2.7 NEPA Categorical Exemption
Project Team will prepare a Categorical Exclusion under NEPA for the proposed project. The Project Team will draft a brief memorandum that includes the following:
• Purpose and Need : Description of the problem that exists, and how the proposed project addresses that problem.
• Proposed Action: Brief description of the proposed project features and components. • Compliance with Federal Laws: Description of the proposed project in relation to applicable federal resource regulations including:
– Section 106 of the National Historic Preservation Act – Executive Order No. 11990 (Wetlands Impacts)
– Executive Order No. 11988 (Floodplains)
– Section 7 of the Endangered Species Act
– Section 4(f) of the Transportation Act
– Section 6(f) of the Land and Water Conservation Act
– Farmland Protection Policy Act
– Coastal Zone Management Act
– Wild and Scenic Rivers Act
– Clean Air Act
– Socioeconomic and Environmental Justice
– Noise
This analysis assumes that the proposed project would not result in any impacts related to the acts above, and that only the supporting technical studies prepared for the CEQA document will be required. The findings of this analysis would be summarized in support of the Categorical Exclusion.
Once completed, the Project Team would submit this analysis in electronic format for review by the City for submittal to the federal lead agency. MNS assumes one round of review from the City and the federal lead agency. Once reviewed, Project Team would provide a final Categorial Exclusion in electronic format.
3. Geotechnical Engineering
Converse Consultants, the Project Team consultant, will conduct a geotechnical investigation of the subsurface soils beneath or near the proposed Line-F alignment. 8 684
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Subsurface Exploration
Converse will drill 6 borings, at 500-ft interval along the project alignment to a depth of 20.0 feet bgs or to refusal, whichever is shallower. The borings will be drilled with a truck mounted rig (CME 75 or equivalent) equipped with 8-inch diameter hollow stem augers for soils sampling. Soils will be continuously logged and classified by the geologist/engineer in the field by visual examination in accordance with the Unified Soil Classification System.
Undisturbed ring samples of the subsurface materials will be obtained at 5-foot intervals, at changes in soil profiles, or where unusual conditions are encountered. The relatively undisturbed ring samples will be obtained using a Modified California Sampler (2.4-inch inside diameter and
3.0-inch outside diameter) lined with thin-walled sample rings. The sampler will be driven into the bottom of the borehole with successive drops of a 140-pound hammer falling 30 inches. The number of successive drops of the driving weight (”blows”) required for each 6 inches of penetration will be shown on the boring log. The soil will be retained in brass rings (2.4 inches in diameter and 1.0 inch in height) and carefully sealed in waterproof plastic containers for shipment to the laboratory. Bulk samples of representative soil types will be collected in plastic bags from various depths and within a 5-foot zone of the pipe elevation. Groundwater levels, where encountered in the borings, will be recorded.
Laboratory Testing
Converse will perform Laboratory Testing of soil samples. Laboratory testing may include, but not necessarily be limited to, the following:
• In-place moisture and density
• R-value
• Sand equivalent
• Direct Shear
• Soils corrosivity
• Sieve analysis
• Laboratory maximum density
Geotechnical Engineering Analysis and Geotechnical Report Data obtained from the field investigation and laboratory tests will be evaluated. Engineering analyses will be performed to prepare a geotechnical investigation report. The report will include the following items:
• Project description
• Present condition of the street along the stormdrain alignment. • Logs of the exploratory borings.
• Approximate GPS coordinate of all borings
• Local Geology and faulting.
• Existing pavement structural section at boring locations • Description of onsite material and analysis of its suitability for use as fill, bedding, or backfill. 9 685
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• Preparation of foundation soil below the storm drain system including depth of soil removal (over-excavation), ground scarification, fill placement and compaction. • Stability and erosion potential of cut slopes. Slopes will be evaluated for stability under static, seismic, and rapid drawdown conditions. (if unlined). • Seismic parameters based on 2022 California Building Code. • Liquefaction potential along the SD alignment based on available information. • Allowable soils bearing pressures.
• Allowable at-rest, active, passive, and seismic lateral earth pressures. • RCB bedding recommendation in accordance with RCFCD/City of Murrieta. • Excavatability of the soil along the stormdrain alignment. • Stability of temporary trench excavation.
• Shoring design and construction recommendations.
• Suitability of excavated materials for use as bedding and backfill. • RCB subgrade preparation recommendation.
• Trench backfills recommendation.
• Asphalt Concrete pavement section
4. Topographic Survey and Mapping
The Project Team will utilize a topographic survey that is within the JLC Database to complement the design of the project. The topography map is based on a December 2018 survey. The Project Team will perform a topographical certification to validate the topography. Exhibit A provides the limit of the existing topography. Additionally, the survey will include a boundary and mapping base map that delineate the adjacent the project boundary defined as APN 906-140-076. The proposed facility alignment will be surveyed along the existing channel bottom. Moreover, survey cross sections will be taken along the full width of Kalmia Street and the roadway intersections from Washington Ave. to 5 th Avenue to provide sufficient data for the Kalmia Street roadway design.
The information will be used to design and install storm drain laterals if required. A detailed ground survey will be conducted to capture visible ground features and utilities within the proposed alignment to develop a topographic base map specific to the needs of this project. The survey will be based upon the 1988 National Geodetic Vertical Datum (NA VD88). The horizontal control system for the survey will be the 1983 North American Datum (NAD83) Zone-VI California State Plan Coordinate system. Land survey services include the tie-out of existing survey centerlines, property corner monuments, benchmarks, or other existing survey markers. The scope of work will include the following items:
• Boundary Survey for APN 906-140-075 and 906-140-076. This will include centerline data for Washington Ave., Kalmia St., 1st, 2nd, New Clay, 4th, and 5th Ave. shall be located, including right-of-ways.
• Record of Survey the compile previously acquired boundary survey data used in the bound- ary survey and prepare a Record of Survey map, in accordance with theState Land Surveyor’s Act and Riverside County requirements.
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Murrieta Creek MDP Line F,
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• Monumentation: Upon approval of the Record of Survey by the County Surveyor, PLSI shall set new boundary corner monuments in accordance with the Record of Survey Map. • T opography Surveyto be conducted for streets and interim channel. Street improvements along Washington Ave and Kalmia St will utilize traditional ground surveying methods. The drainage channel shall also use traditional ground surveying methods at approximately 50’- 100’intervals based on reasonable accessibility and line of sight across the channel. Survey includes, but not limited to, existing manholes, valve covers, power poles, culverts at Calle Estancia and Washington Ave., wing walls and outlet structure on southwest side of Wash- ington, two storm drain systems in the earthen channel and dip all sewer manholes. Spot elevations will be gathered within the project area for comparison check against existing topography by others.
• Augmented T opography Mapwill be prepared using data gathered during the boundary survey and topography survey. The AutoCAD drawing file will be provided for use by client for this project. Project will be tied to an NA VD 88 benchmark with 1’ contour intervals and a 1”=40’ scale.
5. Existing Utility Research & Coordination
The Project Team will coordinate with the City of Murrieta to obtain base mapping for utilities.
The City of Murrieta will be responsible for contacting the utility agencies to obtain base mapping.
Additionally, the Project Team will research which utilities are within an existing easement and which utilities are under a franchise agreement. Based on the utility base maps received from the utility agencies, a utility base map CAD file will be prepared. The Project Team plans to provide the following notifications to document communication:
1st Notification will occur twice during the project timeline. The 1st Notification will occur when the notice to proceed is issued. The 2nd Notification will occur when the Project Design Report is submitted to the City of Murrieta.
3rd Notification will occur three times during the processing of the 35% Plans.
6. Utility Potholing / Utility Investigation
The Project Team will utilize KIP Construction to pothole existing utilities that would be affected by the proposed channel and roadway improvements to confirm alignment and vertical information and conformance with As-Built plans. The Project Team will develop a pothole exhibit that identifies a total of 5 potholes. The Project Team expects one (1) pothole in Calle Estancia and four (4) in Kalmia Street. The five (5) potholes will use Hydro or Air and Vacuum Excavation Potholing with Vacuum Excavation. This is a specialized process of digging a test hole to expose underground facilities with the use of high-pressure water or air to gently remove soil covering an underground utility for the purpose of positively locating, identifying, and mapping the utility. The exposed utility will be surveyed to record spatial coordinate location, elevation data, type of utility, and pipe/conduit/facility material. This data will be included in the site topographic survey data and reflected on the base file map and improvement plans. 11 687
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7. Right of Way Needs Identification
The Project Team will provide a plan view map exhibit corresponding to the selected alternative showing the right of way acquisition needed to construct the proposed improvements. The exhibit will show the existing public easements and right of way and the easements and right-of-way needed for the proposed improvements. An exhibit will be provided for each alternative. Exhibits will show existing ROW, proposed ROW, easments, property lines, dimensions, owner’s names, APNs, and utilities with prior rights. Exhibit content is defined by section B.7 of the RFQ. The exhibit will be prepared at a scale of 1”=40’. This task does not include a right-of-way certification, appraisal, or acquisition services. The Project Team will request title reports as needed from the City of Murrieta. This is by request of the City of Murrieta. Four (4) title reports are anticipated by the Project Team for R/W needs. Note that six (6) title reports are anticipated for boundary survey making the expected project total ten (10) title reports. This clarification is provided to avoid confusion with other references to the number of expected title reports in the RFQ response and scope documents.
8. 35% Conceptual Design Plan
The Project Team will prepare a 35% storm channel design plan equivalent to a 35% design plan set for the proposed channel system improvements. The preliminary plan set will provide the proposed site grading, facility sizing, horizontal alignment, vertical profile, location of proposed storm drain laterals and curb inlet catch basins, necessary walls and structures, and roadway improvements.
The channel plans will be developed using the RCFC&WCD Drafting Manual and the Guidance for Partner Led Project. The improvement plans will be prepared at a scale of 1”=20’ as required by RCFC&WCD. Preliminary detail drawings will be provided to show relocation and reconfiguration of existing utilities to facilitate construction of proposed improvements. The street improvement plans will be developed at 1” = 40’ scale and will utilize City of Murrieta Border and standards as required. The digital topographic base map and/or aerial photography obtained by the Project Team will be used as background data for the project. It is anticipated that the plans set(s) will include the following:
1. 35% Line F Channel Plans: A total of 12 Sheets are anticipated which consist of 1 Title Sheet, 6-8 Plan & Profile Sheets, 1-2 Detail Sheets, 1 Survey Control Sheet as required by the RCFC&WCD Drafting Manual.
2. 35% Murrieta Creek and Line F Channel Confluence: Due to the challenges with connecting to Murrieta Creek, a grading plan and Maintenance Plan will be developed for the project.
This is typically not required until 60% per the RCFC&WCD Drafting Manual. However, the design is imperative to coordinate disturbance limits, maintenance & operation limits with RCFC&WCD and the Resource Agencies.
3. 35% Kalmia Street Improvement Plans: A total of 8 Improvement Plan Sheets will be required for the redesign of Kalmia Street. This will include a title sheet, 4 Plan and Profile Sheets, 1 Cross Section Sheet, 1 Intersection Sheet and 1 Detail Sheet.
4. Project Design Report: The Project Team will advance the Project Design Report to com- plement the 35% Plan Set. The PDR is living document through Phase 1 work bringing together all project communication and technical writing (memos) together into one coherent written document that supports all plans, analysis and feasibility considerations for proposed alternatives.
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Murrieta Creek MDP Line F,
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9. Project Management & PDT Meetings
The Project Team will provide project management services and attend/facilitate PDT meetings on a time and material basis. The scope assumes a fixed pool of hours that are expected to be need for the project. A total of 180 hours are budgeted for project management and PDT meetings.
The Project Team will bill for these hours as they occur on a time and material basis.
List of Deliverables
The following deliverables will be delivered to the City of Murrieta through the execution of the above prescribed scope of work:
• Project Development Team Meeting Agendas, Schedule, & Meeting Minutes • Project Design Report and Alternative Analyses, includes the following technical memos:
– Hydrology Technical Memo
– Hydraulic Technical Memo for Pre-Project Floodplain
– Alternative Assessment & Design Technical Memo
• CEQA & NEPA Document(s)Draft IS/MND, Final IS/MND
– Air Quality and Greenhouse Gas Analysis
– Energy Impact Analysis
– Cultural Resources & Paleontology Assessment
– Construction Traffic Analysis
– Noise Analysis
– Habitat Assessment & MSHCP Compliance Report
– Jurisdictional Delineation
– Resource Agency Permits
* 401 Permit
* 404 Permit
* 1602 permit
• Site Topographic Survey and Base file Map in CAD
• Geotechnical Engineering Report
• 35% Line F Channel Plans
• 35% Kalmia Street Improvement Plans
• 35% Engineer’s Construction Cost Estimates
• Outline for Special (Technical) Provisions
• Right of Way Needs Identification Exhibit
Assumptions and Exclusions:
To further clarify our proposed scope of services and avoid misunderstandings we provide the following list of assumptions and exclusions that are a part of this scope of work and reflected 13 689
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W ashington Ave. to Murrieta Creek - Phase 1
in our fee. All services to be provided by the JS&TM team are explicitly stated. No additional services are implied.
• Survey pricing does not include filing Record of Survey or other recorded maps should mon- umentation be found missing.
• Task 6 (Utility Potholing / Utility Investigation) pricing allows for 5 potholes • No LiDAR data included.
• No tree survey (species, DBH, height etc.) included
• All fieldwork will be done in one mobilization during normal weekday working hours. • About 2 days will be required to complete drilling.
• Access to the storm drain alignment will be available during normal weekday working hours at no additional cost to us.
• Professional traffic control will NOT be required during the geotechnical investigation. • Only field services including land survey, and geotechnical drillers services will be subject to prevailing wages as defined in Labor Code Sections 1770-1780. • The cost estimate and scope of services do not include environmental study of soil and ground- water and any inspection and/or testing services during construction. • Structural engineering evaluations may require performing preliminary structural analysis and design calculations. The need for the service will be discussed during the preliminary design.
14 690
01375.0001/962082.2 145610
EXHIBIT "B"
SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
There are no special requirements for this project.
691
01375.0001/962082.2 145610
EXHIBIT “C”
SCHEDULE OF COMPENSATION
I. City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include
A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.
B. Line items for all materials and equipment properly charged to the Services.
C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.
D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.
II. The total compensation for all Services shall not exceed the Contract Sum as provided in the Cover Page of this Agreement.
III. Consultant’s billing rates for any hourly Services are attached as Exhibit C -1. In connection with the services provided pursuant to the terms of this Agreement, City will pay Consultant upon City’s receipt of a written invoice provided by Consultant no more than monthly. City will pay Consultant for work completed, billed in increments of six minutes (0.1 hours), not to exceed the Contract Sum. The City will reimburse the Consultant for reasonable out -of-pocket expenses related to performing services on behalf of the Client that are approved in advance in writing by the City such as mileage, copies, binding costs, postage, parking, travel, and lodging expenses as part of the not to exceed Contract Sum. To receive reimbursements, the Consultant must provide the City with a receipt and a description of the expense incurred along with the invoice.
No mark up on expenses may be added.
692
PHASE 1 PROJECT DESIGN REPORT, CEQA/NEPA AND ENVIRONMENTAL PERMITTING , 35% DESIGN PLANS & COMPLEMENTARY REPORTS & SURVEYS
FEE FOR TASK DESCRIPTION OF PROJECT TASKS
1.1) RESEARCH AND REVIEW OF EXISTING REPORTS, PLANS, AND MAPPING $5,000.00 WORK INCLUDES RESEARCH OF EXISTING STORM DRAIN, STREET, RECORD MAPS AND UTILITY PLANS. RESEARCH FOR DRAINAGE REPORTS & HYDROLOGY MODELS WILL BE PERFORMED AT RCFC&WCD AND CITY OF MURRIETA. A REQUEST FOR THE RICK
ENGINEERING FLOODPLAIN MODEL FOR KALMIA
1.2) RIGHT-OF-WAY, UTILITY AND ENVIRONMENTAL CONTRAINTS MAP $2,000.00 A CONSTRAINTS MAP WILL BE DEVELOPED FOR THE 2,500 LINE F COORIDOR TO INDENTIFY ALL POTENTIAL RIGHT-OF-WAY, UTILITY AND ENVIRONMENTAL CONSTRAINTS THAT ARE EXISTING. THIS INCLUDES SEWER LINES, POWER POLES, STORM DRAIN OUTLET
PIPES, SENSITIVE VEGETATIVE AREAS
1.3) HYDROLOGY MODELLING RECREATION $12,000.00 USING THE RCFC&WCD STUDY FOR LINE F 2/24/1997, THE TEAM WILL RECREATE THE HYDROLOGY MODEL FOR LINE F. THIS WILL BE
USED TO ASSESS THE EXISTING FLOODPLAIN
1.4) PRE-PROJECT FLOODPLAIN ASSESSMENT $12,500.00 USING HEC-RAS 2D THE PROJECT TEAM WILL ASSESS THE EXISTING FLOODPLAIN TO DETERMINE THE EXISTING SHEET FLOW CONDITIONS THAT BREAKOUT FROM THE EXISTING CHANNEL. THIS WILL ESTABLISH A BASELINE CONDITION.
1.5) ALTERNATIVE ASSESSMENT (100 SCALE DRAWINGS) (4 TOTAL) $24,000.00 THE TEAM WILL DEVELOP 4 POTENTIAL ALTERNATIVES THAT WILL BE DESIGNED AT A 100 SCALE WHICH INCLUDE PLAN AND PROFILE.
THE DESIGN WILL ASSESS THE FOLLOWING ALTERNATIVES: 1) RECTANGULAR CONCRETE CHANNEL PER MDP, 2) RECANTANGULAR SOFT BOTTOM CHANNEL, 3) TRAPEZOIDAL CONCRETE SIDE SLOPE SOFT BOTTOM CHANNEL AND 4) COMBINED EARTHEN CHANNEL &
SUBSURFACE STORM DRAIN OVERFLOW SYSTEM
1.6) ASSESSMENT OF POTENTIAL SPECIAL CONCRETE STRUCTURES $8,500.00 THE TEAM WILL UTILZIE THE STRUCTURAL CONSULTANT TO ASSESS THE POTENTIAL CONCRETE STRUCTURAL SECTIONS REQUIRED FOR CHANNEL SYSTEMS. THESE WILL BE BASED ON ROUGH ORDER ANALYSES.
1.7) FLOODPLAIN ASSESSMENT & HYDRAULIC ANALYSES FOR ALTERNATIVES $18,000.00 THE TEAM WILL PEFORM HYDRAULIC MODELS FOR THE 4 PROPOSED ALTERNATIVES USING HEC-RAS 1D OR WSPG MDOELS TO DETERMINE THE HYDRAULIC OPERATION OF THE CHANNEL SYSTEM.
1.8) ALTERNATIVE COMPARATIVE ANALYSES & COST ESTIMATES $14,000.00
THE TEAM WILL DEVELOP A MATRIX USING CHARACTERISTICS, SUCH AS KALMIA STREET IMPACTS, UTILITY CONFLICTS, FLOOD PROTECTION, HYDRAULIC EFFICIENCY, ENVIRONMENTAL CONTRAINTS, R/W CONTRAINTS AND COST TO EVLAUTE THE 4 ALTERNATIVES. USING A WEIGHTED FACTORING SYSTEM, APPROVE BY THE CITY, THE ANAYSES WILL BE USED TO PROVIDED A RECOMMENDED ALTERNATIVE.
1.9) PROJECT DESIGN REPORT $7,300.00
A PROJECT DESIGN REPORT WILL BE DEVELOPED FOR THE PROJECT DOCUMENTING THE HYDROLOGY, HYDRAULIC AND ALTERNATIVE ASSESSEMENT. THE PROJECT DESIGN REPORT WILL PROVIDED A RECOMMENDED ALTERNATIVE TO BE USED FOR THE 35% PLAN SET.
2.1) PROJECT DESCRIPTION & TECHNICAL STUDIES
2.2) FIELD INVESTIGATION, JURISDICTIONAL DELINEATION & MAPPING
2.3) PERMIT APPLICATION PACKAGE FOR RESOURCE AGENCIES
2.4) CULTURAL RESOURCE ASSESSMENT
2.5) INITIAL STUDY PREPARATION
2.6) FINAL INITIAL STUDY/MITIGATED NEGATIVE DECLARATION
3.1) FIELD EXPLORATION Field Exploration will be performed by the Project Team along the bottom or adjacent to the existing Line F Interim Channel and Kalmia Street. A total of 6 borings are proposed.
3.2) GEOTECHNICAL REPORT & LABORTORY TESTING The Project Team will prepare a Geotechnical Report that documents the researched performed, soil conditions for the proejct and the labortary results to complement the project.
4.1) RESEARCH OF RECORD MAPS
4.2) BOUNDARY SURVEY & BASE MAP
4.3) FIELD SURVEY OF EXISTING STRUCTURES & KALMIA ROAD SECTIONS
4.4)TOPOGRAPHY CHECK & RE-CERTIFICATION
5.1) UTILITY AGENCY OUTREACH (REMOVED BY CITY REQUEST)
5.2) UTILITY BASE MAPPING
5.3) 1ST UTILITY NOTIFICAITON FOR PREFERRED ALTERNATIVE
5.4) 2ND UTILITY NOTIFICAITON FOR 35% PLANS
6.1) UTILITY CONFLICT MAP & POTHOLE EXHIBIT $500.00 The Project Team will develop an exhibit identifying the potholes requried for the project.
6.2) POTHOLE REPORT (5 POTHOLES) $6,000.00 A total of 5 potholes will be performed for the project based on a no-fee encorachment permit.
7.1) TITLE REPORTS FOR IMPACTED PARCELS (10 TITLE REPORTS) (REMOVED BY CITY REQUEST) $0.00 The City will obtain Title Reports (6) for the boundary survey and Title Reports (4) as required for right-of-way acquisition.
7.2) RIGHT-OF-WAY EXHIBIT $6,800.00 The Project Team will prepare a Right-of-Way exhibit identifying the project right-of-way and easements acquistions required for the project based on the requirements outline in Section B.7 of the RFQ (up to 4 exhibits - 1 per alternative - per RFQ description).
8.1) 35% PLAN DEVELOPMENT FOR PREFERRED ALTERNATIVE $78,500.00 The 35% Plans to conform to RCFC&WCD Drafting Manual & 30% Plan Set Requirements. Plan will be at a scale of 1"=20' for 2,400' of Open Channel. A total of 12 Sheet are anticipated. This inlcudes a Title Sheet, 6-8 Plan & Profile Sheets, 1-2 Detail Sheet and 1 Survey Control Sheet.
8.2) 35% DESIGN FOR MURRIETA CREEK & LINE F CONFLUENCE $8,500.00 Due to challenges with connecting to Murrieta Creek and the environmental issues a Grading Sheet and Maintenace Plan Sheet are being proposed.
8.3) 35% KALMIA STREET IMPROVEMENT PLANS $25,000.00
This includes redesign fo Kalmia Street @ 1"=40' and connections to Washington Ave, 1st Ave, 2nd Ave, 4th Ave and 5th Ave Intertsection Design.
A total of 8 Sheet are anticipated. This inlcudes a Title Sheet, 4 Plan & Profile Sheets, 1 Cross Section Sheets, 1 Intersection Design Sheet, and 1 Detail Sheet
8.4) 35% PROJECT DESIGN REPORT $7,500.00 The Preliminary Design Report prepared under Task #1 will be updated to be in confirmance with the improvement plans. $467,900.00
9.1) PROJECT MANAGEMENT & PDT MEETINGS $35,100.00 Scope has provided a total of 180 Hours of Project Management and Coordination with City of Murrieta. This includes a total of 18 Monthly Meetings and 8 Coordination Meetings. Time will be billed as incurred based on Time & Materials.
