Item Title: 10.10
Acceptance of Public Improvements, Audie Murphy Ranch North, Tract Map 36485-4 by Sutter Mitland 01, LLC Item Page Number: 38
Menifee Mayor and City Council May 18, 2022
Item Title: 10.10
Acceptance of Public Improvements, Audie Murphy Ranch North, Tract Map 36485-4 by Sutter Mitland 01, LLC Item Page Number: 39
Menifee Mayor and City Council May 18, 2022
Item Title: 10.10
Acceptance of Public Improvements, Audie Murphy Ranch North, Tract Map 36485-4 by Sutter Mitland 01, LLC Item Page Number: 40
Menifee Mayor and City Council May 18, 2022
Item Title: 10.10
Acceptance of Public Improvements, Audie Murphy Ranch North, Tract Map 36485-4 by Sutter Mitland 01, LLC Item Page Number: 41
Menifee Mayor and City Council May 18, 2022
CITY OF MENIFEE
SUBJECT: Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance
MEETING DATE: May 18, 2022
TO: Mayor and City Council
PREPARED BY: Bryce Howell, Park/Landscape Maintenance Manager REVIEWED BY: Jonathan Nicks, Community Services Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Accept the improvements for the Lazy Creek Recreation Center Improvements Project (CIP19-16), located at 26480 Lazy Creek Road; and
2. Authorize the City Clerk’s Office to file the Notice of Completion with the Riverside County Recorder’s Office.
DISCUSSION
The Lazy Creek Center Improvements Project consisted of the remodel of the existing 1,990 sq. ft. recreation building and the addition of a new 2,360 sq. ft. building at Lazy Creek Park. Both buildings will provide year-round programs, camps, and events within the City of Menifee. The renovation of the existing recreation center building included a new roof, electrical and lighting upgrades, a new HVAC system, windows, doors, paint, accessibility, and other similar improvements. The new 2,360 sq. ft. recreation building includes two 738 sq. ft. multi-purpose rooms, a 267 sq. ft. food preparation and serving area, a 185 sq. ft. storage room, two restrooms, and a patio.
On February 17, 2021, City Council approved a construction budget for the project of $1,882,235.
The final construction cost for the project was $1,879,175 including $155,798.26 in change order costs. Included in the change amount was $149,082.55 caused by omissions and errors on the architectural plans consisting of incorrect demolition amounts ($55,000) and inaccurate quantities for items such as flooring ($11,500), electrical ($11,592.64), mechanical ($31,701.46), and cosmetic designs ($39,288.45). For all these items, there were two contract change orders processed for the project as outlined in Table 1 on the following page and in the attached Contract Change Order Summary. This matter has been referred to the City Attorney’s office, and the City Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 1
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
CIP# CS020 Acceptance
May 18, 2022
9 3
1 Attorney’s office has sent a demand notice and met with the architectural firm’s lawyers to attempt to recoup the funds that were expended due to the architectural firm’s errors.
Table 1 – Optima RPM, Inc. Contract Change Order Summary CCO No. Description Total Cost
001
Additional excavation of existing concrete not
identified on plans and unknown buried jacuzzi. $55,000.00 002
Due to omissions and errors on the
architectural plans consisting of incorrect
demolition amounts and inaccurate estimates
for flooring, electrical, and mechanical designs $100,798.26 Total Change Order Amount $155,798.26
Filing a Notice of Completion (NOC) protects the City from future claims against the project by providing proper notification to each contractor, subcontractor, and material supplier that the project has been completed. The payment bond (Labor and Materials Bond) and performance bond would be released 30 days following the date of the NOC recordation, provided no stop notices are filed preventing said releases.
Community Services staff has inspected the materials supplied, quality of the materials, construction methods, and workmanship, and have determined the improvements and related work performed by the contractor, Optima RPM, Inc. have met the project requirements as specified in the contract documents.
STRATEGIC PLAN OBJECTIVE
Livable and Economically Prosperous Community
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Notice of Completion
2. Contract Change Order Summary
3. Close Out Documents
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 2
Menifee Mayor and City Council May 18, 2022
Recording Requested By:
CITY OF MENIFEE
After Recording Mail To:
CITY CLERK
CITY OF MENIFEE
29844 HAUN ROAD
MENIFEE, CA 92586
Record without fee subject to Govt. Code 6103
NOTICE OF COMPLETION
(Public Works – Civil Code Sec. 9204)
Lazy Creek Improvements 19-16
Notice is hereby given that:
Work of improvements on the project herein described was accepted as complete on May 18, 2022. The project improvements consist of adding a 2,360 sq. ft. building which included two (2) 738 sq. ft. multi-purpose rooms, a 267 sq. ft. servery, 185 sq. ft. storage room, two (2) restrooms and the complete remodel of the 1990 sq. ft. existing recreation building. The project was done in Lazy Creek Park located in the residential neighborhood on Lazy Creek and Evans Rd in the City of Menifee, County of Riverside, State of California.
1. The full name of the Owner is: CITY OF MENIFEE
2. The full address of the Owner is: 29844 HAUN ROAD
MENIFEE, CA. 92586
3. The undersigned is a Corporate Officer of the Owner of the interest stated below in the property herein described:
PUBLIC PARK IN
MENIFEE, CA 92586
4. The name of the contractor for such work of construction is:
Optima RPM Inc.
17945 Sky Park Circle Suite D
Irvine, CA 92614
5. The property on which said work of improvement was completed is within the City of Menifee, County of Riverside, State of California.
STATE OF CALIFORNIA)
Ss
COUNTY OF RIVERSIDE)
I, Stephanie Roseen, hereby certify that I am the Assistant City Clerk of the City of Menifee, a municipal corporation, which is the owner of the properties described within this Notice of Completion, executed on behalf of the City; that I have read the notice and know the contents thereof and that the facts therein stated are true of my own knowledge under penalty of perjury under the laws of the state of California; that I make this verification on _________________, 20___ for and on behalf of the City.
_____________________________
Stephanie Roseen, Assistant City Clerk
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 3
Menifee Mayor and City Council May 18, 2022
Attachment 2
Co
ntract Change Order Summary – Optima RPM, Inc.
La zy Creek Recreation Center Improvements Project
(CIP19-16)
Contract Change
Order No. Description
Date
Approved
Additional
Time Amount Percent
001
Additional excavation of existing
concrete and unknown buried
jacuzzi
4/1/2021 0 days $55,000.00 3.46%
002
Due to omissions and errors on
the architectural plans consisting
of incorrect demolition amounts
and inaccurate estimates for
flooring, electrical, and
mechanical designs
1/14/2022 30 days $100,798.26 6.35%
Totals 30 days $155,798.26 9.81%
O
riginal Contract Amount: $1,588,577.00
Total Change Order Amount: $155,798.26
Revised Contract Amount: $1,744,375.26
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 4
Menifee Mayor and City Council May 18, 2022
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 5
Menifee Mayor and City Council May 18, 2022
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 6
Menifee Mayor and City Council May 18, 2022
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 7
Menifee Mayor and City Council May 18, 2022
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 8
Menifee Mayor and City Council May 18, 2022
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 9
Menifee Mayor and City Council May 18, 2022
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 10
Menifee Mayor and City Council May 18, 2022
Item Title: 10.11
Lazy Creek Recreation Center Improvements Project Notice of Completion and Acceptance Item Page Number: 11
Menifee Mayor and City Council May 18, 2022
CITY OF MENIFEE
SUBJECT: Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance
MEETING DATE: May 18, 2022
TO: Mayor and City Council
PREPARED BY: Jennifer Hernandez, Management Analyst I
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Accept the improvements for the Lazy Creek Recreation Center Parking Lot Improvement Project located at 26480 Lazy Creek Road; and
2. Authorize the City Clerk’s Office to file the Notice of Completion for the Lazy Creek Recreation Center Parking Lot Improvement Project, Capital Improvement Project No. CIP19-16, with the Riverside County Recorder’s Office.
DISCUSSION
Lazy Creek Park is a City-owned facility that is operated and programmed by the Community Services Department and provides year-round recreational and educational activities to the community. The City has recently constructed a number of improvements at Lazy Creek Park to increase the size of the Lazy Creek Community Center and upgrades to the outdoor recreational spaces. The improvements provide additional capacity needed for the City to support expanded indoor and outdoor recreational programs to better serve the needs of the community.
To accommodate the expansion of the Lazy Creek Community Center Improvements, parking lot improvements were needed to create safe pedestrian paths, provide adequate parking spaces that are properly marked, and ensure the area is in compliance with the American with Disabilities Act (ADA) requirements.
Improvements to the parking lot consisted of reconstruction of the existing parking lot, construction of ADA accessible parking stalls and sidewalks, construction of a trash enclosure, and installation of signage and striping in the parking lot area. The project also addressed storm water collection and water quality requirements through installation of bio-retention/filtration basins.
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 1
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
CIP 19-16 Acceptance
May 18, 2022
1 0
0 3
On October 20, 2021, the City Council approved a construction budget of $259,660 (rounded) to complete the improvements of the parking lot. Final construction costs for the parking lot were $235,124.60. There were no change orders for the construction of the parking lot improvements.
The parking lot improvements were bid and awarded separate of the Lazy Creek Community Center Improvements.
Filing a Notice of Completion (NOC) protects the City from future claims against the project by providing proper notification to each contractor, subcontractor, and material supplier that the project has been completed. The payment bond (Labor and Materials Bond) and performance bond will be released 30 days following the date of the NOC recordation, provided no stop notices are filed preventing said releases.
Public Works Engineering staff have inspected the materials supplied, quality of materials, construction methods, and workmanship, and have determined the improvements and related work performed by the contractor Roadway Engineering and Contracting, Inc. have met the project requirements as specified in the contract documents.
STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Project Location Map
2. Notice of Completion
3. Close Out Documents
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 2
Menifee Mayor and City Council May 18, 2022
Kanan Rd
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Path: D:\00 Project_Specific_Maps\Engineering _Public Works\Lazy_Creek_Parking_Lot_Memo\Lazy_Creek_Parking_Lot_Memo.aprx Date: 9/29/2021 Lazy Creek Parking Lot Improvements (CIP 19-16)
Project Location Map
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 3
Menifee Mayor and City Council May 18, 2022
Recording Requested By:
CITY OF MENIFEE
After Recording Mail To:
CITY CLERK
CITY OF MENIFEE
29714 HAUN ROAD
MENIFEE, CA 92586
Record without fee subject to Govt. Code 6103
NOTICE OF COMPLETION
(Public Works – Civil Code Sec. 9204)
Lazy Creek Center Parking Lot Improvements, CIP 19-16
Notice is hereby given that:
Work of improvements on the project herein described was accepted as complete on May 18, 2022 The work done:
Reconstruction of the existing parking lot, installation of ADA accessible parking stalls, water quality basins, striping, signage, sidewalk improvements, and construction of a trash enclosure at the Lazy Creek Center.
1. The full name of the Owner is: CITY OF MENIFEE
2. The full address of the Owner is: 29714 HAUN ROAD
MENIFEE, CA. 92586
3. The undersigned is a Corporate Officer of the Owner of the interest stated below in the property herein described:
Lazy Creek Center
26480 Lazy Creek Road
MENIFEE, CA 92585
4. The name of the contractor for such work of construction is:
Roadway Engineering & Contracting, Inc.
10966 Banana Ave
Fontana, CA 92337
5. The property on which said work of improvement was completed is within the City of Menifee, County of Riverside, State of California.
STATE OF CALIFORNIA)
Ss
COUNTY OF RIVERSIDE)
I, Stephanie Roseen, hereby certify that I am the City Clerk of the City of Menifee, a municipal corporation, which is the owner of the properties described within this Notice of Completion, executed on behalf of the City; that I have read the notice and know the contents thereof and that the facts therein stated are true of my own knowledge under penalty of perjury under the laws of the state of California; that I make this verification on _________________, 20___ for and on behalf of the City.
_____________________________
Stephanie Roseen, Acting City Clerk
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 4
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 5
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 6
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 7
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 8
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 9
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 10
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 11
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 12
Menifee Mayor and City Council May 18, 2022
Item Title: 10.12
Lazy Creek Recreation Center Parking Lot Improvement Project Notice of Completion and Acceptance Item Page Number: 13
Menifee Mayor and City Council May 18, 2022
CITY OF MENIFEE
SUBJECT: Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project
MEETING DATE: May 18, 2022
TO: Mayor and City Council
PREPARED BY: Kevin Bohne, Associate Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Award bid and authorize the City Manager to execute an Owner-Contractor Agreement with VSS International, Inc., to perform slurry seal services for the Audie Murphy Ranch Slurry Seal Project, Capital Improvement Project No. PMP 22-01, in the amount of $396,120.
DISCUSSION
The Audie Murphy Ranch (AMR) Slurry Seal Project (Project) consists of applying a slurry seal over the existing pavement and restriping the road in the AMR neighborhoods located along Newport Road, west of Murrieta Road, as depicted in the attached Project Location Map. The slurry sealing portion would complete the two-part improvements preceded by the crack seal that was completed in 2021.
Staff administered a competitive bid process, and the Project was legally advertised in accordance with the California Public Contract Code. An electronic bid opening was held on April 19, 2022, and a total of five bids were received as summarized in Table 1 below.
Table 1- Bid Result Summary
Firm Name Total Bid Amount Lowest Responsible Bidder
Engineer’s Estimate $502,000.00
VSS International, Inc. $396,120.00 X
Pavement Coatings Co. $416,997.25
American Asphalt South, Inc. $437,818.90
Roy Allan Slurry Seal, Inc. $541,829.65
All American Asphalt $555,555.00
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 1
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
AMR Slurry Seal Award
May 18, 2022
9 0
4 Staff reviewed the apparent lowest bidder and determined VSS International, Inc., met the requirements for recommendation as the lowest responsive and responsible bidder.
The anticipated construction cost for the project is $480,000 which includes construction, materials testing, labor compliance, and other costs typically associated with a construction project. Construction management would be performed by City Staff, while materials testing, and labor compliance services would be performed by a consultant.
If approved by the City Council, the tentative project schedule would be as follows:
Construction Start: June 8, 2022
Construction End: July 8, 2022
City Council Acceptance: August 17, 2022
*The timeline above assumes no delays due to weather or unforeseen conditions.
Environmental Impact
The proposed project has been determined to be Categorically Exempt (“Existing Facilities”) under the California Environmental Quality Act (CEQA) and CEQA Guidelines, Section 15301. Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. Class 1 includes the following example of a project that would be exempt under this section: (c) [minor alterations to] Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety). The project is for the resurfacing of an existing paved road as described above. All improvements are within existing city right-of-way. The proposed improvements are a negligible expansion of the existing use. The improvements described above are considered minor alterations to existing streets or similar facilities. The project is exempt per Section 15301.
The proposed project is also exempt under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA (Section 15061(b)(3)). There is no possibility that the activity in question will have a significant effect on the environment because the proposed project is occurring in an area that is already heavily disturbed and is not environmentally sensitive. The Notice of Exemption for the Project was recorded with the County of Riverside on March 14, 2022.
STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community
FISCAL IMPACT
The construction cost of the Project is estimated at $480,000. The available funding for this project in the fiscal year 2021-22 adopted budget is $593,334. Therefore, the total anticipated cost is within the total available funding as summarized in Table 2 on the following page.
