed Property, which Parcels are Residential Property or Other Property, and ( iv) the Special Tax Requirement. In addition, the Administrator shall keep a record of all Parcels for which the Maximum Special Tax has been reduced pursuant to Section C. 3 of the Amended RMA as well as the resulting Maximum Special Tax for each Parcel.
In any Fiscal Year, if it is determined that( i) a Final Map for a portion of property in the CFD was recorded after the last date upon which the Assessor will incorporate the newly- created Parcels into the then current tax roll, and( ii) because of the date the Final Map was recorded, the Assessor does not yet recognize the new Parcels created by the Final Map, the Administrator shall calculate the Special Tax for the property affected by recordation of the Final Map by determining the Special Tax that applies separately to each newly-created Parcel, then applying the sum of the individual Special Taxes to the original Parcel that was subdivided by recordation of the Final Map.
C. MAXIMUM SPECIAL TAX
1. Tax Zone 1
Table 1 below identifies the Maximum Special Tax for Taxable Property within Tax Zone 1 at CFD Formation and all Parcels that annex into Tax Zone 1 after CFD Formation.
TABLEI
TAX ZONE 1
MAXIMUM SPECIAL TAXES
Maxir iurrT Special Tc x
T
pe ofPropert Fiscal Year 2016- 17*
Residential Property 0 per Unit
Other Property 10 per Acre
Undeveloped Property 10 per Acre
On Jul 1, 2017, and on each Jul 1 thereafter, tlie
Maximum Specinl Taxes sliozvn in Table 1 above shall be increased b an amount equal to two percent ( 2%) of the amount in effect for the prior Fiscal 1' ear.
2. Additional Tax Zones
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If property is annexed into the CFD and a separate Tax Zone is established for such property, Maximum Special Tax rates will be identified for Taxable Property in the new Tax Zone in the Unanimous Approval Form signed by the annexing property owner.
3. Changes to theMaximum Special Tax
Prior to the First Transfer Date, the Maximum Special Tax for a Parcel of Residential Property may be reduced once if the Administrator determines that the Maximum Special Tax for a Parcel of Residential Property would result in a total effective tax rate, including property tax, tax overrides, and other direct special taxes and assessments, greater than the percentage of the estimated sales price specified in the Purchase Agreement.
Notwithstanding the forgoing, the Maximum Special Tax shall not be reduced for any Parcel if such a reduction reduces debt service coverage on outstanding Bonds below the Required Coverage.
The Special Tax reduction required pursuant to this section shall be made without a vote of the qualified electors in the CFD and shall be reflected in an amended Notice of Special Tax Lien against the Parcel in question which the CFD shall cause to be recorded by executing a certificate in substantially the form attached herein as Exhibit 1.
Pursuant to Section 53321 ( d) of the Act, the Special Tax levied against a Parcel used for private residential purposes shall under no circunzstances inerease more than ten percent ( 10%) as a consequence of delinquency or default by the owner of any other Parcel or Parcels and shall, in no event, exeeed tlie Maximum Special Tax in effect for the Fiscal Year in which the Speeial Tax is being levied.
D. METHOD OF LEVY OF THE SPECIAL TAX
Each Fiscal Year, the Administrator shall determine the Special Tax Requirement to be collected in that Fiscal Year, and the Special Tax shall be levied according to the steps outlined below.
Step 1: The Special Tax shall be levied Proportionately on each Parcel of Developed Property within the CFD up to 100% of the Maximum Special Tax for each Parcel for such Fiscal Year determined pursuant to Section C;
Step 2: If additional revenue is needed after Step 1, and after applying Capitalized Interest to the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Assessor' s Parcel of Undeveloped Property within the CFD, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C;
Step 3: If additional revenue is needed after applying fl1e first two steps, the Special Tax shall be levied Proportionately on each Parcel of Association Property within the CFD, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C;
B- 6
Step 4: If additional revenue is needed after applying the first three steps, the Special Tax shall be levied Proportionately on each Assessor' s Parcel of Excess Public Property, exclusive of property exempt from the Special Tax pursuant to Section F below, up to 100% of the Maximum Special Tax for Undeveloped Property for such Fiscal Year determined pursuant to Section C.
E. COLLECTION OF SPECIAL TAX
The Special Taxes for CFD No. 2016- 1 shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that prepayments are permitted as set forth in Section G below and provided further that the Autharity may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner, and may collect delinquent Special Taxes through foreclosure or other available methods.
The Special Tax shall be levied and collected until principal and interest on Bonds have been paid and Authorized Facilities have been completed. However, in no event shall a Special Tax be levied after Fiscal Year 2080- 81.
F. EXEMPTIONS
Norivithstanding any other provision of this Amended RMA, no Special Tax shall be levied on any Parcel of Public Property at CFD Formation, except as otherwise provided in the Act. A separate amount of public acreage may be exempted each time property annexes into the CFD, and such additional exemption shall only apply to property within the aiuiexation area. A Special Tax may be levied on Excess Public Property pursuant to Step 4 of Section D; however, a public agency may require that the special tax obligation on land conveyed to it that would be classified as Excess Public Property be prepaid pursuant to Section G below.
G. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section G:
Final Bond Sale" means, at any point in time, the last series of Bonds issued by the CFD, which issuance uses up virtually all of the remaining capacity available from the Maximum Special Tax revenues that can be generated within the CFD, as determined by the Authority. If additional Bonds are expected to be issued after outstanding Bonds retire, the " Final Bond Sale" may not be the last series of Bonds ever issued by the CFD, but instead the last sale of Bonds that can be issued before some or all of the outstanding Bonds retire.
Outstanding Bonds" means all outstanding Bonds issued on behalf of the CFD prior to the date of prepayment, with the following exception: if a Special Tax has been levied against, or already paid by, an Assessor' s Parcel making a prepayment, and a portion of the Special Tax will be used to pay a portion of the next principal payment on the Bonds that remain outstanding ( as determined by the Administrator), that next principal payment shall be subtracted from the total Bond principal that remains outstanding, and B- 7
the difference shall be used as the amount of Outstanding Bonds for purposes of this prepayment formula.
The Special Tax obligation applicable to an Assessor' s Parcel in the CFD may be prepaid and the obligation of the Assessor' s Parcel to pay the Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor' s Parcel at the time of prepayment. An owner of an Assessor' s Parcel intending to prepay the Special Tax obligation shall provide the Authority with written notice of intent to prepay. Within 30 days of receipt of such written notice, the Authority or its designee shall notify such owner of the prepayment amount for such Assessor' s Parcel.
1. Full Prepayment Prior to Final Bond Sale
As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps:
Step 1. Compute the total Maximum Special Tax that could be collected from the Assessor' s Parcel prepaying the Special Tax in the Fiscal Year in which prepayment would be received by the Authority.
Step 2. Estimate the bonding capacity based on the Maximum Special Tax determined in Step 1 and an assumed bond term of 30 years using, as the interest rate for the bonding capacity calculation, the greater of ( i) the current interest rate as determined by the Administrator based on discussions with industry professionals or (ii) the average true interest cost( TIC) on the Outstanding Bonds as identified by the Administrator. Notwithstanding the foregoing, if at any point in time the Administrator determines that the Maximum Special Tax revenue that could be collected from Taxable Property after the proposed prepayment is less than 110% of debt service on Bonds that will remain outstanding after defeasance or redemption of Bonds from proceeds of the estimated prepayment, the amount of the prepayment shall be increased until the amount of Bonds defeased or redeemed is sufficient to reduce remaining annual debt service to a point at which 110% debt service coverage is realized.
Step 3. Determine the costs of computing the prepayment amount and the costs of recording any notices to evidence the prepayment (the " Administrative Fees and Expenses").
Step 4. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 2 and 3 ( the " Prepayment Amount").
2. Full PrepaymentAfterFinal Bond Sale
Prepayment must be made not less than 75 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Special Taxes. The Prepayment Amount shall be calculated as follows: ( capitalized terms as defined below):
B- 8
Bond Redemption Amount
plus Redemption Premium
plus Defeasance Requirement
plus Administrative Fees and Expenses
less Reserve Fund Credit
equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps:
Step 1. Compute the total Maximum Special Tax that could be collected from the Assessor' s Parcel prepaying the Special Tax in the Fiscal Year in which prepayment would be received by the Authority.
Step 2. Divide the Maximum Special Tax from Step 1 by the Maximum Special Tax revenues that could be collected in that Fiscal Year.
Step 3. Multiply the quotient computed pursuant to Step 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid ( tlie " Bond Redemption Aniount").
Step 4. Multiply the Bond Redemption Amount computed pursuant to Step 3 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed tl2e " Redemption Premium").
Step 5. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the first Bond interest payment date after which the prepayment has been received until the earliest redemption date for the Outstanding Bonds.
However, if Bonds are callable at the first interest payment date after the prepayment has been received, Steps 5, 6 and 7 of this prepayment formula will not apply.
Step 6. Compute the amount of interest the Authority reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the prepayment has been received until fl1e redemption date for the Outstanding Bonds.
Step 7. Take the amount computed pursuant to Step 5 and subtract the amount computed pursuant to Step 6 ( the " Defeasance Requirement").
Step 8. Determine the costs of computing the prepayment amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption( the " Administrative Fees and Expenses").
Step 9. If and to the extent so provided in the indenture pursuant to which the Outstanding Bonds to be redeemed were issued, a reserve fund credit shall be B- 9
calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment( the' Reserve Fund Credit").
Step 10. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 3, 4, 7, and 8, less the amount computed pursuant to Step 9 ( the Prepayment Amount'.