TOTAL PROJECT COST $503,000.00
TASK #3 GEOTECHNICAL INVESTIGATION
TASK #4 SURVEYING & TOPOGRAPHICAL MAPPING
TASK #5 EXISTING UTILITIES RESEARCH & COORDINATION
TASK #6 POTHOLING
TASK #7 RIGHT-OF-WAY
$20,750.00
$32,750.00
TASK #8 PRELIMINARY DESIGN (35% PLAN SET)
TASK #9 PROJECT MANAGEMENT & PDT MEETINGS
PROJECT TASKS
TASK #1 PRELIMINARY DESIGN REPORT
$6,000.00 A utility base map will be created for the project. A field reconnaissance will be peformed to document and valdiate all existing utilities. A photograph log will be perpared for the project. The City will provide base files for all existing utilities by reaching out to utility entities. $172,300.00
Our Environmental Team will be performing all the tradtional studies required to comply with CEQA and NEPA. Addtitionally, field survey will be conducted to assess the biological contraints within and adjacent to the proposed disturbance footprint of the project. The project will commence with the preparation ofa project description and teh required tehcnial studies. After developing a juridictional contraints map, The Project Team will work together to assess channel alternatives, environemtal impacts and mitigation measures for the project. The findings will be used to submit permit application to the resource agencies. The Project Team will develop an Initial Stuy with teh anticipation of processing a Mitigated Negative Declaration. The Environmental Team eill also prepare a Catergorical Exemption under NEPA.
The Project Team will utilzie an aerial/topographical map dated 12/2018 as the design data. Traditional survey methods will be used along the channel and Washington Avenue & Kalmia to complement the aerial topogprahy. Moreover, the scope will include a boundary survey and a record of survey for the project area. Utilizing the aerial/topogprahical map for the area will allow PRoejct Team to survey the existing channel with triaditional survey methods which will provide an accurate depiction of the exisitng channel.
TASK #2 CEQA AND NEPA DOCUMENTATION & PERMITTING PROCESS 693
City of Murrieta
June 19, 2025
Re: Line F (Phase 1) – Project No. 25-489 / CIP 13059
Dear Mr. Frohman,
Thank you for considering JLC Engineering & Consulting, Inc. to provide engineering services for the above-mentioned project. Please find enclosed our proposed Hourly Fee Rate Schedule. The Fee Rate Schedule contains rates for JLC Engineering and for JLC’s subconsultants.
Please do not hesitate to call if you have any questions. We look forward to working with you.
Sincerely,
JLC Engineering & Consulting, Inc.
Joseph L. Castaneda, PE
Principal
JC/mc
1 694
FEE SCHEDULE FOR January 1, 2025
JLC HOURL Y FEE RATE SCHEDULE
The following rates shall apply to services provided on a time-and material basis. Rates are reflected hourly.
General
President / Principal $185.00
General Administration / Clerical $105.00
Civil
Project Manager $155.00
Senior Project Engineer $120.00
Project Engineer $105.00
Design Engineer / Designer $100.00
CADD Designer $85.00
Senior CADD Drafter $75.00
CADD Drafter $70.00
Construction Management
Resident Engineer $120.00
Assistant Resident Engineer $110.00
Field Inspector $85.00
Survey
Three Person Survey Crew/GPS Crew $255.00
Two Person Survey Crew / GPS Crew $230.00
One Person Survey / GPS Crew $200.00
Senior Project Manager / Project Manager $135.00
Survey Analyst $110.00
GIS Specialist $95.00
Litigation Consultant / Expert Witness $375.00
Courier Services $80.00
REIMBURSABLE EXPENSES
The following expenses will be billed at cost plus 12%:
Reproduction Services:
Includes blueprinting, copying, printing and plotting.
Rental Equipment and Fees:
Any equipment rental and any fees advanced by our firm including plan check and filing fees.
Commercial Delivery Services:
Including Express Mail, Federal Express, UPS, and independent courier services.
In-House Pick-Up and Delivery:
These services provided by our firm will be reimbursed at $55.00 per hour. In addition, mileage will be billed at $0.575 per mile with no markup.
Travel Expenses:
Mileage to and from the job site will be billed at a rate $0.575 per mile with no markup.
Per Diem:
Per diem for overnight stays will be billed at $150.00 per day, per man. 2 695
FEE SCHEDULE FOR January 1, 2025
SUBCONSULTANT HOURL Y FEE RATE SCHEDULE
The following rates shall apply to services provided on a time-and material basis. Rates are reflected hourly.
JS & TM Engineering
Principal Engineer $195.00
Project Engineer $195.00
Senior Designer $195.00
MNS
Project Manager $260.00
Principal Regulatory Specialist $235.00
Principal Planner $195.00
Senior Planner $180.00
GIS Technician $175.00
Senior Biologist $160.00
Associate Planner $150.00
Regulatory Specialist $145.00
Plumb Line Surveying
Three Person Survey Crew/GPS Crew $255.00
Two Person Survey Crew / GPS Crew $230.00
One Person Survey / GPS Crew $200.00
Senior Project Manager / Project Manager $135.00
Survey Analyst $110.00
Kip Construction
Principal $185.00
Field Technician $85.00
Rende Consulting Group
Principal $195.00
Note: Reimbursable expenses for subconsultants will be billed in accordance with the terms specified in the JLC Engineering Fee Rate Schedule.
3 696
COMPREHENSIVE FEE SCHEDULE
Geocon West, Inc.
Geotechnical Engineering Services
The following pages contain the comprehensive fee schedule for Geocon West, Inc., our geotechnical engineering subconsultant. 4 697
41571 Corning Place, Suite 101 ■ Murrieta, California 92562 ■ Telephone 951.304.2300 ■ www.geoconinc.com 2025 SCHEDULE OF FEES – RV25
Rates will increase by 3% at the start of each year, rounded up to the nearest dollar, for the duration of the contract.
Professional Services
Word Processor/Non-Technical Assistant/Draftsman/Dispatcher .............................................................................................................. $100/hr Engineering Assistant/Lab Technician. ........................................................................................................................................................ $100/hr Engineering Field Technician (Earthwork/Compaction Testing/Backfill) .................................................................................................... *$90/hr Special Inspector (Concrete, Rebar, Masonry, Welding, etc.) ..................................................................................................................... *$95/hr Engineering Inspector (Bottom Approval / Shoring / Foundations / Piles) ................................................................................................. *$115/hr LA City Deputy Grading Inspector (Bottom Approval / Shoring / Foundations / Piles) ............................................................................... *$130/hr Staff Engineer/Geologist ............................................................................................................................................................................. *$130/hr Senior Staff Engineer/Geologist .................................................................................................................................................................. *$140/hr Project Engineer/Geologist ......................................................................................................................................................................... *$150/hr Senior Project Engineer/Geologist .............................................................................................................................................................. *$160/hr Senior Engineer/Geologist .......................................................................................................................................................................... *$175/hr Associate Engineer/Geologist ..................................................................................................................................................................... *$200/hr Principal Engineer/Geologist/Litigation Support .......................................................................................................................................... $400/hr Attorney Fees (General) ................................................................................................................................................................................ $500/hr Deposition or Court Appearance .................................................................................................................................................................. $550/hr Overtime/Saturday Rate/Night Rate (7pm – 6am w/ 8-Hour minimum per call out) ............................................... 1.5 X Regular Hourly Rate Sunday and Holiday Rate ............................................................................................................................................... 2 X Regular Hourly Rate Minimum Field Services Fee per call-out, 4 Hours (if 4 hours or less), 8 Hours (if more than 4 hours and less than 8 Hours) Short-Notice Cancellation, 4 Hours (if after 4 pm of the day prior to the scheduled inspection time) Short-Notice Cancellation, 4 Hours (upon or after arrival at jobsite) *Prevailing Wage (PW) California Labor Code §1720, et. Seq add $55/hr Travel
Personnel .................................................................................................................................................................................. Regular Hourly Rate Subsistence (Per Diem) ...................................................................................................................................................... Quote Based on Location Vehicle Mileage ..........................................................................................................................................................................................0.75/mile Equipment, Materials
Nuclear Density Gauge/Sand Cone Testing Equipment .......... *$10/hr Dynamic Cone Penetrometer .............................................. $250/day Vehicle ..................................................................................... *$10/hr Generator or Air Compressor .............................................. $200/day Special Inspection Equipment ................................................. *$10/hr Hand-Auger ............................................................................. $50/day Pick-up Truck ........................................................................ $175/day Lath Bundle ............................................................................. $100/ea 55-Gallon Drum ......................................................................... $75/ea Manometer .......................................................................... $200/day AC Cold Patch .......................................................................... $50/bag Mobile Laboratory with Lab Technician ............................. $1,900/day Gravel ...................................................................................... $50/bag Perforated 3” PVC Pipe ........................................................... $55/10ft Quick Set PCC Patch ................................................................ $50/bag Sand Cone Testing Equipment ................................................... $10/hr Sand ........................................................................................ $50/bag Schmidt Hammer ................................................................. $100/day GPS Unit ................................................................................ $200/day Soil Sample Tube ...................................................................... $15/ea Battery-Powered Pump ........................................................ $100/day Temp Marking Paint ................................................................ $20/can Coring Machine (concrete, asphalt, masonry) ..................... $350/day Water Buffalo ......................................................................... $100/ea Double Ring Infiltrometer ..................................................... $250/day Water Level Indicator ............................................................ $75/day Drive-Tube Sampler ................................................................ $75/day 698
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Laboratory Tests*
COMPACTION CURVES SOIL AND AGGREGATE PROPERTIES
(D698/D1557/T99/T108) 4-inch mold ..................................... $300/ea (D422/T88) Particle Size, Hydrometer w/out Sieve .................. $250/ea (D698/D1557/T99/T108) 6-inch mold ..................................... $300/ea (C136/D6913/T27) Sieve, Coarse to Fine w/ #200 Wash ........ $175/ea (CT 216) California Impact ....................................................... $300/ea (C136/D6913/T27) Sieve, Coarse or Fine w/ #200 Wash ......... $150/ea Check Point .............................................................................. $125/ea (C136/D6913/T27) Sieve, Coarse or Fine No #200 Wash ......... $125/ea (D1632/CT312) Soil Cement Cyl. Fabrication (Set of 3) .......... $200/set (C117/D1140/T11) Materials Finer than #200 ......................... $115/ea (D1632/CT312) Soil Cement Cyl. Fabrication (Addtl. Spec.) ...... $75/ea (D2216/T265/CT226) Moisture Content ................................... $40/ea (D1633/CT312) Soil Cement Comp. Strength (Set of 3) ......... $350/set (D2487/D2488) Visual Soil Classification ................................... $40/ea (D1633/CT312) Soil Cement Comp. Strength (Addtl. Spec.) ... $125/ea (D2937) Density of In-Place Soil, Drive-Cyl. Method ................. $50/ea SOIL AND AGGREGATE STABILITY (D4943) Shrinkage Factors of Soils, Wax Method ...................... $75/ea (D2844/CT301) Resistance Value ............................................. $350/ea (C131/C535/CT211) L.A. Abrasion Resistance ............................ 250/ea (D2844/CT301) Resistance Value, Treated .............................. $350/ea (C142/T112) Clay Lumps and Friable Particles ........................... 155/ea (D1883) California Bearing Ratio ............................................. $600/ea SOIL AND AGGREGATE PROPERTIES (CONTD.) (C977) Stabilization Ability of Lime ............................................ 185/ea (C123/T113) Light Weight Particles .......................................... $250/ea (D1883) Calif. Bearing Ratio (Army Corp of Engineers) ............. 600/ea (D3744/CT229/T210) Durability Index Fine .............................. $200/ea CHEMICAL ANALYSIS (D3744/CT229/T210) Durability Index Coarse.......................... $200/ea (G187/CT643/T288) pH and Resistivity .................................... $175/ea (CT227) Cleanness Value .......................................................... $200/ea (D4972/T289) pH Only ............................................................... $75/ea (D4791) Flat & Elongated Particles ........................................... $175/ea (CT417) Sulfate Content ........................................................... $125/ea (D693/CT205) Percent Crushed Particles ................................. $200/ea (CT422) Chloride Content ........................................................ $125/ea (D5821) Percent. of Fractured Particles, Coarse Aggregate ..... $200/ea (D2974) Organic Content ......................................................... $100/ea (C40/CT213/T21) Organic Impurities ....................................... $100/ea PERMEABILITY, CONSOLIDATION AND EXPANSION (C235) Soft Hardness (Scratch Hardness) ................................ $125/ea (D5084) Permeability, Flexible Wall ......................................... $270/ea (C88/CT214/T104) Sulfate Soundness ...................................... $500/ea (D5856) Permeability, Rigid Wall ............................................. $260/ea (C1252/T304) Uncompact. Void Content, Fine Aggregate ....... $175/ea (D2434) Permeability, Constant Head ..................................... $280/ea (C127/CT206/T85) Coarse Specific Gravity ............................... $150/ea (D2434) Permeability, FHA Slab-on-Grade............................... $110/ea (C128/CT207/T84) Fine Specific Gravity ................................... $175/ea (D2434) Permeability, Hourly .................................................... $55/ea (D854/CT209/T100) Specific Gravity of Soil ............................. $200/ea (D2435/T216) Consolidation (6 pts. w/ Unload) ...................... $400/ea (C29/CT212/T19) Unit Weight & Percent Voids ....................... $125/ea (D2435/T216) Consolidation Additional Point w/ Unload ......... $90/ea (D2419/CT217/T176) Sand Equivalent ..................................... $150/ea (D4546) Swell/Compression Testing & Density ....................... $125/ea (D4318/CT204/T89/T90) Plastic Index (Plastic/Liq. Limit) ....... $250/ea (D4546) Swell/Settlement Testing & Density (ea. addtl. pt.) .... $85/ea (D4318/CT204/T89) Liquid Limit .............................................. $125/ea (D4546) Swell/Settlement Testing & Density (County) ............ $100/ea (D4318/CT204/T90) Plastic Limit .............................................. $125/ea (D4546) Swell/Settlement Testing & Density (FHA) .................. $90/ea (C330) Spec. for Lightweight Aggregates, Struc. Concrete .......... Quote (D4829) Expansion Index of Soils ............................................. $250/ea SHEAR STRENGTH STEEL TESTING (D2166) Unconfined Compression ........................................... $100/ea Reinforcing Steel Tests: (D3080/T236) Direct Shear (3 points) ..................................... $350/set (A370) Tensile Strength & Elongation (D3080/T236) Direct Shear Addtl. Points/ea. residual pass ..... $125/ea #11 Bar & Smaller .................................................... $100/ea (D2850) Unconsolidated-Undrained Triaxial Shear .................. $115/ea #14 Bar ..................................................................... $125/ea (D2850) Unconsolidated-Undrained Triaxial Staged ................ $160/ea #18 Bar (Proof Test) ................................................ $150/ea (D4767) Consolidated-Undrained Triaxial Shear ...................... $265/ea (A370) Bend Test (D4767) Consolidated-Undrained Triaxial Staged .................... $340/ea #11 Bar & Smaller ...................................................... $50/ea (EM1110) Consolidated-Drained Triaxial Shear........................ $375/ea #14 & #18 Bar ............................................................ $75/ea (EM1110) Consolidated-Drained Triaxial Staged ...................... $480/ea (A370) Tensile - Mechanically Spliced Bar MASONRY**
#11 Bar & Smaller .................................................... $175/ea Concrete Block Test (Sets of 3 Required):
#14 Bar & Larger ...................................................... $225/ea (C140) Unit Weight Moisture Content & Absorption .............. $350/ea (A370) Tensile – Electric Resist. Butt Splice w/ Control ........... $175/ea (C140) Moisture Content/Absorption (ea. addtl. specimen) .. $125/ea (A370) Straightening of bar (if required) ................................... $50/ea (C140) Compression Test......................................................... $300/ea Structural Steel Tests: (C140) Compression Test (ea. addtl. specimen) ...................... $125/ea (A370) Machining & Prep of Test Specimen ........................ Cost + 20% (C426) Linear Drying Shrinkage ................................................ $350/ea (A370) Tensile Strength & Elongation (C109/UBC 21-16) Mortar Cylinder (2”x4”) ............................... $30/ea Up to 200,000 lbs ..................................................... $125/ea (C942) Grout Prism (3”x3”x6”), trimming included .................... $35/ea 200,000 – 300,000 lbs .............................................. $150/ea Masonry Prism (Assemblage):
300,000 – 400,000 lbs .............................................................. $175/ea (C1314) 8”x8”x16” – 8”x12”x16” ............................................. $200/ea Pre-stressing Wire & Tendon Tests: (C1314) 8”x16”x16” – 10”x12”x16” ......................................... $225/ea (A421) Tensile Strength, Single Wire ....................................... $175/ea (C1314) 12”x12”x16” – 12”x16”x16” ....................................... $250/ea (A416) Tensile Strength, 7-Wire Strand ................................... $200/ea (C1314) Larger than 12”x16”x16” ............................................... Quote 699
- 3 -
Laboratory Tests* (continued)
High Strength Bolt, Nut, & Washer Tests: Brick Test (Set of 5 Specimens):
(A325/A490) Tensile Test on Bolts ........................................... $100/ea (C67) 24-Hour Absorption, Cold Water ................................... $250/set (A563) Proof Load Test on Nuts ............................................... $100/ea (C67) 5-Hour Absorption, Boiling Water ................................. $250/set (A325/A490) Hardness Test on Bolts ......................................... $50/ea (C67) Compression Test or Modulus of Rupture ..................... $300/set (A536) Hardness Test on Nuts ................................................... $50/ea (C67) Each Additional Specimen ............................................... $100/ea (F436) Hardness Test on Washers ............................................. $50/ea CONCRETE** Weld Specimen Tests: Mix Designs:
(E164) Ultrasonic Examination .................................... Quote (ACI211/ACI214) Concrete Mix Design ..................................... $450/ea Machining & Prep of Test Specimen .................................... Cost + 20% (ACI211/ACI214) Review of Concrete Mix Design .................... $450/ea (E381) Macrotech Test (3 Faces) .................................................. $355 (C192) Concrete Trial Mix (includes equipment & labor) ......... $650/ea ASPHALT TESTING Concrete Properties:
Asphalt Properties: (C39/CT521/T22) Comp. Strength, Concrete Cyl. ....................... $30/ea (D2726/CT308/T166) Bulk Spec. Grav. Compacted HMA ........ $100/ea (C42/CT521/T22) Comp. Strength, Concrete/Gunite Core ......... $60/ea (D1560/CT366) Stabilometer Value (HVEEM) ......................... $225/ea (C78/CT523) Flex. Strength of 6”x6”x21” Concrete Beam ....... $125/ea (D2041) Theoretical Max Specific Gravity ................................ $200/ea (C174) Length Measuring of Drilled Cores ................................ $100/ea (D5444) Sieve Analysis of Extracted Asphalt ............................ $250/ea (C1140) Shotcrete Panel-Coring & Testing (Set of 3) ............... $350/set (D6307/CT382) Percent Asphalt, Ignition Method .................. $175/ea (C1140) Shotcrete Panel (each addtl. specimen) ..................... $125/ea (D1188) Unit Weight of Asphalt Core ........................................ $95/ea (C496) Static Modulus of Elasticity ........................................... $250/ea MISCELLANEOUS TESTING SERVICES (C496) Drying Shrinkage (Set of 3, up to 28 days) ................... $650/set Calibration of Hydraulic Ram: (C642) Spec. Gravity, Absorp., Voids in Hardened Concrete ...... $95/ea 100 Ton & Under ..................................................................... $250/ea (F1869) Vapor Emission Rate, Concrete Subfloor....................... $50/ea 101 Tons – 200 Tons ................................................................ $350/ea Use of Universal Testing Machine:
UTM with One Operator ......................................................... $400/ea Additional Technician .............................................. Regular Tech Rate Spray Applied Fireproofing: *2X Surcharge on rush turn-around for laboratory testing. (E605/E736) Fireproofing Oven Dry Density/Thickness .......... $125/ea **Fee applies for sample storage, testing, or disposal.
1. Listed are typical charges for the services most frequently performed by Geocon. Prices for unlisted services as well as spec ial quotations for programs involving volume work will be provided upon request. Laboratory test prices shown are for laboratory work only, and include reporting of routine results not calling for comments, recommendations or conclusions.
2. Sampling and testing is conducted in substantial conformance with the latest applicable or designated specifications of the American Society for Testing and Materials, Caltrans, American Association of State Highway and Transportation Officials, or other per tinent agencies.
3. Saturday, night work, and overtime hours are charged at time and one -half; Sundays and holidays at double time. Per diem is $155.00 per day when location of work dictates.
4. Equipment and materials will be billed at cost plus 15%. Outside services including subcontractors and rental of special equi pment are billed at cost plus 15%. Hourly services are billed portal to portal from closest office in accordance with the stated ho urly rates herein, with a minimum two-hour charge.
5. Invoices will be submitted at four -week intervals. Terms of payment are met upon presentation of invoice. Invoices become delinquent thirty (30) days from invoice date and subject to one and one -half percent (1 -1/2%) service charge per month, or the maximum rate allowed by law, whichever is lower. If Client objects to all or any portion of any invoice, Client will so notif y Geocon in writing within fourteen (14) calendar days of the invoice date, identify the cause of disagreement, and pay that portion of the invoice not in dispute. The parties will immediately make every effort to settle the disputed portion of the invoice. Payment on deli nquent invoices will first be applied to accrued interest and then to the principal amount. All time spent and expenses incurred (in cluding any attorney's fees and costs) in connection with collection of any delinquent amount will be paid by Client to Geocon per Ge ocon's current fee schedule.
6. Client and Geocon shall allocate certain of the risks so that, to the fullest extent permitted by law, Geocon’s (the term “Ge ocon” includes Geocon’s partners, officers, directors, employees, agents, affiliates, subcontractors and subconsultants) total aggr egate liability to Client is limited to the greater of $50,000 or the total compensation received from Client by Geocon for services rendered on this project, for any and all of Client’s injuries, damages, claims, losses, expenses, or claim expenses arising out of th is Agreement from any cause or causes, including attorneys’ fees and costs which may be awarded to the prevailing party, and Client agrees to indemnify and hold harmless Geocon from and against all liabilities in excess of the monetary limit established above.
7. Client and Geocon shall allocate certain of the other risks so that, to the fullest extent permitted by law, Client shall lim it Geocon’s total aggregate liability to all third parties, including contractors, subcontractors of all tiers, materialmen, and others i nvolved in Client’s project, as well as persons and other entities not involved in the project, to the greater of $100,000 or the total compensation received from Client by Geocon for services rendered on this project, for any and all injuries, damages, cause o r causes, including attorneys’ fees and costs which may be awarded to the prevailing party, and Client agrees to indemnify and hold harmless Geocon from and against all liabilities in excess of the monetary limit established above, including all liability i ncurred by Geocon for acts, errors, or omissions, pursuant to entering into agreements with third parties on behalf of Client in order t o obtain access or entry onto property not owned by Client. Client agrees to notify all contractors and subcontractors of any limitat ion of Geocon’s liability to them, and require them to abide by such limitation for damages suffered by any contractor or subcontrac tor arising from Geocon’s actions or inactions. Neither the contractor nor any subcontractor assumes any liability for damages to others which may arise on account of Geocon’s actions or inactions. 700
01375.0001/962082.2
EXHIBIT "D"
SCHEDULE OF PERFORMANCE
I. Consultant shall perform Services as set forth in Exhibit A.
II. Consultant shall deliver the following tangible work products to the City by the following dates.
Preliminary Design Report by Summer 2026; Environmental Documentation by Spring 2027; 35% Level Design Plans and Bidding Documents by Spring 2027
III. The Department Contact may approve extensions for performance of the Services in accordance with Section 3.2.
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EXHIBIT E
INSURANCE REQUIREMENTS
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if consultant provides written verification it has no employees)
4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.