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 2
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
AMR Slurry Seal Award
May 18, 2022
9 0
4 Table 2- Existing Project Funding
Fund Project Account
Number
Available
Budget
Project Cost
Gas Tax
Pavement
Management
Program
200-4555-58011 $160,000 $160,000
Measure A
Pavement
Management
Program
220-4555-58011 $216,667 $160,000
AMR CFD
Pavement
Management
Program
490-4555-58011 $216,667 $160,000
Total $593,334 $480,000
ATTACHMENTS
1. Project Location Map
2. Agreement
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 3
Menifee Mayor and City Council May 18, 2022
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Path: E:\Project_Specific_Maps\Engineering_PublicWorks\AMR_SlurrySeal\AMR_SlurrySeal.aprx Date: 3/2/2022 Audie Murphy Ranch Slurry Seal (PMP 22-01)
Project Location Map
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 4
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a03/02/22 Page 1
CITY OF MENIFEE BID AND CONTRACT DOCUMENTS
OWNER-CONTRACTOR AGREEMENT
PMP 22-01: AMR SLURRY SEAL PROJECT
This Owner-Contractor Agreement (“Agreement”) is made and entered into for the above referenced Project by and between the City of Menifee (“Agency”), and VSS INTERNATIONAL, INC (“Contractor”), whose principal business address is 3785 Channel Drive, West Sacramento, CA 95691 on the ________ day of ______________, 20_______.
In consideration of the mutual covenants and agreements set forth herein, the Agency and Contractor have mutually agreed as follows:
1. CONSTRUCTION
The Contractor agrees to do all the Work and furnish all the labor, services, materials and equipment necessary to construct and complete the Project in accordance with the Contract Documents (as hereinafter defined), including all work, labor, services, materials and equipment described and reasonably inferable from documents enumerated in Exhibit “A” attached hereto and incorporated herein by reference (such construction and furnishing of labor, service, materials and equipment hereinafter referred to as the “Work”) in a good worker-like and substantial manner and to the satisfaction of the Agency, in connection with the PMP 22-01: AMR SLURRY SEAL PROJECT to be constructed at the in the City of Menifee, California. The term Contract Documents shall mean this Agreement, and all of the items enumerated in Exhibit “A” and all change orders or addenda issued by the Agency with respect thereto. Agency must consent in writing to any changes in the scope of Work. Exhibit “A” shall be deemed revised in accordance with any revisions for which Agency’s consent has been issued. Any revisions to the scope of Work for which Agency’s consent has not been issued shall be null and void.
2. CONTRACT PRICE
Agency hereby agrees to pay and the Contractor agrees to accept as full compensation for all Work performed in accordance with these Contract Documents the Contract Price as set forth in Exhibit “B”, Contract Price, attached hereto and incorporated herein by reference. Payments to the Contractor shall be made in the manner described in the Special Provisions.
3. TIME FOR PERFORMANCE
Time is of the essence in the performance of Work for this Agreement and all timing requirements shall be strictly adhered to unless otherwise modified by the Agency in accordance with these Bid and Contract Documents.
The Contractor shall complete the Work in every detail to the satisfaction of the Agency, exclusive of maintenance periods, within the specified duration set forth in the Notice to Proceed.
4. DELAYS AND EXTENSIONS OF TIME
See Section 6-6 of the Special Provisions.
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 5
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a03/02/22 Page 2
5. COVID-19 SAFETY
If Contractor or subcontractor(s) enters City property or meets in person with City employees during the performance of the Services, Consultant shall comply with all State, County, and local emergency orders, directives, protocols, and best practices related to the COVID-19 pandemic, including, but not limited to: (A) wearing facial coverings, (B) maintaining adequate physical distancing when possible, (C) regular hand washing, and (D) regular hand sanitizing.
6. LABOR CODE REQUIREMENTS
Pursuant to Labor Code Section 1771.1, the Contractor and all subcontractors shall be registered with the Department of Industrial Relations. Pursuant to Labor Code Section 1771.4, the Contractor is hereby notified that this Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. [EFFECTIVE APRIL 1, 2015.]
7. NON-DISCRIMINATION
In the performance of this Agreement, the Contractor shall not refuse or fail to hire or employ any qualified person, or bar or discharge from employment any person, or discriminate against any person, with respect to such person’s compensation, terms, conditions or privileges of employment because of such person’s race, religious status, sex or age.
8. AUTHORIZED AGENCY REPRESENTATIVES
On behalf of the Agency, the City Engineer of the City of Menifee shall be the Agency’s authorized representative in the interpretation and enforcement of all Work performed in connection with this Agreement. The City Engineer may delegate authority in connection with this Agreement to his/her assigned designees.
9. WORKERS’ COMPENSATION INSURANCE
a) By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.
b) The Contractor shall require each subcontractor to comply with the requirements of Section 3700 of the Labor Code. Before commencing any Work, the Contractor shall cause each subcontractor to execute the following certification:
“I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for worker’s compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.”
10. ENTIRE AGREEMENT; CONFLICT
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 6
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a03/02/22 Page 3
The Contract Documents comprise the entire agreement between the Agency and the Contractor with respect to the Work. In the event of conflict between the terms of this Agreement and the bid of the Contractor, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid conflicting herewith.
11. MAINTENANCE OF AGREEMENT DOCUMENTATION
Contractor shall maintain all books, documents, papers, employee time sheets, accounting records and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by Agency and copies thereof shall be furnished to Agency if requested.
12. INDEPENDENT CONTRACTOR
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee, agent, partner or joint venturer of the Agency. Agency shall have the right to control Contractor insofar as the results of Contractor’s services rendered pursuant to this Agreement; however, Agency shall not have the right to control the means by which Contractor accomplishes such services.
13. LICENSES AND PERMITS
Contractor represents and declares to Agency that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession. Contractor represents and warrants to Agency that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any licenses, permits, qualifications or approvals which are legally required for Contractor to practice its profession.
14. GOVERNING LAW, VENUE
This Agreement and the Contract Documents shall be construed under and in accordance with the laws of the State of California, and the appropriate venue for any action or proceeding arising from this Agreement and/or the Contract Documents shall be had in the Superior Court of Riverside, Temecula Branch
15. COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original.
16. FALSE CLAIMS
Contractor acknowledges that if a false claim is submitted to the Agency, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the Agency seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 7
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a03/02/22 Page 4
attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years.
I have read and understood all of the provisions of this Section 15, above:
(Initial) (Initial)
17. AGREEMENT MODIFICATION
This Agreement and the Contract Documents may not be modified orally or in any manner other than by an amendment in writing and signed by the Agency and the Contractor.
IN WITNESS WHEREOF this Agreement is executed as of the date first written above.
AGENCY:
City of Menifee
By:
Armando G. Villa, City Manager
CONTRACTOR:
VSS INTERNATIONAL, INC
By:
Name:
Its:
APPROVED AS TO FORM:
By:
Jeffrey T. Melching, City Attorney
By:
Name:
Its:
ATTEST:
By:
Stephanie Roseen, Acting City Clerk Contractor’s City Business License No. 293727; A, B, and C12__________________
State Contractor License No. & Class
3785 Channel Drive
Street Address
West Sacramento, CA 95691
City, State, Zip Code
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 8
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a03/02/22 Page 5
[NOTE: In the event the Contractor is a Corporation, the signatures of two separate persons holding different offices must be provided.]
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 9
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a03/02/22 Page 6
EXHIBIT A
CONTRACT DOCUMENTS
Owner-Contractor Agreement
Bid Schedule
Addenda
Plans
Special Provisions (Specifications)
Standard Specifications for Public Works Construction and Regional Supplements State Standard Specifications
State Standard Plans
Permits issued by jurisdictional regulatory agencies
Electric, gas, telephone, and cable television company specifications and standards Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 10
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a03/02/22 Page 7
EXHIBIT B
CONTRACT PRICE
Three Hundred Ninety Six Thousand One Hundred Twenty Dollars and Zero Cents ($396,120.00)
The Contract Price for performing all Work described in the Contract Documents, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, as determined by the Agency.
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 11
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a00/00/00 Page 8
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 12
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a00/00/00 Page 9
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 13
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a00/00/00 Page 10
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 14
Menifee Mayor and City Council May 18, 2022
290/031858-0008
7645681.2 a00/00/00 Page 11
Item Title: 10.13
Agreement and Bid Award for the Audie Murphy Ranch Slurry Seal Project Item Page Number: 15
Menifee Mayor and City Council May 18, 2022
CITY OF MENIFEE
SUBJECT: Agreement for Murrieta Road Resurfacing Phase II MEETING DATE: May 18, 2022
TO: Mayor and City Council
PREPARED BY: Kevin Bohne, Associate Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Authorize the City Manager to execute a Professional Services Agreement with CivilPros to perform design services for the Murrieta Road Resurfacing Project Phase II, Capital Improvement Project No. CIP23-07, in the amount not-to-exceed of $32,932.
DISCUSSION
In 2019, the City contracted with CivilPros to conduct design services for Murrieta Road Resurfacing from McCall Boulevard to San Quentin Road. At the time, Eastern Municipal Water District (EMWD) was initiating their transmission pipeline improvement project along Murrieta Road. As such, some design elements that would impact the proposed improvements of Murrieta Road from Salt Creek Trail to San Quentin Road were omitted and put on hold in order to accommodate for the conditions of the road after completion of EMWD’s project.
In an effort to begin improvements along Murrieta Road, the City phased the project and completed the first phase of Murrieta Road Resurfacing in 2021. Said improvements occurred along Murrieta Road from McCall Boulevard to Camino Del Sol, just north of EMWD’s project.
As EMWD’s project approaches completion, preparation for the second phase of Murrieta Road Resurfacing can begin, which will include incorporating the initial design elements that were put on hold.
The Murrieta Road Resurfacing Phase II project would consist of resurfacing the existing road through cold-in-place recycled asphalt/concrete pavement with overlay, minor street widening, installation of a raised median, restriping where appropriate, and reconstruction of noncompliant pedestrian ramps. The work will be performed along Murrieta Road from San Quintin Avenue to Salt Creek Trail.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 1
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
CIP 23-07 Agreement
May 18, 2022
9 9
6 Staff solicited services from CivilPros to complete the design for the Phase II portion of the project.
Services required to complete the design include:
Design modifications- Modifications to the initial design to include a median on Murrieta Road from the EMWD Sub-Station to San Quentin Road
Survey- Additional Surveying services to assess existing conditions of the road to install raised medians.
Staff reviewed the proposed fee of $32,932 for the services and determined the fee aligned with the proposed services.
STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community
FISCAL IMPACT
The total anticipated cost for the design services is $32,932. Funding to support the project has been identified from project and operating budget savings in the current fiscal year 2021/22 budget and upon approval, will be transferred as summarized in Table 1 below.
Table 1- Identified Funding
Account NumberFund Project From To
Available
Budget
Amount
Requested
General
Fund
Professional
Services
(operational
budgets)
100-4555-52800 100-4555-58154 $33,435 $23,000
General
Fund
Murrieta Rd./
Sun City Blvd.
Traffic Signal
100-4555-58107 100-4555-58154 $101,127 $9,932
Total $134,562 $32,932
ATTACHMENTS
1. Project Location Map
2. Agreement
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 2
Menifee Mayor and City Council May 18, 2022
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Path: Z:\Project_Specific_Maps\Engineering_PublicWorks\MurrietaRoadResurfacing\MurrietaRoadResurfacing\MurrietaRoadResurfacing.aprx Date: 4/25/2022 Murrieta Road Resurfacing
Project Location Map
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 3
Menifee Mayor and City Council May 18, 2022
DocuSign Envelope ID: 1DE90413-54D0-46A7-A792-D4169B9D1CB0 2671/031858 -0001
7630376.2 a01/03/22
CITY OF MENIFEE
PROFESSIONAL SERVICES AGREEMENT
CIP 19-02 MURRIETA ROAD RESURFACING PROJECT PHASE II
ARCHITECTURAL AND ENGINEERING SERVICES
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and effective this day of , 2022 (“Effective Date”) by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and CIVILPROS, a California Corporation (“Consultant”). City and Consultant may sometimes herein be referred to individually as a “Party” and collectively as the “Parties.”
SECTION 1. SERVICES.
Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A and incorporated herein by this reference (the “Services”). Consultant will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Sco pe of Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.
1.1 Term of Services . The term of this Agreement shall begin on May 4, 2022 and shall end on December 31, 2022 unless the term of this Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to Consultant to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreem ent, as provided for in Section 8.
1.2 Standard of Performance. Consultant represents and warrants that Consultant is a provider of first class work and services and Consultant is experienced in performing the Services contemplated herein and, in light of suc h status and experience, Consultant shall perform the Services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession and to the sole satisfaction of the Contract Administrator.
1.3 Assignment of Personnel . Consultant shall assign only competent personnel to perform the Services pursuant to Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.
1.4 Time. Consultant shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Consultant’s obligations hereunder.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 4
Menifee Mayor and City Council May 18, 2022
DocuSign Envelope ID: 1DE90413-54D0-46A7-A792-D4169B9D1CB0 2671/031858 -0001
7630376.2 a01/03/22 -2-
1.5 Authorization to Perform Services. Consultant is not authorized to perform any of the Services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.
1.6 Covid-19 Safety. If Consultant enters City property or meets in person with City employees during the performance of the Services, Consultant shall comply with all State, County, and local emergency orders, directives, protocols, and best practices related to the COVID -19 pandemic, including, but not limited to: (A) wearing facial coverings, (B) maintaining adequate physical distancing when possible, (C) regular hand washing, and (D) regular hand sanitizing.
SECTION 2. COMPENSATION.
City hereby agrees to pay Consultant a sum not to exceed THIRTY TWO THOUSAND NINE HUNDRED THIRTY TWO DOLLARS AND ZERO CENTS ($32,932.00) notwithstanding any contrary indications that may be contained in Consultant’s proposal, for the Services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the a mount of compensation, this Agreement shall prevail. City shall pay Consultant for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consult ant for the Services rendered pursuant to this Agreement.
Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person.
2.1 Invoices. Consultant shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:
a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period;
c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense;
e. The total number of hours of work performed under this Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing the Services hereunder necessary to complete the Services described in Exhibit A;
f. Receipts for expenses to be reimbursed;
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 5
Menifee Mayor and City Council May 18, 2022
DocuSign Envelope ID: 1DE90413-54D0-46A7-A792-D4169B9D1CB0 2671/031858 -0001
7630376.2 a01/03/22 -3-
g. The Consultant Representative’s signature.
Invoices shall be submitted to:
City of Menifee
Attn: Accounts Payable
29844 Haun Road
Menifee, CA 92586
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for the Services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.
2.3 Final Payment. City sh all pay the last ten percent (10%) of the total amount due pursuant to this Agreement within sixty (60) days after completion of the Services and submittal to City of a final invoice, if all of the Services required have been satisfactorily performed.
2.4 Total Payment . City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.
In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.
2.5 Hourly Fees. Fees for the Services performed by Consultant on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit A.
2.6 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement.
2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes.
2.8 Payment upon Termination . In the event that City or Consultant terminates this Agreement pursuant to Section 8, City shall compensate Consultant for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date.
