AGENDA
Wednesday, May 14, 2025
Special City Council Meeting 5:00 PM
Special City Council Meeting 5:00 PM
Regular City Council Meeting 7:00 PM
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ADMINISTRATION Mountain House Town Hall Board Chambers
251 East Main Street,
Mountain House, CA 95391
CITY COUNCIL
STEVEN J. PINKERTON
City Manager
JOHN BAKKER
City Attorney
MARGARET WIMBERLY
City Clerk
ANDY SU
Mayor
BERNICE KING TINGLE
Vice Mayor
Council Members
MATT DISKO
RONNA GREEN
DANIEL HARRISON
HOW TO PARTICIPATE: The public is invited to participate in the City Council meeting using any of the following methods:
• In Person: Public Comment forms should be submitted prior to the time the item is announced. Completion of the form is voluntary. People that do not fill out the form but still wish to speak will be allowed to do so. Public Comments are limited to three (3) minutes per person. Please turn off all electronic devices. Please, no personal attacks.
• E-mail: Public Comments can be submit comments via email to [email protected]. Comments that are received at least two hours prior to the start of the meeting will be distributed to the Mayor and City Council Members. • To Watch or Listen only: The public may view the meeting via one-way video feed by selecting the video option at the City Council Agendas’ link on the City webpage at www.mountainhouse.ca.gov; or on the City's YouTube Account at www.youtube.com/@cityofmountainhouse
5:00 PM SPECIAL CITY COUNCIL MEETING
1. CALL TO ORDER AND ROLL CALL
Public comment will be taken on this item during discussion and prior to direction to staff.
2. Conduct a workshop on the Fiscal year 2025/2026 Budget
3. ADJOURNMENT - Adjourn to Regular Meeting
5:00 PM (or as soon thereafter as possible) SPECIAL CITY COUNCIL MEETING
1. CALL TO ORDER AND ROLL CALL
City Council Meeting Agenda May 14, 2025
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2. PUBLIC COMMENT: At this time the public is permitted to speak on items on the Closed Session Agenda.
3. Open Session Disclosure of Items to be Discussed in Closed Session Pursuant to Government Code Section 54957.7
4. RECESS TO CLOSED SESSION
4.1 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Service Employees International Union Local 1021 v. City of Mountain House, California Public Employment Relations Board (PERB) Unfair Practice Charge No. SA-CE-1273-M
5. RECONVENE IN OPEN SESSION: Public Report of Reportable Action Taken in Closed Session Pursuant to Government Code § 54957.1
6. ADJOURNMENT - Adjourn to Regular Meeting
AGENDA
Wednesday, Wednesday, May 14, 2025
Special City Council Meeting 5:00 PM
Special City Council Meeting 5:00 PM
Regular City Council Meeting 7:00 PM
ADMINISTRATION LOCATION CITY COUNCIL
STEVEN J.
PINKERTON
City Manager
JOHN BAKKER
City Attorney
MARGARET
WIMBERLY
City Clerk
Mountain House Town Hall Board Chambers
251 East Main Street
Mountain House, CA 95391
ANDY SU
Mayor
BERNICE KING
TINGLE
Vice Mayor
Council
Members
MATT DISKO
RONNA GREEN
DANIEL
HARRISON
HOW TO PARTICIPATE
The public is invited to participate in the City Council meeting using any of the following methods:
In Person:
Public Comment forms should be submitted prior to the time the item is announced. Completion of the form is voluntary. People that do not fill out the form but still wish to speak will be allowed to do so. Public Comments are limited to three (3) minutes per person. Please turn off all electronic devices. Please, no personal attacks.
•
E-mail:
Public Comments can be submitted via email to [email protected]. Comments that are received at least two hours prior to the start of the meeting will be distributed to the Mayor and City Council Members.
•
To Watch or Listen Only:
The public may view the meeting via one-way video feed by selecting the video option at the City Council Agendas’ link on the City webpage at www.mountainhouse.ca.gov or on the City's YouTube Account at www.youtube.com/@cityofmountainhouse. •
Video/Streaming available on the City's YouTube Channel:
https://www.youtube.com/@cityofmountainhouse
CALL TO ORDER AND ROLL CALL
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
APPROVAL OF AGENDA
PUBLIC COMMENTS
Public comments are limited to three minutes per person, the public is invited to make comments on items of public interest that are within the City Council’s subject matter jurisdiction and that are not listed on the current agenda.
Under the Brown Act, Items brought up during public comment that are not on the agenda cannot be discussed or acted upon by the Council, however, items necessitating a response will be included in the next City Manager update and posted on the City’s website.
RECOGNITION, ANNOUNCEMENTS, OR PRESENTATIONS
A Proclamation proclaiming May 2025 as National Tennis Month A Proclamation proclaiming May 18 – May 24, 2025, as National Public Works Week
Youth Action Committee Update
Lammersville Unified School District Update
Public Safety Update
CITY COUNCIL CONSENT ITEMS
Consent agenda items (which may include Ordinances, Resolutions, Informational Reports, Approval Actions and Motions) will be acted upon by the City Council at one time without discussion. Any Council Member or member of the public may request removal of an item from the consent calendar for discussion.
Minutes of April 23, 2025 Page 6
Approval of the California Statewide Communities Development Authority Open Property Assessed Clean Energy Program
Staff recommends that the City Council adopt two resolutions to approve:
1. Authorizing the City Manager to execute an Amended and Restated Joint Exercise of
1. 2.
3. 4.
5. 6.
6.1 6.2
6.3 6.4
6.5 7.
7.1 7.2
City Council Meeting Agenda Wednesday, May 14, 2025
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Powers Agreement to join the California Statewide Communities Development Authority (CSCDA); and
2. Joining CSCDA’s Open Property Assessed Clean Energy (PACE) Program.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of these resolutions.
Second Reading of an Ordinance for the Maintenance and Preservation of Trees, Shrubs and Other Plants
Staff recommends that the City Council waive the second reading and adopt an ordinance amending Chapter 2 of Division 5 of Title 10 of the Municipal Code, related to the Maintenance and Preservation of Trees, Shrubs and Other Plants.
Adopt a Resolution Approving Bail Schedule and Administrative Fine Schedule for Code Enforcement Violations
Adopt a Resolution Approving Bail Schedule and Administrative Fine Schedule for Code Enforcement Violations
Adopt Resolution to Approve Memorandum of Understanding with the Information Systems Division of San Joaquin County for Technology Services
Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute the attached Memorandum of Understanding (MOU) for contracted technology services with the Information Systems Division of San Joaquin County in an amount not to exceed $316,173.56 for fiscal year 2025/26.
CITY COUNCIL POLICY AND ACTION ITEMS
Establish a Facility Rental Fee Waiver or Grant Program Page 69 Staff recommends that City Council authorize a Facility Rental Fee Waiver or Grant Program and direct staff to create a program for Mountain House Community Based Organizations that incorporates Council direction provided at this meeting.
Adopt Resolution Approving Community Special Event Rental Policies Page 75 Staff recommend that the City Council adopt a resolution approving the proposed Community Special Events rental policies.
Approval of Conceptual Design for the Veterans Liberty Garden Project Page 104 Staff recommends that the City Council approve the conceptual design for the Veterans Liberty Garden Project and authorize staff to advance final design development, refine cost estimates, and expand community engagement to support project funding and implementation.
7.3 7.4
7.5 8.
8.1 8.2
8.3 City Council Meeting Agenda Wednesday, May 14, 2025 Mountain House Page 3 of 5
Resolutions authorizing the issuance of Special Tax Bonds for and on behalf of Improvement Area No. 6, Improvement Area No. 7, and Improvement Area No. 8 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services)
It is recommended that the City Council adopt three (3) resolutions to:
1. Authorize the issuance of special tax bonds for and on behalf of Improvement Areas No. 6, 7 and 8, respectively, of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services);
2. Approve and direct the execution of three (3) Fiscal Agent Agreements, one for each Improvement Area and three (3) Acquisition Agreements, one for each Improvement Area;
3. Approve the three (3) forms of the Preliminary Official Statements, one for each Improvement Area; and
4. Approve the sale of each series of bonds and related Bond Purchase Agreements.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of these resolutions.
CITY COUNCIL DISCUSSION ITEMS
Utility Billing Transition Update
City Manager Update Page 806
FUTURE AGENDA ITEMS
Report of Future Agenda Items and Long-Range Calendar Page 816
COUNCIL COMMENTS
CITY ATTORNEY COMMENTS
CITY MANAGER COMMENTS
ADJOURNMENT
If you need disability-related modification or accommodation in order to participate in this meeting, please contact the City Clerk at (209) 831-5039 or at [email protected] at least 48 hours prior to the start of the meeting.
Government Code Section §54954.2 (a). Materials related to an item on this Agenda submitted to
8.4 9.
9.1 9.2
10. 10.1
11. 12.
13. 14.
City Council Meeting Agenda Wednesday, May 14, 2025
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the City Council after distribution of the agenda packet are available for public inspection in Town Hall located at 251 East Main Street during normal business hours.
POSTING STATEMENT: On May 9, 2025, a true and correct copy of this agenda was posted on the City Hall Bulletin Board, outside Mountain House Town Hall, 251 East Main Street, Mountain House, CA 95391 and at our website www.mountainhouseca.gov.
City Council Meeting Agenda Wednesday, May 14, 2025
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MINUTES
April 23, 2025
Special City Council Meeting 5:00 PM
Regular City Council Meeting 7:00 PM
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ADMINISTRATION CITY COUNCIL
STEVEN J. PINKERTON
City Manager
JOHN BAKKER
City Attorney
MARGARET WIMBERLY
City Clerk
Mountain House Town Hall Board Chambers
251 East Main Street,
Mountain House, CA 95391 ANDY SU
Mayor
BERNICE KING TINGLE
Vice Mayor
Council Members
MATT DISKO
RONNA GREEN
DANIEL HARRISON
6:00 PM – SPECIAL CITY COUNCIL MEETING
1. CALL TO ORDER AND ROLL CALL
Mayor Su called the special meeting to order at 6:00 PM
Present: Matt Disko, Council Member, Ronna Green, Council Member, Daniel Harrison, Council Member, Bernice King Tingle, Vice Mayor, and Andy Su, Mayor.
2. PUBLIC COMMENT: At this time the public is permitted to speak on items on the Closed Session Agenda.
None
3. Open Session Disclosure of Items to be Discussed in Closed Session Pursuant to Government Code Section 54957.7
City Attorney, John Bakker announced items to be discussed in Closed Session.
4. RECESS TO CLOSED SESSION
4.1 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION (Paragraph (1) of subdivision (d) of Section 54956.9) Name of case: Service Employees International Union Local 1021 v. City of Mountain House, California Public Employment Relations Board (PERB) Unfair Practice Charge No. SA-CE-1273-M The City Council recessed to closed session.
5. RECONVENE IN OPEN SESSION: Public Report of Reportable Action Taken in Closed Session Pursuant to Government Code § 54957.1
The City Council reconvened in open session with no reportable action.
6. ADJOURNMENT - Adjourn to Regular Meeting
Item 7.1
City Council Meeting Minutes April 23, 2025
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Mayor Su adjourned the special meeting.
6:00 PM – SPECIAL CITY COUNCIL MEETING
1. CALL TO ORDER AND ROLL CALL
Mayor Su called the regular City Council meeting to order at 7:01 PM
Present: Matt Disko, Council Member, Ronna Green, Council Member, Daniel Harrison, Council Member, Bernice King Tingle, Vice Mayor, and Andy Su, Mayor.
2. MOMENT OF SILENCE
Mayor Su held a moment of silence.
3. PLEDGE OF ALLEGIANCE
Vice Mayor Tingle led the Pledge of Allegiance.
4. APPROVAL OF AGENDA
Action: To approve the agenda with the Tennis Month proclamation moved to 5/14/25.
Motion: Bernice King Tingle, Vice Mayor
Second: Ronna Green, Council Member
Vote: Unanimously approved.
5. PUBLIC COMMENTS - Public comments are limited to three minutes per person, the public is invited to make comments on items of public interest that are within the City Council’s subject matter jurisdiction and that are not listed on the current agenda. Under the Brown Act, Items brought up during public comment that are not on the agenda cannot be discussed or acted upon by the Council, however, items necessitating a response will be included in the next City Manager update and posted on the City’s website.
None.
6. RECOGNITION, ANNOUNCEMENTS, OR PRESENTATIONS
6.1 A Proclamation proclaiming May 2025 as National Tennis Month (Rescheduled to 5/14/25)
6.2 Presentation on the Monthly Report from Rank Security and Mountain House Police Services provided by San Joaquin County Sheriff’s Department
Captain Anthony DeFrenchi and Lt. Armando Izaguirre, Mountain House Police Services, presented a reports to the City Council.
6.3 Presentation on the Monthly Report from Mountain House Fire Department and Emergency Medical Services (EMS) presented by French Camp Fire Department Deputy Fire Chief Jason Fullmer presented a report to the City Council.
Item 7.1
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7. COUNCIL CONSENT ITEMS – (Ordinances, Resolutions, Informational Reports/Approval Actions and Motions) Consent agenda items will be acted upon by the City Council at one time without discussion. Any Council Member or member of the public may request removal of an item from the consent calendar for discussion.
7.1 Approved Minutes of the City Council Meeting of April 9, 2025
7.2 Waived second reading and adopted Ordinance 2025-02 Amending Various Provisions of Titles 1, 2, 4, and 5 Related to Code Enforcement, Related to Parks, Public Facilities and Public Property, Related to Fireworks, and Related to Weed, Rubbish, and Debris Abatement
7.3 Adopted Resolution 2025-16 ratifying the San Joaquin Council of Governments Fiscal Year 2025/2026 Annual Financial Plan
7.4 Received the Monthly Financial Report
7.5 Adopted resolution 2025-17 authorizing the City of Mountain House to: 1. Participate in the National Flood Insurance Program (NFIP); 2. Assume floodplain management responsibilities; and 3. Transition these responsibilities from San Joaquin County
7.6 Received List of Recent Contracts signed by the City Manager under his authority in March 2025
7.7 Approved of the Third Amendment to the Amended and Restated Agreement for Contracted Security Services with Rank Investigation and Protection, Inc.
Action: It was moved/seconded to approve the Consent Calendar as recommended by staff.
Motion: Ronna Green, Council Member
Second: Daniel Harrison, Council Member
Vote: Unanimously approved.
8. CITY COUNCIL POLICY & ACTION ITEMS
8.1 Introduction of an Ordinance for the Maintenance and Preservation of Trees, Shrubs and Other Plants
8.2 Adopt a resolution to approve and adopt the proposed Mountain House Traffic Calming Program Manual to enhance traffic safety, raise public awareness, and mitigate traffic issues
8.1 Introduction of an Ordinance for the Maintenance and Preservation of Trees, Shrubs and Other Plants Jodi Almassy, Deputy City Manager, and Doug Louie, Operations and Maintenance Superintendent, presented the report to the City Council. Mayor Su opened the public comment period, there being no one wishing to speak it was closed.
Action: to waive first reading and Introduce Ordinance 2025-03 for the Maintenance and Preservation of Trees, Shrubs and Other Plants.
Motion: Daniel Harrison, Council Member
Second: Matt Disko, Council Member
Vote: Unanimously approved.
8.2 Adopt a resolution to approve and adopt the proposed Mountain House Traffic Calming Program Manual to enhance traffic safety, raise public awareness, and mitigate traffic issues Item 7.1
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Koosun Kim, Director of Public Works, presented the staff report. Mayor Su opened the public comment period, there being no one wishing to speak it was closed.
Action: It was moved/seconded by Disko/Tingle to adopt Resolution 2025-18 adopting the Mountain House Traffic Calming Program Manual to enhance traffic safety, raise public awareness, and mitigate traffic issues
Motion: Matt Disko, Council Member
Second: Bernice King Tingle, Vice Mayor
Vote: Unanimously approved.
9. CITY COUNCIL DISCUSSION ITEMS
9.1 Veterans Ad-Hoc Committee Update
Jodi Almassy, Deputy City Manager, presented an update on the Veterans Ad-Hoc Committee to the City Council.
9.2 Logo Update
Amanda Durbin, Communications Officer, presented an overview of the logo and an update to the City Council. There was consensus from Council on design features that will be incorporated into the logo that will be brought back to Council for their action.
9.3 City Manager Update
Steven Pinkerton, City Manager, presented the City Manager Update to the City Council.
10. FUTURE AGENDA ITEMS
10.1 Report of Future Agenda Items and Long-Range Calendar Steven Pinkerton, City Manager, provided an overview of upcoming meetings and scheduled agenda items.
11. COUNCIL COMMENTS
Council Member Harrison congratulated the new Seargeant, and recognized the administrative professionals in light of Administrative Professionals Day.
Vice Mayor Tingle echoed the comments from Council Member Harrison and provided an overview of YAC summer camp, which will be held at the Unity Center.
Council Member Green announced she would be unavailable for the first concert in the Park and for the Kite Festival event, and thanked staff for the traffic calming report.
Council Member Disko thanked staff for their assistance with the Easter Event, and thanked staff for their work.
12. CITY ATTORNEY COMMENTS
None.
13. CITY MANAGER COMMENTS
Item 7.1
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None.
14. ADJOURNMENT - Adjourn to May 14, 2025, City Council Meeting Mayor Su adjourned the meeting at 9:04 p.m.
Item 7.1
CITY COUNCIL AGENDA ITEM NO. 7.2
Consent Item
TITLE: Approval of the California Statewide Communities Development Authority Open Property Assessed Clean Energy Program
MEETING DATE: May 14, 2025
PREPARED BY: Steven J. Pinkerton, City Manager
Jodi Almassy, Deputy City Manager
RECOMMENDATION
Staff recommends that the City Council adopt two resolutions to approve:
1. Authorizing the City Manager to execute an Amended and Restated Joint Exercise of Powers Agreement to join the California Statewide Communities Development Authority (CSCDA); and
2. Joining CSCDA’s Open Property Assessed Clean Energy (PACE) Program.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of these resolutions.
BACKGROUND
State law authorizes contract assessment districts in charter and general law counties to provide financing for renewable energy, energy efficiency, and water conservation improvements to qualified property owners. A property owner voluntarily enters into a contractual agreement with one of the Joint Powers Authority (JPA) assessment districts in which they reside to access financing by securing a lien against their property and repay it as a special tax or assessment on their property tax bill. This financing mechanism is referred to as PACE – Property Assessed Clean Energy.
To provide Mountain House property owners with a variety of trusted PACE finance options, the Council is asked to consider admitting licensed PACE providers by adopting a resolution approving CSCDA Open PACE Program to operate in the City.
The City of Mountain House would need to pass a resolution joining CSCDA and a separate resolution to join CSCDA’s Open PACE program. Currently, over 530 public agencies in California are members, including numerous cities and counties. CSCDA was founded and is sponsored by the California League of Cities and the California State Association of Counties. CSCDA membership brings opportunities to the City in addition to Open PACE.
DISCUSSION
PACE financing can be set up and administered under AB 811 (2008) which allows qualifying upgrades to be financed through an assessment district. Additional legislation expanded projects eligible for financing to include water efficiency improvements, electric vehicle charging stations, seismic improvements, and wildfire resiliency.
Additional laws expand the original legislation and provide further consumer protection:
Item 7.2
CITY COUNCIL AGENDA ITEM NO. 7.2
Consent Item
AB 2693 (2016) enhanced disclosures to homeowners participating in PACE programs and guarantees the right to cancel PACE financing within three business days of execution. AB 2693 also prohibits marketing promises of monetary or percentage representations of increased value to a property owner regarding the effect the financed improvements will have on the market value of the property unless the market value is estimated using one of specified methods.
SB 242 (2017) requires a recorded telephone call to residential consumers to confirm the key terms of the agreement. This call and contractual documents must be available in one of five enumerated non-English languages as necessary. SB 242 also prohibits kickbacks to contractors for steering consumers into a particular program and any misrepresentation as to tax deductibility of a PACE assessment contract. PACE providers are prevented from disclosing to contractors the amount of funds the property is eligible for under a PACE assessment under this law.
AB 1284 (2017) establishes state oversight for the California’s PACE program (through the regulator – Department of Financial Protection and Innovation – DFPI) and requires PACE administrators that are not local governments to obtain a license under California Financing Law.
They are also held accountable for screening, training, and monitoring the contractors and sales reps enrolled in their programs. Lastly, PACE providers must determine a consumer’s ability to repay, including income verification, before entering into a PACE assessment.
SB 465 (2018) allows for fire resiliency measures to be financed under enabling PACE legislation.
AB 1551 (2020) prohibits penalties for early prepayment, prohibits PACE financing with reverse mortgages, requires financing documents to be provided to the homeowner as a printed copy unless the homeowner opts out.
AB 2471 (2020) extends the right to cancel on all home improvement contracts including PACE for persons 65-years and older from three to five days.
AB 790 (2021) extends laws regulating unfair methods of competition and unfair or deceptive acts or practices regarding the home solicitation of senior citizens for home improvements funded by PACE.
DFPI Regulations (2021) further regulated the PACE Administrator license and application process, advertising standards and standardized disclosures, complaints processes and procedures, dishonest dealings and misleading statements, and PACE enrollment standards and processes.
PACE offers an alternative to traditional means of financing property improvements such as paying cash, taking a home equity line of credit (HELOC), or using credit cards. PACE financing eligibility is primarily based on property equity and ability to pay, rather than the credit worthiness of the applicant. PACE financing has fixed term interest rates with terms generally longer than those of other private and/or unsecured loans, but equal to the average useful life of the improvement being undertaken. Some other advantages of PACE financing include 100% financing for eligible improvements, and the reliability of preapproved, vetted, trained and strictly monitored contractors. Participation in PACE financing is voluntary.
Because the capital for PACE financing is from private sources and the transactions are between program administrators and building owners, the City will incur no cost or risk associated with program activities.
The City is not required or expected to provide administrative support or marketing for the programs, Item 7.2
CITY COUNCIL AGENDA ITEM NO. 7.2
Consent Item
which are conducted by the program administrators. However, many jurisdictions throughout the state have found that partnering in outreach and marketing can enhance the efficacy of the program. The City is not obliged to repay bonds issued by the JPA or assessments levied on the participating properties.
Enabling the City of Mountain House’s PACE availability by approving licensed program administrators will create a competitive marketplace that provides a variety of financing options with more favorable terms to home and business owners. Doing so may also incentivize more property owners to undertake improvements, resulting in the creation of more renewable energy and local jobs, reduction in energy use, greenhouse gas emissions and water consumption, among other improvement categories.
PACE in Mountain House
Mountain House homeowners previously had access to PACE as San Joaquin County authorized CSCDA’s program for the unincorporated areas. After Mountain House was incorporated as a City, homeowners no longer have access to PACE. By joining CSCDA’s Open PACE program, homeowners can once again have access to PACE financing provided by the three DFPI licensed providers administering the program.
The San Joaquin County cities of Lathrop, Lodi, Manteca, Stockton, Tracy, and the unincorporated areas of the county are all part of CSCDA’s Open PACE program, in addition to the nearby Livermore, Pleasanton, Dublin, Brentwood, and the unincorporated areas of Alameda and Contra Costa Counties.
California Statewide Communities Development Authority (CSCDA) Open PACE CSCDA Open PACE is an umbrella initiative including three DFPI licensed residential PACE providers: PACE Funding Group (dba Home Run Financing), FortiFi Financial, and Renew Financial; and several commercial PACE providers. Launched in 2015, it is sponsored by the California Statewide Communities Development Authority (CSCDA). CSCDA Open PACE’s goal is to create a platform to vet and pre-qualify PACE administrators so that local governments only need to pass a single resolution to authorize multiple providers including specialist residential or commercial PACE providers.
Staff recommends that the City Council adopt two resolutions to approve authorizing the City Manager to execute an Amended and Restated Joint Exercise of Powers Agreement to join the CSCDA, and the City join CSCDA’s Open Property Assessed Clean Energy (PACE) Program.
FISCAL IMPACT
Adoption of the resolutions and actions contained herein will not result in any costs to the City. All costs of marketing, financial, and program administration are borne by the program administrators and covered with private capital.
STRATEGIC PLAN
This project supports the following goals and objectives:
· Promoting sustainable development and environmental stewardship · Expanding community access to private financing tools for property improvements · Maintaining fiscal responsibility by facilitating private investment without City financial exposure CEQA
Item 7.2
CITY COUNCIL AGENDA ITEM NO. 7.2
Consent Item
This project is exempt from CEQA review.
ACTION FOLLOWING CITY COUNCIL APPROVAL
Following approval by the City Council, the City Manager will execute the Amended and Restated Joint Exercise of Powers Agreement with CSCDA and staff will transmit executed documents to CSCDA and coordinate administrative onboarding for program availability.
ATTACHMENTS
A: Resolution Authorizing the City Manager to Execute an Amended and Restated Joint Exercise of Powers
B: Resolution to Join CSCDA’s Open Property Assessed Clean Energy (PACE) Program Item 7.2
CONSENT ITEM 7.2
ATTACHMENT A
RESOLUTION NO. 2025-19
RESOLUTION APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF AN AMENDED AND
RESTATED JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY
WHEREAS, the City of Mountain House, California (the “City”), has expressed an interest in participating in the economic development financing programs (the “Programs”) in conjunction with the parties to that certain Amended and Restated Joint Exercise of Powers Agreement Relating to the California Statewide Communities Development Authority, dated as of June 1, 1988 (the “Agreement”); and
WHEREAS, there is now before this City Council the form of the Agreement; and WHEREAS, the City proposes to participate in the Programs and desires that certain projects to be located within the City be financed pursuant to the Programs and it is in the public interest and for the public benefit that the City do so; and
WHEREAS, the Agreement has been filed with the City, and the members of the City Council of the City, with the assistance of its staff, have reviewed said document; NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Mountain House as follows:
Section 1. The Agreement, included herein as Exhibit 1, is hereby approved and the City Manager or designee thereof is hereby authorized and directed to execute said document, with such changes, insertions and omissions as may be approved by said City Manager, and the City Clerk or such Clerk’s designee is hereby authorized and directed to affix the City’s seal to said document and to attest thereto.
Section 2. The City Manager, the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.
Section 3. The City Clerk of the City shall forward a certified copy of this Resolution and an originally executed Agreement to:
Kathleen Jacobe
Orrick, Herrington & Sutcliffe LLP
400 Capital Mall, Suite 3000
Sacramento, California 95814
Section 4. This resolution shall take effect immediately upon its passage.
Item 7.2
CONSENT ITEM 7.2
ATTACHMENT A
PASSED AND ADOPTED by the City Council of the City of Mountain House, California at a meeting thereof held on this the 14th day of May 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
______________________________
ANDY SU, MAYOR
City of Mountain House
County of San Joaquin, State of California
ATTEST:
______________________________
MARGARET WIMBLEY
City Clerk of the City of Mountain
House, County of San Joaquin, State of
California
By: ___________________________
Item 7.2
AMENDED AND RESTATED
JOINT EXERCISE OF POWERS AGREEMENT
RELATING TO THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
THIS AGREEMENT, dated as of June 1, 1988, by and
among the parties executing this Agreement (all such parties, except those which have withdrawn in accordance with Section 13 hereof, being herein referred to as the “Program
Participants”):
WITNESSETH
WHEREAS , pursuant to Title 1, Division 7, Chapter 5
of the Government Code of the State of California (the “Joint Exercise of Powers Act”), two or more public agencies may by agreement jointly exercise any power common to the
contracting parties; and
WHEREAS , each of the Program Participants is a
“public agency” as that term is defined in Section 6500 of the Government Code of the State of California, and
WHEREAS , each of the Program Participants is
empowered to promote economic development, including,
without limitation, the promotion of opportunities for the creation or retention of employment, the stimulation of economic activity, and the increase of the tax base, within its boundaries; and
WHEREAS , a public entity established pursuant to
the Joint Exercise of Powers Act is empowered to issue
industrial development bonds pursuant to the California Industrial Development Financing Act (Title 10 (commencing with Section 91500 of the Government Code of the State of California)) (the “Act”) and to otherwise undertake financing programs under the Joint Exercise of Powers Act or other applicable provisions of law to promote economic development through the issuance of bonds, notes, or other evidences of indebtedness, or certificates of participation in leases or other agreements (all such instruments being herein
collectively referred to as “Bonds”); and
WHEREAS , in order to promote economic
development within the State of California, the County
Supervisors Association of California (“ CSAC”), together with the California Manufacturers Association, has established the Bonds for Industry program (the “Program”).
CONSENT ITEM 7.2
ATTACHMENT A
EXHIBIT 1
Item 7.2
2 WHEREAS, in furtherance of the Program, certain
California counties (collectively, the “Initial Participants”) have entered into that certain Joint Exercise of Powers Agreement dated as of November 18, 1987 (the “Initial
Agreement”), pursuant to which the California Counties
Industrial Development Authority has been established as a separate entity under the Joint Exercise of Powers Act for the purposes and with the powers specified in the Initial
Agreement; and
WHEREAS, the League of California Cities (“ LCC”)
has determined to join as a sponsor of the Program and to actively participate in the administration of the Authority; and WHEREAS, the Initial Participants have determined
to specifically authorize the Authority to issue Bonds pursuant to Article 2 of the Joint Exercise of Powers Act (“Article 2”) and Article 4 of the Joint Exercise of Powers Act (“Article 4”), as well as may be authorized by the Act or other applicable law; and
WHEREAS, the Initial Participants desire to rename
the California Counties Industrial Development Authority to better reflect the additional sponsorship of the Program; and WHEREAS, each of the Initial Participants has
determined that it is in the public interest of the citizens within its boundaries, and to the benefit of such Initial Participant and the area and persons served by such Initial Participant, to amend and restate in its entirety the Initial Agreement in order to implement the provisions set forth above; and
WHEREAS, it is the desire of the Program
Participants to use a public entity established pursuant to the Joint Exercise of Powers Act to undertake projects within their respective jurisdictions that may be financed with Bonds issued pursuant to the Act, Article 2, Article 4, or other applicable provisions of law; and
WHEREAS, the projects undertaken will result in
significant public benefits, including those public benefits set forth in Section 91502.1 of the Act, an increased level of economic activity, or an increased tax base, and will therefore serve and be of benefit to the inhabitants of the jurisdictions of the Program Participants;
NOW, THEREFORE, the Program Participants, for
and in consideration of the mutual promises and agreements herein contained, do agree to restate and amend the Initial Agreement in its entirety to provide as follows:
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3 Section 1. Purpose .
This Agreement is made pursuant to the provisions
of the Joint Exercise of Powers Act, relating to the joint exercise of powers common to public agencies, in this case being the Program Participants. The Program Participants each possess the powers referred to in the recitals hereof.
The purpose of this Agreement is to establish an agency for, and with the purpose of, issuing Bonds to finance projects within the territorial limits of the Program Participants pursuant to the Act, Article 2, Article 4, or other appliable provisions of law; provided, however that nothing in this Agreement shall be construed as a limitation on the rights of the Program Participants to pursue economic development outside of this Agreement, including the rights to issue Bonds through industrial development authorities under the Act, or as otherwise permitted by law.
Within the various jurisdictions of the Program
Participants such purpose will be accomplished and said powers exercised in the manner hereinafter set forth.
Section 2. Term .
This Agreement shall become effective as of the
date hereof and shall continue in full force and effect for a period of forty (40) years from the date hereof, or until such time as it is terminated in writing by all the Program
Participants; provided, however, that this Agreement shall not terminate or be terminated until the date on which all Bonds or other indebtedness issued or caused to be issued by the Authority shall have been retired, or full provision shall have been made for their retirement, including interest until their retirement date.
Section 3. Authority .
A. CREATION AND POWE RS OF AUTHORITY.
(1) Pursuant to the Joint Exercise of Powers Act,
there is hereby created a public entity to be known as the “California Statewide Communities Development Authority” (the “Authority”), and said Authority shall be a public entity separate and apart from the Program Participants. Its debts, liabilities and obligations do not constitute debts, liabilities or obligations of any party to this Agreement.
B. COMMISSION.
The Authority shall be administered by a Commission
(the “Commission”) which shall consist of seven members, each CONSENT ITEM 7.2
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4 serving in his or her individual capacity as a member of the Commission. The Commission shall be the administering
agency of this Agreement, and, as such, shall be vested with the powers set forth herein, and shall execute and administer this Agreement in accordance with the purposes and functions provided herein.
Four members of the Commission shall be appointed
by the governing body of CSAC and three members of the
Commission shall be appointed by the governing body of LCC.
Initial members of the Commission shall serve a term ending June 1, 1991. Successors to such members shall be selecte d in the manner in which the respective initial member was selected and shall serve a term of three years. Any
appointment to fill an unexpired term, however, shall be for such unexpired term. The term of office specified above shall be applicable unless the term of office of the respective member is terminated as hereinafter provided, and provided that the term of any member shall not expire until a successor thereto has been appointed as provided herein.
Each of CSAC and LCC may appoint an alternate
member of the Commission for each member of the Commission which it appoints. Such alternate member may act as a
member of the Commission in place of and during the absence or disability of such regularly appointed member. All
references in this Agreement to any member of the Commission shall be deemed to refer to and include the applicable
alternate member when so acting in place of a regularly appointed member.
Each member or alternate member of the
Commission may be removed and replaced at any time by the governing body by which such member was appointed. Any
individual, including any member of the governing body or staff of CSAC or LCC, shall be eligible to serve as a member or alternate member of the Commission.
Members and alternate members of the Commission
shall not receive any compensation for serving as such but shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a member or alternate member, if the Commission shall determine that such expenses shall be reimbursed and there are unencumbered funds
available for such purpose.
C. OFFICERS; DUTIES; OFFICIAL BONDS.
The Commission shall elect a Chair, a Vice-Chair,
and a Secretary of the Authority from among its members to serve for such term as shall be determined by the Commission.
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5 employees to serve as treasurer, auditor, and controller of the Authority (the “Treasurer”) pursuant to Section 6505.6 of the Joint Exercise of Powers Act to serve for such term as shall be determined by the Commission.
Subject to the applicable provisions of any
resolution, indenture or other instrument or proceeding authorizing or securing Bonds (each such resolution,
indenture, instrument and proceeding being herein referred to as an “Indenture”) providing for a trustee or other fiscal agent, the Treasurer is designated as the depositary of the Authority to have custody of all money of the Authority, from whatever source derived.
The Treasurer of the Authority shall have the
powers, duties and responsibilities specified in Section 6505.5 of the Joint Exercise of Powers Act.
The Treasurer of the Authority is designated as the
public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond with the Secretary of the Authority in the amount specified by resolution of the Commission but in no event less than $1,000. If and to the extent permitted by law, any such officer may satisfy this requirement by filing an official bond in at least said amount obtained in connection with another public office.
The Commission shall have the power to appoint
such other officers and employees as it may deem necessary and to retain independent counsel, consultants and
accountants.
The Commission shall have the power, by resolution,
to the extent permitted by the Joint Exercise of Powers Act or any other applicable law, to delegate any of its functions to one or more of the members of the Commission or officers or agents of the Authority and to cause any of said members, officers or agents to take any actions and execute .any documents or instruments for and in the name and on behalf of the Commission or the Authority.
D. MEETINGS OF THE C OMMISSION.
(1) Regular Meetings .
The Commission shall provide for its regular
meetings; provided, however, it shall hold at least one regular meeting each year. The date, hour and place of the holding of the regular meetings shall be fixed by resolution of the Commission and a copy of such resolution shall be filed with each party hereto.
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6 (2) Special Meetings .
Special meetings of the Commission may be called
in accordance with the provisions of Section 54956 of the Government Code of the State of California.
(3) Ralph M. Brown Act .
All meetings of the Commission, including, without
limitation, regular, adjourned regular, special, and adjourned special meetings shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the Government Code of the State of California).
(4) Minutes .
The Secretary of the Authority shall cause to be
kept minutes of the regular, adjourned regular, special, and adjourned special meetings of the Commission and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Commission. (5) Quorum .
A majority of the members of the Commission which
includes at least one member appointed by the governing body of each of CSAC and LCC shall constitute a quorum for the transaction of business. No action may be taken by the
Commission except upon the affirmative vote of a majority of the members of the Commission which includes at least one member appointed by the governing body of each of CSAC and LCC, except that less than a quorum may adjourn a meeting to another time and place.
E. RULES AND REGULAT IONS.
The Authority may adopt, from time to time, by
resolution of the Commission such rules and regulations for the conduct of its meetings and affairs as may be required.
Section 4. Powers .
The Authority shall have any and all powers
relating to economic development authorized by law to each of the parties hereto and separately to the public entity herein created, including, without limitation, the promotion of opportunities for the creation and retention of employment, the stimulation of economic activity, and the increase of the tax base, within the jurisdictions of such parties. Such powers shall include the common powers specified in this CONSENT ITEM 7.2
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7 Agreement and may be exercised in the manner and according to the method provided in this Agreement. All such powers common to the parties are specified as powers of the
Authority. The Authority is hereby authorized to do all acts necessary for the exercise of such powers, including, but not limited to, any or all of the following: to make and enter into contracts; to employ agents and employees; to acquire,
construct, provide for maintenance and operation of, or maintain and operate, any buildings, works or improvements; to acquire, hold or dispose of property wherever located; to incur debts, liabilities or obligations; to receive gifts, contributions and donations of property, funds, services and other forms of assistance from persons, firms, corporations and any governmental entity; to sue and be sued in its own name; and generally to do any and all things necessary or convenient to the promotion of economic development,
including without limitation the promotion of opportunities for the creation or retention of employment, the stimulation of economic activity, and the increase of the tax base, all as herein contemplated. Without limiting the generality of the foregoing, the Authority may issue or cause to be issued bonded and other indebtedness, and pledge any property or revenues as security to the extent permitted under the Joint Exercise of Powers Act, including Article 2 and Article 4, the Act or any other applicable provision of law.
The manner in which the Authority shall exercise its
powers and perform its duties is and shall be subject to the restrictions upon the manner in which a California county could exercise such powers and perform such duties until a California general law city shall become a Program
Participant, at which time it shall be subject to the
restrictions upon the manner in which a California general law city could exercise such powers and perform such duties. The manner in which the Authority shall exercise its powers and perform its duties shall not be subject to any restrictions applicable to the manner in which any other public agency could exercise such powers or perform such duties, whether such agency is a party to this Agreement or not.
Section 5. Fiscal Year.
For the purposes of this Agreement, the term “Fiscal
Year” shall mean the fiscal year as established from time to time by the Authority, being, at the date of this Agreement, the period from July 1 to and including the following June 30, except for the first Fiscal Year which shall be the period from the date of this Agreement to June 30, 1988.
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8 Section 6. Disposition of Assets .
At the end of the term hereof or upon the earlier
termination of this Agreement as set forth in Section 2 hereof, after payment of all expenses and liabilities of the Authority, all property of the Authority both real and personal shall automatically vest in the Program Participants and shall thereafter remain the sole property of the Program
Participants; provided, however, that any surplus money on hand shall be returned in proportion to the contributions made by the Program Participants.
Section 7. Bonds .
The Authority shall issue Bonds for the purpose of
exercising its powers and raising the funds necessary to carry out its purposes under this Agreement. Said Bonds may, at the discretion of Authority, be issued in series.
The services of bond counsel, financing consultants
and other consultants and advisors working on the projects and/or their financing shall be used by the Authority. The fees and expenses of such counsel, consultants, advisors, and the expenses of CSAC, LCC, and the Commission shall be paid from the proceeds of the Bonds or any other unencumbered funds of the Authority available for such purpose.
Section 9. Local Approval .
A copy of the application for financing of a project
shall be filed by the Authority with the Program Participant in whose jurisdiction the project is to be located. The Authority shall not issue Bonds with respect to any project unless the governing body of the Program Participant in whose
jurisdiction the project is to be located, or its duly authorized designee, shall approve, conditionally or unconditionally, the project, including the issuance of Bonds therefor. Action to approve or disapprove a project shall be taken within 45 days of the filing with the Program Participant. Certification of approval or disapproval shall be made by the clerk of the governing body of the Program Participant, or by such other officer as may be designated by the applicable Program
Participant, to the Authority.
Section 8. Bonds Only Limited and Special
Obligations of Authority .
The Bonds, together with the interest and premium,
if any, thereon, shall not be deemed to constitute a debt of any Program Participant, CSAC, or LCC or pledge of the faith and credit of the Program Participants, CSAC, LCC, or the CONSENT ITEM 7.2
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9 Authority. The Bonds shall be only special obligations of the Authority, and the Authority shall under no circumstances be obligated to pay the Bonds or the respective project costs except from revenues and other funds pledged therefor.
Neither the Program Participants, CSAC, LCC, nor the
Authority shall be obligated to pay the principal of, premium, if any, or interest on the Bonds, or other costs incidental thereto, except from the revenues and funds pledged therefor, and neither the faith and credit nor the taxing power of the Program Participants nor the faith and credit of CSAC, LCC, or the Authority shall be pledged to the payment of the principal of, premium, if any, or interest on the Bonds nor shall the Program Participants, CSAC, LCC, or the Authority in any manner be obligated to make any appropriation for such
payment.
No covenant or agreement contained in any Bond or
Indenture shall be deemed to be a covenant or agreement of any member of the Commission, or any officer, agent or
employee of the Authority in his individual capacity and neither the Commission of the Authority nor any officer thereof executing the Bonds shall be liable personally on any Bond or be subject to any personal liability or accountability by reason of the issuance of any Bonds.
Section 10. Accounts and Reports .
All funds of the Authority shall be strictly accounted
for. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice and by any provision of any Indenture (to the extent such duties are not assigned to a trustee of Bonds). The books and
records of the Authority shall be open to inspection at all reasonable times by each Program Participant.
The Treasurer of the Authority shall cause an
independent audit to be made of the books of accounts and financial records of the Agency by a certified public
accountant or public accountant in compliance with the
provisions of Section 6505 of the Joint Exercise of Powers Act. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California and shall conform to generally accepted auditing standards. When such an audit of accounts and
records is made by a certified public accountant or public accountant, a report thereof shall be filed as public records with each Program Participant and also with the county auditor of each county in which a Program Participant is located.
Such report shall be filed within 12 months of the end of the Fiscal Year or Years under examination.
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10 Any costs of the audit, including contracts with, or employment of, certified public accountants or public
accountants in making an audit pursuant to this Section, shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for that
purpose.
In any Fiscal Year the Commission may, by
resolution adopted by unanimous vote, replace the annual special audit with an audit covering a two-year period.
The Treasurer of the Authority, within 120 days
after the close of each Fiscal Year, shall give a complete written report of all financial activities for such Fiscal Year to each of the Program Participants to the extent such activities are not covered by the reports of the trustees for the Bonds.
The trustee appointed under each Indenture shall establish suitable funds, furnish financial reports and provide suitable accounting procedures to carry out the provisions of said Indenture. Said trustee may be given such duties in said Indenture as may be desirable to carry out this Agreement.
Section 11. Funds .
Subject to the applicable provisions of each
Indenture, which may provide for a trustee to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds pursuant to the accounting procedures
developed under Section 10 hereof, and shall make the
disbursements required by this Agreement or otherwise
necessary to carry out any of the provisions or purposes of this Agreement.
Section 12. Notices .
Notices and other communications hereunder to the
Program Participants shall be sufficient if delivered to the clerk of the governing body of each Program Participant.
Section 13. Withdrawal and Addition of Parties.
A Program Participant may withdraw from this
Agreement upon written notice to the Commission; provided, however, that no such withdrawal shall result in the
dissolution of the Authority so long as any Bonds remain outstanding under an Indenture. Any such withdrawal shall be effective only upon receipt of the notice of withdrawal by the Commission which shall acknowledge receipt of such notice of withdrawal in writing and shall file such notice as an
amendment to this Agreement effective upon such filing.
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11 Qualifying public agencies may be added as parties
to this Agreement and become Program Participants upon: (i) the filing by such public agency of an executed counterpart of this Agreement, together with a certified copy of the
resolution of the governing body of such public agency
approving this Agreement and the execution and delivery hereof; and (ii) adoption of a resolution of the Commission approving the addition of such public agency as a Program Participant. Upon satisfaction of such conditions, the
Commission shall file such executed counterpart of this Agreement as an amendment hereto, effective upon such filing.
Section 14. Indemnification .
To the full extent permitted by law, the Commission
may authorize indemnification by the Authority of any person who is or was a member or alternate member of the
Commission, or an officer, employee or other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a member or alternate member of the Commission, or an officer, employee or other agent of the Authority, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful and, in the case of an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.
Section 15. Contributions and Advances.
Contributions or advances of public funds and of the
use of personnel, equipment or property may be made to the Authority by the parties hereto for any of the purposes of this Agreement. Payment of public funds may be made to defray the cost of any such contribution. Any such advance may be made subject to repayment, and in such case shall be repaid, in the manner agreed upon by the Authority and the party making such advance at the time of such advance.
Section 16. Immunities.
All of the privileges and immunities from
liabilities, exemptions from laws, ordinances and rules, all pension, relief, disability, workers’ compensation, and other benefits which apply to the activity of officers, agents or employees of Program Participants when performing their CONSENT ITEM 7.2
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12 respective functions within the territorial limits of their respective public agencies, shall apply to them to the same degree and extent while engaged as members of the
Commission or otherwise as an officer, agent or other
representative of the Authority or while engaged in the performance of any of their functions or duties
extraterritorially under the provisions of this Agreement.
Section 17. Amendments .
Except as provided in Section 13 above, this
Agreement shall not be amended, modified, or altered except by a written instrument duly executed by each of the Program Participants.
Section 18. Effectiveness .
This Agreement shall become effective and be in full
force and effect and a legal, valid and binding obligation of each of the Program Participants at 9:00 a.m., California time, on the date that the Commission shall have received from each of the Initial Participants an executed counterpart of this Agreement, together with a certified copy of a resolution of the governing body of each such Initial Participant approving this Agreement and the execution and delivery hereof.
Section 19. Partial Invalidity .
If anyone or more of the terms, provisions,
promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or
voidable for any reason whatsoever by a court of competent jurisdiction, each and all of the remaining terms, provisions, promises, covenants and conditions of this Agreement shall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law.
Section 20. Successors.
This Agreement shall be binding upon and shall
inure to the benefit of the successors of the parties hereto.
Except to the extent expressly provided herein, no party may assign any right or obligation hereunder without the consent of the other parties.
Section 21. Miscellaneous .
This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.
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13 The section headings herein are for convenience
only and are not to be construed as modifying or governing the language in the section referred to.
Wherever in this Agreement any consent or approval
is required, the same shall not be unreasonably withheld.
This Agreement is made in the State of California,
under the Constitution and laws of such state and is to be so construed.
This Agreement is the complete and exclusive
statement of the agreement among the parties hereto, which supercedes and merges all prior proposals, understandings, and other agreements, including, without limitation, the Initial Agreement, whether oral, written, or implied in conduct, between and among the parties relating to the subject matter of this Agreement.
IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, as of the day and year first above written.
Program Participant:
[SEAL]
By
Name:
Title:
ATTEST:
By
Name:
Title:
CONSENT ITEM 7.2
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CONSENT ITEM 7.2
ATTACHMENT B
RESOLUTION NO. 2025-20
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN HOUSE CONSENTING TO
THE INCLUSION OF PROPERTIES WITHIN THE TERRITORY OF THE CITY IN THE CSCDA OPEN PACE PROGRAMS; AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS,
CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY; AND AUTHORIZING RELATED ACTIONS WHEREAS, the California Statewide Communities Development Authority (the “Authority”) is a joint exercise of powers authority, the members of which include numerous cities and counties in the State of California, including the City of Mountain House (the “City”); and WHEREAS, Chapter 29 of Division 7 of the Streets & Highways Code (“Chapter 29”) authorizes the Authority to establish voluntary contractual assessment programs to finance or refinance renewable energy, energy efficiency, water efficiency and seismic strengthening improvements, electric vehicle charging infrastructure and such other improvements, infrastructure or other work as may be authorized by law from time to time (collectively, the “Improvements”) through the levy of contractual assessments within counties and cities throughout the State of California that consent to the participation of properties within their respective territories and the issuance of bonds from time to time; and WHEREAS, for the purpose of providing financing and refinancing for the Improvements, the Authority has established two CSCDA Open PACE Programs (the “Programs”): (i) the CaliforniaFIRST Program and (ii) the CSCDA Open PACE Program; and
WHEREAS, the Authority has designated multiple third-party program administrators to administer the Programs; the current program administrators are the Counterpointe Energy Solutions II (CA) LLC, PACE Funding Group LLC dba Home Run Financing, Renew Financial Group LLC, Fortifi, Nuveen Green Capital, White Oak Advisors, Stonehill PACE, LLC, Lord Cap PACE, Green PACE Capital, PACE Loan Group and Petros PACE Finance, Castle Green Finance, Bayview PACE, Green Rock Healthcare Capital, Citizens Business Bank and the Authority will notify the City of any additions or changes; and WHEREAS, the Authority may also administer certain projects itself, working directly with thirdparty capital providers; and WHEREAS, Chapter 29 provides that assessments may be levied under its provisions only with the free and willing consent of the owner or owners of each lot or parcel on which an assessment is levied at the time the assessment is levied; and
WHEREAS, the City desires to allow the owners of property (“Participating Property Owners”) within its territory to participate in the Programs and to allow the Authority to conduct assessment proceedings under Chapter 29 within its territory and to issue bonds to finance or refinance Improvements; and
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WHEREAS, the territory within which assessments may be levied for the Programs shall include all of the territory within the City’s official boundaries; and WHEREAS, the Authority will conduct all assessment proceedings under Chapter 29 for the Programs and issue any bonds issued in connection with the Programs; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy of assessments; any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of any bonds issued in connection with the Programs; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mountain House as follows:
Section 1. This City Council hereby finds and declares that properties in the territory of the City will benefit from the availability of the Program within the territory of the City and, pursuant thereto, the conduct of special assessment proceedings by the Authority pursuant to Chapter 29 and the issuance of bonds to finance or refinance Improvements.
Section 2. In connection with the Programs, the City hereby consents to the conduct of special assessment proceedings by the Authority pursuant to Chapter 29 on any property within the territory of the City and the issuance of bonds to finance or refinance Improvements; provided, that (1) The Participating Property Owners, who shall be the legal owners of such property, execute a contract pursuant to Chapter 29 and comply with other applicable provisions of California law in order to accomplish the valid levy of assessments; and (2) The City will not be responsible for the conduct of any assessment proceedings; the levy of assessments; any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of any bonds issued in connection with the Programs.
Section 3. The appropriate officials and staff of the City are hereby authorized and directed to make applications for the Programs available to all property owners who wish to finance or refinance Improvements; provided, that the Authority shall be responsible for providing such applications and related materials at its own expense. The following staff persons, together with any other staff persons chosen by the City Council from time to time, are hereby designated as the contact persons for the Authority in connection with the Programs: City Manager or his/her designee.
Section 4. The appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such certificates, requisitions, agreements and related documents as are reasonably required by the Authority to implement the Programs.
Section 5. The City Council hereby finds that adoption of this Resolution is not a “project” under the California Environmental Quality Act, because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4).
Section 6. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the Item 7.2
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Authority at: Secretary of the Board, California Statewide Communities Development Authority, 1400 K Street, Sacramento, CA 95814.
PASSED AND ADOPTED by the City Council of the City of Mountain House, California at a meeting thereof held on this the 14th day of May 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
______________________________
ANDY SU, MAYOR
City of Mountain House
County of San Joaquin, State of California
ATTEST:
______________________________
MARGARET WIMBLEY
City Clerk of the City of Mountain
House, County of San Joaquin, State of
California
By: ___________________________
Item 7.2
CITY COUNCIL AGENDA ITEM NO. 7.3
Consent Item
TITLE: Second Reading of an Ordinance for the Maintenance and Preservation of Trees, Shrubs and Other Plants
MEETING DATE: May 14, 2025
PREPARED BY: Doug Louie, Operations and Maintenance Superintendent Jodi Almassy, Deputy City Manager
Staff recommends that the City Council waive the second reading and adopt an ordinance amending Chapter 2 of Division 5 of Title 10 of the Municipal Code, related to the Maintenance and Preservation of Trees, Shrubs and Other Plants.
The proposed Tree Maintenance and Preservation Ordinance was introduced to the City Council for consideration at the April 23, 2025 meeting. The ordinance is intended to strengthen the City’s efforts to protect and maintain its urban forest, which includes public trees.
The proposed Tree Maintenance and Preservation ordinance establishes clear responsibilities for property owners and the City, outlines reasonable enforcement mechanisms, and provides the statutory framework for a future flexible Tree Maintenance Program. The forthcoming program will enable staff to adjust maintenance schedules, funding strategies, and service levels based on tree-health data, equity considerations, and budget conditions.
At the prior meeting, City Council waived the first reading and approved the ordinance. A second reading is required for final adoption. Staff recommend waiving the second reading and adopting the ordinance.
Adoption of the ordinance itself has no direct fiscal impact. However, as the future Tree Maintenance Program is developed and implemented, staff anticipate incremental costs for arborist services, enhanced data collection, oversight and enforcement. Detailed cost estimates and funding options will be presented to City Council later this month for consideration.
RECOMMENDATION
BACKGROUND
DISCUSSION
FISCAL IMPACT
Item 7.3
CITY COUNCIL AGENDA ITEM NO. 7.3
Consent Item
Promote equity in neighborhood and community amenities.
No environmental review is required at this time.
Based on Council’s input and action on the proposed ordinance amendment, staff will return with a draft Tree Maintenance Program.
Attachment A – Proposed Ordinance (clean copy)
Attachment B – Proposed Changes to Title 10 (redlined)
STRATEGIC OBJECTIVES MET
CEQA
ACTION FOLLOWING CITY COUNCIL APPROVAL
ATTACHMENTS
Item 7.3
ATTACHMENT A
CITY OF MOUNTAIN HOUSE
ORDINANCE NO. 2025-03
AN ORDINANCE AMENDING CHAPTER 2 OF DIVISION 5 OF TITLE 10 OF THE MOUNTAIN
HOUSE MUNICIPAL CODE RELATED TO THE MAINTENANCE AND PRESERVATION OF TREES,
SHRUBS AND OTHER PLANTS
WHEREAS, the City Council of the City of Mountain House desires to make certain amendments to the Mountain House Municipal Code relating to the maintenance and preservation of trees, shrubs and other plants.
WHEREAS, these amendments are necessary to improve clarity, ensure consistency, and update various provisions throughout the Code.
NOW THEREFORE, the City Council of the City of Mountain House does ordain as follows:
SECTION 1. Amendment of Chapter 2 of Division 5 of Title 10. Chapter 2 of Division 5 of Title 10 of Mountain House Municipal Code is hereby amended to read as set forth in the attached Exhibit 1.