5. Cyber: Vendor/Consultant shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, or employees. Vendor shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other misuse of data, infringement of intellectual property, invasion of privacy and breach of data.
Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be 702
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limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
6. Technology Professional Liability Errors & Omissions (Only if vendor is providing a technology service (data storage, website designers, etc.,) or product (software providers)
Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Vendor in this agreement and shall inc lude, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property , including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic informatio n. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
a. The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Vendor.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
Primary Coverage
For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non -contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance 703
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and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.
Umbrella or Excess Policy
The Consultant may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non -contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the C onsultant’s primary and excess liability policies are exhausted.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subje ct to a self -insured retention (SIR) or deductible that exceeds $25,000 [fill in the amount for your comfort level for the specific Con sultant and job – it could be much higher, or in the case of a very small Consultant, you might want it lower] unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of Consultant or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts other wise due Consultant to fund the SIR/deductible. Policies shall NOT contain any self -insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City. 704
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Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:
1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the required documents pr ior to the work beginning shall not waive the Con sultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.
Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained , and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
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EXHIBIT F
FEDERAL REQUIREMENTS
(Only applicable if required on cover page of agreement) 706
JUNIPER ST
IVY ST
WASHINGTON AVE
VINEYARD PKY
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GENOVA CT
COPPERHEAD CIR
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DOVE CREEK CT
B ST
A STC
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CHAPS CIR
NOLA ANN PL
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BOOTJACK LN
NARCISO CT
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KALMIA ST
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C K Y D E R B Y W A Y
MEMORIAL WAY
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HAYES AVE
2ND AVE
1ST AVE
CLAY AVE
3RD AVE
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CITY OF MURRIETA
City Council Meeting Agenda
Report
7/15/2025
Agenda Item No. 17.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Scott Agajanian, Economic Development Director
PREPARED BY: Martha Coleman, Management Analyst
SUBJECT:
Development Impact Fee Reduction for Certain Commercial Lodging Land Uses
RECOMMENDATION
Adopt Resolution No. 25-4869 entitled: A Resolution of the City Council of the City of Murrieta, California, Amending Resolution No. 25-4827 to Create A Tiered Development Impact Fee for Commercial Lodging Land Uses Excluding Time Shares, Short-Term Vacation Rentals and Properties Under Fractional Ownership.
PRIOR ACTION/VOTE
On December 5, 2006, the City Council adopted Resolution No. 06-1651, adjusting the City’spublic facilities Development Impact Fee according to the Dodge Building Cost Index or a comparable index as authorized in the Murrieta Municipal Code (Vote: 5-0).
On September 16, 2008, the City Council adopted Resolution No. 08-2107, creating a tiered Development Impact Fee for Commercial Lodging Land Use in the City of Murrieta Council (Vote: 4-0-1).
On April 15, 2025, the City Council approved Resolution No. 25-4827, adopting the Development Impact Fee Schedule (Vote 4-1).
CITY COUNCIL GOAL
Aggressively pursue economic development.
BACKGROUND
The City of Murrieta’s(City) current Development Impact Fee (DIF) program was established in 1998, based on a Master Facilities Plan and Development Impact Fee Calculation Report. Since then, the City has modified its DIFs based on updated Master Facilities Plans and Development Impact Fee studies prepared by financial services consultants and adopted by the City Council. Consistent with State law, Murrieta Municipal Code Chapter 16.36 (Development Code) ensures that impacts associated with new development in the City are properly mitigated through the construction of new public facilities and infrastructure and/or the acquisition of CITY OF MURRIETA Printed on 7/10/2025Page 1 of 3
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Agenda Item No. 17.
land to preserve habitat and open space.
Pursuant to Section 16.36.030 of the Murrieta Municipal Code, a public facilities DIF must be paid for each new building constructed in a non-residential development or new square footage added to a building in a non- residential development, in an amount established by resolution of the City Council, prior to issuance of a building permit for that building. Non-residential developments include commercial, office, and industrial land uses.
The current DIF rate for Commercial Land Use is $13.27/square foot of new building area. This amount applies to all types of commercial zoning, including Regional Commercial, Community Commercial, Neighborhood Commercial, Recreational Commercial, and Professional Commercial. Commercial uses include the general category of retail services and thus include outlets ranging from restaurants to auto repair shops to shopping centers. As such, commercial lodging land uses, such as hotels and motels, currently fall within this category and are required to pay the DIF for Commercial Land Use at a rate of $13.27/square foot per the Fiscal Year 2025/26 Development Impact Fee.
Proposal
Hotels bring visitors to the City who pay Transient Occupancy Tax (TOT) and spend money in local restaurants and businesses, generating Sales Tax, which is one of the City’sprimary General Fund revenue sources to provide essential services. To encourage and attract higher quality hotels to develop in the City of Murrieta, staff recommends once again creating a tiered DIF structure for hotels based on the proposed amenities provided by the hotel being developed. The proposed categories are general quality indicators based on the hotel’s amenities, including, but not limited to, business services, food services, hotel features, and room amenities based on the AAA Diamond Rating System. Although the proposed categories are general quality indicators, this rating system is a commonly accepted industry method of quantifying the quality of a hotel or motel in the travel and tourism industry.
Staff recommends the following DIF structure for commercial lodging land uses:
Category IV (AAA Five Diamond Rating): 0% of the Commercial Land Use DIF/square foot Category III (AAA Four Diamond Rating): 25% of the Commercial Land Use DIF/square foot Category II (AAA Three Diamond Rating): 50% of the Commercial Land Use DIF/square foot Category I (AAA Approved Rating): 75% of the Commercial Land Use DIF/square foot Staff recommends that the City Council adopt the attached Resolution No. 25-4869 to include this proposed tiered DIF structure for commercial lodging land uses into the annual DIF update as adopted by Resolution No. 24-4827, as amended from time to time, to establish an update to the Public Facilities Development Impact Fee Schedule on an annual basis based on the California Construction Cost Index (CCCI). The fee structure is based on a base DIF rate of $13.27 per square foot, with a discount applied for each diamond level the hotel achieves.
Staff evaluated the benefits to the overall community as a result of developing higher-quality hotels. It is anticipated that such hotels will generate an increased amount of: (a) transient occupancy tax, as higher- quality hotels charge higher rates; (b) sales tax, due to the increased sales of goods and services procured by the guests and staff of the hotel; and c) property tax, resulting from increased property values. Additionally, higher-quality hotels will attract other prime developments, further increasing profitable engagement from tourists and business travelers. Encouraging first-rate hotels and developments is consistent with the City CITY OF MURRIETA Printed on 7/10/2025Page 2 of 3
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Agenda Item No. 17.
Council’s goal of promoting economic development within the community.
The City has determined, based on the 2024 Development Impact Fee Study and Master Facilities Plan conducted by Willdan Financial Services, that the tiered public facilities development fee is proper and bears a reasonable relationship to the expected benefit each category of hotel will provide to the city based on the higher-quality development to be constructed.
Staff will determine the category (I, II, III, IV) to be used in calculating the DIF amount for hotel developments.
This decision will be based on the amenities being offered at the proposed hotel, according to the attached AAA Lodging Approval Requirements & Diamond Rating System. A hotel must meet the requirements for each specific category. A developer may apply for reconsideration of the category rating according to the procedures outlined in the City of Murrieta Municipal Code section 16.36.050. Properties excluded from the DIF Reduction Program proposed here include Time-Shares, Short-Term Vacation Rentals, and properties under Fractional Ownership. The final determination of the hotel diamond rating category and the Development Impact Fee will be at the discretion of the Director of Development Services and is appealable only to the City Manager.
FISCAL IMPACT
The City anticipates collecting less total Development Impact Fees (DIF) as a result of the tiered fee amounts for higher-quality hotels. It is also anticipated that higher-standard hotels will generate increased amounts of Transient Occupancy Taxes, along with increased sales and property taxes, which will be offsetting the reduction in DIF. Premium hotels will attract other high-end developments, aligning with the City Council’sgoal of aggressively pursuing economic development.
ATTACHMENTS
1. Development Impact Fee Reduction for Commercial Lodging
2. Resolution No. 25-4869
CITY OF MURRIETA Printed on 7/10/2025Page 3 of 3
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Hotel Requirements
& Diamond Guidelines
Professional On-Site Inspections Since 1937
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TABLE OF CONTENTS
THE INSPECTION PROCESS
Part 1: Apply for an inspection
What to expect during the AAA on-site inspection
Part 2: Fulfill AAA Diamond Program requirements
Diamond Program requirements and Diamond Guidelines – what’s the difference? Part 3: Achieve your AAA Diamond designation
AAA Diamond Program
What the Diamond designations mean
Glossary
Exterior
Public Areas
Guest Rooms
Bathrooms
AAA Four and Five Diamond designations
- F our and Five Diamond Service Expectations
- A AA Hospitality Standards
Section Two
THE LISTING
AAA Hotel Listings: Rich in Inspection Details
Eligibility Criteria for Separate Hotel Listing
FYI Designation
Classifications and Subclassifications
Accessibility
Member Comment Procedures
The AAA Appeals Process
Green Programs
Contact Information
Section Three
AAA Diamond Program
Section One
Hotel Requirements & Diamond Guidelines2
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Hotel Requirements & Diamond Guidelines3
Section One
AAA DIAMOND
PROGRAM
For more than 80 years, our AAA Diamond program has provided independent and trusted travel guidance for our members and B2B travel groups.
AAA’s 62 million members book more than 31% of all paid room nights in North America, and they rely on our assurance that every Diamond-designated property has met our standards for guest safety and housekeeping.
Our team of professionally trained experts perform unannounced inspections that include both physical examination and scientific measurement to ensure cleanliness and conditions that meet member expectations.
54,000 hotels and restaurants are currently Diamond-designated from Approved to Five Diamond based on the quality of the experience, range of amenities and level of hospitality members can expect.
More informative, consistent, and reliable than unverified user ratings, AAA Diamonds help members find the perfect fit for their travel occasion and budget.
Travelers rely on the quick-glance AAA Diamond designation and the full picture descriptive details found in AAA travel information and trip planning tools.
This means exposure for designated properties to AAA members in the resources they use to make travel planning and buying decisions – and eligibility for logo licensing and advertising programs for increased visibility and reach.
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Section Two
THE
INSPECTION PROCESS
The inspection process includes three parts:
1. Apply for an inspection using the form available at AAA.biz/Diamonds.
2. Fulfill AAA Diamond Program requirements and receive the AAA Diamond designation.
3. Achieve your AAA Diamond designation calculated from objective scores recorded during the inspection and subjective elements based on the inspector’s professional experience and training.
By applying for – and/or consenting to – an inspection, you agree to allow AAA to publish your property information and the respective Diamond designation in our digital and printed travel information. Currently listed establishments need not reapply, as our inspectors routinely reassess AAA Diamond properties.
To expedite the application process, we suggest the following approach:
• Verify your property’s eligibility by reviewing the AAA Diamond Program requirements. Properties must meet all Diamond Program requirements to be valid applicants.
• Complete and submit the Hotel Inspection Application (pdf). • Complete and submit the Hotel Application Processing Fee Form (pdf). The nonrefundable application processing fee helps offset the costs of validating property information; it does not guarantee an inspection or influence the outcome.
Important notes:
• If our records indicate past disqualifying issues, you may be asked to provide written documentation and receipts of the corrective action taken since then.
• AAA does not guarantee an immediate inspection of all properties that apply, and we reserve the right to apply priority consideration to those demonstrating the highest degree of AAA member value according to the following criteria:
• P REFERRED LOCATION
• NE WLY BUILT / RENOVATED
• REP UTATION
• HIGH DE GREE OF CLEANLINESS AND COMFORT
• AP PROPRIATELY MAINTAINED CONDITIONS
• We will provide written notice of your application status as soon as possible after completing our review. • If your property is selected for inspection, the unannounced visit will occur within one year of the application date as we have an inspector available in your area.
• Basic listings in AAA travel products are provided without charge to AAA Diamond properties and those designated as FYIs.
PART 1: APPLY FOR AN INSPECTION
For more information, review our Applications FAQ.
Hotel Requirements & Diamond Guidelines4
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For more information, review our Inspections FAQ.
Introduction, Interview
On arrival (unannounced), the AAA inspector will speak with a property representative for a brief, but extremely important, interview to:
• Collect factual information for potential use in AAA travel products. • Be advised by you of any recent changes and/or plans for improvement. • Answer your questions.
What to Expect During the AAA On-Site Inspection
Property Assessment
Following the interview, the inspector will request a tour of all public areas and a cross section of guest rooms.
We strongly encourage owner/management and key personnel to participate during the inspection as our inspector will point out strengths and weaknesses of your property as appropriate*. *This valuable, no-cost dialogue is unique to the AAA inspection process.
FIRST: PROPERTIES MUST MEET ALL AAA DIAMOND PROGRAM
REQUIREMENTS TO BE DESIGNATED AS A AAA DIAMOND PROPERTY.
Assessment Summary
AAA will provide you an Inspection Summary by email which includes your property’s status and the Diamond designation (if applicable)*.
*This valuable information is unique to the AAA inspection process. Additional inspection detail is available for a small fee by request. Visit AAA.com/Diamonds.
Hotel Requirements & Diamond Guidelines5
Diamond Program requirements are common-sense qualifications AAA/CAA members say are essential to their satisfaction and professional operators routinely seek to achieve.
Second, During evaluations, inspectors assess each attribute of the property against a common set of guidelines and assign the most appropriate designation that will provide the best match in meeting AAA member expectations. The property will then be assigned a Diamond designation.
More details on the requirements and designation guidelines are found on the next pages. 715
AAA DIAMOND PROGRAM REQUIREMENTS REFLECT THE MINIMUM ACCEPTABLE STANDARDS AS ESTABLISHED THROUGH MEMBER FEEDBACK*. *This research is unique to the AAA inspection process.
To be designated as a AAA Diamond property, an establishment must pass inspection by meeting the following requirements:
Cleanliness and Condition
1. All f acilities associated with a property are clean and well maintained throughout.
2. At a minimum, each guest unit is thoroughly cleaned, with complete bed and bath linens changed between guest sta ys.
3. Basic h ousekeeping services and supplies are available on request.
4. All in door areas are properly heated, air-conditioned and/or ventilated to ensure guest comfort.
Management and Style of Operation
Businesses will:
5. P rovide AAA/CAA members value in all aspects of operation.
6. C ater primarily to transient rather than residential guests, with four or more private units available for AAA/CAA members.
7. Maintain c ompliance with all local, state and federal codes.
Owners/Operators will:
8. A ssist AAA in the resolution of AAA/CAA member complaints.
9. A ccommodate unannounced AAA property inspections within 20 minutes of notice.
10. C onduct business in a professional and ethical manner — providing attentive, conscientious service to guests.
11. Pla ce AAA/CAA members in AAA inspected guest units only. Overflow buildings or guest units associated with the property, but not inspected by AAA, are not acceptable accommodations.
12. P rovide a responsible representative readily accessible at all times to address guest needs or requests.
13. P rovide guests 24-hour access to communications for emergency or critical information.
Owners/Operators will not:
14. Use A AA branding (logo, Diamond designations, badges) without AAA’s explicit permission.
Exterior and Public Areas
Businesses will have:
15. A ccurate, legible signage in appropriate areas (e.g., entry, corridors, walkways, stairways, landings, parking areas).
16. Good illumination in all public ar eas (e.g., entry, corridors, walkways, stairways, landings, parking areas).
17. P rocedures in place to ensure all facilities associated with a property and provided for guest use (e.g., restaurant, h ealth club, gift shop, recreational facilities) meet all appropriate AAA Diamond Program requirements.
Guest Rooms
Each guest unit will have:
18. A c lean and comfortable bed with a mattress pad, two sheets, two pillows with pillowcases, and an appropriate bed c overing.
19. A nightstan d or equivalent by each bed, a chair, a waste container, drawers/shelving and a clothes-hanging area.
20. A dequate shades, drapes, blinds or treatments to cover all windows or other transparent areas to provide guest privacy.
21. An a dequate level of soundproofing to muffle exterior sounds.
22. An a ctive light switch at the main entry.
23. Good o verall illumination to include direct lighting at a chair, stationary writing surface (if present) and at each bed.
PART 2: FULFILL AAA DIAMOND PROGRAM REQUIREMENTS
Hotel Requirements & Diamond Guidelines6
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24. E xterior/hallway facing door(s) equipped with a functional primary lock and a secondary deadbolt lock.
25. W orking deadbolt lock(s) on each door to connecting guest units or maintenance corridors.
26. A vie wport or window (convenient to the door) for each entry door.
27. A w orking lock for each window in a ground floor unit.
28. A w orking smoke detector.
Guest Bathrooms
Each guest unit will have:
29. A pr ivate bathroom solely dedicated for use by the guest(s).
30. A t oilet, sink with adequate shelf space, mirror, convenient electrical outlet and a tub/shower with a non-slip surface.
31. Good o verall illumination to include direct lighting at the mirror(s).
32. T wo bath towels, two hand towels, two face cloths and two cups/glasses.
33. T oilet tissue, a cloth bath mat, and two bars of soap or equivalent.
34. Non-por ous surfaces (e.g., floors, walls, baseboards) in all toilet areas.
Primary lock is a keyed mechanism that allows the door to be locked from the outside. Passkeys are strictly controlled and available only to recognized guests and essential associates for routine room access (e.g., management, housekeeping/ maintenance staff, security).
Secondary lock is a mortised, deadbolt-locking mechanism with a one-inch throw extending from the edge of the door into the door frame. This extra device affords guests a certain level of privacy. Unlike the primary lock passkeys, master keys for secondary locks are available only to essential associates and only for emergency purposes (e.g., management or security).
Secondary Lock Variances
In certain instances, the requirement for secondary locks may be modified to allow exceptions or provide increased guest security. The most common are noted below. AAA claims the right of final arbitrator in all decisions related to locks.
Sliding Glass Doors – Each sliding door must be equipped with an effective locking device. An effective secondary security lock is required on all ground-floor doors and those accessible from common walkways and adjoining balconies.
French Doors – In addition to the deadbolt lock, surface-mounted slide bolts must be installed at the top and bottom to secure the stationary/auxiliary door. These bolts must extend into the upper doorframe and the lower doorframe or floor and must be strong and sturdy mechanisms.
AAA DIAMOND PROGRAM REQUIREMENTS AND DIAMOND GUIDELINES - WHAT’S THE DIFFERENCE? AAA’s Diamond Program comprises two distinct components. The Diamond Program requirements are uncompromising, mandatory standards that result in one of two outcomes: achieving a AAA Diamond designation or not. The Diamond Guidelines, applied only to properties that meet the Diamond Program requirements, are somewhat flexible. The overall designation is based on a prevalence of expected attributes and the inspector’s professional judgment in the context of thousands of property inspections.
Properties must meet all AAA Diamond Program requirements to be designated as a AAA Diamond property.
Diamond Program requirements are common-sense qualifications AAA/CAA members say are essential to their satisfaction and professional operators routinely seek to achieve.
Properties must meet most AAA Diamond Guidelines for a particular designation to be assigned that Diamond designation.
The Diamond Guidelines reflect attributes typically — but not universally — observed throughout a lodging industry segment.
Therefore, the lack of some components listed for a Diamond designation does not necessarily preclude the achievement of that designation. During evaluations, inspectors assess each attribute of the property and assign the most appropriate designation that will provide the best match in meeting AAA member expectations.
Not all guidelines apply to all property types. For example, a swimming pool is not expected at a bed and breakfast, but is essential at a resort hotel. Additionally, downtown hotels may lack extensive landscaping features in comparison to what is typical in more rural locations. AAA inspectors apply only those Diamond Guidelines applicable for the property classification.
Hotel Requirements & Diamond Guidelines7
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AAA DIAMOND PROGRAM
AAA DIAMOND DESIGNATIONS FOR HOTELS REPRESENT A COMBINATION OF THE OVERALL QUALITY, RANGE OF FACILITIES, AND LEVEL OF HOSPITALITY OFFERED BY A PROPERTY. The widely recognized and trusted AAA Diamond designations help members choose hotels that will meet their needs and expectations.
AAA’s Diamond Guidelines indicate what is typically found at each designation level — from simple economy to highly personalized luxury. The Diamond designation is determined based on a compilation of all property characteristics, with a focus on the overall guest experience rather than on individual elements. While properties at the same Diamond designation may have variations in the attributes offered, a predominance of characteristics drives the Diamond designation.
The inspector’s Diamond designation recommendation is based on both the Diamond Guidelines and professional judgment — an essential component of the assessment. Our inspectors are North America’s travel experts, immersed in the hospitality industry on a daily basis as they conduct more than 24,000 hotel inspections per year.
PART 3: ACHIEVE YOUR AAA DIAMOND DESIGNATION
What the Diamond designations mean:
Hotel Requirements & Diamond Guidelines8
718
When you see the following terms used in the following Diamond Guidelines pages, please refer back to this page for more information.
• Connective Technology/Connectivity – The integration of technology and information systems that allow guests and hotel operators to interact effectively.
• Decorative – Obvious ornamental embellishment with attractive results. • e.g. – For example. Items following are only examples of what is typical and should not be interpreted as a required appointment.
• Leading Edge – Most advanced in their profession; luxuriant, luxury materials, highly fashionable/grand design and functionality working in sync to provide a sumptuous level of comfort. • Luxurious – Characterized by opulence, sumptuousness, or rich abundance; extremely comfortable, elegant or enjoyable.
• Modest/Modestly Enhanced – More than basic; slight enhancement; limited in size or scope. • Upscale – Obviously high grade; upmarket, luxurious feel; cohesive designs; not just the latest trend.
Glossary
Key Notes:
• Additional Impressions – All areas may be subject to point additions/subtractions related to key member experience factors pertaining to comfort, design and layout, or other unique features. Note: AAA/CAA members express significant dissatisfaction with additional non-use fees (e.g., “resort fees”, safes, microwaves, refrigerators, etc.). Free and effective internet bandwidth within the guest room is also a typical guest expectation. • Additional Features – Some features and amenities (recreation facilities, microwaves, coffeemakers, iron, etc.) are not measured on a Diamond scale, but are factored into the overall property designation based on availability and/ or general quality according to AAA member expectations for the designation level. • Exceptions – Not all of the Diamond Guidelines will apply to all property types. AAA inspectors will only use the sections of the Diamond Guidelines that are appropriate for the property classification in assessing the overall Diamond designation. If an attribute exists at the property, it will be measured accordingly.