SECTION 3. FACILITIES AND EQUIPMENT.
Except as otherwise provided, Consultant shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 6
Menifee Mayor and City Council May 18, 2022
DocuSign Envelope ID: 1DE90413-54D0-46A7-A792-D4169B9D1CB0 2671/031858 -0001
7630376.2 a01/03/22 -4-
and reviewing records and the information in possession of City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long -distance telephone or other c ommunication charges, vehicles, and reproduction facilities.
SECTION 4. INSURANCE REQUIREMENTS.
Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance checked below and pr ovide Certificates of Insurance, indicating that Consultant has obtained or currently maintains insurance that meets the requirements of this section and which is satisfactory, in all respects, to City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement.
The cost of such insurance shall be included in Consultan t’s compensation. Consultant shall not allow any subcontractor, consultant or other agent to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant acknowledges the insurance policy must cover inter-insured suits between City and other Insureds.
4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Consultant may rely on a self - insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Consultant, if a program of self- insurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement.
4.2 Commercial General and Automobile Liability Insurance.
a. General requirements . Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 7
Menifee Mayor and City Council May 18, 2022
DocuSign Envelope ID: 1DE90413-54D0-46A7-A792-D4169B9D1CB0 2671/031858 -0001
7630376.2 a01/03/22 -5-
against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, and non-owned automobiles.
b. Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001.
Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9. No endorsement shall be attached limiting the coverage.
c. Additional requirements . Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
b. Any failure of Consultant to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.
4.3 Professional Liability Insurance.
a. General requirements . Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing the Services pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’ errors and omissions.
Any deductible or self -insured retention shall be shown on the Certificate. If the deductible or self-insured retention exceeds TWENTY -FIVE THOUSAND DOLLARS ($25,000), it must be approved by City.
b. Claims-made limitations . The following provisions shall apply if the professional liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after the expiration or termination of this Agreement or completion of the Services, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 8
Menifee Mayor and City Council May 18, 2022
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right to exercise, at Consultant’s sole cost and expense, any extended reporting provisions of the policy, if Consultant cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.
4.4 All Policies Requirements.
a. Acceptability of insurers . All insurance required by this Section is to be placed with insurers with a Bests’ rating of no less than A:VII and admitted in California.
b. Verification of coverage . Prior to beginning the Services under this Agreement, Consultant shall furnish City with Certificates of Insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copie s of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The Certificate of Insurance must include the following reference: CIP 19-02 MURRIETA R OAD RESURFACING PROJECT PHASE II ARCHITECTURAL AND ENGINEERING SERVICES. The name and address for Additional Insured endorsements, Certificates of Insurance and Notice of Cancellation is: City of Menifee, 29844 Haun Road, Menifee, CA 92586. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Consultant.
c. Notice of Reduction in or Cancellation of Coverage . Consu ltant shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased.
d. Additional insured; primary insurance . City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Con sultant, including the insured’s general supervision of Consultant; products and completed operations of Consultant, as applicable; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by Consultant in the course of provi ding the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non -contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services.
A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage.
e. Deductibles and Self -insured Retentions . Consultant shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 9
Menifee Mayor and City Council May 18, 2022
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During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Consultant may increase such deductibles or self - insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self -insured retention levels with a requirement that Consultant procure a bond guaranteeing payment of losses and related invest igations, claim administration, and defense expenses that is satisfactory in all respects to each of them.
f. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endo rsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
g. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.
4.5 Remedies. In addition to any other remedies at law or equity City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach:
a. Obtain such insurance and de duct and retain the amount of the premiums for such insurance from any sums due under this Agreement;
b. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or
c. Terminate this Agreement.
SECTION 5. INDEMNIFICATION.
5.1 Indemnification for Professional Liability . Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at l aw, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Consultant fails to provide a defense for C ity, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Consultant, its officers, agents, employees, or subcontrac tors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 10
Menifee Mayor and City Council May 18, 2022
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5.2 Indemnification for Other than Professional Liability . Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant.
5.3 Limitation of Indemnification for Des ign Professionals . Notwithstanding any provision of this Section 5 to the contrary, design professionals are required to defend and indemnify City only to the extent permitted by Civil Code Section 2782.8. The term “design professional” as defined in Secti on 2782.8, is limited to licensed architects, licensed landscape architects, registered professional engineers, professional land surveyors, and the business entities that offer such services in accordance with the applicable provisions of the California B usiness and Professions Code.
5.4 Limitation of Indemnification . The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity.
SECTION 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents is in any manner officers, officials, employees, or agents of City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 11
Menifee Mayor and City Council May 18, 2022
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SECTION 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Consultant and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Consultant shall not hire or employ any person to perform work within City or allow any person to perform the Services required u nder this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Any and all work subject to prevailing wages, as determined by the Director of Industrial Relations of the State of California, will be the minimum paid to all laborers, including Consultant’s employee and subcontractors. It is understood that it is the responsibility of Consultant to determine the correct scale. The State Prevailing Wage Rates may be obtained from the California Depar tment of Industrial Relations (“DIR”) pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415 -703-4774. Appropriate records demonstrating compliance with such requirement shall be maintained in a safe and secure location at all times, and readily available at City’s request. Consultant shall indemnify, defend, and hold City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers harmless from and against any liabi lity, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by Consultant or a ny party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Consultant or any party performing the Services to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all public works (as defined by applicable law), Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Consultant acknowledges and agrees that it shall be independ ently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Consultant shall require the same of all subcontractors.
7.3 Licenses and Permits . Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions .
Consultant represents and warrants to City that Consultant and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are le gally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 12
Menifee Mayor and City Council May 18, 2022
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SECTION 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant.
8.2 Termination by Consultant. Consultant may cancel this Agreement upon 30 days’ written notice to City.
8.3 Consequences of Termi nation. In the event of termination, Consultant shall be entitled to compensation for the Services performed up to the date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or City in connection with this Agreement.
8.4 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obl igation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period.
8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.
8.6 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge.
Moreover, a substantial inducem ent to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in Consultant’s proposal, without prior written approval of the Contract Administrator. In the event that key personnel leave Consultant’s employ, Consultant shall notify City immediately.
8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the expiration or termination of this Agreement.
8.8 Options upon Breach by Consultant . If Consultant materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 13
Menifee Mayor and City Council May 18, 2022
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c. Retain a different consultant to complete the Services described in Exhibit A; and/or
d. Charge Consultant the difference between the cost to complete the Services described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the Services.
SECTION 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant’s Performance . All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of City. Consultant hereby agrees to deliver those documents to City upon the expiration or termination of this Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for City and are not necessarily suitable for any future or other use. Any use of such documents for other projects by City shall be without liability to Consultant. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law.
9.2 Licensing of Intellectual Property . This Agreement creates a non -exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expr ession, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents and Data”). Consultant shall require all subcontractors to agree in writing that City is granted a non - exclusive and perpetual license for any Documents and Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal rig ht to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
9.3 Consultant’s Books and Records . Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for the Services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any lo nger period required by law, from the date of final payment to Consultant under this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 14
Menifee Mayor and City Council May 18, 2022
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9.4 Inspection and Audit of Records . Any records or documents that Section 9.3 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City.
Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.
SECTION 10. MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not excee d the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.
10.2 Applicable Law; Venue. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County.
10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.
10.4 Section Headings and Subheadings . The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.5 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.
10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.
10.7 Consultant Representative. All matters under this Agreement shall be handled for Consultant by Bob Morin, Assistant Vice President (“Consultant’s Representative”). The Consultant’s Representative shall have full authority to represent and act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be r esponsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 15
Menifee Mayor and City Council May 18, 2022
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Seal and Signature of Registered Professional with
report/design responsibility.
10.8 City Contract Administration . This Agreement shall be administered by a City employee, Jennifer Hernandez, Management Analyst I (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. The Contract Administrator shall have the power to act on behalf of City for all p urposes under this Agreement. Unless otherwise provided in this Agreement, Consultant shall not accept direction or orders from any person other than the Contract Administrator or his designee.
10.9 Notices. Any written notice to Consultant shall be sent to:
CIVILPROS
Attn: Matt Britten, Civil Engineering Department Manager 3850 Vine Street, Suite 110
Riverside, CA 92507
Any written notice to City shall be sent to the Contract Administrator at:
City of Menifee
29844 Haun Road
Menifee, CA 92586
Attn: Jennifer Hernandez, Management Analyst I
with a copy to:
City Clerk
City of Menifee
29844 Haun Road
Menifee, CA 92586
10.10 Professional Seal . Where applicable in the determination of the Contract Administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility,” as in the following example.
10.11 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
10.12 Integration. This Agreement, including the scope of services attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 16
Menifee Mayor and City Council May 18, 2022
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Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
10.13 Counterparts. This Agreement may be executed in multi ple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
10.14 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound.
10.15 Nondiscrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
10.16 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third -party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.
10.17 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
10.18 No Undue Influence. Consultant declares and warrants that no undue influen ce or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Consultant, or from any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.
10.19 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub -agreement, or the proceeds thereof, for the Services to be performed under this Agreement.
[Signatures on Following Page]
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 17
Menifee Mayor and City Council May 18, 2022
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Larry Shaw, San Diego Regional Manager
IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date.
CITY OF MENIFEE
Armando G. Villa, City Manager
Attest:
Stephanie Roseen, Acting City Clerk
Approved as to Form:
Jeffrey T. Melching, City Attorney
CONSULTANT
Matt Britten, Civil Engineering Department
Manager
[Corporation must have two signatures]
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 18
Menifee Mayor and City Council May 18, 2022
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7630376.2 a01/03/22 EXHIBIT A.
EXHIBIT A
SCOPE OF SERVICES
Services shall include Professional Design/Engineering Services for CIP 19 -02 Murrieta Road Resurfacing Project Phase II in the amount not to exceed THIRTY TWO THOUSAND NINE HUNDRED THIRTY TWO DOLLARS AND ZERO CENTS ($32,932.00) as further detailed in the following page(s).
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 19
Menifee Mayor and City Council May 18, 2022
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7630376.2 a01/03/22 EXHIBIT A.
Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 20
Menifee Mayor and City Council May 18, 2022
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Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 21
Menifee Mayor and City Council May 18, 2022
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Item Title: 10.14
Agreement for Murrieta Road Resurfacing Phase II
Item Page Number: 22
Menifee Mayor and City Council May 18, 2022
CITY OF MENIFEE
SUBJECT: Amendment for On-Call Inspection Services Agreement MEETING DATE: May 18, 2022
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Approve and authorize the City Manager to execute Amendment No. 4 to Professional Services Agreement with D.R. Bechter Consulting for on-call construction inspection services in an amount not-to-exceed $30,000, for a total agreement amount of $478,000.
DISCUSSION
The Public Works Land Development Division is responsible for processing and approving developer submittals for private residential, commercial, and industrial developments. Each of these development types require multiple construction inspections to ensure facilities are constructed safely, per plan, and in alignment with City Standards. The City continues to experience unprecedented growth with many large development projects currently active in the post-entitlement phase.
In fiscal year 2020/21 the City Council approved a Professional Services Agreement (“Agreement”) with D.R. Bechter Consulting (“D.R. Bechter”) to provide on-call construction inspection services to supplement the work of in-house staff. Three amendments to the agreement have been approved as follows:
In June 2021, Amendment No. 1 was approved, extending the services through fiscal year 2021/22 to supplement staff and support development and encroachment permit inspections while recruitments were active to fill inspector vacancies. In December 2021, the City Council approved Amendment No. 2, increasing the agreement amount for D.R. Bechter to continue to provide services while assisting in the transition of inspection work to new in-house staff and to provide nightwork inspection oversight for several utility projects in the City.
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 1
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
Amendment No. 4 D.R. Bechter
May 18, 2022
1 0
0 5
In March, 2022, the City Council approved Amendment No. 3, to supplement existing staff resources by supporting inspection of night work being performed on large utility projects.
Due to the continued fast pace of construction on large development projects and major utility infrastructure projects, the Construction Division in Public Works continues to have a higher demand for construction inspection than can be met with current staffing levels. The proposed Amendment No. 4 with D.R. Bechter is required to ensure the City remains responsive to current construction inspection requests. Amendment No. 4 would increase the current contract amount of $448,000 by $30,000 for a total contract not-to-exceed amount of $478,000. It is important to note that this amount represents the agreement’s collective compensation amounts from both fiscal year 2020/21 and 2021/22 and that all costs associated with contract inspection services are recoverable and supported by pre-paid developer deposits.
STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government
FISCAL IMPACT
There is no additional budget appropriation needed for this item. Associated funding required for proposed Amendment No. 4 in the amount of $30,000 is available balance of FY2021/22 budget, under Account 100-4551-52825 (Professional Services (Recoverable)). Additionally, as noted in the discussion section, all costs associated with contract inspection services are recoverable and supported by pre-paid developer deposits.
ATTACHMENTS
1. Original Agreement with D.R. Bechter
2. Amendment No. 1
3. Amendment No. 2
4. Amendment No. 3
5. Amendment No. 4
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 2
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 3
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 4
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 5
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 6
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 7
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 8
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 9
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 10
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 11
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 12
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 13
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 14
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 15
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 16
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 17
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 18
Menifee Mayor and City Council May 18, 2022
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 19
Menifee Mayor and City Council May 18, 2022
AMENDMENT NO. 1 TO
AGREEMENT BETWEEN D.R. BECHTER CONSULTING
AND THE CITY OF MENIFEE FOR
FY2020/21 & FY21/22 ON-CALL CONSTRUCTION INSPECTION SERVICES (RECOVERABLE)
This is Amendment No. 1 to that certain AGREEMENT for Professional Services Agreement (“Agreement”) made on between the City of Menifee (“City”) and D.R. BECHTER CONSULTING (“Consultant”) for FY2020/21 & FY21/22 ON -CALL CONSTRUCTION INSPECTION SERVICES (RECOVERABLE) which Amendment No. 1 is made and entered into on _________________, 2021 to increase the scope of work and compensation amount as indicated below:
1. Section 1.1, “Term of Services” is amended to read as follows:
1.1 Term of Services. The term of this Agreement shall begin on the July 1, 2020 and shall end on June 30, 2022 unless the term of the Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement, as provided for in Section 8.
2. Section 1.6, “Covid-19 Safety” is included to read as follows:
1.6 Covid-19 Safety. If Consultant enters City property or meets in person with City employees during the performance of the Services, Consultant shall comply with all State, County, and local emergency orders, directives, protocols, and best practices related to the COVID-19 pandemic, including, but not limited to: (A) wearing facial coverings, (B) maintaining adequate physical distancing when possible, (C) regular hand washing, and (D) regular hand sanitizing.
3. Section 2, “Compensation” is amended to increase the maximum compensation by $110,000.00 (TWO HUNDRED EIGHTEEN THOUSAND FOUR HUNDRED DOLLARS AND ZERO CENTS), and is amended to read as follows:
Section 2. COMPENSATION.
City hereby agrees to pay Consultant a sum not to exceed $328,000.00 (THREE
HUNDRED TWENTY EIGHT THOUSAND DOLLARS AND ZERO CENTS ) notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and rei mbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person.