SECTION 2. Effective Date. This Ordinance shall take effect thirty days after its passage.
SECTION 3. Publication and Posting. The City Clerk shall comply with Government Code section 36933’s publication and posting requirements.
SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
PASSED AND ADOPTED by the City Council of the City of Mountain House at a regular meeting held on the day of , 2025, by the following vote:
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ATTACHMENT A
ANDY SU, MAYOR
City of Mountain House
County of San Joaquin, State of
California
ATTEST: MARGARET WIMBERLY
City Clerk of the City of Mountain
House, County of San Joaquin, State of
California
By:
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CHAPTER 2 MAINTENANCE AND PRESERVATION OF TREES, SHRUBS AND OTHER PLANTS 10-5-200 Purpose and Intent
It is the purpose of this Chapter to promote and protect the public health, safety, and general welfare by providing for the regulation of the planting, maintenance, and removal of trees, shrubs, and other plants within the City of Mountain House.
It is recognized that the preservation of trees enhances the natural beauty of the City, sustains long-term potential increases in property values, maintains the environment, tempers the effect of extreme temperatures, creates the identity and quality of the City, which is necessary for successful business to continue, improves the attractiveness of the City to visitors and increases the oxygen output of the area which is needed to combat air pollution. 10-5-201 Definitions
The following words and phrases, whenever used in this Chapter, shall be construed as defined in this Section:
(a) “City” shall mean the City of Mountain House, California. (b) “City Manager” shall mean the City Manager of the City or his or her designee. (c) “Diameter at breast height” or “dbh” means the average diameter of a tree outside the bark at a point four and one-half feet above the highest-level ground. (d) “Dripline” or “dripline area” refers to the area surrounding the tree trunk, the outer perimeter of which is defined by the unaltered length of the outermost branch tips. (e) “Mature tree” shall be defined as any tree that is close to its full height and crown size, these dimensions being determined by species and site factors. These are fully established trees around the middle half of their usual life expectancy, generally retaining good vigor. (f) “Pollarding” is specialty pruning in which a tree with a large-maturing form is kept relatively short. Starting on a young tree, internodal cuts are made at a chosen height, resulting in the development of callous knobs at the cut height. Pollarding requires regular (usually annual) removal of the sprouts arising from the cuts. The practice of pollarding is not considered a best management practice and should be avoided in most cases. (g) “Private trees” are trees wholly located on privately owned property. (h) “Pruning” involves removing branches (or occasionally roots) from a tree using approved practices to achieve a specified objective. Topping and attempted pollarding of mature trees are not proper pruning methods and are not acceptable pruning practices. (i) “Public Right-of-Way” (PROW) or “Right-of-Way” (ROW) means land that is reserved for use by the City as a public roadway, including incidental features within such lands such as sidewalks and landscaping. This includes not only the surface of the roadway and the earth beneath the roadway, but also all facilities and natural features located across, along, beneath, in, on, over, under, upon and within the roadway, this includes pedestrian sidewalks. (j) “Street tree” is any tree in the Right-of-Way generally located in the parking strip between the curb and the sidewalk.
(k) “Topping” (also known as heading or stubbing) is excessive reduction of tree size by cutting live branches and leaders to stubs, without regard to long-term tree health or structural integrity. In most cases topping is not an acceptable practice.
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(l) “Tree” means any woody perennial plant with a single trunk or multiple trunks of a minimum three-inch dbh, which typically develops to a mature size of over seven inches dbh and ten or more feet in height.
(m) “Young tree” means any tree that has been planted within the previous three (3) years. Young trees may need additional care in the way of watering and pruning for proper growth patterns.
(n) “Street Tree Plan” refers to the various plans, as they may be amended by the City Council from time to time, that establish the types, varieties, and locations of street trees to be planted within the City of Mountain House, which plans include Mountain House Master Plan, the three specific plans, the Mountain House Community Services District Design Manual, and the In-Tract Landscape Guidelines adopted by the Mountain House Community Services District and the City for the various neighborhoods.
10-5-202 Authority and Power
(a) The City Manager shall supervise, direct, and control the planting, location, placement, care, trimming, removal, relocation and replacement of all street trees and all trees, shrubs, and other plants in Rights-of-Way, parks and public places that are owned or controlled by the City. This Chapter provides full power and authority over all trees, plants, and shrubs located within Rights-of-Way, parks, and public places of the City and over trees, plants, and shrubs located on private property that constitute a hazard or threat as described herein. (b) The City Manager shall have the authority and responsibility to do the following:
(1) Carry out the provisions of this Chapter.
(2) Remove or replace any tree located within the Right-of-Way, in accordance with the provisions of this Chapter.
(3) Enter in or upon any part of the Right-of-Way or, with the permission of the owner or to the extent allowed by law, adjacent property, as is reasonably necessary for the purpose of planting and maintaining street trees. If a street tree poses an immediate threat to public safety, the City Manager may enter onto the adjacent property without the permission of the owner, to the extent allowed by law.
10-5-203 Prohibitions Regarding Street Tree, Permits
(a) Except as may be authorized or required in this Chapter, it is unlawful for any person to perform any of the following acts with respect to street trees, without a tree permit issued by the City Manager.
(1) Plant any tree, shrub, or plant, other than grass or similar planting materials, within the Right-of-Way.
(2) Move, remove, cut down, poison, set fire to or permit fire to burn in proximity to, or perform or fail to perform any act that results in the unnatural death or destruction of a street tree.
(3) Perform any activity that will interfere with or retard the natural growth of any street tree.
(4) Perform any work or permit any work to be performed within the dripline area of a street tree that would endanger the tree.
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(5) Trim or prune any branch of a street tree the diameter of which is five inches or greater.
(b) Public Utilities. Public utilities are not subject to the prohibitions in this Section. Their activities are regulated separately pursuant to Section 10-5-211. 10-5-204 Design and Installation Requirements
(a) Compliance with Street Tree Plan. The Street Tree Plan includes the types, varieties, and locations of street trees to be planted in commercial, industrial and neighborhood zones.
Any removal and installation of a street tree, whether by the City or a person, shall follow the Street Tree Plan. The City Manager may, from time to time, recommend any revisions to the Street Tree Plan that he or she deems appropriate or necessary. (b) Public Information. The Public Works Department shall, as soon as feasible following the effective date of this section, maintain in a prominent place on the City’s website a page or document that provides details and information, in accessible, nontechnical language, about the proper maintenance of street trees and the various requirements of the Street Tree Plan, including the process for removal and installation of street trees. 10-5-205 Tree permit—Application—Process—Decision.
(a) Initial Consultation. Any person seeking to perform any activity on a street tree shall first contact the City Manager to discuss the proposed activity. If he or she deems it necessary, the City Manager will inspect the site of the proposed activity. After initial consultation between the applicant and the City Manager, the City Manager shall confirm whether or not a permit is required. If it is determined that a permit is required, the applicant shall apply for a permit.
(b) Application Contents. The application shall be signed by the property owner or his or her authorized agent and shall contain the following information:
(1) Location, size, and species of the tree.
(2) The type of activity for which the permit is sought. (3) A statement of the reasons for the activity.
(4) Funds for the preparation of an arborist’s report if such a report would be required for the City Manager to issue the permit.
(5) And such additional pertinent information as the City Manager may require. (c) Basis for Decision. In reaching a decision to grant or deny a tree permit, the City Manager shall consider the following:
(1) The condition of the tree with respect to disease, general health, damage public nuisance danger of falling.
(2) The tree’s proximity to existing or proposed structures and interference with utility services, and
(3) Whether or not the tree acts as host for a plant which is parasitic. If the removal of the tree is requested for this reason, a written evaluation of the health and status of the tree(s), by an I.S.A Certified Arborist, may be commissioned by the City Manager. The person requesting removal of the tree shall be responsible for the cost of the arborist report.
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(4) The number of existing trees in the area and the effect of any proposed removal upon the public health and safety, or the prosperity, beauty, and general welfare of the area. (5) Mitigation measures as proposed, or replacement measures as required. (6) Steps to avoid or minimize removal and destruction of trees. (7) The adverse impacts on the future development of the site, including the increased costs of development and construction,
(8) The reduction in the size of the proposed structure or structures and other adverse economic impacts on the landowner or developer.
(9) The zoning of the property and the immediate and future impacts are based on the granting or denial of the permit.
(d) Decision. The City Manager shall render a decision granting or denying the application for a tree permit within thirty days from the date the completed application is received. In so doing, the City Manager may impose such conditions as he or she determines necessary to protect or maintain the public health and safety, or the prosperity, beauty, and general welfare of the area. As a condition of granting a tree permit the City Manager may require that the work be performed by a person who, in the opinion of the City Manager, is qualified by education or experience to perform the work and holds a valid business license issued by the City for such purpose. If the City Manager fails to decide in thirty days, the tree permit shall be deemed to have been denied.
(e) Posting of Permit. If a permit is granted to remove the tree(s), a copy of the tree permit shall be posted in a conspicuous location on the property near the tree during the removal of the tree. The tree contractor removing the tree(s) shall provide the City Manager proof of current liability insurance prior to final issuance of the tree permit. 10-5-206 Tree Replacement Upon Removal
(a) Replacement requirements. When the City Manager has granted a tree permit to remove a street tree, said permit shall require the permittee to replace the tree. Anyone who removes a street tree shall replace it on a one-for-one basis. The size and species of the replacement shall be determined by the City Manager based on the size of the tree that was removed, with the minimum size being a 15-gallon container stock. If possible, the replacement tree shall be planted on the same parcel as the tree that was removed; if not possible, it shall be planted in a City park or some other location determined by the City Manager. Such off-site planting shall be performed by a contractor hired by the City. The applicant shall reimburse the City for the cost of any off-site planting together with a two and one-half (2.5) percent administration fee based on the actual cost of the planting contract. (b) Emergencies. In circumstances where the condition of a street tree poses an immediate threat to health or safety, as determined by the City Manager, the tree may be removed by the City without a permit. The permittee shall provide the replacement tree of a size and species pursuant to the Street Tree Plan and plant said tree in the location specified by the City Manager. The minimum replacement tree size should be at least fifteen gallons and shall be planted in accordance with the guidelines set forth in the Street Tree Plan.
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10-5-207 Planting and Maintenance.
(a) Property owner responsibilities. Each property owner is responsible for the watering, planting, removal, and replacement of street trees that are located in the Right-of-Way abutting the property owned by the property owner. The failure to do so is a violation enforceable pursuant to Division 2 of Article 1 of this Code. (b) City responsibilities. The City shall be responsible for pruning existing street trees in the Right-of-Way.
(c) Enforcement. The City Manager shall have the authority to require property owners to meet their responsibilities under subdivision (a) of this section. In addition, the City Manager shall have the authority to require property owners to take such action as is necessary to control insects, scales, parasites, fungus, and other injurious pests or plant material that are present on the individual’s property that would cause serious injury to street trees and other plant material within the City. In either case, the City Manager shall notify the property owner in writing, describing, as the case may be, (i)(A) the property owner’s responsibility and the steps to be taken to satisfy it or (B) the conditions needing remediation and the control necessary to correct the condition, and (ii) establishing a reasonable time within which the corrective steps shall be taken.
10-5-208 Tree Removal
(a) The City Manager shall be responsible for overseeing the inspection, maintenance, removal and replacement of street trees planted within rights-of-way or easements. The City Manager may authorize or order the removal of street trees or other plant material planted in the Right-of-Way if he or she determines them to be unhealthy, hazardous, undesirable or causing excessive damage to existing public improvements, or street trees. (b) The City Manager shall have the authority to require property owners to remove or prune any privately planted tree, shrub, vine, or other plant material if he or she determines it to be seriously interfering with the growth and health of any street tree. (c) In the event a property owner desires to remove a tree from the Right-of-Way abutting their property, the property owner or their authorized agent shall submit an application for a tree permit pursuant to Section 10-5-205. In addition to the requirements therein, prior to approving a tree permit for a tree removal, the City Manager shall determine whether or not such tree is required to be retained in order to preserve the intent and purpose of the Street Tree Plan. In making his or her determination, the City Manager shall consider the inconvenience or hardship which retention of the tree would cause the property owner, and also the condition, age, desirability of variety and location of the tree. The City Manager shall impose conditions that require the removal to be at the property owner's own expense and liability, that require all removal work to be completed within sixty (60) days from the date of issuance of the permit and under the general supervision of, and in accordance with, rules established by the City Manager, that require all tree stumps to be removed to a depth specified by the City Manager. All such removal permits shall be void after the expiration of sixty (60) days from the date of issuance, unless extended by the City Manager.
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10-5-209 Tree Protection
(a) No person shall interfere or cause any person to interfere with any work being done under the provisions of this Chapter by any employee of the City, or by any person or firm doing work for the City or under a permit granted by the City. (b) No person shall interfere or cause anyone to interfere with or damage any overhead wires or underground pipes or conduits while removing, trimming, pruning, spraying, or cutting any street trees in the Right-of-Way. The owner of such facilities shall be notified when such work may interfere with or cause damage to the facilities. The cost of repair of the damage to overhead wires, underground pipes or conduits shall be the responsibility of the person, firm or corporation doing or causing the work to be done. The City and its officers and employees shall be exempt from the provisions of this subsection.
(c) No person shall pour concrete (driveway, patios, walkways or other types of concrete pours) on private property less than six (6) feet from the center of any existing street tree in any direction, unless otherwise approved by the City Manager. (d) It shall be unlawful for any person to injure or destroy by any means any street tree, including, but not limited to, by doing any of the following:
(1) Constructing a concrete sidewalk or driveway or otherwise filling up the ground around any street tree so as to shut off air or water from its roots. (2) Piling building materials, equipment, or other substance around any tree. (3) Pouring any deleterious material on any tree or on the ground near any tree. (4) Posting any sign, poster, notice, or other object on any tree, tree stake or guard, or fastening any guy wire, cable, rope, nails, screws, or other device to any tree, tree stake or guard.
(5) Causing or encouraging any fire or burning near or around any tree. (6) Using any mechanical weeding device against a tree. (7) Constructing retaining walls, fences, or other similar improvements that prohibit the planting or maintaining of street trees or otherwise affect their growth. (8) Operating construction equipment in such a manner to cause it to contact the tree. (9) Disrupting the anchorage of the tree or change the grade around the tree. 10-5-210 Duty to Trim Trees.
Notwithstanding other provisions of this Chapter, it is hereby made the duty of every person owning or occupying any land within the City to keep all trees on private property that extend over any street or alley trimmed up to a height of not less than twelve (12) feet, except that a height of not less than seven (7) feet shall be permitted over the sidewalk area. Such persons are also responsible for keeping the street, alley and sidewalk space clear of debris. 10-5-211 Public Utilities.
(a) Permissions and Approvals. Any public utility maintaining any overhead wires or underground pipes or conduits shall obtain permission from the City Manager before performing any maintenance to wires, pipes, or conduits, if the maintenance would cause injury to street trees. A public utility shall in no way injure, deface, prune, or disfigure any street tree until its plans and procedures have been approved by the City Manager.
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(b) Inspection, Stop-Work Orders. Any public utility performing work which might affect street trees shall permit the City Manager to inspect any and all maintenance or operational work performed by the public utility. If the City Manager believes that a public utility’s work would cause excessive or unnecessary injury to any street tree, the City Manager shall have the authority to stop the maintenance and operational work. The public utility shall arrange with the City Manager another method of maintenance or operational work satisfactorily to the City Manager.
(c) Emergencies. The provisions of subsections (b) and (c) of this section shall not apply to emergency public utility maintenance work which is performed during nonworking hours for City personnel.
10-5-212 Liability.
(a) Nothing in this Chapter shall impose any liability upon the City, or members of the City Council, or any of its officials or employees, nor relieve the owner or occupant of any private property from the duty to keep his private property, sidewalks, and rights-of-way abutting such private property in a safe condition, free from hazards to public use. (b) By enactment of this Chapter the City is not assuming responsibility for the maintenance of street trees, except as otherwise expressly specified in this Chapter, and is not relieving the property owner of the duty to maintain such trees at his or her own expense. (c) Abatement of dangerous condition.
(1) An owner is not precluded by this Chapter from taking action, in the event of an emergency, which action would otherwise violate the terms of this Chapter, if such action were necessary to minimize a dangerous condition. In the event such emergency action is taken, the owner shall notify the City Manager as soon as reasonably possible and no later than the next working day.
(2) In the event that an owner has not properly maintained trees for which the owner is responsible, and the trees pose an imminent danger to persons and/or property, constituting an emergency, the City Manager shall refer the matter to the Code Enforcement for consideration of commencement of summary abatement pursuant to Section 1-2-409 of this Code.
(3) In the event that an owner has not properly maintained trees for which the owner is responsible, and the trees and the condition does not pose an imminent threat to persons and/or property but has the potential to pose such a threat, the City Manager shall notify the property owner of the nature of the condition and give the property owner thirty days to eliminate the potentially dangerous condition. If the condition has not changed within thirty days of the notification, the City may pursue remedies pursuant to Chapter 4 of Division 2 of Title 1 of this Code.
(d) Stop-work order. Whenever the City Manager determines that an action being taken is in conflict with this Chapter, he or she shall cause there to be issued a stop work order, which shall prohibit such action. Such stop work order shall set forth the alleged violations and may list remedies to be taken to correct the violations. The person receiving the stop work order shall be required to report in writing to the City Manager within forty-eight hours regarding the steps to be taken to correct the violations or to appeal the posting of the stop work order. The Item 7.3
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stop work order shall remain in effect until a finding is made and the circumstances giving the rise to its order no longer exist. Any party receiving a stop work order may appeal through the process outlined in Section 1-2-405 of this Code.
10-5-213 Appeals
Any person may appeal any administrative action taken by the City Manager pursuant to the provisions of this Chapter, including the denial, suspension or revocation of a permit applied for or issued pursuant to this Chapter, to the City Council. Such an appeal shall be taken in accordance with the procedure prescribed by Section 1-2-219 of this Code. 10-5-214 Violation—Penalty
Anyone violating this Chapter, including by removing, disfiguring, or damaging a street tree(s) without a permit in compliance with Section 10-5-250, shall be subject to Section 1-2- 201 and any other remedies set out in this Chapter and in Division 2 of Title 1.
All revenue from fines received for violations of this Chapter shall be used to purchase and plant replacement trees in compliance with Section 10-5-206.
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10-5-101 Protuberances on Tires.
No tire on any vehicle on any public right of way shall have on its periphery any block, stud, flange, cleat, ridge, bead, or other protuberance of metal or wood projecting beyond the tread of the traction surface of the tire. The tracks of a crawler-type vehicle shall be considered a tire within the meaning of this Chapter.
10-5-102 Exceptions.
The foregoing section shall not apply to:
(a) The use of tire chains of reasonable size to prevent skidding on surfaces or on snow or ice.
(b) The use of pneumatic tires which have embedded in them wire not to exceed .075 inches in diameter and which are so constructed that under no conditions will the percentage of metal in contact with the roadway exceed five (5) percent of the total tire area in contact with the roadway; but during the first one thousand (1,000) miles of use or operation of these tires the metal in contact with the roadway may exceed five (5) percent of this area but shall in no event exceed twenty (20) per cent of the area.
(c) Vehicles operated on unimproved roadways when necessary in the construction or repair of highways.
(d) Traction engines or tractors when operated under the conditions of a permit first obtained from the Director.
10-5-103 Agricultural and Construction Equipment.
No equipment attached to any vehicle such as discs, harrows, scarifiers, or other implements of agriculture or construction that may scratch, cut, gouge, or otherwise mark a pavement, shall be allowed to come in contact with any public right of way; but the Director may permit the use of such equipment on a public right of way on the filing of an application for a permit, which they may issue with the imposition of reasonable conditions that, may be required to protect the public right of way.
10-5-104 Violation; Penalty.
Any violation of this Chapter is punishable by a fine of not less than twenty-five dollars ($25) nor more than five hundred dollars ($500) or imprisonment not to exceed six (6) months, or both.
CHAPTER 2 TREESMAINTENANCE AND PRESERVATION OF TREE, SHRUBS AND
OTHER PLANTS
10-5-200 Destruction of Plants; Penalty.Purpose and Intent Every person except any employee of the State or of any political subdivision of the State engaged in work on any public right of way while performing work under the supervision of the State or of any political subdivision of the State, who without a written permit from the City Council willfully or negligently cuts, destroys, mutilates, or removes any tree, shrub, fern, herb, bulb, cactus, flower, or huckleberry or redwood greens, or part of any of them, growing on any public right-of-way, or who removes leaf mold therefrom, shall be punished by a fine of not more than two hundred dollars ($200) or by imprisonment for not more than six (6) months or by both.
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10-5-201 Exceptions.
(a) The provisions of this Chapter shall not apply to any tree, shrub, fern, herb, bulb, cactus, flower, or greens declared by law a public nuisance.
It is the purpose of this Chapter to promote and protect the public health, safety, and general welfare by providing for the regulation of the planting, maintenance, and removal of trees, shrubs, and other plants within the City of Mountain House.
It is recognized that the preservation of trees enhances the natural beauty of the City, sustains long-term potential increases in property values, maintains the environment, tempers the effect of extreme temperatures, creates the identity and quality of the City, which is necessary for successful business to continue, improves the attractiveness of the City to visitors and increases the oxygen output of the area which is needed to combat air pollution. 10-5-201 Definitions
The following words and phrases, whenever used in this Chapter, shall be construed as defined in this Section:
(a) “City” shall mean the City of Mountain House, California. (b) “City Manager” shall mean the City Manager of the City or his or her designee. (c) “Diameter at breast height” or “dbh” means the average diameter of a tree outside the bark at a point four and one-half feet above the highest-level ground. (d) “Dripline” or “dripline area” refers to the area surrounding the tree trunk, the outer perimeter of which is defined by the unaltered length of the outermost branch tips. (e) “Mature tree” shall be defined as any tree that is close to its full height and crown size, these dimensions being determined by species and site factors. These are fully established trees around the middle half of their usual life expectancy, generally retaining good vigor. (f) “Pollarding” is specialty pruning in which a tree with a large-maturing form is kept relatively short. Starting on a young tree, internodal cuts are made at a chosen height, resulting in the development of callous knobs at the cut height. Pollarding requires regular (usually annual) removal of the sprouts arising from the cuts. The practice of pollarding is not considered a best management practice and should be avoided in most cases.
(g) “Private trees” are trees wholly located on privately owned property. (h) “Pruning” involves removing branches (or occasionally roots) from a tree using approved practices to achieve a specified objective. Topping and attempted pollarding of mature trees are not proper pruning methods and are not acceptable pruning practices. (i) “Public Right-of-Way” (PROW) or “Right-of-Way” (ROW) means land that is reserved for use by the City as a public roadway, including incidental features within such lands such as sidewalks and landscaping. This includes not only the surface of the roadway and the earth beneath the roadway, but also all facilities and natural features located across, along, beneath, in, on, over, under, upon and within the roadway, this includes pedestrian sidewalks. (j) “Street tree” is any tree in the Right-of-Way generally located in the parking strip between the curb and the sidewalk.
(k) “Topping” (also known as heading or stubbing) is excessive reduction of tree size by cutting live branches and leaders to stubs, without regard to long-term tree health or structural integrity. In most cases topping is not an acceptable practice. (l) “Tree” means any woody perennial plant with a single trunk or multiple trunks of a minimum three-inch dbh, which typically develops to a mature size of over seven inches dbh and ten or more feet in height.
(m) “Young tree” means any tree that has been planted within the previous three (3) years.
Young trees may need additional care in the way of watering and pruning for proper growth patterns. (n) “Street Tree Plan” refers to the various plans, as they may be amended by the City Council from time to time, that establish the types, varieties, and locations of street trees to be Item 7.3
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planted within the City of Mountain House, which plans include Mountain House Master Plan, the three specific plans, the Mountain House Community Services District Design Manual, and the In-Tract Landscape Guidelines adopted by the Mountain House Community Services District and the City for the various neighborhoods.
10-5-202 Authority and Power
(a) The City Manager shall supervise, direct, and control the planting, location, placement, care, trimming, removal, relocation and replacement of all street trees and all trees, shrubs, and other plants in Rights-of-Way, parks and public places that are owned or controlled by the City. This Chapter provides full power and authority over all trees, plants, and shrubs located within Rights-of-Way, parks, and public places of the City and over trees, plants, and shrubs located on private property that constitute a hazard or threat as described herein. (b) The City Manager shall have the authority and responsibility to do the following:
(1) Carry out the provisions of this Chapter.
(2) Remove or replace any tree located within the Right-of-Way, in accordance with the provisions of this Chapter.
(3) Enter in or upon any part of the Right-of-Way or, with the permission of the owner or to the extent allowed by law, adjacent property, as is reasonably necessary for the purpose of planting and maintaining street trees. If a street tree poses an immediate threat to public safety, the City Manager may enter onto the adjacent property without the permission of the owner, to the extent allowed by law.
10-5-203 Prohibitions Regarding Street Tree, Permits
(a) Except as may be authorized or required in this Chapter, it is unlawful for any person to perform any of the following acts with respect to street trees, without a tree permit issued by the City Manager.
(1) Plant any tree, shrub, or plant, other than grass or similar planting materials, within the Right-of-Way.
(2) Move, remove, cut down, poison, set fire to or permit fire to burn in proximity to, or perform or fail to perform any act that results in the unnatural death or destruction of a street tree. (3) Perform any activity that will interfere with or retard the natural growth of any street tree. (4) Perform any work or permit any work to be performed within the dripline area of a street tree that would endanger the tree.
(5) Trim or prune any branch of a street tree the diameter of which is two-and-a-half inches or greater.
(b) Public Utilities. Public utilities are not subject to the prohibitions in this Section. Their activities are regulated separately pursuant to Section 10-5-211. 10-5-204 Design and Installation Requirements
(a) Compliance with Street Tree Plan. The Street Tree Plan includes the types, varieties, and locations of street trees to be planted in commercial, industrial and neighborhood zones. Any removal and installation of a street tree, whether by the City or a person, shall follow the Street Tree Plan. The City Manager may, from time to time, recommend any revisions to the Street Tree Plan that he or she deems appropriate or necessary.
(b) Public Information. The Public Works Department shall, as soon as feasible following the effective date of this section, maintain in a prominent place on the City’s website a page or document that provides details and information, in accessible, nontechnical language, about the proper maintenance of street trees and the various requirements of the Street Tree Plan, including the process for removal and installation of street trees.
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10-5-205 Tree permit—Application—Process—Decision.
(a) Initial Consultation. Any person seeking to perform any activity on a street tree shall first contact the City Manager to discuss the proposed activity. If he or she deems it necessary, the City Manager will inspect the site of the proposed activity. After initial consultation between the applicant and the City Manager, the City Manager shall confirm whether or not a permit is required. If it is determined that a permit is required, the applicant shall apply for a permit. (b) Application Contents. The application shall be signed by the property owner or his or her authorized agent and shall contain the following information:
(1) Location, size, and species of the tree.
(2) The type of activity for which the permit is sought. (3) A statement of the reasons for the activity.
(4) Funds for the preparation of an arborist’s report if such a report would be required for the City Manager to issue the permit.
(5) And such additional pertinent information as the City Manager may require. (c) Basis for Decision. In reaching a decision to grant or deny a tree permit, the City Manager shall consider the following:
(1) The condition of the tree with respect to disease, general health, damage public nuisance danger of falling.
(2) The tree’s proximity to existing or proposed structures and interference with utility services, and
(3) Whether or not the tree acts as host for a plant which is parasitic. If the removal of the tree is requested for this reason, a written evaluation of the health and status of the tree(s), by an I.S.A Certified Arborist, may be commissioned by the City Manager. The person requesting removal of the tree shall be responsible for the cost of the arborist report. (4) The number of existing trees in the area and the effect of any proposed removal upon the public health and safety, or the prosperity, beauty, and general welfare of the area. (5) Mitigation measures as proposed, or replacement measures as required. (6) Steps to avoid or minimize removal and destruction of trees. (7) The adverse impacts on the future development of the site, including the increased costs of development and construction,
(8) The reduction in the size of the proposed structure or structures and other adverse economic impacts on the landowner or developer.
(9) The zoning of the property and the immediate and future impacts are based on the granting or denial of the permit.
(d) Decision. The City Manager shall render a decision granting or denying the application for a tree permit within thirty days from the date the completed application is received. In so doing, the City Manager may impose such conditions as he or she determines necessary to protect or maintain the public health and safety, or the prosperity, beauty, and general welfare of the area. As a condition of granting a tree permit the City Manager may require that the work be performed by a person who, in the opinion of the City Manager, is qualified by education or experience to perform the work and holds a valid business license issued by the City for such purpose. If the City Manager fails to decide in thirty days, the tree permit shall be deemed to have been denied. (e) Posting of Permit. If a permit is granted to remove the tree(s), a copy of the tree permit shall be posted in a conspicuous location on the property near the tree during the removal of the tree.
The tree contractor removing the tree(s) shall provide the City Manager proof of current liability insurance prior to final issuance of the tree permit.
10-5-206 Tree Replacement Upon Removal
(a) Replacement requirements. When the City Manager has granted a tree permit to remove a street tree, said permit shall require the permittee to replace the tree. Anyone who removes a street Item 7.3
ATTACHMENT B
tree shall replace it on a one-for-one basis. The size and species of the replacement shall be determined by the City Manager based on the size of the tree that was removed, with the minimum size being a 15-gallon container stock. If possible, the replacement tree shall be planted on the same parcel as the tree that was removed; if not possible, it shall be planted in a City park or some other location determined by the City Manager. Such off-site planting shall be performed by a contractor hired by the City. The applicant shall reimburse the City for the cost of any off-site planting together with a two and one-half (2.5) percent administration fee based on the actual cost of the planting contract.
(b) Emergencies. In circumstances where the condition of a street tree poses an immediate threat to health or safety, as determined by the City Manager, the tree may be removed by the City without a permit. The abutting property owner shall provide the replacement tree of a size and species pursuant to the Street Tree Plan and plant said tree in the location specified by the City Manager. The minimum replacement tree size should be at least fifteen gallons and shall be planted in accordance with the guidelines set forth in the Street Tree Plan. 10-5-207 Planting and Maintenance.
(a) Property owner responsibilities. Each property owner is responsible for the watering, planting, removal, and replacement of street trees that are located in the Right-of-Way abutting the property owned by the property owner. The failure to do so is a violation enforceable pursuant to Division 2 of Article 1 of this Code.
(b) City responsibilities. The City shall be responsible for pruning existing street trees in the Right-of-Way.
(c) Enforcement. The City Manager shall have the authority to require property owners to meet their responsibilities under subdivision (a) of this section. In addition, the City Manager shall have the authority to require property owners to take such action as is necessary to control insects, scales, parasites, fungus, and other injurious pests or plant material that are present on the individual’s property that would cause serious injury to street trees and other plant material within the City. In either case, the City Manager shall notify the property owner in writing, describing, as the case may be, (i)(A) the property owner’s responsibility and the steps to be taken to satisfy it or (B) the conditions needing remediation and the control necessary to correct the condition, and (ii) establishing a reasonable time within which the corrective steps shall be taken. 10-5-208 Tree Removal
(a) The City Manager shall be responsible for overseeing the inspection, maintenance, removal and replacement of street trees planted within rights-of-way or easements. The City Manager may authorize or order the removal of street trees or other plant material planted in the Right-of-Way if he or she determines them to be unhealthy, hazardous, undesirable or causing excessive damage to existing public improvements, or street trees. (b) The City Manager shall have the authority to require property owners to remove or prune any privately planted tree, shrub, vine, or other plant material if he or she determines it to be seriously interfering with the growth and health of any street tree. (c) In the event a property owner desires to remove a tree from the Right-of-Way abutting their property, the property owner or their authorized agent shall submit an application for a tree permit pursuant to Section 10-5-205. In addition to the requirements therein, prior to approving a tree permit for a tree removal, the City Manager shall determine whether or not such tree is required to be retained in order to preserve the intent and purpose of the Street Tree Plan. In making his or her determination, the City Manager shall consider the inconvenience or hardship which retention of the tree would cause the property owner, and also the condition, age, desirability of variety and location of the tree. The City Manager shall impose conditions that require the removal to be at the property owner's own expense and liability, that require all removal work to be completed within sixty (60) Item 7.3
ATTACHMENT B
days from the date of issuance of the permit and under the general supervision of, and in accordance with, rules established by the City Manager, that require all tree stumps to be removed to a depth specified by the City Manager. All such removal permits shall be void after the expiration of sixty (60) days from the date of issuance, unless extended by the City Manager. 10-5-209 Tree Protection
(a) No person shall interfere or cause any person to interfere with any work being done under the provisions of this Chapter by any employee of the City, or by any person or firm doing work for the City or under a permit granted by the City.
(b) No person shall interfere or cause anyone to interfere with or damage any overhead wires or underground pipes or conduits while removing, trimming, pruning, spraying, or cutting any street trees in the Right-of-Way. The owner of such facilities shall be notified when such work may interfere with or cause damage to the facilities. The cost of repair of the damage to overhead wires, underground pipes or conduits shall be the responsibility of the person, firm or corporation doing or causing the work to be done. The City and its officers and employees shall be exempt from the provisions of this subsection.
(c) No person shall pour concrete (driveway, patios, walkways or other types of concrete pours) on private property less than six (6) feet from the center of any existing street tree in any direction, unless otherwise approved by the City Manager. (d) It shall be unlawful for any person to injure or destroy by any means any street tree, including, but not limited to, by doing any of the following:
(1) Constructing a concrete sidewalk or driveway or otherwise filling up the ground around any street tree so as to shut off air or water from its roots. (2) Piling building materials, equipment, or other substance around any tree. (3) Pouring any deleterious material on any tree or on the ground near any tree. (4) Posting any sign, poster, notice, or other object on any tree, tree stake or guard, or fastening any guy wire, cable, rope, nails, screws, or other device to any tree, tree stake or guard. (5) Causing or encouraging any fire or burning near or around any tree. (6) Using any mechanical weeding device against a tree. (7) Constructing retaining walls, fences, or other similar improvements that prohibit the planting or maintaining of street trees or otherwise affect their growth. (8) Operating construction equipment in such a manner to cause it to contact the tree. (9) Disrupting the anchorage of the tree or change the grade around the tree. 10-5-210 Duty to Trim Trees.
Notwithstanding other provisions of this Chapter, it is hereby made the duty of every person owning or occupying any land within the City to keep all trees on private property that extend over any street or alley trimmed up to a height of not less than twelve (12) feet, except that a height of not less than seven (7) feet shall be permitted over the sidewalk area. Such persons are also responsible for keeping the street, alley and sidewalk space clear of debris. 10-5-211 Public Utilities.
(a) Permissions and Approvals. Any public utility maintaining any overhead wires or underground pipes or conduits shall obtain permission from the City Manager before performing any maintenance to wires, pipes, or conduits, if the maintenance would cause injury to street trees. A public utility shall in no way injure, deface, prune, or disfigure any street tree until its plans and procedures have been approved by the City Manager.
(b) Inspection, Stop-Work Orders. Any public utility performing work which might affect street trees shall permit the City Manager to inspect any and all maintenance or operational work performed by the public utility. If the City Manager believes that a public utility’s work would cause Item 7.3
ATTACHMENT B
excessive or unnecessary injury to any street tree, the City Manager shall have the authority to stop the maintenance and operational work. The public utility shall arrange with the City Manager another method of maintenance or operational work satisfactorily to the City Manager. (b) (c) Emergencies. The provisions of subsections (b) and (c) of this Chaptersection shall not apply to the necessary cutting or trimming of trees, shrubs, ferns, herbs, bulbs, cacti, flowers, or greens to protect or maintain an electric power line, telephone line, or other property of a public utilityemergency public utility maintenance work which is performed during nonworking hours for City personnel.
(c) The provisions of this Chapter do not apply to persons engaged in logging operations or in suppressing fires.
10-5-212 Liability.
(a) Nothing in this Chapter shall impose any liability upon the City, or members of the City Council, or any of its officials or employees, nor relieve the owner or occupant of any private property from the duty to keep his private property, sidewalks, and rights-of-way abutting such private property in a safe condition, free from hazards to public use. (b) By enactment of this Chapter the City is not assuming responsibility for the maintenance of street trees, except as otherwise expressly specified in this Chapter, and is not relieving the property owner of the duty to maintain such trees at his or her own expense. (c) Abatement of dangerous condition.
(1) An owner is not precluded by this Chapter from taking action, in the event of an emergency, which action would otherwise violate the terms of this Chapter, if such action were necessary to minimize a dangerous condition. In the event such emergency action is taken, the owner shall notify the City Manager as soon as reasonably possible and no later than the next working day. (2) In the event that an owner has not properly maintained trees for which the owner is responsible, and the trees pose an imminent danger to persons and/or property, constituting an emergency, the City Manager shall refer the matter to the Code Enforcement for consideration of commencement of summary abatement pursuant to Section 1-2-409 of this Code. (3) In the event that an owner has not properly maintained trees for which the owner is responsible, and the trees and the condition does not pose an imminent threat to persons and/or property but has the potential to pose such a threat, the City Manager shall notify the property owner of the nature of the condition and give the property owner thirty days to eliminate the potentially dangerous condition. If the condition has not changed within thirty days of the notification, the City may pursue remedies pursuant to Chapter 4 of Division 2 of Title 1 of this Code. (d) Stop-work order. Whenever the City Manager determines that an action being taken is in conflict with this Chapter, he or she shall cause there to be issued a stop work order, which shall prohibit such action. Such stop work order shall set forth the alleged violations and may list remedies to be taken to correct the violations. The person receiving the stop work order shall be required to report in writing to the City Manager within forty-eight hours regarding the steps to be taken to correct the violations or to appeal the posting of the stop work order. The stop work order shall remain in effect until a finding is made and the circumstances giving the rise to its order no longer exist. Any party receiving a stop work order may appeal through the process outlined in Section 1-2-405 of this Code.
10-5-213 Appeals
Any person may appeal any administrative action taken by the City Manager pursuant to the provisions of this Chapter, including the denial, suspension or revocation of a permit applied for or issued pursuant to this Chapter, to the City Council. Such an appeal shall be taken in accordance with the procedure prescribed by Section 1-2-219 of this Code.
Item 7.3
ATTACHMENT B
10-5-214 Violation—Penalty
Anyone violating this Chapter, including by removing, disfiguring, or damaging a street tree(s) without a permit in compliance with Section 10-5-250, shall be subject to Section 1-2-201 and any other remedies set out in this Chapter and in Division 2 of Title 1.
All revenue from fines received for violations of this Chapter shall be used to purchase and plant replacement trees in compliance with Section 10-5-206. (a)
CHAPTER 4 SPORTS APPARATUS
10-5-400 Traffic Obstruction.
No person shall place, or cause to be placed, any sports apparatus in or on any public or private highway or road, including any portion of the right-of-way thereof, including sidewalks, or in or upon any private property into or upon which the public is admitted by easement or license, so as to cause an obstruction to vehicular or pedestrian traffic. 10-5-401 Violation; Penalty.
If any sports apparatus exists in or on any public or private highway or road, including any portion of the right-of-way thereof, including sidewalks, or in or upon any private property into or upon which the public is admitted by easement or license, so as to cause an obstruction to vehicular or pedestrian traffic, the Director of the Community Development Department may require the removal of the sports apparatus pursuant to Division 2 of Title 1. For purposes of this Chapter, the Director of the Community Development Department shall be the City Manager or their designee.
Item 7.3
CITY COUNCIL AGENDA ITEM NO. 7.4
Consent Item
TITLE: Adopt a Resolution Approving Bail Schedule and Administrative Fine Schedule for Code Enforcement Violations
MEETING DATE: May 14, 2025
PREPARED BY: Rex Osborn, Public Safety Consultant
RECOMMENDATION
Staff recommends that the City Council adopt a resolution approving the Bail Schedule and Administrative Fine Schedule for Code Enforcement violations and authorize staff to submit the Bail Schedule to the San Joaquin County Superior Court.
BACKGROUND
On April 23, 2025, the City Council adopted Ordinance No. 2025-02, amending Titles 1, 2, 4, and 5 of the Mountain House Municipal Code related to code enforcement, public parks and facilities, fireworks, and weed abatement. These amendments enhanced the City’s ability to enforce regulations through administrative citations and legal proceedings. In order to enact these provisions, staff needs the ability to cite those in violation of these sections, and the citations need to have amounts for each violation of the code.
DISCUSSION
To implement the enforcement provisions of Ordinance No. 2025-02, the City must adopt an official bail schedule for use by the San Joaquin County Superior Court when citations are contested in court. In addition, the City is required to establish an administrative fine schedule to support local code enforcement efforts. These schedules provide a fair and consistent structure for penalties and were developed in line with State law and local policies. The fees are designed to recover the City’s costs related to investigating complaints, conducting inspections, and following up on violations.
Ultimately, these measures aim to encourage timely compliance and reduce repeat violations while ensuring the City can recover the cost of enforcement. In most cases, if a property owner receives a notice and corrects the issue quickly, no fee is charged. However, if the violation continues, fines may be issued.
For example, a formal violation notice carries a $90 fee, and citation processing costs an additional $45.
The proposed bail schedule also sets standard fine amounts for specific code violations, which helps the court system apply penalties consistently and efficiently.
The Bail Schedule (Exhibit 1 to the Resolution) establishes standardized penalty amounts for municipal code violations to be enforced by the courts. The Administrative Fine Schedule (Exhibit 2 to the Resolution) establishes cost-recovery fees for staff time, inspections, and legal support related to local code enforcement actions.
Item 7.4
CITY COUNCIL AGENDA ITEM NO. 7.4
Consent Item
FISCAL IMPACT
There is no fiscal impact associated with action; any fees collected because of code enforcement action will be added to the general fund.
STRATEGIC PLAN
In accordance with the Strategic Plan, this item will assist the Code Enforcement division in addressing potential safety hazards before they become critical issues.
ATTACHMENTS
Attachment A – Resolution
Item 7.4
CONSENT ITEM 7.4
ATTACHMENT A
RESOLUTION NO. 2025-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN HOUSE
ADOPTING AN ADMINISTRATIVE FINE SCHEDULE AND BAIL SCHEDULE FOR CODE ENFORCEMENT VIOLATIONS PURSUANT TO ORDINANCE NO. 2025-02 WHEREAS, the City Council of the City of Mountain House adopted Ordinance No. 2025- 02, amending Titles 1, 2, 4, and 5 of the Mountain House Municipal Code to enhance enforcement of local regulations related to code enforcement, public parks and facilities, fireworks, and weed abatement; and
WHEREAS, the ordinance authorizes the use of administrative citations and legal proceedings to enforce violations of the Mountain House Municipal Code; and WHEREAS, to implement these enforcement provisions, it is necessary to adopt (1) an administrative fine schedule to recover the City’s costs for code enforcement activities and (2) a bail schedule to be submitted to the San Joaquin County Superior Court for use when contested citations are adjudicated; and
WHEREAS, the proposed fine and bail schedules are consistent with State law and local policies, and provide a fair, structured, and transparent penalty framework to promote compliance and recover enforcement costs; and
WHEREAS, the City Council has reviewed and considered the proposed fine and bail schedules attached hereto as Exhibit A (Administrative Fine Schedule) and Exhibit B (Bail Schedule);
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mountain House as follows:
1. The Administrative Fine Schedule attached hereto as Exhibit 1 is hereby adopted and shall be used by City staff in connection with the enforcement of violations under the Mountain House Municipal Code.
2. The Bail Schedule attached hereto as Exhibit 2 is hereby adopted and shall be submitted to the San Joaquin County Superior Court for use when citations issued under Ordinance No. 2025-02 are contested.
3. The City Manager or designee is authorized to make minor administrative updates to the schedules as needed to reflect changes in the law or organizational procedures, provided that any material changes shall be brought back to the City Council for approval.
4. This Resolution shall take effect immediately upon its adoption.
Item 7.4
CITY OF MOUNTAIN HOUSE
BAIL SCHEDULE
Municipal Code Parking Violation Description Fine Amount Late Penalty Date Late Penalty Amount 10-2-402(a) NO PARKING (POSTED) $55 Notice Date + 21 days $70.00 10-2-402(b) PARKED OVER 72 CONSECUTIVE HOURS $55 Notice Date + 21 days $70.00 10-2-403(a)(1) NO PARKING ON ROADWAY FOR SALE AS BUSINESS $55 Notice Date + 21 days $70.00 10-2-403(a)(2) NO PARKING ON ROADWAY FOR WASHING OR REPAIRS $55 Notice Date + 21 days $70.00 10-2-403(b) NO PARKING ON ROADWAY FOR HIRE OR SOLICIT OF BUSINESS $55 Notice Date + 21 days $70.00 10-2-404 PARKED 18" OVER CURB / FACING WRONG DIRECTION $55 Notice Date + 21 days $70.00 10-2-405(b) ANGLE PARKING / PARK WITHIN MARKINGS $55 Notice Date + 21 days $70.00 10-2-406 NO PARKING ADJACENT TO SCHOOLS WHEN INDICATED $55 Notice Date + 21 days $70.00 10-2-407(a) NO PARKING IN ALLEYS $55 Notice Date + 21 days $70.00 10-2-408 NO PARKING, STANDING OF FOOD VEHICLES ON ROADWAY $100 Notice Date + 21 days $130.00 10-2-409 ROAD CLOSURES NO PARKING (POSTED) $100 Notice Date + 21 days $55.00 10-2-409.1 DISPLAY OF WARNING DEVICES FOR DISACBLED COMMERCIAL VEHICLE $55 Notice Date + 21 days $70.00 10-2-409.2 PARKING ON PRIVATE PROPERTY WITHOUT PERMISSION $105 Notice Date + 21 days $130.00 10-2-409.3 LOCKING IGNITION REQUIRED $55 Notice Date + 21 days $70.00 10-2-500 NO PARKING SPECIFIED TIMES $55 Notice Date + 21 days $70.00 10-2-502 PARKING SPACE MARKINGS- PARKING WITHIN REQUIRED $55 Notice Date + 21 days $70.00 10-2-503 LIMITED PARKING ZONES $55 Notice Date + 21 days $70.00 10-2-505 POSTED NO PARKING ON CITY PROPERTY $105 Notice Date + 21 days $130.00 10-2-508(a)(1) NO PARKING- CURB MARKINGS (RED) $55 Notice Date + 21 days $70.00 10-2-508(a)(2) NO PARKING- CURB MARKINGS (YELLOW) $55 Notice Date + 21 days $70.00 10-2-508(a)(3) NO PARKING- CURB MARKINGS (WHITE) $55 Notice Date + 21 days $70.00 10-2-508(a)(4) NO PARKING- CURB MARKINGS (GREEN) $55 Notice Date + 21 days $70.00 10-2-508(a)(5) NO PARKING- CURB MARKINGS (BLUE) $285 Notice Date + 21 days $370.00 10-2-702 TRUCKS PROHIBITED OFF DESIGNATED TRUCK ROUTES- OVER 5 TONS $100 Notice Date + 21 days $130.00 10-2-704 COMMERCIAL VEHICLE PARKING PROHIBITED ON CITY STREETS 1st Offense $100 / 2nd Offense $200 /
3rd+ Offense $300 Notice Date + 21 days $130.00
10-2-705 TRAILER / SEMI-TRAILER PARKING PRHIBITED ON CITY STREETS 1st Offense $100 / 2nd Offense $200 /
3rd+ Offense $300 Notice Date + 21 days $130.00
Vehicle Code Parking Violation Description Fine Amount Late Penalty Date Late Penalty Amount 21211(B) OBSTRUCTION OF BIKE LANE $55 Notice Date + 21 days $70.00 21970 BLOCKING SIDEWALK $55 Notice Date + 21 days $70.00 22500(A) PARKING WITHIN INTERSECTION $55 Notice Date + 21 days $70.00 22500(B) PARKING IN CROSSWALK $55 Notice Date + 21 days $70.00 22500(C) BETWEEN SAFETY ZONE AND CURB $55 Notice Date + 21 days $70.00 22500(D) W/IN 15 FT FIRE STATION DRIVEWAY $55 Notice Date + 21 days $70.00 22500(E) PARKED BLOCKING DRIVEWAY $55 Notice Date + 21 days $70.00 22500(F) PARKED ON A SIDEWALK $55 Notice Date + 21 days $70.00 22500(G) BY EXCAVATION/TRAFFIC OBSTRUCTED $55 Notice Date + 21 days $70.00 22500(H) DOUBLE PARKED $55 Notice Date + 21 days $70.00 22500(I) PARKED IN A BUS ZONE $55 Notice Date + 21 days $70.00 22500(J) PARKING IN TUBE OR TUNNEL $55 Notice Date + 21 days $70.00 22500(K) PARKING ON A BRIDGE $55 Notice Date + 21 days $70.00 22500(L) BLOCKING MARKED WHEELCHAIR ACCESS $285 Notice Date + 21 days $370.00 22500(N) DAYLIGHTING- PARKED WITHIN 20' OF CROSSWALK APPROACH $55 Notice Date + 21 days $70.00 22500(Z) VEHICLE PARKED IN OPPOSITE DIRECTION $55 Notice Date + 21 days $70.00 22500.1 PARKING, STOPPING IN FIRE LANE $55 Notice Date + 21 days $70.00 22502(A) PARK PARALLEL RT SIDE W/IN 18" OF CURB $55 Notice Date + 21 days $70.00 22507.8(A) NO PARKING DISABLED STALL/DISPLAY $285 Notice Date + 21 days $370.00 22507.8(B) LOCKING DISABLED STALL/NO PARKING $285 Notice Date + 21 days $370.00 22507.8(C) PARKED IN DISABLED ZONE LINES, HASH MARKS/NO PARKING $285 Notice Date + 21 days $370.00 22514 PARKED/FIRE HYDRANT $55 Notice Date + 21 days $70.00 22515(A) UNATTENDED VEHICLE REQUIREMENTS $55 Notice Date + 21 days $70.00 22515(B) UNATTENDED VEHICLE REQUIREMENTS $55 Notice Date + 21 days $70.00 22517 CAR DOOR OPENED ON MOVING TRAFFIC SIDE $55 Notice Date + 21 days $70.00 22521 PARKING WITHIN 7 1/2' OF RAILROAD RAIL $55 Notice Date + 21 days $70.00 22522 PKG WITHIN 3FT OF SIDEWALK ACCESS RAMP 285 Notice Date + 21 days $370.00 22526(A) ENTERING OCCUPIED INTERSECTION $55 Notice Date + 21 days $70.00 22526(B) ENTER OCCUPIED INTERSECTION/CROSSWALK $55 Notice Date + 21 days $130.00 26708(A)(1) WINDOW TINT $55 Notice Date + 21 days $130.00 26710 CRACKED WINDSHIELD $55 Notice Date + 21 days $130.00 4000(a) EXPIRED REGISTRATION $110 Notice Date + 21 days $130.00 4152.5 REGISTRATION OUT OF STATE IN CA $55 Notice Date + 21 days $70.00 5200 DISPLAY OF PLATES $55 Notice Date + 21 days $70.00 5201(d) COVERED / OBSTRUCTED LICENSE PLATE $55 Notice Date + 21 days $70.00 5201.1(c) ALTERED LICENSE PLATE (REFLECTIVE COATING REMOVED) $55 Notice Date + 21 days $70.00 5204(A) DISPLAY OF TABS $55 Notice Date + 21 days $70.00 ALL CVC SECTIONS NOT LISTED $55 Notice Date + 21 days $70.00 CONSENT ITEM 7.4
ATTACHMENT A
EXHIBIT 1
Item 7.4
City of Mountain House
Code Enforcement Administrative Cost Recovery Schedule
Effective _______________
Fee Description Title Recommended Fee
(Dollars)
1 Complaint received with unfounded violations 0
2 COURTESY NOTICE TO COMPLY: Voluntary corrections of violations within the determined corrections date. The correct by date is typically 10 days but may be less dependent on the risk to public health and safety.
0 3
NOTICE OF VIOLATION: Issued when violation is founded. Courtesy Notice not required for the issuance of a Notice of Violation. The correct by date is typically 10 days but may be less dependent on the risk to public health and safety. Failure to correct violations by corrective date issued on the Notice of Violation will result in the issuance of an Administrative Citation with fines and administrative fees assigned. 90 4
Appeal of determination of Violation-City Council withing 15 days of Hearing Officers determination (not charged if appeal upheld) 120
If violation is corrected no fee is charged.
If violation is not corrected the above fees will be charged. 5 NOTICE AND ORDER TO ABATE: Violation Founded,
No Initial Compliance from Notice of Violation (Includes initial investigation of complaint, 10-day notice to correct violation, follow-up inspection to confirm noncompliance, Follow-up Inspection to confirm compliance or non-compliance) 90 6 CORRECTIVE ACTION FOR CONTINUED NON-COMPLIANCE: One or more of the following actions may be taken if the violator does not comply following the Second Notice and Order to Abate. {Note: This cost/fee is in addition to the "Second Notice and Order to Abate" fee.}
90 7 Citation Processing Fee (Includes issuance of the citation, notices, recording, mailing costs) {Note: This cost/fee is in addition to the amount of the citation itself.} 45 8 Citation Non-Compliance Fee - Each (Includes follow up and recurring services for each continuance or incident of non-compliance, includes inspections, court attendance, follow-up/final inspection, etc.) {Note: This cost/fee is in addition to the Citation Processing Fee.}
100
9 District Attorney Processing Fee - (Includes referral report, meeting attendance, follow-up inspection)
495
CONSENT ITEM 7.4
ATTACHMENT A
EXHIBIT 2
Item 7.4
10 District Attorney - Court Support or Non-Compliance Fee (Includes research and preparation, court attendance, follow-up inspection)
495
11 ADDITIONAL INSPECTIONS (Recurring or additional inspections required for ongoing violations and/or continual non-compliance): - Actual time at staff cost- recovery hourly rates [Unless we want to establish a fixed fee for an inspection.]- FIXED FEE- Standard Inspections
SPECIALIZED FEE- Inspections requiring special equipment/tools to complete 90 120
12 Appeal of Statement of Expense-Hearing Officer within 15 days of statement (not charged if appeal upheld)
120
13 Appeal of Statement of Expense-City Council within 15 days of Hearing Officers determination (not charged if appeal upheld)
120
ADMINISTRATIVE FINES
Misdemeanor
The violation of any provision of the City Code or other ordinance of the City shall be punishable by a fine of one thousand dollars ($1,000) or imprisonment of six (6) months, or both, as a general misdemeanor.