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Exterior
GENERAL
CURB
APPEAL
BUILDING
STRUCTURE &
DESIGN
LANDSCAPING
Increased quantity,
variety and/or
coordination of
materials
Modest design and
effect
Modest
enhancements to
materials, design
and/or function
e.g., roof mansard,
gable, cupola,
window shutters/
sashes, siding,
columns, railings
Decorative materials
Well-coordinated
and distinctive
design
Significantly
enhanced design
effect
Significant
decorative
enhancements to
materials, design
and/or function in
the most prominent
structural areas,
such as the façade
Obvious distinctive
effect
e.g., enhanced roofs,
window treatments/
moldings, stone/
veneer accents or
balconies
Upscale materials
Substantial, cohesive
and impressive
design
Upscale effect
Upscale
enhancements
Substantial, cohesive
and impressive
design and effect
throughout the
property footprint
Luxurious materials
Leading-edge design
and effect
Grand architectural
features
Leading-edge
design and effect
throughout the
property footprint
Modest
enhancements to
quantity, variety
of plants and/or
landscape materials
Some surroundings
reflect a coordinated
design of moderate
visual interest
Significant,
decorative
enhancements to
quantity, variety
of plants and/or
landscape materials
Overall decorative
design
Creates an obvious
visual interest in
most areas
The entire grounds
are professionally
planned and
manicured with
an extensive use of
appropriate, mature
plants and landscape
materials
Cohesive, upscale
design that
withstands seasonal
weather conditions
At least one upscale
accent feature
e.g., statuary, water
feature, serenity
garden
Luxuriant landscape
materials
Leading-edge design
and effect that
withstands seasonal
weather conditions
Multiple upscale
accent features
are meticulously
integrated by design
e.g., statuary, water
feature, serenity
garden
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Exterior
MAIN
ENTRANCE
Modest
enhancements to
materials, design
and/or function
Covered entry door
If covered entry
has drive-through
capability, capacity
is limited to one-car
width
One additional
feature
e.g., bench seating,
double entry doors,
automatic entry
doors, revolving
doors, entry
vestibule, enhanced
façade or driving
surface
Significant
decorative
enhancements to
materials, design
and function
Covered drive-
through entry
capacity is
appropriate for the
size of the lodging
(minimum two-car
width or depth)
At least three
additional features
e.g., bench seating,
double entry doors,
automatic entry
doors, revolving
doors, entry
vestibule, enhanced
façade or driving
surface
Upscale materials,
design
Covered drive-
through entry with
capacity greater than
two-car width and
depth
At least three
additional features
e.g., bench seating,
double entry doors,
automatic entry
doors, revolving
doors, entry
vestibule, enhanced
façade or driving
surface
Luxurious materials
Leading-edge design
and effect
Covered drive-
through entry with
capacity greater than
two-car width and
depth
Expanded drive or
courtyard
Additional Guest Impressions and Features
The following items are not assigned a Diamond designation, but are factored into the overall assessment of the exterior/public areas.
Location – The impression made by the location of the property, proximity to attractions or natural features.
Parking – The availability of free and convenient parking for guest vehicles.
Hotel Requirements & Diamond Guidelines11
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Public Areas
GENERAL VIBE
(DÉCOR STYLE
& AMBIENCE)
FREE FLOOR
SPACE
FURNITURE
QUALITY &
DESIGN
Modest
enhancements to
materials and/ or
design
Increased function
and/or coordination
Enhanced level of
comfort
Obvious restrictions
due to size and/
or placement of
appointments;
constricted
appearance
Distinctive style
Significant
enhancements to
materials and/or
design
Well-coordinated,
with increased
functionality; open-
concept designs
that facilitate social
interaction
Obvious degree of
comfort
Limited restrictions,
as placement of
appointments is
well-proportioned to
area size and traffic
flow
Upscale materials,
design and/or
function
Well-coordinated,
with increased
functionality; open-
concept designs
that facilitate social
interaction
Exceptional degree
of comfort
Area size and
placement of
appointments
provide an
obvious degree
of spaciousness
allowing increased
ease of movement
for guests
Luxurious materials
Leading-edge design
and effect
Exceptional degree
of comfort
Area size and
placement of
appointments
provide an
abundance of space
that contributes to
the ultimate level
of comfort and
relaxation
Modest
enhancements to
materials or design
Increased function
and/or coordination
Provides an
adequate level of
comfort
Significant
enhancements to
materials or design
Well-coordinated
with increased
functionality
Provides an
enhanced degree of
comfort
Upscale materials
e.g., granite/stone,
solid wood, polished
metals, high-gloss
lacquers, veneer
finishes with solid
wood accents,
high-grade laminate
insets
Upscale design and/
or function
e.g., antiques,
leather, plush
padding, designer
fabric, sculptured
shape, crisp line
Exceptional degree
of comfort
Luxurious materials
Custom
workmanship
Leading-edge design
and effect
Exceptional degree
of comfort
722
GUEST
SERVICE
AREA(S)
Enhanced front desk
e.g., size or design
Multiple guest
service capability
Enhanced front
desk/pods/alternative
check-in methods
Multiple guest
service capability
Part of a spacious
common area
Uniformed staff
Enhanced front
desk/pods/alternative
check-in methods
Multiple guest
service areas
e.g., front desk, bell
stand, concierge,
video kiosk
Part of a spacious
common area
Uniformed staff
Enhanced front
desk/pods/alternative
check-in methods
Multiple guest
service areas
e.g., front desk, bell
stand, concierge,
video kiosk
Part of a spacious
common area
Uniformed staff
Staffed concierge
area (minimum 16
hrs./day and 7 days/
week)
ILLUMINATION
SEATING
LAYOUT
Modestly enhanced
design, materials,
positioning and/or
function
Good level of overall
illumination
Decorative and well-
coordinated design,
materials and/or
function
Well-positioned
Good level of overall
illumination
Fixtures reflect
upscale design
Well-positioned
Excellent level of
overall illumination
enhances the
intended use of the
space
Custom fixtures of
outstanding quality
Well-positioned
Excellent level of
overall illumination
enhances the
intended use of the
space
Leading-edge
illumination effect
that provides day/
night transition
Expanded overall
capacity
Multipurpose hard
and soft seating
Expanded overall
capacity
Expanded capacity
for each function
(soft seating, dining,
workspaces)
Expanded overall
capacity
Expanded capacity
for each function
(soft seating, dining,
workspaces)
Multiple
conversational
groupings
One semi-private
area (away from
traffic flow)
Expanded overall
capacity
Expanded capacity
for each function
(soft seating, dining,
workspaces)
Multiple
conversational
groupings
Multiple semi-private
areas (away from
traffic flow)
Hotel Requirements & Diamond Guidelines13
723
DECORATIVE
ENHANCEMENTS
Common artwork
with enhanced
frame(s) -Or-
other modest
appointments
e.g., live plants, floral
displays, prints,
assorted pieces,
sculptures, accent
wall, water features,
fireplace
Well-coordinated,
decorative
framed artwork or
appointments that
provide distinctive
appeal
e.g., live plants, floral
displays, prints,
assorted pieces,
sculptures, accent
wall, water features,
fireplace
Well-coordinated,
decorative
framed artwork or
appointments
Varied assortment
that provides a
thematic upscale
appeal
e.g., live plants, floral
displays, prints,
assorted pieces,
sculptures, accent
wall, water features,
fireplace
Well-coordinated,
decorative
framed artwork or
appointments
Varied assortment
that provides a
thematic upscale
appeal
Variety of styles and
accent pieces
e.g., custom artwork,
limited edition prints,
canvas art, tapestries,
or lithographs with
enhanced matting
and preservation
frames, assorted
artisan pieces,
sculptures
CONNECTIVE
TECHNOLOGY
Wireless internet
access available
throughout the
property
e.g., multiple routers,
consistent signal
strength
Convenient electrical
outlets
Wireless internet
access available
throughout the
property
e.g., multiple routers,
consistent signal
strength
Convenient electrical
outlets
Workspaces with
USB or other
alternative charging
capability
Additional
connectivity options
e.g., interactive
electronic reader
board with local
information,
boarding pass kiosk,
device available for
electronic check-in/
check-out, RFID keys,
mobile device check
in
Superior internet
speed and capacity
available throughout
the property
e.g., multiple routers,
consistent signal
strength
Remote guest
service access
through mobile
device
One additional
technology feature
e.g., mobile device
room key access,
wireless charging
systems, advanced
business computing
equipment
Superior internet
speed and capacity
available throughout
the property
e.g., multiple routers,
consistent signal
strength
Advanced guest
connectivity
capability across all
guest interactions
(front desk, bell
service, concierge,
maintenance, food
and beverage,
housekeeping,
recreation)
One additional
technology feature
e.g., mobile device
room key access,
wireless charging
systems, advanced
business computing
equipment
Leading-edge
technology
Hotel Requirements & Diamond Guidelines14
724
ELEVATOR
Elevator is available
for guest use in all
multi-story buildings
Landing includes
at least one accent
feature
e.g., chair/sofa, table,
lamps/wall sconce,
phone, artwork,
mirror, flowers/plants
Elevator is available
for guest use in all
multi-story buildings
Elevator includes
decorative
appointments
Landing includes
multiple accent
features
e.g., chair/sofa, table,
lamps/wall sconce,
phone, artwork,
mirror, flowers/plants
Multiple elevators
Upscale
appointments
Landings are
recessed and include
multiple accent
features
e.g., chair/sofa, table,
lamps/wall sconce,
phone, artwork,
mirror, flowers/plants
Additional service
elevator is available
for staff use
Multiple elevators
Elevator cabs have
additional features
e.g., high speed,
destination dispatch,
dual call button
panels, television,
music, card key
access, voice
indicators
Landings are
recessed and include
multiple accent
features
e.g., chair/sofa, table,
lamps/wall sconce,
phone, artwork,
mirror, flowers/plants
Additional service
elevator is available
for staff use
Leading-edge effect
Hotel Requirements & Diamond Guidelines15
725
EXCERCISE
FACILITY
Designated room
on site
Three pieces of
cardio/strength
equipment
At least four
amenities:
Mirrors
Television
Water cooler
Towels
Clock
Sanitizer
Designated room
on site
Four or more pieces
of professional grade
equipment
Mirrors
Television
Water cooler
Towels
Clock
Sanitizer
Additional personal
training options
e.g., free weights,
benches, floor mats,
physio balls, toning
bars/rollers
Specialized, high-
impact flooring
Multiple televisions
or individual
televisions for each
piece of cardio
equipment
One additional
amenity
e.g., infused water,
bottled water,
chilled towels,
aromatherapy
scents, ear buds,
fresh fruit
Upscale facility
Full array of
state-of-the-art
fitness equipment
appropriate with
room count
Provides an
obvious degree of
spaciousness
Additional personal
training options
e.g., free weights,
benches, floor mats,
physio balls, toning
bars/rollers
Specialized, high-
impact flooring
Multiple televisions
or individual
televisions for each
piece of cardio
equipment
Three or more
additional amenities
e.g., infused water,
bottled water,
chilled towels,
aromatherapy
scents, ear buds,
fresh fruit
Leading-edge facility
Full array of
state-of-the-art
fitness equipment
appropriate with
room count
Provides an
obvious degree of
spaciousness
Luxurious health
club environment
with attendants
Personal training
options / guided
programs
In-room exercise
programs available
Specialized, high-
impact flooring
Multiple televisions
or individual
televisions for each
piece of cardio
equipment
Comprehensive array
of amenities
Dressing area
includes lockers,
showers and
restrooms
Athletic gear
available
Hotel Requirements & Diamond Guidelines16
726
FOOD &
BEVERAGE
OUTLETS
One quick-service
outlet on site
One full-service
restaurant
Lounge or bar area
Grab-and-go option
available
Upscale, full-service
restaurant
i.e., comparable to
a Three Diamond
restaurant
Separate lounge or
bar area
Room service
available for
breakfast, lunch and
dinner
Multiple outlets
including an
upscale, full-service
restaurant
i.e., at least one is
comparable to a Four
Diamond restaurant
Separate lounge or
bar area
Room service
available 24/7
RESTROOMS
Restroom available Decorative
appointments
Multiple restrooms
in a convenient
location
(If property has
expanded meeting
facilities, then
additional restrooms
are available in
proportion)
Upscale
appointments
Multiple restrooms
in a convenient
location
(If property has
expanded meeting
facilities, then
additional restrooms
are available in
proportion)
Multiple locations
First-class
with luxurious
appointments
Multiple restrooms
in a convenient
location
(If property has
expanded meeting
facilities, then
additional restrooms
are available in
proportion)
Multiple locations
RESTAURANT
BREAKFAST
AREA
OR
Expanded breakfast
including at least
one hot item
e.g., waffles/
pancakes, eggs,
breakfast meats
Dedicated area with
modest restrictions
due to size and/
or placement of
appointments
Limited seating is
available
Television
Expanded breakfast
includes multiple hot
items
e.g., waffles/
pancakes, eggs,
breakfast meats
Appointments are
well-proportioned
to area size, with
appropriate seating
for the size of the
establishment
Television
Clearly refined menu
Full service
Upscale
surroundings
Appointments are
well-proportioned
to area size, with
appropriate seating
for the size of the
establishment
Television
Not applicable
OR
Hotel Requirements & Diamond Guidelines17
727
SIGNAGE
THROUGHOUT
PROPERTY
Modestly enhanced
materials, design
Limited locations
Decorative
materials, design
enhancements
Ample locations
Intuitive, upscale
materials, design
and location
Ample locations
Custom materials,
intuitive design
Creatively placed for
a leading-edge effect
Ample locationsSUNDRIES &
SHOPS
Modest selection of
amenities available
at the front desk
Dedicated sundry
area
Upscale gift
shop providing
a wide variety of
merchandise
Upscale gift
shop providing
a wide variety of
merchandise
OR
In vending machine
e.g., toothbrush/
paste, razors,
mouthwash, shower
caps, combs
Conventional gift
shop offering a
moderate variety of
merchandise
e.g., health and
beauty items,
food, beverage,
basic technology
accessories and
reading materials
Convenient access to
a variety of first-class
shops
Convenient access to
a variety of first-class
shops
AND
Hotel Requirements & Diamond Guidelines18
728
SWIMMING
POOL
Pool area reflects
the use of modest
materials and design
Limited amount of
furniture in simple or
mixed styles
Well-appointed with
decorative features
and enhanced
design
Good variety of
comfortable,
coordinated pool
furniture
Well-appointed with
upscale materials
and design
Good variety of
comfortable,
coordinated pool
furniture
Includes at least one
additional feature
e.g., hot tub,
whirlpool spa,
steam room, sauna,
fountain, waterfall,
zero-entry, infinity
edge, children’s
splash pad, kiddie
pool, water slide
Food and beverage
service is available
poolside
Luxurious materials
Leading-edge
appointments
e.g., in-pool seating,
sculptures, water
feature, exotic plants
and gardens, stone/
tile surfaces with
designer inlays
Good variety of
upscale pool
furniture
Includes at least one
additional feature
e.g., hot tub,
whirlpool spa,
steam room, sauna,
fountain, waterfall,
zero-entry, infinity
edge, children’s
splash pad, kiddie
pool
Additional poolside
amenities
e.g., cabanas, Bali
beds, umbrellas,
lotions, food and
beverage outlet
Attendants on duty
Food and beverage
service is available
poolside
Additional Guest Impressions and Features
The following items are not assigned a Diamond designation, but are factored into the overall assessment of the exterior/public areas.
Additional Recreational Facilities/Programs – The availability of substantial on-site recreational facilities.
Spa – The availability of on-site spa facilities.
Resort / Non-use Fee(s) – A detraction for the automatic collection of separate fees for facilities, amenities or services regardless of guest use.
Overall Impression – The overall aesthetic impression of the design and functionality.
Comfort – The degree to which design and functionality contributes to physical ease and well-being.
Aesthetic Spaces – Freestanding indoor/outdoor areas (by design) that are pleasing to the senses.
Other – Unique attributes or other standout features or experiences.
Hotel Requirements & Diamond Guidelines19
729
Guest Rooms
VIBE
(DÉCOR STYLE)
BED/BEDDING
Modest
enhancements to
materials, design
Increased function
and/or coordination
Adequate level of
comfort
Modestly enhanced
materials, design
(headboard, bed
base, mattress and
bed covering)
e.g., quilted or soft
top mattress, duvet
Bed linens are
smooth to touch
Pillows are of an
enhanced grade
(thick cluster fiber)
Significant
enhancements to
materials, design
Well-coordinated,
with increased
functionality
Enhanced degree of
comfort
Comprehensive
design reflecting
streamlined, trendy,
contemporary or
traditional styles
Decorative
headboard
e.g., upholstered,
multiple textures,
shelving, reading
lights, oversize mural
Mattress
includes comfort
enhancement
e.g., pillow top, foam
padding
Bed linens are
smooth to touch
Pillows are of an
enhanced grade
(thick cluster fiber)
Three accent
features to bed
linens
e.g., triple sheeting,
overstuffed duvet,
skirting, wrapped
box spring, bed
throw/scarf, multiple
pillows, embroidered
pillow cases/shams
Upscale materials,
design and/or
function
Well-coordinated,
with increased
functionality
Exceptional degree
of comfort
Upscale materials
Oversize or custom
made headboard,
bed base, mattress
Bed linens are very
soft to the touch and
tightly woven
Pillows are of an
upscale grade
e.g., down, natural
memory fibers,
hypo-allergenic, gel
Three accent
features to bed
linens
e.g., triple sheeting,
overstuffed duvet,
skirting, wrapped
box spring, bed
throw/scarf, multiple
pillows, embroidered
pillow cases/shams
Luxurious materials
Leading-edge design
and effect
Exceptional degree
of comfort
Luxurious materials
Leading-edge effect
Bed linens have a
luxuriously soft, silk-
like feel
Pillows are of an
upscale grade
e.g., down, natural
memory fibers,
hypo-allergenic, gel
Three accent
features to bed
linens
e.g., triple sheeting,
overstuffed duvet,
skirting, wrapped
box spring, bed
throw/scarf, multiple
pillows, embroidered
pillow cases/shams
730
FREE FLOOR
SPACE
Obvious restrictions
due to size and/
or placement of
appointments;
Overall appearance is
constricted
Limited restrictions,
as placement of
appointments is
well-proportioned to
room size and traffic
flow
Room size and
placement of
appointments
provide an
obvious degree
of spaciousness
allowing increased
ease of movement
for multiple guests
Room size and
placement of
appointments
provide an
abundance of space
that contributes to
the ultimate level
of comfort, privacy
and relaxation for
multiple guests
FURNITURE
QUALITY &
DESIGN
ILLUMINATION
Modest
enhancements to
materials, design
Adequate function
and/or coordination
Adequate level of
comfort
Significant
enhancements to
materials, design
Well-coordinated,
with increased
functionality
Enhanced degree of
comfort
Upscale materials
e.g., granite/stone,
solid wood, polished
metals, high-gloss
lacquers, veneer
finishes with solid
wood accents,
high-grade laminate
insets
Upscale design and/
or function
e.g., antiques,
leather, plush
padding, designer
fabric, sculptured
shape, crisp line
Exceptional degree
of comfort
Luxurious materials
Custom
workmanship
Leading-edge design
and effect
Exceptional degree
of comfort
≥ Three lighting
fixtures reflect
modest
enhancements to
materials, design,
functionality and/or
placement
Good level of overall
illumination
≥ Four lighting
fixtures reflect
decorative materials,
design
Well-positioned from
multiple sources
Good level of overall
illumination at each
key task area
≥ Four lighting
fixtures reflect
upscale materials,
design
Well-positioned from
multiple sources
Superior
functionality
provides for
ambience options
e.g., dimmers, point
lighting, multiple
switches, remote
control and/or
natural light sources
Excellent level of
overall illumination
≥ Four custom
lighting fixtures of
outstanding quality
Well-positioned from
multiple sources
Superior
functionality
provides for
ambience options
e.g., dimmers, point
lighting, multiple
switches, remote
control and/or
natural light sources
Excellent level of
overall illumination
Leading-edge
illumination effect
Hotel Requirements & Diamond Guidelines21
731
MIRROR
SEATING
LAYOUT
Full-length mirror
Unframed/beveled
OR
Simple metal/wood
frame
Full-length mirror
Decorative
frame/design
enhancement
Full-length mirror
Upscale
frame/design
enhancement
Multiple locations,
sizes and/or styles
Full-length mirror
Custom
frame/design
enhancement
e.g., luxurious
materials, artistic
design, oversized,
multiple viewing
angles
Multiple locations,
sizes and/or styles
Seating for one
guest
Adequate level of
comfort
Seating for two
guests
Enhanced desk
chair (ergonomic
or coordinated with
décor)
Chair positioned for
television viewing
Enhanced degree of
comfort
Seating for three
guests
e.g., loveseat, sofa
or two chairs (in
addition to desk
chair)
Enhanced desk
chair (ergonomic
or coordinated with
décor)
Chair positioned for
television viewing
One additional
furniture piece
Exceptional degree
of comfort
Seating for three
guests
e.g., loveseat, sofa
or two chairs (in
addition to desk
chair)
Enhanced desk
chair (ergonomic
or coordinated with
décor)
Furniture layout
clearly designed for
small grouping
Two additional
furniture pieces
Exceptional degree
of comfort
Hotel Requirements & Diamond Guidelines22
732
STORAGE/
SHELVING
Modestly enhanced
open wall-mounted
clothes rack
Detachable wood or
heavy metal/plastic
hangers
Embellished open,
recessed area or
enclosed area or
freestanding armoire
Drawers/shelving
available
Ample space (for two
guests)
Upscale quality
enclosure
Closet can enclose
full-length apparel
Matching, open-
hook, wood/
sculptured plastic
hangers (heavy
gauge with metal
hook)
Some with skirt
or pant hanging
attachments
Ample supply (for
two guests)
Two or more
additional features
e.g., illumination,
drawers, shoe rack,
walk-in capability,
two or more shelves,
upgraded luggage
racks/designer style
benches
Upscale quality
enclosure
Closet can enclose
full-length apparel
Comprehensive
selection of hangers
for ≥ three guests
At least two satin
hangers
Closet is illuminated
Three or more
additional features
e.g., illumination,
drawers, shoe rack,
walk-in capability,
two or more shelves,
upgraded luggage
racks/designer style
benches
TELEVISION
TYPE &
PLACEMENT
32-inch flat-panel
Channel directory
Two additional
features
e.g., all-in-one
multimedia hub,
high-definition
channels, free/pay
movie channels,
digital art/property
information,
mood effects,
multiple viewing
angles, acoustic
board, smart TV
functionality,
streaming capability,
surround sound
40-inch flat-panel
Channel directory
Cables and cords are
hidden from view
Three additional
features
e.g., all-in-one
multimedia hub,
high-definition
channels, free/pay
movie channels,
digital art/property
information,
mood effects,
multiple viewing
angles, acoustic
board, smart TV
functionality,
streaming capability,
surround sound
43-inch flat-panel
Channel directory
Cables and cords are
hidden from view
Four additional
features
e.g., all-in-one
multimedia hub,
high-definition
channels, free/pay
movie channels,
digital art/property
information,
mood effects,
multiple viewing
angles, acoustic
board, smart TV
functionality,
streaming capability,
surround sound
> 43-inch flat-panel
Seamlessly
integrated with room
design
Channel directory
Cables and cords are
hidden from view
Five additional
features
e.g., all-in-one
multimedia hub,
high-definition
channels, free/pay
movie channels,
digital art/property
information,
mood effects,
multiple viewing
angles, acoustic
board, smart TV
functionality,
streaming capability,
surround sound
Hotel Requirements & Diamond Guidelines23
733
FLEXIBLE,
USABLE
SURFACES
(JUDGED ON THE
BASIS OF AVAILABLE
SURFACE SPACE)
Small task table or
alternative work/
writing surface
Medium-size
desk, task table or
alternative work/
writing surface
Electrical outlet
and USB port near
surface
Large-size desk, task
table or alternative
work/writing surface
Multiple electrical
outlets and USB
ports near surface
Large-size desk, task
table or alternative
work/writing surface
Multiple electrical
outlets and USB
ports near surface
Work space is
appropriately
enhanced by unique
style/design
Uncluttered, with
efficient functionality
VENTILATION
DECORATIVE
ENHANCEMENTS
Heat and air
conditioning
available on demand
Conveniently located
through-wall HVAC
units
Easily accessible
controls
Conveniently located
through-wall HVAC
units
Modern and quiet
Digital thermostat
control on wall
Central system
Digital thermostat
control on wall
Central system
Quiet and
inconspicuous form
and function
Digital thermostat
control on wall
Common artwork
with enhanced
frame(s) -Or-
other modest
appointments
e.g., live plants, floral
displays, prints,
assorted pieces,
sculptures, accent
wall, water features,
fireplace
Well-coordinated,
decorative
framed artwork or
appointments that
provide distinctive
appeal
Well-coordinated,
upscale framed
artwork or
appointments
Varied assortment
of styles and accent
pieces that provide
a thematic upscale
appeal
Well-coordinated,
luxurious framed
artwork or
appointments
Varied assortment
of styles and accent
pieces that provide
a leading edge or
luxurious appeal
e.g., custom artwork,
limited edition prints,
canvas art, tapestries,
or lithographs with
enhanced matting
and preservation
frames, assorted
artisan pieces,
sculptures
Hotel Requirements & Diamond Guidelines24
734
Additional Guest Impressions and Features
The following items are not assigned a Diamond designation, but are factored into the overall assessment of the guest room.