4. Exhibit A, Scope of Services is supplemented to include Amendment No. 1 - Exhibit A:
FY2020/21 & FY21/22 ON-CALL CONSTRUCTION INSPECTION SERVICES, which is DocuSign Envelope ID: 1139117F-8E94-4B71-BDC4-3DF595B3BF73 DocuSign Envelope ID: 8208821B-19F9-4E1C-A966-7466918BE081 June 16
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 20
Menifee Mayor and City Council May 18, 2022
Professional Services Amendment No. 1 with D.R. Bechter Consulting attached as Exhibit A hereto. “ Amendment No. 1- Exhibit A: FY2020/21 & FY21/22 ON - CALL CONSTRUCTION INSPECTION SERVICES” is not intended to replace the original Exhibit A to the Agreement, but inst ead to updates the facility sites and compensation amount listed in the original Exhibit A to the Agreement.
5. All other terms and conditions of the Agreement remain in full force and effect.
DocuSign Envelope ID: 1139117F-8E94-4B71-BDC4-3DF595B3BF73 DocuSign Envelope ID: 8208821B-19F9-4E1C-A966-7466918BE081 Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 21
Menifee Mayor and City Council May 18, 2022
Professional Services Amendment No. 1 with D.R. Bechter Consulting CITY OF MENIFEE D.R. BECHTER CONSULTING
_______________________________ _______________________________ Armando G. Villa, City Manager Danis Bechter, President
Attest: ________________________________
Danis Bechter, Secretary
_______________________________
Sarah A. Manwaring, City Clerk
Approved as to Form:
_______________________________
Jeffrey T. Melching, City Attorney
DocuSign Envelope ID: 1139117F-8E94-4B71-BDC4-3DF595B3BF73 DocuSign Envelope ID: 8208821B-19F9-4E1C-A966-7466918BE081 Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 22
Menifee Mayor and City Council May 18, 2022
Professional Services Amendment No. 1 with D.R. Bechter Consulting
Amendment No. 1- Exhibit A: FY2020/21 & FY21/22 ON-CALL CONSTRUCTION
INSPECTION SERVICES
Consultant shall provide the following services:
• Comprehensive On Call Construction Inspection Services
extended to include Fiscal Year 2021/22 (July 1, 2021 through June 30, 2022) at the hourly rate established in the originally executed agreement.
DocuSign Envelope ID: 1139117F-8E94-4B71-BDC4-3DF595B3BF73 DocuSign Envelope ID: 8208821B-19F9-4E1C-A966-7466918BE081 Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 23
Menifee Mayor and City Council May 18, 2022
OocuSign Envelope lD: E50D0085-C379-4137-82AD-E77EEF.tO7BCB AMENDMENT NO. 2 TO
AGREEMENT BETWEEN D.R. BECHTER CONSULTING
AND THE CITY OF MENIFEE FOR FY2O2O/21 &FY21122 ON-CALL CONSTRUCTION
INSPECTION SERVICES (RECOVERABLE)
INSPECTION SERVICES (RECOVERABLE) which Amendment No. 2 is made and entered into 2021 to increase the compensation amount as indicated below:6n December 15 Section 2, "Compensataon" is amended to increase the maximum compensation by $60,000.00 (SIXTY THOUSAND DOLLARS AND ZERO CENTS), and is amended to read as follows:
Section 2. COMPEN SATION.
City hereby agrees to pay Consultant a sum not to exceed $388,OOO.OO (THREE HUNDRED EtGHTy ETGHT THOUSAND OOLLARS ANO ZERO CENTS)
notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement. ln the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person.
2. All other terms and conditions of the Agreement remain in full force and effect This is Amendment No.2 to that certain AGREEMENT for professional Services Agreement ("Agreement") made on Juty 1,2020 between the City of Menifee (,,City,,) and D.R.
BECHTER CONSULTING ("Consultant") for FY2020t21 &Fy21't22ON-CALL CONSTRUCTTON Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 24
Menifee Mayor and City Council May 18, 2022
DocuSign Envelope lD: E50D0085-C379-4137-82AD-E77EEF107BC8 CITY OF t\ilENIFEE
Villa, City Manager
Attest:
D.R. Bechter Consulting
0^;s fu,i'tw
, President
O*rs fu)lw
nrs r, Secretary
G
aral," 0.. lraatawanua
,Btdlf 1r(9qvlanwaflng, City Clerk
Approved as to Form
elch ing,ci Attorney
Professional Services Amendment No. 2 with D.R. Bechter Consulting Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 25
Menifee Mayor and City Council May 18, 2022
AMENDMENT NO. 3 TO
AGREEMENT BETWEEN D.R. Bechter Consulting
AND THE CITY OF MENIFEE FOR FY2020/21 & FY21/22 ON-CALL CONSTRUCTION
INSPECTION SERVICES (RECOVERABLE)
This is Amendment No. 3 to that certain AGREEMENT for Professional Services Agreement (“Agreement”) made on July 1, 2020 between the City of Menifee (“City”) and D.R.
Bechter Consulting (“Consultant”) for FY2020/21 & FY21/22 ON -CALL CONSTRUCTION INSPECTION SERVICES (RECOVERABLE) which Amendment No. 3 is made and entered into on ______________, 2022 to increase compensation amount as indicated below:
1. Section 2, “Compensation” is amended to increase the maximum compensation by $60,000.00 (TWO HUNDRED EIGHTEEN THOUSAND FOUR HUNDRED DOLLARS AND ZERO CENTS), and is amended to read as follows:
Section 2. COMPENSATION.
City hereby agrees to pay Consultant a sum not to exceed $448,000.00 (FOUR
HUNDRED FORTY EIGHT THOUSAND DOLLARS AND ZERO CENTS )
notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimb ursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person.
2. All other terms and conditions of the Agreement remain in full force and effect.
DocuSign Envelope ID: 25BDE44F-74C9-4285-A23E-6FA236822371 DocuSign Envelope ID: 96D9FF65-BAAE-4CAF-86CD-47E26F056A0F March 2nd
Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 26
Menifee Mayor and City Council May 18, 2022
Professional Services Amendment No. 3 with D.R. Bechter Consulting CITY OF MENIFEE D.R. Bechter Consulting
_______________________________ _______________________________ Armando G. Villa, City Manager Danis Bechter, President
Attest: ________________________________
Danis Bechter, Secretary
_______________________________
Stephanie Roseen, Acting City Clerk
Approved as to Form:
_______________________________
Jeffrey T. Melching, City Attorney
DocuSign Envelope ID: 25BDE44F-74C9-4285-A23E-6FA236822371 DocuSign Envelope ID: 96D9FF65-BAAE-4CAF-86CD-47E26F056A0F Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 27
Menifee Mayor and City Council May 18, 2022
AMENDMENT NO. 4 TO
AGREEMENT BETWEEN D.R. Bechter Consulting
AND THE CITY OF MENIFEE FOR FY2020/21 & FY21/22 ON-CALL CONSTRUCTION
INSPECTION SERVICES (RECOVERABLE)
This is Amendment No. 4 to that certain AGREEMENT for Professional Services Agreement (“Agreement”) made on July 1, 2020 between the City of Menifee (“City”) and D.R.
Bechter Consulting (“Consultant”) for FY2020/21 & FY21/22 ON -CALL CONSTRUCTION INSPECTION SERVICES (RECOVERABLE) which Amendment No. 4 is made and entered into on ______________, 2022 to increase the scope of work and compensation amount as indicated below:
1. Section 2, “Compensation” is amended to increase the maximum compensation by $30,000.00 (THIRTY THOUSAND DOLLARS AND ZERO CENTS), and is amended to read as follows:
Section 2. COMPENSATION.
City hereby agrees to pay Consultant a sum not to exceed $478,000.00 (FOUR
HUNDRED SEVENTY EIGHT THOUSAND DOLLARS AND ZERO CENTS ) notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement. In the event o f a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person.
2. All other terms and conditions of the Agreement remain in full force and effect.
DocuSign Envelope ID: 3A92467A-2E24-4C4E-9C3A-0BEEDBE9CF84 Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 28
Menifee Mayor and City Council May 18, 2022
Professional Services Amendment No. 4 with D.R. Bechter Consulting CITY OF MENIFEE D.R. Bechter Consulting
_______________________________ _______________________________ Armando G. Villa, City Manager Danis Bechter, President
Attest: ________________________________
Danis Bechter, Secretary
_______________________________
Stephanie Roseen, Acting City Clerk
Approved as to Form:
_______________________________
Jeffrey T. Melching, City Attorney
DocuSign Envelope ID: 3A92467A-2E24-4C4E-9C3A-0BEEDBE9CF84 Item Title: 10.15
Amendment for On-Call Inspection Services Agreement
Item Page Number: 29
Menifee Mayor and City Council May 18, 2022
CITY OF MENIFEE
SUBJECT: Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch
MEETING DATE: May 18, 2022
TO: Mayor and City Council
PREPARED BY: Jizelle Sandoval, Financial Analyst
REVIEWED BY: Rochelle Clayton, Assistant City Manager
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Adopt a Resolution establishing Community Facilities District No. 2022-1 (Quartz Ranch) of the City of Menifee (“CFD No. 2022-1” or “CFD”), located at the intersection of La Peidra Road and Evans Road, and calling an election; and
2. Adopt a Resolution determining the necessity to incur bonded indebtedness for Community Facilities District No. 2022-1 of the City of Menifee; and
3. Adopt a Resolution certifying election results for Community Facilities District No. 2022-1 of the City of Menifee; and
4. Introduce an Ordinance authorizing the levy of special taxes within Community Facilities District No. 2022-1 of the City of Menifee; and
5. Approve an Acquisition, Construction and Funding Agreement with Lennar Homes; and
6. Approve a Joint Community Facilities Agreement with Eastern Municipal Water District; and
7. Approve a Joint Community Facilities Agreement with Menifee Union School District.
DISCUSSION
At its meeting on February 22, 2022, the Finance Committee reviewed the proposed CFD No. 2022-1 and recommended submittal to the City Council for approval at the April 6, 2022 City Council meeting.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 1
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
Community Facilities District No. 2022-1 (Quartz Ranch) May 18, 2022
9 9
9 On April 6, 2022, the City Council adopted Resolution No. 22-1133 (the “Resolution of Intention”), declaring its intent to commence the formation of Community Facilities District No. 2022-1. The next step in the proceedings to hold a public hearing on May 18, 2022, to conduct an election in the CFD and to declare the results of that election.
The developer, Lennar Homes of California, LLC, a California limited liability company (“Lennar Homes”), is proposing to develop a residential community of 379 homes on approximately 80 gross acres within the City. The property is located at the intersection of La Peidra Road and Evans Road. Lennar Homes has requested that the City form CFD No. 2022-1 in accordance with the Mello-Roos Community Facilities Act of 1982, as amended, to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds in an amount not-to-exceed $27,000,000.
Lennar Homes requested that the boundaries of CFD No. 2022-1 include the area described in “Attachment A” of the Resolution of Intention and that special taxes be levied within the boundaries of CFD No. 2022-1 in accordance with the Rate and Method of Apportionment (the “RMA”) as described in “Attachment C” to the Resolution of Intention, which are included as appendices to the attached Public Hearing Report.
The Resolution of Intention called for a public hearing to be held on May 18, 2022, for the City Council to formally consider the approval of the formation of the CFD and the approval of the levy of the special taxes within the CFD. Notice of the public hearing was published in the Press Enterprise and mailed to Lennar Homes in accordance with the Mello-Roos Act.
In connection with the public hearing, Spicer Consulting Group has prepared a Public Hearing Report which describes and analyzes the facilities to be financed by the CFD and the estimated costs of such facilities. Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt which, together, approve the formation of the CFD and the levy of the special taxes in accordance with the RMA and determines the necessity for the CFD to issue bonds in an amount not-to- exceed $27,000,000, and currently estimated to be $21,725,000 based on current fiscal year dollars (as indicated in the Fiscal Impact section). Such Resolutions call for an election to submit to the qualified voters in the CFD, ballot measures on the approval of the special taxes, the issuance of the bonds and an appropriations limit for the CFD.
In addition, the Resolution of Formation, approves the execution and delivery of the following agreements in the forms presented to the City Council: (i) the Acquisition, Construction and Funding Agreement with Lennar Homes (the “Funding Agreement”); and (ii) the Joint Community Facilities Agreement with Lennar Homes and Eastern Municipal Water District (“JCFA-EMWD”); and (iii) the Joint Community Facilities Agreement with Lennar Homes and Menifee Union School District (“JCFA-MUSD” and together with the JCFA-EMWD, the “Joint Community Facilities Agreements”). The Funding Agreement sets forth the terms, among others, pursuant to which the CFD will finance improvements to be constructed by Lennar Homes. In accordance with the Mello-Roos Act, the approval and execution of the Joint Community Facilities Agreements allow for the CFD to finance improvements to be owned and operated by Eastern Municipal Water District and by Menifee Union School District, which benefit the development within the Community Facilities District.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 2
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
Community Facilities District No. 2022-1 (Quartz Ranch) May 18, 2022
9 9
9 On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County, attached for reference, certifying that there are no registered voters residing within the boundaries of the CFD. Accordingly, under the Mello-Roos Act, only landowners in the CFD are eligible to vote at the election with each owner having one vote for each acre (or portion thereof) that they own within the CFD. Lennar Homes, as the sole landowner in the CFD, has executed a consent and waiver of certain election procedures, including certain timing requirements with respect to the election in accordance with the Mello-Roos Act. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt, the City Clerk will conduct the election. The City Clerk will announce the election results and the City Council will be asked to adopt the Resolution Certifying the Election Results. Based on upon certification that two thirds of the votes cast are in favor of the propositions voted upon, the Resolution Certifying the Election Results directs the City Clerk to record a notice of special tax lien on the property within the CFD. The City Council will then be asked to introduce the Ordinance authorizing the levy of the special tax within the CFD in accordance with the RMA.
STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government
FISCAL IMPACT
The CFD would be required to annually levy special taxes on all of the taxable property within the CFD in order to pay for the costs of facilities, debt service on bonds and administration of the CFD. Any bonds issued by the CFD are not obligations of the City and would be secured solely by the special taxes levied in the CFD. Lennar Homes has made a deposit to pay for the costs of forming the CFD. The Resolution of Intention, Section 13 approved a form of a Reimbursement Agreement to reimburse Lennar Homes for these costs if and when bonds are issued for CFD.