Misdemeanor prosecutions must be filed and coordinated through the City Attorney’s Office.
Infraction
Any violation of any provision of the City Code or other ordinance of the City Council may, at the discretion of the City Attorney, be prosecuted as an infraction. Every violation prosecuted as an infraction shall be punishable by a fine not exceeding $100 for the first violation; $200 for the second violation within one year, or $500 for the third and subsequent violation within one year.
Building and Safety Code Violations
Any violation of Building and Safety Codes of the State, City ordinances ordinance of the City Council may, at the discretion of the city attorney, be prosecuted as an infraction. Every violation prosecuted as an infraction shall be punishable by a fine not exceeding $130 for the first violation; $700 for the second violation within one year, or $1,300 for the third and subsequent violation within one year.
Fireworks
The use of “Dangerous Fireworks” as defined in California Health and Safety Code 12505 will have a fine of $1,000 per each offense. The use of “Safe and Sane” fireworks will have a standard fine amount as any Infraction of the City Ordinances.
Illegal Dumping
The unlawful dumping of small household waste (i.e. small trash bags, small boxes), yard clippings under 1 cubic yard or rubbish will be $500 per violation. The unlawful dumping of large household waste (i.e. appliances, furniture), commercial dumping, hazardous materials and yard clippings over 1 cubic yard will be $1,000 per violation.
CONSENT ITEM 7.4
ATTACHMENT A
EXHIBIT 2
Item 7.4
CITY COUNCIL AGENDA ITEM NO. 7.5
Consent Item
TITLE: Adopt Resolution to Approve Memorandum of Understanding with the Information Systems Division of San Joaquin County for Technology Services MEETING DATE: May 14, 2025
PREPARED BY: Sarah Ragsdale, Administrative Services Director
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute the attached Memorandum of Understanding (MOU) for contracted technology services with the Information Systems Division of San Joaquin County in an amount not to exceed $316,173.56 for fiscal year 2025/26.
BACKGROUND
In the 1990s, the Mountain House development project was a division of the San Joaquin County Community Development Department. Since Mountain House was a part of the County, all administrative services, such as payroll, accounts payable, employee benefits, treasury, and technology services were performed by the County. After Mountain House became an independent district in 2008, a close and cooperative relationship with the County continued. The County continued to perform the administrative services and the District reimbursed the County at the County’s “cost of service” - a cost that was less than would have been incurred had the tasks been performed in-house. When Mountain House became a City in July 2024, the Auditor-Controller of the County terminated the payroll, accounts payable, employee benefits, and treasury services and City staff assumed full responsibility for these functions. However, the Information Services Division has continued to provide technology services to the City.
The Information Systems Division (ISD) of San Joaquin County has been the sole provider of information technology services for Mountain House. ISD has managed the acquisition, replacement, installation and maintenance of equipment, software systems, and phone systems. The City has been included in the Division’s network and is protected by its security systems.
DISCUSSION
Staff recommends that the City Council authorize the City Manager to execute the attached Memorandum of Understanding (Attachment A) for contracted technology services with the Information Systems Division of San Joaquin County in an amount not to exceed $316,173.56 for fiscal year 2025/26. The scope of services that will be performed by ISD include the following:
· Support of City servers
· Daily backups
· Coordination with ISD network, email system, data protection and security teams · M365 administration and support
· Access to cybersecurity tools
· On-site support once a week and on-call support during business hours · Administration of Tyler financial accounting system and installation and support of other software systems as needed
· Support for Town Hall and water and wastewater treatment plants (other than SCADA) Item 7.5
CITY COUNCIL AGENDA ITEM NO. 7.5
Consent Item
· Support for remote work and meetings
· Coordination with vendors for analysis, design, development, testing, implementation, and documentation of IT projects
· Input on IT related expansion projects
· Review, evaluation and recommendations on current and future systems · Specialized support for existing program, technologies and systems · Updates to City systems and new technology trends
· Participation in revolving equipment replacement program and recommendations for additional equipment needs
· Support for estimated 50 users and 75 devices including VoIP phones, wireless access points, switches, display board systems, printers and mobile devices; additional units will be supported at no additional cost
Staff recommends continuing our relationship with ISD. Mountain House requires a robust service provider that is familiar with the City’s needs, existing equipment, operations, and staff. Changing providers at this time would be disruptive to City operations; it would require considerable time to bring services up to the standard we are now receiving and most providers would not have the number of staff, resources and government experience that the County can offer. As a not-for-profit entity, the rate the County will charge is “cost of services.”
Creating an in-house ISD Division would be cost-prohibitive. The City does not have the resources to replicate the level of staffing, expertise, experience, resources, purchasing power, and training opportunities of the County. The proposed MOU is in an amount not to exceed $316,173.56. This amount includes $50,000.00 for the City’s share of the upgrade of Sheriff’s radio system to provide enhanced coverage in the Mountain House area. The remaining amount of the MOU would cover approximately one FTE assigned to Information Technology and none of the other services we are currently provided.
FISCAL IMPACT
Sufficient funds for information technology services for the remainder of this fiscal year current are available. The proposed 2025/26 agreement is in an amount not to exceed $316,173.56. This amount includes a one-time charge of $50,000.00 for the City’s share of the upgrade of Sheriff’s radio system to provide enhanced coverage in the Mountain House area.
FY 2024/25 FY 2025/26
Cost of services $ 254,336 $ 316,174
Less one time charge for radio upgrade _______ (50,000) Cost less upgrade $ 254,336 $ 266,174
Sufficient funds will be proposed in the fiscal year 2025/26 budget to fund this agreement.
Costs for future fiscal years will be based on the County’s cost of services, including overhead.
STRATEGIC PLAN
Item 7.5
CITY COUNCIL AGENDA ITEM NO. 7.5
Consent Item
Approval of the MOU with the San Joaquin Information Systems Division will help the City achieve the following goals:
· Analyze the nature and cost of ISD services
· Negotiate MOU for ISD services
ATTACHMENTS
A: Memorandum of Understanding with the Information Systems Division of San Joaquin County for Technology Services
B: Resolution Approving Memorandum of Understanding with the Information Systems Division of San Joaquin County for Technology Services
Item 7.5
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF MOUNTAIN HOUSE AND THE SAN JOAQUIN COUNTY
INFORMATION SYSTEMS DIVISION
FOR FISCAL YEAR 2025/2026
I. PURPOSE
The following Memorandum of Understanding (MOU) is entered into between the San Joaquin County Information Systems Division (ISD) and City of Mountain House and governs the conditions for delivery and standards for compensation for information technology services for the 2025/2026 fiscal year.
II. SERVICES
o Maintaining electronic interfaces between City of Mountain House and Information Systems Division; the San Joaquin County’s local area network; the Internet and any future City of Mountain House to County connections.
o System analysis and programming as required.
o Providing teleprocessing access to County departments that allow City of Mountain House access to their on-line systems.
o Provide the following IT functions
o Systems support of City of Mountain House servers
§ Installation of Operating Systems and Security Patches § Operation System administration
§ Maintain Server hardware
o Work with ISD’s Network Administration Team
o Work with ISD’s Data Protection Team
o Work with ISD’s Information Security Team
o Microsoft SQL Server Support
o M365 Administration and support including Microsoft Azure integration o M365 Suite Administration and support for City of Mountain House users o KnowBe4 access for City of Mountain House users
o Tanium access for City of Mountain House users
o Access to other Cybersecurity Tools for City of Mountain House users o Administration of City of Mountain House’s Active Directory Organizational Unit (OU)
o Provide technical leadership and coordination of the ISD Team o Desktop Support for City of Mountain House user community o Administration of:
§ Tyler Finance System
• Assistance with system updates provided by Vendor
• City of Mountain House is responsible for ensuring a valid maintenance contract with the vendor for the Tyler Finance System
o Support City of Mountain House management team with IT requests o Support City of Mountain House facilities as follows:
§ Administration Complex facility located in City of Mountain House § Wastewater Treatment Plant staff located in City of Mountain House • Does not include support for the SCADA systems
§ Water Treatment Plant staff located in City of Mountain House • Does include support for the SCADA systems
o Document/Update City of Mountain House IT Process and Procedures o Support City of Mountain House remote work plan
o Coordinate with vendors for analysis, design, development, testing, implementation, and documentation of IT projects
o Advise City of Mountain House on IT related expansion projects Item 7.5
o Analyze user workflow requirements and recommend solutions on an as needed basis
o Review/Evaluate/Recommend current and future systems and applications on an as needed basis
o Provide specialized support for existing programs/technologies/systems on an as needed basis
o Attend and participate in professional group meetings o Stay current with new technology trends
o Services include the support of approximately 50 users, and over 75 devices, including PC’s, VoIP phones, wireless access points, switches, display board systems, lobby areas, classrooms, printers, and mobile devices. Counts may vary during the fiscal year and will not result in any changes in fees.
III. CHARGES FOR SERVICES AND ACCOUNTING METHOD USED
o This amount is determined based on the average cost of salary and benefits for each assigned classification, consistent with the cost basis for each classification included in the Fiscal Year 2025/2026 San Joaquin County Data Processing Budget. For fiscal year 2025/2026, ISD will provide .2 FTE – ISA-II to City of Mountain House. ISD will charge Mountain House the annual costs for ISD staff which is $38,787.52.In addition, there will be an estimated administrative overhead charge of $6,356.25. (based on 16.39% of the salary and benefits cost basis for the assigned staff), which is a prorated share of the indirect costs allocated to all ISD staff.
o For other System and Programming Services (ISD Staff Support-Programming Charge) provided by ISD Staff facilitating City of Mountain House related information technology services, ISD will charge a fee equal to the number of ISD staff hours used multiplied by an hourly rate using the method described below. Beginning July 1, 2025, this rate will be set at $162.10 per hour. Based on an analysis of previous year’s usage, the total ISD Staff Support Programming Charge to City of Mountain House for the 2025/2026 County fiscal year is expected to be $11,330.58. City of Mountain House will only be charged the number of hours actually worked.
o In that ISD’s Systems and Programming costs are essentially fixed, and that customer usage is not always predictable, City of Mountain House acknowledges that these Systems and Programming Services hourly rates will be reviewed and may be periodically adjusted throughout the year. In adjusting these rates, ISD warrants that the calculated amounts will not exceed its costs to provide these services, and that any adjustments associated with these reviews will be distributed equitably across all agencies using the service.
o City of Mountain House has 3 servers virtualized in the ISD data center. ISD will charge City of Mountain House for hosting virtualized servers (including the cost of data backups) inclusive of those listed below and any additional servers as requested by City of Mountain House.
o SJCVMMHACC1 – Tyler/OpenGov SQL Server
o SJCVMMHFS1 – File Server
o SJCVMMHOPENGOV – Application Server
o City of Mountain House has 30 desktops/laptops on the ISD Office Automation Replacement Program. The estimated monthly lease cost for these 30 devices is $1,850 per desktop/laptop. Annual cost $1,850 X 12 = $22,200.00 o If additional office automation equipment is needed it may be added through the ISD Office Automation Replacement program (at additional cost). o ISD will charge City of Mountain House an annual charge for:
o Document Imaging of $1,534
o Data Backups of $6,756
o Information Security of $4,085
o Department Information Security Officer (DISO) of $33,174 Item 7.5
o Office 365 (Email) of $31,018
o End User Device Support of $15,486
o ISD Cloud Services of $12,322
o SQL Database Administration of $22,657
o Enterprise Service Management of $4,671
o Identity Management Services of $2,055
o LAN & WLAN Support of $37,656
o Count WAN & Internet of $11,582
o Adobe licenses of $4,503.21
Sum of annual charges for items above: $187,499.21
o City of Mountain House will contribute the sum of $50,000.00 to the San Joaquin County initiative to upgrade the radio system capability to provide enhanced coverage in the Mountain House area. ISD will bill Mountain House as part of the Semi-Annual Radio billings ($25K in December 2025 and $25K in June 2026). o City of Mountain House acknowledges that during the course of the year, ISD may provide supplies and/or services that were not anticipated at the time this MOU was executed.
City of Mountain House agrees to compensate ISD in these cases under the condition that the fees charged do not exceed ISD’s costs to provide the supplies and/or services, and that the fees are consistent with the fees charged to other agencies for the same, or similar supplies and/or services.
Method Used:
Per-hour and per-transaction (unit) rates are determined by estimating the total cost of providing each service, including administrative and other overhead costs, and dividing by the total number of units expected to be consumed by ISD’s customers over the course of the year. Customers are billed monthly at the appropriate rate for each service according to the number of units required to provide each service during the month.
Documentation:
Throughout the duration of this MOU, on a monthly basis, ISD shall provide City of Mountain House with a detailed accounting of the services provided and the charges incurred during the previous month. At a minimum, this detail should include:
o For activities billed hourly, for each task performed, the following data shall be provided:
o Date the work was performed
o Number of hours or fraction thereof required to perform the work. o A description of the work performed
o For on-site staff, timesheets and payroll records shall be maintained and provided to City of Mountain House upon request
Summary of Charges for Service:
Item 7.5
Annual costs for ISD staff
$38,787.52
Estimated administrative overhead charge 6,356.25
Support programming charge - ESTIMATE 11,330.58
ISD Office Automation Replacement Program annual cost 22,200.00 Various annual charges 187,499.21
Radio System Upgrade to Mountain House 50,000.00
TOTAL $316,173.56
IV.SAFEGUARD OF INFORMATION
The San Joaquin County Information System Division will ensure the security of their computer systems information, access, use and disposal, as specified in 45 CFR 205.50 and 45 CFR 303.21.
V. DURATION
This Memorandum of Understanding shall become effective July 1, 2025, and shall be in effect until June 30, 2026. Amendments to this Memorandum of Understanding may be made at any time subject to the mutual written confirmation by ISD and City of Mountain House.
VI. GOVERNING LAW AND JURISDICTION
This MOU shall be construed in accordance with the laws of the State of California and the parties hereto agree that venue shall be in San Joaquin County, California., without regard for conflict of law principles.
VII. INDEMNIFICATION
The Parties shall, at their own expense, defend, indemnify and hold harmless one another from and against any losses, liabilities, damages, penalties, costs, fees including without limitation reasonable attorneys’ fees, and expenses from any claim or action, including without limitation for bodily injury or death, to the extent caused by or arising from the sole negligence or willful misconduct of the other Party, its employees, officers, agents or subcontractors.
VIII. NOTICES:
Any notice required to be given pursuant to the terms and conditions hereof shall be in writing and shall be affected by one of the following methods: personal delivery, prepaid Certified FirstClass Mail, County E-mail with read receipt enabled (and confirmed receipt thereof), or prepaid Priority Mail with delivery confirmation. Unless otherwise designated in writing by either party, such notice shall be mailed to the addresses shown below FOR City of Mountain House: FOR COUNTY:
C/O: Steven Pinkerton, City Manager C/O: Mark Thomas, Director of ISD 251 E Main St, Mountain House, CA 95391 44 N San Joaquin St., Stockton, CA [email protected] [email protected]
XI. Termination.
Item 7.5
Either Party to this MOU may terminate this MOU for convenience upon ninety (90) days’ written notice. In the event of termination, ISD shall be entitled to compensation for services performed to the effective date of termination.
XII. FORCE MAJEURE:
It is agreed that neither party shall be responsible for delays in delivery, acceptance of delivery, or failure to perform when such delay or failure is attributable to Acts of God, war, strikes, riots, lockouts, accidents, rules or regulations of any governmental agencies or other matters or conditions beyond the control of either ISD or City of Mountain House.
XIII. COMPLIANCE:
ISD and City of Mountain House shall comply with all federal, state and local laws, regulations and requirements necessary for the provision and receipt of contracted services.
XIV. ENTIRE AGREEMENT:
This MOU represents the entire agreement between the Parties and supersedes any prior or parallel agreement between the Parties.
XV. COUNTERPARTS
This MOU may be executed in one or more counterparts, by wet or digital signature and all shall be treated as effective execution of this MOU as if all parties had signed the same document.
Signature: ______________________ Signature: ______________________ Mark Thomas Steve Pinkerton
Director of Information Services City Manager
San Joaquin County City of Mountain House
Dated: ___________________________ Dated: ___________________________ Item 7.5
ITEM 7.5
ATTACHMENT B
RESOLUTION NO. 2025-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN HOUSE APPROVING A
MEMORANDUM OF UNDERSTANDING WITH THE INFORMATION SYSTEMS DIVISION OF SAN JOAQUIN COUNTY FOR TECHNOLOGY SERVICES FOR FISCAL YEAR 2025/26 WHEREAS, the Information Systems Division (ISD) of San Joaquin County has provided technology services to Mountain House since its early development stages, including network management, equipment installation, software support, cybersecurity protection, and on-site assistance); and WHEREAS, since Mountain House became a City in July 2024, ISD has continued to provide essential information technology services to support operations at City Hall and other City facilities, ensuring service continuity and leveraging ISD’s existing infrastructure, staffing, and government expertise; and
WHEREAS, the City of Mountain House seeks to continue this cost-effective partnership through a Memorandum of Understanding (MOU) that outlines a scope of services and a not-to-exceed amount of $316,173.56 for fiscal year 2025/26, which includes a one-time charge of $50,000 for the City’s share of the upgrade of the Sheriff’s radio system to improve coverage in the Mountain House area; and WHEREAS, the City Council finds that maintaining the existing relationship with ISD ensures uninterrupted Information Technology services, minimizes operational disruption, and avoids the substantial cost and complexity of creating an in-house division or contracting with a new provider.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mountain House as follows:
1. The City Council hereby approves the Memorandum of Understanding with the Information Systems Division of San Joaquin County for technology services in an amount not to exceed $316,173.56 for fiscal year 2025/26.
2. The City Manager is authorized and directed to execute the MOU, and take all necessary actions to carry out the purpose and intent of this resolution.
PASSED AND ADOPTED by the City Council of the City of Mountain House on the 14th day of May 2025, by the following vote:
Item 7.5
ITEM 7.5
ATTACHMENT B
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Andy Su, Mayor
ATTEST:
Margaret Wimberly, City Clerk
Item 7.5
CITY COUNCIL AGENDA ITEM NO. 8.1
Policy and Action
TITLE: Establish a Facility Rental Fee Waiver or Grant Program MEETING DATE: May 14, 2025
PREPARED BY: Laura Johnston, Recreation Manager
RECOMMENDATION
Staff recommends that City Council authorize a Facility Rental Fee Waiver or Grant Program and direct staff to create a program for Mountain House Community Based Organizations that incorporates Council direction provided at this meeting.
BACKGROUND
On March 12, 2025, staff presented information regarding several nonprofit community-based organizations (CBOs) in Mountain House who have requested that the City waive their facility rental fees to help reduce the cost of their events or meetings.
Staff presented to Council a facility use fee waiver/grant program comparison (Attachment A). Many comparable cities offer a variation of a fee waiver or a grant program including Discovery Bay, Dublin, and Milpitas. Each city has its own application process but, in general, the funding supports organizations’ services and events that further the strategic goals of the respective City.
Council requested that staff provide a list of groups in Mountain House that currently rent city-owned facilities (Attachment B). Most of the CBOs rent park spaces and host large events for more than 500 attendees. Some groups charge an entrance fee for their events and some offer events that are free to attend. Some CBOs host private events, but most events are open to the public. Some of the CBOs are new to Mountain House, but the majority have hosted the same annual event or programs for years.
Council members stated that there should be a nonprofit verification process to ensure the nonprofits are legitimate. Some noted that many events are heavily funded by sponsorships, donations and advertising, and that some charge an entrance fee.
Council members also noted that the City currently allows nonprofit civic organizations one free hour of use per month for indoor facilities. The City also adopted Resolution 2024-66 that provides nonprofits a 50% reduction in rental fees for indoor facilities and parks.
DISCUSSION
To ensure that the CBOs are nonprofit, staff has created a Nonprofit Verification Form (Attachment C).
CBOs would be required to provide proof of their nonprofit status:
· Current IRS Tax Exempt Letter with 501(c)(3) or 501(c)(4) designation · “Active” status with the California Secretary of State Item 8.1
CITY COUNCIL AGENDA ITEM NO. 8.1
Policy and Action
CBOs would be required to provide a listing of members and at least 75% of the members must reside within Mountain House and have a Mountain House mailing address (95391). CBOs whose principal address is within the City will have priority over organizations whose principal address is not within the City.
Staff would develop the program based on additional criteria established by Council which may include the following in addition to the items listed above:
· Fee waivers for meetings will be considered only if they are free of charge, open to the public and provide a public benefit.
· CBO applicants must submit an itemized event budget and provide proof of financial ability to cover event costs.
· Event hosts must disclose the number of sponsors and provide estimated amounts of sponsorships, donations, and advertisements.
· CBOs must be in good standing with the City and have no prior negative reports. · Funds will not be disbursed directly to the organization but will be applied to rental fees. · Events must receive a positive Facility Attendant Report at the conclusion to maintain good standing. · A post-event follow-up report is due within 30 days to remain in good standing.
Staff recommends that Council discuss the need to establish a Facility Rental Fee Waiver or Grant Program for CBOs and provide staff direction as to what should be incorporated in the program.
FISCAL IMPACT
To the extent fee waivers are provided or grants awarded, there will be a reduction in facility rental revenue. The amount of the reduction will be dependent on the amounts of waivers and grants and the number of CBO facility rentals. Staff would maintain records of foregone revenue.
STRATEGIC PLAN
Establishment of a Fee Waiver/Grant Program will help in achieving the following goals:
· Analyze the cost of maintaining community facilities, parks and fields and recommend appropriate fees.
· Plan and implement recreation programs that will engage the community and are within the financial and personnel resources of the City.
ACTION FOLLOWING CITY COUNCIL APPROVAL
Staff will establish a Fee Waiver/Grant Program that complies with City Council’s direction.
ATTACHMENTS
A. Facility Use Fee Waiver or Grant Program Comparison
B. Mountain House Community Based Organizations
C. Nonprofit Verification Form
Item 8.1
Facility Use Grant/Waiver Programs Comparison ATTACHMENT A Brentwood Discovery Bay Dublin 1 Dublin 2
Title of Program Economic Development Grant Program Fee Waiver Program Discretionary Grant Program Guidelines Arts Space Grant Program Appropriation Amount City of Brentwood sets aside 20% of its business operating tax revenue.
$15,000 appropriated annually.
Approval City City Council City City Council City City Council Staff are given authority buy City Council to review and approve.
Recipients Any organization or business can apply, if they have a current Brentwood Business License or are exempt from
the Business License Requirement. Non‐profit and/or
tax‐exempt organizations are also eligible.
Not clearly defined. Dublin non‐profits or nonprofits serving Dublin residents; groups associated with a
Dublin school; not dependent on funding
Dublin, non‐profit arts organization and
artists.
Eligibility Criteria Grants are for operational expenses' fundraising is permitted: aligns with City Council goals and strategic plan; project will increase shopping and tourism;
supports small business development; new or first time
event that fills a need
Fees may be waived on a case‐by‐case basis
by GM upon finding of public interest.
The funding this program provides must be
used for a public purpose or benefit.
Funded activities must be open and
accessible to all members of the public
regardless of race, creed, gender, sexual
orientation.
Dublin, non‐profit arts organization and
artists.
Application Deadline;Disbursement Dates
Applications are accepted March‐April:
Disbursed in July.
Applications accepted on an ongoing basis.
Funds are disbursed in July.
Applications are evaluated and awarded on
a first‐come basis beginning July 1; 50%
between July 1‐Deember 31, and 50%
available January 1‐June 30
Applications are reviewed on a ongoing
basis.
Exceptions None None 1. Promote or support political, religious, commercial or other private activities.
2. Fund educational scholarships or other
monetary awards.
3. Fund the purchase of meals, alcohol,
travel, or lodging accommodations.
4. Fund capital purchases or fund‐raising
activities.5. Fund any non‐public purpose activities as determined by the City Manager or their
di
None
Award Amounts The applicant is required to submit a Final Report & Reimbursement Request Form in order to receive grant
funds upon completion of their project, program or
event.
Awarded funds may cover facility rental
fees.
Block grants maximum award: $500
Matching Grants maximum award: $2,000
Arts organization and artists may be
awarded up to 40 facility rental hours per
organization, per year.
Acknowledging CitySupport
The City of Brentwood logo must be included in all
marketing materials as a sponsor.
None None None
Reporting If awarded funding, and upon completion of the project, program or event, the applicant is required to submit a Final Report & Reimbursement Request Form in order to
receive grant funds
Not required. Within thirty (30) days from the completion of the funded activities, each organization
shall provide to the City a report on the
outcomes from the funded activities.
Applicants receiving Arts Space Grants are
required to submit a brief report at the
completion of their space use, documenting
participation – ticket sales, photos, etc. –
and describing how well the program met
the Objective/Outcome/Measures
id tifi d i th i li ti ithi 14
1 Item 8.1
Facility Use Grant/Waiver Programs Comparison ATTACHMENT A Title of ProgramAppropriation AmountApprovalRecipientsEligibility CriteriaApplication Deadline;Disbursement Dates ExceptionsAward AmountsAcknowledging CitySupportReporting Fremont Lathrop Milpitas Ripon
Special Event Sponsorship Program Fee Waiver Policy, Request Donations and Fee Waiver/ Reduction Non‐Profit Agency Eligibility Application Amount of funds for the program and for
each applicable event is presented for City
Council consideration in June. City
calculates anticipated award amounts inMay. The final allocation of funds is determine and announced in the fiscal
Not specified. City City Council establishes an annual
budget amount for fee waivers donations.
Not specified.
City Council Lathrop Muni Code 12.20
Commission typically reviews, makes
recommendations to City Council.
City Council Chapiter 5.52.030 Exemptions or Partial Fee Waivers.
SESP awards are meant to partially offset
the cost of city services for events produced
by non‐profit organizations. Award
amounts may vary per event per year.
Organizers could request up to 50% of the
anticipated total event cost or 100% of the
anticipated cost of city services, whichever
Intergovernmental agencies; Lathrop non‐
profits; Lathrop organization with financial
hardship directly benefitting the Lathrop
community.
intergovernmental agencies, non‐profit
organizations that provide Milpitas
community benefit
Approved non‐profits, on city master list of
non‐profits.
Organizations must submit a Letter of
Intent, LOI and application. The program
aims to foster events that enhance
economic development, encourage
community participation, promotes arts
and cultural growth, provide a rich variety
of festivities for residents and visitors.
Organization must be in good standing;
501c3 or 501c6: Fremont business; Event
Applicants must submit a letter, receive a
reservation permit; provide mission
statement and a financial statement. Must
be non discriminatory and offers
community a general public benefit.
1. Non‐profit organization with 501c32. Non‐discriminatory, non‐political If event is a fundraiser, organization must
demonstrate that at least 60% of funds
raised for the community event, is
advertised to the public, and there is no
entrance fee.
Approved non‐profits, on city master list of
non‐profits.
Letters of Intent are due in January;
applications are due in March.
Funds are disbursed in July.
Not listed. Applciations are accpeted on an ongoing
basis and disbursed once annually.
Not listed.
Grant funds must be used for event‐related
expenses only and not for operating deficit,
administrative costs, or otherorganizational costs unrelated to production of the event or for any capital
equipment purchases. No part of the grant
shall be used for any political advocacy or
for sole religious purposes. Not intended to
support events where the purpose is
fundraising to advocate a cause or political
iti
None Funds may not cover deposits or City staff
overtime.
None
Award amounts may be less than the
amount requested.
Unknown Approved applicants may receveive a fee
waiver of maximum of $1,500 per fiscal
year or a maximum $500 donation annually
to cover rental fees of City facilities or
Awarded applicants are awarded reduced
fees for community center or hall one time
per calendar year.
Grant recipients must acknowledge the
City’s financial support in all appropriate
materials and media. Grantees must display
the City’s logo whenever other sponsor
logos are displayed, and in accordance with
Not required. City should be recognized on advertising. Not required.
Reports are due 90 days after event or 30
days after finally billing information
received by grantee
Reports are due within 30 days of event or
program.
Reports are due within 60 days of the
event.
Not required.
2 Item 8.1
Mountain House Parks and Recreation Community User Groups Attachment B Organization Type Entity Type Principal Address
Mountain House
1 Central Valley Gujarati Community Association Cultural Non‐profit X 2 Central Valley Maraehit Mandal Cultural Non‐profit X
3 Moham Foundation Cultural Non‐profit X
4 Mountain House Events Special Event Production LLC X
5 Mountain House Flag Football Youth, Adult Sports Non‐profit X 6 Lammersville Unified School Disctrict School District School District X 7 Mountain House Muslim Association Cultural Non‐profit X 8 Mountain House Punjabi Heritage Association Cultural Non‐profit X 9 Mountain House Sports and Recreation Youth, Adult Sports Non‐profit X 10 Poorba, Inc Cultural Non‐profit X
11 Royal Kings Youth Sports Non‐profit X
12 Central Valley Tamil Manram Cultural Stock Corp X
13 The Village Closet Community Benefit Non‐profit X
14 Wicklund School Foundation School Non‐profit X
15 Mountain House Tracy Cricket Association Youth, Adult Sports Non‐profit X 16 Mountain House Cricket Club Youth, Adult Sports Non‐profit Pleasanton 17 Soccer Shots Youth Sports LLC Tracy
18 Royal Kings Mountain House Stallions Youth Sports Non‐profit X 19 Mountain House Chamber Community Benefit Non‐profit X 20 Rotary Club of Mountain House Community Benefit Non‐profit X 21 Mountain House Tracy Tennis Foundation Adult Sports Non‐profit X 22 Mountain House Little League Youth Sports Non‐profit X 23 Mountain House Cricket Academy Youth, Adult Sports Non‐profit X 24 VK Cricket Academy Youth Sports Non‐profit Fremont
25 Cricket for Cubs Youth Sports Non‐profit Pleasanton
26 Mountain House Scouting Foundation Public Benefit Non‐profit X 27 Girl Scouts Heart of Central California Youth Organization Non‐profit X As of 5/6/2025
Item 8.1
City of Mountain House- Parks and Recreation | 251 E. Main Street, Mountain House, CA 95391 | 209-831-5623 | www.mountainhouseca.gov City of Mountain House Attachment C
Parks and Recreation Nonprofit
Organization Verification Form
Type of Organization
☐ Mountain House Youth Organization
☐ Mountain House Adult Organization
Organization Name (As stated on IRS Tax Form)
Contact Person Contact Email
Contact Phone Website/Social Media Page(s)
Mailing Address
City State Zip
Residency Information
☐ 50% or less Mountain House residents
☐ More than 51% but less than 75%
Mountain House residents
☐ At least 75% Mountain House residents
Nonprofit Status
☐ Charitable (IRS Tax Exempt Code 501(c)3
or FTB Code 23701D
☐ Social Welfare (IRS Tax Exempt Code
501(c)4 or FTB Code 23701F
Participants
How many participants do you have as part of your organization? Organization description.
Please describe your organization and how your organization benefits the Mountain House Community.
Documents to submit with application:
☐ Current IRS tax Exempt Letter, from an organized nonprofit group with current 501(c) (3) or 501(c)(4) IRS status.
☐ Current rosters Roster listing organization’s participants residing within the Mountain House’s boundaries (95391).
I verify that the information contained in this application are true and accurate to the best of my knowledge; and understand all documents are required to sanction the group as an authorized nonprofit.
Authorized Agent Signature Date
Item 8.1
CITY COUNCIL AGENDA ITEM NO. 8.2
Policy and Action
TITLE: Adopt Resolution Approving Community Special Event Rental Policies MEETING DATE: May 14, 2025
PREPARED BY: Laura Johnston, Recreation Manager
RECOMMENDATION
Staff recommend that the City Council adopt a resolution approving the proposed Community Special Events rental policies.
BACKGROUND
The City develops, updates and enforces policies in order to ensure that the functions of the City are performed efficiently and consistently and to have procedures in place to address issues as they arise. To ensure the efficient, fair, and consistent use of City parks and facilities for large special events hosted by external organizations, the City recognizes the need for formalized policies.
On September 11, 2019, staff presented a resolution to the Mountain House Community Services District Board of Directors to adopt a Special Events and Facilities Use Policy Manual. The manual established definitions, application procedures, general event policies, and an Incident Action Plan Policy. It also incorporated pre-existing Fields and Facilities Use Policies, which were adopted on January 21, 2015.
Several Board members expressed the need for improved collaboration with Public Safety, notably the San Joaquin County Sheriff’s Department and the Fire Department. They recommended revisions to enhance public safety oversight and to streamline the application process for community groups, anticipating increased demand as the population grows. Consequently, the Board directed staff to revise the manual to make the process more inclusive and user-friendly.
DISCUSSION
A Community Special Event is defined as any activity on or in a city-operated park or facility that, due to the anticipated number of attendees or the nature of the event, is not compatible with the generally intended use of the facility or park for which it is proposed. Events are often classified based on their location and required jurisdictional permissions. The classifications identified are Right-of-Way Events including parades, walks, runs, demonstrations, or block parties and Public Park Eventsincluding concerts, fairs, festivals, or weddings.
Collaboration with Public Safety and Public Works
The Parks and Recreation Department collaborated with Code Enforcement, the Public Works Department, the Fire Department, and Public Safety personnel to develop the proposed policies and procedures. These guidelines were shaped by envisioning a wide range of possible scenarios, drawing on historical data, and the professional expertise of the committee members.
Due to the nature of the events, their location, and the anticipated number of attendees, the City has implemented a series of checks and balances in collaboration with these various departments to ensure the safety of participants and protection of public facilities from damage. The application process begins Item 8.2
CITY COUNCIL AGENDA ITEM NO. 8.2
Policy and Action
at least 90 days prior to the anticipated start date of the event. It begins with an initial review by staff, followed by assessments and approvals from Parks and Recreation, Code Enforcement, the Public Works Department, the Fire Department, and Public Safety personnel. Throughout the process, the applicant is kept informed and notified of any specific requirements or conditions needed for approval.
Proposed Fees
Due to the anticipated number of attendees and length of the special events, the proposed fees are twice the rate of the current ‘Athletic Field, Park’ rental fees.
The proposed hourly fees are as follows:
Facility Group A
Gov’t, LUSD,
MOUs
Group B
Sanctioned
Non-Profits
Group C
Residents
Group D
NonResidents/
Commercial
Central Park Field D $20 $20 $40 $80
Central Park Field C $10 $10 $20 $40
Central Park Field B $10 $10 $20 $40
Central Park Field A $10 $10 $20 $40
Permitting Process
The City has begun to develop the permitting process through GoGov, an online platform already used to track community requests. Staff has developed a Community Special Event Permit Process (Attachment C) as outlined below to streamline the permitting process.
1. Applicant submits the application and chooses the classification of event based on established criteria.
2. Depending on the classification, the application is sent to the respective department - Code Enforcement or Parks and Recreation - for review.
3. After the initial review, the application is sent to each department (Parks and Recreation, Public Works, Code Enforcement, Fire Department, and Public Safety). All of the requirements are set by each department and fees are assessed. Applicants are notified of the additional requirements and required to pay the applicable fees.
4. Applicants communicate with each department and upload their respective documents.
5. Once the required documents are submitted, they are reviewed and approved by the respective departments. When the requirements have been met and the fees have been paid, the applicant receives a permit.
Policy Handbook
The Community Special Event Policy (Attachment A) outlines specific policy information, including restrictions, prohibited items, exempt activities, and park regulations as adopted in the “Athletic Field, Sport Court, and Park Rental Policies.” It also details the event application process, requirements, and applicable rules and regulations. The final page includes an infographic summarizing the special event permitting process and timeline (Attachment B). To further assist applicants, staff has developed an informational sheet (Attachment C) that simplifies and clarifies the permitting process. Both the infographic and informational sheet will be featured on the City’s website and used in marketing efforts to enhance public understanding and accessibility.
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Policy and Action
Communication with Applicant
Staff will maintain ongoing communication with the applicant throughout the permitting process to ensure understanding and compliance with all safety protocols. For large-scale events, staff will be scheduled to monitor activities during the setup, throughout the event, and during post-event cleanup to help ensure a safe and successful experience for all involved.
Current Organizations
Currently, there are thirteen known organizations that rent City facilities for special events, and twentyone documented special events held on or in City-operated parks or facilities. However, it is possible that additional events occur in village parks or on City streets, organized by individuals or groups, who may not be aware of the existing policies. Upon adoption, the City will actively promote the new policies and procedures to the Mountain House community through a variety of marketing and outreach efforts to ensure broad awareness and compliance.
City-run Events operate under the same policies and procedures.
FISCAL IMPACT
There is no fiscal impact on this agenda item.
STRATEGIC PLAN
Adoption of the Community Special Events Rental Handbook will help attain the following goal:
· Implement community-hosted special events to ensure community safety and to reduce stress on City resources.
ACTION FOLLOWING CITY COUNCIL APPROVAL
Staff will make adjustments to the policy as directed by the City Council, market the policy to the Mountain House community, create appropriate processes in GoGov, and implement the policy beginning July 1, 2025.
ATTACHMENTS
A. Draft Community Special Events Rental Handbook
B. Community Special Events Permitting Process and Timeline Infographic C. Community Special Events Permitting Process Informational Sheet D. Resolution Approving Community Special Events Policy Item 8.2
City of Mountain House
Parks and Recreation
251 E. Main Street
Mountain House, CA 95391
P: (209) 831-5623 | mountainhouseca.gov
COMMUNITY SPECIAL EVENT
POLICIES
HANDBOOK
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TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................................................ 2 DEFINITIONS ............................................................................................................................................. 4 INTRODUCTION ........................................................................................................................................ 6 Contact information.............................................................................................................................. 6 GENERAL INFORMATION.......................................................................................................................... 6 Permit Required.................................................................................................................................... 6 APPLICABLE SPECIAL EVENTS.................................................................................................................... 7 Right of Ways........................................................................................................................................ 7 Parks - limited to Central Park Fields A, B, C and D .............................................................................. 7 Restrictions ........................................................................................................................................... 7 Prohibited Items.................................................................................................................................... 7 Exempt Activities................................................................................................................................... 8 NON-PROFIT ORGANIZATION VERIFICATION FORM ................................................................................ 8 SPECIAL EVENT PERMIT APPLICATION PROCESS ...................................................................................... 8 Event Inquiry ......................................................................................................................................... 8 Returning Event .................................................................................................................................... 9 Online Application................................................................................................................................. 9 Meeting with Staff .............................................................................................................................. 10 Required Additional Submissions ....................................................................................................... 10 After Action Report............................................................................................................................. 12 LATE APPLICATIONS................................................................................................................................ 12 RULES AND REGULATIONS...................................................................................................................... 12 Accessibility ......................................................................................................................................... 12 Alcohol Sales ....................................................................................................................................... 12 Concessions and Merchandise Sales................................................................................................... 13 Damages.............................................................................................................................................. 13 Electricity............................................................................................................................................. 13 Emergency Services and First Aid ....................................................................................................... 13 Equipment & Storage.......................................................................................................................... 13 Fencing ................................................................................................................................................ 13 First Amendment Conduct.................................................................................................................. 14 Item 8.2
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Garbage............................................................................................................................................... 14 Inflatables............................................................................................................................................ 14 Pets & Leashed Animals...................................................................................................................... 14 Portable Restrooms ............................................................................................................................ 14 Security ............................................................................................................................................... 15 Sound .................................................................................................................................................. 15 Traffic Plan .......................................................................................................................................... 15 Weather .............................................................................................................................................. 16 FEES & BILLING ....................................................................................................................................... 16 Application Fee ................................................................................................................................... 16 Deposit................................................................................................................................................ 16 Discounts and Surcharges................................................................................................................... 16 Payments............................................................................................................................................. 16 Permit Changes................................................................................................................................... 16 Refund Policy ...................................................................................................................................... 17 Rental Fees.......................................................................................................................................... 17 Rental Time ......................................................................................................................................... 18 CANCELLATIONS ..................................................................................................................................... 18 Permit Cancellation............................................................................................................................. 18 INSURANCE ............................................................................................................................................. 18 Certificates of Liability......................................................................................................................... 19 Additional Information........................................................................................................................ 19 Special Event Producer Insurance....................................................................................................... 19 STANDARDS FOR ISSUANCE OR DENIAL ................................................................................................. 20 Appeals................................................................................................................................................ 21 RULES OF CONDUCT ............................................................................................................................... 21 Cooperation with City Staff and Other Field Users............................................................................. 21 Law Enforcement ................................................................................................................................ 21 FOR MORE INFORMATION ..................................................................................................................... 22 Item 8.2
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DEFINITIONS
Applicant shall mean any person or organization seeking a special event permit from the city to conduct or sponsor a special event as defined herein.
Authorized Agent: A person listed on City of Mountain House’s (“City”) rental account who is allowed to book park for their affiliated organization or request changes to organization’s Permit(s). Organizations are allowed for up to three (3) Authorized Agents.
Commercial Users: Commercial users and uses include companies or individuals whose events have an admission fee or include the sales of goods or services; groups that charge admission and/or participation fees and/or have as a purpose, the generation of income for the host group or individual(s); any activity conducted in or on a City facility where monies are collected for the specific purpose to financially benefit an individual, business, or organization. Sanctioned Mountain House nonprofit organizations excluded from the definition of Commercial Users.
Encroachment Permit: Permit required for all proposed activities that encroach upon the right-of-way within, under or over the City’s rights-of-way including placement of temporary or fixed fencing, storage containers, large tents, dumpsters and portable restrooms.
Non-Profit Organization: An organization with current 501(c) (3) or 501(c)(4) IRS status. Groups applying under the Non‐Profit Organization classification must have an approved “Non-Profit Organization Verification Form” on file with the required documents. Non-Profit Organizations must have at least 75% of their participants residing within City limits and/or zip code (95391).
Non-Resident: Individuals not residing within City limits and/or zip code (95391) or non-profits whose principal address is not listed in Mountain House even if “Mountain House” is listed in the organization’s name.
Resident: Any individual or business residing within Mountain House City limits and/or zip code (95391).
Permittee shall mean any person or organization to whom the city has issued a special event permit.
Professional event organizer, Producer: shall mean persons with a history of successfully organizing special events on behalf of an applicant or organization. Organizer is additionally insured.
Private Event: shall mean an event that is not open to the public and may include an invitation list or entrance by the sale of tickets. Entrance to a Private Event must be through an identified entrance only and include a fencing plan.
Public Event: shall mean an event that is open to the public and does not include an invitation list or the sale of tickets. The event may include a fencing plan for security purposes.
Right-of-Way Event: means any parade, run, march, demonstration, assembly, ceremony, show, review, exhibition, pageant, motorcade, athletic event or procession of any kind, or any similar display, which is to assemble or travel in unison on, upon, or along any portion of any public street, sidewalk, alley or other public way and which: (1) does not comply with the normal and usual traffic regulations or controls, or (2) is likely to impede, obstruct, impair or interfere with the free use of such public street, sidewalk, alley, or other public way.
Special event: shall mean any activity on or in city-operated facilities and parks that, due to the anticipated amount of attendees or the nature of the event, is not compatible with the generally intended use of the facility of park for which it is proposed and is characterized by any of the following:
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· Requires city services to ensure compliance with state or local laws; for example, temporary ABC licenses, or temporary structure permits;
· Involves use of city owned or managed property such as public streets, sidewalks, parking lots, plazas or other city owned or managed open spaces;
· Involves closure, or partial closure, of any public right-of-way, or requires traffic control procedures necessitating the involvement of police/sheriff or street maintenance personnel; · Impairs emergency vehicle access or requires the attendance of emergency personnel at the event; or
· Results in impacts to adjacent public or private property because of, for example, the use of live or amplified entertainment or the anticipated impacts on parking. Uses that are already permitted under the zoning ordinance, such as nightclubs, banquet facilities and assembly halls, are not included in the definition of special event, unless the impact of an event is greater than the impact anticipated under the permitted zoning.
Class I special event permit: shall mean a permit authorizing the permittee to conduct a special event for no more than one day in duration, no alcohol sold or consumed, less than 6 hours in duration including set-up and take-down, anticipates attendance more than 100 but less than 500 people, in a right of way or public park.
Class II special event permit: shall mean a permit authorizing the permittee to conduct a special event that lasts no more than two consecutive days, may include the sale or consumption of alcohol, anticipates attendance of 500-1,000 people at one time, and/or the use of public right-of-way (i.e. parade, running event) no matter the attendance.
Class III special event permit: shall mean a permit authorizing the permittee to conduct a special event for no more than three consecutive days, may include the sale or consumption of alcohol, anticipates attendance over 1,000 people at one time, not including a parade or running event.
Tournament: A series of competitions between two or more teams, who compete for an overall prize or title. Typically, all day/weekend competitions.
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INTRODUCTION
Thank you for considering the City of Mountain House (“City”) for your next Community Special Event.
The City recognizes the importance of providing safe, well-maintained, and aesthetically appealing facilities to all users. The policy provided herein reflects this philosophy, as well as the City's desire to provide an outstanding quality of life through park amenities and facilities.
These policies do not pertain to the use of parks for the purposes of hosting events for less than 150 people or for on-going sports programs.
For more information about the Athletic Field, Sport Court & Park Rental Policies, please visit our website at www.mountainhouseca.gov.
CONTACT INFORMATION
Community Special Events
City of Mountain House Parks and Recreation
251 E. Main Street
Mountain House, CA 95391
Main Phone: (209) 831-2300
Department Phone: (209) 831-5623
Rank Security Phone: (209) 526-2025
Office Hours: Monday – Friday 8:00 a.m. – 5:00 p.m.
Email: [email protected]
City Website: https://www.mountainhouseca.gov/
Weather/Field Conditions: Field Conditions | City of Mountain House website updated by 3:00 p.m. with changes during inclement weather).
Please allow 2-3 business days for staff to respond to emails and voicemail inquiries.
GENERAL INFORMATION
The Community Special Events Policy provides a process to manage the fair use of public spaces in Mountain House, ensuring safety, preserving public property, regulating traffic, and supporting lawful and expressive activities.
The Community Special Event Rental Policy’s authority comes from the City of Mountain House Code, Title 4, Division 1.
PERMIT REQUIRED
No person shall conduct, operate, maintain, or organize any special event regulated by this policy and no person shall allow the use of their premises for such a special event without first obtaining a Community Special Event Permit and paying the required fees.
Permittees shall carry the special event permit during the special event and shall show it, upon demand, to any City employee.
The City Manager may require, as a condition of the special event permit, that special events may be monitored by City staff.
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APPLICABLE SPECIAL EVENTS
The following types of events are classified as “Community Special Events” under this policy:
RIGHT OF WAYS
· Walking and driving parades, walks, runs, athletic events, bicycle and vehicle races not exempted under this section.
· Parades are limited to approved routes.
· Organized/sponsored vehicle shows in public parking lots or streets. · Sales events outside the normal sales area of a business, such as sidewalk and parking lot sales and other special promotions.
· Street fair or craft show on a residential or commercial right-of-way which is likely to obstruct or delay or interfere with normal flow of pedestrian or vehicular traffic. · Demonstration/rally/protest
· Film shoots
· Block parties, block closures, off of private property · Swap meets
PARKS - LIMITED TO CENTRAL PARK FIELDS A, B, C AND D
· Outdoor concerts and other entertainment, public or semi-public dance, recreation, or sporting events
· Fairs and festivals
· Outdoor weddings
· Picnics with attendance of one hundred (100) or more persons in areas not designated for picnics
· Assemblies, conferences, or meetings in a designated reserved area outdoors, with attendance of one hundred (100) or more persons
· Organized sporting events such as tournaments
· Public or private art shows or installation
· Other events with potential attendance of one hundred (100) or more persons, as determined by the Recreation Manager, are not exempted within this section
RESTRICTIONS
The City will not accept applications for Community Special Events which; · Require the City’s written or spoken endorsement of commercial products, service, companies, or individuals;
· Limit the City’s ability to access events, programs, facilities, or services; · Personally benefit any individual City employee or group of employees; · Imply City association with gambling, tobacco, illegal drugs, firearms, or pornography; · Imply City endorsement of a particular political or religious viewpoint; · Imply City tolerance of discrimination based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, martial status, sex, age, or sexual orientation.
· Are held in a village or pocket parks.
PROHIBITED ITEMS
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The following items are prohibited as part of a Community Special Event in Mountain House including; · Carnival rides
· Live animals, petting zoos, pony rides
· Fireworks, rockets, lasers, pyrotechnics
· The use of amplified sound, sound systems, or equipment may be allowed in public parks for special community-related events or activities, provided a permit for its use is first obtained from the City Manager or designee.
EXEMPT ACTIVITIES
The following activities are exempt from the provisions of this chapter:
· Normal promotional/sale activities conducted within the approved display area of a business establishment.
· Live entertainment at an established place of business, such as a restaurant or tavern. · Temporary land uses.
· Yard, garage, or other personal property sales in residential districts. · Activities or events held or conducted by or on behalf of the City, a public school, or the State conducted on property owned or leased by such entity or its sponsor. · Events conducted by homeowners’ associations on common area property within the association’s boundaries.
· Funeral processions.
· Parades sponsored by the city or hosted in conjunction with the City, including the Independence Day Parade and Light Up Main Street.
· Any other special event specifically exempted in this Code from the provisions of this chapter.
NON-PROFIT ORGANIZATION VERIFICATION FORM
An organization’s non-profit status must be on file and current to qualify for the sanctioned non-profit priority classification. Organizations must complete the “Non-Profit Verification Form” 30 days prior to first rental date and must meet the following criteria:
The following items must be submitted with the “Non-Profit Verification Form.” · The organization must be “Active” with the California Secretary of State (SOS). · Current IRS tax Exempt Letter, from an organized non‐profit group with current 501(c) (3) or 501(c)(4) IRS status.
· Roster with at least 75% of the organization’s players residing within the City limits (95391). · Organizations whose roster is 75% or more City residents and whose principal address is in City (95391) will receive priority over organizations with principal address outside of City (95391).
SPECIAL EVENT PERMIT APPLICATION PROCESS
The following steps are required to obtain a Community Special Event permit.
EVENT INQUIRY
An applicant hosting its first event must submit an event inquiry at least 120 days prior to the proposed start date of event.
A preliminary analysis of an application for a new special event will be provided to the applicant within 10 working days following the submittal of a completed application for those applications submitted 120 days prior to the proposed special event.
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RETURNING EVENT
An application for a returning special event must be submitted within the specific timeline as specified by the class of special event. The city makes the final determination about which “class” an event falls into and whether or not city services are required.
1. An application for a Class I or II special event shall be made at least 90 days prior and no more than 364 days prior to the special event start date. The City Manager or designee may authorize an application for a Class I special event permit 30 days prior to the special event if the event does not require closure of a public right-of-way, will not require the diversion of regularly assigned public safety personnel, and does not negatively impact emergency access, parking or traffic in the surrounding area.
2. An application for a Class III special event permit shall be made at least 120 days prior and no more 364 days prior to the special event start date.
A preliminary analysis of an application for a Community Special Event permit will be provided to the applicant within 10 business days following the submittal of a completed application for those applications submitted 90 days prior to the special event.
ONLINE APPLICATION
Applications for a Community Special Event Permit must be submitted online or in writing using a form approved and provided by the City. To allow sufficient time for coordination and proper regulation, applicants must provide all applicable details, including but not limited to:
1. An application fee and deposit, if any, as prescribed by resolution adopted by the City Council;
2. The name, address and telephone number of the applicant(s). If the special event is conducted for, on behalf of, or by an organization(s), the name, address, telephone number of the authorized head of such organization and the names and addresses of the executive officers of such organization;
3. The location of the special event that will be conducted by, for or on behalf of an applicant(s);
4. The date(s) of the event, including assembly and disassembly involving the use of public property;
5. The estimated times that the special event will start and terminate, including assembly and disassembly involving the use of public property;
6. A description of the special event, including its purpose and, as far as is reasonably practicable, the number of people expected to attend. These requirements are intended to allow the city to anticipate and provide for additional city services, if necessary, to protect the safety of participants and bystanders;
7. Applicants must state if the event is a private event for a select number of people (i.e. organization, club) or from sale of tickets, or if the event is open to the public without the sale of tickets.
a) If the event is not open to the general public, applicant must submit a “fencing plan” for approval.
b) Fencing may not be staked into the ground or attached to vegetation. “Fencing” may include free-standing barriers.
c) If the event is a ticketed event, applicants must disclose the admission fee and the number of tickets to be sold.
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8. For special events occurring in the public right-of-way; a) The time at which the event will begin to assemble at any such assembly area or areas, and the estimated time at which the parade will disassemble; b) The starting and ending time of the event;
c) A written description of the route to be traveled, along with a map of the route, including the starting point and the termination point;
d) The location at which the event will assemble and the location at which it will disassemble; and, if such area(s) involve the use of private property, evidence of written permission of the private property owner and/or lessee for such use;
e) The estimated number of people who will participate in the event; f) A statement as to whether the event will occupy all or only a portion of the width of any street, sidewalk, alley, or other public way proposed to be traveled; g) Depending on the size of the event, road and traffic conditions, the applicant may be required to pay for traffic contract services.
i) Traffic contract services are provided by the San Joaquin County Sheriff’s Department. ii) Traffic contract service fees may be imposed based on the staffing level, number of staff, number of days, miles per round trip, number of trips and number of vehicles.
9. A site map showing the tents, structures, stages, musical instruments, sound units, and any other equipment, including equipment that produces sound or noise during the special event and whether amplified sound is proposed to be used.
10. The number and kind of food and retail vendors.
11. The number and kind of vendors who will need vehicle access onto park grounds.
MEETING WITH STAFF
Applicants must meet with designated staff no less than 60 days prior to the special event start date for a Class I or II events; no less than 90 days prior for Class III events.
REQUIRED ADDITIONAL SUBMISSIONS
The applicant will be required to submit the following at least 30 days prior to the proposed start date, based upon their application.
1. Certificate of insurance and additional endorsements.
2. In the event the applicant seeks to use amplified sound, sound systems, or equipment, the applicant must obtain an Amplified Sound Permit. Permits restrict the following:
a) Location and directional position of equipment;
b) Time of day and period of time amplification will be used; c) Sound levels may not exceed 85 decibels.