Technology – The overall impression of the technology features.
Microwave – A microwave oven is present in each guest room.
Refrigerator – A refrigerator is present in each guest room.
Robes – A robe is present in each guest room (two in doubles).
Slippers – A set of slippers is present in each guest room (two sets in doubles).
Safe – A safe is present in each guest room.
Internet – Wireless internet access in guest rooms is offered free, or at an additional cost.
Overall Impression – The overall aesthetic impression of the design and functionality.
Comfort – The degree to which design and functionality contributes to physical ease and well-being.
Other – Unique attributes or other standout features or experiences.
Hotel Requirements & Diamond Guidelines25
735
Bathrooms
VIBE
(DÉCOR STYLE)
VANITY AREA
(JUDGED ON THE BASIS
OF AVAILABLE SURFACE
SPACE)
Modest
enhancements to
materials, design
Increased function
and/or coordination
Adequate level of
comfort
Modestly-enhanced
materials, design;
limited free space
e.g., poured acrylic,
cultured marble/
granite, ceramic tile
Significant
enhancements to
materials, design
Well-coordinated,
with increased
functionality
Enhanced degree of
comfort
Comprehensive
design reflecting
streamlined, trendy,
contemporary or
traditional styles
Decorative materials,
design; adequate
free space
e.g., quartz, granite
Upscale materials,
design and/or
function
Well-coordinated,
with increased
functionality
Exceptional degree
of comfort
Upscale materials,
design; spacious
design
e.g., marble or other
solid stone
Multiple counters
and/or shelves
Luxurious materials
Well-coordinated,
with increased
functionality to
provide leading-
edge design and
effect
Exceptional degree
of comfort
Upscale materials,
design; spacious
design
e.g., marble or other
solid stone
Multiple counters
and/or shelves;
multiple sinks
Leading-edge effect
FREE FLOOR
SPACE
Obvious restrictions
due to size and/
or placement of
appointments;
constricted
appearance
(If vanity area is
separate from the
toilet area, it is
positioned in plain
view of the guest
room)
Modest restrictions,
as placement of
appointments is
well-proportioned to
room size and traffic
flow
(If vanity area is
separate from
the toilet area, it
is positioned in
restricted view from
the rest of the guest
room)
Room size and
placement of
appointments
provide an
obvious degree
of spaciousness,
allowing increased
ease of movement
Room size and
placement of
appointments
provide an
abundance of space
that contributes
to the ultimate
level of comfort
and relaxation for
multiple guests
736
Bathrooms
ILLUMINATION
Modestly enhanced
lighting fixtures
e.g., enhanced
plastic cover, tube
lighting
Decorative lighting
fixtures
Multiple locations
Upscale design and
materials
Multiple locations
Illuminated shower
Excellent level of
overall illumination
at each location
Upscale design and
materials
Multiple locations
Illuminated shower
Custom function(s)
provides for
ambience options
e.g., dimmers, point
lighting, multiple
switches, and/or
natural light sources
Leading-edge
illumination effect
MIRROR
PERSONAL
CARE
(IF ECO-FRIENDLY
OPTIONS EXIST,
DISPENSERS MUST
COORDINATE WITH
VIBE/DÉCOR STYLE
AS DESCRIBED
PREVIOUSLY)
Modest design/size
enhancement
e.g., framed, beveled,
etched
Proportionately sized
Decoratively framed/
designed
e.g., floating,
illuminated
Proportionately sized
Upscale materials,
design
Makeup mirror
Upscale materials,
design
Leading-edge effect
e.g., television,
defogger
Illuminated makeup
mirror
Two medium-size
bars of soap (or
equivalent)
Two bottled items (or
equivalent)
Multi-piece personal
care package
includes:
• Two large-size
bars of soap (or
equivalent)
• Three bottled items
(or equivalent)
Decorative
presentation
Multi-piece personal
care package
includes:
• Two large-size
bars of soap (or
equivalent)
• Four bottled items
(or equivalent)
• Two additional
items
Enhanced by
fragrance, natural
supplement,
packaging, etc.
Upscale presentation
Comprehensive and
luxurious selection
of fashionable bath
products
Ample-size bars of
soap and bottled
items (or equivalent)
Leading-edge effect
Hotel Requirements & Diamond Guidelines27
737
SHOWER
CURTAIN/
DOOR
Modest
materials, design
enhancement
Lightweight curtain
e.g., vinyl/polyester
-Or- lightweight
glass door with
aluminum frame
Decorative materials,
design
Double curtain
-Or- glass door with
aluminum frame
-Or- door-less design
Upscale materials,
design
e.g., linen texture,
hemp, cotton/cotton-
poly blend
Double curtain
-Or- heavyweight
glass door with/
without metal frame
-Or- door-less design
Leading-edge effect
Double curtain
-Or- heavyweight
glass door with/
without metal frame
Additional luxury
enhancement
(etched, frosted,
embossed, tinted,
upscale custom
hardware, etc.)
SHOWER
FIXTURES
TOILET
Metal or plastic
Adjustable settings
Decorative materials,
design and
enhanced function
e.g., rain
showerhead, oversize
wall-mounted
showerhead,
massage feature
Upscale materials,
design
One custom water
feature
e.g., body jets,
hand-held
sprayers, multiple
showerheads,
oversize ceiling
rain shower, panel
systems, steam
shower
Upscale materials,
design
Multiple custom
water features
e.g., body jets,
hand-held
sprayers, multiple
showerheads,
oversize ceiling
rain shower, panel
systems, steam
shower
Two-piece, elongated
(with lid)
Two-piece, elongated
(with lid)
Decorative design
enhancement
Upscale design
-Or- increased
functionality
Recessed area
Upscale design
-Or- increased
functionality
Enclosed toilet-only
area
Hotel Requirements & Diamond Guidelines28
738
TOWELS
Modest
enhancements in
design, lightweight
Rough to touch
Low absorbency
Displayed on bars
and/or shelves
Modest
enhancements in
design, medium
weight
Soft to touch
Medium absorbency
Displayed on bars
and/or shelves
Upscale design,
heavyweight
Plush to touch
Firm, self-supporting
feel
Premium cotton with
high absorbency
Luxurious
appearance, with
intricate and detailed
enhancements to
design
Heavyweight
Plush to touch
Firm, self-supporting
feel
Premium cotton with
high absorbency
Generous-size towels
or bath sheets
TUB/SHOWER
SURROUND
Modest
enhancement to
materials, design
e.g., acrylic, ceramic
tile, cultured marble/
granite
Decorative materials,
design
Ceramic tile/solid
surface
Tub and shower
height soap dishes
Upscale materials,
design
Solid surface
e.g., marble, granite,
stone or glass/
porcelain tiles
Tub and shower
height soap dishes
Upscale materials,
design
Solid surface
e.g., marble, granite,
stone or glass/
porcelain tiles
Leading-edge effect
Custom treatment
Integrated seating/
shelving
Additional Guest Impressions and Features
The following items are not assigned a Diamond designation, but are factored into the overall assessment of the bathroom.
Overall Impression – The overall aesthetic impression of the design and functionality.
Comfort – The degree to which design and functionality contributes to physical ease and well-being.
Other – Unique attributes or other standout features or experiences.
Hotel Requirements & Diamond Guidelines29
739
Properties identified by AAA as potential candidates for the Four Diamond designation must employ competent, full- time personnel and systems to provide guests with a comprehensive level of hospitality. Key guest service interaction points are:
• Phone Operations
• Arrival and Departure
• Check In/Out
• Luggage Assistance
• Room Delivery
• Housekeeping
• General / Concierge Services
AAA FOUR DIAMOND PROPERTIES
AAA Four & Five
Diamond Designations
These prestigious designations are achieved by a small
percentage of all AAA Diamond properties — typically the most luxurious and pampering properties throughout
North America. Less than one-half of one percent
of AAA Diamond hotels receive the Five Diamond
designation, while only six percent receive the Four
Diamond designation. Establishments at these Diamond
designations must consistently reflect upscale and
extraordinary characteristics in their physical attributes and guest services.
Properties identified by AAA as potential candidates for the Five Diamond designation undergo multiple unannounced evaluations by a AAA inspector and a final decision by a panel of experts. Properties that receive the Five Diamond designation are subject to rigorous on-site assessments of all guest service areas. Each section is assigned a point value based on the overall levels of competency, refinement and hospitality.
AAA FIVE DIAMOND PROPERTIES
Four & Five Diamond Service Expectations
Hotel Requirements & Diamond Guidelines30
740
• Website provides rate structure and availability in an easy to use format • Website provides a comprehensive overview of facilities and services • Initial call to property is properly received by a live attendant or easy to use automated system • Attendant thanks caller for contacting the property
• Attendant provides an appropriate introduction to guest • Attendant addresses caller by name as appropriate for the manner of the guest • Attendant anticipates caller’s needs or offers a personalized recommendation • Attendant exhibits competent/accurate knowledge of all associated facilities and hours of operation • Attendant confirms details of reservation and special request • Attendant exhibits a sincere desire to meet and comply with all guest requests • Attendant is efficient and sensitive to the manner of the guest • Attendant extends an appropriate closing
• Property provides an email reservation confirmation within 24 hours of booking Pre-Arrival Services
2023 AAA Five Diamond Service Criteria
• Cars in queue are acknowledged and appropriately handled on arrival • Attendant promptly approaches vehicle and opens door when appropriate • Attendant extends an appropriate welcome
• Attendant provides an appropriate introduction
• Attendant confirms guest’s name
• Attendant uses guest’s name as appropriate for the manner of the guest • Attendant explains parking procedures including any digital request capability (if available) • Valet parking is offered
• Attendant promptly offers to unload luggage
• Attendant explains luggage handling procedures
• Attendant provides unsolicited direction to registration area • Attendant anticipates guest’s needs or offers a personalized recommendation • Attendant is efficient and sensitive to the manner of the guest • Attendant exhibits a sincere desire to meet and comply with all guest requests • Attendant or lobby greeter escorts guest to the appropriate area • Attendant extends an appropriate closing
ARRIVAL SERVICES
• Attendant extends an appropriate welcome
• Attendant provides an appropriate introduction
• Attendant confirms guest’s name during initial greeting • Attendant graciously acknowledges pre-arrival request • Attendant discreetly uses guest’s name as appropriate for the manner of the guest • Attendant gathers and provides information in a discreet manner to protect guest security and privacy • Preregistered guests are not solicited for additional information • Attendant confirms rate and type of room
• Attendant discreetly provides room number
• Attendant provides all registration materials to the guest in a manner that is convenient for the guest • Attendant exhibits a sincere desire to meet and comply with all guest requests or inquires • Attendant anticipates guest needs or offers a personalized recommendation • Attendant is efficient and sensitive to the manner of the guest • Guest is escorted to room when appropriate or is provided thorough direction • Attendant extends an appropriate closing
CHECK IN SERVICES
Hotel Requirements & Diamond Guidelines31
741
• Luggage delivered before guest, with guest escort or within five minutes of guest’s initial arrival to room • Attendant extends an appropriate greeting
• Attendant uses guest’s name as appropriate for the manner of the guest • Attendant takes the initiative in providing property information • Attendant anticipates guest’s needs or offers a personalized recommendation • Attendant exhibits a sincere desire to meet and comply with all guest requests • Attendant places luggage on luggage stand or in appropriate area • Attendant explains features and functions of room, including technology and connectivity features • Attendant offers to fill ice bucket or ice is already provided • Attendant is efficient and sensitive to the manner of the guest • Attendant extends an appropriate closing
LUGGAGE SERVICES (CHECK IN)
• Attendant folds back or removes bedding as appropriate • Attendant straightens bathroom
• Attendant refolds toilet tissue point
• Attendant cleans soiled surfaces
• Attendant replaces or straightens (if reuse elected by guest) used towels • Attendant replenishes depleted amenities as appropriate • Attendant empties wastebasket
• Attendant adjusts drapes as appropriate
• Attendant adjusts room lighting
• Attendant delivers complimentary amenity
• Attendant refreshes ice
• Attendant replaces used glasses
• Attendant leaves printed nighttime sentiment for guest • There is additional evidence of personalized services
EVENING HOUSEKEEPING SERVICES
• Service phone extension is answered within three rings or guests have ability to make requests via digital platform (texting or mobile application)
• Guest request is acknowledged
• Guest is offered additional service or recommendation • Guest is given an appropriate fulfillment time for request • Guest request is handled with a sense of urgency
• Request is graciously handled by staff on phone or digital system is intuitive and easy to use. • Item or service is received promptly, or at requested time • Delivery attendant is easily identifiable/appropriately attired • Delivery interaction includes the use of guest’s name as appropriate for the manner of the guest • Service is available 24/7
GUEST REQUESTS
Hotel Requirements & Diamond Guidelines32
742
• Menu includes ingredients and dishes in keeping with other upscale dining option(s) offered at the property • Service number is answered within three rings, or instant access is available through other device/system • Operator extends an appropriate greeting
• Operator uses guest’s name as appropriate for the manner of the guest • Operator exhibits a sincere desire to meet and comply with all guest requests • Operator anticipates guest’s needs or offers a personalized recommendation • Operator repeats order to guest for confirmation
• Operator is efficient and sensitive to the manner of the guest • Operator provides time estimate for delivery (within 30 minutes) • Operator extends an appropriate closing
IN-ROOM DINING (ORDER SERVICES)
• Delivered within five minutes of operator’s commitment • Attendant extends an appropriate greeting
• Attendant uses guest’s name as appropriate for the manner of the guest • Attendant exhibits a sincere desire to meet and comply with all guest requests • Attendant confirms tray/table placement
• Attendant is appropriately conversant during set-up and delivery • Attendant reviews guest order
• Attendant asks guest’s permission to prepare table, pour beverage and remove food cover(s); acts accordingly
• Food presentation and quality of ingredients reflect an upscale experience • All appropriate dishware and linens are of an upscale quality • All food is served at the proper temperature
• All food is prepared and delivered as ordered
• Attendant provides written or spoken instructions for table/tray removal • Attendant is efficient and sensitive to the manner of the guest • Attendant extends an appropriate closing
• Trays/tables are removed within 15 minutes, on request
IN-ROOM DINING (DELIVERY SERVICES)
• Dedicated concierge is on duty or access is available for guest use 24/7 via phone or digital system • Attendant extends an appropriate greeting
• Attendant uses guest’s name as appropriate for the manner of the guest • Attendant exhibits a sincere desire to meet and comply with all guest requests • Attendant anticipates guest’s needs or offers a personalized recommendation • Attendant demonstrates an extensive knowledge of area attractions and services • Attendant demonstrates first-hand local knowledge beyond common internet search capability • Attendant graciously fulfills guest’s request(s)
• Attendant is efficient and sensitive to the manner of the guest • Attendant extends an appropriate closing
CONCIERGE SERVICES
Hotel Requirements & Diamond Guidelines33
743
• Phone extension is answered within three rings or guests have ability to request luggage assistance via digital platform (texting or mobile application)
• Guest is offered additional service or recommendation • Guest is given an appropriate time to expect luggage assistance at guest room • Request is graciously handled by staff on phone or digital system is intuitive and easy to use. • Attendant arrives within ten minutes of request
• Attendant extends an appropriate greeting
• Attendant uses guest’s name as appropriate for the manner of the guest • Attendant exhibits a sincere desire to meet guest needs • Attendant anticipates guest’s needs or offers a personalized recommendation • Attendant is appropriately conversant with guest while providing assistance • Attendant inquires about, or checks for, guest belongings possibly left behind • Attendant is efficient and sensitive to the manner of the guest • Attendant extends an appropriate closing
LUGGAGE SERVICES (CHECK OUT)
• Alternative check out methods are available (mobile/ online/ in-room device) • Attendant recognizes waiting guests appropriately
• Attendant extends an appropriate greeting
• Attendant confirms guest’s name
• Attendant uses guest’s name as appropriate for the manner of the guest • Attendant inquires about guest stay / engages in conversation with guest • Attendant exhibits a sincere desire to meet and comply with all guest requests • Attendant offers options for reviewing folio
• Attendant confirms payment method
• Attendant offers to email folio and confirms address
• Attendant expresses a sincere thank you for staying at the property • Attendant sincerely encourages guest to return
• Attendant anticipates guest’s needs or offers a personalized recommendation • Attendant is efficient and sensitive to the manner of the guest • Attendant extends an appropriate closing
CHECK OUT SERVICES
• Given adequate notice, the guest’s vehicle is waiting or alternate transportation is readily available
• Attendant extends an appropriate greeting
• Attendant uses guest’s name as appropriate for the manner of the guest
• Attendant anticipates guest’s needs or offers a personalized recommendation
• Attendant is appropriately conversant with guest
• Attendant reviews all of guest’s belongings and their placement in vehicle
• Attendant opens and closes door for guest(s)
• Attendant is efficient and sensitive to the manner of the guest \ • Attendant exhibits a sincere desire to meet and comply with all guest requests
• Attendant extends an appropriate closing
DEPARTURE SERVICES
Hotel Requirements & Diamond Guidelines34
744
• Guests are provided directions or offered assistance via escort on request • All associates display a high level of engagement during service interactions • All associates are focused on guests and offer acknowledgement in public areas • All staff ask permission as appropriate before entering guest room • Staff demonstrates effective cross- departmental communication • All associates fulfill guest’s special requests
• All associates are appropriately attired; name tags are clearly visible, or proper introduction is provided • All associates demonstrate appropriate behavior
• All associates demonstrate appropriate hygiene
• Short-notice pressing is available
• Shoeshine service is available
• On-site Food and Beverage outlets provide an elevated experience consistent with the overall theme of the property
• Staff in food and beverage outlets displays an elevated level of competency and training • An elevated level of service is evident at on-site recreational facilities
MISCELLANEOUS STAFF SERVICES
Hotel Requirements & Diamond Guidelines35
745
Section Three
THE
LISTING
Once a property is included in the AAA Diamond Program, we use factual property information and descriptive details to create hotel listings in AAA travel information products. Basic listings do not contain advertising or promotional verbiage, and are published at no cost to the establishment.
While you provide the objective information contained in hotel listings, the descriptive narrative is composed by AAA experts to convey key property components to guide AAA/CAA members. All listing information is updated annually, and establishments are contacted accordingly. Failure to provide information in a timely manner may result in the removal of your property from our products.
AAA Hotel Listings: Rich in Inspection Details
Foremost in your listings across AAA travel information products is your AAA Inspector Designation, which conveys the type of experience you provide,.
In the AAA Travel Guides and TripTik Travel
Planner on AAA.com, additional inspection
details provide deeper insight to guide decision-
making.
AAA Inspector Designation Details are your
actual overall, room, bath and public areas
inspection scores.
AAA Inspector’s Best Of Badges recognize
exceptional achievements or offerings in areas
members consider when choosing hotels.
AAA Inspector Notes provide descriptive details,
tips and insight on attributes that destinguish
your hotel.
Hotel Requirements & Diamond Guidelines36
746
AAA determines a property’s eligibility for one or more badges using the objective and subjective criteria below. Hotels are not notified as badges are added or removed since changes occur any time as a result of ongoing inspections and member feedback. The badges provide real-time information to help meet member priorities.
ALIGNING HOTEL STRENGTHS WITH MEMBER PRIORITIES
Hotels that earned cleanliness and condition scores in the top 25% of all AAA Diamond hotels for the last two inspections.
Hotels identified by inspectors for
remarkable offerings in one of these
areas:
Best Of Badges:
Family-Friendly
Inspected Clean
Personal Favorite
Pool
Romantic
Scenic View
Social Scene
Spa
Hotel Requirements & Diamond Guidelines37
747
Eligibility Criteria for Separate Hotel Listing (Dual-branded development) AAA only provides separate listings for areas or sections of a property that provide clearly differentiated member experiences. The distinct sections may be located at the same property, in the surrounding complex or at a contiguous structure. The following criteria are applied to determine if a hotel is eligible for separate listing consideration. If applicable, qualified entities are each assigned their own Diamond designation based on the guidelines outlined on pages 13-38.
A property must clearly qualify as a distinct and separate entity. The following examples are NOT eligible for separate listings:
• Concierge levels that offer upgraded amenities and sometimes a higher level of service. • Property sections or buildings that are separate but not clearly differentiated. • Exclusive sections of a property that require additional guest membership qualifications and, therefore, are not readily available for use by all AAA/CAA members.
FYI Designation
This designation identifies properties that are notable and offer potential member value but have not been inspected or Diamond designated due to one of the following reasons:
• Too new to evaluate.
• Under construction.
• Undergoing extensive renovations.
• Has not been inspected.
• Does not meet all AAA Diamond Program requirements but provides members a highly distinct and valuable experience.
Hotel Requirements & Diamond Guidelines38
Diamond Designation
ELIGIBILITY CRITERIA FOR SEPARATE HOTEL LISTING
Approved 3 4 5
✓ ✓ ✓ ✓Property is open to the public on a full-time basis ✓ ✓ ✓ ✓Property name/brand is distinctly different
✓ ✓ ✓ ✓Property contact phone number is exclusive
✓ ✓ ✓ ✓Concept/Theme is distinctly different
✓ ✓ ✓ ✓Marketing program is distinctly different and exclusive to the property ✓ ✓ ✓ ✓Booking capability is exclusive to the property
✓ ✓ ✓ ✓All consumer media channels position the property as a separate entity ✓ ✓ ✓ ✓Property is clearly distinct by virtue of a separate wing, tower or series of contiguous floors ✓ ✓Primarily, property access is restricted to registered guests for the brand ✓ ✓Staff is clearly identifiable with the brand (uniform, manner) and solely dedicated to the property ✓Exterior entrances are exclusive to the property
✓Reception area is solely dedicated to the property
✓Common areas/facilities are separate and exclusively dedicated to the property ✓Arrival process is solely dedicated to the property
✓In-room services are solely dedicated to the property
✓Concierge services are solely dedicated to the property 748
ALL DIAMOND DESIGNATED PROPERTIES ARE CLASSIFIED BASED ON THE STYLE OF OPERATION. CLASSIFICATIONS MAY BE PRECEDED BY ONE OR MORE SUBCLASSIFICATIONS IF APPLICABLE:
Bed and Breakfast: Typically owner-operated with extensive personal touches. Guests are encouraged to interact during evening and breakfast hours. A continental or full, hot breakfast is included in the room rate.
Cabin: Often located in wooded, rural or waterfront locations. Freestanding units are typically rustic and of basic design.
Essential cleaning supplies, kitchen utensils and complete bed and bath linens are supplied.