The cost of fees and facilities are indicated on pages 3-4 of the Public Hearing CFD Report and are listed in the table on the following page:
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 3
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
Community Facilities District No. 2022-1 (Quartz Ranch) May 18, 2022
9 9
9 ATTACHMENTS
1. Resolution Establishing CFD No. 2022-1
2. Resolution Determining Necessity to Incur Debt for CFD No. 2022-1 Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 4
Menifee Mayor and City Council May 18, 2022
City of Menifee Staff Report
Community Facilities District No. 2022-1 (Quartz Ranch) May 18, 2022
9 9
9 3. Resolution Certifying Election Results for CFD No. 2022-1
4. Ordinance Authorizing the Levy of Special Taxes
5. Public Hearing CFD Report
6. Certificate of Registrar of Voters
7. Landowner Waiver - Lennar Homes
8. Acquisition Construction and Funding Agreement CFD No. 2022-1
9. JCFA-EMWD (Eastern Municipal Water District)
10. JCFA-MUSD (Menifee Union School District)
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 5
Menifee Mayor and City Council May 18, 2022
4878-9952-0795v3/200299-0009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MENIFEE ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 2022-1 (QUARTZ RANCH) OF THE CITY OF MENIFEE,
AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN,
CALLING AN ELECTION AND APPROVING AND
AUTHORIZING CERTAIN ACTIONS RELATED THERETO
WHEREAS, the City Council (the “City Council”) of the City of Menifee (the “City”) has heretofore adopted Resolution No. 22-1133 stating its intention to form Community Facilities District No. 2022-1 (Quartz Ranch) of the City of Menifee (“Community Facilities District No. 2022-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, a copy of Resolution No. 22-1133 setting forth a description of the proposed boundaries of Community Facilities District No. 2022-1, the facilities and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2022-1 and to levy a special tax (the “Special Tax”) and to incur bonded indebtedness in the maximum aggregate amount of up to $27,000,000 therein to finance the facilities and incidental expenses described in Resolution No. 22-1133; and
WHEREAS, on May 18, 2022, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2022-1, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District; and WHEREAS, at the May 18, 2022 public hearing there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
WHEREAS, at the May 18, 2022 public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2022-1, the levy of the Special Tax and the issuance of bonded indebtedness were heard and full and fair hearings were held; and
WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) set forth in Attachment A hereto, which are described in more detail in the Engineer’s Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed Special Tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District, the levy of the Special Tax and the issuance of bonded indebtedness therein; and
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 6
Menifee Mayor and City Council May 18, 2022
2 4878-9952-0795v3/200299-0009
4 4
9 2
2 WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2022-1 for each of the 90 days prior to May 18, 2022 and that the qualified electors in Community Facilities District No. 2022-1 are the landowners within the District; and WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2022-1 and to call an election therein to authorize (i) the levy of the Special Tax pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment C to Resolution No. 22-1133 (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Community Facilities District No. 2022-1; and
WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into an Acquisition, Construction and Funding Agreement (the “Agreement”) with Lennar Homes of California, LLC, a California limited liability company (the “Developer”) and the form of the Agreement is on file with the City Clerk; and WHEREAS, in connection with the proposed formation of the District, the City proposes to enter into Joint Community Facilities Agreements (each a “JFCA” and together, the “JCFAs”) with Eastern Municipal Water District (the “Water District”) and the Menifee Union School District (the “School District”) and the Developer, relating to certain facilities proposed to be financed by the District and owned and operated by the Water District and the School District and the forms of the JCFAs are on file with the City Clerk.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1.Each of the above recitals is true and correct.
Section 2.A community facilities district to be designated “Community Facilities District No. 2022-1 (Quartz Ranch) of the City of Menifee” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
Section 3.The boundaries of Community Facilities District No. 2022-1 are established as shown on the map designated “Community Facilities District No. 2022-1 (Quartz Ranch) City of Menifee, County of Riverside, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor- County Clerk-Recorder’s office of the County of Riverside in Book No. 88 Page Nos. 65-68 on April 12, 2022 as Instrument No. 2022-0173403.
Section 4.The types of Facilities and Incidental Expenses authorized to be provided for Community Facilities District No. 2022-1 are those set forth in Attachment A attached hereto.
The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the Engineer’s Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 7
Menifee Mayor and City Council May 18, 2022
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2 The City is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds and determines that the proposed Facilities are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Facilities to be financed, including those to be financed pursuant the JCFAs to be entered into with the Water District and the School District, benefit residents of the City and the future residents of the District.
Section 5.Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the rates set forth in the Rate and Method on all non-exempt property within the District sufficient to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the District, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds and the District. The Rate and Method is described in detail in Attachment C to Resolution No. 22-1133 and incorporated herein by this reference, and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Engineer’s Report, which is incorporated by reference herein, the Special Tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2022-1 will place on the Facilities and on the benefit that each parcel will derive from the right to access the Facilities and, accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each assessor’s parcel in accordance with the Rate and Method provided, however, that the Special Tax shall not be levied after Fiscal Year 2064-65. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property or the assessed value of real property.
If Special Taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied after Fiscal Year 2064-65, and (iii) under no circumstances will the Special Tax levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.
The City Manager of the City of Menifee, or his or her designee, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.
Section 6.In the event that a portion of the property within Community Facilities District No. 2022-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified in the Rate and Method, or in the event of delinquencies in the payment of Special Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 8
Menifee Mayor and City Council May 18, 2022
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2 Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2022-1, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within Community Facilities District No. 2022-1 which is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds of the District, or to prevent the District from defaulting on any of its other obligations or liabilities; provided, however, under no circumstances will the Special Tax levied against any parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the Special Tax will be set in accordance with the Rate and Method. The obligation to pay Special Taxes may be prepaid only as set forth in Section G of the Rate and Method.
Section 7.Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax by the District ceases.
Section 8.Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2022-1, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2022-1 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2022-1.
Section 9.It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2022-1 for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No. 2022-1 as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 2022-1.
Section 10.Written protests against the establishment of the District have not been filed by one-half or more of the registered voters within the boundaries of the District or by the property owners of one-half (1/2) or more of the area of land within the District. The City Council hereby finds that the proposed Special Tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.
Section 11.An election is hereby called for Community Facilities District No. 2022-1 on the propositions of levying the Special Tax on the property within Community Facilities District No. 2022-1 and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Attachment B.
Section 12.The date of the election for Community Facilities District No. 2022-1 on the propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and establishing an appropriations limit for the District shall be May 18, 2022, or such later date as is consented to by the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) of the City of Menifee; provided that, if the election is to take place sooner than 90 days after May 18, Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 9
Menifee Mayor and City Council May 18, 2022
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2 2022, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the close of the public hearing on May 18, 2022. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Menifee insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2022-1. The City Clerk has secured a certificate from the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of April 12, 2022. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding May 18, 2022, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2022-1, as provided in Section 53326 of the Act. The sole landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on May 18, 2022, which waiver is on file with the City Clerk.
Section 13.The preparation of the Engineer’s Report is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2022-1. The Engineer’s Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.
Section 14.The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2022-1. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.
Section 15.The form of the Agreement on file with the City Clerk is approved as to form, and each of the City Manager, Assistant City Manager, and their written designees, is authorized to execute the Agreement in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof. Notwithstanding City Policy No. FN-09, the City Council hereby waives the requirement for the approval of the Agreement prior to the adoption of the resolution of intention to establish the District. The City Council hereby finds that such waiver is reasonable given that the projects as listed in the Agreement are expected to provide public benefits to the future residents in the District.
Section 16.The form of the JCFAs on file with the City Clerk is approved as to form, and each of the City Manager, Assistant City Manager, and their written designees, is authorized to execute the JCFA in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 10
Menifee Mayor and City Council May 18, 2022
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2 Section 17.This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 18th day of May, 2022.
ATTEST: APPROVED:
Stephanie Roseen, Acting City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM:
Jeffrey T. Melching, City Attorney
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 11
Menifee Mayor and City Council May 18, 2022
A-1
4878-9952-0795v3/200299-0009
ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2022-1
The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general government facilities, animal shelter facilities, fire and safety, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of Eastern Municipal Water District which are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities”), and (iii) interim and permanent school facilities of Menifee Union School District and Perris Union High School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the “School Facilities” and together, with the City Facilities and the Water Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 12
Menifee Mayor and City Council May 18, 2022
B-1
4878-9952-0795v3/200299-0009
ATTACHMENT B
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(QUARTZ RANCH) OF THE CITY OF MENIFEE
SPECIAL TAX AND SPECIAL BOND ELECTION
May 18, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-1 (Quartz Ranch) of the City of Menifee (the
“District”) incur an indebtedness and issue bonds in the maximum principal amount of $27,000,000, with interest
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 21-
1133 of the City Council of the City of Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
21-1133 of the City Council of the City of Menifee be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 21-1133,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2022-1 be an amount equal to $10,000,000?
YES______
NO_______
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 13
Menifee Mayor and City Council May 18, 2022
4876-7846-7867v3/200299-0009
RESOLUTION NO. _____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MENIFEE ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2022-1 (QUARTZ
RANCH) OF THE CITY OF MENIFEE DETERMINING THE
NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN
AMOUNT NOT TO EXCEED $27,000,000 WITHIN COMMUNITY
FACILITIES DISTRICT NO. 2022-1 (QUARTZ RANCH) OF THE
CITY OF MENIFEE AND CALLING AN ELECTION THEREIN
WHEREAS, on April 6, 2022, the City Council of the City of Menifee (the “City Council”) adopted Resolution No. 22-1133 stating its intention to form Community Facilities District No. 2022-1 (Quartz Ranch) of the City of Menifee (“Community Facilities District No. 2022-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”); and
WHEREAS, on April 6, 2022, the City Council also adopted Resolution No. 22-1134 stating its intention to incur bonded indebtedness in the amount of up to $27,000,000 within proposed Community Facilities District No. 2022-1 to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Attachment B to Resolution No. 22-1133, and (2) the incidental expenses to be incurred in financing such public facilities and services and forming and administering the District, as identified in Attachment B to Resolution No. 22-1133; and
WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2022-1 and to incur bonded indebtedness in the amount of up to $27,000,000 within the boundaries of proposed Community Facilities District No. 2022-1; and
WHEREAS, on May 18, 2022, this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2022-1, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 22-1133 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2022-1 for the purposes described in Resolution No. 22- 1133; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2022-1, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a full and fair hearing was held; and
WHEREAS, the City Council subsequent to such hearing adopted Resolution No. 22- ___ establishing Community Facilities District No. 2022-1 (the “Resolution of Formation”) and authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) described in Attachment B thereto; and WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness within the District, to declare the purpose for said debt, and to authorize the Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 14
Menifee Mayor and City Council May 18, 2022
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3 submittal of a proposition to issue bonded indebtedness to the voters of the District, being the landowners within the proposed District, all as authorized and required by law.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1.It is necessary to incur bonded indebtedness in one or more series in a maximum aggregate principal amount not to exceed $27,000,000 within Community Facilities District No. 2022-1.
Section 2.The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities and financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2022-1, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act.
Section 3.The whole of the property within Community Facilities District No. 2022-1, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 22-1133 as Attachment C, shall pay for the bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation.
Section 4.The maximum term of any series of bonds to be issued to finance Facilities shall in no event exceed thirty-five (35) years from the date of issuance of the bonds, or such longer term as is then permitted by law.
Section 5.The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.
Section 6.The bonds may bear a variable or fixed interest rate, provided that such variable rate or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act, or any other applicable provision of law limiting the maximum interest rate on the bonds.
Section 7.Pursuant to Section 53351 of the Act, a special election is hereby called for Community Facilities District No. 2022-1 on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $27,000,000 shall be in the form of Proposition A set forth in Attachment A hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying a special tax within the District as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Attachment A, and on the proposition of establishing an appropriations limit for the District, which proposition shall be in the form of Proposition C set forth in Attachment A.
Section 8.The date of the special election for Community Facilities District No. 2022-1 on the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax and setting an appropriations limit shall be May 18, 2022, or such later date as is consented to Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 15
Menifee Mayor and City Council May 18, 2022
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3 by the City Clerk, or a Deputy City Clerk of the City (referred to herein as the “City Clerk”); provided that, if the election is to take place sooner than 90 days after May 18, 2022, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the public hearing on May 18, 2022. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Menifee insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation and this resolution, and all ballots shall be received by and the City Clerk shall close the election by 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2022-1. The City Clerk has secured a certificate of the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of April 12, 2022. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding May 18, 2022, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2022-1, as provided in Section 53326 of the Act. The sole landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on May 18, 2022, which waiver is on file with the City Clerk.
Section 9.This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 18th day of May, 2022.
ATTEST: APPROVED:
Stephanie Roseen, Acting City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM:
Jeffrey T. Melching, City Attorney
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 16
Menifee Mayor and City Council May 18, 2022
A-1
4876-7846-7867v3/200299-0009
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(QUARTZ RANCH) OF THE CITY OF MENIFEE
SPECIAL TAX AND SPECIAL BOND ELECTION
__________, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-1 (Quartz Ranch) of the City of Menifee (the
“District”) incur an indebtedness and issue bonds in the maximum principal amount of $27,000,000, with interest
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 22-
1133 of the City Council of the City of Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
22-1133 of the City Council of the City of Menifee be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 22-1133,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2022-1 be an amount equal to $10,000,000?
YES______
NO_______
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 17
Menifee Mayor and City Council May 18, 2022
4886-6412-9051v3/200299-0009
RESOLUTION NO. 22-___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MENIFEE, CALIFORNIA ACTING IN ITS CAPACITY AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2022-1 (QUARTZ RANCH) OF THE CITY OF MENIFEE
CERTIFYING ELECTION RESULTS
WHEREAS, the City Council of the City of Menifee called and duly held an election on May 18, 2022 within the boundaries of Community Facilities District No. 2022-1 (Quartz Ranch) of the City of Menifee (“Community Facilities District No. 2022-1” or the “District”) pursuant to Resolution Nos. __-__ and __-__ for the purpose of presenting to the qualified electors within the District Propositions A, B and C, attached hereto as Attachment A; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of which is attached hereto as Attachment B.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1.Each of the above recitals is true and correct and is adopted by the legislative body of the District.
Section 2.Propositions A, B and C presented to the qualified electors of the District on May 18, 2022 were approved by more than two-thirds of the votes cast at said election and Propositions A, B and C each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issue bonds in an amount not to exceed $27,000,000 specified in Proposition A.
Section 3.The City Clerk is hereby directed to record in the Assessor-County Clerk- Recorder’s office of the County of Riverside within fifteen days of the date hereof a notice of special tax lien with respect to the District which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 18
Menifee Mayor and City Council May 18, 2022
2 4886-6412-9051v3/200299-0009
4 4
9 2
5 Section 4.This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 18th day of May, 2022.
ATTEST: APPROVED:
Stephanie Roseen, Acting City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM:
Jeffrey T. Melching, City Attorney
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 19
Menifee Mayor and City Council May 18, 2022
4886-6412-9051v3/200299-0009
ATTACHMENT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(QUARTZ RANCH) OF THE CITY OF MENIFEE
SPECIAL TAX AND SPECIAL BOND ELECTION
__________, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-1 (Quartz Ranch) of the City of Menifee (the
“District”) incur an indebtedness and issue bonds in the maximum principal amount of $27,000,000, with interest
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 21-
1133 of the City Council of the City of Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
21-1133 of the City Council of the City of Menifee be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 21-1133,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2022-1 be an amount equal to $10,000,000?
YES______
NO_______
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 20
Menifee Mayor and City Council May 18, 2022
4886-6412-9051v3/200299-0009
ATTACHMENT B
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Sarah Manwaring, City Clerk of the City of Menifee, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Community Facilities District No. 2022-1 (Quartz Ranch) of the City of Menifee (the “City”). The election was held in the City Council Chambers, 29844 Haun Road, Menifee, California, on May 18, 2022. I caused to be delivered ballots to each qualified elector. ____ (__) ballots were returned.