2. In the event the applicant seeks to sell food, sell or serve alcohol, or install a temporary structure, the applicant must obtain a temporary event (food) permit, a temporary liquor license, or a temporary structure permit that includes:
a) A copy of the event’s Temporary Event permit from the San Joaquin County Public Health Department;
i) Fire Department personnel will inspect approved food vendor booths using an openflame or cooking apparatus at the event. b) ABC License issued by the California Department of Alcoholic Beverage Control; Item 8.2
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i) An alcohol management plan if planning to serve and/or sell alcohol including at least 2 security guards for the first 200 guests, and a ratio of 1:100 thereafter. c) Copy of the Encroachment Permit(s) issued by the City of Mountain House. i) A site map identifying the location of all structures and activities planned for the special event including tents, portable toilets, and dumpsters. If outdoor cooking is proposed, the location, type of appliance and type of fuel, shall also be identified;
3. Copies of the contracts with the portable sanitation company, garbage and recycling services, and other equipment and services proposed for participants, if applicable;
4. A description of arrangements that have been made for first aid, or emergency medical services, or both, if applicable;
5. A copy of a contract with a vetted security company, including the name and telephone number of the lead contact person for the security contractor along with their licensees and insurance;
6. In the event that the applicant needs vehicle access, the applicant must obtain a Vehicle Access Permit. Permits restrict the following:
a) Vehicles may only access park grounds via an approved route provided by the City; and b) City security must direct vehicles onto and off park grounds at all times; and c) Vehicles may only have access from when permit time begins until no later than 1.5 hours prior to event start time and when City’s security has determined when it is safe to allow vehicles back onto grass at the conclusion of the event. d) All vehicle drivers must have a valid driver’s license and the vehicle must be insured.
Permittee may be asked to provide them upon request.
7. A parking plan that is designed to minimize the negative impacts of the event parking on adjacent properties. Negative impacts include, but are not limited to, illegal parking, increased traffic congestion, and event parking that precludes parking for neighboring land uses. If the city finds that significant negative impacts are likely to occur due to the location, size and nature of the event and the availability of parking, an adequate parking plan may be required to include, but not be limited to, the following:
a) Proof that adjacent property owners were notified of event; b) Proof that the adjacent property owners whose property is proposed for event parking have granted permission for event attendees to park on their property; c) Adequate parking attendants;
d) Adequate disabled parking;
e) Adequate publicity and signage to direct event attendees to available parking; f) Other efforts to provide shuttle services to and from the event site, and/or to provide information on alternative transportation such as carpooling, BART, and AC Transit.
Any other information the City Manager may reasonably require, in accordance with this chapter, to properly evaluate and regulate the proposed special event.
Failure to provide all necessary information, as deemed essential by the Recreation Manager and Public Safety, and Code Enforcement, at least 30 business days prior to the event's start date may jeopardize the event. In such cases, the event may be subject to cancellation.
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AFTER ACTION REPORT
Applicant must meet with city staff no less than 10 business days after event to review the “After Action Report” to determine if any violations occurred. Not meeting with staff may result in the withholding of deposit.
LATE APPLICATIONS
Any application received after the deadlines established is a late application. Late applications may incur additional application fees. The City Manager or designee shall not accept late applications unless the Manager finds that:
· The proposed special event is in response to an occurrence whose timing did not reasonably allow the applicant to file a timely application; and
· The imposition of the time limitations would place an unreasonable restriction on the free speech rights of the applicant.
· Other unforeseen circumstances may have prevented the applicant from applying within the established timeline.
· When the City Manager or designee finds one or more of the above conditions to exist, the City Manager or designee may consider acceptance of the application and process it in accordance with this chapter unless it does not meet the criteria set forth in the Regulations or there is insufficient time for the city to make the necessary preparations for traffic control or other public safety matters prior to the proposed date and time of the special event.
RULES AND REGULATIONS
A special event permit will include the information provided in the permit application. The permit may also include reasonable conditions regarding the time, location, and manner of the event to ensure it does not create traffic or safety risks or interfere with emergency services such as fire or police protection.
All permit conditions must comply with the applicable provisions of this chapter. Any modifications required for approval of the event will be limited to those necessary to bring the event into compliance with these regulations.
ACCESSIBILITY
Permittees shall ensure that accessibility for people with disabilities is not impaired by the special event if the special event occurs on public property.
ALCOHOL SALES
If alcoholic beverages are to be sold at the event, obtain the appropriate license from the State Department of Alcoholic Beverage Control, follow responsible beverage service practices and provide adequate security (at least 2 security guards for the first 200 guests, and a ratio of 1:100 thereafter) to maintain order, as determined by the chief of police or designee. Permittee must also obtain an Alcohol Permit from the City.
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CONCESSIONS AND MERCHANDISE SALES
Permittee providing goods or services must secure all the applicable licenses and Permits. These Permits may include:
· Sellers Permit from the State of California Board of Equalization. Phone: 1(800) 400-7115 · Temporary Food Facility Operators Permit from the San Joaquin County Environmental Health Department. Phone: (209) 468-3420
It is the sole responsibility of the park user to obtain all necessary licenses and permits for concessions.
They are also responsible for the payment of all appropriate sales taxes and/or fees associated with the sale of goods and services. All sales of goods and services shall be compliant with state and local law. (MH-4-1200.g)
No additional selling of any kind of food or beverages during a rental or event is permitted without prior written consent of the City. (MH-4-1200 (g)).
DAMAGES
The Permittee agrees to reimburse the City for all costs incurred by damages including, but not limited to the facility, furnishings, fixtures, field turf, additional cleaning required outside of the normal scope for said facility, which occurred in connection with the permitted activity and caused by Permittee, sponsoring organization and/or attendees.
Reimbursement for such expenses may be deducted from the deposit. Charges not covered by the deposit will be charged to the Permittee.
ELECTRICITY
Electricity is not included in rentals. Permittee must provide their own energy source if needed.
EMERGENCY SERVICES AND FIRST AID
Provide first aid stations and teams within a closed-off area to provide emergency medical aid to participants.
Maintain a 20-foot-wide unobstructed emergency access lane at all times.
EQUIPMENT & STORAGE
No equipment storage is allowed at park sites without prior written approval from the City Manager or their designee. An Encroachment Permit is required prior to storing any of these items at a City facility. If approved, the requesting park user is responsible for paying any costs related to, or arising from, their placement.
FENCING
If a Permittee would like to acquire additional fencing from an outside contractor, a written request and a drawn schematic showing the proposed placement of the fencing must be issued to the City with the Encroachment Permit Application for approval no later than 30 days prior to the event. Failure to notify the City of outside fencing services will result in the cancellation of the permit.
Item 8.2
City of Mountain House
Community Special Events Policies Handbook
14 | Page
FIRST AMENDMENT CONDUCT
Permittee must provide a centrally located area where members of the public may engage in protected First Amendment conduct when the permitted event is open to the public.
Permittees may not limit free distribution of literature at a special event held on public property by members of the public who have no formal or direct relationship with the permittee.
GARBAGE
Permittees must provide garbage and recycling services necessary to the public health and safety. All Permittees are responsible for cleaning up debris and litter from the park, parking lot, street and/or sidewalk areas affected by the special event within four hours after the conclusion of the special event.
If excessive trash is left behind by the Permittee, the City will deduct additional labor costs from the deposit. If labor costs exceed the deposit amount, Permittee shall be charged the remaining cost.
Rentals with over 150 people in attendance must provide a dumpster. Proof of paid container will be required one-week prior to event along with an Encroachment Permit. Include proof of paid container with the Encroachment Permit application.
INFLATABLES
Inflatable structures, tents and climbing walls are allowed with an additional permit at select park locations. Inflatables must be positioned no less than 3 feet from the sidewalk and staked no more than 12 inches into the ground. Adding an inflatable must be indicated on the permit and site map. Additional park rental fees may be required. The inflatable company must provide insurance listing the City of Mountain House as additionally insured. (See Insurance Requirements)
PETS & LEASHED ANIMALS
Animals must be leashed at all times at City parks. Dogs are subject to regulations of MH-1200 (j).
Owners are responsible for picking up after their animals while on/in parks, parkways, trails or other public areas.
PORTABLE RESTROOMS
Permittee may need to rent portable restrooms for events hosting more than 150 people or for more than 2 hours per rental day in order to provide adequate bathroom facilities to ensure the comfort and convenience of all guests.
To place portable restrooms at the parks, Permittee must submit an Encroachment Permit Application at least 30 days prior to the first day of use and include a copy of the portable toilet contract.
Please refer to the park map for location for port-a-pots.
Portable Toilet Requirements
· Portable toilets must be ADA compliant and 50 feet from all drain inlets, including Storm Drain Inlets and Catch Basins.
· Portable toilets must be placed upon level surface and/or secured to prevent tip-over/spill (i.e. weighted bags, anchored, etc.) Units should have access for cleaning (at least regularly each week) and maintenance hoses must be within 25 feet of a roadway. · Portable toilets must not obstruct Public Right-of-Way (i.e. Sidewalks, Streets, Signage). · Secondary containment units (plastic basin) must be underneath all portable toilets to prevent external exposure to the environment from leaks/spills.
Item 8.2
City of Mountain House
Community Special Events Policies Handbook
15 | Page
· Any emergency or environmental hazards resulting from the installation, use, or removal of portable toilets must be reported immediately to the City at (209) 831-2300. · Ensure the containment of sanitation facilities (e.g., portable toilets) to prevent discharges of pollutants to the storm water drainage system or receiving water. · The toilets shall be located away from concentrated flow paths and traffic flow and shall be anchored to prevent tipping over from wind or other factors.
Portable Toilet Requirements
1-2 hours 2-4 hours 4-6 hours 6+ hours
150-224 people 1 ADA, 1 Reg 1 ADA, 1 Reg 1 ADA, 2 Reg 1 ADA, 2 Reg 225-299 people 1 ADA, 1 Reg 1 ADA, 2 Reg 1 ADA, 2 Reg 1 ADA, 3 Reg 300+ people 1 ADA, 2 Reg 1 ADA, 3 Reg 1 ADA, 3 Reg 1 ADA, 3 Reg
SECURITY
Permittee must provide monitors for crowd control and at least 2 and a ratio of 1:100 security, and establish a liaison with the police/sheriff department concerning security. Applicant must submit a copy of a contract with a vetted security company, including the name and telephone number of the lead contact person for the security contractor along with their licensees and insurance.
SOUND
The use of amplified sound, sound systems, or equipment may be allowed in public parks for special community-related events or activities, provided a permit for its use is first obtained from the City Manager or designee.
A site map showing the tents, structures, stages, musical instruments, sound units, and any other equipment, including equipment that produces sound or noise during the special event and whether amplified sound is proposed to be used.
In the event the applicant seeks to use amplified sound, sound systems, or equipment, the applicant must obtain an Amplified Sound Permit. Permits restrict the following:
· Location and directional position of equipment;
· Time of day and period of time amplification will be used; · Sound levels may not exceed 85 decibels.
TRAFFIC PLAN
Permittee shall provide proof of advance notification to the affected residents and businesspersons throughout the surrounding areas of any street closure associated with the special event when applicable.
Permittee shall provide sufficient signs and directional arrows to divert traffic and arrange for public transit detours, subject to the approval of the city engineer or designee.
Item 8.2
City of Mountain House
Community Special Events Policies Handbook
16 | Page
WEATHER
In the case of active rain, all natural turf fields are closed during the time of actual rain; the fields are then reassessed once the rain has ceased. On occasion, on a non-rainy day, staff will determine a field to be closed based on excessive rains during the previous day(s), which have left conditions unsafe for use, even though the rain has stopped.
If the park is closed due to weather, credit for park closures will be applied to any subsequent rentals.
Authorized Agents are responsible for assuring that their organization observe these rules. The Field Conditions webpage will be updated by 3:00 p.m.
FEES & BILLING
Renter is required to pay the non-refundable application fee and deposit at the time of submission. All remaining rental fees are due at least 30 days prior to the start date to receive an approved permit. (MH-4-1300) unless set up on a payment plan. (MH-4-1300)
APPLICATION FEE
A non-refundable Community Special Event application fee is $75.
DEPOSIT
A refundable deposit is due at the time of submission to hold the space until all requirements have been met.
The deposit may be returned within 30 days of the rental, providing there are no violations of the Athletic Field, Court & Park Rental Policy including excessive cleaning required or damage to the area or additional time incurred by the renter. Additional fees may be applied.
DISCOUNTS AND SURCHARGES
The following discounts shall apply to the following groups:
· Group A – Government agencies, Lammersville Unified School District, groups with memorandums of understanding – base rate less 75% of base rate · Group B – Sanctioned non-profits – base rate less 75% of base rate · Group C – Residents – 50% of base rate
· Group D – Non-residents – base rate
PAYMENTS
In-person applications must be paid by check. Checks made out to the “City of Mountain House” are accepted at the Town Hall Office, 251 E. Main Street, Mountain House, M-F 8:00 a.m. to 5:00 p.m.
Personal checks will not be accepted on behalf of a non-profit, for-profit, or commercial organization.
Checks must be issued by the associated organization. All refunds to non-profits, for-profits and commercial organizations will be issued back to the organization.
Credit card transactions may be applied to renter’s account online via GoGov. Payments not received by the due date may result in cancellation and forfeiture of the deposit (as applicable).
PERMIT CHANGES
Changes in hours and setup must be submitted in writing to Reservation Staff at [email protected] no less than 30 days prior to avoid cancellation fees. The first permit change will be permitted at no Item 8.2
City of Mountain House
Community Special Events Policies Handbook
17 | Page
charge. Each additional change will be charged a non-refundable processing fee. All processing fees will be due within 3 days of submission.
Changes to the location and date will be considered a “Cancellation” and will be charged according to the Cancellation Policy.
REFUND POLICY
All approved refunds will be processed within 30 days of the last day of rental or upon a cancellation request and will be submitted back to the organization or individual listed on the permit through the initial form of payment pending damages or additional costs. If the initial transaction was 6 months or more, the organization or individual will receive a check.
Refunds are not given for hours not used.
RENTAL FEES
All fees are due no later than 30 calendar days prior to the first rental date. If the first day of the rental is within 30 calendar days, payment must be paid upon submission.
Fees are reviewed and updated according to the Master Fee Schedule adopted by the City of Mountain House City Council. (See Rental Fees)
The hourly fees are as follows:
Facility Group A
Gov’t, LUSD,
MOUs
Group B
Sanctioned
Non-Profits
Group C
Residents
Group D
NonResidents/
Commercial
Central Park Field D $20 $20 $40 $80
Central Park Field C $10 $10 $20 $40
Central Park Field B $10 $10 $20 $40
Central Park Field A $10 $10 $20 $40
Add-On Fees and Charges
· Application Fee: $75
· Field Deposit: $500 (refundable)
· Processing Fee: $25
· Water Key Deposit: $50 (if applicable; refundable)
· Inflatable Permit: $25
· Amplified Sound Permit: $0
· Alcohol Permit: $50
· Facility Attendant: $28 per hour
· Permit Changes: $25 per occurrence; first change is complimentary Item 8.2
City of Mountain House
Community Special Events Policies Handbook
18 | Page
RENTAL TIME
Rentals that exceed the scheduled hours will be charged twice the hourly rate per hour for any increment of extra time. Events must end at 10:00 p.m. All parks must be completely cleaned and vacated no later than 12:00 a.m.
CANCELLATIONS
Cancellation request must be made in writing by the authorized agent by emailing [email protected]. Refunds will be processed within 30 days of receipt of the written cancellation request. Cancellation refunds are processed as follows:
On occasion, it may be necessary to reschedule, relocate, or cancel a previously approved request. The City will give as much advance notice as possible to the Authorized Agent. If a rental is cancelled by the City or due to weather conditions, the base rental fee will be pro-rated and applied to the organization as a credit. The credit may be refunded at the conclusion of the rental Permit, less any damage fees.
PERMIT CANCELLATION
The City reserves the right to deny an allocation request to accommodate a City-sponsored/cosponsored tournament or special event.
The City may cancel or deny a Permit for the following reasons:
· A request may be denied, or a Permit cancelled on the grounds that the application has previously had a Facility Use Permit revoked by the City. · Failure to abide by City Rules and Regulations, resulting in suspension. · Losing group status and no longer qualifies for priority group status. · Failure to submit required paperwork or insurance by due date. · Failure to submit fees by due date.
· Organizations that do not notify City staff regarding their cancelled days three (3) times may have the remainder of their rental dates revoked. Continued non-use of a rented, Permitted field will be noted and may result in future requests being denied. · Applicants have the right to appeal a Permit denial or cancellation.
INSURANCE
Insurance must provide protection from claims arising from injuries or damage to other people or property. The certificates and endorsements are to be received and approved by the City thirty (30) days before the rental/event(s) commence.
Documents not submitted by their due date may result in a cancellation of the permit.
The following items are required on the insurance certificate (MH-4-1300.b):
90 Days or more prior to rental
date
89-30 days prior to rental date 29 days or less prior to rental date
Full refund of deposit and
rental fees
Application fee is
non-refundable
50% of deposit and
25% of rental fees will be
retained
Application fee is
non-refundable
100% deposit and
50% of rental fees will be
retained
Application fee is
non-refundable
Item 8.2
City of Mountain House
Community Special Events Policies Handbook
19 | Page
CERTIFICATES OF LIABILITY
The insured organization must submit a Certificate of Liability Insurance and an Additional Endorsement (CG 20 01 04 13). Insurance provides protection from claims arising from injuries or damage to other people or property.
Insurance is required for any rental involving members of the public including tournaments (sanctioned or unsanctioned), leagues, and practices (private or public) and is due at least 30 days prior to rental start date. Failure to submit insurance by the due date will result in cancellation.
The following items are required on the insurance certificate:
· Insured’s name or organization must be the same as listed on the rental application and permit. · Minimum of $1,000,000 General Liability Insurance, and $2,000,000 Aggregate Liability coverage.
· Policy must be effective on or before the rental date and must expire on or after rental date. · Description of operations/locations/vehicles must include the statement:
o “City of Mountain house, its City Council and all City of Mountain House officers, agents, employees, volunteers and representatives are additionally insured.” · Certificate Holder: City of Mountain House
251 E. Main Street
Mountain House, CA 95391
The certificates and endorsements are to be on forms provided by the City and are to be received and approved by the City thirty (30) days before the event(s) commence.
Upload the Certificate of Liability and Additional Insured Endorsement to User account in REC1.
ADDITIONAL INFORMATION
It shall be a requirement that any available coverage or policy held by applicant or any insurance proceeds broader than or in excess of the specified minimum Insurance coverage requirements and/or limits shall be available to the Additional Insured (City). Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Handbook; or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named Insured; whichever is greater.
Applicant understands that the City, its Elected and Appointed Boards, Commissions, Officers, Agents, Employees, and Volunteers will be named as Additional Insured to any coverage or policy held by applicant. In addition, the Additional Insured coverage under the applicant’s policy shall be “primary and non-contributory” and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13 (Primary and Noncontributory – Other Insurance Condition). See Example Insurance
The limits of Insurance required may be satisfied by a combination of primary and umbrella or excess Insurance. Any umbrella or excess Insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City (if agreed to in a written contract or agreement) before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
SPECIAL EVENT PRODUCER INSURANCE
The event producer may insure the event provided that both the City and the sponsoring organization are named as additional insureds on the certificate of insurance. Proof of insurance must be submitted Item 8.2
City of Mountain House
Community Special Events Policies Handbook
20 | Page
in accordance with the event application timeline. The producer of the event will be primarily responsible for the event.
STANDARDS FOR ISSUANCE OR DENIAL
The City of Mountain House reserves the right to deny the use of any Mountain House Facility due to any person or group if such use is deemed to be contrary to the best interest of the City, the facility, and/or Mountain House residents. Applicants should thoroughly review the Community Special Event Policies to become familiar with all rental fees, policies, and procedures.
The following lists possible reasons for denial of permit.
1. The City Manager or designee shall issue a permit for a special event unless he or she determines that one or more of the following conditions exist:
a) The application is incomplete for failure to provide the information required; b) The applicant has not tendered the required application fee, deposit, or insurance certificate and endorsement(s), unless such tender has been waived as set forth in this chapter; c) The information contained in the application, including supplemental information provided if any, is found to be false in any material respect, the purpose of the event is contrary to law, and/or the applicant has failed to meet the city requirements for a permit; d) A special event permit has been issued and/or a prior application for a special event has been received for an event to be held at the same time and place; e) The special event will unduly interfere with vehicular ingress to, egress from, or travel on a freeway, state designated highway, or major arterial collector street of the city; f) The special event will unreasonably interfere with fire or police protection, including presenting a substantial traffic or safety hazard;
g) Event sizes or durations will require diversion of so great an amount of city safety services, it would divert an undue number of resources from other city needs, particularly of safety services to other areas of the city;
h) The security arrangements that have been made are inadequate; i) One or more of the applicants or persons whose name is shown on the application was also named on an application for a special event that resulted in a violation of this chapter or similar law in another jurisdiction within the 12 months preceding the current application; j) The special event is deemed to have adverse impacts to a residential area; k) If the special event is proposed to be held on public property, the proposed special event would conflict with a previously scheduled and planned event or activity organized by the city for the same time and place as the proposed special event; however the event may be approved to allow established or recurring events that were previously held successfully in the city or to events that may have significant beneficial economic, public health, safety, or other impacts to the city;
l) The proposed parade will not substantially disrupt vehicular traffic, public transportation, or pedestrian traffic within the city;
m) The proposed parade will not unreasonably interfere with access to police or fire stations, or other public safety facilities;
n) The proposed parade would not present unreasonable danger to the health, safety, or welfare of the applicant, spectators, city employees, or members of the public; Item 8.2
City of Mountain House
Community Special Events Policies Handbook
21 | Page
o) The parade or running event is not proposed for a time and place for which another parade permit has been or will be issued to a prior applicant or for which a parade exempt from this chapter pursuant to the outlined Exempt Activities shall occur; p) There is sufficient on-street and/or off-street parking to accommodate parade participants; q) The proposed area for the assembly or route of the parade will physically accommodate the number of participants expected to participate in the parade; r) The applicant, or person named in the application, or the organization on whose behalf the application is submitted has, on prior occasions, damaged city property and has not paid in full for such damages, or has other outstanding and unpaid debts to the city; s) The applicant is legally incompetent to contract or to sue and be sued; t) The applicant fails or refuses to comply with any permitting requirements or conditions of approval.
2. The applicant shall be notified in writing of the action by the City Manager or designee with respect to the application as early as possible but no less than five (5) business days prior to the date of the proposed special event, unless the application was submitted late, in which case notification shall be given as soon as reasonably possible and by any reasonable means.
3. Notwithstanding any provisions of this chapter, should the City Manager or designee determine that prior special events organized, sponsored or conducted by the applicant or persons whose name is shown on the application have resulted in damages to property, unpaid debts or late payments, complaints from a substantial number of area residents or businesses about the impact of prior events, or unreasonable risks to public safety, the City Manager may require, as a condition of approval, that the applicant engage a professional event organizer to organize the special event.
4. If the permit is denied, or approved with conditions, the written notice shall set forth reasons explaining the denial or the imposition of conditions.
5. If a permit is denied pursuant to the criteria set forth in this chapter because the proposed time or assembly and dispersal sites are unacceptable, the denial shall contain a statement of alternative acceptable times and sites.
APPEALS
An applicant may appeal the denial of an application or permit conditions made pursuant to this chapter to the City Manager within three working days of receiving the notice. The City Manager shall act upon said appeal promptly, but in no event later than the date and time of the proposed special event. If the decision to deny the special event permit was made by the City Manager, that decision shall be final.
RULES OF CONDUCT
COOPERATION WITH CITY STAFF AND OTHER FIELD USERS
All renters must engage appropriately with staff and with one another. Refusal to comply with City staff instructions may result in a directive to vacate the park. These actions will be documented in the renter’s file and may result in disciplinary action. Law enforcement will be called upon should any individuals or groups engage in verbal or physical violence.
LAW ENFORCEMENT
The Permit holder is responsible for any and all conduct by participants while on City property.
Item 8.2
City of Mountain House
Community Special Events Policies Handbook
22 | Page
If a renter refuses to comply with the Community Special Event Policies or follow the request of a City staff member, the Rank Security and/or the San Joaquin County Sheriff’s Department will be notified for assistance. If Rank Security and/or the San Joaquin County Sheriff’s Department are called by staff, renter may lose part or all of their deposit.
FOR MORE INFORMATION
For more information about these policies and procedures for renting city-operated facilities, please visit our website, www.mountainhouseca.gov, email recreation staff at [email protected], or call the Mountain House Parks and Recreation Department at (209) 831-5623.
Item 8.2
Returning Event
Applicant has hosted this event
in Mountain House within the
last two years
First-Time Event
Applicant has not hosted this
event in Mountain House
within the last two years
Applicant is notified of rental fees and charges,
additional permitting requirements, and the due dates
for all requirements. Applicant meets with City staff to review all requirements.
At least 60 days prior to proposed event
Applicant communicates with various City departments
and/or County issuing the additional permitting
requirements; applicant submits all requirements including applicable fees, documents and permits; appliacnt can
track the status of each permit requirement online.
At least 30 days prior to proposed event
Additional permitting requirements and fees and charges are received by their due dates and approved by City staff.
PERMIT ISSUED
30 days prior to proposed event
Application is reviewed by City staff who coordinates with other City Departments and Government Agencies to determine applicable fees, charges, and additional permitting requirements.
90-76 days prior to proposed event
Stage 1A
Submit inquiry 364-120 days
prior to proposed event; City
staff review with applicant to
determine next steps
Applicant submits Special Event Application with
deposit and application fee;
364-90 days prior to proposed event
Class I and II
Special Event Permitting Process and Timeline
Stage 1B
Stage 2
Stage 3
Stage 4
Stage 5
Item 8.2
Returning Event
Applicant has hosted this event
in Mountain House within the
last two years
First-Time Event
Applicant has not hosted this
event in Mountain House
within the last two years
Applicant is notified of rental fees and charges,
additional permitting requirements, and the due dates
for all requirements. Applicant meets with City staff to review all requirements.
At least 90 days prior to proposed event
Applicant communicates with various City departments
and/or County issuing the additional permitting
requirements; applicant submits all requirements including applicable fees, documents and permits; appliacnt can
track the status of each permit requirement online.
At least 30 days prior to proposed event
Additional permitting requirements and fees and charges are received by their due dates and approved by City staff.
PERMIT ISSUED
30 days prior to proposed event
Application is reviewed by City staff who coordinates with other City Departments and Government Agencies to determine applicable fees, charges, and additional permitting requirements.
120-106 days prior to proposed event
Stage 1A
Submit inquiry 364-150 days
prior to proposed event; City
staff review with applicant to
determine next steps
Applicant submits Special Event Application with
deposit and application fee;
364-120 days prior to proposed event
Class III
Special Event Permitting Process and Timeline
Stage 1B
Stage 2
Stage 3
Stage 4
Stage 5
Item 8.2
COMMUNITY SPECIAL EVENT PERMITTING PROCESS
The City of Mountain House Parks and Recreation Department is delighted about assisting its community members plan successful and safe events within the City of Mountain House. Events build community and celebrate Mountain House's diversity and heritage. Depending on the nature of the event, applicants may need to obtain additional permits or approvals to ensure a well-planned, safe event.
The City has developed a Community Special Event Permit Process as outlined below to streamline the permitting process. For policies and definitions of the various types of “Special Events” please refer to the COMMUNITY SPECIAL EVENTS PERMIT policies (coming soon).
Application Process
1. Applicants must submit the Special Event Application online (coming soon) no more than 364 days and at least 90 days before the proposed event start date (Class I and II) and at least 120 days before (Class III) along with the deposit and Special Event Application Fee.
2. Applicants will receive confirmation within 10 business days that the application, deposit, and application fee have been received. Staff will review the application with other City departments for its completeness and determine applicable fees and additional permitting requirements.
NOTE: Incomplete applications will not be processed and will be returned to the applicant. Complete applications will not be accepted until the deposit and application fee have been paid. Any unpaid balances owed to the City must be paid in full before an event application is processed.
3. Upon review, Staff will contact the applicant to schedule a Special Event Process Meeting no less than 60 days prior to the special event start date to discuss the details of the event including but not limited to:
• Additional permitting requirements (i.e. Encroachment, Alcohol, Temporary Food, etc.) • Site plan
• Traffic plan
• Security plan
• Sanitation, garbage, and recycling services agreements • First-aid and medical arrangements
• Insurance documents
• Applicable fees
4. Applicants shall communicate with the respective city/county department(s) issuing the additional permit(s).
Permits and all other requirements are due to Staff no less than 30 days prior to event start date. Applicants may upload and check the status of their permit requirements online (coming soon).
5. Once the applicant has successfully submitted all required documentation and paid applicable rental fees, a permit will be issued. However, failure to provide all necessary documentation and fees, as deemed essential by the Recreation Manager and Public Safety – Code Enforcement, at least 30 business days prior to the event's start date may jeopardize the event. In such cases, the event may be subject to cancellation.
Post Event Requirement
Applicant must meet with Staff no less than 10 business days after event to review the “After Action Report” to determine if any violations occurred. Not meeting with Staff may result in the withholding of deposit.
Assistance
For further assistance, please call the City of Mountain House Parks and Recreation Department at (209) 831-5623 Monday through Friday, 8:00 a.m. to 5:00 p.m. or email [email protected].
Item 8.2
8.2 ATTACHMENT D
RESOLUTION NO. 2025-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN HOUSE
TO ADOPT THE COMMUNITY SPECIAL EVENT RENTAL POLICIES
WHEREAS, the City Council of the City of Mountain House (Council) develops and maintains policies in order to ensure the safe, efficient, fair, and consistent use of City parks and facilities for large special events hosted by external organizations; and
WHEREAS, at its regular meeting on September 11, 2019, the Mountain House Community Services District Board of Directors (Board) was presented with a preliminary Special Events and Facilities Use Policy Manual; and
WHEREAS, the Board recommended revisions to enhance safety oversight and streamline the application process to make the process more inclusive and user-friendly for community groups, anticipating increased demand as the population grows; and WHEREAS, the Council has reviewed the Community Special Events Rental Policy Handbook, including provisions related to safety and the collaborative efforts between the departments of Parks and Recreation, Public Safety, Fire, and Public Works, which collectively address the application process for community groups; and
WHEREAS, the Council now desires to adopt the Community Special Event Rental Policy Handbook, attached to this Resolution as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Mountain House hereby adopts the Community Special Event Rental Policy Handbook attached to this Resolution as Exhibit A. Said Policies shall become effective July 1, 2025.
PASSED AND ADOPTED by the City Council of the City of Mountain House, California at a meeting thereof held on this the 14th day of May 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
______________________________
ANDY SU, MAYOR
City of Mountain House
County of San Joaquin, State of California
ATTEST:
City Clerk of the City of Mountain
House, County of San Joaquin, State of
California
By: ___________________________
Item 8.2
CITY COUNCIL AGENDA ITEM NO. 8.3
Policy and Action Item
TITLE: Approval of Conceptual Design for the Veterans Liberty Garden Project MEETING DATE: May 14, 2025
PREPARED BY: Steven J. Pinkerton, City Manager
Jodi Almassy, Deputy City Manager
RECOMMENDATION
Staff recommends that the City Council approve the conceptual design for the Veterans Liberty Garden Project and authorize staff to advance final design development, refine cost estimates, and expand community engagement to support project funding and implementation.
BACKGROUND
On November 12, 2024, the City Council approved the Veterans Recognition Project to create a public space honoring local veterans. Since then, staff has provided periodic informational updates on project progress. An Ad-Hoc Committee, appointed by Council, has supported efforts related to site selection, community input, and conceptual design development.
DISCUSSION
The proposed Veterans Liberty Garden is located on a 0.5-acre site at the terminus of Grand Avenue, adjacent to the Safeway retail center. The site offers high visibility, accessibility, and long-term integration into the City’s park system.
The conceptual design combines traditional park infrastructure with enhancements that reflect community input and the project’s commemorative purpose. Enhanced key features include:
· Vibrant ornamental landscaping
· Architectural and landscape lighting
· Engraved commemorative paver bricks
· Concrete seats for reflection
· Stone walls featuring plaques honoring each branch of the United States Armed Forces · Military-themed civic art
· Prominent flagpoles displaying the United States and California state flags This conceptual design (Attachment A) reflects input gathered through community engagement and direction from the Ad-Hoc Committee. While not final, it provides a strong foundation for detailed design and project implementation planning.
Item 8.3
CITY COUNCIL AGENDA ITEM NO. 8.3
Policy and Action Item
Staff recommends that the City Council approve the conceptual design for the Veterans Liberty Garden Project and authorize staff to advance final design development, refine cost estimates, and expand community engagement to support project funding and implementation.
Final design is anticipated to be complete before August 2025 pending Council’s approval of the conceptual design.
FISCAL IMPACT
There is no immediate fiscal impact associated with approving the conceptual design. The commemorative enhancements are estimated to add approximately $110,000 to the cost of a standard neighborhood park. These additional costs are expected to be funded through:
· Community fundraising efforts (e.g., engraved brick donations) · Business sponsorships and private donations
· Potential grant funding
A complete project budget will be presented during the final design phase.
STRATEGIC PLAN
This project supports the following goals and objectives:
· Developing public amenities that serve the diverse needs of its residents · Promoting civic pride and community unity
· Honoring and recognizing local veterans and active-duty service members CEQA
This project is exempt from CEQA review as it constitutes a minor improvement to existing public facilities consistent with the City’s adopted park plans.
ACTION FOLLOWING CITY COUNCIL APPROVAL
Following approval of the conceptual design, staff will advance final design development, refine cost estimates, and expand community engagement to support project funding and implementation.
ATTACHMENTS
Attachment A – Conceptual Design Illustrations and Renderings Item 8.3
POLICY AND ACTION ITEM 8.3
ATTACHMENT A
Item 8.3
POLICY AND ACTION ITEM 8.3
ATTACHMENT A
Item 8.3
POLICY AND ACTION ITEM 8.3
ATTACHMENT A
Item 8.3
CITY COUNCIL AGENDA ITEM NO. 8.4
Policy and Action Item
TITLE: Adopt Resolution No. 2025-23 authorizing the issuance of Special Tax Bonds for and on behalf of Improvement Area No. 6 of City Of Mountain House Community Facilities District No. 2024-1 (Public Facilities And Services), approving and directing the execution of a Fiscal Agent Agreement, approving the form of Preliminary Official Statement, approving sale of such bonds, and approving other related documents and actions;
Adopt Resolution No. 2025-24 authorizing the issuance of Special Tax Bonds for and on behalf of Improvement Area No. 7 Of City Of Mountain House Community Facilities District No. 2024-1 (Public Facilities And Services), approving and directing the execution of a Fiscal Agent Agreement, approving the form of Preliminary Official Statement, approving sale of such bonds, and approving other related documents and actions; and
Adopt Resolution No. 2025-25 authorizing the issuance of Special Tax Bonds for and on behalf of Improvement Area No. 8 Of City Of Mountain House Community Facilities District No. 2024-1 (Public Facilities And Services), approving and directing the execution of a Fiscal Agent Agreement, approving the form of Preliminary Official Statement, approving sale of such bonds, and approving other related documents and actions.
MEETING DATE: May 14, 2025
PREPARED BY: Steven J. Pinkerton, City Manager
It is recommended that the City Council adopt three (3) resolutions to:
1. Authorize the issuance of special tax bonds for and on behalf of Improvement Areas No. 6, 7 and 8, respectively, of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services);
2. Approve and direct the execution of three (3) Fiscal Agent Agreements, one for each Improvement Area and three (3) Acquisition Agreements, one for each Improvement Area;
3. Approve the three (3)forms ofthe Preliminary Official Statements, one for each Improvement Area; and
4. Approve the sale of each series of bonds and related Bond Purchase Agreements.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of these resolutions.
RECOMMENDATION
Item 8.4
CITY COUNCIL AGENDA ITEM NO. 8.4
Policy and Action Item
On February 14, 2024, the Board of Directors of the Mountain House Community Services District, then serving as the legislative body for Community Facilities District No. 2024-1 (CFD), adopted a Resolution of Intention to form the CFD under the Mello-Roos Community Facilities Act of 1982, as amended. The resolution designated five Improvement Areas and a Future Annexation Area, into which Improvement Areas No. 6 (IA6), No. 7 (IA7), and No. 8 (IA8), respectively, have been successfully annexed into the CFD, and authorized the levy of special taxes and to incur bonded indebtedness for financing authorized public facilities required for development in the Improvement Areas of the CFD.
The CFD was established to expedite funding and construction of public infrastructure attributable to future neighborhoods, including ensuring timely delivery of parks and other facilities before full neighborhood buildout. It also facilitates the early funding of regional facilities and enables more efficient and cost-effective funding for maintenance compared to existing Landscape Maintenance Districts. In addition,the CFD provides a more secure financing model by establishing a revenue stream secured solely by a designated special tax.
Following a noticed public hearing, on April 10, 2024, the Board adopted a Resolution of Formation, officially establishing the CFD, designating Improvement Areas 1-5, and creating a Future Annexation Area.
The resolution also set a bonded indebtedness limit of $1,066,400,000 for the Future Annexation Area.
Upon incorporation of the City in July 2024, the CFD officially became a community facilities district of the City with the City Council as its legislative body.
The proposed bonds are the first and only series of bonds to be considered for IA6 and, IA7. An additional series is contemplated for IA8 in the future. Bonds are proposed to be issued now in the not-toexceed amounts as set forth below:
Area Authorized Not-To-Exceed Issuance
IA6 $10,000,000
IA7 $7,500,000
IA8 $7,500,000
The actions and issuance of bonds related to these Improvement Areas are similar to actions taken by the Council for Improvement Area No. 1 of the CFD; the City issued bonds for that area in March of this year.
It is important to note that the City does not bear direct liability for the financial risk of the bonds to be issued for any Improvement Area. As outlined in each Fiscal Agent Agreement, bondholders agree that bonds are payable solely from and secured solely by Special Taxes levied on properties within each Improvement Area. Accordingly, bondholder recourse for repayment is limited to the Special Tax revenue generated by those properties. This structure ensures that the financial obligations related to the CFD limit risk to the City’s General Fund.
BACKGROUND
Item 8.4
CITY COUNCIL AGENDA ITEM NO. 8.4
Policy and Action Item
Improvement Area 6
IA6 is being developed by Pulte Homes of Michigan, LLC (Pulte), is comprised of 188 single family residential lots on approximately 40 acres, and is marketed as three residential communities: “Cypress at Avina;” “Laurel at Avina;” and “Sequoia at Avina.” The project is generally located on the South side of Grant Line Road, West of Mountain House Parkway. The 188 lots were within the Future Annexation Area established for the CFD at the time it was formed and were annexed into the CFD in January 2025.
Development Status. As of March 15, 2025, 96 lots were in “finished lot” condition and 90 were partially improved, in addition to two lots with completed model homes and 21 lots with homes under construction. Model homes in IA6 opened on February 15, 2025. As of April 1, 2025, five homes were under contract and three homes had closed. Additional information regarding lot status, building permits issued, and units under construction is follows:
Community No. of
Lots
Building
Permits
Issued
Partially
Completed
Homes
Homes
Under
Contract
Homes
Sold and
Closed
Cypress 31 17 9 5 3
Laurel 74 8 8 0 0
Sequoia 83 4 4 0 0
Total 188 29 21 5 3
Please see Attachment A for a table of detailing Value to Lien Ratios by Development Status, Special Tax Levies and CFD Debt Allocations by Maximum Special Tax for IA6.
Improvement Area 7
IA7 is being developed by Tri Pointe Homes Holdings, Inc. (Tri Pointe) and is comprised of 143 single-family detached four- and five-bedroom homes in a neighborhood to be known as “The Knolls at Mountain House”. Lot sizes average 5,000 square feet. The project is generally located on the South of Grant Line Road and West of Central Parkway. The 143 residential lots were within the Future Annexation Area established for the CFD at the time it was formed and were annexed to the CFD in January 2025.
Development Status. No homes have been sold and closed to individual homeowners to date. As of April 15, 2025, three model homes were nearly complete and expected to open in May 2025. Tri Pointe expects to enter into its first sales contracts in May 2025, close escrow on the first homes to individual homebuyers in September 2025, and reach full build-out and close escrow on its final homes to individual homebuyers by the last quarter of 2027.
Additional information regarding lot status, building permits issued, and units under construction is as follows:
DISCUSSION
Item 8.4
CITY COUNCIL AGENDA ITEM NO. 8.4
Policy and Action Item
Plan
No. of
Lots
Building
Permits
Issued
Completed
Homes
Owned by
Tri Pointe
Homes
Under
Construction(1)
Homes
Under
Contract
Homes
Sold and
Closed
1 32 2 0 0 0 0
2 33 3 0 1 0 0
3 39 2 0 1 0 0
4 39 3 0 1 0 0
Total 143 10 0 3 0 0
Please see Attachment B for a table of detailing Value to Lien Ratios by Development Status, Special Tax Levies and CFD Debt Allocations by Maximum Special Tax for IA7.
Improvement Area 8
IA8 is being developed by Lennar Homes of California, LLC (Lennar) and is comprised of 503 single-family on approximately 104 acres marketed as four residential communities: “Lugano;” “Mezzano;” “Turano;” and “Maggiore.” The project is generally located on the North side of Byron Road at N. Central Parkway.
The 503 lots were within the Future Annexation Area established for the CFD at the time it was formed and were annexed to the CFD in January 2025.
Development Status. As of March 15, 2025, 405 lots were in “finished lot” condition and 98 were partially improved, in addition to 8 lots with completed model homes. Construction of production homes began in October 2024. Model homes in Improvement Area No. 8 opened in March 2025. As of March 15, 2025, 22 homes were under contract and initial home closings were projected for mid-April 2025. Additional information regarding lot status, building permits issued, and units under construction is as follows:
Community
No. of
Lots
Building
Permits
Issued
Partially
Completed
Homes
Homes
Under
Contract
Homes
Sold and
Closed
Lugano 134 29 27 5 0
Maggiore 113 29 27 7 0
Mezzano 126 30 22 1 0
Turano 130 27 22 13 0
Total 503 115 98 26 0
Please see Attachment C for a table of detailing Value to Lien Ratios by Development Status, Special Tax Levies and CFD Debt Allocations by Maximum Special Tax for IA8.
Item 8.4
CITY COUNCIL AGENDA ITEM NO. 8.4
Policy and Action Item
The principal documents being approved are as follows:
Authorizing Resolutions (Attachments D, E, and F)
The Authorizing Resolutions approve the issuance of each of the Series 2025 Bonds to be issued for each Improvement Area and the transaction documents related thereto, including the respective Fiscal Agent Agreements, Bond Purchase Agreements, Preliminary Official Statements, and Acquisition Agreements, along with other necessary documents to facilitate the issuance of bonds and the use of bond proceeds. It also establishes key bond sale parameters, setting a maximum True Interest Cost of
6.50%, a maximum underwriter discount of 1.5% of par, and setting respective maximum bond par amounts per Improvement Area as follows:
Area Authorized Not-To-Exceed Issuance
IA6 $10,000,000
IA7 $7,500,000
IA8 $7,500,000
Fiscal Agent Agreements (Exhibit 1 to each Authorizing Resolution) Each respective Fiscal Agent Agreement defines the terms under which the Series 2025 Bonds for each Improvement Area are issued, payable from Special Taxes within each respective Improvement Area (e.g., IA6, IA7 and IA8) of CFD No. 2024-1. Computershare Trust National Association will serve as Fiscal Agent, while Goodwin Consulting Group will administer special tax levies and collections. Each agreement establishes a reserve fund for each Improvement Area Bond to cover potential Special Tax delinquencies, which will be replenished through CFD tax levies, and also requires the City to initiate foreclosure proceedings if delinquencies exceed 5% of the total levy or if three consecutive payments are missed.
Preliminary Official Statements (Exhibit 2 to each Authorizing Resolution) The Preliminary Official Statement (POS) for each Improvement Area discloses key financial and risk information to potential bond investors. Once final pricing details are confirmed, it will be converted into the final Official Statement. Each POS contains information on the City, Fiscal Agent, CFD, bond terms, and risk factors, along with the appraisal of the respective Improvement Area prepared by Integra Realty Resources.
Bond Purchase Agreements (Exhibit 3 to each Authorizing Resolution) Each Bond Purchase Agreement is the legal document pursuant to which bonds are sold by the City to
FINANCING DOCUMENTS
Item 8.4
CITY COUNCIL AGENDA ITEM NO. 8.4
Policy and Action Item
Piper Sandler as underwriter for further sale and distribution to ultimate purchasers. Each Bond Purchase Agreement contains customary representations and warranties from the City regarding the formation of the CFD and the issuance of the Bonds. Forms of certificates of the Developer are also included.
Acquisition Agreements (Exhibit 4 to each Authorizing Resolution) Each Acquisition Agreement outlines the reimbursement terms between the City and Developer for public infrastructure construction. Each allows for the use of bond proceeds and special tax revenues to fund improvements on a pay-as-you-go basis and provides additional Special Tax funding over 15 years if bond proceeds are insufficient.
In accordance with Government Code Section 5852.1, the following information is hereby disclosed to the City Council prior to the issuance of the Bonds:
IA6: (i) the estimated true interest cost of the Bonds (being the rate necessary to discount the amounts payable on the principal and interest payment dates to the purchase price received for the Bonds) is
5.6105%, (ii) the estimated finance charge of the Bonds (being the sum of all fees and charges paid to third parties) is $519,075.00, (iii) the estimated proceeds of the Bonds expected to be received, net of proceeds for finance charges in (ii) above to paid from the principal amount of the Bonds and any reserves or capitalized interest paid orfunded with Bonds is $7,028,223.41, and (iv) the estimated total payment amount of the Bonds (being the sum of debt service plus finance charges to be paid to final maturity, plus any financing costs not paid from proceeds of the Bonds) is $18,893,287.89. This information is based on good-faith estimates provided by the City’s underwriter, and assumes $8,431,327.45 of proceeds available from the Bonds which may change, depending on bond market conditions closer to the time of pricing, and therefore would result in different estimates.
IA7: (i) the estimated true interest cost of the Bonds (being the rate necessary to discount the amounts payable on the principal and interest payment dates to the purchase price received for the Bonds) is
5.6122%, (ii) the estimated finance charge of the Bonds (being the sum of all fees and charges paid to third parties is $434,025.00, (iii) the estimated proceeds of the Bonds expected to be received, net of proceeds for finance charges in (ii) above to paid from the principal amount of the Bonds and any reserves or capitalized interest paid orfunded with Bonds is $4,749,345.17, and (iv) the estimated total payment amount of the Bonds (being the sum of debt service plus finance charges to be paid to final maturity, plus any financing costs not paid from proceeds of the Bonds) is $12,972,805.89. This information is based on good-faith estimates provided by the City’s underwriter, and assumes $5,788,602.95 of proceeds available from the Bonds which may change, depending on bond market conditions closer to the time of pricing, and therefore would result in different estimates.
IA8: (i) the estimated true interest cost of the Bonds (being the rate necessary to discount the amounts
GOOD FAITH COST ESTIMATES
Item 8.4
CITY COUNCIL AGENDA ITEM NO. 8.4
Policy and Action Item
payable on the principal and interest payment dates to the purchase price received for the Bonds) is
5.5583%, (ii) the estimated finance charge of the Bonds (being the sum of all fees and charges paid to third parties is $443,725.00, (iii) the estimated proceeds of the Bonds expected to be received, net of proceeds for finance charges in (ii) above to paid from the principal amount of the Bonds and any reserves or capitalized interest paid orfunded with Bonds is $4,761,000.00, and (iv) the estimated total payment amount of the Bonds (being the sum of debt service plus finance charges to be paid to final maturity, plus any financing costs not paid from proceeds of the Bonds) is $12,911,812.55. This information is based on good-faith estimates provided by the City’s underwriter, and assumes $5,807,373.30 of proceeds available from the Bonds which may change, depending on bond market conditions closer to the time of pricing, and therefore would result in different estimates.
The Bonds create no financial impact on the General Fund because each of the Bonds to be issued are payable solely from and secured solely by the Special Taxes levied on properties within IA6, IA7 and IA8, respectively.
All costs associated with the formation and administration of the CFD will be borne by the developer and/or property owners benefiting from the CFD.
By approving the proposed actions, the City ensures orderly development, financial stability, and improved community services, all of which align with its long-term strategic vision:
1. Sustainable Growth & Infrastructure – Facilitates timely development of public infrastructure, ensuring essential facilities like parks and roads are in place as new neighborhoods grow.
2. Fiscal Responsibility – Ensures efficient financing mechanisms through special tax bonds, reducing the financial burden on the City’s General Fund while maintaining high-quality public services.
3. Quality of Life – Accelerates the availability of community amenities, enhancing livability for future residents and fostering a well-planned, cohesive community.
4. Economic Development – Supports responsible residential and commercial growth, attracting investment and increasing property values within the City.
Not applicable.
FISCAL IMPACT
STRATEGIC PLAN
CEQA
Item 8.4
CITY COUNCIL AGENDA ITEM NO. 8.4
Policy and Action Item
After City Council approval, staff will complete each Preliminary Official Statement for investor review.
Pre-pricing calls with Piper Sandler will be held as early as May 27, 2025, to review market conditions and interest rates. Once pricing is set on each bond issue, said bonds will be sold and an authorized officer will execute each Bond Purchase Agreement, finalizing interest rates and the delivery schedule related to each Improvement Area. Respective Bond proceeds will then be used per each Fiscal Agent Agreement and Acquisition Agreement to fund public infrastructure improvements.
Attachment A: Table Detailing Value to Lien Ratios by Development Status, Special Tax Levies and CFD Debt Allocations by Maximum Special Tax for IA6
Attachment B: Table Detailing Value to Lien Ratios by Development Status, Special Tax Levies and CFD Debt Allocations by Maximum Special Tax for IA7
Attachment C: Table Detailing Value to Lien Ratios by Development Status, Special Tax Levies and CFD Debt Allocations by Maximum Special Tax for IA8
Attachment D: Authorizing Resolution for IA6 which contains the following documents:
· Exhibit 1 – Fiscal Agent Agreement
· Exhibit 2 – Preliminary Official Statement
· Exhibit 3 – Bond Purchase Agreement
· Exhibit 4 – Acquisition Agreement
Attachment E: Authorizing Resolution for IA7 which contains the following documents:
· Exhibit 1 – Fiscal Agent Agreement
· Exhibit 2 – Preliminary Official Statement
· Exhibit 3 – Bond Purchase Agreement
· Exhibit 4 – Acquisition Agreement
Attachment F: Authorizing Resolution for IA8 which contains the following documents:
· Exhibit 1 – Fiscal Agent Agreement
· Exhibit 2 – Preliminary Official Statement
· Exhibit 3 – Bond Purchase Agreement
· Exhibit 4 – Acquisition Agreement
ACTION FOLLOWING CITY COUNCIL APPROVAL
ATTACHMENTS
Item 8.4
ATTACHMENT A
IMPROVEMENT AREA 6
Value to Lien Ratios by Development Status
Projected Fiscal Year 2025-26 Special Tax Levy
Improvement Area No. 6 Debt Allocated by Projected Special Tax As of March 15, 2025
Appraisal Status/Projected
Ownership (1)
No. of
Planned
Units
Appraised
Value (2)
Projected
FY 2025-26
Maximum
Facilities
Special Tax
Projected
FY 2025-26
Facilities
Special Tax
Levy (3)
Percent of
Projected
Facilities
Special Tax
Levy
2025
Bonds (4)*
Overlapping
Debt (5)
Total
Debt
Average
Appraised
Value-toLien (4)*
AG EHC II (PHM) CA 2, L.P.
Partially Improved Lots
Village 2 59 $19,057,000 $186,678 $168,982 33.8% $3,047,258 $1,743,892 $4,791,150 4.0 : 1 Finished Lots
Village 1 50 $23,250,000 $142,341 $128,848 25.8% $2,323,522 $1,354,505 $3,678,027 6.3 : 1 Subtotal 109 $42,307,000 $329,019 $297,830 59.6% $5,370,780 $3,098,397 $8,469,178 5.0 : 1 Pulte Home Company, LLC
Partially Improved Lots
Village 3 15 $4,845,000 $47,461 $42,962 8.6% $774,727 $430,042 $1,204,769 4.0 : 1 Finished Lots
Village 1 19 $7,885,000 $45,214 $40,928 8.2% $738,048 $435,833 $1,173,880 6.7 : 1 Village 2 22 $10,230,000 $62,630 $56,693 11.3% $1,022,350 $585,060 $1,607,410 6.4 : 1 Village 3 5 $2,400,000 $15,820 $14,321 2.9% $258,242 $148,138 $406,380 5.9 : 1 Lots with Homes Under
Construction
Village 1 10 $4,390,000 $23,797 $23,797 4.8% $429,125 $229,493 $658,618 6.7 : 1 Village 2 2 $978,000 $5,694 $5,694 1.1% $102,674 $59,263 $161,937 6.0 : 1 Village 3 4 $2,016,000 $12,656 $12,656 2.5% $228,229 $118,553 $346,782 5.8 : 1 Completed Homes
Village 1 2 $1,910,000 $4,759 $4,759 1.0% $85,825 $46,359 $132,185 14.4 : 1 Subtotal 79 $34,654,000 $218,030 $201,808 40.4% $3,639,220 $2,052,742 $5,691,961 6.1 : 1 Total 188 $76,961,000 $547,049 $499,638 100.0% $9,010,000 $5,151,139 $14,161,139 5.4 : 1 [Footnotes on following page]
POLICY AND ACTION ITEM 8.4
ATTACHMENT A
Item 8.4
* Preliminary, subject to change. See “Lammersville School District Community Facilities District 2019-1” below. (1) The development status and ownership is based on the Appraisal Report and as of the March 15, 2025 date of value. (2) Appraised values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots. (3) Based on 18 building permits issued prior to March 15, 2025, and assumes no further development. Includes debt service due in 2026 on the 2025 Bonds and estimated administrative expenses in the amount of $35,000.
(4) Includes the $9,010,000 par amount of the 2025 Bonds. Allocated based on the Projected FY 2025-26 Facilities Special Tax Levy.. (5) Includes the overlapping debt liens listed under Direct and Overlapping Tax and Assessment Debt in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2024-25. Also includes overlapping debt of the Lammersville JUSD CFD No. 2019-1. The property in Improvement Area No. 6 was annexed into Lammersville JUSD CFD No. 2019-1 in July 2024, but no special taxes for that CFD have been levied on the property within Improvement Area No. 6 yet. A total of $23,265,000 in special tax bonds is outstanding for that CFD and an estimated 22% or $5,166,765 of that would be allocable to property in Improvement Area No. 6 upon buildout of the units. It is anticipated that the Lammersville JUSD CFD No. 2019-1 will issue additional bonds in the future.
Sources: San Joaquin County Assessor's Office; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc. .