Condominium: Apartment-style accommodations of varying design or décor. Units often contain one or more bedrooms, a living room, a full kitchen and an eating area. Essential cleaning supplies, kitchen utensils and complete bed and bath linens are supplied.
Cottage: Often located in wooded, rural or waterfront locations. Freestanding units are typically home-style in design and décor. Essential cleaning supplies, kitchen utensils and complete bed and bath linens are supplied.
Country Inn: Although similar in definition to a bed and breakfast, country inns are usually larger in scale with spacious public areas and offer a dining facility that serves breakfast and dinner.
Hotel: Typically a multistory property with interior room entrances and a variety of guest unit styles. The magnitude of the public areas is determined by the overall theme, location and service level, but may include a variety of facilities such as a restaurant, shops, a fitness center, a spa, a business center and meeting rooms.
House: Freestanding units of varying home-style design. Often containing two or more bedrooms, a living room, a full kitchen, a dining room and multiple bathrooms. Essential cleaning supplies, kitchen utensils and complete bed and bath linens are supplied.
Motel: A one- or two-story establishment with exterior room entrances and drive up parking. Public areas and facilities are often limited in size and/or availability.
Ranch: Typically a working ranch featuring an obvious rustic, Western theme, equestrian-related activities and a variety of guest unit styles.
CLASSIFICATIONS
Boutique: Often thematic, typically informal yet highly personalized; may have a luxurious or quirky style that is fashionable or unique.
Casino: Offers extensive gambling activities, such as blackjack, craps, keno and slot machines.
Classic: Renowned and landmark properties, older than 50 years, well known for their unique style and ambience.
Contemporary: Overall theme reflects characteristics of minimalist trends with clean, architectural lines and an open- space feel. Black, white and bold, saturated colors are typical.
Extended Stay: Offers a predominance of long-term accommodations with a designated full-service kitchen area in each unit.
SUBCLASSIFICATIONS (IF APPLICABLE):
Hotel Requirements & Diamond Guidelines39
749
Historic: Over 75 years old with one of the following documented historical features:
• Maintains the integrity of its historical nature
• Listed on the National Register of Historic Places
• Designated a National Historic Landmark or located in a National Register Historic District Resort: Extensive recreational facilities and programs may include golf, tennis, skiing, fishing, water sports, spa treatments or professionally guided activities.
Vacation Rental: Typically houses, condominiums, cottages or cabins; these properties are “home away from home” self-catering accommodations.
Accessibility
Accessible Features Icon
Denotes a property that has some accessible features. It may be fully accessible, semi-accessible, or meet some of the needs of hearing-impaired individuals.
Accessibility is not a AAA Diamond Program requirement and will not affect your Diamond designation. However, we strongly encourage you to make every effort to meet the needs of all your guests – including mature travelers and those with disabilities
AAA MEMBER RELATIONS CLOSELY MONITORS THE NUMBER AND TYPE OF COMMENTS SUBMITTED ABOUT AAA INSPECTED PROPERTIES. All comments are carefully reviewed for validity and included as part of the property record.
If complaints are received, AAA will notify the property and provide an opportunity to resolve the matter in a reasonable period of time. If a member complaint is determined to be of an extreme nature, AAA may act to remove a property’s AAA designation and listing immediately.
If your property no longer meets AAA Diamond Program requirements because of member complaints, you may submit a written request for re-inspection one year from the date of last inspection. The request should include an explanation of actions taken to limit future complaints and be addressed to:
MEMBER COMMENT PROCEDURES
Hotel Requirements & Diamond Guidelines40
[email protected]
AAA Diamond Program
750
How do I become AAA Diamond designated again?
If your property failed their inspection for housekeeping and/or condition issues, you must wait until 12 months have elapsed from the date of the last inspection before submitting a new application for inspection. This waiting period is to allow time for your property to address all issues and to establish a consistent facilities management program. After this period, you must provide detailed information regarding the corrective action taken to address the issues and provide supporting documentation such as copies of invoices, work orders, photographs, etc.
If your property failed their inspection for other reasons, no waiting period is required, but you must first provide detailed information regarding the corrective action taken since the last AAA inspection, including supporting documentation such as copies of invoices, work orders, photographs, etc. This information can be emailed to [email protected]
DISAFFILIATED FOR FAILED HOUSEKEEPING OR CONDITION.
Hotel Requirements & Diamond Guidelines41
THE APPEALS PROCESS IS A RESOURCE FOR ALL INSPECTED PROPERTIES.
What can I appeal?
You may appeal your property’s AAA Diamond Program status or Diamond designation. Each situation is handled on an individual basis.
What is the process to file an appeal?
Before you file an appeal, please contact AAA Customer Service to discuss your questions or concerns. An analyst may be able to answer your questions immediately or, if additional information or discussion is needed, will direct you to the AAA Diamond Program regional manager of inspections for your area.
THE AAA APPEALS PROCESS
[email protected]
AAA Customer Service
If an issue remains unresolved after the above steps, you may choose to present relevant information to the AAA Appeals Committee for objective review. All appeals must be submitted by property owners/operators in writing to the address below. You may include pictures, documents or other pertinent materials to support the appeal. To expedite review, please outline the specific concerns in a succinct manner. Each appeal is thoroughly researched and given thoughtful consideration and a substantive reply by the committee. The committee’s decision on your appeal is considered as AAA’s final response. You will be notified as to the status of your appeal within 45 days of receipt of your written statement.
[email protected]
AAA Appeals Committee
751
Hotel Requirements & Diamond Guidelines42
QUESTIONS?
Establishments in all areas of the U.S., Canada, Mexico and the Caribbean should contact AAA at:
[email protected]
407-444-8370, Option 2
AAA Listings/Customer Service
AAA Diamond Program
Inspection Applications:
[email protected]
Inspection Customer Service:
[email protected]
[email protected]
407-444-8280
Official Appointments and Advertising
AAA supports environmental management and sustainability throughout the lodging industry to the extent that truly effective programs maintain quality standards of guest comfort. We strongly encourage continued use of programs that offer guests choices without negative consequences for noncompliance. Effective green programs are intended to reduce waste without reducing guest comfort.
In AAA travel information products, lodgings certified by approved green programs are identified with an icon in their listing.
AAA is not involved in the evaluation or certification of a property’s environmental practices but does regularly review requirements and best practices related to the most reputable sustainable programs.
Green Programs
752
A HISTORY OF
SERVICE
In 1937 to provide improved travel information for members, AAA employed its first inspectors, called field reporters, to personally visit and report on hotels and restaurants. This information was made available to members in the three
regional TourBook guides published at that time. Today, AAA’s professionally trained inspectors continue this practice as they inspect and assess more than 24,000 hotels and restaurants to help travelers enjoy a positive experience.
1000 AAA Drive • Heathrow, FL 32746-5063
AAA Travel Information & Content
© 2023
Hotel Requirements & Diamond Guidelines43
753
01375.0021 1070752.2
RESOLUTION NO. 25-4869
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA, CALIFORNIA, AMENDING RESOLUTION 25-4827 TO CREATE A TIERED
DEVELOPMENT IMPACT FEE FOR COMMERCIAL LODGING LAND USES
EXCLUDING TIME SHARES, SHORT -TERM V ACATION RENTALS AND
PROPERTIES UNDER FRACTIONAL OWNERSHIP
WHEREAS, California Government Code sections 66000 et seq. ("Mitigation Fee Act") establish the authority of the City of Murrieta to charge Development Impact Fees in accordance with the terms thereof; and
WHEREAS, on October 20, 1998, the City Council adopted Ordinance 196-98 amending Chapter 16.36 of the Murrieta Municipal Code relating to public facilities and infrastructure mitigation; and
WHEREAS, Chapter 16.36 of the Murrieta Municipal Code establishes and imposes a public facilities development impact fee; and
WHEREAS, the public facilities development impact fee includes land use categories for: Single Family Dwelling, Multi-Family Dwelling, Office Use, Commercial Use and Industrial Use; and
WHEREAS, pursuant to Resolution No. 25-4827, the current public facilities development impact fee for a Commercial Use is $13.27 per square foot of floor area; and WHEREAS, the City desires to encourage higher quality commercial lodging land uses, hotels and motels; not time shares, short term vacation rentals, or properties under fractional ownership (which hotels and motels are referred to herein as “Commercial Lodging”); by adopting a tiered public facilities development impact fee created as a sub-category of the existing Commercial Use category and offering a reduced development impact fee based on the category of hotel or motel. The applicable category and discount will be determined by comparing the amenities to be constructed as part of a new development with the descriptions set forth on Attachment "A".
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. That the recitals above and true and correct and incorporated herein.
Section 2. That a Commercial Lodging development impact fee that may result in a reduced Commercial Use development impact fee for some commercial lodging projects utilizing a tiered approach is proper and bears a reasonable relationship to the expected benefit of each category of Commercial Lodging as the categories are described in Attachment “A”.
Section 3. To encourage the development of higher quality Commercial Lodging, the Commercial Use development impact fee set forth in Resolution 25-4827 is hereby revised to add a subsection with a possible reduced development impact fee for Commercial Lodging development 754
01375.0021 1070752.2
that is tiered from the Commercial Use development impact fee (“DIF”) based on the category of hotel or motel according to the list of amenities to be provided as described in Attachment "A".
The tiered rates for Commercial Lodging will be as follows:
Category IV (AAA Five Diamond Rating): 0% of the Commercial Use DIF/square foot
Category III (AAA Four Diamond Rating): 25% of the Commercial Use DIF/square foot
Category II (AAA Three Diamond Rating): 50% of the Commercial Use DIF/square foot
Category I (AAA Approved Rating): 75% of the Commercial Use DIF/square foot
Section 4. That the City Council authorizes and directs the Development Services Director to review all applications for hotel or motel development and determine which category is most applicable based on the attached list of amenities (Attachment "A"). The Director’s decision of the appropriate category is appealable in the same manner as provided for fee waivers as set forth in Murrieta Municipal Code 16.36.050(B).
Section 5. That the Commercial Lodging tiered public facilities development impact fee shall become effective sixty (60) days following the adoption of this resolution in accordance with the Mitigation Fee Act.
PASSED, APPROVED AND ADOPTED this 15th day of July, 2025.
_____________________________
Cindy Warren, Mayor
ATTEST:
____________________________________
Cristal McDonald, City Clerk
APPROVE TO AS FORM:
___________________________________
Tiffany J. Israel, City Attorney
755
01375.0021 1070752.2
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4869 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 15th day of July, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
756
01375.0021 1070752.2
DEVELOPMENT
IMPACT FEE
REDUCTION FOR
COMMERCIAL
LODGING
Development Impact Fee Reduction for Commercial Lodging
City of Murrieta
757
01375.0021 1070752.2
The City of Murrieta’s (City) current Development Impact Fee (DIF) program was established in 1998 based on a Master Facilities Plan and Development Impact Fee Calculation Report. Since then, the City has modified its DIF based on updated Master Facilities Plans and Development Impact Fee studies prepared by financial services consultants and adopted by the City Council.
Murrieta Municipal Code Chapter 16.36 (Development Code) is written to ensure that impacts associated with new development in the City are properly mitigated through the construction of public facilities and infrastructure and/or the acquisition of land to preserve habitat and open space.
Pursuant to Section 16.36.030 of the Murrieta Municipal Code, a public facilities DIF must be paid for each new building constructed in a non-residential development or new square footage added to a building in a non-residential development, in an amount established by resolution of the City Council, prior to issuance of a building permit for that building. Non-residential developments include commercial, office, and industrial land uses.
The current DIF rate for General Commercial land use is $13.27/square foot of new building area.
This amount applies to all types of commercial zoning including Regional Commercial, Community Commercial, Neighborhood Commercial, Recreational Commercial, and Professional Commercial. Commercial uses include the general category of retail services and thus include outlets ranging from restaurants to auto repair shops to shopping centers. As such, commercial lodging land use, such as hotels and motels, fall within this category and are required to pay the DIF for General Commercial land use at a rate of $13.27/square foot per the Fiscal Year 2025/26 Development Impact Fee.
PRO POSAL
Hotels bring visitors to the City who pay Transient Occupancy Tax (TOT) and spend money in local restaurants and businesses, generating Sales Tax, which is one of the City’s primary General Fund revenue sources to provide essential services. To enco urage and attract higher quality hotels to develop in the City of Murrieta, staff recommend once again creating a tiered DIF structure for hotels based on the proposed amenities provided by the hotel being developed. The proposed categories are general quality indicators based on the hotel’s amenities, including, but not limited to, business services, food services, hotel features, and room amenities based on the AAA Diamond Rating System. Although the proposed categories are general quality indicators, thi s rating system is a commonly accepted industry method of quantifying the quality of a hotel or motel in the travel and tourism industry.
Staff recommends the following DIF structure for commercial lodging land uses:
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Category IV (AAA Five Diamond Rating): 0% of the Commercial Land Use DIF/sq ft
Category III (AAA Four Diamond Rating): 25% of the Commercial Land Use DIF/sq ft
Category II (AAA Three Diamond Rating): 50% of the Commercial Land Use DIF/sq ft
Category I (AAA Approved Rating): 75% of the Commercial Land Use DIF/sq ft
Staff recommends that the City Council adopt the attached resolution to include this proposed tiered DIF structure for commercial lodging land uses into the annual DIF update as adopted by Resolution No. 24 -4827, as amended from time to time, to establish an update to the Public Facilities Development Impact Fee Schedule on an annual basis based on the California Construction Cost Index (CCCI). The fee structure is based on a base DIF rate of $13.27 per square foot, with a discount applied for each diamond level the hotel achieves.
Staff evaluated the benefits to the overall community as a result of developing higher-quality hotels.
It is anticipated that such hotels will generate an incr eased amount of: (a) transient occupancy tax, as higher-quality hotels charge higher rates; (b) sales tax, due to the increased sales of goods and services procured by the guests and staff of the hotel; and c) property tax, resulting from increased property values. Additionally, higher -quality hotels will attract other prime developments, further increasing profitable engagement from tourists and business travelers. Encouraging first -rate hotels and developments is consistent with the City Council’s goal of promoting economic development within the community.
The City has determined, based on the 2024 Development Impact Fee Study and Master Facilities Plan conducted by Willdan Financial Services, that the tiered public facilities development fee is proper and bears a reasonable relationship to the expected benefit each category of hotel will provide to the city based on the higher-quality development to be constructed.
Staff will determine the category (I, II, III, IV) to be used in calculating the DIF amou nt for hotel developments. This decision will be based on the amenities being offered at the proposed hotel, according to the attached AAA Lodging Approval Requirements & Diamond Rating System. A hotel must meet the requirements for each specific category. A developer may apply for reconsideration of the category rating according to the procedures outlined in the City of Murrieta Municipal Code section 16.36.050. Properties excluded from the DIF Reduction Program proposed here include Time-Shares, Short-Term Vacation Rentals, and properties under Fractional Ownership. The final determination of the hotel diamond rating category and the Development Impact Fee will be at the discretion of the Director of Development Services and is appealable only to the City Manager.
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CITY OF MURRIETA
City Council Meeting Agenda
Report
7/15/2025
Agenda Item No. 18.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:
Annexation No. 1 to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta
RECOMMENDATION
Acting as the Legislative Body of Community Facilities District (CFD) No. 2025-2 (Maintenance Services), hold a public hearing regarding Annexation No. 1;
Adopt Resolution No. 25-4870 entitled: A Resolution of the City Council of the City of Murrieta, Acting as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, Annexing Territory to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta and Calling Elections Therein (Annexation No. 1 - Rustic Meadows); Direct the City Clerk to hold an election with CFD 2025-2; and Adopt Resolution No. 25-4871 entitled: A Resolution of the City Council of the City of Murrieta, Acting as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) Certifying Election Results of the July 15, 2025, Annexation and Special Tax Election (Annexation No. 1-Rustic Meadows).
PRIOR ACTION/VOTE
On April 5, 2016, the City Council adopted Resolution No. 16-3536 amending the Land Secured Financing Policy (Vote: 5-0).
On October 3, 2023, the City Council considered an Amendment to the Community Facilities District Goals and Policies and directed staff to present the recommendations in a workshop (Vote: 3-2).
On December 5, 2023, the City Council held a workshop on Community Facilities District Goals and Policies and adopted Resolution No. 23-4717 (Vote: 5-0).
On May 6, 2025, the City formed Community Facilities District No. 2025-1 (Safety Services), Community Facilities District No. 2025-2 (Maintenance Services) and Community Facilities District No. 2025-3 (Discovery Village) (Vote: 5-0).
On June 3, 2025, the City Council adopted separate Resolutions of Intention (Resolution Nos. 25-4841 and 25 CITY OF MURRIETA Printed on 7/10/2025Page 1 of 4
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Agenda Item No. 18.
On June 3, 2025, the City Council adopted separate Resolutions of Intention (Resolution Nos. 25-4841 and 25 -4842) regarding Annexation No. 1 and Annexation No. 2 to Community Facilities District No. 2025-2 (Maintenance Services) and set public hearings for the proposed annexation for July 15, 2025 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
Community Facilities Districts
Community Facility Districts (CFDs) are formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Mello-Roos Act”) and are a widely used financing mechanism, frequently used to fund infrastructure associated with new significant (large) development projects, such as water and sewer facilities, storm drain facilities, roads, and parks and to finance the provision of certain municipal services.
A simplified example of CFD implementation is as follows:
· A developer submits a petition to form the CFD to the City of Murrieta (City) or Special District (water districts frequently form CFDs) to start formation proceedings. · In the City’s case, staff presents the petition to the City Council for approval. · The District is formed by a vote of the property owners. · Once approved, the City approves the issuance of bonds, which are sold to investors. · Proceeds from the sale of the bonds are used to build the infrastructure associated with the project. · The bonds are paid off over time (typically 30 years) by the buyers of homes within the project as a part of their property tax bill.
On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to state law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed;
· Adding an escalator of up to two percent (2%) per year for facilities; · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing services;
· Allowing Development Impact Fees (DIF) to be financed; and · Increasing the maximum cap on the assessed value of a property from 1.8% to 2%.
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Agenda Item No. 18.
Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. The services that can be funded include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls).
· Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities. · Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems. · Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the local agency or by another local agency (by agreement).
Community Facilities District No. 2025-2 (Maintenance Services) On May 6, 2025, the City Council approved the formation of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, and CFD No. 2025-2 is authorized to levy a special tax in accordance with the Mello-Roos Act on parcels of residential property to finance public maintenance services.
Services eligible to be financed by CFD No. 2025-2 include maintenance and lighting of parks, parkways, streets, roads, and open space, maintenance and operation of water quality improvements, including storm drainage and flood protection facilities, and public street sweeping. CFD No. 2025-2 currently consists only of the property within the Discovery Village development project and designated the remainder of the City as a “Potential Annexation Area.”
New development projects meeting certain design criteria are required by the City’s Community Facilities District Goals and Policies, as amended in December 2023, to annex to CFD No. 2025-2. Accordingly, the owner of property within the proposed Rustic Meadows development project (the “PropertyOwner”)submitted a petition requesting that the property within its development project be annexed in to CFD No. 2025-2. If approved by the City Council and the Property Owner, the property within the Rustic Meadows development project would be annexed to CFD No. 2025-2 as “Tax Zone 1.” The special taxes within Tax Zone 1 of CFD No. 2025-2 are $332 per residential unit. The special taxes in each of Tax Zone 1 will increase on each July 1, commencing on July 1, 2026 by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2%), whichever is greater.
The Resolution of Intention adopted on June 3, 2025, was the first step in the process of annexing property to CFD No. 2025-2. It declared the City’sintention to consider Annexation No. 1 and called for a public hearing on the proposed annexation to take place on July 15, 2025.
Following the close of the public hearing for the proposed annexation to CFD No. 2025-2, the City Council will be asked to adopt a Resolution of Annexation for Annexation No. 1 (Rustic Meadows) which approves the CITY OF MURRIETA Printed on 7/10/2025Page 3 of 4
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Agenda Item No. 18.
be asked to adopt a Resolution of Annexation for Annexation No. 1 (Rustic Meadows) which approves the annexation to CFD No. 2025-2 and the levy of the special taxes in Tax Zone 1, in accordance with the Rate and Method of Apportionment for CFD No. 2025-2. The Resolution of Annexation also calls for elections to be held within Tax Zone 1 of CFD No. 2025-2 to submit to the qualified electors ballot measures on the approval of the annexations and the special taxes.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying that there are no registered voters residing within the boundaries of the proposed annexation area. Accordingly, under the Mello-Roos Act, only property owners owning land are eligible to vote at the elections, with each owner having one vote for each acre (or portion thereof) that they own within the annexation area. The Property Owner has executed a consent and waiver of certain election procedures for CFD No. 2025-2 with respect to the elections, including certain timing requirements with respect to the elections, in accordance with the Mello- Roos Act. Accordingly, if the City Council approves the Resolution of Annexation, the City Clerk will conduct the elections. The Property Owner will have delivered its ballot to the City Clerk in advance of the public hearing, the City Clerk will announce the election results, and the City Council will be asked to adopt a Resolution Certifying the Election Results. Upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon, the Resolution Certifying the Election Results will direct the City Clerk to record notices of special tax lien on the property within each of the proposed annexation areas.
The owner of the property within the proposed Rustic Meadows project within the City is Whitewood-Murrieta, L.P. The Rustic Meadows project is located at the Southeast corner of the intersection of Clinton Keith Road and Whitewood Road. At full buildout, the project is proposed to include approximately 153 single-family homes and will be developed by Century Communities of California, LLC.
FISCAL IMPACT
The Property Owner has made a deposit to pay for the costs of the annexation proceedings to CFD No. 2025-
2. The deposit made by Century Communities may be reimbursed to Century Communities from proceeds of a future bond issuance by the separate facilities CFD being formed in connection with the Rustic Meadows development. If the proposed annexation is approved and subject to necessary Council and voter approvals, CFD No. 2025-2 will annually levy special taxes on all of the taxable property within the annexation property in accordance with the RMA (as attached to the Resolution of Intention). Such special taxes will be used to pay for the costs of maintenance services and administration of the CFD No. 2025-2. The levying of the special taxes for services is expected to alleviate some of the financial impact of the new development on the costs of providing such services to the Property by the City. At full build-out, special tax revenues are projected to total $57,797 annually for the Rustic Meadows project.
ATTACHMENTS
1. Landowner Waiver
2. Resolution No. 25-4870
3. Resolution No. 25-4871
4. Certificate of the Registrar of Voters
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WAIVER OF CERTAIN ELECTION PROCEDURES
WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
(ANNEXATION NO. 1—RUSTIC MEADOWS)
The undersigned, Steven C. Porath , acting on behalf of Whitewood—Murrieta, L.P., a Delaware limited partnership (the “Owner”), hereby certifies to the City of Murrieta (the “City”), with respect to the proposed annexation of territory Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (the “District”), as follows:
1. The undersigned has been duly authorized by the Owner and possesses all authority necessary to execute this Waiver on behalf of the Owner in connection with the election to be called by the City Council of the City with respect to the District. The Owner hereby appoints Steven C. Porath to act as its authorized representative to vote in the election referred to herein and certifies that his true and exact signature is set forth below:
Signature of Steven C. Porath: __________________________________
2. The Owner is the present owner of 9.99 acres of land as described in Attachment “A” hereto (the “Annexation Territory”) . There are no registered voters residing within the Annexation Territory owned by the Owner and have been none during the 90 -day period preceding July 15, 2025.
3. The Owner has received notice of the July 15, 2025 public hearing to be held by the City Council of the City regarding the approval of (i) annexation of the Annexation Territory to the District and (ii) the levy of special taxes within the Annexation Territory in accordance with the rate and method for the District . The Owner agrees that it re ceived adequate notice of the July 15, 2025 hearing.