I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:
PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:
NO: NO: NO:
TOTAL: TOTAL: TOTAL:
Dated this 18th day of May, 2022.
Sarah Manwaring
Sarah Manwaring, City Clerk
City of Menifee
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 21
Menifee Mayor and City Council May 18, 2022
4870-6557-4939v3/200299-0009
ORDINANCE NO. 2022-___
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MENIFEE, CALIFORNIA ACTING IN ITS CAPACITY AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT
NO. 2022-1 (QUARTZ RANCH) OF THE CITY OF MENIFEE
AUTHORIZING THE LEVY OF SPECIAL TAXES
WHEREAS, on April 6, 2022, the City Council (the “City Council”) of the City of Menifee (the “City”) adopted Resolution No. 22-1133 declaring its intention to form Community Facilities District No. 2022-1 (Quartz Ranch) of the City of Menifee (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 22-1134 declaring its intention to incur bonded indebtedness for the District; and WHEREAS, on May 18, 2022, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 22-1133 and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of up to $27,000,000 of bonded indebtedness as described in Resolution No. 22-1134; and WHEREAS, at the May 18, 2022 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the facilities described in Resolution No. 22-1133 and to secure the payment of up to $27,000,000 of bonded indebtedness of the District as described in Resolution No. 22-1133 (the “Bonds”) were heard and a full and fair hearing was held; and WHEREAS, on May 18, 2022, the City Council adopted Resolution Nos. __-___ and __- ___ which formed the District and called a special election within the District on May 18, 2022 on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and WHEREAS, on May 18, 2022, a special election was held within the District at which the qualified electors approved by more than a two-thirds vote Propositions A, B and C authorizing the levy of a special tax within the District for the purposes described in Resolution No. __-___, the issuance of the Bonds as described in Resolution No. __-___ and establishing an appropriations limit for the District; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 (QUARTZ RANCH) OF THE CITY OF MENIFEE ORDAINS AS FOLLOWS:
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 22
Menifee Mayor and City Council May 18, 2022
2 4870-6557-4939v3/200299-0009
4 4
9 2
4 Section 1.The above recitals are all true and correct.
Section 2.By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 22-1133, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities and services authorized to be financed by the District, and payment of all costs of administering the District.
Section 3.Each of the Mayor, the City Manager, the Deputy City Manager, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer-Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year, and with respect to the Special Tax, until the Bonds are paid in full, the facilities have been paid for, and provision has been made for payment of all of the administrative costs of the District.
Section 4.Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. __- ___ or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.
Section 5.All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. __-___.
Section 6.The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.
Section 7.As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund the Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 23
Menifee Mayor and City Council May 18, 2022
3 4870-6557-4939v3/200299-0009
4 4
9 2
4 Section 8.The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Menifee.
Section 9.The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.
Section 10.The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of Riverside, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.
Section 11.A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.
Section 12.This Ordinance shall take effect thirty days after its final passage.
PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this ___ day of ______, 2022.
ATTEST: APPROVED:
Sarah Manwaring, City Clerk Bill Zimmerman, Mayor
APPROVED AS TO FORM:
Jeffrey T. Melching, City Attorney
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 24
Menifee Mayor and City Council May 18, 2022
CITY OF MENIFEE
Public Hearing Report
COMMUNI TY FACILITIES DI STRICT NO. 20 22-1
(QUARTZ RANCH)
MAY 18 , 2022
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 25
Menifee Mayor and City Council May 18, 2022
Table of Contents
Sections P age _____________________________________________ 1 Introduction ________________________________________________ 1 2 Description of Facilities ______________________________________________ 2 3 Cost Estimate ________________________________________________ 3 4 Proposed Development _____________________________________________ 5 5 Rate and Method of Apportionment ____________________________________ 7 6 Certifications ________________________________________________ 8
Tables Page
3-1 Cost Estimate ________________________________________________ 3 5-1 Assigned Special Tax for Developed Property ____________________________ 7
Appendices P age _____________________________________________ A Rate and Method of Apportionment _____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 26
Menifee Mayor and City Council May 18, 2022
1 Introduction Page | 1
City of Menifee
CFD No. 2022-1 (Quartz Ranch)
Public Hearing Report
Background
On April 6, 2022, the City Council (the “City Council”) of the City of Menifee (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 20 22-1 (Quartz Ranch) of the City of M enifee (“CFD No. 2022-1” or “District”), Resolution No. 22-_____, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter
2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (“Act”).
CFD No. 2022-1 is currently comprised of approximately 80 gross acres within Tract Maps TR 28786, TR 28791, TR 28792, TR 28793, and TR 28794 including 379 proposed detached single family residential properties. The property is located at the intersection of La Peidra Road and Evans Road.
For a map showing the boundaries of CFD No. 2022-1 please see Appendix B.
Purpose of Public Hearing Report
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains the following:
1. A brief description of CFD No. 2022-1;
2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2022-1.
3. A brief description of the Boundaries of CFD No. 2022-1; and
4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 27
Menifee Mayor and City Council May 18, 2022
2 Description of Facilities Page | 2
City of Menifee
CFD No. 2022-1 (Quartz Ranch)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:
Description of the Facilities
A Community Facilities District may pay for facilities which may include all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied, provide for the pu rchase, construction, expansion, or reha bilitation for any real or other tangible property with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development and/or rehabilitation occurring within the District.
The types of facilities that are proposed by CFD No. 2022- 1 and financed with the proceeds of special taxes and bonds issued by CFD No. 2022-1 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, landscaping, roadway, traffic, administration and general government facilities, animal shelter facilities, fire and safety, law enforcement, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and auth orized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of Eastern Municipal Water District which are included in Eastern Municipal Water District’s water and sewe r capacity and connection fee programs (the “Water District Facilities”), and (iii) interim and permanent school facilities of Menifee Union School Distri ct, including classrooms, multi-purpose facilities, administration and auxiliary space at sc hool facilities, athletic fields, playgr ounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the “School Facilities”) (the City Facilities, the Water Facilities, and the School Facilities shall be referred to as the “F acilities”), and all appurtenances and appurtenant work in c onnection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities.
Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a) The cost of engineering, planning and designing the Facilities; and b) All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.
All costs associated with the creation of CFD No. 2022-1, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2022-1, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2022-1 and any obligations.
The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature.
The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2022-1.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 28
Menifee Mayor and City Council May 18, 2022
3 Cost Estimate Page | 3
City of Menifee
CFD No. 2022-1 (Quartz Ranch)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2022- 1 Bonds is estimated to be $18,773,629 based upon current dollars (Fiscal Year 2022-23). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2022-1 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2022-1 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be fores een today, and the actual incidental expenses may exceed these amounts accordingly.
Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Law Enforcement $87,549 $87,549
Fire Facilities $232,706 $232,706
Circulation $1,769,930 $1,769,930
General Government $386,959 $386,959
Public Use Facilities $58,366 $58,366
Quimby $81,485 $81,485
Parks – Improvements $250,519 $250,519
City Facilities $573,503 $573,503
Total City Fees $3,441,017 $3,441,017
City Facilities Total Bond Allocation(1)
Traffic Signals (Holland & Evans) $643,905 $643,905
Street & Traffic Signals (Murrieta & La Piedra (i.e. Mountain View)) $871,002 $871,002 Traffic Signal Land Acq. (Murrieta & La Piedra / Evans & Holland) $138,474 $138,474 Innerconnect - between Evans and La Piedra $163,400 $163,400 Traffic Signals (Evans & La Piedra) $76,161 $76,161
Utility Undergrounding - Rule 20 $761,608 $761,608
Park Improvements $3,000,000 $3,000,000
Total City Facilities $5,654,550 $5,654,550
Eastern Municipal Water District Total Bond Allocation(1) Sewer Financial Participation Charge $1,215,832 $1,215,832 Sewer Treatment Plant Capacity Charge $2,594,255 $2,594,255 Water Financial Participation Charge $2,304,699 $2,304,699 Water Supply Development Fee $140,988 $140,988
Meter Fee $142,883 $142,883
Total Eastern Municipal Water District $6,398,657 $6,398,657
Menifee Union School District Total Bond Allocation(1) School Fees $3,594,144 $3,279,405
Total Menifee Union School District $3,594,144 $3,279,405
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 29
Menifee Mayor and City Council May 18, 2022
3 Cost Estimate Page | 4
City of Menifee
CFD No. 2022-1 (Quartz Ranch)
Public Hearing Report
Table 3-1
Cost Estimate (Continued)
Perris Union High School District Total Bond Allocation(1) School Fees $1,074,505 $0
Total Perris Union High School District $1,074,505 $0
Total Eligible Fees/Improvements $20,162,873 $18,773,629 Incidental Financing Costs $2,951,371
Total Funded by Bond Proceeds $21,725,000
Total Fees/Improvements to be Funded by Developer $1,389,244 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 30
Menifee Mayor and City Council May 18, 2022
4 Proposed Development Page | 5
City of Menifee
CFD No. 2022-1 (Quartz Ranch)
Public Hearing Report
The CFD No. 2022-1 includes approximately 80 gross acres located at the intersection of La Peidra Road and Evans Road within Tract Maps TR 28786, TR 28791, TR 28792, TR 28793, and TR 28794 located in the City. The property within CFD No. 2022-1 is expected to be developed with 379 detached single family residential properties. As of Fiscal Year 2022-23 the proposed CFD No. 2022-1 includes the following Assessor's Parcel Numbers:
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
360-900-001 360-930-005 360-940- 001 360-942-015 360-950-014 360-900-002 360-930-006 360-940- 002 360-942-016 360-950-015 360-900-003 360-930-007 360-940- 003 360-942-017 360-950-016 360-900-004 360-930-008 360-940- 004 360-942-018 360-950-017 360-900-005 360-930-009 360-940- 005 360-942-019 360-960-007 360-900-006 360-930-010 360-940- 006 360-943-001 360-960-008 360-900-007 360-930-011 360-941- 001 360-943-002 360-960-009 360-900-008 360-930-012 360-941- 002 360-943-003 360-960-010 360-900-009 360-930-013 360-941- 003 360-943-004 360-960-011 360-900-010 360-930-014 360-950- 001 360-961-010 360-960-012 360-901-001 360-930-015 360-950- 002 360-961-011 360-920-001 360-901-002 360-930-016 360-950- 003 360-961-012 360-920-002 360-901-003 360-930-017 360-950- 004 360-961-013 360-920-003 360-901-004 360-931-001 360-950- 005 360-961-014 360-920-004 360-901-005 360-931-002 360-950- 006 360-961-015 360-920-005 360-901-006 360-931-003 360-950- 007 360-961-016 360-920-006 360-901-007 360-931-004 360-950- 008 360-961-017 360-920-007 360-901-008 360-931-005 360-960- 001 360-961-018 360-920-008 360-901-009 360-931-006 360-960- 002 360-961-019 360-920-009 360-901-010 360-931-007 360-960- 003 360-961-020 360-920-010 360-901-011 360-931-008 360-960- 004 360-961-021 360-920-011 360-901-012 360-931-009 360-960- 005 360-961-022 360-920-012 360-901-013 360-931-010 360-960- 006 360-961-023 360-920-013 360-901-014 360-931-011 360-961- 001 360-961-024 360-920-014 360-901-015 360-931-012 360-961- 002 360-961-025 360-920-015 360-901-016 360-931-013 360-961- 003 360-961-026 360-920-016 360-901-017 360-931-014 360-961- 004 360-961-027 360-920-017 360-901-018 360-931-015 360-961- 005 360-961-028 360-920-018 360-901-019 360-931-016 360-961- 006 360-961-029 360-920-019 360-901-020 360-931-017 360-961- 007 360-961-030 360-920-020 360-890-016 360-931-018 360-961- 008 360-961-031 360-920-021 360-890-017 360-931-019 360-962- 001 360-961-032 360-920-022 360-890-018 360-931-020 360-962- 002 360-961-033 360-920-023 360-890-019 360-931-021 360-962- 003 360-961-034 360-920-024 360-890-020 360-931-022 360-962- 004 360-961-035 360-920-025 360-890-021 360-931-023 360-962- 005 360-961-036 360-920-026 360-890-022 360-931-024 360-951- 001 360-961-037 360-920-027 360-890-023 360-931-025 360-951- 002 360-961-038 360-920-028 360-890-024 360-931-026 360-951- 003 360-961-039 360-920-029 360-890-025 360-931-027 360-951- 004 360-961-040 360-921-001 Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 31
Menifee Mayor and City Council May 18, 2022
4 Proposed Development Page | 6
City of Menifee
CFD No. 2022-1 (Quartz Ranch)
Public Hearing Report
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
360-890-026 360-931-028 360-951- 005 360-961-041 360-921-002 360-890-027 360-931-029 360-951- 006 360-961-042 360-921-003 360-890-028 360-931-030 360-951- 007 360-961-043 360-921-004 360-890-029 360-931-031 360-951- 008 360-961-044 360-921-005 360-890-030 360-931-032 360-951- 009 360-961-045 360-921-006 360-890-031 360-931-033 360-951- 010 360-953-001 360-910-001 360-890-032 360-931-034 360-951- 011 360-953-002 360-910-002 360-890-033 360-931-035 360-951- 012 360-953-003 360-910-003 360-890-034 360-931-036 360-951- 013 360-953-004 360-910-004 360-891-001 360-931-037 360-951- 014 360-953-005 360-910-005 360-891-002 360-931-038 360-951- 015 360-953-006 360-910-006 360-891-003 360-932-001 360-951- 016 360-953-007 360-910-007 360-891-004 360-932-002 360-963- 001 360-953-008 360-910-008 360-891-005 360-932-003 360-963- 002 360-953-009 360-910-009 360-902-001 360-932-004 360-952- 001 360-953-010 360-910-010 360-902-002 360-932-005 360-952- 002 360-953-011 360-910-011 360-902-003 360-932-006 360-952- 003 360-953-012 360-910-012 360-902-004 360-932-007 360-952- 004 360-940-017 360-910-013 360-902-005 360-932-008 360-952- 005 360-940-016 360-910-014 360-902-006 360-932-009 360-952- 006 360-940-015 360-910-015 360-902-007 360-932-010 360-952- 007 360-940-014 360-910-016 360-902-008 360-932-011 360-952- 008 360-940-013 360-911-001 360-902-009 360-932-012 360-942- 001 360-940-012 360-911-002 360-902-010 360-932-013 360-942- 002 360-940-011 360-911-003 360-902-011 360-932-014 360-942- 003 360-940-010 360-911-004 360-900-011 360-932-015 360-942- 004 360-940-009 360-911-005 360-900-012 360-932-016 360-942- 005 360-940-008 360-911-006 360-900-013 360-932-017 360-942- 006 360-940-007 360-911-007 360-900-014 360-932-018 360-942- 007 360-941-004 360-911-008 360-900-015 360-932-019 360-942- 008 360-941-005 360-911-009 360-900-016 360-932-020 360-942- 009 360-941-006 360-911-010 360-900-017 360-932-021 360-942- 010 360-950-009 360-911-011 360-930-001 360-932-022 360-942- 011 360-950-010 360-911-012 360-930-002 360-932-023 360-942- 012 360-950-011 360-911-013 360-930-003 360-932-024 360-942- 013 360-950-012 360-922-001 360-930-004 360-932-025 360-942-014 360-950-013
A map showing the boundaries of CFD No. 2022-1 is included in Appendix B.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 32
Menifee Mayor and City Council May 18, 2022
5 Rate and Method of Apportionment Page | 7
City of Menifee
CFD No. 2022-1 (Quartz Ranch)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2022-1 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2022-1, and provided further that CFD No. 2022-1 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.