POLICY AND ACTION ITEM 8.4
ATTACHMENT A
Item 8.4
ATTACHMENT B
IMPROVEMENT AREA 7
Value to Lien Ratios by Development Status
Projected Fiscal Year 2025-26 Special Tax Levy
Improvement Area No. 7 Debt Allocated by Projected Special Tax As of March 15, 2025
Value-to-Lien
Ratio Range *
No. of
Units Appraised Value (1)
Projected FY 2025-26 Facilities
Special Tax Levy (2)
Percent of
Projected
Facilities
Special Tax
Levy 2025 Bonds (3)*
Overlapping
Debt (4) Total Debt *
Average Value-to-Lien
Ratios*
Greater than 5:1 115 $39,524,615 $283,328 79.9% $4,932,126 $2,631,337 $7,563,463 5.2 : 1 4:1 to 5:1 28 $9,623,385 $71,397 20.1% $1,242,874 $773,874 $2,016,748 4.8 : 1 Total 143 $49,148,000 $354,725 100.0% $6,175,000 $3,405,210 $9,580,210 5.1 : 1 * Preliminary, subject to change.
(1) Appraised values were allocated to the individual lots based on an average value per lot, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of individual lots.
(2) Based on 10 building permits issued prior to March 15, 2025, and assumes no further development. Includes debt service due in 2026 on the 2025 Bonds and estimated administrative expenses in the amount of $35,000.
(3) Includes the $6,175,000 par amount of the 2025 Bonds. Allocated based on the Projected FY 2025-26 Facilities Special Tax Levy. (4) Includes the overlapping debt liens listed under Direct and Overlapping Tax and Assessment Debt in the overlapping debt report prepared by California Municipal Statistics, Inc.
The overlapping debt report is based on the parcels and assessed values as of FY 2024-25. Also includes overlapping debt of the Lammersville JUSD CFD No. 2019-1, based on the assumption that the property in Improvement Area No. 7 will annex into Lammersville JUSD CFD No. 2019-1 in the future. A total of $23,265,000 in special tax bonds is outstanding for that CFD and an estimated 15% or $3,386,908 of that would be allocable to property in Improvement Area No. 7 upon buildout of the units. It is anticipated that the Lammersville JUSD CFD No. 2019-1 will issue additional bonds in the future. See “Lammersville School District Community Facilities District 2019-1” above.
Sources: Integra Realty Resources, Inc.; Piper Sandler & Co.; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.
POLICY AND ACTION ITEM 8.4
ATTACHMENT B
Item 8.4
ATTACHMENT C
IMPROVEMENT AREA 8
Projected Fiscal Year 2025-26 Special Tax Levy
Improvement Area No. 8 Debt Allocated by Projected Special Tax As of March 15, 2025
Ownership (1) Appraisal Status (1)
No. of
Units
Appraised
Value (2)
Projected
FY 2025-26
Maximum
Facilities
Special Tax
Projected
FY 2025-26
Facilities
Special Tax
Levy (3)
Percent of
Projected
Facilities
Special Tax
Levy
Series 2025
Bonds (4)*
Overlapping
Debt (5)*
Total
Debt
Average
Appraised
Value-toLien
Lennar Homes of California Inc. Completed Homes
Village 1 2 $1,467,000 $2,460 $2,460 0.7% $40,530 $4,170 $44,700 32.8 : 1 Village 2 2 $1,719,000 $3,386 $3,386 1.0% $55,787 $4,886 $60,674 28.3 : 1 Village 3 2 $1,683,000 $3,737 $3,737 1.1% $61,568 $4,784 $66,352 25.4 : 1 Village 4 2 $1,908,000 $4,710 $4,710 1.3% $77,598 $5,423 $83,022 23.0 : 1 Partially Completed
Homes
Village 1 27 $9,045,000 $33,213 $33,213 9.5% $547,154 $25,710 $572,863 15.8 : 1 Village 2 27 $10,035,000 $45,716 $45,716 13.1% $753,130 $28,524 $781,654 12.8 : 1 Village 3 22 $8,343,000 $41,110 $41,110 11.7% $677,246 $23,714 $700,960 11.9 : 1 Village 4 22 $8,514,000 $51,814 $51,814 14.8% $853,581 $24,200 $877,782 9.7 : 1 Finished SFR Lots
Village 1 1 $288,000 $1,230 $284 0.1% $4,673 $819 $5,492 52.4 : 1 Village 2 1 $315,000 $1,693 $390 0.1% $6,432 $895 $7,327 43.0 : 1 Village 3 6 $1,908,000 $11,212 $2,585 0.7% $42,592 $5,423 $48,015 39.7 : 1 Village 4 6 $1,953,000 $14,131 $3,259 0.9% $53,682 $5,551 $59,233 33.0 : 1 Subtotal 120 $47,178,000 $214,414 $192,666 55.0% $3,173,974 $134,099 $3,308,073 14.3 : 1 AG EHC II (LEN) CA 2, L. P. Finished SFR Lots
Village 3 67 $21,321,000 $125,199 $28,870 8.2% $475,608 $60,603 $536,211 39.8 : 1 Village 4 100 $32,499,000 $235,518 $54,310 15.5% $894,701 $92,376 $987,077 32.9 : 1 Subtotal 167 $53,820,000 $360,717 $83,180 23.7% $1,370,309 $152,979 $1,523,288 35.3 : 1 AG EHC II (LEN) CA 4B, L. P. Finished SFR Lots
Village 1 104 $29,826,000 $127,932 $29,501 8.4% $485,993 $84,778 $570,770 52.3 : 1 Village 2 83 $25,857,000 $140,536 $32,407 9.3% $533,864 $73,496 $607,360 42.6 : 1 Village 3 29 $9,225,000 $54,191 $12,496 3.6% $205,860 $26,221 $232,082 39.7 : 1 Subtotal 216 $64,908,000 $322,659 $74,403 21.2% $1,225,717 $184,495 $1,410,212 46.0 : 1 Total 503 $165,906,000 $897,790 $350,250 100.0% $5,770,000 $471,573 $6,241,573 26.6 : 1 (Footnotes on following page.)
POLICY AND ACTION ITEM 8.4
ATTACHMENT C
Item 8.4
* Preliminary, subject to change.
(1) The ownership and development status is based on the Appraisal Report and as of the March 15, 2025 date of value. (2) Appraised values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots.
(3) Based on 106 building permits issued prior to March 15, 2025, and assumes no further development. Includes debt service due in 2026 on the Series 2025 Special Tax Bonds and estimated administrative expenses in the amount of $35,000.
(4) Includes the $5,770,000 par amount of the Series 2025 Special Tax Bonds. Allocated based on the Projected FY 2025-26 Facilities Special Tax Levy. (5) Includes the overlapping debt liens listed under Direct and Overlapping Tax and Assessment Debt in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2024-25.
Sources: Integra Realty Resources, Inc.; Piper Sandler & Co.; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.
POLICY AND ACTION ITEM 8.4
ATTACHMENT C
Item 8.4
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
Resolution No. ____-2025 Page 1 of 4
RESOLUTION NO. 2025-23
A RESOLUTION AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR AND ON BEHALF OF IMPROVEMENT AREA NO. 6 OF CITY OF MOUNTAIN HOUSE COMMUNITY FACILITIES DISTRICT NO. 2024-1 (PUBLIC FACILITIES AND SERVICES),
APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT,
APPROVING THE FORM OF PRELIMINARY OFFICIAL STATEMENT, APPROVING SALE OF
SUCH BONDS, AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS WHEREAS, prior to the incorporation of the City of Mountain House, the Board of Directors of the Mountain House Community Services District, as the predecessor to the City Council of the City, conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to (i) establish the City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “CFD”), (ii) designate within the CFD, five initial improvement areas, and (iii) establish a “City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (Future Annexation Area)” for the CFD (the “Future Annexation Area”) from which additional territory could annex into the CFD via unanimous written approval of the qualified landowner-elector(s); and
WHEREAS, on April 10, 2024, the Board of Directors of the Mountain House Community Services District, as the predecessor to the City Council of the City, as legislative body of the CFD, established the bonded indebtedness limit for the CFD in the principal amount of not to exceed $1,830,700,000 (excluding bonds described in Section 53364.2(e) of the Act); and
WHEREAS, under the Act, the City Council is now authorized to issue bonded indebtedness secured by special taxes levied within the CFD and improvement areas therein for the purpose of providing moneys for the construction and acquisition of improvements, and the payment of certain fees, authorized for the CFD; and
WHEREAS, effective January 6, 2025, the qualified landowner-electors of certain property located within the Future Annexation Area submitted unanimous approval forms to the City to officially establish “Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services)” (“Improvement Area No. 6”), including to establish a bonded indebtedness limit for Improvement Area No. 6 of $17,600,000 (the “Authorization”); and WHEREAS, the City desires to issue the first series of special tax bonds for Improvement Area No. 6 pursuant to the Authorization; and
WHEREAS, there has been submitted to the City Council a Fiscal Agent Agreement, between the City and Computershare Trust Company, N.A., as fiscal agent (the “Fiscal Agent Agreement”), providing for the issuance of a first series of special tax bonds of the City for Improvement Area No. 6, designated as “Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Series 2025” (the “Bonds”), and the City Council, with the aid of City staff, has reviewed the Fiscal Agent Agreement and found it to be in proper order for the purpose intended, and now desires to approve the Fiscal Agent Agreement and the issuance of the Bonds; and Item 8.4
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ATTACHMENT D
Resolution No. ____-2025 Page 2 of 4
WHEREAS, the City proposes to sell the Bonds to Piper Sandler & Co., as underwriter (the “Underwriter”), pursuant to the terms of a Bond Purchase Agreement (the “Bond Purchase Agreement”) by and between the City and the Underwriter, and the Underwriter proposes to offer the Bonds to the investing public by means of a Preliminary Official Statement (the “Preliminary Official Statement”); and WHEREAS, there has been placed on file with the City Clerk a form of Acquisition Agreement (the “Acquisition Agreement”) providing for certain CFD authorized facilities to be acquired by the City from the developer of the land within Improvement Area No. 6, or an affiliate or assignee, and the City Council, with the assistance of staff, has reviewed the Acquisition Agreement and found it to be in proper order, and now desires to approve such agreement; and
WHEREAS, the information required to be obtained and disclosed with respect to the Bonds in accordance with Government Code Section 5852.1 is set forth in the staff report accompanying this Resolution; and
WHEREAS, all conditions, things and acts required to exist and to have been performed precedent to and with respect to the issuance of the Bonds and the levy of the special taxes securing the Bonds, as contemplated by this resolution and the Fiscal Agent Agreement, have happened and exist as required by the laws of the State of California, including the Act, and the actions to be performed in due time for the issuance of the Bonds conform in form and manner to the applicable laws of the State of California, including the Act.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF MOUNTAIN HOUSE:
SECTION 1. Findings. This Council finds and determines that (i) it is prudent in the management and development of land in the City and the CFD to issue the Bonds to provide money for the construction and acquisition of improvements, and the payment of certain fees, authorized for the CFD, and (ii) the Bonds, the CFD and Improvement Area No. 6 of the CFD are substantially in compliance with the City’s Statement of Goals and Policies Regarding the Use of the Mello-Roos Community Facilities Act of 1982, with any deviations hereby approved.
SECTION 2. Law Applicable. For the purposes of these proceedings in and for the CFD and Improvement Area No. 6, the Act shall be the authority for the issuance of the Bonds.
SECTION 3. Bonds Authorized. Pursuant to the Act, this Resolution and the Fiscal Agent Agreement, the Bonds, in an aggregate principal amount not to exceed $10,000,000, are hereby authorized to be issued. The Bonds shall be executed in the form set forth in, and otherwise as provided in, the Fiscal Agent Agreement. The Bonds shall be dated and executed in the forms, be in the principal amounts, denominations, mature, be payable at the place and in the priorities and bear interest at the rates as set forth in and otherwise as provided in the Fiscal Agent Agreement.
The Bonds shall not be issued unless the value of the real property within Improvement Area No. 6 subject to the special tax to pay debt service on the Bonds, based on assessed values and/or an appraisal by an independent appraiser hired by the City for the purpose of determining such value, is at least three Item 8.4
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ATTACHMENT D
Resolution No. ____-2025 Page 3 of 4
times the proposed principal amount of the Bonds proposed to be issued and secured by a special tax levied pursuant to the Act on property within Improvement Area No. 6.
SECTION 4. Fiscal Agent Agreement. The Fiscal Agent Agreement in substantially the form on file with the City Clerk is hereby approved, a copy of which is attached as Exhibit 1 and incorporated by this reference. The City Manager, Finance Director, Administrative Services Director or such other person or persons as any of them may designate (each an “Authorized Officer”) are hereby separately authorized and directed to execute and deliver the Fiscal Agent Agreement, with such additions thereto or changes therein as are approved by the Authorized Officer upon consultation with the City’s bond counsel, and including but not limited to such additions or changes as are necessary or advisable to permit the timely issuance, sale and delivery of the Bonds; provided, however, that no additions or changes shall authorize the issuance of an aggregate principal amount of Bonds which would cause bonds issued for Improvement Area No. 6 to be in excess of the Authorization.
The date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the Fiscal Agent Agreement, as finally approved and executed by an Authorized Officer. The terms and provisions of the Fiscal Agent Agreement, as finally executed, are incorporated herein by reference as if fully set forth herein. The approval of such additions or changes shall be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement by an Authorized Officer.
SECTION 5. Bond Preparation and Delivery; Sale of the Bonds. The Bonds, when executed, shall be delivered to the fiscal agent for authentication. The fiscal agent is hereby requested and directed to authenticate the Bonds by executing the fiscal agent’s certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to the Underwriter in accordance with written instructions executed on behalf of the City by an Authorized Officer, which instructions are hereby authorized, for and in the name and on behalf of the City, to be delivered.
SECTION 6. Covenant to Foreclose. The City hereby covenants, for the benefit of the owners of the Bonds, to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of debt service on the Bonds, said foreclosure action to be commenced and pursued as more completely set forth in the Fiscal Agent Agreement.
SECTION 7. Approval of Preliminary Official Statement. The City Council hereby approves the Preliminary Official Statement in substantially the form presented to the City Council at this meeting, a copy of which is attached as Exhibit 2 and incorporated by this reference. The Authorized Officers are each hereby authorized and directed to execute a final Official Statement (the “Official Statement”), for and in the name and on behalf of the City, in such form, together with any additions thereto or changes therein deemed necessary or advisable by the Authorized Officer executing such document upon consultation with the City’s bond counsel. The City Council hereby authorizes and directs the Underwriter to distribute copies of the Preliminary Official Statement to persons who may be interested in the purchase of the Bonds and to deliver copies of the Official Statement to all actual purchasers of the Bonds.
The City Council hereby authorizes the delivery of the Preliminary Official Statement and the Official Statement. The City Council hereby authorizes and directs an Authorized Officer, on behalf of the City, to Item 8.4
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Resolution No. ____-2025 Page 4 of 4
deem “final,” pursuant to Rule 15c2-12 of the Securities Exchange Act of 1934, the Preliminary Official Statement prior to its distribution to prospective purchasers of the Bonds.
SECTION 8. Approval of Purchase Agreement. The City Council hereby approves the Bond Purchase Agreement, a copy of which is attached as Exhibit 3 and incorporated by this reference; provided, however, that the aggregate principal amount of Bonds shall not exceed $10,000,000 or result in an Underwriter’s discount in excess of 1.50%, or a true interest cost in excess of 6.50%. Subject to the foregoing parameters, an Authorized Officer is hereby authorized and directed to execute the Bond Purchase Agreement in substantially the form on file with the City Clerk, together with such changes and additions thereto deemed advisable by the Authorized Officer executing the same. The City Council hereby finds and determines that the sale of the Bonds at negotiated sale as contemplated by the Bond Purchase Agreement will result in a lower overall cost.
SECTION 9. Approval of Acquisition Agreement. The City Council hereby approves the Acquisition Agreement, a copy of which is attached as Exhibit 4 and incorporated by this reference. An Authorized Officer is hereby authorized and directed to execute the Acquisition Agreement in substantially the form on file with the City Clerk, together with such changes and additions thereto deemed advisable by the Authorized Officer executing the same.
SECTION 10. Actions Authorized. All actions heretofore taken by the officers, employees and agents of the City with respect to the establishment of the CFD and the designation of Improvement Area No. 6 therein, and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the Authorized Officers are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this Resolution, and any certificate, agreement, and other document described in the documents herein approved. All actions to be taken by an Authorized Officer as specified herein, may be taken by the Authorized Officer or any designee, with the same force and effect as if taken by such Authorized Officer.
SECTION 11. Effectiveness. This Resolution shall take effect immediately upon its adoption.
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Resolution No. ____-2025 Page 5 of 4
PASSED AND ADOPTED by the City Council of the City of Mountain House on the _____ day of ___________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Andy Su, Mayor
ATTEST:
Margaret Wimberly, City Clerk
Item 8.4
FISCAL AGENT AGREEMENT
by and between
CITY OF MOUNTAIN HOUSE
and
COMPUTERSHARE TRUST COMPANY, N.A.,
as Fiscal Agent
Dated as of June 1, 2025
Relating to:
$________________
Improvement Area No. 6 of
City of Mountain House
Community Facilities District No. 2024-1
(Public Facilities and Services)
Special Tax Bonds Series 2025
POLICY AND ACTION ITEM 8.4
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EXHIBIT 1
Item 8.4
TABLE OF CONTENTS
ARTICLE I
STATUTORY AUTHORITY AND DEFINITIONS
Section 1.01. Authority for this Agreement............................................................................. 3 Section 1.02. Agreement for Benefit of Bondowners.............................................................. 3 Section 1.03. Definitions........................................................................................................ 3
ARTICLE II
THE BONDS
Section 2.01. Principal Amount; Designation ....................................................................... 12 Section 2.02. Terms of 2025 Bonds..................................................................................... 12 Section 2.03. Redemption ................................................................................................... 13 Section 2.04. Form of Bonds ............................................................................................... 17 Section 2.05. Execution of Bonds ........................................................................................ 17 Section 2.06. Transfer of Bonds .......................................................................................... 17 Section 2.07. Exchange of Bonds........................................................................................ 18 Section 2.08. Bond Register................................................................................................ 18 Section 2.09. Temporary Bonds .......................................................................................... 18 Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen ................................................... 18 Section 2.11. Limited Obligation .......................................................................................... 19 Section 2.12. Book-Entry Only System................................................................................ 19 Section 2.13. No Acceleration.............................................................................................. 20
ARTICLE III
ISSUANCE OF BONDS
Section 3.01. Issuance and Delivery of Bonds..................................................................... 21 Section 3.02. Application of Proceeds of Sale of Bonds and Collection of Special Tax........ 21 Section 3.03. Special Tax Fund........................................................................................... 21 Section 3.04. [Not Used]......................................................... Error! Bookmark not defined.
Section 3.05. Improvement Fund......................................................................................... 22 Section 3.06. Costs of Issuance Fund ................................................................................. 23
ARTICLE IV
SPECIAL TAX REVENUES; BOND FUND AND RESERVE FUND
Section 4.01. Pledge of Special Tax Revenues and Other Amounts.................................... 24 Section 4.02. Bond Fund ..................................................................................................... 24 Section 4.03. Reserve Fund ................................................................................................ 25
ARTICLE V
OTHER COVENANTS OF THE CITY
Section 5.01. Punctual Payment.......................................................................................... 28 Section 5.02. Limited Obligation .......................................................................................... 28 Section 5.03. Extension of Time for Payment ...................................................................... 28 Section 5.04. Against Encumbrances .................................................................................. 28 Section 5.05. Books and Accounts ...................................................................................... 28 Section 5.06. Protection of Security and Rights of Owners .................................................. 28 Section 5.07. Compliance with Law; Completion of Project ................................................. 29 Section 5.08. Private Activity Bond Limitation ...................................................................... 29 Section 5.09. Federal Guarantee Prohibition ....................................................................... 29 Section 5.10. Collection of Special Tax Revenues............................................................... 29 Section 5.11. Further Assurances........................................................................................ 29 POLICY AND ACTION ITEM 8.4
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Section 5.12. No Arbitrage................................................................................................... 30 Section 5.13. Maintenance of Tax-Exemption...................................................................... 30 Section 5.14. Annual State Reports..................................................................................... 30 Section 5.15. Covenant to Foreclose................................................................................... 30 Section 5.16. Continuing Disclosure to Owners ................................................................... 31 Section 5.17. No Additional Bonds ...................................................................................... 31 Section 5.18. Yield of the Bonds.......................................................................................... 31
ARTICLE VI
INVESTMENTS; DISPOSITION OF INVESTMENT PROCEEDS; LIABILITY OF THE CITY Section 6.01. Deposit and Investment of Moneys in Funds.................................................. 32 Section 6.02. Rebate of Excess Investment Earnings to the United States.......................... 33 Section 6.03. Limited Obligation .......................................................................................... 33
ARTICLE VII
THE FISCAL AGENT
Section 7.01. Appointment of Fiscal Agent .......................................................................... 34 Section 7.02. Liability of Fiscal Agent .................................................................................. 34 Section 7.03. Information..................................................................................................... 35 Section 7.04. Notice to Fiscal Agent .................................................................................... 35 Section 7.05. Compensation, Indemnification ...................................................................... 36
ARTICLE VIII
MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Section 8.01. Amendments Permitted.................................................................................. 37 Section 8.02. Owners’ Meetings .......................................................................................... 37 Section 8.03. Procedure for Amendment with Written Consent of Owners........................... 38 Section 8.04. Disqualified Bonds ......................................................................................... 38 Section 8.05. Effect of Supplemental Agreement................................................................. 38 Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments ............... 39 Section 8.07. Amendatory Endorsement of Bonds............................................................... 39 Section 8.08. Opinion of Counsel Regarding Supplemental Agreement .............................. 39
ARTICLE IX
MISCELLANEOUS
Section 9.01. Benefits of Agreement Limited to Parties ....................................................... 40 Section 9.02. Successor is Deemed Included in All References to Predecessor.................. 40 Section 9.03. Discharge of Agreement ................................................................................ 40 Section 9.04. Execution of Documents and Proof of Ownership by Owners ........................ 41 Section 9.05. Waiver of Personal Liability............................................................................ 41 Section 9.06. Notices to and Demands on City and Fiscal Agent......................................... 41 Section 9.07. Partial Invalidity.............................................................................................. 42 Section 9.08. Unclaimed Moneys ........................................................................................ 42 Section 9.09. Applicable Law............................................................................................... 42 Section 9.10. Conflict with Act ............................................................................................. 42 Section 9.11. Conclusive Evidence of Regularity................................................................. 42 Section 9.12. Payment on Business Day ............................................................................. 42 Section 9.13. Counterparts .................................................................................................. 42 Section 9.15. U.S.A. Patriot Act ...................................................................................... 42
EXHIBIT A FORM OF BOND
POLICY AND ACTION ITEM 8.4
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EXHIBIT 1
Item 8.4
FISCAL AGENT AGREEMENT
THIS FISCAL AGENT AGREEMENT (the “Agreement”) is made and entered into and dated as of June 1, 2025, by and between the City of Mountain House, a municipal corporation and general law city, organized and existing under and by virtue of the Constitution and laws of the State of California (the “City”) for and on behalf of its City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “District”), and Computershare Trust Company, N.A., a national banking association duly organized and existing under the laws of the United States of America with a corporate trust office located in St. Paul, Minnesota, as fiscal agent (the “Fiscal Agent”).
W I T N E S S E T H :
WHEREAS, the City Council has conducted proceedings under and pursuant to the MelloRoos Community Facilities Act of 1982, as amended (the “Act”), to (i) establish the District (ii) designate within the District, five initial improvement areas, and (iii) establish a future annexation area for the District known as “City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (Future Annexation Area)” (the “Future Annexation Area”); and
WHEREAS, on April 10, 2024, the Board of Directors of the Mountain House Community Services District, as the predecessor to the City Council of the City, as legislative body of the CFD, established the bonded indebtedness limit for the District in the principal amount of not to exceed $1,830,700,000 (excluding bonds described in Section 53364.2(e) of the Act); and WHEREAS, under the Act, the City Council is authorized to issue bonded indebtedness secured by special taxes levied within the District and improvement areas therein for the purpose of providing moneys for the construction and acquisition of improvements, and the payment of certain fees, authorized for the District; and
WHEREAS, effective January 6, 2025, the qualified landowner-electors of certain property located within the Future Annexation Area, submitted unanimous approval forms to the City to officially annex property into the District as “Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services)” (“Improvement Area No. 6”), and to establish a bonded indebtedness limit for Improvement Area No. 6 of $17,600,000 (the “Authorization”); and
WHEREAS, under the provisions of the Act, on __________, 2025, the City Council of the City adopted its Resolution No. 2025-___ (the “Resolution”), which resolution authorized the issuance of its Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Series 2025 to provide moneys for the construction and acquisition of improvements for the District and provided that said issuance would be in accordance with the Act and this Agreement, and authorized the execution hereof; WHEREAS, it is in the public interest and for the benefit of the City, the District, the persons responsible for the payment of special taxes and the Owners of the Bonds that the City enter into this Agreement to provide for the issuance of the Bonds, the disbursement of proceeds of the Bonds, the disposition of the special taxes securing the Bonds authorized to be issued hereunder and the administration and payment of the Bonds; and POLICY AND ACTION ITEM 8.4
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WHEREAS, the City has determined that all things necessary to cause the Bonds, when authenticated by the City for the District and issued as in the Act, the Resolution and this Agreement provided to be legal, valid and binding and special obligations of the City for the District in accordance with their terms, and all things necessary to cause the creation, authorization, execution and delivery of this Agreement and the creation, authorization, execution and issuance of the Bonds, subject to the terms hereof, have in all respects been duly authorized.
NOW, THEREFORE, in consideration of the covenants and provisions herein set forth and for other valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:
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EXHIBIT 1
Item 8.4
ARTICLE I
AUTHORITY AND DEFINITIONS STATUTORY AUTHORITY AND
DEFINITIONS
Section 1.01. Authority for this Agreement. This Agreement is entered into pursuant to the provisions of the Act and the Resolution.
Section 1.02. Agreement for Benefit of Bondowners. The provisions, covenants and agreements herein set forth to be performed by or on behalf of the City shall be for the equal benefit, protection and security of the Owners. All of the Bonds, without regard to the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided in or permitted by this Agreement. The Fiscal Agent may become the Owner of any of the Bonds in its own or any other capacity with the same rights it would have if it were not Fiscal Agent.
Section 1.03. Definitions. Unless the context otherwise requires, the terms defined in this Section 1.03 shall, for all purposes of this Agreement, of any Supplemental Agreement, and of any certificate, opinion or other document herein mentioned, have the meanings herein specified. All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof. “Acquisition Agreement” means the Acquisition Agreement, dated as of June 1, 2025, by and between the City and Pulte Home Company, LLC, a Michigan limited liability company, and any amendments thereto.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Sections 53311 et seq. of the California Government Code. “Additional Bonds” means any bonds other than the 2025 Bonds issued pursuant to Section 5.17 hereof.
“Administrative Expense Priority” means (i) for Fiscal Year 2025-26, $35,000, and (ii) for each subsequent fiscal year, an amount equal to the preceding fiscal year’s Administrative Expense Priority plus an additional 2% of such amount.
“Administrative Expenses” means any or all of the following: the fees and expenses of the Fiscal Agent (including any fees or expenses of its counsel), the expenses of the City in carrying out its duties hereunder (including, but not limited to, the levying and collection of the Special Taxes, and the foreclosure of the liens of delinquent Special Taxes) including the fees and expenses of its counsel, an allocable share of the salaries of City staff directly related thereto and a proportionate amount of City general administrative overhead related thereto, any amounts paid by the City from its general funds pursuant to Section 6.02, and all other costs and expenses of the City or the Fiscal Agent incurred in connection with the issuance and administration of the Bonds and/or the discharge of their respective duties hereunder (including, but not limited to, the calculation of the levy of the Special Taxes, foreclosures with respect to delinquent taxes, and the calculation of amounts subject to rebate to the United States) and, in the case of the City, in any way related to the administration of the District and Improvement POLICY AND ACTION ITEM 8.4
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Area No. 6. Administrative Expenses shall include any such expenses incurred in prior years but not yet paid, and any advances of funds by the City under Section 6.02 hereof. “Administrative Services Director” means the Administrative Services Director, including any acting or interim Administrative Services Director, of the City, or a person serving in a similar capacity, or a designee of such person.
“Agreement” means this Fiscal Agent Agreement, as it may be amended or supplemented from time to time by any Supplemental Agreement. “Annual Debt Service” means, for each Bond Year, the sum of (i) the interest due on the Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as scheduled, and (ii) the principal amount of the Outstanding Bonds, including any mandatory sinking fund payments, due in such Bond Year.
“Authorization” means a principal amount of Bonds for Improvement Area No. 6 not to exceed $17,600,000 (excluding bonds described in Section 53364.2(e) of the Act). “Authorized Officer” means the City Manager, Finance Director, Administrative Services Director, or any other officer or employee authorized by the City Council of the City or by an Authorized Officer to undertake the action referenced in this Agreement as required to be undertaken by an Authorized Officer.
“Bond Counsel” means (i) Jones Hall, A Professional Law Corporation or (ii) any other attorney or firm of attorneys acceptable to the City and nationally recognized for expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities. “Bond Fund” means the fund by that name established pursuant to Section 4.02(A) hereof.
“Bond Year” means each twelve-month period beginning on September 2 in any year and extending to the next succeeding September 1, both dates inclusive; except that the first Bond Year shall begin on the Closing Date and end on September 1, 2025. “Bonds” means (i) the 2025 Bonds, and (ii) any Additional Bonds at any time Outstanding under this Agreement and any Supplemental Agreement.
“Business Day” means any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in the state in which the Principal Office of the Fiscal Agent is located are authorized or obligated by law or executive order to be closed. “Capitalized Interest Account” means the fund by that name established pursuant to Section 4.02(A) hereof.
“CDIAC” means the California Debt and Investment Advisory Commission of the office of the State Treasurer of the State of California or any successor agency or bureau thereto. “City” means the City of Mountain House, California, as the legislative body of the District, and any successor thereto.
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“Closing Date” means _________, 2025, being the date upon which there is a physical delivery of the Bonds in exchange for the amount representing the purchase price of the Bonds by the Original Purchaser.
“Code” means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the Bonds, together with applicable temporary and final regulations promulgated, and applicable official public guidance published, under the Code. “Continuing Disclosure Certificate” means the Continuing Disclosure Certificate, dated _________, 2025, by and among the City and Kosmont Financial Services, Inc., in its capacity as Dissemination Agent, as originally executed and as it may be amended from time to time in accordance with the terms thereof.
“Costs of Issuance” means items of expense payable or reimbursable directly or indirectly by the City and related to the authorization, sale and issuance of the Bonds, which items of expense shall include, but not be limited to, printing costs, costs of reproducing and binding documents, closing costs, filing and recording fees, initial fees, expenses and charges of the Fiscal Agent including its first annual administration fee, expenses incurred by the City in connection with the issuance of the Bonds, financial advisor fees, Bond (underwriter’s) discount or underwriting fee, legal fees and charges, including bond counsel, charges for execution, transportation and safekeeping of the Bonds and other costs, charges and fees in connection with the foregoing.
“Costs of Issuance Fund” means the fund by that name established pursuant to Section 3.06(A) hereof.
“Debt Service Account” means the account of the Special Tax Fund by that name established by Section 3.03(A) hereof.
“DTC” means the Depository Trust Company, and its successors and assigns. “Debt Service” means the scheduled amount of interest and amortization of principal payable on the Bonds during the period of computation, excluding amounts scheduled during such period which relate to principal which has been retired before the beginning of such period. “Depository” means (a) initially, DTC, and (b) any other Securities Depository acting as Depository pursuant to Section 2.12.
“District” means the City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services), established pursuant to the Resolution of Formation. “Fair Market Value” means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm’s length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of Section 1273 of the Code) and, otherwise, the term “Fair Market Value” means the acquisition price in a bona fide arm’s length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment POLICY AND ACTION ITEM 8.4
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agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security—State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) the investment is the Local Agency Investment Fund of the State of California, but only if at all times during which the investment is held its yield is reasonably expected to be equal to or greater than the yield on a reasonably comparable direct obligation of the United States. “Federal Securities” means any of the following which are non-callable and which at the time of investment are legal investments under the laws of the State of California for funds held by the Fiscal Agent (the Fiscal Agent entitled to rely upon investment direction from the City as a certification that such investment constitutes a legal investment). (i) Direct general obligations of the United States of America (including obligations issued or held in book-entry form on the books of the United States Department of the Treasury) and obligations, the payment of principal of and interest on which are directly or indirectly guaranteed by the United States of America, including, without limitation, such of the foregoing which are commonly referred to as “stripped” obligations and coupons; or
(ii) Any of the following obligations of the following agencies of the United States of America: (i) direct obligations of the Export-Import Bank, (ii) certificates of beneficial ownership issued by the Farmers Home Administration, (iii) participation certificates issued by the General Services Administration, (iv) mortgage-backed bonds or pass-through obligations issued and guaranteed by the Government National Mortgage Association, (v) project notes issued by the United States Department of Housing and Urban Development, and (vi) public housing notes and bonds guaranteed by the United States of America.
“Finance Director” means the Finance Director, including any acting or interim Finance Director, of the City, or the Administrative Services Director or a person serving in a similar capacity, or a designee of such person.
“Fiscal Agent” means the Fiscal Agent appointed by the City and acting as an independent fiscal agent with the duties and powers herein provided, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section 7.01.
“Fiscal Year” means the twelve-month period extending from July 1 in a calendar year to June 30 of the succeeding year, both dates inclusive.
“Improvement Area No. 6” means Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services). “Improvement Fund” means the fund by that name established pursuant to Section 3.05(A) hereof.
“Interest Payment Dates” means March 1 and September 1 of each year, commencing September 1, 2025.
“Maximum Annual Debt Service” means the largest Annual Debt Service for any Bond Year after the calculation is made through the final maturity date of any Outstanding Bonds.
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“Officer’s Certificate” means a written certificate of the City signed by an Authorized Officer of the City.
“Ordinance” means any ordinance of the City levying the Special Taxes. “Original Purchaser” means Piper Sandler & Co., as the first purchaser of the Bonds from the City.
“Outstanding,” when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 8.04) all Bonds except (i) Bonds theretofore canceled by the Fiscal Agent or surrendered to the Fiscal Agent for cancellation; (ii) Bonds paid or deemed to have been paid within the meaning of Section 9.03; and (iii) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the City pursuant to the Agreement or any Supplemental Agreement. “Owner” or “Bondowner” means any person who shall be the registered owner of any Outstanding Bond.
“Participating Underwriter” shall have the meaning ascribed thereto in the Continuing Disclosure Certificate.
“Permitted Investments” means any of the following, to the extent that they are lawful investments for City funds at the time of investment, and are acquired at Fair Market Value (the Fiscal Agent entitled to rely upon investment direction from the City as a certification that such investment constitutes a legal investment):
(i) Federal Securities;
(ii) any of following obligations of federal agencies not guaranteed by the United States of America: (a) debentures issued by the Federal Housing Administration; (b) participation certificates or senior debt obligations of the Federal Home Loan Mortgage Corporation or Farm Credit Banks (consisting of Federal Land Banks, Federal Intermediate Credit Banks or Banks for Cooperatives); (c) bonds or debentures of the Federal Home Loan Bank Board established under the Federal Home Loan Bank Act, bonds of any federal home loan bank established under said act and stocks, bonds, debentures, participations and other obligations of or issued by the Federal National Mortgage Association, the Student Loan Marketing Association, the Government National Mortgage Association and the Federal Home Loan Mortgage Corporation; and bonds, notes or other obligations issued or assumed by the International Bank for Reconstruction and Development;
(iii) interest-bearing demand or time deposits (including certificates of deposit) in federal or State of California chartered banks (including the Fiscal Agent), provided that (a) in the case of a savings and loan association, such demand or time deposits shall be fully insured by the Federal Deposit Insurance Corporation, or the unsecured obligations of such savings and loan association shall be rated in one of the top two rating categories by a nationally recognized rating service, and (b) in the case of a bank, such demand or time deposits shall be fully insured by the Federal Deposit Insurance Corporation, or the unsecured obligations of such bank (or the unsecured obligations of the parent bank holding company of which such bank is the lead bank) POLICY AND ACTION ITEM 8.4
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shall be rated in one of the top two rating categories by a nationally recognized rating service;
(iv) repurchase agreements with a registered broker/dealer subject to the Securities Investors Protection Corporation Liquidation in the event of insolvency, or any commercial bank provided that: (a) the unsecured obligations of such bank shall be rated in one of the top two rating categories by a nationally recognized rating service, or such bank shall be the lead bank of a banking holding company whose unsecured obligations are rated in one of the top two rating categories by a nationally recognized rating service; (b) the most recent reported combined capital, surplus an undivided profits of such bank shall be not less than $100 million; (c) the repurchase obligation under any such repurchase obligation shall be required to be performed in not more than 30 days; (d) the entity holding such securities as described in clause (c) shall have a pledged first security interest therein for the benefit of the Fiscal Agent under the California Commercial Code or pursuant to the book-entry procedures described by 31 C.F.R. 306.1 et seq. or 31 C.F.R. 350.0 et seq. and are rated in one of the top two rating categories by a nationally recognized rating service;
(v) bankers acceptances endorsed and guaranteed by banks described in clause (iv) above;
(vi) obligations, the interest on which is exempt from federal income taxation under Section 103 of the Code and which are rated in the one of the top two rating categories by a nationally recognized rating service;
(vii) money market funds which invest solely in Federal Securities or in obligations described in the preceding clause (ii) of this definition, or money market funds which are rated in the highest rating category by Standard & Poor’s Ratings Services or Moody’s Investor Service, including funds which are managed or maintained by the Fiscal Agent;
(viii) units of a taxable government money market portfolio comprised solely of obligations listed in (i) and (iv) above;
(ix) any investment which is a legal investment for proceeds of the Bonds at the time of the execution of such agreement, and which investment is made pursuant to an agreement between the City or the Fiscal Agent or any successor Fiscal Agent and a financial institution or governmental body whose long term debt obligations are rated in one of the top two rating categories by a nationally recognized rating service; (x) commercial paper of “prime” quality of the highest ranking or of the highest letter and numerical rating as provided for by Moody’s Investors Service, or Standard and Poor’s Corporation, of issuing corporations that are organized and operating within the United States and having total assets in excess of $500,000,000, and having a rating of at least “AA” (without regard to qualifier) for the issuer’s debentures, other than commercial paper, as provided for by Moody’s Investors Service or Standard and Poor’s Corporation, and provided that purchases of eligible commercial paper may not exceed 180 days maturity nor represent more than 10 percent of the outstanding paper of an issuing corporation;
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(xi) any general obligation of a bank or insurance company whose long term debt obligations are rated in one of the two highest rating categories of a national rating service;
(xii) shares in a common law trust established pursuant to Title 1, Division 7, Charter 5 of the Government Code of the State which invests exclusively in investments permitted by Section 53635 of Title 5, Division 2, Chapter 4 of the Government Code of the State, as it may be amended;
(xiii) shares in the California Asset Management Program; (xiv) the Local Agency Investment Fund established pursuant to Section 16429.1 of the Government Code of the State of California, provided, however, that the Fiscal Agent will be permitted to make investments and withdrawals in its own name and the Fiscal Agent may restrict investments in the such fund if necessary to keep moneys available for the purposes of this Fiscal Agent Agreement; or
(xv) any other lawful investment for City funds.
“Prepayment Account” means the account of the Bond Fund by that name established by Section 4.02(A) hereof.
“Principal Office” means the corporate trust office of the Fiscal Agent set forth in Section 9.06, or such other or additional offices as may be designated by the Fiscal Agent. “Project” means the acquisitions and improvements described in the Resolution of Formation and pursuant to the Acquisition Agreement and any joint community facilities agreements and actual costs related thereto, including costs incurred for formation of the District. “Qualified Reserve Fund Credit Instrument” means an irrevocable standby or direct-pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Fiscal Agent pursuant to Section 4.03, provided that all of the following requirements are met: (i) the long-term credit rating of such bank or insurance company is rated in at least the “AA” category (without regard to qualifier) by S&P or Moody’s; (ii) such letter of credit or surety bond has a term of at least twelve (12) months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released pursuant to Section 4.03; and (d) the Fiscal Agent is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Bond Fund for the purpose of making payments required pursuant to Section 4.03.
“Rate and Method” means the Rate and Method of Apportionment of Special Tax for Improvement Area No. 6, as initially approved and as may be amended. “Record Date” means the 15th day of the month next preceding the month of the applicable Interest Payment Date whether or not such day is a Business Day. “Regulations” means temporary and permanent regulations promulgated under the Code. “Reserve Fund” means the fund by that name established pursuant to Section 4.03(A) hereof.
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“Reserve Requirement” means the least of (i) 125% of the average Annual Debt Service on the Bonds; (ii) Maximum Annual Debt Service on the Bonds; and (iii) 10% of the original principal amount of the Bonds (or, if the Bonds have more than a de minimis amount of original issue discount or premium, 10% of the issue price of such Series of Bonds); provided, that – (a) in no event shall the City be obligated to deposit an amount in the Reserve Fund in excess of the amount permitted by the applicable provisions of the Code to be so deposited from the proceeds of tax-exempt bonds without having to restrict the yield of any investment purchased with any portion of such deposit and, if the amount of any such deposit is so limited, the Reserve Requirement shall be only the amount of such deposit as permitted by the Code;
(b) the City may meet all or a portion of the Reserve Requirement with respect to the Bonds by depositing a Qualified Reserve Fund Credit Instrument in accordance with the Fiscal Agent Agreement; and
(c) the Reserve Requirement shall be set at the time of issuance of the Bonds and shall not increase thereafter but may decrease.
“Resolution” means Resolution No. 2025-___, adopted by the City Council of the City on _____________, 2025, which resolution authorized the issuance of the Bonds. “Resolution of Formation” means Resolution No. R-2024-04, adopted by the Board of Directors of the Mountain House Community Services District, as predecessor to the City, establishing the District, designating five initial improvement areas therein, and establishing the Future Annexation Area.
“Securities Depositories” means The Depository Trust Company, and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other securities depositories as the City may designate in an Officer’s Certificate delivered to the Fiscal Agent.
“Series” means any series of bonds authorized for Improvement Area No. 6 pursuant to this Fiscal Agent Agreement or any Supplemental Agreement. “Special Tax Fund” means the fund by that name established by Section 3.03(A) hereof. “Special Taxes” means the “Facilities Special Tax” as defined in the Rate and Method, levied within Improvement Area No. 6 pursuant to the Act, the Ordinance and this Agreement. “Special Tax Revenues” means the proceeds of the Special Taxes annually received by the City, excluding any interest and penalties thereon collected in connection with delinquent Special Taxes, less an amount equal to the Administrative Expense Priority, including all scheduled payments and delinquent payments thereof, and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes. “Supplemental Agreement” means an agreement which is amendatory of or supplemental to this Agreement, but only if and to the extent that such agreement is specifically authorized hereunder.
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“Surplus Account” means the account of the Special Tax Fund by that name established by Section 3.03(A) hereof.
“2025 Bonds” means the Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Series 2025.
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ARTICLE II
THE BONDS
Section 2.01. Principal Amount; Designation. 2025 Bonds in the aggregate principal amount of $___________ are hereby authorized to be issued by the City for Improvement Area No. 6 under and subject to the terms of the Resolution and this Agreement, the Act and other applicable laws of the State of California. The 2025 Bonds shall be designated the “Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Series 2025.”
Section 2.02. Terms of 2025 Bonds.
(A) Form; Denominations. The 2025 Bonds shall be issued as fully registered Bonds without coupons in the denomination of $5,000 or any integral multiple of $5,000 in excess thereof. The 2025 Bonds shall be lettered and numbered in a customary manner as determined by the Fiscal Agent.
(B) Date of 2025 Bonds. The 2025 Bonds shall be dated the Closing Date for the 2025 Bonds.
(C) CUSIP Identification Numbers. “CUSIP” identification numbers shall be imprinted on the 2025 Bonds, but such numbers shall not constitute a part of the contract evidenced by the 2025 Bonds and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the 2025 Bonds. In addition, failure on the part of the City or the Fiscal Agent to use such CUSIP numbers in any notice to Owners shall not constitute an event of default or any violation of the City’s contract with such Owners and shall not impair the effectiveness of any such notice. (D) Maturities. The 2025 Bonds shall be issued as serial bonds and term bonds and shall mature and become payable as follows:
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
CUSIP
(_____)
(T) Term Bond.
(E) Interest. The 2025 Bonds shall bear interest at the rates set forth above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each 2025 Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date POLICY AND ACTION ITEM 8.4
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preceding the first Interest Payment Date, in which event it shall bear interest from the Closing Date; provided, however, that if at the time of authentication of a 2025 Bond, interest is in default thereon, such 2025 Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. (F) Method of Payment. Interest on the 2025 Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered Owner thereof at such registered Owner’s address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon written instructions received by the Fiscal Agent on or before the Record Date preceding the Interest Payment Date of any Owner of $1,000,000 or more in aggregate principal amount of 2025 Bonds; provided that so long as any 2025 Bonds are in book-entry form, payments with respect to such 2025 Bonds shall be made by wire transfer or such other method acceptable to the Fiscal Agent to the Depository. The principal of the 2025 Bonds and any premium on the 2025 Bonds are payable in lawful money of the United States of America upon surrender of the 2025 Bonds at the Principal Office of the Fiscal Agent. All 2025 Bonds paid by the Fiscal Agent pursuant to this Section shall be cancelled by the Fiscal Agent.
The Fiscal Agent shall destroy the cancelled 2025 Bonds and issue a certificate of destruction thereof to the City.
Section 2.03. Redemption.
(A) Redemption Dates.
(i) Optional Redemption. The Bonds are subject to optional redemption from any source of available funds (other than prepayments of the Special Tax by property owners), in whole or in part among maturities as specified by the City and by lot within a maturity, on any date on and after September 1, 2031 at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:
Redemption Dates
Redemption
Price
September 1, 2031 through August 31, 2032 103%
September 1, 2032 through August 31, 2033 102
September 1, 2033 through August 31, 2034 101
September 1, 2034 and any date thereafter 100
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(ii) Mandatory Redemption From Prepayments. The Bonds are subject to mandatory redemption from prepayments of the Special Tax by property owners, in whole or in part among maturities as shall be specified by the City and by lot within a maturity, on any Interest Payment Date at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:
Redemption Dates
Redemption
Price
September 1, 2025 through and including March 1, 2032 103% September 1, 2032 and March 1, 2033 102
September 1, 2033 and March 1, 2034 101
September 1, 2034 and any Interest Payment Date thereafter 100 The proceeds of any such prepayment shall be deposited in the Prepayment Account of the Bond Fund and applied by the Fiscal Agent to pay the redemption price of the 2025 Bonds. (iii) Mandatory Sinking Fund Redemption. The Bonds maturing September 1, 2030, September 1, 2035, September 1, 2040, September 1, 2045, September 1, 2050 and September 1, 2055 are subject to mandatory sinking payment redemption in part on September 1, 2026, September 1, 2031, September 1, 2036, September 1, 2041, September 1, 2046 and September 1, 2051, respectively, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following tables:
Term Bonds Maturing September 1, 2030
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2026
2027
2028
2029
2030 (maturity)
Term Bonds Maturing September 1, 2035
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2031
2032
2033
2034
2035 (maturity)
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Term Bonds Maturing September 1, 2040
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2036
2037
2038
2039
2040 (maturity)
Term Bonds Maturing September 1, 2045
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2041
2042
2043
2044
2045 (maturity)
Term Bonds Maturing September 1, 2050
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2046
2047
2048
2049
2050 (maturity)
Term Bonds Maturing September 1, 2055
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2051
2052
2053
2054
2055 (maturity)
The amounts in the foregoing tables shall be reduced pro rata at the direction of the City in an Officer’s Certificate, in order to maintain substantially uniform debt service, as a result of any prior partial redemption of the 2025 Bonds pursuant to Section 2.03(A)(i) or (ii) above.
In lieu of redemption under this Section 2.03, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding 2025 Bonds, upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may 2025 Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase.
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(B) Notice to Fiscal Agent. The City shall give the Fiscal Agent an Officer’s Certificate containing notice of its intention to redeem 2025 Bonds pursuant to subsections (A)(i) and (A)(ii) not less than 45 days prior to the applicable redemption date. (C) Redemption Procedure by Fiscal Agent. The Fiscal Agent shall cause notice of any redemption to be mailed by first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption, to the Securities Depositories and to the Municipal Securities Rulemaking Board and to the Securities Depositories, and to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books in the Principal Office of the Fiscal Agent; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds.
Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the CUSIP numbers and Bond numbers of the Bonds to be redeemed by giving the individual CUSIP number and Bond number of each Bond to be redeemed or shall state that all Bonds between two stated Bond numbers, both inclusive, are to be redeemed or that all of the Bonds of one or more maturities have been called for redemption, shall state as to any Bond called in part the principal amount thereof to be redeemed, and shall require that such Bonds be then surrendered at the Principal Office of the Fiscal Agent for redemption at the said redemption price, and shall state that further interest on such Bonds will not accrue from and after the redemption date.
The City has the right to rescind any notice of the redemption of Bonds under Section
2.03(A)(i) by written notice to the Fiscal Agent on or prior to two Business Days prior the date fixed for redemption. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an event of default. The City and the Fiscal Agent have no liability to the Owners or any other party related to or arising from such rescission of redemption. The Fiscal Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under this Section.
Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, of the Bonds being redeemed with the proceeds of such check or other transfer.
Whenever provision is made in this Agreement for the redemption of less than all of the Bonds of any maturity, the Fiscal Agent shall select the Bonds to be redeemed, from all Bonds or such given portion thereof of such maturity by lot in any manner which the Fiscal Agent in its sole discretion shall deem appropriate.
Upon surrender of Bonds redeemed in part only, the City shall execute and the Fiscal Agent shall authenticate and deliver to the registered Owner, at the expense of the City, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds.
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(D) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Bonds so called for redemption shall have been deposited in the Bond Fund, such Bonds so called shall cease to be entitled to any benefit under this Agreement other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice.
All Bonds redeemed and purchased by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the cancelled Bonds and issue a certificate of destruction thereof to the City.
Section 2.04. Form of Bonds. The Bonds, the form of Fiscal Agent’s certificate of authentication and the form of assignment, to appear thereon, shall be substantially in the forms, respectively, set forth in Exhibit A attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Agreement, the Resolution and the Act.
Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the City by the Mayor and the City Clerk of the City who are in office on the date of adoption of this Agreement or at any time thereafter, and the seal of the City shall be impressed, imprinted or reproduced by facsimile signature thereon. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to the Owner, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the Bonds to the Owner. Any Bond may be signed and attested on behalf of the City by such persons as at the actual date of the execution of such Bond shall be the proper officers of the City although at the nominal date of such Bond any such person shall not have been such officer of the City.
Only such Bonds as shall bear thereon a certificate of authentication in substantially the form set forth in Exhibit A, executed and dated by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of authentication of the Fiscal Agent shall be conclusive evidence that the Bonds registered hereunder have been duly authenticated, registered and delivered hereunder and are entitled to the benefits of this Agreement.
Section 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of Section 2.08 by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the City. The Fiscal Agent shall collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer.
Whenever any Bond or Bonds shall be surrendered for transfer, the City shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity.
No transfers of Bonds shall be required to be made (i) within fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.
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Section 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office of the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange shall be paid by the City. The Fiscal Agent shall collect from the Owner requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange.
No exchanges of Bonds shall be required to be made (i) within fifteen (15) days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.
Section 2.08. Bond Register. The Fiscal Agent will keep or cause to be kept, at its Principal Office, sufficient books for the registration and transfer of the Bonds (the “Bond Register”), which books shall show the series number, date, amount, rate of interest and Owner of each Bond and shall at all times be open to inspection by the City during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided.
Section 2.09. Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the City, and may contain such reference to any of the provisions of this Agreement as may be appropriate.
Every temporary Bond shall be executed by the City upon the same conditions and in substantially the same manner as the definitive Bonds. If the City issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange for the definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary bonds shall be entitled to the same benefits under this Agreement as definitive Bonds authenticated and delivered hereunder.
Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated, the City shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be canceled by it and destroyed by the Fiscal Agent who shall deliver a certificate of destruction thereof to the City. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and indemnity for the Fiscal Agent and the City satisfactory to the Fiscal Agent shall be given, the City shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen. The City may require payment of a sum not exceeding the actual cost of preparing each new Bond delivered under this Section and of the expenses which may be incurred by the City and the Fiscal Agent for the preparation, execution, authentication and delivery. Any Bond delivered under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the City whether or not the Bond so alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement.
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Section 2.11. Limited Obligation. All obligations of the City under this Agreement and the Bonds shall be special obligations of the City, payable solely from the Special Tax Revenues and the funds pledged therefore hereunder. Neither the full faith and credit nor the taxing power of the City (except to the limited extent set forth herein) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds.
Section 2.12. Book-Entry Only System. DTC shall act as the initial Depository for the Bonds. One Bond for each maturity of the Bonds shall be initially executed, authenticated, and delivered as set forth herein as a separate fully registered certificate (in printed or typewritten form). Upon initial execution, authentication, and delivery, the ownership of the Bonds shall be registered in the Bond Register kept by the Fiscal Agent for the Bonds in the name of Cede & Co, as nominee of DTC or such nominee as DTC shall appoint in writing.
The Authorized Officers and the Fiscal Agent are hereby authorized to take any and all actions as may be necessary and not inconsistent with this Agreement to qualify the Bonds for the Depository’s book-entry system, including the execution of the Depository’s required representation letter.
With respect to Bonds registered in the Bond Register in the name of Cede & Co, as nominee of DTC, the Fiscal Agent shall not have any responsibility or obligation to any broker-dealer, bank, or other financial institution for which DTC holds Bonds as Depository from time to time (the “DTC Participants”) or to any person for which a DTC Participant acquires an interest in the Bonds (the “Beneficial Owners”). Without limiting the immediately preceding sentence, the Fiscal Agent shall not have any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co, or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant, any Beneficial Owner, or any other person, other than DTC, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository of the beneficial interests in the Bonds to be redeemed in the event the City elects to redeem the Bonds in part, (iv) the payment to any DTC Participant, any Beneficial Owner, or any other person, other than DTC, of any amount with respect to the principal of or interest on the Bonds, or (v) any consent given or other action taken by the Depository as Owner of the Bonds.