4. The Owner has received from the City and the City has made available to the Owner necessary and relevant information regarding the proposed annexation and levy of the special tax, as set forth in Resolution No. 25-4841 adopted by the City Council on June 3, 2025 (the “Resolution”).
5. The undersigned understands that if the proceedings for the annexation of the Annexation Territory to the District are undertaken on or after July 15, 2025, an election w ill be held by the District on the propositions set forth in the sample ball ot attached hereto as Attachment “B” less than 90 days after the close of the July 15, 2025 public hearing as in accordance with Section 53339.7 of the Government Code, without the preparation of an impartial analysis, arguments or rebuttals concerning the election as provided for by Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate statement as provided in Section 9401 of the Elections Code and without further notice of such election as required pursuant to the Elections Code or the Government Code. Having been fully advised with respect to the election, in accordance with the authority contained in Government Code Section 53339.7, the Owner waives compliance with the foregoing provisions of the Elections Code and Government Code, with any time limits or other procedural requirements pertaining to the conduct of the election which are not being complied with and consents to having the el ection on any date on or after the close of the July 15, 2025 public hearing and consents to the closing of the election as soon as all ballots are received by the City Clerk. 765
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6. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot arguments and impartial analysis and the time limitations which apply in connection with scheduling, mailing and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient information r egarding the annexation of the Annexation Territory to the District and imposition of the special t ax as set forth in the Resolution to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challengi ng the validity of the election or the levy of the special tax to finance services for the benefit of the Annexation Territory in accordance with the rate and method of apportionment of special tax for the District.
Dated: June __, 2025
WHITEWOOD—MURRIETA, L.P.,
a Delaware limited partnership
By: Cal Hearthstone PBLO GP, LLC,
a Delaware limited liability company
Its: General Partner
By:___________________________
Steven C. Porath
Authorized Representative
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ATTACHMENT “A”
DESCRIPTION OF PROPERTY
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ATTACHMENT “B”
SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
ANNEXATION AND SPECIAL TAX ELECTION
July 15, 2025
You are entitled to cast _____ votes.
To vote, stamp a cross (+) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain another.
PROPOSITION A: Shall the territory described in Attachment “A” of Resolution No. 25-4841 of the City Council of the City of Murrieta be annexed to Community Facilities District No. 2025-2 of the City of Murrieta (Maintenance Services)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Attachment “B” to Resolution No. 25-4841 of the City Council of the City of Murrieta be levied on property described in Attachment “A” of Resolution No . 25 -4841 to p ay for the Services and other purposes described in Resolution No. 24-4841?
YES______
NO_______
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RESOLUTION NO. 25-4870
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2025 -2 OF THE
CITY OF MURRIETA (MAINTENANCE SERVICES),
ANNEXING TERRITORY TO COMMUNITY FACILITIES
DISTRICT NO. 2025 -2 OF THE CITY OF MURRIETA
(MAINTENANCE SERVICES) , AND CALLING ELECTIONS
THEREIN (ANNEXATION NO. 1—RUSTIC MEADOWS)
WHEREAS, on February 4, 2025, the City Council (the “City Council”) of the City of Murrieta adopted Resolution No. 25 -4806 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2025 -2 of the City of Murrieta (Maintenance Services) (“Community Facilities District No. 2025-2” or the “District”) and a Potential Annexation Area therein (the “Potential Annexation Area”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, after a duly noticed public hearing, the City Council adopted Resolution No. 25- 4822 (the “Resolution of Formation”) establishing Community Facilities District No. 2025 -2 and the Potential Annexation Area and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment “A” attached to the Resolution of Formation (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-2; and WHEREAS, pursuant to a petition signed by Whitewood—Murrieta, L.P., a Delaware limited partnership (the “Owner”) , on June 3, 2025 , the City Council adopted Resolution No. 25-4841 (the “Resolution of Intention”), stating its intention to annex the territory described in Attachment “A” to the Resolution of Intention (the “Annexation Territory”) to the District; and WHEREAS, a notice of a public hearing to be held on July 15, 2025 was published and mailed to all landowners of the land proposed to be included within the Annexation Territory as required by law relative to the intention of the City Council to annex the Annexation Territory to the District and to levy a special tax in accordance with the Rate and Method (as defined below); and WHEREAS, on July 15, 2025, this City Council held a noticed public hearing as required by law relative to the proposed annexation of the Annexation Territory, the levy of special taxes therein in accordance with the rate and method of apportionment of special tax attached as Attachment “B” to the Resolution of Intention (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect prior annexations to the District and the annexation described herein; and
WHEREAS, at the July 15, 2025 public hearing all persons desiring to be heard on all matters pertaining to the proposed annexation of the Annexation Territory to the District and the levy of the special taxes within the Annexation Territory in accordance with the Rate and Method were heard and a full and fair hearing was held; and
WHEREAS, at the public hearing, evidence was presented to the City Council on the matters before it, and the proposed annexation of the Annexation Territory to the District and the levy of special 769
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taxes within the Annexation Territory in accordance with the Rate and Method was not precluded by a majority protest of the type described in Section 53339.6 of the Act, and this City Council at the conclusion of the hearing is fully advised as to all matters relating to t he annexation of the Annexation Territory and the levy of the special taxes in accordance with the Rate and Method; and WHEREAS, the City Council has determined that there have been fewer than twelve registered voters residing in the Annexation Territory for the period of 90 days prior to July 15, 2025 and that the qualified electors in Annexation Territory are the landowners therein; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the annexation of the Annexation Territory to the District and to call an election within the Annexation Territory to authorize the levy of special taxes pursuant to the Rate and Method;
NOW, THEREFORE, BE IT R ESOLVED BY THE CITY COUNCIL OF THE CITY OF
MURRIETA, ACTING HAS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025 -2 (MAINTENANCE SERVICES) OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District and the proposed annexation of the Annexation Territory to the District were valid and in conformity with the requirements of law, including the Act.
Section 3. The map showing the original boundaries of the District designated “Proposed Boundary Map Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” is on file in the office of the Ci ty Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities Districts in the Assessor -County Clerk-Recorder’s office of the County of Riverside in B ook No. 95 Page No. 27, on February 20, 2025 as Instrument No. 2025 - 0050551.
In addition, the map showing the Potential Annexation Area designated “Boundaries —Potential Annexation Area Community Facilities District No. 2025 -2 (Maintenance Services) of th e City of Murrieta, County of Riverside, State of California,” is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Fa cilities Districts in the Assessor -County Clerk - Recorder’s office of the County of Riverside in Book No. 95 Page No. 26, on February 20, 2025 as Instrument No. 2025-0050550.
In addition, the map showing the Annexation Territory proposed to be annexed to the District and be made subject to taxation designated “Annexation Map No. 1 Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” is on file in the office of the City Clerk and w as recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 96 Pag e No. 49, on June 10, 2025 as Instrument No. 2025-0175989.
Section 4. The City Council hereby adopts the Rate and Method attached as Attachment “B” to the Resolution of Intention as the applicable rate and method for the Annexation Territory. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the 770
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eligible voters within the Annexation Territory, to levy the proposed special taxes at the rates within the Annexation Territory set forth in the Rate and Method on all non-exempt property within the Annexation Territory sufficient to pay for (i) the Services (as defined in the Rate and Method) , (ii) fund an operating reserve for the costs of Services as determined by the City, and (v) Administrative Exp enses (as defined in the Rate and Method). The District expects to incur, and in certain cases has already incurred, Administrative Expenses in connection with the annexation of the Annexation Territory to the District .
The rate and method of apportionme nt of the special tax applicable to the Annexation Territory is described in detail in Attachment “B” to the Resolution of Intention which is incorporated herein by this reference, and the City Council hereby finds that Attachment “B” to the Resolution of Intention contains sufficient detail to allow each landowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel. The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53 325.3 of the Act and such special tax is not on or based upon the ownership of real property.
Section 5. The City’s City Manager will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of th e Act. The special tax may be levied for such period as the Services are needed, as further described in Attachment “B” to the Resolution of Intention.
Section 6. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non- exempt real property in the Annexation Territory and this lien shall continue in force and effect until the levy of the special tax by the District ceases in accordance with the Rate and Method.
Section 7. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within the Annexation Territory, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within the Annexation Territory and will be benefited by the Services proposed to be provided within Community Facilities District No. 2025-2 and the Annexation Territory.
Section 8. It is hereby further determined that there is no ad valorem property tax currently being levied on property within the Annexation Territory for the exclusive purpose of paying for the same services as are proposed to be provided by Community Facilities District No. 2025-2.
Section 9. Written protests against the annexation of the Annexation Territory to the District and the levy of the special tax therein have not been filed by one -half or more of the registered voters within the boundaries of the Annexation Territory or by the property owners of one -half or more of the area of land within the boundaries of the Annexation Territory or the District. The City Council hereby finds that the proposed specia l tax for the Annexation Territory has not been precluded by a majority protest pursuant to Section 53324 of the Act.
Section 10. An election is hereby called for the Annexation Territory on the propositions of annexation to the District and the levying th e special tax on the property within such Annexation Territory, pursuant to Section 53339.7 of the Act. The propositions to be placed on the ballot for the Annexation Territory are attached hereto as Attachment “A.” Section 11. The date of the foregoing election for the proposed Annexation Territory shall be July 15, 2025 , or such later date as is consented to by the City Clerk and the landowners within the Annexation Territory. The City Clerk shall conduct the elections. Except as otherwise provided by the Act, the elections shall be conducted by personally delivered or mailed ballot and, except as otherwise 771
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provided by the Act, the elections shall be conducted in accordance with the provisio ns of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable.
Section 12. It is hereby found that there are not more than twelve registered voters within the territory of the Annexation Territory, and, pursuant to Section 53339.7 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he or she owns within the Annexation Territory.
Section 13. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
CITY COUNCIL OF THE CITY OF MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 15th day of July, 2025, by the following votes:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
773
A-1
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ATTACHMENT “A”
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
ANNEXATION AND SPECIAL TAX ELECTION
July 15, 2025
PROPOSITION A: Shall the territory described in Attachment “A” of Resolution No. 25-4841 of the City Council of the City of Murrieta be annexed to Community Facilities District No. 2025 -2 of the City of Murrieta (Mainten ance Services)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Attachment “B” to Resolution No. 25-4841 of the City Council of the City of Murrieta be levied on property described in Attachment “A” of Resolution No. 25-4841 to pay for the Services and other purposes described in Resolution No. 24-4841?
YES______
NO_______
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RESOLUTION NO. 25-4871
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA, ACTING IN ITS CAPACITY
AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025 -2 (MAINTENANCE
SERVICES) CERTIFYING THE RESULTS OF THE JULY
15, 2025 ANNEXATION AND SPECIAL TAX ELE CTION
(ANNEXATION NO. 1—RUSTIC MEADOWS)
WHEREAS, the City Council (the “ City Council ”) of City of Murrieta (the “ City”) called and duly held an election on July 15, 2025 within the boundaries of certain territory (the “Annexation Territory”) described in Attachment “A” to Resolution No. 25-4841 adopted by the City Council on June 3, 2025, which territory is to be annexed to Community Facilities District No. 2025 -2 of the City of Murrieta (Maintenance Services) (“Community Facilities District No. 2025-2” or the “District”) pursuant to Resolution No . 25-4870 for the purpose of presenting to the qualified electors within the Annexation Territory the propositions attached hereto as Attachment A; and
WHEREAS, there has been presented to this City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Attachment B;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. Propositions A and B presented to the qualified electors of the District on July 15, 2025 were approved by two -thirds or more of the votes cast at said election and Propositions A and B each has carried. The City Council, acting as the le gislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition A for the purposes described therein.
Section 3. The City Clerk is hereby directed to record in the Assessor -County Clerk- Recorder’s office of the County of Riverside within fifteen days of the date hereof a notice of special tax lien with respect to the District which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.
Section 4. This Resolution shall be effective upon its adoption. 775
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PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 15th day of July, 2025, by the following votes:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
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ATTACHMENT “A”
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
ANNEXATION AND SPECIAL TAX ELECTION
July 15, 2025
PROPOSITION A: Shall the territory described in Attachment “A” of Resolution No. 25 -4841 of the City Council of the City of Murrieta be annexed to Community Facilities District No. 2025-2 of the City of Murrieta (Maintenance Services)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Attachment “B” to Resolution No. 25 -4841 of the City Council of the City of Murrieta be levied on property described in Attachment “A” of Resolution No. 25 -4841 to pay for the Services and other purposes described in Resolution No. 24-4841?
YES______
NO_______
778
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ATTACHMENT “B”
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that I have examined the returns of the Special Tax and Annexation Election for Community Faciliti es District No. 2025-2 (Maintenance Services) of the City of Murrieta. The election was held in the City of Murrieta Council Chambers, 1 Town Square, Murrieta, California, on July 15, 2025. I caused to be delivered ballots to each qualified elector. ______ (_____) ballots were returned.
I further certify that the results of said election and the number of votes cast for and against Propositions A and B are as follows:
PROPOSITION A PROPOSITION B
YES: YES:
NO: NO:
TOTAL: TOTAL:
Dated this 15th day of July, 2025.
CRISTAL MCDONALD, CITY CLERK
779
780
CITY OF MURRIETA
City Council Meeting Agenda
Report
7/15/2025
Agenda Item No. 19.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:
Annexation No. 2 to Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta
RECOMMENDATION
Acting as the Legislative Body of Community Facilities District (CFD) No. 2025-2 (Maintenance Services), hold a public hearing regarding Annexation No. 2;
Adopt Resolution No. 25-4872 entitled: A Resolution of the City Council of the City of Murrieta, Acting as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) Annexing Territory to Community Facilities District No. 2025-2 of the City of Murrieta (Maintenance Services) and Calling Elections Therein (Annexation No. 2 - Kensington Apartments);
Direct the City Clerk to hold an election with CFD 2025-2; and Adopt Resolution No. 25-4873 entitled: A Resolution of the City Council of the City of Murrieta, California, Acting as the Legislative Body of Community Facilities District No. 2025-2 (Maintenance Services) Certifying Election Results of the July 15, 2025, Annexation and Special Tax Election (Annexation No. 2 - Kensington Apartments).
PRIOR ACTION/VOTE
On April 5, 2016, the City Council adopted Resolution No. 16-3536 amending the Land Secured Financing Policy (Vote: 5-0).
On October 3, 2023, the City Council considered an Amendment to the Community Facilities District Goals and Policies and directed staff to present the recommendations in a workshop (Vote: 3-2).
On December 5, 2023, the City Council held a workshop on Community Facilities District Goals and Policies and adopted Resolution No. 23-4717 (Vote: 5-0).
On May 6, 2025, the City formed Community Facilities District No. 2025-1 (Safety Services), Community Facilities District No. 2025-2 (Maintenance Services) and Community Facilities District No. 2025-3 (Discovery Village) (Vote: 5-0).
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Agenda Item No. 19.
On June 3, 2025, the City Council adopted separate Resolutions of Intention (Resolution Nos. 25-4841 and 25 -4842) regarding Annexation No. 2 and Annexation No. 2 to Community Facilities District No. 2025-2 (Maintenance Services) and set public hearings for the proposed annexation for July 15, 2025 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
Community Facilities Districts
Community Facility Districts (CFDs) are formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Mello-Roos Act”) and are a widely used financing mechanism, frequently used to fund infrastructure associated with new significant (large) development projects, such as water and sewer facilities, storm drain facilities, roads, and parks and to finance the provision of certain municipal services.
A simplified example of CFD implementation is as follows:
· A developer submits a petition to form the CFD to the City of Murrieta (City) or Special District (water districts frequently form CFDs) to start formation proceedings. · In the City’s case, staff presents the petition to the City Council for approval. · The District is formed by a vote of the property owners. · Once approved, the City approves the issuance of bonds, which are sold to investors. · Proceeds from the sale of the bonds are used to build the infrastructure associated with the project. · The bonds are paid off over time (typically 30 years) by the buyers of homes within the project as a part of their property tax bill.
On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to state law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed;
· Adding an escalator of up to two percent (2%) per year for facilities; · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing services;
· Allowing Development Impact Fees (DIF) to be financed; and · Increasing the maximum cap on the assessed value of a property from 1.8% to 2%.
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Agenda Item No. 19.
Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. The services that can be funded include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls).
· Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities. · Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems. · Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the local agency or by another local agency (by agreement).
Community Facilities District No. 2025-2 (Maintenance Services) On May 6, 2025, the City Council approved the formation of Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta, and CFD No. 2025-2 is authorized to levy a special tax in accordance with the Mello-Roos Act on parcels of residential property to finance public maintenance services.
Services eligible to be financed by CFD No. 2025-2 include maintenance and lighting of parks, parkways, streets, roads, and open space, maintenance and operation of water quality improvements, including storm drainage and flood protection facilities, and public street sweeping. CFD No. 2025-2 currently consists only of the property within the Discovery Village development project and designated the remainder of the City as a “Potential Annexation Area.”
New development projects meeting certain design criteria are required by the City’s Community Facilities District Goals and Policies, as amended in December 2023, to annex to CFD No. 2025-2. Accordingly, the owner of property within the proposed Kensington Apartments development project (the “Property Owner”) submitted a petition requesting that the property within its development project be annexed into CFD No. 2025 -2. If approved by the City Council and the Property Owner, the property within the Kensington Apartments development project would be annexed to CFD No. 2025-2 as “Tax Zone 2.” The special taxes within Tax Zone 2 of CFD No. 2025-2 are $98 per residential unit. The special taxes in each of Tax Zone 2 will increase on each July 1, commencing on July 1, 2026 by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
The Resolution of Intention adopted on June 3, 2025, was the first step in the process of annexing property to CFD No. 2025-2. It declared the City’sintention to consider Annexation No. 2 and called for a public hearing on the proposed annexation to take place on July 15, 2025.
Following the close of the public hearing for the proposed annexation to CFD No. 2025-2, the City Council will be asked to adopt a Resolution of Annexation for Annexation No. 2 (Kensington Apartments) which approves CITY OF MURRIETA Printed on 7/10/2025Page 3 of 4
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Agenda Item No. 19.
be asked to adopt a Resolution of Annexation for Annexation No. 2 (Kensington Apartments) which approves the annexation to CFD No. 2025-2 and the levy of the special taxes in Tax Zone 2, in accordance with the Rate and Method of Apportionment for CFD No. 2025-2. The Resolution of Annexation also calls for elections to be held within Tax Zone 2 of CFD No. 2025-2 to submit to the qualified electors ballot measures on the approval of the annexations and the special taxes.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying that there are no registered voters residing within the boundaries of the proposed annexation area. Accordingly, under the Mello-Roos Act, only property owners owning land are eligible to vote at the elections, with each owner having one vote for each acre (or portion thereof) that they own within the annexation area. The Property Owner has executed a consent and waiver of certain election procedures for CFD No. 2025-2 with respect to the elections, including certain timing requirements with respect to the elections, in accordance with the Mello- Roos Act. Accordingly, if the City Council approves the Resolution of Annexation, the City Clerk will conduct the elections. The Property Owner will have delivered its ballot to the City Clerk in advance of the public hearing, the City Clerk will announce the election results, and the City Council will be asked to adopt a Resolution Certifying the Election Results. Upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon, the Resolution Certifying the Election Results will direct the City Clerk to record notices of special tax lien on the property within each of the proposed annexation areas.
The owner of property within the proposed Kensington Apartments project is Murrieta Pacific Associates, Inc.
The Kensington Apartments project is a proposed affordable housing project located near the corner of Washington Avenue and Magnolia Street.
FISCAL IMPACT
The Property Owner has made a deposit to pay for the costs of the annexation proceedings to CFD No. 2025-
2. If the proposed annexation is approved and subject to necessary Council and voter approvals, CFD No. 2025-2 will annually levy special taxes on all of the taxable property within the annexation property in accordance with the RMA (as attached to the Resolution of Intention). Such special taxes will be used to pay for the costs of maintenance services and administration of the CFD No. 2025-2. The levying of the special taxes for services is expected to alleviate some of the financial impact of the new development on the costs of providing such services to the Property by the City. At full build-out, special tax revenues are projected to total $12,263 annually for the Kensington Apartment project.
ATTACHMENTS
1. Landowner Waiver
2. Resolution No. 25-4872
3. Resolution No. 25-4873
4. Certificate of the Registrar of Voters
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WAIVER OF CERTAIN ELECTION PROCEDURES
WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
(ANNEXATION NO. 2—KENSINGTON APARTMENTS)
The undersigned, Caleb Roope , acting on behalf of Murrieta Pacific Associates, A California Limited Partnership, a California limited partnership (the “Owner”), hereby certifies to the City of Murrieta (the “City”), with respect to the proposed annexation of territory Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta (the “District”), as follows:
1. The undersigned has been duly authorized by the Owner and possesses all authority necessary to ex ecute this Waiver on behalf of the Owner in connection with the election to be called by the City Council of the City with respect to the District. The Owner hereby appoints Caleb Roope to act as its authorized representative to vote in the election referred to herein and certifies that his true and exact signature is set forth below:
Signature of Caleb Roope: __________________________________
2. The Owner is the present owner of _____ acres of land as described in Attachment “A” hereto (the “Annexa tion Territory”) . There are no registered voters residing within the Annexation Territory owned by the Owner and have been none during the 90 -day period preceding July 15, 2025.
3. The Owner has received notice of the July 15, 2025 public hearing to be held by the City Council of the City regarding the approval of (i) annexation of the Annexation Territory to the District and (ii) the levy of special taxes within the Annexation Territory in accordance with the rate and method for the District . The Owner a grees that it received adequate notice of the July 15, 2025 hearing.
4. The Owner has received from the City and the City has made available to the Owner necessary and relevant information regarding the proposed annexation and levy of the special tax, as set forth in Resolution No. 25-4842 adopted by the City Council on June 3, 2025 (the “Resolution”).
5. The undersigned understands that if the proceedings for the annexation of the Annexation Territory to the District are undertaken on or after July 15, 2025, an election will be held by the District on the propositions set forth in the sample ball ot attached hereto as Attachment “B” less than 90 days after the close of the July 15, 2025 public hearing as in accordance with Section 53339.7 of the Government C ode, without the preparation of an impartial analysis, arguments or rebuttals concerning the election as provided for by Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate statement as provided in Section 9401 o f the Elections Code and without further notice of such election as required pursuant to the Elections Code or the Government Code. Having been fully advised with respect to the election, in accordance with the authority contained in Government Code Section 53339.7, the Owner waives compliance with the foregoing provisions of the Elections Code and Government Code, with any time limits or other procedural requirements pertaining to the conduct of the election which are not being complied with and consents to 785
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having the election on any date on or after the close of the July 15, 2025 public hearing and consents to the closing of the election as soon as all ballots are received by the City Clerk.
6. The undersigned hereby represents that compliance with the pr ocedural requirements for conducting the election, including the receipt of any ballot arguments and impartial analysis and the time limitations which apply in connection with scheduling, mailing and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient information r egarding the annexation of the Annexation Territory to the District and imposition of the special t ax as set forth in the Resolution to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challengi ng the validity of the election or the levy of the special tax to finance services for the benefit of the Annexation Territory in accordance with the rate and method of apportionment of special tax for the District.