All of the property located within CFD No. 2022-1, unless exempted by law or by the Rate and Method proposed for CFD No. 2022-1, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2022-1 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the co st of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Articl e XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“Prepayment of Special Tax”).
For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2022-1 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2064-65 Fiscal Year.
Table 5-1
Assigned Special Tax for Developed Property
Fiscal Year 2022-23
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit
1. Single Family Residential Property RU Less than 1,900 sq. f t $2,781.00
2. Single Family Residential Property RU 1,900 sq. ft to 2,100 sq. f t $2,885.00
3. Single Family Residential Property RU 2,101 sq. ft to 2,300 sq. f t $2,923.00
4. Single Family Residential Property RU 2,301 sq. ft to 2,500 sq. f t $2,997.00
5. Single Family Residential Property RU 2,501 sq. ft to 2,700 sq. f t $3,183.00
6. Single Family Residential Property RU 2,701 sq. ft to 2,900 sq. f t $3,212.00
7. Single Family Residential Property RU 2,901 sq. ft to 3,100 sq. f t $3,296.00
8. Single Family Residential Property RU 3,101 sq. ft to 3,300 sq. f t $3,380.00
9. Single Family Residential Property RU 3,301 sq. ft to 3,500 sq. f t $3,547.00
10. Single Family Residential Property RU 3,501 sq. ft to 3,700 sq. f t $3,631.00
11. Single Family Residential Property RU 3,701 sq. ft to 3,900 sq. f t $3,714.00
12. Single Family Residential Property RU Greater than 3,900 sq. f t $3,882.00
13. Multifamily Property Acre N/A $15,327.00
14. Non-Residential Property Acre N/A $15,327.00
Escalation of Special Taxes
On each July 1, commencing on July 1, 2023 the Assigned Special Tax shall increase by two percent (2.0%), of the amount in effect in the prior Fiscal Year.
For particulars as to the Rate and Method for CFD No. 2022-1, see the attached and incorporated in Appendix A.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 33
Menifee Mayor and City Council May 18, 2022
6 Certifications Page | 8
City of Menifee
CFD No. 2022-1 (Quartz Ranch)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Menifee as a result of development occurring within the CFD No. 2022- 1 and benefits the lands within said CFD No. 2022-1. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Date: May 18, 2022 SPICER CONSULTING GROUP, LLC
__________________________
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF MENIFEE
RIVERSIDE COUNTY
STATE OF CALIFORNIA
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 34
Menifee Mayor and City Council May 18, 2022
APPENDIX A
Rate and Method of Apportionment
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 35
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022‐1 (QUARTZ RANCH) OF THE CITY OF MENIFEE
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Menifee Community Facilities District No. 2022‐1 (Quartz Ranch) ("CFD No. 2022‐1"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2022‐1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as
a Single Family Residential Property with a stand‐alone Residential Unit.
"Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello‐Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022‐1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022‐1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022‐1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022‐1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022‐1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022‐1 for any other administrative purposes of CFD No. 2022‐1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 36
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 2
levied, (ii) that have an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s
Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax" means the Special Tax of that name described in Section D below.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long‐term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long‐term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2022‐1 have been pledged.
"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or
cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2022‐1" means Community Facilities District No. 2022‐1 (Quartz Ranch) established by the City under the Act.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of Menifee, State of California.
"City Council" means the City Council of the City of Menifee, acting as the legislative body of CFD No. 2022‐1.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 37
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 3
“Condominium Plan" means a condominium plan purusant to California Civil Code, Section 6624.
"County" means the County of Riverside, State of California.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1
st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D.
"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022‐1 on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.
"Non‐Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non‐residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2.
"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 38
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 4
per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA.
“RMA" means this Rate and Method of Apportionment of Special Taxes.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2022‐1 pursuant to the Act to fund the Special Tax Requirement.
"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative
Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022‐1 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022‐1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 39
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 5
B. SPECIAL TAX
Commencing Fiscal Year 2022‐2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022‐2023, each Assessor’s Parcel within CFD No. 2022‐1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.
Assessor’s Parcels of Developed
Property shall further be classified as Residential Property or Non‐Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.
In the event that there are Assessor’s Parcel(s) for which one or more Building Permits for Residential Units have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to such Assessor’s Parcel(s) (in accordance with the Final Map or Condominium Plan), the amount of the Special
Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amount shall be levied as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax for such Assessor’s Parcel or (ii) the Backup Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Multifamily Property and Non‐Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non‐Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax for Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 40
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 6
Fiscal Year 2022‐2023 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2022‐2023
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit
1. Single Family Residential Property RU Less than 1,900 sq. ft $2,781.00
2. Single Family Residential Property RU 1,900 sq. ft to 2,100 sq. ft $2,885.00
3. Single Family Residential Property RU 2,101 sq. ft to 2,300 sq. ft $2,923.00
4. Single Family Residential Property RU 2,301 sq. ft to 2,500 sq. ft $2,997.00
5. Single Family Residential Property RU 2,501 sq. ft to 2,700 sq. ft $3,183.00
6. Single Family Residential Property RU 2,701 sq. ft to 2,900 sq. ft $3,212.00
7. Single Family Residential Property RU 2,901 sq. ft to 3,100 sq. ft $3,296.00
8. Single Family Residential Property RU 3,101 sq. ft to 3,300 sq. ft $3,380.00
9. Single Family Residential Property RU 3,301 sq. ft to 3,500 sq. ft $3,547.00
10. Single Family Residential Property RU 3,501 sq. ft to 3,700 sq. ft $3,631.00
11. Single Family Residential Property RU 3,701 sq. ft to 3,900 sq. ft $3,714.00
12. Single Family Residential Property RU Greater than 3,900 sq. ft $3,882.00
13. Multifamily Property Acre N/A $15,327.00
14. Non‐Residential Property Acre N/A $15,327.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property or Approved Property expected to be classified as Single Family Residential Property shall calculated according to the following formula.
B = (U x A) / L
The terms above have the following
meanings:
B = Backup Special Tax per Assessor’s Parcel classified as Single Family Residential Property or Approved Property expected to be classified as Single Family Residential Property within the Final Map.
U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 41
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 7
A = Acreage of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator
L = Number of Assessor’s Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator.
In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $15,327 per Acre.
Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed
Property for which a certificate of occupancy has been granted may not be revised.
In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $15,327 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non‐Residential Property.
On each July 1, commencing July 1, 2023, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved
Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Residential Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single
Family Residential Property shall be $15,327 per Acre.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $15,327 per Acre.
On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2022‐2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall
be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 42
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 8
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels which are classified as Non‐Residential Property or (vii) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 76.13 Acres.
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 76.13 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 76.13 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 43
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 9
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $22,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower amount (i) determined by the City Council
as sufficient to provide the facilities under the authorized bonding program for CFD No. 2022‐1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2022‐1.
“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the
Engineering News‐Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News‐Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public
facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes 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 for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel.
Within 15 days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 44
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 10
Taxes.
The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been
issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property, compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Maximum Special Taxes that could be levied assuming build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to
paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 45
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 11
have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to
evidence the prepayment of the Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the
redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 46
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 12
Tenders of Bonds in prepayment of the Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case‐by‐case basis as specifically approved by the City Council.
2. Prepayment in Part
The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the Partial Prepayment Amount, the provisions of Section G.1 shall be modified as provided by the following formula:
PP
= ((PE – A) x F) + A
These terms have the following meaning:
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the percentage of the Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial Prepayment Amount. Within 15 business days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment for the
Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 ‐ F) of the applicable Special Tax will continue to be levied on the Assessor’s Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 2064‐2065 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2022‐1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022‐1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2022‐1 have been satisfied.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 47
Menifee Mayor and City Council May 18, 2022
City of Menifee
Community Facilities District No. 2022‐1 (Quartz Ranch) Page 13
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022‐1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes levied on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes.
During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made unless approved by the CFD Administrator.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 48
Menifee Mayor and City Council May 18, 2022
APPENDIX B
Boundary Map
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 49
Menifee Mayor and City Council May 18, 2022
LA
PIEDRA
RD
EVANSRD
HOLLAND
RD
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(QUARTZ RANCH)
CITY OF MENIFEE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 4 SHEETS
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2022-1
(QUARTZ RANCH), CITY OF MENIFEE, COUNTY OF RIVERSIDE, STATE
OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL
OF THE CITY OF MENIFEE AT A REGULAR MEETING
THEREOF, HELD ON ______ DAY OF ______, 20____,
B Y R E S O L U T I O N N O . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________
CITY CLERK
C I T Y O F M E N I F E E
FILED IN THE OFFICE OF THE CITY CLERK, CITY OF MENIFEE, THIS ____ DAY OF ________, 20____.
______________________________
CITY CLERK
CITY OF MENIFEE
RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY
RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.
FEE: _____________ NO.: ______________________
PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY
CFD 2022-1
\_
·|}þ74·|}þ74
§¨¦215
MENIFEE
THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIES
OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS
CONCERNING THE LINES AND DIMENSIONS OF LOTS OR
PARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FOR
FISCAL YEAR 2021-22.
07 5 0 1 , 5 0 0375 Feet
-
PROPOSED BOUNDARY MAP
SHEET 2
SHEET 4
SHEET 3
LEGEND
CFD BOUNDARY
SHEET BOUNDARY
PARCEL LINE
XXX-XXX-XXX ASSESSOR PARCEL NUMBER (APN)
1 REFERENCE #
Item Title: 11.1 Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 50
Menifee Mayor and City Council May 18, 2022 Page 379 of 610
BUTTE
VISTA
DR
WHITE
PINES
DR
EVERG
REEN
CREST
CIR
M
ESA
VISTA
DR
DOUGLAS
CREST
CIR
NOBLE
FIR
DR
VALLEY
HEIGHTS
DR
144
118
114
111
102
99 124
5354
59 66 76
84 85
117
103
58 61 62 65 72 75
138
110
131
67 70
77 80
139
123
126
129
87 52
68 78
82 83
143
141
140
134
122
127
133
94 56
63 73
121
125
60 142
135
115
109
106
128
132
90 64 69 71 74
79 137
136
130
98 95
91 51
5557 81
86 145
4 3
107
38 19
18 14
13 4847
20 146
5 101
96 89
88 44
147
1209
31 35
97 92
43 22 24 25
10 6
2 113
104
36 39
40 17
16 50
49 119
30 34
93 1
108
27 28
32 33
2621
116
41 15
12 23
148
11 8 7
112
105
100
29 37
42 4645
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(QUARTZ RANCH)
CITY OF MENIFEE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 2 OF 4 SHEETS
THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIES
OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS
CONCERNING THE LINES AND DIMENSIONS OF LOTS OR
PARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FOR
FISCAL YEAR 2021-22.
0 500 1,000 250 Feet
-
PROPOSED BOUNDARY MAP
REFERENCE # APN REFERENCE # APN REFERENCE # APN REFERENCE # APN REFERENCE # APN 1 360-942-011 31 360-951-005 61 360-961-020 91 360-960-010 121 360-941-004 2 360-942-010 32 360-951-006 62 360-961-021 92 360-960-004 122 360-953-001 3 360-942-009 33 360-951-007 63 360-961-022 93 360-960-003 123 360-953-002 4 360-942-008 34 360-951-008 64 360-961-023 94 360-960-009 124 360-953-003 5 360-942-007 35 360-951-009 65 360-961-024 95 360-960-008 125 360-953-004 6 360-942-006 36 360-951-010 66 360-961-025 96 360-960-002 126 360-953-005 7 360-942-005 37 360-951-011 67 360-961-026 97 360-960-001 127 360-953-006 8 360-942-004 38 360-951-012 68 360-961-027 98 360-960-007 128 360-953-007 9 360-942-003 39 360-951-013 69 360-961-028 99 360-950-017 129 360-953-008 10 360-942-002 40 360-951-014 70 360-961-029 100 360-950-008 130 360-953-009 11 360-942-001 41 360-951-015 71 360-961-030 101 360-950-007 131 360-953-010 12 360-952-008 42 360-951-016 72 360-961-031 102 360-950-016 132 360-953-011 13 360-952-007 43 360-961-008 73 360-961-032 103 360-950-015 133 360-953-012 14 360-952-006 44 360-961-007 74 360-961-033 104 360-950-006 134 360-940-017 15 360-952-005 45 360-961-006 75 360-961-034 105 360-950-005 135 360-940-016 16 360-952-004 46 360-961-005 76 360-961-035 106 360-950-014 136 360-940-015 17 360-952-003 47 360-961-004 77 360-961-036 107 360-950-004 137 360-940-014 18 360-952-002 48 360-961-003 78 360-961-037 108 360-950-003 138 360-940-013 19 360-952-001 49 360-961-002 79 360-961-038 109 360-950-013 139 360-940-012 20 360-963-002 50 360-961-001 80 360-961-039 110 360-950-012 140 360-940-011 21 360-963-001 51 360-961-010 81 360-961-040 111 360-950-011 141 360-940-010 22 360-962-001 52 360-961-011 82 360-961-041 112 360-950-002 142 360-940-009 23 360-962-002 53 360-961-012 83 360-961-042 113 360-950-001 143 360-940-008 24 360-962-003 54 360-961-013 84 360-961-043 114 360-950-010 144 360-940-007 25 360-962-004 55 360-961-014 85 360-961-044 115 360-950-009 145 360-940-006 26 360-962-005 56 360-961-015 86 360-961-045 116 360-941-003 146 360-940-005 27 360-951-001 57 360-961-016 87 360-960-012 117 360-941-006 147 360-940-004 28 360-951-002 58 360-961-017 88 360-960-006 118 360-941-005 148 360-940-003 29 360-951-003 59 360-961-018 89 360-960-005 119 360-941-002 30 360-951-004 60 360-961-019 90 360-960-011 120 360-941-001 LEGEND
CFD BOUNDARY
SHEET BOUNDARY
PARCEL LINE
XXX-XXX-XXX ASSESSOR PARCEL NUMBER (APN)
1 REFERENCE #
Item Title: 11.1 Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 51
Menifee Mayor and City Council May 18, 2022 Page 380 of 610
WHITE
PINES
DR
ASH
SUMMIT
CIR
OAK SUMMIT DR
SCOTCH
PINE
CIR
PENNY HEDG
E DR
202
200
241
240
233
230
229
210
220
188
192
197
198
171
170
164
242
236
208
218
186
165
156
152
224
223
207
217
183
195
161
237
175
239
238
228227
184
169
168
160
173
201
232
231
226
205
212
215
222
193
172
167
163
162
157
150 149
211
213
221189
191
196
180
179
235
234
225
206
216
185
194
166
159
158
154 153
178
177
204
209
214
219
181182
187
190
199
155
151
176
174
203
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(QUARTZ RANCH)
CITY OF MENIFEE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 3 OF 4 SHEETS
THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIES
OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS
CONCERNING THE LINES AND DIMENSIONS OF LOTS OR
PARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FOR
FISCAL YEAR 2021-22.