The Fiscal Agent may treat as and deem DTC to be the absolute Owner of each Bond for which DTC is acting as Depository for the purpose of payment of the principal of and interest on such Bonds, for the purpose of giving notices of redemption and other matters with respect to such Bonds, for the purpose of registering transfers with respect to such Bonds, and for all purposes whatsoever. The Fiscal Agent shall pay all principal of and interest on the Bonds only to the Owners as shown on the Registration Books, and all such payments shall be valid and effective to fully satisfy and discharge all obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid.
No person other than an Owner, as shown on the Bond Register, shall receive a physical Bond. Upon delivery by DTC to the Fiscal Agent of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the transfer provisions in Section 2.06 hereof, references to “Cede & Co.” in this Section 2.12 shall refer to such new nominee of DTC.
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are Outstanding, and discharging its responsibilities with respect thereto under applicable law.
The City may terminate the services of DTC with respect to the Bonds if it determines that DTC is unable to discharge its responsibilities with respect to the Bonds or that continuation of the system of book-entry transfers through DTC is not in the best interest of the Beneficial Owners, and the City shall mail notice of such termination to the Fiscal Agent.
Upon the termination of the services of DTC as provided in the previous paragraph, and if no substitute Depository willing to undertake the functions hereunder can be found which is willing and able to undertake such functions upon reasonable or customary terms, or if the City determines that it is in the best interest of the Beneficial Owners of the Bonds that they be able to obtain certificated Bonds, the Bonds shall no longer be restricted to being registered in the Bond Register of the Fiscal Agent in the name of Cede & Co., as nominee of DTC, but may be registered in whatever name or name the Owners shall designate at that time, in accordance with Section 2.06.
To the extent that the Beneficial Owners are designated as the transferee by the Owners, in accordance with Section 2.06, the Bonds will be delivered to such Beneficial Owners as soon as practicable.
Section 2.13. No Acceleration. The principal of the Bonds shall not be subject to acceleration hereunder. Nothing in this Section 2.13 shall in any way prohibit the redemption of Bonds under Section 2.03 hereof, or the defeasance of the Bonds and discharge of this Agreement under Section 9.03 hereof.
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ARTICLE III
ISSUANCE OF BONDS
Section 3.01. Issuance and Delivery of Bonds. At any time after the execution of this Agreement, the City may issue the Bonds in the aggregate principal amount set forth in Section 2.01 or as authorized in any supplemental agreement and deliver such Bonds to the Original Purchaser. The Authorized Officers of the City are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of Bonds in accordance with the provisions of the Act, the Resolution and this Agreement, to authorize the payment of Costs of Issuance of the Bonds from the proceeds of the Bonds and to do and cause to be done any and all acts and things necessary or convenient for delivery of the Bonds to the Original Purchaser.
Section 3.02. Application of Proceeds of Sale of 2025 Bonds.
The proceeds of the purchase of the 2025 Bonds by the Original Purchaser in the amount of $___________, which is the principal amount thereof ($___________) plus [net] original issue premium of $__________ and less Underwriter’s discount of $____________, shall be paid to the Fiscal Agent, who shall forthwith deposit such proceeds on the Closing Date as follows:
(i) Deposit in the Improvement Fund $_________;
(ii) Deposit in the Reserve Fund $___________;
(iii) Deposit $_____________ in the Capitalized Interest Account of the Bond Fund; and
(iv) Deposit in the Costs of Issuance Fund $___________.
Section 3.03. Special Tax Fund.
(A) Establishment of Special Tax Fund. There is hereby established as a separate fund to be held by the Finance Director, known as Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds, Special Tax Fund. Within the Special Tax Fund, the Finance Director shall establish and maintain two accounts, (i) the Debt Service Account, to the credit of which the City shall deposit, immediately upon receipt, all Special Tax Revenues received by the City, and any amounts required by Section 3.05(B) to be deposited in the Special Tax Fund, and (ii) the Surplus Account, to the credit of which the City shall deposit surplus Special Tax Revenues described in Section 3.03(B) below. Moneys in the Special Tax Fund shall be held in trust by the City for the benefit of the City and the Owners of the Bonds, shall be disbursed as provided below and, pending any disbursement, shall be subject to a lien in favor of the Owners of the Bonds. (B) Disbursements. All Special Tax Revenues shall be deposited in the Debt Service Account upon receipt. No later than 10 Business Days prior to each Interest Payment Date, the City shall withdraw from the Debt Service Account and transfer (i) to the Fiscal Agent for deposit in the Reserve Fund an amount such that the amount then on deposit therein is equal to the Reserve Requirement, and (ii) to the Fiscal Agent for deposit in the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund such that the amount in the Bond Fund equals the principal, including any mandatory sinking fund payments, premium, if any, and POLICY AND ACTION ITEM 8.4
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interest due on the Bonds on the next Interest Payment Date, provided, however, that as soon as practicable after the receipt by the City of any prepayments of Special Taxes, but no later than 30 Business Days after such receipt, the City shall transfer such prepayments to the Fiscal Agent for deposit into the Prepayment Account of the Bond Fund to be used for the redemption of bonds as instructed by the City. After the transfers under subsections (i) and (ii) have been made, the City may, on or after September 2 of each year, transfer to the Surplus Account the amount remaining in the Debt Service Account.
From time to time, the City may withdraw from the Surplus Account of the Special Tax Fund amounts needed to pay costs of the Project or incidental expenses of the District authorized under the Act, including Administrative Expenses in excess of the Administrative Expense Priority.
Moneys in the Surplus Account may, at the City’s discretion, also be used to pay the principal of, premium, if any, and interest on the Bonds or to replenish the Reserve Fund to the amount of the Reserve Requirement and if not needed for those purposes shall be available, to the extent required under the Acquisition Agreement, to directly finance the Project (so-called pay-as-yougo funds). (C) Investment. Moneys in the Special Tax Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Special Tax Fund to be used for the purposes thereof.
Section 3.05. Improvement Fund.
(A) Establishment of Improvement Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, known as Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Improvement Fund to the credit of which a deposit shall be made as required by Section 3.02 and as required by Section 3.03. Moneys in the Improvement Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section. (B) Procedure for Disbursement. Disbursements from the Improvement Fund shall be made as determined by an Authorized Officer for the payment or reimbursement of the costs of the Project, including for costs of acquisition of portions of the Project in accordance with the Acquisition Agreement, authorized administrative expenses of the City, debt service on the Bonds in the event of default in the payment of Special Taxes by the Developer (as defined in the Acquisition Agreement), and/or otherwise as authorized by the City, by submission of an Officer’s Certificate to the Fiscal Agent requesting disbursement of moneys. The Fiscal Agent need not make any such payment if it has received notice of any lien, right to lien or attachment upon, or claim affecting the right to receive payment of, any of the moneys to be so paid, that has not been released or will not be released simultaneously with such payment. The Fiscal Agent shall not incur any liability for any disbursement from the Improvement Fund made in reliance upon any Officer’s Certificate.
(C) Investment. Moneys in the Improvement Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits from the investment of amounts in the Improvement Fund shall be retained in the Improvement Fund to be used for the purposes of the Improvement Fund.
(D) Closing of Fund. Upon the filing of an Officer’s Certificate stating that the portion of the Project to be financed from the Improvement Fund has been completed and that all costs of such portion of the Project have been paid or are not required to be paid from the Improvement POLICY AND ACTION ITEM 8.4
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Fund, the Authorized Officer shall request the Fiscal Agent to transfer the amount, if any, remaining in the Improvement Fund to the Bond Fund for application to the payment of principal of and interest on the Bonds in accordance with Section 4.02 and the Improvement Fund shall be closed.
Section 3.06. Costs of Issuance Fund.
(A) Establishment of Costs of Issuance Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, known as Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Series Costs of Issuance Fund, to the credit of which a deposit shall be made as required by Section 3.02. Moneys in the Costs of Issuance Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section for the payment or reimbursement of Costs of Issuance of the 2025 Bonds. (B) Disbursement. Amounts in the Costs of Issuance Fund shall be disbursed from time to time to pay Costs of Issuance, as set forth in an Officer’s Certificate containing respective amounts to be paid to the designated payees, signed by the Finance Director or a designee thereof and delivered to the Fiscal Agent. The Fiscal Agent shall pay all Costs of Issuance of the 2025 Bonds upon receipt of an invoice from any such payee which requests payment in an amount which is less than or equal to the amount set forth with respect to such payee in such Officer’s Certificate, or upon receipt of an Officer’s Certificate requesting payment of a Costs of Issuance not listed on the initial Officer’s Certificate delivered to the Fiscal Agent on the Closing Date of the 2025 Bonds. The Fiscal Agent shall maintain the Costs of Issuance Fund for a period of 6 months, from the Closing Date of the 2025 Bonds and then shall transfer any moneys remaining therein, including any investment earnings thereon, to the Improvement Fund, and if the Improvement Fund has been closed then to the Special Tax Fund, and the Costs of Issuance Fund shall be closed. Thereafter, every invoice received by the Fiscal Agent shall be submitted to the Finance Director for payment from amounts on deposit in the Special Tax Fund. (C) Investment. Moneys in the Costs of Issuance Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained by the Fiscal Agent in the Costs of Issuance Fund to be used for the purposes of such fund.
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ARTICLE IV
SPECIAL TAX REVENUES; BOND FUND AND RESERVE FUND
Section 4.01. Pledge of Special Tax Revenues and Other Amounts. All of the Special Tax Revenues and, until disbursed as provided herein, all moneys deposited in the Special Tax Fund and in the Bond Fund are hereby pledged to secure the repayment of the Bonds. In addition, the 2025 Bonds shall be secured by a pledge of all amounts in the Reserve Fund, and a series of Additional Bonds may be secured by a reserve account within the Reserve Fund or a separate reserve fund, as provided in the applicable Supplemental Agreement for such Series.
Such pledge shall constitute a first lien on the Special Tax Revenues and said amounts.
The Special Tax Revenues and all moneys deposited into such funds (except as otherwise provided herein) are hereby dedicated in their entirety to the payment of the principal of, including any mandatory sinking fund payments, and interest and any premium on, the Bonds as provided herein and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose in accordance with Section 9.03.
Amounts in the Surplus Account, the Improvement Fund and the Costs of Issuance Fund are not pledged to the repayment of the Bonds. The facilities acquired with the proceeds of the Bonds are not in any way pledged to the repayment of the Bonds. Any proceeds of condemnation, destruction or other disposition of any facilities financed with the proceeds of the Bonds are not pledged to the repayment of the Bonds and are free and clear of any lien or obligation imposed hereunder.
Section 4.02. Bond Fund.
(A) Establishment of Bond Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, known as Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Bond Fund, to the credit of which deposits shall be made as required by Section 3.03(B)(ii), Section 4.03 and any other amounts required to be deposited therein by this Agreement or the Act. Within the Bond Fund, the Fiscal Agent shall establish a Prepayment Account and deposit therein moneys received, if any, from prepayments of the Special Tax pursuant to Section
2.03(A)(ii). Moneys in the Bond Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds, shall be disbursed for the payment of the principal of, and interest and any premium on, the Bonds as provided below, and, pending such disbursement, shall be subject to a lien in favor of the Owners of the Bonds.
There is also hereby created within the Bond Fund a “Capitalized Interest Account” which account is hereby established for purposes of accounting for the disposition of 2025 Bonds, a portion of the proceeds of which will be deposited to such Capitalized Interest Account pursuant to Section 3.02. The amount deposited to the Capitalized Interest Account and any investment earnings thereon shall be used solely to make payments on the 2025 Bonds through and including September 1, 2025. Any excess amounts therein on September 1, 2025 shall be transferred to the Special Tax Fund, and the Capitalized Interest Account shall thereupon be closed. (B) Disbursements. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Bond Fund and pay to the Owners of the Bonds the principal of, and interest and any premium, then due and payable on the Bonds, including any amounts due on the Bonds by POLICY AND ACTION ITEM 8.4
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reason of the sinking payments set forth in Section 2.03(A)(iii) or any redemption of the Bonds as provided under Section 2.03(A)(i). Moneys in the Prepayment Account shall be disbursed for redemption of Bonds as instructed by the City.
In the event that amounts in the Bond Fund are insufficient to pay regularly scheduled payments of principal of and interest on the Bonds, the Fiscal Agent shall withdraw from the Reserve Fund to the extent of any funds therein, the amount of such insufficiency, and the Fiscal Agent shall provide written notice to the Finance Director of the amounts so withdrawn from the Reserve Fund. Amounts so withdrawn from the Reserve Fund shall be deposited in the Bond Fund.
If, after the foregoing transfer, there are insufficient funds in the Bond Fund to make the payments provided for to pay regularly scheduled payments of principal of and interest on the Bonds, the Fiscal Agent shall apply the available funds first to the payment of interest on the Bonds, then to the payment of principal due on the Bonds other than by reason of sinking payments, and then to payment of principal due on the Bonds by reason of sinking payments.
Any sinking payment not made as scheduled shall be added to the sinking payment to be made on the next sinking payment date.
(C) Investment. Moneys in the Bond Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Bond Fund to be used for the purposes of such fund. (D) Deficiency. If ten days before any Interest Payment Date it appears to the Fiscal Agent that there is a danger of deficiency in the Bond Fund and that the Fiscal Agent may be unable to pay regularly scheduled debt service on the Bonds in a timely manner, the Fiscal Agent shall report to the Finance Director such fact. The City covenants to increase the levy of the Special Taxes in the next Fiscal Year (subject to the maximum amount authorized by the Resolution of Formation) in accordance with the procedures set forth in the Act for the purpose of curing Bond Fund deficiencies.
If on any Interest Payment Date the Fiscal Agent is unable to pay principal, interest and premium, if any, due on any Interest Payment Date for the Bonds due to insufficient funds in the Bond Fund, or if funds are withdrawn from the Reserve Fund to pay principal and/or interest on the Bonds the Fiscal Agent shall notify the Finance Director in writing of such fact, and the Finance Director shall notify CDIAC of such fact within 10 days of such Interest Payment Date.
The Fiscal Agent has no obligation under this Agreement to provide notice or disclosure to the Bondowners of insufficient funds or anticipation of deficiency in the Bond Fund.
Section 4.03. Reserve Fund.
(A) Establishment of Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, known as “Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Reserve Fund,” (the “Reserve Fund”), to the credit of which a deposit shall be made as required by Section 3.02, and deposits shall be made as provided in Section 3.03(B). Moneys in the Reserve Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds secured thereby as a reserve for the payment of principal of, and interest on, the Bonds and shall be subject to a lien in favor of the Owners of the Bonds secured thereby.
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The City has the right at any time to cause the Fiscal Agent to release funds from the Reserve Fund, in whole or in part, by tendering to the Fiscal Agent: (1) a Qualified Reserve Fund Credit Instrument, and (2) an opinion of Bond Counsel stating that such release will not, of itself, cause the portion of the interest on the Bonds to become includable in gross income for purposes of federal income taxation. Upon tender of such items to the Fiscal Agent, the Fiscal Agent will transfer such funds from the Reserve Fund to the City.
(B) Use of Fund. Except as otherwise provided in this Section, all amounts deposited in the Reserve Fund shall be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Bond Fund in the event of any deficiency within five days prior to any Interest Payment Date in the Bond Fund of the amount required for payment of the principal of, and interest on, the Bonds secured by the Reserve Fund on such Interest Payment Date.
Whenever transfer is made from the Reserve Fund to the Bond Fund due to a deficiency in the Bond Fund, the Fiscal Agent shall provide written notice thereof to the Finance Director. (C) Transfer of Excess of Reserve Requirement. Whenever, on the Business Day prior to any Interest Payment Date, the amount in the Reserve Fund (or any account therein) exceeds the then applicable Reserve Requirement, the Fiscal Agent shall provide written notice to the Finance Director of the amount of the excess and, following any transfer required pursuant to Section 4.03(D) below, shall transfer an amount equal to the excess from the Reserve Fund to the Improvement Fund, if the Project has not been completed as of the date of such transfer, or if the Project has been completed, to the Bond Fund to be used for the payment of the principal of and interest on the Bonds in accordance with Section 4.02. (D) Transfer for Rebate Purposes. Investment earnings on amounts in the Reserve Fund may be withdrawn from the Reserve Fund for purposes of making payment to the federal government to comply with Section 6.02.
(E) Transfer When Balance Exceeds Outstanding Bonds. Whenever the balance in the Reserve Fund exceeds the amount required to redeem or pay the Outstanding Bonds, including interest accrued to the date of payment or redemption and premium, if any, due upon redemption, and after making any transfer required under Section 4.03(D) above and upon receipt of an Officer’s Certificate directing it to do so, the Fiscal Agent shall transfer the amount in the Reserve Fund to the Bond Fund to be applied, on the next succeeding Interest Payment Date to the payment and redemption, in accordance with Section 4.02 or 2.03 as applicable, of all of the Outstanding Bonds. In the event that the amount so transferred from the Reserve Fund to the Bond Fund exceeds the amount required to pay and redeem the Outstanding Bonds, the balance in the Reserve Fund shall be transferred to the City, after payment of any amounts due the Fiscal Agent hereunder, to be used for any lawful purpose of the City.
Notwithstanding the foregoing, no amounts shall be transferred from the Reserve Fund pursuant to this Section 4.03(E) until after the calculation, pursuant to Section 6.02, of any amounts due to the federal government following payment of the Bonds and withdrawal of any such amount under Section 4.03(D) for purposes of making such payment to the federal government, and payment of any fees and expenses due to the Fiscal Agent. (F) Investment. Moneys in the Reserve Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from the investment of moneys in the Reserve Fund and other moneys in the Reserve Fund will remain therein until the balance exceeds the Reserve Requirement; any amounts in excess of the Reserve Requirement will be transferred to the Improvement Fund, if the Project has not been completed, or if the POLICY AND ACTION ITEM 8.4
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Project has been completed, to the Bond Fund to be used for the payment of the principal of and interest on the Bonds secured by the Reserve Fund.
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ARTICLE V
OTHER COVENANTS OF THE CITY
Section 5.01. Punctual Payment. The City will punctually pay or cause to be paid the principal of, and interest and any premium on, the Bonds when and as due in strict conformity with the terms of this Agreement, and it will faithfully observe and perform all of the conditions, covenants and requirements of this Agreement and all Supplemental Agreements and of the Bonds.
Section 5.02. Limited Obligation. The Bonds are limited obligations of the City on behalf of Improvement Area No. 6 of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in certain funds and accounts as described herein.
Section 5.03. Extension of Time for Payment. In order to prevent any accumulation of claims for interest after maturity, the City shall not, directly or indirectly, extend or consent to the extension of the time for the payment of any claim for interest on any of the Bonds and shall not, directly or indirectly, be a party to the approval of any such arrangement by purchasing or funding said claims for interest or in any other manner. In case any such claim for interest shall be extended or funded, whether or not with the consent of the City, such claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Agreement, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest which shall not have been so extended or funded.
Section 5.04. Against Encumbrances. The City will not encumber, pledge or place any charge or lien upon any of the Special Tax Revenues or other amounts pledged to the Bonds superior to or on a parity with the pledge and lien herein created for the benefit of the Bonds, except as permitted by this Agreement.
Section 5.05. Books and Accounts. The City will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the City, in which complete and correct entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Special Tax Fund and to the Special Tax Revenues. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Owners of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing.
The Fiscal Agent will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Fiscal Agent, in which complete and correct entries shall be made of all transactions of the Fiscal Agent relating to the expenditure of amounts disbursed from funds and accounts held by the Fiscal Agent hereunder. Such books of record and accounts shall at all times during business hours and upon reasonable prior notice, be subject to the inspection of the City and the Owners of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing.
Section 5.06. Protection of Security and Rights of Owners. The City will preserve and protect the security of the Bonds and the rights of the Owners, and will warrant and defend their rights against all claims and demands of all persons. From and after the delivery of any of the Bonds by the City, the Bonds shall be incontestable by the City.
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Section 5.07. Compliance with Law; Completion of Project. The City will comply with all applicable provisions of the Act and the law in completing the acquisition and construction of the Project; provided that the City shall have no obligation to advance any funds to complete the Project in excess of the amounts available therefor in the Improvement Fund.
Section 5.08. Private Activity Bond Limitation. The City shall assure that the proceeds of the Bonds are not so used as to cause the Bonds to satisfy the private business tests of Section 141(b) of the Code or the private loan financing test of Section 141(c) of the Code.
Section 5.09. Federal Guarantee Prohibition. The City shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause any of the Bonds to be “federally guaranteed” within the meaning of Section 149(b) of the Code.
Section 5.10. Collection of Special Tax Revenues. The City shall comply with all requirements of the Act so as to assure the timely collection of Special Tax Revenues, including without limitation, the enforcement of delinquent Special Taxes.
On or within five Business Days of each June 1, the Fiscal Agent shall provide the Finance Director with a notice stating the amount then on deposit in the Bond Fund and the Reserve Fund.
The receipt of such notice by the Finance Director shall in no way affect the obligations of the Finance Director under the following two paragraphs. Upon receipt of such notice, the Finance Director shall ascertain the relevant parcels on which the Special Taxes are to be levied, taking into account any parcel splits during the preceding and then current year.
The City shall effect the levy of the Special Taxes each Fiscal Year in accordance with the Ordinance such that the computation of the levy is complete before the final date on which the County Auditor will accept the transmission of the Special Tax amounts for the parcels within Improvement Area No. 6 for inclusion on the next secured real property tax roll. Upon the completion of the computation of the amounts of the levy, the City shall prepare or cause to be prepared, and shall transmit to the Finance Director, such data as the County Auditor requires to include the levy of the Special Taxes on the next secured real property tax roll.
The City shall fix and levy the amount of Special Taxes within Improvement Area No. 6 required for the payment of principal of and interest on any Outstanding Bonds becoming due and payable during the ensuing year, including any necessary replenishment or expenditure of the Reserve Fund for the Bonds and an amount estimated to be sufficient to pay the Administrative Expenses during such year, all in accordance with the Rate and Method and the Ordinance.
The Special Taxes shall be payable and be collected in the same manner and at the same time and in the same installment as the general taxes on real property are payable, and have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the general taxes on real property. Notwithstanding the foregoing, the Special Taxes may be collected in such other manner as the City shall prescribe if necessary to pay the debt service on the Bonds.
Section 5.11. Further Assurances. The City will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Agreement, and for the better assuring and confirming unto the Owners of the rights and benefits provided in this Agreement.
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Section 5.12. No Arbitrage. The City shall not take, or permit or suffer to be taken by the Fiscal Agent or otherwise, any action with respect to the gross proceeds of the Bonds which if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date would have caused the Bonds to be “arbitrage bonds” within the meaning of Section 148 of the Code and Regulations.
Section 5.13. Maintenance of Tax-Exemption. The City shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Bonds.
Section 5.14. Annual State Reports. The following requirements shall apply to the Bonds:
(A) Annual Reporting. Not later than October 30 of each calendar year, beginning with the October 30 first succeeding the date of the Bonds, and in each calendar year thereafter until the October 30 following the final maturity of the Bonds, the Finance Director shall prepare and supply the California Debt and Investment Advisory Commission, by mail, postage prepaid, with the information required under Section 53359.5(c) of the Act. The annual reporting shall be made using such form or forms as may be prescribed by CDIAC. (B) Other Reporting. If within 10 days prior to any Interest Payment Date it appears to the Fiscal Agent that there is a danger of deficiency in the Bond Fund and that the Fiscal Agent may be unable to pay regularly scheduled debt service on the Bonds in a timely manner or if the Fiscal Agent is unable to pay principal, interest and premium, if any, due on any Interest Payment Date for the Bonds due to insufficient funds in the Bond Fund, or if funds are withdrawn from the Reserve Fund to pay principal and/or interest on the Bonds, the Finance Director shall make the reports required under Section 4.02(D) hereof. (C) Amendment. The reporting requirements of this Section 5.14 shall be amended from time to time, without action by the City or the Fiscal Agent, to reflect any amendments to Section 53359.5(b) or Section 53359.5(c) of the Act.
(D) No Liability. None of the City and its officers, agents and employees, the Finance Director or the Fiscal Agent shall be liable for any inadvertent error in reporting the information required by this Section 5.14.
Section 5.15. Covenant to Foreclose. The City hereby covenants with and for the benefit of the Owners of the Bonds that it will annually on or before September 1 of each year review the public records of the County related to the collection of the Special Tax in order to determine the amount of the Special Tax collected in the prior Fiscal Year, and if the City determines on the basis of such review that:
(a) the amount so collected is deficient by more than 5% of the total amount of the Special Tax for Improvement Area No. 6 levied in such Fiscal Year, then the City will institute, prosecute and pursue such foreclosure proceedings against each parcel in Improvement Area No. 6 for which any installment of the Special Tax is delinquent in the time and manner provided below; or
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by any single property owner is delinquent cumulatively by an amount equal to three installment payments with respect to the current and past Special Tax due, then the City will institute, prosecute and pursue such foreclosure proceedings against each such property owner in the time and manner provided below.
The Finance Director of the City shall within 60 days thereafter send or cause to be sent a written demand letter to the delinquent parcel(s) as the first step in instituting foreclosure proceedings as authorized by the Mello-Roos Act in order to enforce the lien of the delinquent installment of the Special Tax on each such parcel, and shall thereafter diligently prosecute and pursue such foreclosure proceedings to judgment and sale in such manner and upon such timing as advised by legal counsel, taking into account the amounts delinquent, the estimate cost of legal proceedings, the status of Special Tax collections and available debt service reserves; provided, that the City shall not be obligated to commence proceedings against any delinquent parcels in any Fiscal Year in which the City has received or expects to receive one hundred percent (100%) of the amount of such installment from a so-called “Teeter Plan.” Notwithstanding the foregoing, in certain instances the amount of a Special Tax delinquency on a particular parcel in relation to the cost of appropriate foreclosure proceedings may be such that the costs do not warrant the foreclosure proceedings costs. In such cases, foreclosure proceedings may be delayed by the City until there are sufficient Special Tax delinquencies accruing to such parcel (including interest and penalties thereon) to warrant the cost of such foreclosure proceedings.
Section 5.16. Continuing Disclosure to Owners. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate.
Notwithstanding any other provision of this Agreement, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered a default hereunder; however, any Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate to compel performance by the City of its obligations thereunder, including seeking mandate or specific performance by court order.
Section 5.17. No Additional Bonds. The City covenants not to issue Additional Bonds payable from Special Taxes and by the Special Tax Revenues equally and ratably with Bonds previously issued, except that the City may issue bonds to refund all or part of the Bonds. The City may also issue bonds secured by Special Taxes on a subordinate basis to the pledge of Special Taxes for payment of the Bonds.
Nothing in the Fiscal Agent Agreement shall be interpreted to prohibit issuance of bonds or Additional Bonds secured on a subordinate basis to the Bonds.
Section 5.18. Yield of the Bonds. In determining the yield of the Bonds to comply with Section 5.13 and 6.02 hereof, the City will take into account optional and mandatory prepayment redemption (including premium, if any) in advance of maturity based on the reasonable expectations of the City, as of the Closing, without regard to whether or not redemption moneys are received or Bonds are redeemed.
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ARTICLE VI
INVESTMENTS; DISPOSITION OF INVESTMENT PROCEEDS;
LIABILITY OF THE CITY
Section 6.01. Deposit and Investment of Moneys in Funds. Subject in all respects to the provisions of Section 6.02, moneys in any fund or account created or established by this Agreement and held by the Fiscal Agent, shall be invested by the Fiscal Agent in Permitted Investments, as directed pursuant to an Officer’s Certificate filed with the Fiscal Agent at least two (2) Business Days in advance of the making of such investments. In the absence of any such Officer’s Certificate, the Fiscal Agent shall invest any such moneys in Permitted Investments described in clause (vii) of the definition thereof which by their terms mature prior to the date on which such moneys are required to be paid out hereunder. Subject in all respects to the provisions of Section 6.02, moneys in any fund or account created or established by this Agreement and held by the Finance Director shall be invested by the Finance Director in any lawful investments that the City may make, which by their terms mature prior to the date on which such moneys are required to be paid out hereunder. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account, subject, however, to the requirements of this Agreement for transfer of interest earnings and profits resulting from investment of amounts in funds and accounts.
The Fiscal Agent or Finance Director may act as principal or agent in the acquisition or disposition of any investment. Neither the Fiscal Agent nor the Finance Director shall incur any liability for losses arising from any investments made pursuant to this Section. Any losses arising from any investments made pursuant to this Section shall be offset against interest earnings and profits retained in the same fund.
Except as otherwise provided in the next sentence, all investments of amounts deposited in any fund or account created by or pursuant to this Agreement, or otherwise containing gross proceeds of the Bonds (within the meaning of Section 148 of the Code), shall be acquired, disposed of, and valued (as of the date that valuation is required by this Agreement or the Code) at Fair Market Value. For purposes of any Fair Market Value determination hereunder, the Fiscal Agent shall be entitled to conclusively rely on an Officer’s Certificate of the City and shall be fully protected in relying thereon. Investments in funds or accounts (or portions thereof) that are subject to a yield restriction under applicable provisions of the Code and (unless valuation is undertaken at least annually) investments in the Reserve Fund shall be valued at their present value (within the meaning of Section 148 of the Code).
Investments in any and all funds and accounts may be commingled in a separate fund or funds for purposes of making, holding and disposing of investments, notwithstanding provisions herein for transfer to or holding in or to the credit of particular funds or accounts of amounts received or held by the Fiscal Agent or the Finance Director hereunder, provided that the Fiscal Agent or the Finance Director, as applicable, shall at all times account for such investments strictly in accordance with the funds and accounts to which they are credited and otherwise as provided in this Agreement.
The Fiscal Agent or the Finance Director, as applicable, shall sell or present for redemption, any investment security whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or account to which such investment security is credited and neither the Fiscal Agent nor the Finance Director shall POLICY AND ACTION ITEM 8.4
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be liable or responsible for any loss resulting from the acquisition or disposition of such investment security in accordance herewith.
The City acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the City the right to receive brokerage confirmations of security transactions as they occur, the City specifically waives receipt of such confirmations to the extent permitted by law. The Fiscal Agent will furnish the City periodic cash transaction statements which include detail for all investment transactions made by the Fiscal Agent hereunder.
Section 6.02. Rebate of Excess Investment Earnings to the United States. The City covenants to calculate and rebate to the federal government, in accordance with the Regulations, excess investment earnings to the extent required by Section 148(f) of the Code.
The City shall notify the Fiscal Agent of any amounts determined to be due to the federal government, and the Fiscal Agent shall, upon receipt of an Officer’s Certificate of the City, withdraw such amounts from the Reserve Fund pursuant to Section 4.03(D), and pay such amounts to the federal government as required by the Code and the Regulations. In the event of any shortfall in amounts available to make such payments under Section 4.03(D), the Fiscal Agent shall notify the Finance Director in writing of the amount of the shortfall and the Finance Director shall make such payment from any amounts available in the Special Tax Fund. Any fees or expenses incurred by the Fiscal Agent or the City under or pursuant to this Section 6.02 shall be Administrative Expenses.
In order to provide for the administration of this Section 6.02, the City may provide for the employment of independent attorneys, accountants and consultants compensated on such reasonable basis as the City may deem appropriate.
Section 6.03. Limited Obligation. The City’s obligations hereunder are limited obligations of the City on behalf of Improvement Area No. 6 of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in the Special Tax Fund, the Bond Fund and the Reserve Fund created hereunder.
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ARTICLE VII
THE FISCAL AGENT
Section 7.01. Appointment of Fiscal Agent. Computershare Trust Company, N.A., at its Principal Office, is hereby appointed Fiscal Agent for the Bonds. The Fiscal Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent.
Any company into which the Fiscal Agent may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible under the following paragraph of this Section, shall be the successor to such Fiscal Agent without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding.
The City may remove the Fiscal Agent initially appointed, and any successor thereto, and may appoint a successor or successors thereto, but any such successor shall be a bank or trust company having a combined capital (exclusive of borrowed capital) and surplus of at least $50,000,000, including, for such purpose, the combined capital and surplus of any parent holding company, and subject to supervision or examination by federal or state authority. If such bank or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section 7.01, combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
The Fiscal Agent may at any time resign by giving written notice to the City and by giving to the Owners notice by mail of such resignation. Upon receiving notice of such resignation, the City shall promptly appoint a successor Fiscal Agent by an instrument in writing. Any resignation or removal of the Fiscal Agent shall become effective upon acceptance of appointment by the successor Fiscal Agent.
If no appointment of a successor Fiscal Agent shall be made pursuant to the foregoing provisions of this Section within 30 days after the Fiscal Agent shall have given to the City written notice or after a vacancy in the office of the Fiscal Agent shall have occurred by reason of its inability to act, the Fiscal Agent or any Bondowner may apply to any court of competent jurisdiction to appoint a successor Fiscal Agent. Said court may thereupon, after such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent.
Section 7.02. Liability of Fiscal Agent. The recitals of facts, covenants and agreements herein and in the Bonds contained shall be taken as statements, covenants and agreements of the City, and the Fiscal Agent assumes no responsibility for the correctness of the same, or makes any representations as to the validity or sufficiency of this Agreement or of the Bonds, or shall incur any responsibility in respect thereof, other than in connection with the duties or obligations herein or in the Bonds assigned to or imposed upon it. The Fiscal Agent shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. The Fiscal Agent assumes no responsibility or liability for any information, statement or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds. The Fiscal Agent has no liability regarding the use of the proceeds from the purchase of the Bonds deposited in funds held by the City.
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In the absence of bad faith, the Fiscal Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Fiscal Agent and conforming to the requirements of this Agreement, including all Officer’s Certificates of the City meeting such requirements; but in the case of any such certificates or opinions by which any provision hereof are specifically required to be furnished to the Fiscal Agent, the Fiscal Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Agreement. Except as provided above in this paragraph, the Fiscal Agent shall be protected and shall incur no liability in acting or proceeding, or in not acting or not proceeding, in good faith, reasonably and in accordance with the terms of this Agreement, upon any resolution, order, notice, request, consent or waiver, certificate, statement, affidavit, or other paper or document which it shall in good faith reasonably believe to be genuine and to have been adopted or signed by the proper person or to have been prepared and furnished pursuant to any provision of this Agreement, and the Fiscal Agent shall not be under any duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument.
The Fiscal Agent shall not be liable for any error of judgment made in good faith by a responsible officer unless it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts.
No provision of this Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.
The Fiscal Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement at the request or direction of any of the Owners pursuant to this Agreement unless such Owners shall have offered to the Fiscal Agent reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
The Fiscal Agent may become the owner of the Bonds with the same rights it would have if it were not the Fiscal Agent.
Section 7.03. Information. The Fiscal Agent shall provide to the City such information relating to the Bonds and the funds and accounts maintained by the Fiscal Agent hereunder as the City shall reasonably request, including but not limited to quarterly statements reporting funds held and transactions by the Fiscal Agent.
Section 7.04. Notice to Fiscal Agent. The Fiscal Agent may rely and shall be protected in acting or refraining from acting upon any Officer’s Certificate, notice, resolution, request, consent, order, certificate, report, warrant, Bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties and given in accordance with the requirements hereof. The Fiscal Agent may execute any of the powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Fiscal Agent shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. The Fiscal Agent may consult with counsel, who may be counsel to the City, with regard to legal questions, and the opinion of such POLICY AND ACTION ITEM 8.4
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counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.
The Fiscal Agent shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed.
Whenever in the administration of its duties under this Agreement the Fiscal Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Fiscal Agent, be deemed to be conclusively proved and established by a certificate of the City, and such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.
Section 7.05. Compensation, Indemnification. The City shall pay to the Fiscal Agent, but only from Special Tax Revenues, from time to time reasonable compensation for all services rendered as Fiscal Agent under this Agreement, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of their attorneys, agents and employees, incurred in and about the performance of their powers and duties under this Agreement, but the Fiscal Agent shall not have a lien therefor on any funds at any time held by it under this Agreement. The City further agrees, to the extent permitted by applicable law, and only from Special Tax Revenues as the source of funds, to indemnify and save the Fiscal Agent, its officers, employees, directors and agents harmless against any costs, claims, expenses or liabilities, including, without limitation, fees and expenses of its attorneys which it may incur in the exercise and performance of its powers and duties hereunder which are not due to its negligence or willful misconduct. The obligation of the City under this Section shall survive resignation or removal of the Fiscal Agent under this Agreement and payment of the Bonds and discharge of this Agreement.
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ARTICLE VIII
MODIFICATION OR AMENDMENT OF THIS AGREEMENT
Section 8.01. Amendments Permitted. This Agreement and the rights and obligations of the City and of the Owners of the Bonds may be modified or amended at any time by a Supplemental Agreement pursuant to the affirmative vote at a meeting of Owners, or with the written consent without a meeting, of the Owners of at least 60% in aggregate principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section 8.04. No such modification or amendment shall (i) extend the maturity of any Bond or reduce the interest rate thereon, or otherwise alter or impair the obligation of the City to pay the principal of, and the interest and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii) permit the creation by the City of any pledge or lien upon the Special Taxes superior to or on a parity with the pledge and lien created for the benefit of the Bonds (except as otherwise permitted by the Act, the laws of the State of California or this Agreement), or reduce the percentage of Bonds required for the amendment hereof. No such amendment may modify any of the rights or obligations of the Fiscal Agent without its written consent.
This Agreement and the rights and obligations of the City and of the Owners may also be modified or amended at any time by a Supplemental Agreement, without the consent of any Owners, only to the extent permitted by law and only for any one or more of the following purposes:
(A) to add to the covenants and agreements of the City in this Agreement contained, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the City; (B) to make modifications not adversely affecting any outstanding series of Bonds of the City in any material respect;
(C) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Agreement, or in regard to questions arising under this Agreement, as the City and the Fiscal Agent may deem necessary or desirable, and which shall not adversely affect the rights of the Owners of the Bonds; or
(D) to make such additions, deletions or modifications as may be necessary or desirable to assure compliance with Section 148 of the Code relating to required rebate of excess investment earnings to the United States or otherwise as may be necessary to assure exclusion from gross income for federal income tax purposes of interest on the Bonds or to conform with the Regulations; (E) to facilitate the issuance of Additional Bonds, to the extent permitted by Section 5.17.
Section 8.02. Owners’ Meetings. The City may at any time call a meeting of the Owners.
In such event the City is authorized to fix the time and place of said meeting and to provide for the giving of notice thereof and to fix and adopt rules and regulations for the conduct of said meeting.
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Section 8.03. Procedure for Amendment with Written Consent of Owners. The City and the Fiscal Agent may at any time enter into a Supplemental Agreement amending the provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent that such amendment is permitted by Section 8.01, to take effect when and as provided in this Section. A copy of such Supplemental Agreement, together with a request to Owners for their consent thereto, if such consent is required under Section 8.01, shall be mailed by first class mail, by the Fiscal Agent to each Owner of Bonds Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not affect the validity of the Supplemental Agreement when assented to as in this Section provided.
If consent of the Owners is required under Section 8.01, such Supplemental Agreement shall not become effective unless there shall be filed with the Fiscal Agent the written consents of the Owners of at least 60% in aggregate principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as provided in Section 8.04) and a notice shall have been mailed as hereinafter in this Section provided. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 9.04. Any such consent shall be binding upon the Owner of the Bonds giving such consent and on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing such revocation with the Fiscal Agent prior to the date when the notice hereinafter in this Section provided for has been mailed.
After the Owners of the required percentage of Bonds shall have filed their consents to the Supplemental Agreement, the City shall mail a notice to the Owners in the manner hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in substance that the Supplemental Agreement has been consented to by the Owners of the required percentage of Bonds and will be effective as provided in this Section (but failure to mail copies of said notice shall not affect the validity of the Supplemental Agreement or consents thereto). Proof of the mailing of such notice shall be filed with the Fiscal Agent. A record, consisting of the papers required by this Section 8.03 to be filed with the Fiscal Agent, shall be proof of the matters therein stated until the contrary is proved. The Supplemental Agreement shall become effective upon the filing with the Fiscal Agent of the proof of mailing of such notice, and the Supplemental Agreement shall be deemed conclusively binding (except as otherwise herein above specifically provided in this Article) upon the City and the Owners of all Bonds at the expiration of 60 days after such filing, except in the event of a final decree of a court of competent jurisdiction setting aside such consent in a legal action or equitable proceeding for such purpose commenced within such 60-day period.
Section 8.04. Disqualified Bonds. Bonds owned or held for the account of the City, excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of any vote, consent or other action or any calculation of Outstanding Bonds provided for in this Article VIII, and shall not be entitled to vote upon, consent to, or take any other action provided for in this Article VIII. Upon request, the City shall provide an Officer’s Certificate to the Fiscal Agent listing those Bonds which are disqualified pursuant to this Section 8.04.
Section 8.05. Effect of Supplemental Agreement. From and after the time any Supplemental Agreement becomes effective pursuant to this Article VIII, this Agreement shall be deemed to be modified and amended in accordance therewith, the respective rights, duties and obligations under this Agreement of the City and all Owners of Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such Supplemental POLICY AND ACTION ITEM 8.4
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Agreement shall be deemed to be part of the terms and conditions of this Agreement for any and all purposes.
Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments. The City may determine that Bonds issued and delivered after the effective date of any action taken as provided in this Article VIII shall bear a notation, by endorsement or otherwise, in form approved by the City, as to such action. In that case, upon demand of the Owner of any Bond Outstanding at such effective date and presentation of his Bond for that purpose at the Principal Office of the Fiscal Agent or at such other office as the City may select and designate for that purpose, a suitable notation shall be made on such Bond. The City may determine that new Bonds, so modified as in the opinion of the City is necessary to conform to such Owners’ action, shall be prepared, executed and delivered. In that case, upon demand of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at the Principal Office of the Fiscal Agent without cost to any Owner, for Bonds then Outstanding, upon surrender of such Bonds.
Section 8.07. Amendatory Endorsement of Bonds. The provisions of this Article VIII shall not prevent any Owner from accepting any amendment as to the particular Bonds held by him, provided that due notation thereof is made on such Bonds.
Section 8.08. Opinion of Counsel Regarding Supplemental Agreement. The Fiscal Agent shall be furnished an opinion of counsel that any Supplemental Agreement entered into by the City and the Fiscal Agent complies with the provisions of this Article VIII, and the Fiscal Agent may conclusively rely upon such opinion.
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ARTICLE IX
MISCELLANEOUS
Section 9.01. Benefits of Agreement Limited to Parties. Nothing in this Agreement expressed or implied, is intended to give to any person other than the City, the Fiscal Agent and the Owners, any right, remedy, claim under or by reason of this Agreement. Any covenants, stipulations, promises or agreements in this Agreement contained by and on behalf of the City shall be for the sole and exclusive benefit of the Owners and the Fiscal Agent.
Section 9.02. Successor is Deemed Included in All References to Predecessor.
Whenever in this Agreement or any Supplemental Agreement either the City or the Fiscal Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Agreement contained by or on behalf of the City or the Fiscal Agent shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not.
Section 9.03. Discharge of Agreement. If the City shall pay and discharge the entire indebtedness on all or any portion of the Bonds Outstanding in any one or more of the following ways:
(A) by well and truly paying or causing to be paid the principal of, and interest and any premium on, such Bonds Outstanding, as and when the same become due and payable;
(B) by depositing with the Fiscal Agent or other fiduciary, at or before maturity, money which, together with (in the event that all of the Bonds are to be defeased) the amounts then on deposit in the funds and accounts provided for in Sections 4.02 and
4.03, is fully sufficient to pay such Bonds Outstanding, including all principal, interest and redemption premiums; or
(C) by irrevocably depositing with the Fiscal Agent or other fiduciary, cash and Federal Securities in such amount as the City shall determine as confirmed by an independent certified public accountant will, together with the interest to accrue thereon and (in the event that all of the Bonds are to be defeased) moneys then on deposit in the fund and accounts provided for in Sections 4.02 and 4.03, be fully sufficient to pay and discharge the indebtedness on such Bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates; and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been given as in this Agreement provided or provision satisfactory to the Fiscal Agent shall have been made for the giving of such notice, then, at the election of the City, and notwithstanding that any Bonds shall not have been surrendered for payment, the pledge of the Special Taxes and other funds provided for in this Agreement and all other obligations of the City under this Agreement with respect to such Bonds Outstanding shall cease and terminate, except only the obligations of the City under Section 5.13 and to pay or cause to be paid to the Owners of the Bonds not so surrendered and paid all sums due thereon and all amounts owing to the Fiscal Agent pursuant to Section 7.05; and thereafter Special Taxes shall not be payable to the Fiscal Agent. Notice of such election shall be filed with the Fiscal Agent.
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Any funds thereafter held by the Fiscal Agent upon payments of all fees and expenses of the Fiscal Agent, which are not required for said purpose, shall be paid over to the City.
Section 9.04. Execution of Documents and Proof of Ownership by Owners. Any request, declaration or other instrument which this Agreement may require or permit to be executed by Owners may be in one or more instruments of similar tenor, and shall be executed by Owners in person or by their attorneys appointed in writing.
Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, consent, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer.
Except as otherwise herein expressly provided, the ownership of registered Bonds and the amount, maturity, number and date of holding the same shall be proved by the registry books.
Any request, consent, declaration or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond in respect of anything done or suffered to be done by the City or the Fiscal Agent in good faith and in accordance therewith.
Section 9.05. Waiver of Personal Liability. No member, officer, agent or employee of the City shall be individually or personally liable for the payment of the principal of, or interest or any premium on, the Bonds; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law.
Section 9.06. Notices to and Demands on City and Fiscal Agent. Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the Fiscal Agent to or on the City may be given or served by being deposited postage prepaid in a post office letter box, by overnight courier or by facsimile (with receipt confirmed by telephone) addressed (until another address is filed by the City with the Fiscal Agent) as follows:
City of Mountain House
251 E Main Street
Mountain House, California 95391
Attention: City Clerk
Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the City to or on the Fiscal Agent may be given or served by being deposited postage prepaid in a post office letter box, by overnight courier or by facsimile (with receipt confirmed by telephone) addressed (until another address is filed by the Fiscal Agent with the City) as follows:
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Computershare Trust Company, N.A.
1505 Energy Park Drive
St. Paul, Minnesota 55108
Section 9.07. Partial Invalidity. If any Section, paragraph, sentence, clause or phrase of this Agreement shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Agreement. The City hereby declares that it would have adopted this Agreement and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of the fact that any one or more Sections, paragraphs, sentences, clauses, or phrases of this Agreement may be held illegal, invalid or unenforceable.
Section 9.08. Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any moneys held by the Fiscal Agent in trust for the payment and discharge of the principal of, and the interest and any premium on, the Bonds which remains unclaimed for two (2) years after the date when the payments of such principal, interest and premium have become payable, if such moneys was held by the Fiscal Agent at such date, shall be repaid by the Fiscal Agent to the City as its absolute property free from any trust, and the Fiscal Agent shall thereupon be released and discharged with respect thereto and the Bond Owners shall look only to the City for the payment of the principal of, and interest and any premium on, such Bonds.
Section 9.09. Applicable Law. This Agreement shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California.
Section 9.10. Conflict with Act. In the event of a conflict between any provision of this Agreement with any provision of the Act as in effect on the Closing Date, the provision of the Act shall prevail over the conflicting provision of this Agreement.
Section 9.11. Conclusive Evidence of Regularity. Bonds issued pursuant to this Agreement shall constitute conclusive evidence of the regularity of all proceedings under the Act relative to their issuance and the levy of the Special Taxes.
Section 9.12. Payment on Business Day. In any case where the date of the maturity of interest or of principal (and premium, if any) of the Bonds or the date fixed for redemption of any Bonds or the date any action is to be taken pursuant to this Agreement is other than a Business Day, the payment of interest or principal (and premium, if any) or the action need not be made on such date but may be made on the next succeeding day which is a Business Day with the same force and effect as if made on the date required and no interest shall accrue for the period from and after such date.
Section 9.13. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. The exchange of copies of this Agreement and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Agreement as to the parties hereto and may be used in lieu of the original Agreement and signature pages for all purposes.
Section 9.14. U.S.A. Patriot Act. The City and the District acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Fiscal Agent, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to POLICY AND ACTION ITEM 8.4
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obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Fiscal Agent. The City and the District agree that they will provide the Fiscal Agent with such information as it may request in order for the Fiscal Agent to satisfy the requirements of the U.S.A. Patriot Act.
[Signature Page Follows]
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its name and the Fiscal Agent has caused this Agreement to be executed in its name, all as of June 1, 2025.
CITY OF MOUNTAIN HOUSE, for itself and on
behalf of its MOUNTAIN HOUSE COMMUNITY
FACILITIES DISTRICT NO. 2024-1 (PUBLIC
FACILITIES AND SERVICES)
By:
City Manager
COMPUTERSHARE TRUST COMPANY, N.A.,
as Fiscal Agent
By:
Authorized Officer
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
EXHIBIT A
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
No. ___ ***$__________***
IMPROVEMENT AREA NO. 6 OF
CITY OF MOUNTAIN HOUSE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC FACILITIES AND SERVICES)
SPECIAL TAX BONDS SERIES 2025
INTEREST RATE: MATURITY DATE: BOND DATE: CUSIP:
% September 1, 20__ _________, 2025
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: ***______________ DOLLARS***
The City of Mountain House (the “City”) for and on behalf of its City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “District”) for Improvement Area No. 6 of the District, for value received, hereby promises to pay solely from the Special Tax (as hereinafter defined) or amounts in certain funds and accounts held under the Agreement (as hereinafter defined), to the Registered Owner named above, or registered assigns (the “Owner”), on the Maturity Date set forth above, unless redeemed prior thereto as hereinafter provided, the Principal Amount set forth above, and to pay interest on such principal amount from the Bond Date shown above, or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, semiannually on March 1 and September 1, commencing September 1, 2025 (the “Interest Payment Dates”), at the Interest Rate set forth above, until the principal amount hereof is paid or made available for payment. The principal of this Bond is payable to the Owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at the principal corporate trust office of Computershare Trust Company, N.A. in St. Paul, Minnesota (the “Fiscal Agent”). Interest on this Bond shall be paid by check of the Fiscal Agent mailed by first class mail on each Interest Payment Date to the Owner hereof as of the close of business on the 15th day of the month preceding the month in which the Interest Payment Date occurs (the “Record Date”) at such Owner’s address as it appears on the registration books maintained by the Fiscal Agent, or by wire transfer made on such Interest Payment Date upon written instructions delivered to the Fiscal Agent by the applicable Record Date of any Owner of $1,000,000 or more in aggregate principal amount of Bonds.
This Bond is one of a duly authorized issue of bonds approved by resolution of the City Council of the City on February 12, 2025 (the “Resolution”), pursuant to the Mello-Roos POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
Community Facilities Act of 1982, as amended, Sections 53311, et seq., of the California Government Code (the “Mello-Roos Act”) for the purpose of providing moneys for the construction and acquisition of improvements for the District, and is one of the bonds designated “Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) Special Tax Bonds Series 2025” (the “Bonds”). The issuance of the Bonds and the terms and conditions thereof are provided for by a Fiscal Agent Agreement, dated as of June 1, 2025, by and between the City and the Fiscal Agent (the “Agreement”) and this reference incorporates the Agreement herein, and by acceptance hereof the Owner of this Bond assents to said terms and conditions. The Agreement is authorized under, this Bond is issued under and both are to be construed in accordance with, the laws of the State of California. Capitalized terms used but not defined herein are defined in the Agreement.
Pursuant to the Mello-Roos Act, the Agreement and the Resolution, the principal of and interest on this Bond are payable solely from the “Special Tax Revenues,” being the proceeds of the facilities special taxes annually received by the City for Improvement Area No. 6 (the “Special Taxes”), excluding any interest and penalties thereon collected in connection with delinquent Special Taxes, less an amount equal to the Administrative Expense Priority, including all scheduled payments and delinquent payments thereof, and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes, and certain funds held under the Agreement.
Interest on this Bond shall be payable from the Interest Payment Date next preceding the date of authentication hereof, unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (ii) such date of authentication is after a Record Date but on or prior to an Interest Payment Date, in which event interest will be payable from such Interest Payment Date, or (iii) such date of authentication is prior to the first Record Date, in which event interest will be payable from the Bond Date shown above; provided however, that if at the time of authentication of this Bond, interest is in default hereon, this Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment hereon.
Any tax for the payment hereof shall be limited to the Special Tax, except to the extent that provision for payment has been made by the City as may be permitted by law. The Bonds do not constitute obligations of the City for which the City is obligated to levy or pledge, or has levied or pledged, general or special taxation other than described herein above.
The Bonds are subject to optional redemption from any source of available funds (other than prepayments of the Special Tax by property owners), in whole or in part among maturities as specified by the City and by lot within a maturity, on any date on and after September 1, 2031 at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:
Redemption Dates
Redemption
Price
September 1, 2031 through August 31, 2032 103%
September 1, 2032 through August 31, 2033 102
September 1, 2033 through August 31, 2034 101
September 1, 2034 and any date thereafter 100
The Bonds are subject to mandatory redemption from prepayments of the Special Tax by property owners, in whole or in part among maturities as shall be specified by the City and by lot POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
within a maturity, on any Interest Payment Date at the following respective redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), plus accrued interest thereon to the date of redemption:
Redemption Dates
Redemption
Price
September 1, 2025 through and including March 1, 2032 103% September 1, 2032 and March 1, 2033 102
September 1, 2033 and March 1, 2034 101
September 1, 2034 and any Interest Payment Date thereafter 100 The Bonds 2030, September 1, 2035, September 1, 2040, September 1, 2045, September 1, 2050 and September 1, 2055 are subject to mandatory sinking payment redemption in part on September 1, 2026, September 1, 2031, September 1, 2036, September 1, 2041, September 1, 2046 and September 1, 2051, respectively, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following tables:
Term Bonds Maturing September 1, 2030
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2026
2027
2028
2029
2030 (maturity)
Term Bonds Maturing September 1, 2035
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2031
2032
2033
2034
2035 (maturity)
Term Bonds Maturing September 1, 2040
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2036
2037
2038
2039
2040 (maturity)
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
Term Bonds Maturing September 1, 2045
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2041
2042
2043
2044
2045 (maturity)
Term Bonds Maturing September 1, 2050
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2046
2047
2048
2049
2050 (maturity)
Term Bonds Maturing September 1, 2055
Sinking Fund
Redemption Date
(September 1)
Sinking Fund
Payment
2051
2052
2053
2054
2055 (maturity)
The amounts in the foregoing tables shall be reduced pro rata at the direction of the City in an Officer’s Certificate, in order to maintain substantially uniform debt service, as a result of any prior partial redemption of the Bonds.
Notice of redemption with respect to the Bonds to be redeemed shall be given to the Owners thereof, in the manner, to the extent and subject to the provisions of the Agreement.