3. Partial Prepayments
A partial prepayment may be made in an amount equal to any percentage of full prepayment desired by the party making a partial prepayment, except that the full amount of administrative fees and expenses determined in Step 3 of Section G.1 or Step 8 of Section G.2 shall be included in the partial prepayment. The Maximum Special Tax that can be levied on an Assessor' s Parcel after a partial prepayment is made is equal to the Maximum Special Tax that could have been levied prior to the prepayment, reduced by the percentage of a full prepayment( less the amount collected for administrative fees and expenses) that the partial prepayment ( less the amount collected for administrative fees and expenses) represents, all as determined by or at the direction of the Administrator.
H. INTERPRETATION OF SPECIAL TAX FORMULA
The Authority reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning Special Taxes. In addition, the interpretation and application of any section of this document shall be left to the Authority' s discretion. Interpretations may be made by the Authority by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Amended RMA.
I. APPEAL OF SPECIAL TAX LEVY
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the Administrator not later than one calendar year after having paid the Special Tax that is disputed. The Administrator shall promptly review the appeal and, if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and decide the appeal. If the property owner disagrees with the Administrator' s decision relative to the appeal, the owner may then file a written appeal with the Board whose subsequent decision shall be binding. If the decision of the Administrator ( if the appeal is not filed with the Board) or the Board (if the appeal is filed with the Board) requires the Special Tax to be modified or changed in favor of the property owner, no cash refund shall be made for prior years' Special Tax levies, but an adjustment shall be made to the next Special Tax levy(ies). This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.
B- 10
EXHIBIT 1
RIVER ISLANDS PUBLIC FINANCING AUTHORITY
COMMUNI' TY FACILITIES DISTRICT NO. 2016- 1
RIVER ISLANDS SUPPLEMENTAL)
CERTIFICATE OF MODIFICATION OF SPECIAL TAX
1. Pursuant to Section C.3 of the Amended Rate and Method of Apportionment of Special Tax ( the" Amended Rate and Method") for the River Islands Public Financing Authority Community Facilities District No. 2016- 1 ( River Islands Supplemental) (" CFD No. 2016- 1"), the Maximum Special Tax for a Parcel of Residential Property within CFD No. 2016- 1 has been modified as follows:
Maximum Special Tax
Assessor' s Parcel Number Fiscal Year 2016- 17*
XXX- XX- XXX per Unit
On Jul 1, 2017, rtnd on ench Jul 1 thereafter, the Maximum Special Taxes shozvn in the tnble above s11a11 be increased b an amount equal to tzuo percent( 2%) of the amount in effect for the prior Fiscal Year.
2. The Maximum Special Tax for Residential Property may only be modified prior to the First Transfer Date( i.e., the date of the first transfer of ownership to a private homeowner after a building permit for new construction was issued).
3. Upon execution of this Certificate by CFD No. 2016- 1, CFD No. 2016- 1 shall cause an amended notice of Special Tax lien for CFD No. 2016-1 to be recorded reflecting the modifications set forth herein.
The undersigned acknowledges receipt of this certificate and of the modification of the Maximum Special Tax as set forth in this Certificate. Capitalized undefined terms used herein have the meanings ascribed thereto in the Amended Rate and Method.
River Islands Public Financing Authority
Community Facilities District No. 2016- 1 ( River Islands Supplemental) By: Date:
B- 11
EXHIBIT C
RIVER ISLANDS PUBLIC FINANCING AUTHORITY
COMMUNIT' Y FACILITIES DISTRICT NO. 2016- 1
RIVER ISLANDS SUPPLEMENTAL)
MAXIMUM SPECIAL TAXES FOR ZONE 3 OF THE CFD
The table below identifies the Maximum Special Tax for Taxable Property within Tax Zone 3 and all Parcels that annex into Tax Zone 3.
TAX ZONE 3
MAXIMUM SPECIAL TAXES
Type of Propert Maxirracni Special Tax
Fiscal Year2016- 17*
Residential Property 5, 000 per Unit
Other Property 0 per Acre
Undeveloped Property 0 per Acre
On July 1, 2017, ancl on each Jul 1 thereafter, the Maximum Special Taxes shown in Table 1 above shaR be increasecl by an amount eqi al to two percent( 2%) of the amoicnt in effect for the prior Fiscal Year.
C- 1
EXHIBIT D
RIVER ISLANDS PUBLIC FINANCING AUTHORITY
COMMUNIT'Y FACILITIES DISTRICT NO. 2016- 1
RIVER ISLANDS SUPPLEMENTAL)
ANNEXATION N0. 11
ASSESSOR' S PARCEL NUMBER( S) AND OWNER( S) OF LAND WITHIN ANNEXATION N0. 11 TO RIVER ISLANDS PUBLIC FINANCING AUTHORITY COMMUNIT' Y FACILITIES DISTRICT NO. 2016- 1
RIVER ISLANDS SUPPLEMENTAL)
San Joaquin County
Name( s) of Property Owner( s) Assessor' s Parcel No.
River Islands Stage 2A, LLC 210- 570- 01
D- 1
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