0 500 1,000 250 Feet
-
PROPOSED BOUNDARY MAP
REFERENCE # APN REFERENCE # APN REFERENCE # APN REFERENCE # APN 149 360-932-025 179 360-942-013 209 360-931-006 239 360-930-004 150 360-932-024 180 360-942-012 210 360-931-007 240 360-930-003 151 360-932-023 181 360-931-020 211 360-931-008 241 360-930-002 152 360-932-022 182 360-931-021 212 360-931-009 242 360-930-001 153 360-932-021 183 360-931-022 213 360-931-010
154 360-932-020 184 360-931-023 214 360-931-011
155 360-932-019 185 360-931-024 215 360-931-012
156 360-932-018 186 360-931-025 216 360-931-013
157 360-932-016 187 360-931-026 217 360-931-014
158 360-932-015 188 360-931-027 218 360-931-015
159 360-932-014 189 360-931-028 219 360-931-016
160 360-932-013 190 360-931-029 220 360-931-017
161 360-932-012 191 360-931-030 221 360-931-018
162 360-932-011 192 360-931-031 222 360-931-019
163 360-932-010 193 360-931-032 223 360-940-002
164 360-932-009 194 360-931-033 224 360-940-001
165 360-932-008 195 360-931-034 225 360-930-017
166 360-932-007 196 360-931-035 226 360-930-016
167 360-932-006 197 360-931-036 227 360-930-015
168 360-932-005 198 360-931-037 228 360-930-014
169 360-932-004 199 360-931-038 229 360-930-013
170 360-932-003 200 360-943-001 230 360-930-012
171 360-932-002 201 360-943-002 231 360-930-011
172 360-932-001 202 360-943-003 232 360-930-010
173 360-942-019 203 360-943-004 233 360-930-009
174 360-942-018 204 360-931-001 234 360-930-008
175 360-942-017 205 360-931-002 235 360-930-007
176 360-942-016 206 360-931-003 236 360-930-006
177 360-942-015 207 360-931-004 237 360-932-017
178 360-942-014 208 360-931-005 238 360-930-005
LEGEND
CFD BOUNDARY
SHEET BOUNDARY
PARCEL LINE
XXX-XXX-XXX ASSESSOR PARCEL NUMBER (APN)
1 REFERENCE #
Item Title: 11.1 Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 52
Menifee Mayor and City Council May 18, 2022 Page 381 of 610
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COMMUNITY FACILITIES DISTRICT NO. 2022-1
(QUARTZ RANCH)
CITY OF MENIFEE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 4 OF 4 SHEETS
THIS BOUNDARY MAP CORRECTLY SHOWS THE BOUNDARIES
OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS
CONCERNING THE LINES AND DIMENSIONS OF LOTS OR
PARCEL REFER TO THE COUNTY ASSESSOR'S MAPS FOR
FISCAL YEAR 2021-22.
05 0 0 1 , 0 0 0250 Feet
-
PROPOSED BOUNDARY MAP
REFERENCE # APN REFERENCE # APN REFERENCE # APN REFERENCE # APN REFERENCE # APN 243 360-890-034 273 360-901-009 303 360-920-005 333 360-921-006 363 360-922-001 244 360-890-033 274 360-901-008 304 360-920-006 334 360-910-001 364 360-902-011 245 360-890-032 275 360-901-007 305 360-920-007 335 360-910-002 365 360-902-010 246 360-890-031 276 360-901-006 306 360-920-008 336 360-910-003 366 360-902-009 247 360-890-030 277 360-901-005 307 360-920-009 337 360-910-004 367 360-902-008 248 360-890-029 278 360-901-004 308 360-920-010 338 360-910-005 368 360-902-007 249 360-890-028 279 360-901-003 309 360-920-011 339 360-910-006 369 360-902-006 250 360-890-027 280 360-901-002 310 360-920-012 340 360-910-007 370 360-902-005 251 360-890-026 281 360-901-001 311 360-920-013 341 360-910-008 371 360-902-004 252 360-890-025 282 360-900-010 312 360-920-014 342 360-910-009 372 360-902-003 253 360-890-024 283 360-900-009 313 360-920-015 343 360-910-010 373 360-902-002 254 360-890-023 284 360-900-008 314 360-920-016 344 360-910-011 374 360-902-001 255 360-890-022 285 360-900-007 315 360-920-017 345 360-910-012 375 360-891-005 256 360-890-021 286 360-900-006 316 360-920-018 346 360-910-013 376 360-891-004 257 360-890-020 287 360-900-005 317 360-920-019 347 360-910-014 377 360-891-003 258 360-890-019 288 360-900-004 318 360-920-020 348 360-910-015 378 360-891-002 259 360-890-018 289 360-900-003 319 360-920-021 349 360-910-016 379 360-891-001 260 360-890-017 290 360-900-002 320 360-920-022 350 360-911-001 261 360-890-016 291 360-900-001 321 360-920-023 351 360-911-002 262 360-901-020 292 360-900-017 322 360-920-024 352 360-911-003 263 360-901-019 293 360-900-016 323 360-920-025 353 360-911-004 264 360-901-018 294 360-900-015 324 360-920-026 354 360-911-005 265 360-901-017 295 360-900-014 325 360-920-027 355 360-911-006 266 360-901-016 296 360-900-013 326 360-920-028 356 360-911-007 267 360-901-015 297 360-900-012 327 360-920-029 357 360-911-008 268 360-901-014 298 360-900-011 328 360-921-001 358 360-911-009 269 360-901-013 299 360-920-001 329 360-921-002 359 360-911-010 270 360-901-012 300 360-920-002 330 360-921-003 360 360-911-011 271 360-901-011 301 360-920-003 331 360-921-004 361 360-911-012 272 360-901-010 302 360-920-004 332 360-921-005 362 360-911-013 LEGEND
CFD BOUNDARY
SHEET BOUNDARY
PARCEL LINE
XXX-XXX-XXX ASSESSOR PARCEL NUMBER (APN)
1 REFERENCE #
Item Title: 11.1 Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 53
Menifee Mayor and City Council May 18, 2022 Page 382 of 610
APPENDIX C
Resolution of Intention
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 54
Menifee Mayor and City Council May 18, 2022
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE
CITY OF MENIFEE TO ESTABLISH COMMUNITY FACILITIES
orsTRrcT No. 2022-1 (QUARTZ RANCH) OF THE C|TY OF
MENIFEE, TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO
PAY THE COSTS OF ACQUIRING OR CONSTRUCTING
CERTAIN FACILITIES AND TO PAY DEBT SERVICE ON
BONOED INDEBTEDNESS
WHEREAS, the City of Menifee (the "City") received a petition signed by the owner of more than ten percent of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code ofthe State of California; and WHEREAS, the City Council of the City (the "City Council") desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Attachment "A" hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as "Community Facilities District No. 2022-1 (Quanz Ranch) of the City of Menifee" ("Community Facilities District No. 2022-1" or the "District") pursuant to the lvlello-Roos Community Facilities Act of 1982, as amended, commencing with Section 5331 1 of the Government Code (the "Act") to flnance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment "8" hereto and incorporated herein by this reference, including allfurnishings, equipment and supplies related thereto (collectively, the "Facilities"), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the "lncidental Expenses"); and WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the lncidental Expenses for Community Facilities District No. 2022-1; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the lncidental Expenses through the formation of Community Facilities District No. 2022-1 and the issuance of bonded indebtedness in an amount not to exceed $27,000,000 with respect to the Facilities and the lncidental Expenses and the levy of a special tax to pay for the Facilities and the lncidental Expenses (the "Special Tax") and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilitaes District No. 2022-1; WHEREAS, the City desires to enter into a reimbursement agreement with Lennar Homes of California, LLC, a California limited liability company (the "Developer"), the form of which is on flle with the City Clerk (the "Reimbursement Agreement"), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District, WHEREAS, the District and the Developer propose to enter into joint community facilities agreements (the "JCFAS") with each of Eastern Municipal Water District (the "Water District"), Menifee Union School District and Perris Union High School District relating to certain facilities proposed to be financed by the District and owned and operated by the Water District, Menifee RESOLUTION NO.22.1133
4Ii53-3893-4543v3/200299-0009
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 55
Menifee Mayor and City Council May 18, 2022
Union School District and Perris Union High School District, as applicable, and the District expects to enter into the JCFAs prior to the approval of the issuance of bonds pursuant to the Act.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 2. A community facilities dastrict is proposed to be established under the terms of the Act. lt is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Attachment "A" hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2022-1 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk- Recorder of the County of Rrverside within 15 days after the adoption of this resolution, all as required by Section 31 1 1 of the Streets and Highways Code of the State of California.
Section 3. The name of the proposed community facilities district shall be "Community Facilities District No. 2022-1 (Quanz Ranch) of the City of Menifee." Section 4. The Facilities proposed to be provided within Community Facilities District No. 2022-1 are public facilities as defined in the Act, which the City, the Water District, Menifee Union School District and Perris Union High School District, with respect to certain water and sewer facilities and school facilities, as applicable, are authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The lncidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District. The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.
All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 533'14.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 ofthe Act. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.
Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities and lncidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and lncidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash).
The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Attachment "C" attached hereto, which Attachment "C" is incorporated herein by this reference. Attachment "C" allows each landowner within the District to estimate the maximum amount ofthe Special Tax that may be levied against each parcel. In the flrst year in which such 2 4853 3893'4543v3/200299 0009
Section 1. The above recilals are true and correct.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 56
Menifee Mayor and City Council May 18, 2022
Special Tax is levied, the levy shall include an amount sufficient to repay to the Diskict all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.
lf the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first sub.lect to the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Attachment "C" hereto, (ii) such Special Tax not shall be levied after fiscal year 2064-65, as described in Attachment "C" hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.
The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2022-1 wlll place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Attachment "C" to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No.2022-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Aftachment "C," the City Councal shall, on behalf of Community Facilities Diskict No. 2022-1 , cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment "C," to the extent necessary upon the remaining property within proposed Community Facilities District No. 2022-1 which is not exempt in order to yield the Special Tax revenues required forthe purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment "C" hereto.
Section 6. A public hearing (the "Hearing") on the establishment of the proposed Community Facilities District No. 2022-1 , the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the lncidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on May 18, 2022, al the City Council Chambers, 29844 Haun Road, Menifee, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. lf held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.
Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2022-1 shall be established and as to the method of apportionment ofthe special tax and shall consider:
3 4853-3893 4543v3/200299-0009
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 57
Menifee Mayor and City Council May 18, 2022
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2022-1 fot lhe exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities Diskict No.2022-1 will provide the same services as were provided by the capital facilities mentioned in subsection (a), and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2022-1, fot purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2022-1 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.
Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2022-1, may appear and be heard.
Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 20224, rt ft is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2022-1 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any lncidental Expenses to be incurred.
Section 10 The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2022-1. fhe District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.
Section 1 1 The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2022-1. The CityClerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a descnption of the protest rights ofthe registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
4 4853-38934543v3/200299-0009
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 58
Menifee Mayor and City Council May 18, 2022
Section 12. The reasonab ly expected maximum principal amount of the bonded indebtedness to be incurred by the Diskict for the Facilities and lncidental Expenses is Twenty-Seven Million Dollars ($27,000,000).
Section 1 3 The form of the Reimbursement Agreement is hereby approved. TheMayor, the City Manager, the Assistant City Manager, or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement rn the form on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusrve evidence of such approval.
Section 14. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).
PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 6th day of April, 2022.
ATTEST: APPROVED:
1x.h-
ie Roseen, ng City Clerk
APPROVED AS TO FORM:
elching, City Attorney
Bill Zim@fryMayorph
J
5 4853-3893-4543v3/200299-000S
Section 1 5. This Resolution shall be effective upon its adoption.
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 59
Menifee Mayor and City Council May 18, 2022
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Item Title: 11.1 Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 60
Menifee Mayor and City Council May 18, 2022 Page 389 of 610
ATTACHMENT A
BOUNDARY MAP
4853-3893-4543v3/200299-0009
A-'1
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 61
Menifee Mayor and City Council May 18, 2022
PROPOSED BOUNDARY MAP
COITIMUNITY FACILITIES DISTRICT t{O. 2022-1
(QUARTZ RANCH)
CITY OF MEIIIFEE,
COUNTY OF RIVERSIOE, STAIE OF CALIFORIIA
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Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 62
Menifee Mayor and City Council May 18, 2022
9 PROPOSED BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2022.I
(OUARTZ RANCH)
CITY OF MENIFEE,
COUNTY OF RIVERSIDE, STAIE OF CALIFORI{IA
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Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 63
Menifee Mayor and City Council May 18, 2022
PROPOSED BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2022.1
(OUARTZ RANCH)
CITY OF ME IFEE,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
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Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 64
Menifee Mayor and City Council May 18, 2022
PROPOSED BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2022.1
(OUARTZ RAI{CH)
CITY OF ME'IIFEE,
COUNTY OF RIVERSIOE, STATE OF CALIFORI{IA
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Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 65
Menifee Mayor and City Council May 18, 2022
ATTACHMENT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2022-1 lQuafiz Ranch) of the City of Menifee The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general government facilities, animal shelter facilities, fire and safety, and other public facilities of the City, including the foregoing public facilities which are included in the City's fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the "City Facilities"); (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of Eastern Municipal Water Drstrict which are included in Eastern Municipal Water District's water and sewer capacity and connection fee programs (the "Water District Facilities"), and (iii) interim and permanent school facilities of Menifee Union School District and Perris Union High School District, including classrooms, multi- purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the "School Facilities" and together, with the City Facilities and the Water Facilities, the "Facilities"), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilitiesl b. All costs, including cosls of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District, and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District. 48s3-3893-4543v3/200299-0009
B-1
Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 66
Menifee Mayor and City Council May 18, 2022
ATTACHMENT C
RATE ANO METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2022.1
(QUARTZ RANCH} OF THE CITY OF MENIFEE
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, "Definitions", below) shall be applicable to each Assessor's Parcel of Taxable Property located within the boundaries of the City of Menifee Community Facilities District No. 2022-1 (Quadz Ranch) ("CFD No. 2022-1"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor's Parcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2022-1 , by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
"Accessory Dwelling Unit" means a residential unit of limited size including a smaller second unit that shares an Assessor's Parcel as a Single Family Residential Property with a stand-alone Residential Unit.
"Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded parcel map or instrument. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division2of Title5of the Government Code of the State of California.
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The terms hereinafter set forth have the following meanings:
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administratron of CFD No.2022-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the lndenture; the costs to the City, CFD No. 2022-1 ot any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1 ot any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-1 and any ma.ior property owner associated with applicable federal and state securities laws and the Act, the costs associated with preparing Special Tax disclosure statements and responding to public rnquiries regarding the Special Taxes; the costs of the City, CFD No. 2022-1 ot any designee thereof related to an appeal of the Special Tax; the costs associated with the release offunds from an escrow account; and the City's annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022-1 for any other admrnistrative Item Title: 11.1
Proposed Formation of Community Facilities District No. 2022-1, Quartz Ranch Item Page Number: 67
Menifee Mayor and City Council May 18, 2022