This Bond shall be registered in the name of the Owner hereof, as to both principal and interest. Each registration and transfer of registration of this Bond shall be entered by the Fiscal Agent in books kept by it for this purpose and authenticated by its manual signature upon the certificate of authentication endorsed hereon.
No transfer or exchange hereof shall be valid for any purpose unless made by the registered owner, by execution of the form of assignment endorsed hereon, and authenticated as herein provided, and the principal hereof, interest hereon and any redemption premium shall be payable only to the registered owner or to such Owner’s order. The Fiscal Agent shall require the Owner requesting transfer or exchange to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange. No transfer or exchange hereof shall be required to be made (i) within 15 days prior to the date established by the Fiscal Agent for selection of Bonds for redemption or (ii) with respect to a Bond after such Bond has been selected for redemption.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
The Agreement and the rights and obligations of the City thereunder may be modified or amended as set forth therein. The principal of the Bonds is not subject to acceleration upon a default under the Agreement or any other document.
This Bond shall not become valid or obligatory for any purpose until the certificate of authentication hereon endorsed shall have been dated and manually signed by the Fiscal Agent.
It is hereby certified, recited and declared that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond have existed, happened and been performed in due time, form and manner as required by law, and that the amount of this Bond, together with all other indebtedness of the City, does not exceed any debt limit prescribed by the laws or Constitution of the State of California.
Unless this Bond is presented by an authorized representative of The Depository Trust Company to the Fiscal Agent for registration of transfer, exchange or payment, and any Bond issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
IN WITNESS WHEREOF, the City of Mountain House has caused this Bond to be executed in its name by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk.
CITY OF MOUNTAIN HOUSE
By:
Mayor
Attested:
By:
City Clerk
FISCAL AGENT’S CERTIFICATE OF AUTHENTICATION
This is one of the Bonds described in the Resolution and the Agreement.
Dated: _____________, 2025
COMPUTERSHARE TRUST COMPANY, N.A.,
as Fiscal Agent
By:
Authorized Officer
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
FORM OF ASSIGNMENT
FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer unto (Name, address and Tax Identification Number of Assignee) the within-mentioned registered Bond and hereby irrevocably constitute(s) and appoint(s) attorney,
to transfer the same on the registration books of the Fiscal Agent with full power of substitution in the premises.
Dated: ________________
Signature Guaranteed:
NOTE: Signature(s) must be guaranteed by an eligible
guarantor institution with membership in an approved
signature guarantee medallion program pursuant to
Securities and Exchange Commission Rule 17A(d)15.
NOTE: The signature(s) on this Assignment must
correspond with the name(s) as written on the face
of the within Bond in every particular without
alteration or enlargement or any change whatsoever.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 1
Item 8.4
Jones Hall Draft 4.28.25
PRELIMINARY OFFICIAL STATEMENT DATED _________, 2025
NEW ISSUE–FULL BOOK ENTRY NOT RATED
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to certain qualifications described herein, under existing law, the interest on the 2025 Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. Interest on the Bonds may be subject to the corporate alternative minimum tax. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See “TAX MATTERS” herein.
$9,010,000*
IMPROVEMENT AREA NO. 6 OF
CITY OF MOUNTAIN HOUSE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC FACILITIES AND SERVICES)
SPECIAL TAX BONDS
SERIES 2025
Dated: Date of Delivery Due: September 1, as shown on inside cover The bonds captioned above (the “2025 Bonds”), are being issued by the City of Mountain House (the “City”) by and through Improvement Area No. 6 (“Improvement Area No. 6”) of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “District”). The 2025 Bonds are special tax obligations of the City, authorized pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being California Government Code Section 53311, et seq. (the “Act”), and are issued pursuant to the Resolution of Issuance (as defined herein) and a Fiscal Agent Agreement dated as of June 1, 2025, (the “Fiscal Agent Agreement”) by and between the City and Computershare Trust Company, N.A., as fiscal agent (the “Fiscal Agent”). The 2025 Bonds are being issued to (i) construct and/or acquire certain authorized public facilities, including through the payment of impact fees, (ii) provide for a deposit to a debt service reserve fund for the 2025 Bonds, (iii) pay capitalized interest on the 2025 Bonds through and including September 1, 2025 and (iv) pay costs of issuance of the 2025 Bonds. Interest on the 2025 Bonds is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2025. See “THE BONDS – Authority for Issuance.”
The 2025 Bonds are being issued as fully registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”), and will be available to ultimate purchasers in the denomination of $5,000 or any integral multiple thereof, under the book-entry system maintained by DTC. See “APPENDIX G – DTC AND THE BOOK-ENTRY ONLY SYSTEM.” The 2025 Bonds are secured by and payable from a pledge of Special Tax Revenues (as defined herein) derived from Special Taxes (derived from the levy of Facilities Special Taxes, both as defined herein) to be levied by the City on real property within Improvement Area No. 6, from the proceeds of any foreclosure actions brought following a delinquency in the payment of the Special Taxes, and from amounts held in certain funds under the Fiscal Agent Agreement, all as more fully described herein. Unpaid Special Taxes do not constitute a personal indebtedness of the owners of the parcels within Improvement Area No. 6. In the event of delinquency, proceedings may be conducted only against the parcel of real property securing the delinquent Special Tax. There is no assurance the owners will be able to pay the Special Tax or that they will pay a Special Tax even though financially able to do so. To provide funds for payment of the 2025 Bonds and the interest thereon as a result of any delinquent Special Taxes, the City will establish a debt service reserve fund for the 2025 Bonds from proceeds of the 2025 Bonds, as described herein. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.” Property currently in Improvement Area No. 6 and subject to the Special Tax is comprised of 188 residential lots currently expected to be developed by Pulte Home Company, LLC as described herein. Homebuilding commenced in ______20__. See “IMPROVEMENT AREA NO. 6 PLANNED DEVELOPMENT.”
The 2025 Bonds are subject to optional and mandatory redemption prior to maturity as described herein. See “THE BONDS – Redemption.”
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE COUNTY OF SAN JOAQUIIN, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE 2025 BONDS. THE 2025 BONDS DO NOT CONSTITUTE A DEBT OF THE CITY WITHIN THE MEANING OF ANY STATUTORY OR CONSTITUTIONAL DEBT LIMITATION. THE INFORMATION SET FORTH IN THIS OFFICIAL STATEMENT, INCLUDING INFORMATION UNDER THE HEADING “SPECIAL RISK FACTORS,” SHOULD BE READ IN ITS ENTIRETY.
This cover page contains certain information for general reference only. It is not a summary of all of the provisions of the 2025 Bonds.
Prospective investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision.
See “SPECIAL RISK FACTORS” herein for a discussion of the special risk factors that should be considered, in addition to the other matters and risk factors set forth herein, in evaluating the investment quality of the 2025 Bonds.
The 2025 Bonds are offered when, as and if issued, subject to approval as to their legality by Jones Hall, a Professional Law Corporation, San Francisco, California, Bond Counsel. Certain legal matters will also be passed on by Jones Hall, as Disclosure Counsel, Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, as counsel to the Underwriter. Certain legal matters will be passed upon for the City by the City Attorney. It is anticipated that the 2025 Bonds will be available for delivery to DTC on or about _______, 2025. [Piper Sandler logo]
The date of this Official Statement is ____________, 2025. _______________ * Preliminary; subject to change.
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
IMPROVEMENT AREA NO. 6 OF
CITY OF MOUNTAIN HOUSE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC FACILITIES AND SERVICES)
SPECIAL TAX BONDS
SERIES 2025
MATURITY SCHEDULE
Maturity
(Sept. 1)
Principal
Amount
Interest
Rate Yield Price
CUSIP†
(______)
$__________ _____% Term Bond Due September 1, 20___; Yield ____%; Price: ____% CUSIP†: _________
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright (c) 2025 CUSIP Global Services.
All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the City, the Underwriter, the Municipal Advisor, or their agents or counsel take any responsibility for the accuracy of such numbers.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
CITY OF MOUNTAIN HOUSE, CALIFORNIA
City Council
Andy Su, Mayor
Bernice King Tingle, Vice Mayor
Matt Disko, Council Member
Ronna Green, Council Member
Dan Harrison, Council Member
City Staff
Steven J. Pinkerton, City Manager
Jodi Almassy, Deputy City Manager
Sarah Ragsdale, Administrative Services Director
Thomas Retchless, Finance Director
Margaret Wimberly, City Clerk
City Attorney
John Bakker
Redwood Public Law
____________________________
SPECIAL SERVICES
Bond Counsel and Disclosure Counsel
Jones Hall, A Professional Law Corporation
San Francisco, California
Municipal Advisor
Kosmont Financial Services
El Segundo, California
Special Tax Consultant and Administrator
Goodwin Consulting Group, Inc.
Sacramento, California
Appraiser
Integra Realty Resources
Sacramento, California
Fiscal Agent
Computershare Trust Company, N.A.
San Francisco, California
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
Use of Official Statement. This Official Statement is submitted in connection with the sale of the 2025 Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not to be construed as a contract with the purchasers of the 2025 Bonds.
Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure by the City, in any press release and in any oral statement made with the approval of an authorized officer of the City, the words or phrases “will likely result,” “are expected to”, “will continue”, “is anticipated”, “estimate”, “project,” “forecast”, “expect”, “intend” and similar expressions identify “forward looking statements.” Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, give rise to any implication that there has been no change in the affairs of the City since the date hereof.
Limit of Offering. No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representations in connection with the offer or sale of the 2025 Bonds other than those contained herein and if given or made, such other information or representation must not be relied upon as having been authorized by the City or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the 2025 Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.
Involvement of Underwriter. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, their responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. All summaries of the documents referred to in this Official Statement are made subject to the provisions of such documents, respectively, and do not purport to be complete statements of any or all of such provisions.
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR
EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 2025 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
THE 2025 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXCEPTION FROM THE REGISTRATION REQUIREMENTS CONTAINED IN SUCH ACT. THE 2025 BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
TABLE OF CONTENTS
Page Page
INTRODUCTION ........................................ 1 SOURCES AND USES OF FUNDS ........... 6
THE BONDS............................................... 7 Authority for Issuance.............................. 7
Description of the Bonds ......................... 7
Redemption*............................................ 9 Transfer or Exchange of Bonds.............11
SECURITY AND SOURCES OF
PAYMENT FOR THE BONDS...............12
Special Taxes........................................12 Special Tax Methodology ......................13
Levy of Annual Special Tax; Maximum
Special Tax........................................16
Special Tax Fund...................................17
Delinquent Payments of Special Tax;
Covenant for Superior Court
Foreclosure........................................17
Reserve Fund........................................20
Improvement Fund ................................21
No Additional Bonds Except for
Refunding ..........................................22
DEBT SERVICE SCHEDULE...................23
THE CITY..................................................25 IMPROVEMENT AREA NO. 6 ..................26
Development of the Mountain House
Community.........................................26
Development in Improvement Area No. 6
...........................................................27 Utilities...................................................37
OWNERSHIP OF PROPERTY WITHIN
IMPROVEMENT AREA NO. 6.........Error!
Bookmark not defined.
VALUE OF PROPERTY WITHIN
IMPROVEMENT AREA NO. 6 ...............38
Assessed Valuation...............................38
The Appraisal ........................................38 Value to Special Tax Burden Ratios......41
Special Tax Collections and
Delinquencies ....................................45
Overlapping Liens and Priority of Lien...45
Estimated Overall Tax Burden...............47
SPECIAL RISK FACTORS .......................48
Limited Obligation of the City to Pay Debt
Service...............................................48 Payment of Special Taxes is not a
Personal Obligation of the Property
Owners ..............................................48 Concentration of Ownership..................48
Appraised Values ..................................49
Property Values and Property
Development......................................49
Levy and Collection of Special Taxes....52
FDIC/Federal Government Interests in
Properties ..........................................54 Bankruptcy and Foreclosure Delays......55
Parity Taxes and Special Assessments;
Private Debt.......................................56
Tax Delinquencies................................. 57
No Acceleration Provisions....................58
Ballot Initiatives......................................58 Voter Initiatives......................................58 Case Law Related to the Mello-Roos Act59
Exempt Properties................................. 60
Public Health Emergencies .............Error!
Bookmark not defined.
Cyber Security.......................................61 Secondary Market for the Bonds...........61
Potential Early Redemption of Bonds
from Prepayments .............................62
CONSTITUTIONAL LIMITATIONS ON
TAXATION AND APPROPRIATIONS...63
TAX MATTERS.........................................63
LEGAL OPINION ......................................65
NO RATINGS............................................65 NO LITIGATION........................................65 CONTINUING DISCLOSURE...................66
MUNICIPAL ADVISOR .............................67
UNDERWRITING......................................67
CONTINGENT FEES................................67
EXECUTION .............................................68 APPENDIX B – THE APPRAISAL
APPENDIX C – GENERAL DEMOGRAPHIC INFORMATION ABOUT THE MOUNTAIN HOUSE AREA APPENDIX D – FORM OF OPINION OF BOND COUNSEL
APPENDIX E – FORM OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX F – SUMMARY OF CERTAIN PROVISIONS OF FISCAL AGENT AGREEMENT APPENDIX G – DTC AND THE BOOK-ENTRY ONLY SYSTEM
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
1 OFFICIAL STATEMENT
$9,010,000*
IMPROVEMENT AREA NO. 6 OF
CITY OF MOUNTAIN HOUSE
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(PUBLIC FACILITIES AND SERVICES)
SPECIAL TAX BONDS
SERIES 2025
This Official Statement, including the cover page and all Appendices hereto, is provided to furnish certain information in connection with the issuance by the City of Mountain House (the “City”) by and through Improvement Area No. 6 (“Improvement Area No. 6”) of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services) (the “District”) of the bonds captioned above (the “2025 Bonds”).
Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Definitions of certain terms used herein and not defined herein have the meaning set forth in the Fiscal Agent Agreement. See APPENDIX F.
INTRODUCTION
This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and attached appendices, and the documents summarized or described in this Official Statement. A full review should be made of the entire Official Statement. The offering of the 2025 Bonds to potential investors is made only by means of the entire Official Statement.
The City. The City was incorporated by vote of its citizens at an election held on March 5, 2024, becoming the 483rd incorporated city admitted to the State of California in July 2024. As part of the incorporation process, the District, which had been formed by the City’s predecessor, Mountain House Community Services District, officially became a community facilities district of the City with the City Council as its legislative body.
The City is located in the unincorporated area of San Joaquin County (the “County”), north of Interstate 205, east of the Alameda County line and west of Mountain House Parkway approximately 6 miles northwest of the City of Tracy and west of the City of Lathrop. Regional access to the community is from Interstate 205, along the City’s southern boundary. Local access is via Grant Line Road and Byron Road, which traverse the community, and Mountain House __________
* Preliminary; subject to change.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
2 Parkway along the eastern boundary. For economic and demographic information regarding the area in and around the City, see “APPENDIX C – GENERAL DEMOGRAPHIC INFORMATION ABOUT THE MOUNTAIN HOUSE AREA.”
The District and Improvement Areas. On February 14, 2024, the Board of Directors of the Mountain House Community Services District, as the then-legislative body for the District, adopted a Resolution of Intention to form the District, and designate five improvement areas therein under the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to levy a special tax for facilities and services (as to the facilities component, the “Facilities Special Tax,” also referred to herein as the “Special Tax”) and to incur bonded indebtedness for the purpose of financing certain authorized public facilities. After conducting a noticed public hearing, on April 10, 2024, the Board adopted a Resolution of Formation (the “Resolution of Formation”), which established the District, designated Improvement Area Nos. 1-5 as improvement areas therein, and designated a future annexation area for the District (the “Future Annexation Area”) Upon incorporation of the City in July 2024, the District officially became a community facilities district of the City with the City Council of the City (the “City Council”) as its legislative body.
In late 2024 and early 2025 four additional improvement areas were annexed into the District from the Future Annexation Area at the request of homebuilders: Pulte Home Company, LLC, a Michigan limited liability company (“Improvement Area No. 6”) (described herein), Tri Pointe Homes Holdings, Inc., a Delaware corporation (Improvement Area No. 7), Lennar Homes of California, LLC, a California limited liability company (Improvement Area No. 8) and Richmond American Homes of Maryland, Inc., a Maryland corporation (Improvement Area No. 9).
The City issued special tax bonds for Improvement Area No. 1 on March 13, 2025. Bond issuances for the various improvement areas are planned to be separate and independent, bond issuances are not expected to be pooled. Only the land in Improvement Area No. 6, as described herein, is and will be security for the 2025 Bonds.
The Mountain House Community. Prior to incorporation of the City, much of the land which is within the boundary of the formerly unincorporated Mountain House community and now newly established City had been undergoing substantial residential development. Homebuilding began in 2001 and as of the end of 2024, approximately 8,000 homes are now within the City.
Homebuilding continues to the present, with significant land holdings still undeveloped and expected to primarily become residential neighborhoods as homebuilding continues.
The master developer of the District, Mountain House Developers, LLC, a Delaware limited liability company (the “Master Developer”) acquired the land in the District and Future Annexation Area between 2005 and 2007 for development and sale of finished lots to merchant builders. The Master Developer requested formation of the District.
The District is in a newly developing area of the City, primarily north of Byron Road.
Improvement Area Nos. 1 through 9 are planned for residential development and expected to collectively comprise approximately 5,471 lots. The District includes a Future Annexation Area zoned for various uses and not yet mapped for development.
Improvement Area No. 6. Effective January 6, 2025, Pulte Home Company, LLC, a Michigan limited liability company (“Pulte Homes”) and its land bank AG EHC II (PHM) CA 2, L.P., a Delaware limited partnership (the “Land Bank Owner”), as the qualified landownerPOLICY AND ACTION ITEM 8.4
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3 electors of a portion of the property within the Future Annexation Area, submitted unanimous approval forms to the City to officially establish “Improvement Area No. 6 of City of Mountain House Community Facilities District No. 2024-1 (Public Facilities and Services),” including to establish a bonded indebtedness limit for Improvement Area No. 6 of $17,600,000. The 2025 Bonds are the first series of bonds issued for Improvement Area No. 6 and additional bonds secured on parity with the 2025 Bonds may only be issued for refunding purposes.
Authority for Issuance of the 2025 Bonds. The 2025 Bonds are issued pursuant to the Act, a resolution adopted by the City Council on ____________, 2025 (the “Resolution of Issuance”) and a Fiscal Agent Agreement dated as of June 1, 2025 (the “Fiscal Agent Agreement”), between the City and Computershare Trust Company, N.A., as fiscal agent (the “Fiscal Agent”).
Bond Terms. The 2025 Bonds will be dated as of and bear interest from the date of delivery thereof at the rate or rates set forth on the cover page of this Official Statement. Interest on the 2025 Bonds is payable on March 1 and September 1 of each year (each an “Interest Payment Date”), commencing September 1, 2025. The 2025 Bonds will be issued without coupons in denominations of $5,000 or any integral multiple thereof.
Registration of Ownership of 2025 Bonds. The 2025 Bonds will be issued only as fully registered bonds in book-entry form, registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). Ultimate purchasers of 2025 Bonds will not receive physical certificates representing their interest in the 2025 Bonds. So long as the 2025 Bonds are registered in the name of Cede & Co., as nominee of DTC, references herein to the Owners will mean Cede & Co. and will not mean the ultimate purchasers of the 2025 Bonds. Payments of the principal, premium, if any, and interest on the 2025 Bonds will be made directly to DTC, or its nominee, Cede & Co. so long as DTC or Cede & Co. is the registered owner of the 2025 Bonds.
Disbursements of such payments to DTC’s Participants is the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of DTC’s Participants and Indirect Participants, as more fully described herein. See “APPENDIX G – DTC AND THE BOOK-ENTRY ONLY SYSTEM.”
Use of Proceeds. Proceeds of the 2025 Bonds will primarily be used to finance a portion of the cost of impact fees due the City as a condition of development. Proceeds of the impact fees will be used by the City to construct public capital improvements. The District is also authorized to finance the costs of acquiring and constructing certain authorized infrastructure improvements (together with impact fees, the “Improvements,” as described herein). The Improvements consist generally of roadway, water, wastewater, drainage, parks, and other infrastructure improvements.
Proceeds of the 2025 Bonds will also be deposited to a debt service reserve fund for the 2025 Bonds, and to pay costs of issuance and to pay capitalized interest through and including September 1, 2025.
Security and Source of Payment. As security for the payment of the 2025 Bonds, a facilities special tax (herein the “Special Tax”) applicable to each taxable parcel is being levied in Improvement Area No. 6. The 2025 Bonds and any Additional Bonds that may be issued in the future pursuant to the terms of the Fiscal Agent Agreement (collectively, the “Bonds”) are payable from the “Special Tax Revenues,” consisting of the proceeds of the Special Taxes annually received by the City, excluding any interest and penalties thereon collected in connection with delinquent Special Taxes, less an amount equal to the Administrative Expense Priority (described herein), including all scheduled payments and delinquent payments thereof, and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes, net POLICY AND ACTION ITEM 8.4
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4 of the administration charge of the County (currently at the lesser of 1% or $3 per parcel), but do not include any interest in excess of the interest due on the Bonds or any penalties collected in connection with any such foreclosure. The 2025 Bonds are also payable from amounts held in certain funds and accounts pursuant to the Fiscal Agent Agreement, including a debt service reserve fund, all as more fully described herein. Special taxes for certain public services will also be levied by the City within the District; only the facilities special tax component, herein referred to as the Special Tax, will be security for the 2025 Bonds.
Parcels in the District, including Improvement Area No. 6, are also subject to a special tax for services which is not security for the Bonds.
“Administrative Expense Priority” means (i) for Fiscal Year 2025-26, $35,000, and (ii) for each subsequent fiscal year, an amount equal to the preceding fiscal year’s Administrative Expense Priority plus an additional 2% of such amount.
Special Taxes will be levied and collected according to the facilities tax liability determined by the City Council through the application of the Rate and Method of Apportionment of Special Taxes for Improvement Area No. 6 (the “Rate and Method”). The Rate and Method is set forth in its entirety in APPENDIX A hereto. The Rate and Method includes a services special tax component which is not security for the 2025 Bonds. Pursuant to the Rate and Method, a “Facilities Special Tax” will be levied and collected until the earlier of (i) the “Transition Year” (defined herein) or (ii) Fiscal Year 2064-65, and a “Services Special Tax” will be levied and collected in perpetuity.
Only the “Facilities Special Tax” is pledged to the payment of the 2025 Bonds; the definition of “Special Taxes” used in the Fiscal Agent Agreement and this Official Statement refers only to the “Facilities Special Tax” levied in accordance with the Rate and Method. See “SECURITY AND SOURCES OF PAYMENT OF THE BONDS – Special Tax Methodology.” The Special Tax represents a lien on each parcel of land subject to the Special Tax, and failure to pay the Special Taxes could result in proceedings to foreclose the delinquent parcel.
The Special Taxes do not constitute the personal indebtedness of the owners of taxed parcels.
See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS.”
Reserve Fund. A debt service reserve fund has been established under the Fiscal Agent Agreement (the “Reserve Fund”) for the benefit of the holders of the 2025 Bonds. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Reserve Fund.” Estimated Value of Taxable Property. Taxable property in Improvement Area No. 6 is security for the Special Tax that secures the Bonds. The City authorized the preparation of an appraisal report (the “Appraisal”) for certain real property within Improvement Area No. 6, which sets forth an aggregate value of taxable property currently in Improvement Area No. 6 of $76,961,000, as of March 15, 2025. The appraised value is based on the hypothetical condition that certain impact fees to be reimbursed and financed by the 2025 Bonds have been paid, and accounts for the impact of the lien of the Special Tax on the value of the property. In considering the estimates of value evidenced by the Appraisal, it should be noted that the Appraisal is based upon a number of standard and special assumptions, which affect the estimates as to value. See “VALUE OF PROPERTY WITHIN IMPROVEMENT AREA NO. 6 – The Appraisal” and APPENDIX B.
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5 The estimated value of taxable property in Improvement Area No. 6 ($76,961,000) is 5.4* times the $14,161,139* aggregate principal amount of direct and overlapping bonded indebtedness in Improvement Area No. 6 (consisting of $9,010,000* for the 2025 Bonds). This is based on the entirety of Improvement Area No. 6, the value to lien ratio for individual parcels will vary from the average and overlapping debt of a local school district is expected to increase. See “VALUE OF PROPERTY WITHIN IMPROVEMENT AREA NO. 6 – Value to Special Tax Burden Ratios.”
Future Parity Bonds. The maximum authorized indebtedness for Improvement Area No. 6 is $17,400,000, and the 2025 Bonds represent the first series of special tax bonds issued under this authorization. Additional Bonds secured on parity with the 2025 Bonds may only be issued for refunding purposes.
Risks of Investment. See the section of this Official Statement entitled “SPECIAL RISK FACTORS” for a discussion of special factors that should be considered, in addition to the other matters set forth herein, in considering the investment quality of the 2025 Bonds. In particular, no assurance can be given that the timing of construction of homes and/or sale of homes projected by the Merchant Builders in this Official Statement will be accomplished. See “SPECIAL RISK FACTORS.”
Limited Obligation of the City. The general fund of the City is not liable and the full faith and credit of the City is not pledged for the payment of the interest on, or principal of or redemption premiums, if any, on the 2025 Bonds. The 2025 Bonds are not secured by a legal or equitable pledge of or charge, lien or encumbrance upon any property of the City or any of its income or receipts, except the money in the funds established and pledged to the 2025 Bonds under the Fiscal Agent Agreement, and neither the payment of the interest on nor principal of or redemption premiums, if any, on the 2025 Bonds is a general debt, liability or obligation of the City. The 2025 Bonds do not constitute an indebtedness of the City within the meaning of any constitutional or statutory debt limitation or restrictions, and neither the City Council, the City nor any officer or employee thereof are liable for the payment of the interest on or principal of or redemption premiums, if any, on the 2025 Bonds other than from the proceeds of the Special Taxes and the money in the funds established and pledged to the 2025 Bonds, as provided in the Fiscal Agent Agreement.
Summary of Information. Brief descriptions of certain provisions of the Fiscal Agent Agreement, the Bonds and certain other documents are included herein. The descriptions and summaries of documents herein do not purport to be comprehensive or definitive, and reference is made to each such document for the complete details of all its respective terms and conditions, copies of which are available for inspection at the office of the Chief Financial Officer of the City.
All statements herein with respect to certain rights and remedies are qualified by reference to laws and principles of equity relating to or affecting creditors’ rights generally. Capitalized terms used in this Official Statement and not otherwise defined herein have the meanings ascribed to such terms in the Fiscal Agent Agreement. The information and expressions of opinion herein speak only as of the date of this Official Statement and are subject to change without notice.
Neither delivery of this Official Statement, any sale made hereunder, nor any future use of this Official Statement shall, under any circumstances, create any implication that there have been no changes to the City or the land in Improvement Area No. 6 since the date hereof. Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so __________
* Preliminary; subject to change.
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6 expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized.
SOURCES AND USES OF FUNDS
A summary of the estimated sources and uses of funds associated with the sale of the 2025 Bonds follows:
Estimated Sources of Funds:
Principal Amount of 2025 Bonds $
Plus/Less: [Net] Original Issue Premium/Discount
Total $
Estimated Uses of Funds:
Deposit to Improvement Fund $
Deposit to Bond Fund(1)
Deposit to Reserve Fund(2)
Costs of Issuance(3)
Total $
(1) To pay capitalized interest on the 2025 Bonds through and including September 1, 2025. (2) Equal to the initial Reserve Requirement for the 2025 Bonds. (3) Includes fees of bond and disclosure counsel, fees, expenses and charges of the Fiscal Agent and its counsel, printing costs, fees of the special tax consultant and administrator, Appraiser, and Municipal Advisor, Underwriter’s discount, and other costs of issuance.
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7 THE BONDS
Authority for Issuance
On February 14, 2024, the Board of Directors of the Mountain House Community Services District, as the then-legislative body for the District, adopted a Resolution of Intention to form the District, and designate five improvement areas therein, including Improvement Area No. 6, under the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to levy a special tax (the “Facilities Special Tax,” also referred to herein as the “Special Tax”) and to incur bonded indebtedness for the purpose of financing certain authorized public facilities. After conducting a noticed public hearing, on April 10, 2024, the Board also adopted a Resolution of Formation (the “Resolution of Formation”), which established the District, designated Improvement Area Nos. 1-5 as improvement areas therein, and formed a future annexation area for the District (the “Future Annexation Area”) and authorized indebtedness in an amount not to exceed $1,830,700,000, initially allocated as follows: (i) for Improvement Area No. 1, $74,200,000, (ii) for Improvement Area No. 2, $122,000,000, (iii) for Improvement Area No. 3, $240,200,000, (iv) for Improvement Area No. 4, $264,500,000, (v) for Improvement Area No. 5, $63,400,000, and (vi) for the portion of the CFD that is not in Improvement Areas No. 1 through 5, $1,066,400,000.
Effective January 6, 2025, Pulte Homes and the Land Bank Owner, as the qualified landowner-electors of a portion of the property within the Future Annexation Area, submitted unanimous approval forms to the City to officially establish Improvement Area No. 6 and to establish a bonded indebtedness limit for Improvement Area No. 6 of $17,600,000 (excluding bonds described in Section 53364.2(e) of the Act). The 2025 Bonds are the first series of bonds to be issued for Improvement Area No. 6 and additional bonds secured on parity with the 2025 Bonds may only be issued for refunding purposes.
Upon incorporation of the City in July 2024, the District officially became a community facilities district of the City with the City Council of the City as its legislative body.
The 2025 Bonds are issued pursuant to the Act, a resolution adopted by the City Council on ______________, 2025 (the “Resolution of Issuance”) and the Fiscal Agent Agreement.
Description of the Bonds
Bond Terms. The 2025 Bonds will be dated as of and bear interest from the date of delivery thereof at the rates and mature in the amounts and years, as set forth on the cover page hereof. The 2025 Bonds are being issued in the denomination of $5,000 or any integral multiple thereof.
Interest on the 2025 Bonds will be payable semiannually on March 1 and September 1 of each year (each an “Interest Payment Date”), commencing September 1, 2025. The principal of the 2025 Bonds and premiums due upon the redemption thereof, if any, will be payable in lawful money of the United States of America at the designated principal corporate trust office of the Fiscal Agent in Los Angeles, California, or such other place as designated by the Fiscal Agent, upon presentation and surrender of the 2025 Bonds; provided that so long as any 2025 Bonds are in book-entry form, payments with respect to such 2025 Bonds will be made by wire transfer, or such other method acceptable to the Fiscal Agent, to DTC.
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8 Book-Entry Only System. The 2025 Bonds are being issued as fully registered bonds, registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), and will be available to ultimate purchasers under the book-entry system maintained by DTC.
Ultimate purchasers of 2025 Bonds will not receive physical certificates representing their interest in the 2025 Bonds. So long as the 2025 Bonds are registered in the name of Cede & Co., as nominee of DTC, references herein to the Owners will mean Cede & Co., and will not mean the ultimate purchasers of the 2025 Bonds. The Fiscal Agent will make payments of the principal, premium, if any, and interest on the 2025 Bonds directly to DTC, or its nominee, Cede & Co., so long as DTC or Cede & Co. is the registered owner of the 2025 Bonds. Disbursements of such payments to DTC’s Participants are the responsibility of DTC and disbursements of such payments to the Beneficial Owners are the responsibility of DTC’s Participants and Indirect Participants, as more fully described herein. See “APPENDIX G – DTC AND THE BOOK-ENTRY ONLY SYSTEM.”
Calculation and Payment of Interest. Interest on the 2025 Bonds will be computed on the basis of a 360-day year consisting of twelve 30-day months. Interest on the 2025 Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on each Interest Payment Date by first class mail to the registered Owner thereof at such registered Owner’s address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the 15th day of the month preceding the month in which the Interest Payment Date occurs whether or not such day is a Business Day (the “Record Date”) preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon written instructions received by the Fiscal Agent on or before the Record Date preceding the Interest Payment Date, of any Owner of $1,000,000 or more in aggregate principal amount of 2025 Bonds; provided that so long as any 2025 Bonds are in book-entry form, payments with respect to such 2025 Bonds will be made by wire transfer, or such other method acceptable to the Fiscal Agent, to DTC. See “APPENDIX G – DTC AND THE BOOK-ENTRY ONLY SYSTEM.”
Each 2025 Bond will bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it will bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it will bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it will bear interest from the Dated Date; provided, however, that if at the time of authentication of a 2025 Bond, interest is in default thereon, such 2025 Bond will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon.
So long as the 2025 Bonds are registered in the name of Cede & Co., as nominee of DTC, payments of the principal, premium, if any, and interest on the 2025 Bonds will be made directly to DTC, or its nominee, Cede & Co. Disbursements of such payments to DTC’s Participants are the responsibility of DTC and disbursements of such payments to the Beneficial Owners are the responsibility of DTC’s Participants and Indirect Participants, as more fully described herein. See “APPENDIX G – DTC AND THE BOOK-ENTRY ONLY SYSTEM.”
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9 Redemption*
Optional Redemption. The 2025 Bonds are subject to optional redemption from any source of available funds (other than Prepayments of the Special Tax by property owners), in whole or in part among maturities as specified by the City and by lot within a maturity, on any date on and after September 1, 20__ at the following respective redemption prices (expressed as percentages of the principal amount of the 2025 Bonds to be redeemed), plus accrued interest thereon to the date of redemption:
Redemption Dates
Redemption
Price
September 1, 20__ through August 31, 20__ 103%
September 1, 20__ through August 31, 20__ 102
September 1, 20__ through August 31, 20__ 101
September 1, 20__ and any date thereafter 100
Mandatory Redemption From Prepayments. The 2025 Bonds are subject to mandatory redemption from Prepayments of the Special Tax by property owners, in whole or in part among maturities of the 2025 Bonds and any Additional Bonds, as specified by the City, and by lot within a maturity, on any Interest Payment Date at the following respective redemption prices (expressed as percentages of the principal amount of the 2025 Bonds to be redeemed), plus accrued interest thereon to the date of redemption:
Redemption Dates
Redemption
Price
Interest Payment Dates through and including March 1, ____ 103% September 1, 20__ and March 1, 20__ 102
September 1, 20__ and March 1, 20__ 101
September 1, 20__ and any Interest Payment Date thereafter 100 The proceeds of any such prepayment shall be deposited in the Prepayment Account of the Bond Fund and applied by the Fiscal Agent to pay the redemption price of the Bonds.
See “SPECIAL RISK FACTORS – Potential Early Redemption of Bonds from Prepayments” for a discussion of the potential for the 2025 Bonds to be priced with original issue premium and then be redeemed from Special Tax prepayments prior to maturity.
Mandatory Sinking Fund Redemption. The Term 2025 Bonds maturing September 1, 20__ and September 1, 20__ are subject to mandatory sinking payment redemption in part on September 1, 20__ and September 1, 20__, respectively, and on each September 1 thereafter to maturity, by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts as set forth in the following tables:
__________
* Preliminary; subject to change.
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10 Term 2025 Bonds Maturing September 1, 20__
Mandatory
Redemption Date
(Sept. 1)
Sinking Fund
Payment
(maturity)
Term 2025 Bonds Maturing September 1, 20__
Mandatory
Redemption Date
(Sept. 1)
Sinking Fund
Payment
(maturity)
The amounts in the foregoing tables will be reduced pro rata, in order to maintain substantially uniform debt service, as a result of any prior partial optional redemption or mandatory redemption of the 2025 Bonds.
Purchase In Lieu of Redemption. In lieu of redemption, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding 2025 Bonds, upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may 2025 Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase.
Redemption Procedure by Fiscal Agent. The Fiscal Agent will cause notice of any redemption to be mailed by first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption, to the Securities Depositories and to one or more Information Services, and to the respective registered Owners of any 2025 Bonds designated for redemption, at their addresses appearing on the registration books in the Principal Office of the Fiscal Agent; but such mailing is not a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, will not affect the validity of the proceedings for the redemption of such 2025 Bonds.
Such notice will state the redemption date and the redemption price and, if less than all of the then Outstanding 2025 Bonds are to be called for redemption, will designate the CUSIP numbers and bond numbers of the 2025 Bonds to be redeemed by giving the individual CUSIP number and bond number of each 2025 Bond to be redeemed or will state that all 2025 Bonds between two stated bond numbers, both inclusive, are to be redeemed or that all of the 2025 Bonds of one or more maturities have been called for redemption, will state as to any 2025 Bond called in part the principal amount thereof to be redeemed, and will require that such 2025 Bonds be then surrendered at the Principal Office of the Fiscal Agent for redemption at the said redemption price, and will state that further interest on such 2025 Bonds will not accrue from and after the redemption date.
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11 The City has the right to rescind any notice of the optional redemption of 2025 Bonds and such notice may be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the 2025 Bonds then called for redemption.
Whenever provision is made in the Fiscal Agent Agreement for the redemption of less than all of the 2025 Bonds of any maturity, the City will select the 2025 Bonds to be redeemed, from all 2025 Bonds or such given portion thereof of such maturity by lot in any manner which the City in its sole discretion deems appropriate. Upon surrender of 2025 Bonds redeemed in part only, the City will execute and the Fiscal Agent will authenticate and deliver to the registered Owner, at the expense of the City, a new 2025 Bond or 2025 Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the 2025 Bond or 2025 Bonds.
Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the 2025 Bonds so called for redemption are deposited in the Bond Fund, such 2025 Bonds so called will cease to be entitled to any benefit under the Fiscal Agent Agreement other than the right to receive payment of the redemption price, and no interest will accrue thereon on or after the redemption date specified in such notice.
Transfer or Exchange of Bonds
So long as the 2025 Bonds are registered in the name of Cede & Co., as nominee of DTC, transfers and exchanges of 2025 Bonds will be made in accordance with DTC procedures. See “APPENDIX G – DTC AND THE BOOK-ENTRY ONLY SYSTEM.” Any 2025 Bond may, in accordance with its terms, be transferred or exchanged by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such 2025 Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form approved by the Fiscal Agent. Whenever any 2025 Bond or 2025 Bonds are surrendered for transfer or exchange, the City will execute and the Fiscal Agent will authenticate and deliver a new 2025 Bond or 2025 Bonds, for a like aggregate principal amount of 2025 Bonds of authorized denominations and of the same maturity. The cost for any services rendered or any fees or expenses incurred by the Fiscal Agent in connection with any such transfer or exchange will be paid by the City. The Fiscal Agent will collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer or exchange. No transfers or exchanges of 2025 Bonds will be required to be made (i) within 15 days prior to the date established by the Fiscal Agent for selection of 2025 Bonds for redemption or (ii) with respect to a 2025 Bond after such 2025 Bond has been selected for redemption.
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12 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS
Special Taxes
The Bonds (consisting of the and any Additional Bonds that may be issued in the future) are payable from and secured by proceeds of the Special Taxes received by the City, including all scheduled payments and delinquent payments thereof, interest and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes (but excluding any interest in excess of the interest due on the Bonds or any penalties collected in connection with any such foreclosure), and net of an administration charge of the County (lesser of 1% or $3 per parcel) (the “Special Tax Revenues”). All of the Special Tax Revenues and all monies deposited in the Bond Fund and, until disbursed as provided herein, in the Special Tax Fund are pledged to secure the repayment of the Bonds. In addition all moneys in the Reserve Fund for such Series of Bonds is pledged to secure the repayment of the 2025 Bonds. The Special Tax Revenues and all moneys deposited into such funds (except as otherwise provided in the Fiscal Agent Agreement) are dedicated to the payment of the principal of, including any mandatory sinking fund payments, and interest and any premium on, the Bonds as provided in the Fiscal Agent Agreement and in the Act until all of the Bonds have been paid and retired or defeased in accordance with the Fiscal Agent Agreement.
A Special Tax applicable to each taxable parcel in Improvement Area No. 6 will be levied and collected according to the tax amount determined by application of the Rate and Method administered by Goodwin Consulting Group, Inc., Sacramento, California (the “Special Tax Administrator”) and set forth in APPENDIX A hereto for all taxable properties in Improvement Area No. 6. Prior to remittance of the Special Tax collections to the City, the County deducts and retains a 1% County administration fee, as noted above. Interest and principal on the Bonds is payable from the annual Special Tax Revenues to be paid to the City from Special Tax levies and collections on taxable property within Improvement Area No. 6, from amounts held in certain funds and accounts established under the Fiscal Agent Agreement and from the proceeds, if any, from the sale of such property for delinquency of such Special Taxes.
The Special Taxes are exempt from the property tax limitation of Article XIIIA of the California Constitution, pursuant to Section 4 thereof as a “special tax” authorized by a two-thirds vote of the qualified electors. The levy of the Special Taxes was authorized by the City Council, as legislative body of the District, pursuant to the Act in an amount determined according to the Rate and Method. See “– Special Tax Methodology” below and APPENDIX A.
The amount of Special Taxes that the City may levy in any year, and from which principal and interest on the Bonds is to be paid, is strictly limited by the maximum rates approved by the qualified electors within Improvement Area No. 6, which is set forth in the Rate and Method.
Under the Rate and Method, Special Taxes for the purpose of making payments on the Bonds will be levied annually in an amount not in excess of the maximum approved amount. The Special Taxes and any interest earned on the Special Taxes constitute a trust fund for the principal of and interest on the Bonds pursuant to the Fiscal Agent Agreement and, so long as the principal of and interest on these obligations remains unpaid, the Special Taxes and investment earnings thereon will not be used for any other purpose, except as permitted by the Fiscal Agent Agreement, and will be held in trust for the benefit of the owners thereof and will be applied pursuant to the Fiscal Agent Agreement. The Rate and Method apportions the Facilities Special Taxes among the taxable parcels of real property within Improvement Area No. 6 according to the rate and methodology set forth in the Rate and Method. See “– Special Tax Methodology” below. See also “APPENDIX A – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” POLICY AND ACTION ITEM 8.4
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13 The City may levy the Special Tax up to the amount of the Maximum Facilities Special Tax set forth in the Rate and Method, if conditions so require. The City has covenanted to annually levy the Special Taxes in an amount at least sufficient to pay the Facilities Special Tax Requirement (as defined below). Because each Special Tax levy is limited to the Maximum Facilities Special Tax rates authorized as set forth in the Rate and Method, no assurance can be given that, in the event of Special Tax delinquencies, the amount of the Facilities Special Tax Requirement will in fact be collected in any given year. In addition, Section 53321(d) of the Act provides that the special tax levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within a community facilities district by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. See “SPECIAL RISK FACTORS – Tax Delinquencies” herein. The Special Taxes are collected for the City by the County in the same manner and at the same time as ad valorem property taxes.
Special Tax Methodology
Pursuant to the Rate and Method, a “Facilities Special Tax” will be levied and collected until the earlier of (i) the Transition Year (defined herein) or (ii) Fiscal Year 2064-65, and a “Services Special Tax” will be levied and collected in perpetuity. Only the “Facilities Special Tax” is pledged to the payment of the 2025 Bonds, and the definition of Special Taxes used in the Fiscal Agent Agreement and this Official Statement refers only to the “Facilities Special Tax” levied in accordance with the Rate and Method. Capitalized terms set forth in this section and not otherwise defined have the meanings set forth in the Rate and Method.
Determination of Facilities Special Tax Requirement. Each year, the City will determine the Facilities Special Tax Requirement for the upcoming fiscal year. The “Facilities Special Tax Requirement” is defined in the Rate and Method as the amount necessary in any Fiscal Year to: (i) pay principal and interest on Bonds that are due in the calendar year that begins in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement, liquidity support and rebate payments on the Bonds; (iii) replenish reserve funds created for the Bonds under the Indenture to the extent such replenishment has not been included in the computation of the Facilities Special Tax Requirement in a previous Fiscal Year; (iv) cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year; (v) pay Administrative Expenses; and (vi) pay directly for Authorized Facilities, so long as such levy under this clause (vi) does not increase the Facilities Special Tax levied on Final Map Property or Undeveloped Property. The amounts referred to in clauses (i) and (ii) above may be reduced in any Fiscal Year by: (a) interest earnings on or surplus balances in funds and accounts for the Bonds to the extent that such earnings or balances are available to apply against such costs pursuant to the Indenture; (b) in the sole and absolute discretion of the Agency, proceeds received by the CFD from the collection of penalties associated with delinquent Facilities Special Taxes; and (c) any other revenues available to pay such costs, each as determined in the discretion of the Special Tax Administrator.
Parcels Subject to the Special Tax. The City will prepare a list of the parcels subject to the Special Tax using the records of the City and the County Assessor. The City has the authorization to tax all parcels within Improvement Area No. 6 except tax-exempt parcels as described in the Rate and Method.
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14 Each Fiscal Year, the Administrator shall: (i) assign each Parcel of Taxable Property to the appropriate Development Class; (ii) for Developed Property, categorize each Parcel as Single Family Property or Other Property; (iii) for Single Family Property, determine within which Village each Parcel is located and the number of Residential Units on each Parcel; (iv) for Other Property, determine within which Village each Parcel is located and determine the Acreage of each Parcel; (v) determine the Facilities Special Tax Requirement and Services Special Tax Requirement for the Fiscal Year; and (vi) determine whether the Transition Event has occurred in a prior Fiscal Year. In addition, the Administrator shall, on an ongoing basis, monitor the Tentative Map, Final Maps, and Building Permits to determine if there are any proposed Land Use Changes that would change the Expected Maximum Facilities Special Tax Revenues. If the Expected Maximum Facilities Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Rate and Method.
In any Fiscal Year, if it is determined that: (i) a parcel map for property in Improvement Area No. 6 was recorded after January 1 of the prior Fiscal Year ( or any other date after which the Assessor will not incorporate the newly-created Parcels into the then current tax roll); (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel map; and (iii) one or more of the newly-created Parcels is in a different Development Class than other Parcels created by the subdivision, the Administrator shall calculate the Special Taxes for the property affected by recordation of the parcel map by determining the Special Taxes that apply separately to the property within each Development Class, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map.
Assignment of Maximum Special Tax. The Rate and Method describes in detail the precise method for assigning the Maximum Special Tax to parcels within Improvement Area No. 6, which generally provides that each year the City will use the definitions contained in the Rate and Method to classify each parcel as tax-exempt or taxable. Changes to maximum special tax rates due to Land Use Changes are handled per Section D of the Rate and Method. See APPENDIX A.
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15 Maximum Special Tax Rates. The Maximum Special Tax for a Parcel of Developed Property or Final Map Property is the greater of (i) the Base Special Tax set forth in Table 1 to the Rate and Method which is reproduced below, or, (ii) the Maximum Special Tax determined pursuant to Section D of the Rate and Method. For additional details and a diagram showing the villages referred to in the following table, see APPENDIX A.
Base Facilities Special Tax Rates
Developed and Final Map Property
Land Use Category Village
FY 2025-26 Base Facilities
Special Tax (1)(2)
Single Family Property Village 1 $2,379.66 per Residential Unit Village 2 $2,846.82 per Residential Unit
Village 3 $3,164.04 per Residential Unit
Other Property N/A $26,115.06 per Acre
Undeveloped Property
Special Tax Category Village
FY 2025-26 Base Facilities
Special Tax (1)(2)
Undeveloped Property N/A $26,115.06 per Acre
(1) On July 1 each fiscal year, the Maximum Facilities Special Taxes shall be increased by two percent of the amount in effect in the previous fiscal year.
(2) Represents the Maximum Facilities Special Tax rates based on currently-expected land uses in the Improvement Area. Subject to change pursuant to Section D of the RMA.
Source: Goodwin Consulting Group, Inc.
Limitation on Increases in Levy of Facilities Special Tax. If owners are delinquent in the payment of Facilities Special Taxes, the City may not increase Facilities Special Tax levies to make up for delinquencies for prior Fiscal Years above the Maximum Facilities Special Tax rates specified for each category of property within Improvement Area No. 6. In addition, Section 53321(d) of the Act provides that the special tax levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within a community facilities district by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. In cases of significant delinquency, these factors may result in defaults in the payment of principal of and interest on the Bonds. See “SPECIAL RISK FACTORS.”
Duration of the Facilities Special Tax; Transition Year. The Facilities Special Tax will be levied and collected (up to maximum allowable amount) until the earlier of (i) the Transition Year or (ii) Fiscal Year 2074-75. For purposes of Improvement Area No. 6, “Transition Year” means the first Fiscal Year following the Fiscal Year in which the Transition Event occurred, and “Transition Event” is deemed to have occurred when the Administrator determines that the following events have occurred: (i) all Bonds secured by the levy and collection of Facilities Special Taxes in the Improvement Area have been fully repaid; (ii) all Administrative Expenses from prior Fiscal Years have been paid or reimbursed to the City; and (iii) there are no other Authorized Facilities that the City intends to fund with Bonds or Facilities Special Taxes.
Termination of the Special Tax. The Special Tax will be levied until all Bonds have been repaid and all authorized facilities have been funded; however, Special Taxes cannot be levied under any circumstance after fiscal year 2064-65.
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16 Prepayment of the Special Tax. The Facilities Special Tax obligation assigned to a particular parcel within Improvement Area No. 6 can be partially prepaid, which will reduce the Facilities Special Tax for the parcel in future fiscal years. Up to 75% of the Facilities Special Tax obligation may be prepaid for a given parcel. Section H of the Rate and Method sets forth a detailed formula by which the prepayment for a parcel can be calculated. Proceeds of such prepayment will be used to redeem a portion of the Bonds.
Levy of Annual Special Tax; Maximum Special Tax
General. The annual Special Tax will be calculated by the City and levied to provide money for debt service on the Bonds, replenishment of Reserve funds established within the Reserve Fund for each Series of Bonds, certain delinquencies, administration of the District (including Improvement Area No. 6), and for payment of pay-as-you-go expenditures (to the extent permitted by the Rate and Method) of the authorized public capital facilities not funded from Bond proceeds. In no event may the City levy a Special Tax in any year above the maximum identified for each taxable parcel in the Rate and Method.
Annual Special Tax Levy. The Special Tax will be levied each year by calculating the amount needed to be generated by all Taxable Parcels in Improvement Area No. 6; the Special Tax (up to the maximum allowable amount) will be levied against each Taxable Parcel until the Special Tax revenue equals such amount; however, the Rate and Method establishes a priority for which properties will be levied a Special Tax. In the first fifteen (15) Fiscal Years in which a Facilities Special Tax is levied within Improvement Area No. 6, the Maximum Facilities Special Tax shall be levied on all Parcels of Developed Property. Any Facilities Special Tax proceeds collected that are determined by the Administrator to be Remainder Taxes shall be deposited into the Improvement Fund to pay any costs associated with the acquisition of Authorized Facilities that were not paid with Bond proceeds or Facilities Special Taxes levied in prior Fiscal Years.
Beginning in the sixteenth (16th) Fiscal Year in which a Facilities Special Tax is levied within the Improvement Area and continuing until the Transition Year, the Facilities Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Developed Property until the amount levied is equal to the Facilities Special Tax Requirement prior to applying any Capitalized Interest that is available in the CFD accounts for the respective Improvement Area.
If additional revenue is needed after the above first taxing tier in order to meet the Facilities Special Tax the next tier to be levied is Final Map Property, then Undeveloped Property, and so on as detailed in the Rate and Method.
The City covenants in the Fiscal Agent Agreement to fix and levy the amount of Special Taxes within Improvement Area No. 6 required for the payment of principal of and interest on any outstanding Bonds of Improvement Area No. 6 becoming due and payable during the ensuing year, including any necessary replenishment or expenditure of the Reserve Fund for the Bonds and an amount estimated to be sufficient to pay the Administrative Expenses during such year, all in accordance with the Rate and Method. The Special Tax is authorized to be levied in an amount not to exceed the Maximum Special Tax levy as described in the Rate and Method notwithstanding that a lower amount is sufficient to pay debt service on the Bonds. The Rate and Method provides a mechanism whereby the City may utilize the pay-as-you-go component to pay for and/or reimburse developers for a portion of the cost of Improvements not funded by proceeds of the bonds issued for Improvement Area No. 6. Proceeds of the annual Special Tax levy will first be used to pay the “Facilities Special Tax Requirement (which include debt service payments POLICY AND ACTION ITEM 8.4
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17 on the Bonds) other than pay-as-you-go expenditures, and the City contemplates that the levy will include a pay-as-you-go component for deposit into the Improvement Fund for authorized costs not funded from Bond proceeds. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Special Tax Methodology” above. See “APPENDIX A – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX” for a copy of the Rate and Method.
Annual Escalation of Facilities Special Tax. The Facilities Special Tax escalates by 2% per fiscal year until the Transition Event, and thereafter will no longer be levied. See “APPENDIX A – RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX” and for a table showing the expected land uses and assigned Maximum Special Taxes, see “Attachment 2” in such Appendix.
Special Tax Fund
When received, the Special Tax Revenues are required under the Fiscal Agent Agreement to be deposited into a Special Tax Fund to be held by the City in trust for the benefit of the City and the Owners of the Bonds to the credit of which the City shall deposit, immediately upon receipt, all Special Tax Revenues received by the City. Moneys in the Special Tax Fund will be disbursed as provided below and, pending any disbursement, will be subject to a lien in favor of the Owners of the Bonds.
No later than 10 Business Days prior to each Interest Payment Date, the City shall withdraw from the Special Tax Fund and transfer (i) to the Fiscal Agent for deposit in the Reserve Fund an amount such that the amount then on deposit therein is equal to the Reserve Requirement, and (ii) to the Fiscal Agent for deposit in the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund such that the amount in the Bond Fund equals the principal, including any mandatory sinking fund payments, premium, if any, and interest due on the Bonds on the next Interest Payment Date, provided, however, that as soon as practicable after the receipt by the City of any prepayments of Special Taxes, but no later than 30 Business Days after such receipt, the City shall transfer such prepayments to the Fiscal Agent for deposit into the Prepayment Account of the Bond Fund to be used for the redemption of bonds.
After the transfers under subsections (i) and (ii) have been made, the City may, on or after September 2 of each year, transfer to the Surplus Fund the amount remaining in the Special Tax Fund.
Delinquent Payments of Special Tax; Covenant for Superior Court Foreclosure The Special Tax will be collected in the same manner and the same time as ad valorem property taxes, except at the City’s option, the Special Taxes may be billed directly to property owners or collected at a different time to meet the City’s financial obligations. In the event of a delinquency in the payment of any installment of Special Taxes, the City is authorized by the Act to order institution of an action in superior court to foreclose the lien therefor.
The City has covenanted in the Fiscal Agent Agreement with and for the benefit of the Owners of the Bonds that it will annually on or before September 1 of each year review the public records of the County related to the collection of the Special Tax in order to determine the amount of the Special Tax collected in the prior Fiscal Year, and if the City determines on the basis of such review that:
(a) the amount so collected is deficient by more than 5% of the total amount of the Special Tax for Improvement Area No. 6 levied in such Fiscal Year, then the City will POLICY AND ACTION ITEM 8.4
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18 institute, prosecute and pursue such foreclosure proceedings against each parcel in Improvement Area No. 6 for which any installment of the Special Tax is delinquent in the time and manner provided below; or
(b) the amount so collected is deficient by less than 5% of the total amount of the Special Tax for Improvement Area No. 6 levied in such Fiscal Year, but property owned by any single property owner is delinquent cumulatively by an amount equal to three installment payments with respect to the current and past Special Tax due, then the City will institute, prosecute and pursue such foreclosure proceedings against each such property owner in the time and manner provided below.
The Finance Director of the City shall within 60 days thereafter send or cause to be sent a written demand letter to the delinquent parcel(s) and lender of record, if any, as the first step in instituting foreclosure proceedings as authorized by the Mello-Roos Act in order to enforce the lien of the delinquent installment of the Special Tax on each such parcel, and shall thereafter diligently prosecute and pursue such foreclosure proceedings to judgment and sale in such manner and upon such timing as advised by legal counsel, taking into account the amounts delinquent, the estimate cost of legal proceedings, the status of Special Tax collections and available debt service reserves; provided, that the City shall not be obligated to commence proceedings against any delinquent parcels in any Fiscal Year in which the City has received or expects to receive one hundred percent (100%) of the amount of such installment from a so-called “Teeter Plan.”
Notwithstanding the foregoing, in certain instances the amount of a Special Tax delinquency on a particular parcel in relation to the cost of appropriate foreclosure proceedings may be such that the costs do not warrant the foreclosure proceedings costs. In such cases, foreclosure proceedings may be delayed by the City until there are sufficient Special Tax delinquencies accruing to such parcel (including interest and penalties thereon) to warrant the cost of such foreclosure proceedings.
Under the Act, foreclosure proceedings are instituted by the bringing of an action in the superior court of the county in which the parcel lies, naming the owner and other interested persons as defendants. The action is prosecuted in the same manner as other civil actions. In such action, the real property subject to the special taxes may be sold at a judicial foreclosure sale for a minimum price that will be sufficient to pay or reimburse the delinquent special taxes.
The owners of the Bonds benefit from the Reserve Fund established pursuant to the Fiscal Agent Agreement; however, if delinquencies in the payment of the Special Taxes with respect to the Bonds are significant enough to completely deplete the Reserve Fund, there could be a default or a delay in payments of principal and interest to the owners of the Bonds pending prosecution of foreclosure proceedings and receipt by the City of the proceeds of foreclosure sales. Provided that it is not levying the Special Tax at the Maximum Facilities Special Tax rates set forth in the Rate and Method, the City may adjust the Special Taxes levied on all property within Improvement Area No. 6 subject to the Special Tax to provide an amount required to pay debt service on the Bonds and to replenish the Reserve Fund. However, such adjustment is subject to the Maximum Facilities Special Tax and to the limitation described under the caption “–Special Tax Methodology” above.
Under current law, a judgment debtor (property owner) has at least 120 days from the date of service of the notice of levy to redeem the property to be sold. If a judgment debtor fails to redeem and the property is sold, his or her only remedy is an action to set aside the sale, which POLICY AND ACTION ITEM 8.4
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19 must be brought within 90 days of the date of sale. If, as a result of such an action a foreclosure sale is set aside, the judgment is revived and the judgment creditor is entitled to interest on the revived judgment as if the sale had not been made (California Code of Civil Procedure Section 701.680).
Foreclosure by court action is subject to normal litigation delays, the nature and extent of which are largely dependent upon the nature of the defense, if any, put forth by the debtor and the condition of the calendar of the superior court of the county. Such foreclosure actions can be stayed by the superior court on generally accepted equitable grounds or as the result of the debtor’s filing for relief under the Federal bankruptcy laws. The Act provides that, upon foreclosure, the Special Tax lien will have the same lien priority as is provided for ad valorem taxes and special assessments. See “VALUE OF PROPERTY WITHIN IMPROVEMENT AREA NO. 6 – Priority of Lien.”
No assurances can be given that the real property subject to a judicial foreclosure sale will be sold or, if sold, that the proceeds of sale will be sufficient to pay any delinquent Special Tax installment. The Act does not require the City to purchase or otherwise acquire any lot or parcel of property foreclosed upon if there is no other purchaser at such sale.
Section 53356.6 of the Act requires that property sold pursuant to foreclosure under the Act be sold for not less than the amount of judgment in the foreclosure action, plus post-judgment interest and authorized costs, unless the consent of the owners of at least 75% of the outstanding Bonds is obtained. However, under Section 53356.6 of the Act, the City, as judgment creditor, is entitled to purchase any property sold at foreclosure using a “credit bid,” where the City could submit a bid crediting all or part of the amount required to satisfy the judgment for the delinquent amount of the Special Tax. If the City becomes the purchaser under a credit bid, the City must pay the amount of its credit bid into the redemption fund established for the Bonds, but this payment may be made up to 24 months after the date of the foreclosure sale.
Teeter Plan. In 1949, the California Legislature enacted an alternative method for the distribution of property taxes to local agencies. This method, known as the “Teeter Plan,” is found in Sections 4701-4717 of the California Revenue and Taxation Code. Upon adoption and implementation of this method by a county board of supervisors, local agencies for which the county collects property taxes and certain other public agencies and taxing areas located in the county receive annually the full amount of their shares of property taxes and other impositions collected on the secured roll, including delinquent property taxes which have yet to be collected.
While the county bears the risk of loss on unpaid delinquent taxes, it retains the penalties associated with delinquent taxes when they are paid. In turn, the Teeter Plan provides participating local agencies with stable cash flow and the elimination of collection risk.
Once adopted, a county’s Teeter Plan will remain in effect in perpetuity unless the board of supervisors orders its discontinuance or unless, prior to the commencement of a fiscal year, a petition for discontinuance is received and joined in by resolutions of the governing bodies of not less than two-thirds of the participating districts in the county. An electing county may, however, decide to discontinue the Teeter Plan with respect to any levying agency in the county if the board of supervisors, by action taken not later than July 15 of a fiscal year, elects to discontinue the procedure with respect to such levying agency and the rate of secured tax delinquencies in that agency in any year exceeds 3% of the total of all taxes and assessments levied on the secured roll by that agency.
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20 The Board of Supervisors of San Joaquin County has adopted the Teeter Plan, and the County elects to apply its Teeter Plan to the collection of the Special Taxes annually. As such, the City anticipates that the Teeter Plan will be applicable to the Special Tax levied in Improvement Area No. 6, but no assurance can be given that it will continue in any or all of the years that the 2025 Bonds are outstanding. To the extent that the County’s Teeter Plan continues in existence and is carried out as adopted, and to the extent the County does not discontinue the Teeter Plan with respect to the City or Improvement Area No. 6, the County’s Teeter Plan may help protect owners of the 2025 Bonds from the risk of delinquencies in the payment of Special Taxes. However, there can be no assurance that the County will not modify or eliminate its Teeter Plan, or choose to remove Improvement Area No. 6 or particular delinquent parcels from its Teeter Plan in any year while the 2025 Bonds are outstanding.
Reserve Fund
The Reserve Fund has been established under the Fiscal Agent Agreement for the benefit of the holders of the 2025 Bonds.
Upon delivery of the 2025 Bonds, the Fiscal Agent will deposit an amount of the proceeds into the Reserve Fund so that the amount therein equals the “Reserve Requirement,” which means, with respect to any series of Bonds, the least of (i) 125% of the average Annual Debt Service with respect to the 2025 Bonds; (ii) Maximum Annual Debt Service with respect to the 2025 Bonds; and (iii) 10% of the original principal amount of the 2025 Bonds (or, if the 2025 Bonds have more than a de minimis amount of original issue discount or premium, 10% of the issue price of such Bonds); provided, that—
(a) the Reserve Requirement for the 2025 Bonds shall not increase after the date of issuance of the 2025 Bonds;
(b) in no event shall the City be obligated to deposit an amount in any reserve fund in excess of the amount permitted by the applicable provisions of the Code to be so deposited from the proceeds of tax-exempt bonds without having to restrict the yield of any investment purchased with any portion of such deposit and, if the amount of any such deposit is so limited, the Reserve Requirement shall be only the amount of such deposit as permitted by the Code; and
(c) the City may meet all or a portion of the Reserve Requirement with respect to any series of Bonds by depositing a Qualified Reserve Fund Credit Instrument.
The City has the right to either meet the Reserve Requirement at the time of issuance of a series of Bonds or at any time thereafter to cause the Fiscal Agent to release cash from an account within the Reserve Fund, in whole or in part, by tendering to the Fiscal Agent: (1) a Qualified Reserve Fund Credit Instrument, and (2) in the case of a release, an opinion of Bond Counsel stating that such release will not, of itself, cause the portion of the interest on the Bonds secured thereby to become includable in gross income for purposes of federal income taxation.
Upon tender of such items to the Fiscal Agent in connection with a release of cash, the Fiscal Agent will transfer such funds to the City. Prior to the expiration of any Qualified Reserve Fund Credit Instrument, if applicable, the City is obligated either to replace such Qualified Reserve Fund Credit Instrument with a new Qualified Reserve Fund Credit Instrument, or to deposit or cause to be deposited with the Fiscal Agent an amount of funds such that the funds on deposit in an account within the Reserve Fund together with all Qualified Reserve Fund Credit Instruments held by the Fiscal Agent is at least equal to the Reserve Requirement (which funds POLICY AND ACTION ITEM 8.4
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21 may come from a draw by the Fiscal Agent on the Qualified Reserve Fund Credit Instrument prior to its expiration).
“Qualified Reserve Fund Credit Instrument” means an irrevocable standby or directpay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Fiscal Agent, provided that all of the following requirements are met: (a) the long-term credit rating of such bank or insurance company is rated in the top two categories (without regard to modifier) by S&P Global Ratings, a business unit of Standard & Poor’s Financial Services LLC or Moody’s Investors Service, Inc. at the time of issuance; (b) such letter of credit or surety bond has a term of at least 12 months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement being met by such instrument or with respect to which funds are proposed to be released pursuant to the Fiscal Agent Agreement; and (d) the Fiscal Agent is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Bond Fund for the purpose of making payments required pursuant to the Fiscal Agent Agreement.
Whenever, on the Business Day prior to any Interest Payment Date, the amount in any reserve fund within the Reserve Fund exceeds the Reserve Requirement for the applicable series of Bonds covered by such reserve fund, the Fiscal Agent shall provide written notice to the Chief Financial Officer of the amount of the excess. The Chief Financial Officer shall advise the Fiscal Agent in writing of the amount, if any, of any transfer required pursuant to the Fiscal Agent Agreement, and otherwise direct the Fiscal Agent to transfer an amount equal to the excess to the Improvement Fund, if the Project has not been completed as of the date of such transfer, or if the Project has been completed, to the Bond Fund to be used for the payment of the principal of and interest on the Outstanding Bonds covered by the applicable reserve fund in accordance with the Fiscal Agent Agreement; provided, that to the extent that such excess results from the prepayment of Special Taxes and redemption of Bonds, such amount shall be transferred to the Prepayment Account and applied to the corresponding redemption of Bonds.
Whenever the balance in the reserve fund exceeds the amount required to redeem or pay the Outstanding 2025 Bonds, including interest accrued to the date of payment or redemption and premium, if any, due upon redemption, and make any other transfer required under the Fiscal Agent Agreement, the Fiscal Agent will transfer the amount in the reserve fund to the Bond Fund to be applied, on the next succeeding Interest Payment Date, to the payment and redemption of all of the 2025 Bonds. If the amount so transferred from the reserve fund to the Bond Fund exceeds the amount required to pay and redeem the 2025 Bonds, the balance in the reserve fund will be transferred to the City, after payment of any amounts due the Fiscal Agent, to be used for any lawful purpose of the City.
Improvement Fund
Under the Fiscal Agent Agreement, there is established an Improvement Fund, which is to be held in trust by the Fiscal Agent and will be disbursed as provided in the Fiscal Agent Agreement for the payment or reimbursement of the costs of the construction and acquisition of the Improvements in accordance with the Acquisition Agreement (as described herein). Interest earnings from the investment of amounts in the Improvement Fund will be retained in the Improvement Fund to be used for the purposes of the Improvement Fund.
Upon completion of the Improvements and payment to the Master Developer or other entities that are due reimbursement for Improvements, the Fiscal Agent will transfer the amount, POLICY AND ACTION ITEM 8.4
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22 if any, remaining in the Improvement Fund to the Bond Fund for application to the payment of principal of and interest on the Bonds in accordance with the Fiscal Agent Agreement, and the Improvement Fund will be closed.
No Additional Bonds Except for Refunding
The proceedings conducted under the Act for the District and Improvement Area No. 6 authorize the issuance of up to $17,600,000 of special tax bonds for Improvement Area No. 6, of which the 2025 Bonds represent the first series of bonds and under the provisions of the Fiscal Agent Agreement the City is precluded from issuing additional bonds secured by the Special Taxes on parity with the 2025 Bonds, except for refunding bonds issued under the Act.
As an alternative to issuing additional bonds, the City may issue bonds for Improvement Area No. 6 secured by Special Taxes on a subordinate basis to the pledge of Special Taxes for payment of the 2025 Bonds.
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23 DEBT SERVICE SCHEDULE
The annual debt service on the 2025 Bonds, assuming no early redemptions other than mandatory sinking fund payments, is set forth below.
Improvement Area No. 6 of
City of Mountain House
Community Facilities District No. 2024-1
(Public Facilities and Services)
2025 Bonds – Annual Debt Service
Year
Ending
(Sept. 1)
2025 Bonds
Principal
2025 Bonds
Interest
2025 Bonds
Total
2025(1)
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
______________
(1) Capitalized Interest is being funded on the 2025 Bonds through September 1, 2025.
Source: Underwriter.
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24 The table below shows the projected debt service coverage on the 2025 Bonds.
Improvement Area No. 6 of
City of Mountain House
Community Facilities District No. 2024-1
(Public Facilities and Services)
Projected Debt Service Coverage – Fiscal Year 2025-26(1) (2) Bond Year
Buildout
Maximum
Facilities
Special Tax (3)
Priority
Administration (4)
2025 Bonds
Debt
Service*
Debt
Service
Coverage*
2026 $547,049 ($35,000) $464,638 110.20%
2027 $557,990 ($35,700) $473,838 110.23%
2028 $569,150 ($36,414) $482,638 110.38%
2029 $580,533 ($37,142) $491,038 110.66%
2030 $592,144 ($37,885) $499,038 111.07%
2031 $603,987 ($38,643) $511,638 110.50%
2032 $616,067 ($39,416) $523,450 110.16%
2033 $628,388 ($40,204) $529,625 111.06%
2034 $640,956 ($41,008) $540,375 111.02%
2035 $653,775 ($41,828) $555,488 110.16%
2036 $666,850 ($42,665) $564,750 110.52%
2037 $680,187 ($43,518) $577,250 110.29%
2038 $693,791 ($44,388) $588,750 110.30%
2039 $707,667 ($45,276) $599,250 110.54%
2040 $721,820 ($46,182) $613,750 110.08%
2041 $736,257 ($47,105) $622,000 110.80%
2042 $750,982 ($48,047) $634,250 110.83%
2043 $766,001 ($49,008) $650,250 110.26%
2044 $781,321 ($49,989) $664,750 110.02%
2045 $796,948 ($50,988) $677,750 110.06%
2046 $812,887 ($52,008) $689,250 110.39%
2047 $829,144 ($53,048) $704,250 110.20%
2048 $845,727 ($54,109) $717,500 110.33%
2049 $862,642 ($55,191) $734,000 110.01%
2050 $879,895 ($56,295) $748,500 110.03%
2051 $897,493 ($57,421) $761,000 110.39%
2052 $915,442 ($58,570) $776,500 110.35%
2053 $933,751 ($59,741) $789,750 110.67%
2054 $952,426 ($60,936) $805,750 110.64%
2055 $971,475 ($62,155) $824,250 110.32%
________
*Preliminary, subject to change.
(1) Pursuant to Section 53321(d) of the Government Code, the special tax levied against any assessor's parcel for which an occupancy permit for private residential use has been issued shall not be increased as a consequence of delinquency or default by the owner of any other assessor's parcel within the District by more than 10% above the amount that would have been levied in the fiscal year had there never been any such delinquencies or defaults. (2) Based on currently-expected land uses in the Improvement Area. Subject to change pursuant to Section D of the RMA. (3) Includes Maximum Facilities Special Tax revenues based on the currently recorded final maps. (4) As defined in the Fiscal Agent Agreement. Equals $35,000 in FY 2025-26 and escalates by two percent per year thereafter.
Sources: Piper Sandler & Co.; Goodwin Consulting Group, Inc.
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25 THE CITY
Incorporation in 2024. The City was incorporated by vote of its citizens at an election held on March 5, 2024, becoming the 483rd incorporated city admitted to the State of California in July 2024. As part of the incorporation process, the District, which had been formed by the City’s predecessor, Mountain House Community Services District, officially became a community facilities district of the City with the City Council as its legislative body, and the Mountain House Community Services District became a subsidiary district of the City.
The City is located in San Joaquin County, north of Interstate 205, south of Old River, east of the Alameda County line and west of Mountain House Parkway directly north and northwest t of the City of Tracy. Regional access to the community is from Interstate 205, along the southern boundary. Local access is via Grant Line Road and Byron Road, which traverse the community and Mountain House Parkway along the eastern boundary. The population of the City as of January 1, 2024 was 28,063.
Origins of the Mountain House Community. In 1996, the County established the Mountain House Community Services District (“MHCSD”), which provided many, but not all, of the same services and received many, but not all, of the same revenues as an incorporated city in the State. Upon formation of the MHCSD, it was contemplated the territory in Mountain House community would someday incorporate.
The Mountain House community, as conceived by the original developer, Trimark Communities, LLC was approved for development under the Mountain House Master Plan (the “Master Plan”) for the community, and three specific plans thereunder. The Master Plan was adopted as an amendment to the County General Plan in 1993 and further amended in 1994.
The County certified a final environmental impact report (“EIR”) on the amendment to the County General Plan in 1992, a supplemental EIR in 1993 and a master EIR on the Master Plan and Specific Plan 1 in 1994. The Master Plan provided that essential public services, including streets, storm drain, water and sewer, were to be provided by MHCSD. Home development by merchant builders commenced pursuant to the Master Plan and as of the end of 2024 approximately 8,000 homes have been built in what is now the City.
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26 IMPROVEMENT AREA NO. 6
Development of the Mountain House Community
The City was established in July 2024 as an incorporation of a previously unincorporated area of San Joaquin County. In 1996 the master planned community was approved and in 2000 infrastructure development started. The first homes were started in 2003. The community covers approximately 4,784 acres approximately directly north and northwest of the city of Tracy. As of the end of 2024, approximately 8,000 homes are within the City. In March 2020 a modern Town Hall and Community Library were completed.
Primary access to the area is provided by Mountain House Parkway, a major north/south arterial along the eastern portion of the City. Byron Road is another major arterial in a northwest/southeast direction that provides access to Highway 205 and the nearby community of Tracy and employment opportunities in the greater San Francisco Bay Area. Public transportation is provided by San Joaquin Transit District and provides access within the City and to nearby areas in San Joaquin County, however, the primary mode of transportation in this area is the automobile. The Stockton Metro Airport is located about 26 miles north and the Oakland International Airport is approximately 45 miles to the west.
Land uses in the City are predominantly single-family residential, with farmland largely surrounding the City. In late 2022 Safeway completed its full service grocery store and gas station at the corner of Mountain House Parkway and Byron Road as part of the larger 86,000 square foot Market at Mountain House retail center. Larger retail supportive services are located in Tracy, including Costco, Home Depot, auto dealers and other services typical of a larger city, with similar services in nearby Lathrop, Stockton and Livermore.
Active sales of homes in the City are ongoing, with homes currently offered by Lennar Homes in its Bradbury Park neighborhood in the Creekside master planned community, with home prices ranging in the upper $800,000’s to lower $1,000,000’s, as well as homes similarly priced and offered by Shea Homes in its Langston duet home project.
One of the major employers in the area is Amazon, who operates two fulfillment centers in Tracy. Other major employers include Safeway, Tracy Unified School District, Defense Distribution Depot San Joaquin, and Deuel Vocational Institute. These are located within five to eight miles of the City and represent significant concentrations in the distribution and government industries.
The nearest fire and police stations are within two miles of the City. The closest elementary/middle school is within one mile and the local high school is approximately two miles away. San Joaquin Delta College has a satellite campus in the City.
The land within the District begins a significant new development area of the City referred to internally as the area north of Byron Road. Improvement Area Nos. 1 through 9 are planned for residential development and expected to collectively comprise approximately 5,471 lots, with land suitable for approximately 1,577 more lots in the Future Annexation Area. Units in the currently formed improvement areas in the District are expected to be developed for residential uses as shown in the following table. Only the land in Improvement Area No. 6 is and will be security for the 2025 Bonds.
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27 Area Expected Homebuilder
Expected
Number of
Homes
Improvement Area No. 1 (1)
Century Communities, Taylor
Morrison, Richmond American,
Rurka Homes (2) 596
Improvement Area Nos. 2-5 TBD TBD (3)
Improvement Area No. 6 Pulte Homes 188 (4)
Improvement Area No. 7 Tri Pointe Homes 143
Improvement Area No. 8 Lennar Homes 503
Improvement Area No. 9 Richmond American 96
TOTAL 5,471
(1) Bonds were issued for Improvement Area No. 1 on March 13, 2025 in the principal amount of $40,130,000. No additional bonds are contemplated for Improvement Area No. 1. (2) Rurka Homes is a general contractor affiliate of the Master Developer that will build the homes and handle all development, construction, purchasing, sales, marketing and warranty activities, however the Master Developer will own the lots until conveyance to individual homebuyers.
(3) Currently owned by Master Developer and not yet mapped for development. Present zoning includes residential and other land uses. Residential lot count could be approximately 1,500- 1,600 but subject to mapping, entitlements and zoning changes; residential use currently projected by the Master Developer for home construction by Rurka Homes. (4) Seven of these lots are under contract to be deeded back to the Master Developer for home construction.
Development of Improvement Area No. 6
Effective January 6, 2025, Pulte Home Company, LLC a Michigan limited liability company (“Pulte Homes”) and its land bank entity AG EHC II (PHM) CA 2, L.P., a Delaware limited partnership (the “Land Bank Owner”), as the qualified landowner-electors of a portion of the property within the Future Annexation Area, submitted unanimous approval forms to the City to officially establish Improvement Area No. 6 and to establish a bonded indebtedness limit for Improvement Area No. 6 of $17,600,000 (excluding bonds described in Section 53364.2(e) of the Act). The 2025 Bonds are the first series of bonds to be issued for Improvement Area No. 6.
Pulte Homes has provided the following information with respect to development within Improvement Area No. 6. No assurance can be given that all information is complete. No assurance can be given, however, that the proposed development of the property within Improvement Area No. 6 will occur in a timely manner or in the configuration or to the density described herein. Since the ownership of the parcels is subject to change, the development plans outlined below may not be continued by the subsequent owner if the parcels are sold, although development by any subsequent owner will be subject to the Development Agreement and the policies and requirements of the City. No assurance can be given that the plans or projections detailed below will actually occur. Neither the 2025 Bonds nor any of the Special Taxes are personal obligations of any property owner within Improvement Area No. 6. The 2025 Bonds are secured solely by the Special Taxes levied on property within Improvement Area No. 6 and amounts on deposit in certain of the funds and accounts maintained by the Fiscal Agent under the Fiscal Agent Agreement as described in this Official Statement. Neither the City nor the Underwriter can provide any assurances as to the accuracy of the information in this section.
Overview. The development ongoing in Improvement Area No. 6 is comprised of 188 single family residential lots on approximately 40 acres. Seven of these lots are under contract to POLICY AND ACTION ITEM 8.4
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28 be deeded back to the original land seller, Rurka Capital, LLC prior to the initial levy of a Special Tax.
Homes being marketed by Pulte Homes in Improvement Area No. 6 are under development into three residential communities: “Cypress at Avina,” “Laurel at Avina” and “Sequoia at Avina.” The project is generally located on the south side of W Grant Line Road, west of Mountain House Parkway. The 188 lots were within the Future Annexation Area established for the District at the time it was formed, and were annexed to the District in January 2025. Only the land within Improvement Area No. 6 constitutes security for the Bonds.
Maps. Maps showing the region and local area where Improvement Area No. 6 is located, as well as the boundaries of Improvement Area No. 6 follow.
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29 [Map 1 – Vicinity Map]
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30 [Map 2 – CFD Boundary Map - Page 1]
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31 [CFD Boundary Map - Page 2
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32 [Map 3 – Aerial Photo]
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33 No Affordable Units. There are no affordable unit requirements within Improvement Area No. 6, other than a fee paid at building permit.
Flood Hazard Map Information. Improvement Area No. 6 is located in an area of minimal flooding according to the Federal Emergency Management Association (“FEMA”). In particular, Improvement Area No. 6 is located in an area designated by FEMA as being within Zone X, outside of the 500-year floodplain.
Seismic Conditions. Like other areas of Northern California, the property in Improvement Area No. 6 is subject to the risk of earthquake damage. Based on the Earthquake Zones of Required Investigation map published by the State of California Department of Conservation, none of the property expected to be developed in Improvement Area No. 6 is located within a seismic special studies zone, designated by the California State Division of Mines and Geology, in accordance with the Alquist-Priolo Special Study Zone Act of 1972.
Fire Hazard Risk. The CalFire Local Responsibility Area (“LRA”) Fire Hazard Severity Zone as identified by the State Fire Marshal in the newly revised map dated January 22, 2025 places the entire City within “Unzoned.” See “RISK FACTORS – Property Values and Property Development – Wildfires.”
Entitlements. The entitlements for the project permit a development proposal related to a particular parcel to proceed through tentative map subdivision and design-review permitting processes to final mapping provided the development application is in accord with the entitlements and the final map conditions. Pulte Homes has received all necessary approvals to develop the 188 lots within Improvement Area No. 6.
Final small-lot subdivision maps have been received for all 188 residential units in Improvement Area No. 6.
Home Development. Pulte Homes is developing the land in Improvement Area No. 6 into 181 single-family, detached homes in three product lines: “Cypress at Avina,” “Laurel at Avina” and “Sequoia at Avina.” As of March 15, 2025, 96 lots were in “finished lot” condition and 90 were partially improved, in addition to two lots with completed homes and 21 lots with homes under construction. Improvement Area No. 6 also includes seven lots which are under contract to be deeded back to the original land seller, Rurka Capital, LLC prior to the initial levy of a Special Tax.
Model homes in Improvement Area No. 6 opened on February 15, 2025. As of April 1, 2025 five homes were under contract and three homes had closed. Additional information regarding lot status, building permits issued, units under construction, sales and pricing for each product line follows:
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34 Table 1A
Improvement Area No. 6 of City of Mountain House
Community Facilities District No. 2024-1 (Public Facilities and Services) Status of Development in Improvement Area No. 6
As of April 1, 2025
Community
No. of
Lots(1)
Building
Permits
Issued
Completed
Homes
Owned by
Pulte
Homes(2)
Homes
Under
Construction
Homes
Under
Contract
Homes
Sold and
Closed
Cypress 31 17 ___ 9 5 3
Laurel 74 8 ___ 8 0 0
Sequoia 83 4 ___ 4 0 0
Total 188 29 ___ 21 5 3
(1) 8 lots have been improved with a model home. 7 lots are under contract to be deeded back to the original land seller, Rurka Capital, LLC prior to the initial levy of a Special Tax. (2) Includes __ complete models and ___ complete production homes.
Source: Pulte Homes.
Table 1B
Improvement Area No. 6 of City of Mountain House
Community Facilities District No. 2024-1 (Public Facilities and Services) Base Pricing in Improvement Area No. 6
As of April 1, 2025
Community
No. of
Lots
Floor
Plan
Range
Base
Price
Range(1)
Cypress 31 2,222-2,689 $954,990-$1,064,990
Laurel 74 2,172-2,973 $994,990-$1,194,990
Sequoia 83 2,590-3,404 $1,129,990-$1,319,990
(1) Base Pricing as of April 1, 2025. Excludes upgrades, concessions, and other offsets in pricing such as mortgage rate buy-downs.
Source: Pulte Homes.
Pulte Homes’ development expectations described above are based on Pulte Homes’ current plans. These plans may change due to changes in economic and market conditions or other factors. No assurance can be given that home construction and sales will be carried out on the schedule and according to the plans described herein, or that the home construction and sale plans or base prices set forth above will not change after the date of this Official Statement. Pulte Homes reserves the right to change its development plans at any time without notice. Additionally, homes under contract to be sold may not result in closed escrows as sales contracts are subject to cancellation by the homebuyer. See “SPECIAL RISK FACTORS — Property Values and Property Development – Risks of Real Estate Secured Investments Generally.” Backbone and In-Tract Infrastructure. The conditions of development for the project require the construction of various improvements at various times. [As of April 1, 2025, all required backbone and in-tract infrastructure was in place for the development and sale of the 188 planned single-family homes in Improvement Area No. 6. It is anticipated that all required backbone and in-tract infrastructure will be in place for the development and sale of the 188 planned singlefamily homes in Improvement Area No. 6 by late 2025. Remaining backbone and in-tract POLICY AND ACTION ITEM 8.4
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35 infrastructure needed for the development of Improvement Area No. 6 is expected to be eligible for reimbursement from the proceeds of the 2025 Bonds.
Land-Banking Arrangement. For the acquisition of the 181 lots in Improvement Area No. 6, Pulte Homes assigned the purchase agreement with Rurka Capital, LLC to AG EHC II (PHM) CA 2, L.P., a Delaware limited partnership (the “Land Bank Owner”), which is serving as land bank to Pulte Homes for the 181 lots in Improvement Area No. 6 (the “Land Bank Lots”). On January 12, 2024, the Land Bank Owner acquired the Land Bank Lots from Rurka Capital, LLC in order to set up a land bank structure.
In connection therewith, Pulte Homes and the Land Bank Owner entered into an Option Agreement, dated as of January 12, 2024 (as amended, the “Option Agreement”) whereby Pulte Homes has the option, but not the obligation, to purchase the Land Bank Lots from the Land Bank Owner beginning August 2024 and extending through April 2026. Seven lots in Improvement Area No. 6 but not subject to the Option Agreement are under contract to be deeded back to the original land seller, Rurka Capital, LLC prior to the initial levy of a Special Tax.
Pulte Homes is responsible for making special tax payments while the Option Agreement is in place. In the event that Pulte Homes does not exercise its option or the right to purchase the lots expires or is terminated, the Land Bank Owner being an investor only and not a homebuilder, would likely attempt to sell such lots to another merchant builder. Under the Option Agreement, Pulte has the option to take-down lots in accordance with a specified take-down schedule. In addition, Pulte Homes can accelerate the takedown of lots and, Pulte Homes can, and does, pull building permits and begin house construction on lots held by the Land Bank Owner before those lots are taken down. As of April 1, 2025, Pulte Homes had taken down 79 lots. Pulte Homes additionally is allowed to pull building permits and build on lots still owned by the Land Bank Owner and has done so.
The remaining take-down schedule is as follows:
Table 1C
Improvement Area No. 6 of City of Mountain House
Community Facilities District No. 2024-1 (Public Facilities and Services) Pulte Option Agreement – Take-Down Schedule for Improvement Area No. 6 As of April 1, 2025
Neighborhood Lot Size Takedown Date
Number
of Lots
Laurel 5,000 April 2025 (1) 12
July 2025 12
October 2025 12
January 2026 12
April 2026 2
50 Sequoia 6,000 April 2025 (1) 12
July 2025 12
October 2025 12
January 2026 12
April 2026 4
52 _____________
(1) Lots have been taken down as per the schedule.
Source: Pulte Homes.
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36 The Land Bank Owner is serving as a land bank for Pulte Homes and is not a homebuilder. In the event Pulte Homes does not acquire the lots owned by the Land Bank Owner, the Land Bank Owner expect to market and sell such lots to another homebuilder.
Land Bank Owner. According to the Land Bank Owner, the Land Bank Owner is an affiliate of, and managed by, Angelo Gordon & Co., L.P. (“Angelo Gordon”). Angelo Gordon is a privately-held alternative investment firm founded in 1988 and headquartered in New York, with associated offices across the United States, Europe and Asia. Angelo Gordon manages approximately $73 billion across a broad range of credit and real estate strategies. Neither the Land Bank Owner nor Angelo Gordon are affiliated entities of Pulte Homes.
Financing Plan. To date, Pulte Homes has financed its various site development and homebuilding costs related to its property in Improvement Area No. 6 through internally generated funds. As of April 15, 2025, sts, permits and fees, and marketing and sales costs for its projects in Improvement Area No. 6. Pulte Homes expects to use home sales revenues and internal funding to complete its development within Improvement Area No. 6, and believes that it will have sufficient funds available to complete its planned development as described in this Official Statement.
Although Pulte Homes expects to have sufficient funds available to complete its development in Improvement Area No. 6 as described in this Official Statement, no assurance can be given that amounts necessary to fund the planned land acquisition and development by Pulte Homes in Improvement Area No. 6 will be available when needed. Neither Pulte Homes nor any other entity or person is under any legal obligation of any kind to expend funds for land acquisition and the development of the property as planned by Pulte Homes in Improvement Area No. 6. Any contributions by Pulte Homes or any other entity or person to fund the costs of such land acquisition and development are entirely voluntary. Pulte Homes has no legal obligation to 2025 Bondowners to make any such funds available for land acquisition, construction or development, or the payment of ad valorem property taxes or the Special Taxes.
If and to the extent that internal funding, including but not limited to home sales revenues and corporate financing from Pulte Homes’ parent company, is inadequate to pay the costs to complete the planned land acquisition and development by Pulte Homes in Improvement Area No. 6 and other financing is not put into place, there could be a shortfall in the funds required to complete the proposed development by Pulte Homes or to pay ad valorem property taxes or Special Taxes related to Pulte Homes’ property in Improvement Area No. 6 and the remaining portions of such development may not be completed. Many factors beyond Pulte Homes’ control, or a decision by Pulte Homes to alter its current plans, may cause the actual sources and uses to differ from the projections.
Except as described in this Official Statement and except for those consents, permits, authorizations, certifications and approvals of governmental entities required in the ordinary course of development, Pulte Homes has no actual knowledge of any impediment to construction or obtaining land use entitlements which could be reasonably expected to have a material adverse effect on its ability to complete the planned development of its property within Improvement Area No. 6 as described in the Official Statement.
Acquisition Agreement. In connection with the annexation into the District, the City and Pulte Homes entered into an Acquisition Agreement (the “Acquisition Agreement”) which POLICY AND ACTION ITEM 8.4
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37 provides that certain impact fees and public facilities to be constructed by will be eligible for financing through bonds issued by the City on behalf of Improvement Area No. 6.
The Rate and Method provides that the funding of Improvement costs can also be made from collections of the Special Tax available as the “pay-as-you-go” component of Special Taxes.
The pay-as-you-go funding component is expected to provide for funding of the cost of a portion of the Improvements in excess of the amount provided from Bond proceeds (if such proceeds are not sufficient) through annual Special Tax collections in excess of the amount needed to pay the debt service. The City allows utilizing this funding mechanism during the initial 15 years that the Bonds are outstanding.
Utilities
Utility services to the property within Improvement Area No. 6 will be supplied by the following:
• Water: City of Mountain House
• Sewer: City of Mountain House
• Storm drain: City of Mountain House
• Electricity and gas: Modesto Irrigation District
• Telephone: AT&T
• Cable TV: Comcast
• Refuse collection: West Valley Disposal
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38 VALUE OF PROPERTY WITHIN IMPROVEMENT AREA NO. 6
Assessed Valuation
The value of taxable property within Improvement Area No. 6 is a critical factor in determining the investment quality of the Bonds. The remedy for non-payment of the Special Tax is potential foreclosure of the delinquent real property.
Assessed Valuation Generally. As provided by Article XIII A of the California Constitution, county assessors’ assessed values are to reflect market value as of the date the property was last assessed (or 1975, whichever is more recent), increased by a maximum of 2% per year. Properties may be reassessed by the County only upon a change of at least 51% ownership of existing property or upon new construction. The assessed values of parcels in the District thus reflect the estimate of the County Assessor (the “Assessor”) of market value when acquired (or 1975, whichever is later), possibly increased by up to 2% per year, and for parcels on which construction has occurred since their date of acquisition, the Assessor’s estimate of market value as of the time of construction, possibly increased by up to 2% per year.
Assessed Valuation History. The following table shows the Fiscal Year 2024-25 County assessed valuations of taxable property in Improvement Area No. 6.
Assessed Valuation of Taxable Property
in Improvement Area No. 6
Fiscal
Year
Land Assessed
Value
Improvement
Assessed
Value
Total Assessed
Value(1)
Number of
Permits
Issued (2)(3)
2024-25 $4,475,795 $0 $4,475,795 0
(1) Includes a portion of the assessed value of parcel 209-060-650-000. Approximately 28 acres of the 141 acre parcel is within Improvement Area No. 6. The total $22,550,384 assessed value of the parcel was prorated to Improvement Area No. 6 based on an average assessed value per acre. (2) Represents the number of parcels for which a building permit for new construction was issued prior to June 30 of the prior fiscal year. As of June 30, 2024, no building permits had been pulled. (3) As of March 15, 2025, the date of value, 18 building permits have been pulled.
Sources: San Joaquin County Assessor's Office; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.
The actual market value of land in Improvement Area No. 6, if sold at foreclosure, may be higher or lower than the Assessor’s assessed values, depending upon the date of the Assessor’s most recent assessment. The actual fair market value of any parcel may be more accurately established through an arms-length sale or an appraisal by an independent appraiser.
The Appraisal
General. In order to obtain a more accurate estimate of the value of land in Improvement Area No. 6, the City ordered preparation of an appraisal report (the “Appraisal”), of the estimated value of certain taxable land within Improvement Area No. 6 as of a March 15, 2025 date of value.
The Appraisal was prepared by Integra Realty Resources, Sacramento, California (the “Appraiser”). The Appraisal is set forth in APPENDIX B hereto. The description herein of the Appraisal is intended for limited purposes only; the Appraisal should be read in its entirety. The conclusions reached in the Appraisal are subject to certain assumptions, conditions and qualifications which are set forth in the Appraisal.
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39 Composite Value Estimate. The Appraisal sets forth an aggregate value of taxable property currently in Improvement Area No. 6 of $76,961,000, as of March 15, 2025. The appraised value assumes completion of the Improvements funded by the 2025 Bonds (but not any Additional Bonds that may be issued in the future) and accounts for the impact of the lien of the Special Tax on the value of the property. In considering the estimates of value evidenced by the Appraisal, it should be noted that the Appraisal is based upon a number of standard and special assumptions, which affect the estimates as to value.
Appraised Valuation by Ownership. The following table sets forth the appraised valuation by ownership and development status for parcels owned by individual homeowners, the Master Developer and Merchant Builders (and their land banks) as of March 15, 2025. The total valuation set forth in the Appraisal is $76,961,000. For information on how the values were allocated among parcels and ownership, see APPENDIX B.
Table 3
Appraised Values by Ownership
As of March 15, 2025
Market Value by Ownership Appraised Value
AG EHC II (PHM) CA 2, L.P., Delaware limited partnership $43,942,000 Pulte Home Company, LLC 35,828,000
Aggregate Market Value $76,961,000
_____________________
Source: Appraisal.
Hypothetical Condition. The estimate of appraised value is subject to a hypothetical condition, defined as that which is contrary to what exists but is supposed for the purposes of analysis. For purposes of the hypothetical condition, the Appraiser assumed that certain proceeds of the 2025 Bonds are available to reimburse for certain improvements already completed.
Assumptions and Limiting Conditions. In considering the estimate of value evidenced by the Appraisal, the Appraisal is based upon a number of standard and special assumptions which affect the estimates as to value. For example, the Appraiser has assumed that there is no adverse soil conditions, toxic substances or other environmental hazards that would interfere or inhibit development of the appraised property. Should future conditions and events reduce the level of permitted development or delay the completion of any projected development, the value of the undeveloped land would likely be reduced from that estimated by the Appraiser. See “APPENDIX B – THE APPRAISAL.”
Accordingly, because the Appraiser arrived at an estimate of current market value based upon certain assumptions which may or may not be fulfilled, no assurance can be given that should the parcels become delinquent due to unpaid Special Taxes, and be foreclosed upon and offered for sale for the amount of the delinquency, that any bid would be received for such property or, if a bid is received, that such bid would be sufficient to pay such delinquent Special Taxes.
Exposure Time. Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Exposure time is always presumed to precede the effective date of the Appraisal. Based on the Appraiser’s review of recent sales transactions for similar properties and its analysis of supply POLICY AND ACTION ITEM 8.4
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40 and demand in the local land market, the Appraiser’s opinion was that the probable exposure time for the appraised property at the concluded market value stated previously is 12 months.
Marketing Time. Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. As the Appraiser foresees no significant changes in market conditions in the near term, the Appraiser’s opinion was that a reasonable marketing period for the appraised property in bulk is likely to be the same as the exposure time. Accordingly, the Appraiser estimated the marketing period at 12 months or less.
No assurance can be given that a sale of the property in bulk through foreclosure could be achieved or attained over an extended period of time; real estate is cyclical in nature, and it is impossible to accurately forecast and project specific demand over a particular period. See “SPECIAL RISK FACTORS – Property Values and Property Development.” Limitations of Appraisal Valuation. Property values may not be evenly distributed throughout Improvement Area No. 6; thus, certain parcels may have a greater value than others.
This disparity is significant because in the event of nonpayment of the Special Tax, the only remedy is to foreclose against the delinquent parcel.
No assurance can be given that the foregoing valuation can or will be maintained during the period of time that the 2025 Bonds are outstanding in that the City has no control over the market value of the property within Improvement Area No. 6 or the amount of additional indebtedness that may be issued in the future by other public agencies, the payment of which, through the levy of a tax or an assessment, may be on a parity with the Special Taxes. Overlapping debt of a local school district is expected to increase in the future. See “–Overlapping Liens and Priority of Lien” below.
For a description of certain risks that might affect the assumptions made in the Appraisal, see “SPECIAL RISK FACTORS” herein.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
41 Value to Special Tax Burden Ratios
General. In comparing the value of the real property within Improvement Area No. 6 and the principal amount of the Bonds, it should be noted that only the real property upon which there is a delinquent Special Tax can be foreclosed upon, and the real property within Improvement Area No. 6 cannot be foreclosed upon as a whole to pay delinquent Special Taxes of the owners of such parcels within Improvement Area No. 6 unless all of the property is subject to a delinquent Special Tax. In any event, individual parcels may be foreclosed upon separately to pay delinquent Special Taxes levied against such parcels.
Other public agencies whose boundaries overlap those of Improvement Area No. 6 could, without the consent of the City and in certain cases without the consent of the owners of the land within Improvement Area No. 6, impose additional taxes or assessment liens on the land within Improvement Area No. 6. Overlapping debt of a local school district is expected to be added and increase; see the subheading “Lammersville Joint Unified School District Community Facilities District No. 2024-1” following Table 4
Property owners can also voluntarily add Property Assessed Clean Energy (PACE) assessment liens on their property to finance energy efficiency improvements. The lien created on the land within Improvement Area No. 6 through the levy of such additional taxes or assessments may be on a parity with the lien of the Special Tax. In addition, construction loans may be obtained by the Master Developer and subsequent merchant homebuilders, and home loans may be obtained by ultimate homeowners. The deeds of trust securing such debt on property within Improvement Area No. 6, however, will be subordinate to the lien of the Special Tax.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
42 Value to Lien Ratios by Appraisal Status. The following table sets forth composite values as of March 15, 2025, maximum Special Taxes for Fiscal Year 2025-26, allocable debt, and value to lien ratios by appraisal status in Improvement Area No. 6, based on the assumptions detailed therein.
Table 4
Value to Lien Ratios by Development Status
Projected Fiscal Year 2025-26 Special Tax Levy
Improvement Area No. 6 Debt Allocated by Projected Special Tax As of March 15, 2025
Appraisal Status/Projected
Ownership (1)
No. of
Planne
d
Units
Appraised
Value (2)
Projected
FY 2025-26
Maximum
Facilities
Special Tax
Projected
FY 2025-26
Facilities
Special Tax
Levy (3)
Percent of
Projected
Facilities
Special Tax
Levy
2025
Bonds (4)*
Overlapping
Debt (5)
Total
Debt
Average
Appraised
Value-toLien (4)*
AG EHC II (PHM) CA 2, L.P.
Partially Improved Lots
Village 2 59 $19,057,000 $186,678 $168,982 33.8% $3,047,258 $1,743,892 $4,791,150 4.0 : 1 Finished Lots
Village 1 50 $23,250,000 $142,341 $128,848 25.8% $2,323,522 $1,354,505 $3,678,027 6.3 : 1 Subtotal 109 $42,307,000 $329,019 $297,830 59.6% $5,370,780 $3,098,397 $8,469,178 5.0 : 1 Pulte Home Company, LLC
Partially Improved Lots
Village 3 15 $4,845,000 $47,461 $42,962 8.6% $774,727 $430,042 $1,204,769 4.0 : 1 Finished Lots
Village 1 19 $7,885,000 $45,214 $40,928 8.2% $738,048 $435,833 $1,173,880 6.7 : 1 Village 2 22 $10,230,000 $62,630 $56,693 11.3% $1,022,350 $585,060 $1,607,410 6.4 : 1 Village 3 5 $2,400,000 $15,820 $14,321 2.9% $258,242 $148,138 $406,380 5.9 : 1 Lots with Homes Under
Construction
Village 1 10 $4,390,000 $23,797 $23,797 4.8% $429,125 $229,493 $658,618 6.7 : 1 Village 2 2 $978,000 $5,694 $5,694 1.1% $102,674 $59,263 $161,937 6.0 : 1 Village 3 4 $2,016,000 $12,656 $12,656 2.5% $228,229 $118,553 $346,782 5.8 : 1 Completed Homes
Village 1 2 $1,910,000 $4,759 $4,759 1.0% $85,825 $46,359 $132,185 14.4 : 1 Subtotal 79 $34,654,000 $218,030 $201,808 40.4% $3,639,220 $2,052,742 $5,691,961 6.1 : 1 Total 188 $76,961,000 $547,049 $499,638 100.0% $9,010,000 $5,151,139 $14,161,139 5.4 : 1 [Footnotes on following page]
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
43 (1) The development status and ownership is based on the Appraisal Report and as of the March 15, 2025 date of value. (2) Appraised values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots. (3) Based on 18 building permits issued prior to March 15, 2025, and assumes no further development. Includes debt service due in 2026 on the 2025 Bonds and estimated administrative expenses in the amount of $35,000. (4) Includes the $9,010,000 par amount of the 2025 Bonds. Allocated based on the Projected FY 2025-26 Facilities Special Tax Levy.. (5) Includes the overlapping debt liens listed under Direct and Overlapping Tax and Assessment Debt in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2024-25. Also includes overlapping debt of the Lammersville JUSD CFD No. 2019-1. The property in Improvement Area No. 6 was annexed into Lammersville JUSD CFD No. 2019-1 in July 2024, but no special taxes for that CFD have been levied on the property within Improvement Area No. 6 yet. A total of $23,265,000 in special tax bonds is outstanding for that CFD and an estimated 22% or $5,166,765 of that would be allocable to property in Improvement Area No. 6 upon buildout of the units. It is anticipated that the Lammersville JUSD CFD No. 2019-1 will issue additional bonds in the future. * Preliminary, subject to change. See “Lammersville School District Community Facilities District 2019-1” below.
Sources: San Joaquin County Assessor's Office; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.
Lammersville Joint Unified School District Community Facilities District No. 2019-1. The local school district serving Improvement Area No. 6 is the Lammersville Joint Unified School District (“LJUSD”), which has debt outstanding for its Community Facilities District No. 2019-1 (“CFD2019-1”). Land within Improvement Area No. 6 has been annexed into CFD 2019-1. A total of $23,265,000 in special tax bonds is outstanding for CFD2019-1 and an estimated 22% or $5,166,765 of that would be allocable to property in Improvement Area No. 6 upon buildout of the units. CFD 2019-1 has a bond authorization of $75,000,000 and the school district anticipates that it will issue additional bonds in the future. Under the existing bond documentation, additional bonds can be issued if the value of land in CFD 2019- 1 is at least three times the sum of the special taxes and overlapping debt on the parcels in CFD 2019-1 and debt service coverage, including administrative expenses, for the CFD 2019-1 bonds is at least 110% of the maximum special tax rate.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
44 Stratification of Value to Lien Ratios. The following table sets forth ranges of value to lien ratios, based on appraised values, maximum Special Taxes for Fiscal Year 2025-26, and allocable debt in Improvement Area No. 6, based on the assumptions detailed therein.
Table 5
Summary Value to Lien Ratios by Range
Projected Fiscal Year 2025-26 Special Tax Levy
Improvement Area No. 6 Debt Allocated by Projected Special Tax Value-to-Lien
Ratio Range *
No. of
Units
Appraised
Value (1)
Projected FY
2025-26
Facilities
Special Tax
Levy (2)
Percent of
Projected
Facilities
Special
Tax Levy 2025 Bonds (3)*
Overlapping
Debt (4) Total Debt *
Average
Value-toLien
Ratios (5)*
Greater than 10:1 2 $1,910,000 $4,759 1.0% $85,825 $48,359 $132,185 14.4 : 1 5:1 to 10:1 112 $51,149,000 $282,936 56.6% $5,102,190 $2,930,845 $8,033,035 6.4 : 1 3:1 to 5:1 74 $23,902,000 $211,943 42.4% $3,821,985 $2,173,934 $5,995,919 4.0 : 1 Total 188 $76,961,000 $499,638 100.0% $9,010,000 $5,151,139 $14,161,139 5.4 : 1 (1) Appraised values were allocated to the individual lots based on the expected development and lot status for each, as reported in the Appraisal. The allocated appraised values may not be indicative of the market values of the villages or the individual lots. (2) Based on 18 building permits issued prior to March 15, 2025, and assumes no further development. Includes debt service due in 2026 on the 2025 Bonds and estimated administrative expenses in the amount of $35,000. (3) Includes the $9,010,000 par amount of the 2025 Bonds. Allocated based on the Projected FY 2025-26 Facilities Special Tax Levy.. (4) Includes the overlapping debt liens listed under Direct and Overlapping Tax and Assessment Debt in the overlapping debt report prepared by California Municipal Statistics, Inc. The overlapping debt report is based on the parcels and assessed values as of FY 2024-25. Also includes overlapping debt of the Lammersville JUSD CFD No. 2019-1. The property in Improvement Area No. 6 was annexed into Lammersville JUSD CFD No. 2019-1 in July 2024, but no special taxes for that CFD have been levied on the property within Improvement Area No. 6 yet. A total of $23,265,000 in special tax bonds is outstanding for that CFD and an estimated 22% or $5,166,765 of that would be allocable to property in Improvement Area No. 6 upon buildout of the units. It is anticipated that the Lammersville JUSD CFD No. 2019-1 will issue additional bonds in the future. * Preliminary, subject to change. See “Lammersville School District Community Facilities District 2019-1” above.
Sources: San Joaquin County Assessor's Office; California Municipal Statistics, Inc.; Goodwin Consulting Group, Inc.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
45 Special Tax Collections and Delinquencies
Fiscal Year 2025-26 will be the first year in which the Special Tax was levied in Improvement Area No. 6. The following table sets forth the projected Fiscal Year 2025-26 Facilities Special Tax Levy by Village For additional details and a diagram showing the villages referred to in the following table, see APPENDIX A.
Table 6
Projected Fiscal Year 2025-26
Facilities Special Tax Levy by Village(1)
Development Status Village
Projected
FY 2025-26 Maximum
Facilities Special Tax
Projected FY 2025-26
Actual Facilities
Special Tax (2)*
Developed Property Village 1 $28,556 $28,556
Village 2 $5,694 $5,694
Village 3 $12,656 $12,656
Final Map Property Village 1 $45,214 $40,928
Village 2 $204,971 $185,541
Village 3 $249,959 $226,264
$547,049 $499,638
______________
* Preliminary, subject to change.
(1) As of March 15, 2025, final maps had been recorded for Villages 1, 2, and 3, and 18 building permits had been issued for construction of new homes. Assumes no additional development. (2) Includes debt service due in 2026 on the 2025 Bonds and estimated administrative expenses in the amount of $35,000. The Priority Administrative Expense for fiscal year 2025-26 is $35,000 and escalates by two percent per year.
Source: Goodwin Consulting Group, Inc.
Overlapping Liens and Priority of Lien
The principal of and interest on the Bonds are payable from the Special Tax authorized to be collected within Improvement Area No. 6, and payment of the Special Tax is secured by a lien on certain real property within Improvement Area No. 6. Such lien is co-equal to and independent of the lien for general taxes and any other liens imposed under the Act, regardless of when they are imposed on the property in Improvement Area No. 6. The imposition of additional special taxes, assessments and general property taxes will increase the amount of independent and co-equal liens which must be satisfied in foreclosure. The City, the County and certain other public agencies are authorized by the Act to form other community facilities districts and improvement areas and, under other provisions of State law, to form special assessment districts, either or both of which could include all or a portion of the land within Improvement Area No. 6.
See the subheading “Lammersville Joint Unified School District Community Facilities District No. 2024-1” following Table 4 Joint Unified School District Community Facilities District No. 2019-1” above.
Set forth below is an overlapping debt table showing the existing direct and overlapping tax and assessment debt payable with respect to property within Improvement Area No. 6. This table is taken from information prepared by California Municipal Statistics Inc. as of the date indicated, and is included for general information purposes only. The City has not reviewed the data for completeness or accuracy and makes no representations in connection therewith.
POLICY AND ACTION ITEM 8.4
ATTACHMENT D
EXHIBIT 2
Item 8.4
46 Table 7
Summary of Overlapping Debt
As of April 1, 2025
CITY OF MOUNTAIN HOUSE COMMUNITY FACILITIES DISTRICT NO. 2024-1, I.A. 6 2024-25 Assessed Valuation: $4,475,795
OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 4/1/25 San Joaquin Delta Community College District 0.004% $ 5,290 Lammersville Joint Unified School District 0.053 29,084 City of Mountain House Community Facilities District No. 2024-1, I.A. 6 100. - (1) TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $34,374