Dated: June __, 2025
MURRIETA PACIFIC ASSOCIATES, A
CALIFORNIA LIMITED PARTNERSHIP,
a California limited partnership
By: TPC Holdings IX, LLC,
an Idaho limited liability company,
Its: Administrative General Partner
By: Pacific West Communities, Inc.,
an Idaho corporation
Its: Manager
By: ____________________
Name: Caleb Roope
Its: President and CEO
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ATTACHMENT “A”
DESCRIPTION OF PROPERTY
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ATTACHMENT “B”
SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
ANNEXATION AND SPECIAL TAX ELECTION
July 15, 2025
You are entitled to cast _____ votes.
To vote, stamp a cross (+) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk and obtain another.
PROPOSITION A: Shall the territory described in Attachment “A” of Resolution No. 25-4842 of the City Council of the City of Murrieta be annexed to Community Facilities District No. 2025-2 of the City of Murrieta (Maintenance Services)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Attachment “B” to Resolution No. 25-4842 of the City Council of the City of Murrieta be levied on property described in Attachment “A” of Resolution No . 25 -4842 to pay for the Services and other purposes described in Resolution No. 24-4842?
YES______
NO_______
788
RESOLUTION NO. 25-4872
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2025 -2 OF THE
CITY OF MURRIETA (MAINTENANCE SERVICES),
ANNEXING TERRITORY TO COMMUNITY FACILITIES
DISTRICT NO. 2025 -2 OF THE CITY OF MURRIETA
(MAINTENANCE SERVICES) , AND CALLING
ELECTIONS THEREIN (ANNEXATION NO. 2 —
KENSINGTON APARTMENTS)
WHEREAS, on February 4, 2025, the City Council (th e “City Council”) of the City of Murrieta adopted Resolution No. 25 -4806 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District No. 2025 -2 of the City of Murrieta (Maintenance Services) (“Community Facilities Di strict No. 2025 -2” or the “District”) and a Potential Annexation Area therein (the “Potential Annexation Area”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, after a duly noticed public hearing, the City Council adopted Resolution No. 25-4822 (the “Resolution of Formation”) establishing Community Facilities District No. 2025-2 and the Potential Annexatio n Area and calling a special election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment “A” attached to the Resolution of Formation (the “Original Rate and Method”), and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-2; and
WHEREAS, pursuant to a petition signed by Murrieta Pacific Associates, A California Limited Partnership, a California limited partnership (the “Owner”), on June 3, 2025 , the City Council adopted Resolution No. 25-4842 (the “Resolution of Intention”) , stating its intention to annex the territory described in Attachment “A” to the Resolution of Intention (the “Annexation Territory”) to the District; and
WHEREAS, a notice of a public hearing to be held on July 15, 2025 was published and mailed to all landowners of the land proposed to be included within the Annexation Territory as required by law relative to the intention of the City Council to annex the Annexation Territory to the District and to levy a special tax in accordance with the Rate and Method (as defined below) ; and
WHEREAS, on July 15, 2025 , this City Council held a noticed public hearing as required by law relative to the proposed annexation of the Annexation Territory , the levy of special taxes therein in accordance with the rate and method of apportionment of special tax attached as Attachment “B” to the Resolution of Intention (the “Rate and Method”), which Rate and Method is identical to the Original Rate and Method in all respects except that Appendix A thereto has been updated in accordance with the terms of the Original Rate and Method to reflect prior annexations to the District and the annexation described herein; and 789
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WHEREAS, at the July 15, 2025 public hearing all persons desiring to be heard on all matters pertaining to the proposed annexation of the Annexation Territory to the District and the levy of the special taxes within the Annexation Territory in accordance with the Rate and Method were heard and a full and fair hearing was held; and WHEREAS, at the public hearing, evidence was presented to the City Council on the matters before it, and the proposed annexation of the Annexation Territory to the District and the levy of special taxes within the Annexation Territory in accordance with the Rate and Method was not precluded by a majority protest of the type described in Section 53339.6 of the Act, and this City Council at the conclusion of the hearing is ful ly advised as to all matters relating to the annexation of the Annexation Territory and the levy of the special taxes in accordance with the Rate and Method; and
WHEREAS, the City Council has determined that there have been fewer than twelve registered voters residing in the Annexation Territory for the period of 90 days prior to July 15, 2025 and that the qualified electors in Annexation Territory are the landowners therein; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the annexation of the Annexation Territory to the District and to call an election within the Annexation Territory to authorize the levy of special taxes pursuant to the Rate and Method;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF MURRIETA, ACTING HAS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025 -2 (MAINTENANCE SERVICES) OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District and the proposed annexation of the Annexation Territory to the District were valid and in conformity with the requirements of law, including the Act.
Section 3. The map showing the original boundaries of the District designated “Proposed Boundary Map Community Facilities District No. 2025 -2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” is on file in the office of the Ci ty Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in B ook No. 95 Page No. 27, on February 20, 2025 as Instrument No. 2025-0050551.
In addition, the map showing the Potential Annexation Area designated “Boundaries — Potential Annexation Area Community Facilities District No. 2025 -2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Fa cilities Districts in the 790
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Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 95 Page No. 26, on February 20, 2025 as Instrument No. 2025-0050550.
In addition, t he map showing the Annexation Territory proposed to be annexed to th e District and be made subject to taxation designated “Annexation Map No. 1 Community Facilities District No. 2025 -2 (Maintenance Services) of the City of Murrieta, County of Riverside, State of California,” is on file in the office of the City Clerk and w as recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the City of County Book of Maps of Assessment and Community Facilities Districts in the Assessor -County Clerk- Recorder’s office of the County of Riverside in Book No. 96 Pag e No. 50, on June 10, 2025 as Instrument No. 2025-0175990.
Section 4. The City Council hereby adopts the Rate and Method attached as Attachment “B” to the Resolution of Intention as the applicable rate and method for the Annexation Territory. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within the Annexation Territory , to levy the proposed special taxes at the rates within the Annexation Territory set forth in the Rate and Method on all non-exempt property within the Annexation Territory sufficient to pay for (i) the Services (as defined in the Rate and Method) , (ii) fund an operating reserve for the costs of Services as determined by the City, and (v) Administrative Expenses (as defined in the Rate and Method). The District expects to incur, and in certain cases has already incurred, Administrative Expenses in connection with the annexation of the Annexation Territory to the District . The rate and method of apportionment of the special tax applicable to the Annexation Territory is described in detail in Attachment “B” to the Resolution of Intention which is incorporated herein by this reference, and the City Council hereby finds that Attachment “B” to the Resolution of Intention contains sufficient detail to allow each landowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel. The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property.
Section 5. The City’s City Manager will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act. The special tax may be levied for such period as the Services are needed, as further described in Attachment “B” to the Resolution of Intention.
Section 6. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets a nd Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Annexation Territory and this lien shall continue in force and effect until the levy of the special tax by the District ceases in accordance with the Rate and Method.
Section 7. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within the Annexation Territory , if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within the Annexation 791
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Territory and will be benefited by the Services proposed to be provided within Community Facilities District No. 2025-2 and the Annexation Territory.
Section 8. It is hereby further determined that there is no ad valorem property tax currently being levied on property within the Annexation Territory for the exclusive purpose of paying for the same services as are proposed to be provided by Community Facilities District No. 2025-2.
Section 9. Written protests against the annexation of the Annexation Territory to the District and the levy of the special tax therein have not been filed by one -half or more of the registered voters within the boundaries of the Annexation Territory or by the property owners of one-half or more of the area of land within the boundaries of the Annexation Territory or the District. The City Council hereby finds that the proposed specia l tax for the Annexation Territory has not been precluded by a majority protest pursuant to Section 53324 of the Act.
Section 10. An election is hereby called for the Annexation Territory on the propositions of annexation to the District and the levying the special tax on the property within such Annexation Territory , pursuant to Section 53339.7 of the Act. The propositions to be placed on the ballot for the Annexation Territory are attached hereto as Attachment “A.” Section 11. The date of the foregoing election for the proposed Annexation Territory shall be July 15, 2025, or such later date as is consented to by the City Clerk and the landowners within the Annexation Territory . The City Clerk shall conduct the elections. Except a s otherwise provided by the Act, the elections shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the elections shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable.
Section 12. It is hereby found that there are not more than twelve registered voters within the territory of the Annexation Territory , and, pursuant to Section 53339.7 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he or she owns within the Annexation Territory.
Section 13. This Resolution shall be effective upon its adoption. 792
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PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
793
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution No. 25-4872 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 15th day of July, 2025, by the following votes:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
794
A-1
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ATTACHMENT “A”
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
ANNEXATION AND SPECIAL TAX ELECTION
July 15, 2025
PROPOSITION A: Shall the territory described in Attachment “A” of Resolution No. 25-4842 of the City Council of the City of Murrieta be annexed to Community Facilities District No. 2025 -2 of the City of Murrieta (Maintenance Services)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Attachment “B” to Resolution No. 25-4842 of the City Council of the City of Murrieta be levied on property described in Attachment “A” of Resolution No . 25-4842 to pay for the Services and other purposes described in Resolution No. 24-4842?
YES______
NO_______
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RESOLUTION NO. 25-4873
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA, ACTING IN ITS CAPACITY
AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025 -2 (MAINTENANCE
SERVICES) CERTIFYING THE RESULTS OF THE JULY
15, 2025 ANNEXATION AND SPECIAL TAX ELE CTION
(ANNEXATION NO. 2—KENSINGTON APARTMENTS)
WHEREAS, the City Council (the “ City Council ”) of City of Murrieta (the “ City”) called and duly held an election on July 15, 2025 within the boundaries of certain territory (the “Annexation Territory”) described in Attachment “A” to Resolution No. 25-4842 adopted by the City Council on June 3, 2025, which territory is to be annexed to Community Facilities District No. 2025 -2 of the City of Murrieta (Maintena nce Services) (“Community Facilities District No. 2025-2” or the “District”) pursu ant to Resolution No . 25-4872 for the purpose of presenting to the qualified electors within the Annexation Territory the propositions attached hereto as Attachment A; and
WHEREAS, there has been presented to this City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Attachment B;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. Propositions A and B presented to the qualified electors of the District on July 15, 2025 were approved by two -thirds or more of the votes cast at said election and Propositions A and B each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition A for the purposes described therein.
Section 3. The City Clerk is hereby directed to record in the Assessor -County Clerk- Recorder’s office of the County of Riverside within fifteen days of the date hereof a notice of special tax lien with respect to the District which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.
Section 4. This Resolution shall be effective upon its adoption. 796
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PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
797
3 4921-2170-1967v2/022972-0048
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution No. 25-4873 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 15th day of July, 2025, by the following votes:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
798
A-1
4921-2170-1967v2/022972-0048
ATTACHMENT “A”
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (MAINTENANCE SERVICES)
OF THE CITY OF MURRIETA
ANNEXATION AND SPECIAL TAX ELECTION
July 15, 2025
PROPOSITION A: Shall the territory described in Attachment “A” of Resolution No. 25 -4842 of the City Council of the City of Murrieta be annexed to Community Facilities District No. 2025 -2 of the City of Murrieta (Maintenance Services)?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Attachment “B” to Resolution No. 25 -4841 of the City Council of the City of Murrieta be levied on property described in Attachment “A” of Resolution No. 25 -4842 to pay for the Services and other purposes described in Resolution No. 24-4842?
YES______
NO_______
799
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ATTACHMENT “B”
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that I have examined the returns of the Special Tax and Annexation Election for Community Facilities District No. 2025-2 (Maintenance Services) of the City of Murrieta. The election was held in the City of Murrieta Council Chambers, 1 Town Square, Murrieta, Calif ornia, on July 15, 2025. I caused to be delivered ballots to each qualified elector. ______ (_____) ballots were returned.
I further certify that the results of said election and the number of votes cast for and against Propositions A and B are as follows:
PROPOSITION A PROPOSITION B
YES: YES:
NO: NO:
TOTAL: TOTAL:
Dated this 15th day of July, 2025.
CRISTAL MCDONALD, CITY CLERK
800
801
CITY OF MURRIETA
City Council Meeting Agenda
Report
7/15/2025
Agenda Item No. 20.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:
Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta
RECOMMENDATION
Hold a public hearing regarding the formation of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta;
Adopt Resolution No. 25-4874 entitled: A Resolution of the City Council of the City of Murrieta, California, Establishing Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta, Authorizing the Levy of a Special Tax Therein, Calling an Election and Approving and Authorizing Certain Actions Related Thereto;
Direct the City Clerk to hold an election within CFD No. 2025-S; Adopt Resolution No. 25-4875 entitled: A Resolution of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta Certifying Election Results; and
Introduce Ordinance No. 621-25 entitled: An Ordinance of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta Authorizing the Levy of Special Taxes.
PRIOR ACTION/VOTE
On April 5, 2016, the City Council adopted Resolution No. 16-3536 amending the Land Secured Financing Policy (Vote: 5-0).
On October 3, 2023, the City Council considered an Amendment to the Community Facilities District Goals and Policies and directed staff to present the recommendations in a workshop (Vote: 3-2).
On December 5, 2023, the City Council held a workshop on Community Facilities District Goals and Policies and adopted Resolution No. 23-4717 (Vote: 5-0).
On May 6, 2025, the City formed Community Facilities District No. 2025-1 (Safety Services), Community CITY OF MURRIETA Printed on 7/10/2025Page 1 of 5
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Agenda Item No. 20.
Facilities District No. 2025-2 (Maintenance Services) and Community Facilities District No. 2025-3 (Discovery Village) (Vote:5-0).
On June 3, 2025, the City Council adopted a Resolution of Intention (Resolution Np. 25-4838) to establish Community Facilities District No. 2025-S (Safety Services) and set a public hearing for the formation of Community Facilities District No. 2025-S (Safety Services) for July 15, 2025 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
Community Facilities Districts
Community Facility Districts (CFDs) are formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Mello-Roos Act”) and are a widely used financing mechanism, frequently used to fund infrastructure associated with new significant (large) development projects, such as water and sewer facilities, storm drain facilities, roads, and parks and to finance the provision of certain municipal services.
A simplified example of CFD implementation is as follows:
· A developer submits a petition to form the CFD to the City or Special District (water districts frequently form CFDs) to start formation proceedings.
· In the City’s case, staff presents the petition to the City Council for approval. · The District is formed by a vote of the property owners. · Once approved, the city approves the issuance of bonds, which are sold to investors. · Proceeds from the sale of the bonds are used to build the infrastructure associated with the project. · The bonds are paid off over time (typically 30 years) by the buyers of homes within the project as a part of their property tax bill.
On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to state law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed;
· Adding an escalator of up to two percent (2%) per year for facilities; · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing services;
· Allowing Development Impact Fees (DIF) to be financed; and CITY OF MURRIETA Printed on 7/10/2025Page 2 of 5
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Agenda Item No. 20.
· Increasing the maximum cap on the assessed value of a property from 1.8% to 2.0%.
Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. The services that can be funded include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls).
· Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities · Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems. · Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the local agency or by another local agency (by agreement).
Community Facilities District No. 2025-1 (Safety Services) On May 6, 2025, the City Council and the landowner for the Discovery Village project approved the formation of Community Facilities District No. 2025-1 (Safety Services) in order to finance public safety services. CFD No. 2025-1 currently consists only of the property within the Discovery Village development project and designated the remainder of the City as a “Potential Annexation Area,” whereby new development projects meeting certain design criteria will be required by the City to annex to CFD No. 2025-1. However, the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1, as approved by the City Council and the landowner within CFD No. 2025-1 on May 6, 2025, includes special tax rates for multi-family residential property and single-family residential property, and the special taxes for each category of property will increase annually each July 1 by four percent (4%), commencing July 1, 2026, but does not include a special tax for affordable housing residential property. When approving the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1, the City Council directed the formation of a new public safety services CFD to apply to future development projects within the City. This new public safety will impose a special tax on affordable housing residential property, multi-family residential property, and single-family residential property, which includes an annual escalation of the special tax for each category of property. Therefore, it is not expected that future development projects within the City will be annexed into CFD No. 2025-1.
The Rustic Meadows Project, the Kensington Apartments Project and Community Facilities District No. 2025-S (Safety Services)
The owner of property within the proposed Rustic Meadows development project and the owner of property within the proposed Kensington Apartments development project (collectively, the “Property Owners”) are required by the City’sCommunity Facilities District Goals and Policies, as amended in December 2023, to either annex to or request the formation of a Public Safety Services CFD. Accordingly, the Property Owners have submitted petitions requesting that the City form a new public safety services CFD which includes a special tax on affordable housing residential property, multi-family residential property, and single-family residential property which includes an annual escalation of the special tax for each category of property. The new public safety CFD is expected to be called Community Facilities District No. 2025-S (Safety Services) of CITY OF MURRIETA Printed on 7/10/2025Page 3 of 5
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Agenda Item No. 20.
new public safety CFD is expected to be called Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta.
Similar to CFD No. 2025-1, CFD No. 2025-S will initially consist only of the property within the Rustic Meadows development project and the Kensington Apartments development project; however, the remainder of the City will be designated as a “PotentialAnnexation Area”and new development projects meeting certain design criteria will be required to annex to CFD No. 2025-S.
CFD No. 2025-S would levy a special tax in accordance with the Mello-Roos Act on parcels of residential property to finance public safety services. Services eligible to be financed by CFD No. 2025-S include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services. The special taxes within CFD No. 2025-S are $150 per unit of affordable housing residential property, $468 per unit of multi-family residential property and $580 per unit of single-family property and the special taxes for each category of property will increase annually each July 1 by four percent (4%), commencing July 1, 2026.
The Resolution of Intention adopted on June 3, 2025, was the first step in the process of forming CFD No. 2025-S and declared the City’sintention to establish CFD No. 2025-S and called for a public hearing on the matter of the formation of CFD No. 2025-S to take place on July 15, 2025.
In connection with the public hearing, Spicer Consulting Group has prepared a Public Hearing Report, which describes and analyzes the services to be financed by CFD No. 2025-S and the estimated costs of such services. Following the closure of the public hearing for CFD No. 2025-S, the City Council will be asked to adopt a Resolution of Formation which approves the formation of CFD No. 2025-S and the levy of the special taxes in CFD No. 2025-S in accordance with the Rate and Method of Apportionment for CFD No. 2025-S. The Resolution of Formation calls for an election to submit to the qualified voters of CFD No. 2025-S ballot measures on the approval of the special taxes and appropriations limits for CFD No. 2025-S.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County for CFD No. 2025-S certifying that there are no registered voters residing within the boundaries of CFD No. 2025-S. Accordingly, under the Mello-Roos Act, only property owners owning land are eligible to vote at the election, with each owner having one vote for each acre (or portion thereof) that they own within CFD No. 2025-S. The Property Owners have each executed a consent and waiver of certain election procedures for CFD No. 2025-S with respect to the election, including certain timing requirements with respect to the election, in accordance with the Mello-Roos Act. Accordingly, if the City Council approves the Resolution of Formation, the City Clerk will conduct the election. The Property Owners will have delivered their ballots to the City Clerk in advance of the public hearing, and the City Clerk will announce the election results, and the City Council will be asked to adopt Resolutions Certifying the Election Results for CFD No. 2025-S. Upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon, the Resolution Certifying the Election Results will direct the City Clerk to record a notice of special tax lien on the property within CFD No. 2025-S. The City Council will then be asked to introduce an ordinance authorizing the levy of the special tax within CFD No. 2025-S in accordance with the Rate and Method of Apportionment.
The owner of the property within the proposed Rustic Meadows project within the City is Whitewood-Murrieta, L.P. The Rustic Meadows project is located at the Southeast corner of the intersection of Clinton Keith Road and Whitewood Road. At full buildout, the project is proposed to include approximately 153 single-family homes and will be developed by Century Communities of California, LLC.
The owner of property within the proposed Kensington Apartments project is Murrieta Pacific Associates, Inc.
The Kensington Apartments project is a proposed affordable housing project located near the corner of CITY OF MURRIETA Printed on 7/10/2025Page 4 of 5
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Agenda Item No. 20.
Washington Avenue and Magnolia Street.
FISCAL IMPACT
The Property Owners have made deposits to pay for the costs of the formation proceedings of CFD No. 2025- S. The deposit made by Century Communities may be reimbursed to Century Communities from proceeds of a future bond issuance by the separate facilities CFD being formed in connection with the Rustic Meadows development. If established and subject to necessary Council and voter approvals, CFD No. 2025-S will annually levy special taxes on all of the taxable property within the CFD No. 2025-S in accordance with the RMA (as attached to the Resolution of Intention). Such special taxes will be used to pay for the costs of safety services and administration of the CFD No. 2025-S. The levying of the special taxes for services is expected to alleviate some of the financial impact of the new development on the costs of providing such services to the Property by the City. At full build-out, special tax revenues are projected to total $88,740 for the Rustic Meadows project and $18,900 for the Kensington Apartments project.
ATTACHMENTS
1. Landowner Waiver (Whitewood Murrieta) (CFD 2025-S)
2. Landowner Waiver (Murrieta Pacific Associates) (CFD 2025-S)
3. Public Hearing Report (CFD 2025-S)
4. Resolution No. 25-4874
5. Resolution No. 25-4875
6. Ordinance No. 621-25
7. Certificate of the Registrar of Voters - Location 1 (CFD 2025-S)
8. Certificate of the Registrar of Voters - Location 2 (CFD 2025-S) CITY OF MURRIETA Printed on 7/10/2025Page 5 of 5
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WAIVER OF CERTAIN ELECTION PROCEDURES
WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
The undersigned, Steven C. Porath, acting on behalf of Whitewood—Murrieta, L.P., a Delaware limited partnership (the “Owner”), hereby certifies to the City of Murrieta (the “City”), with respect to the proposed formation of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (the “District”), as follows:
1. The undersigned has been duly authorized by the Owner and possesses all authority necessary to execute this Waiver on behalf of the Owner in connection with the election to be called by the City C ouncil of the City with respect to the District. The Owner hereby appoints Steven C. Porath to act as its authorized representatives to vote in the election referred to herein and certifies that their true and exact signatures are set forth below:
Signature of Steven C. Porath: __________________________________
2. The Owner is the present owner of 9.99 acres of land located within the proposed boundaries of the District. There are no registered voters residing within the territory owned by the Owner and have been none during the 90-day period preceding July 15, 2025.
3. The Owner has received notice of the July 15, 2025 public hearing to be held by the City Council of the City regarding the levy of a special tax in the District. The Owner agrees that it received adequate notice of the July 15, 2025 hearing.
4. The Owner has received from the City and t he City has made available to the Owner necessary and relevant information regarding the proposed formation of the District and the imposition of the special tax as set forth in Resolution No. 25 -4838 adopted by the City Council on June 3, 2025 (together, the “Resolution”) to finance the services as set forth in the Resolution.
5. The undersigned understands that if the District is formed on or after July 15, 2025, an election will be held by the District on the propositions set forth in the sample ballot attached hereto as Exhibit “A” less than 90 days after the close of the July 15, 2025 public hearing as in accordance with Section 53326 of the Government Code, without the preparation of an impartial analysis, arguments or rebuttals concerning the election as provided for by Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate statement as provided in Section 9401 of the Elections Code and without further notice of such election as required pursuant to the Elections Code or the Government Code. Having been fully advised with respect to the election, in accordance with the authority contained in Government Code Sections 53326 and 53327, the Owner waives compliance with the foregoing provisions of the Elections Code and Government Code, with any time limits or other procedural requirements pertaining to the conduct of the election which are not being complied with and consents to having the election on any date on or after the close of the July 15, 2025 public hearing and consents to the closing of the election as soon as all ballots are received by the City Clerk.
6. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot argum ents and impartial analysis and the time limitations which apply in connection with scheduling, mailing 807
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and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient information regarding the imposition of the special tax as set forth in the Resolution to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challenging the validity of the election, the validity of any bonded indebtedness issued by the District as approved at the election, or the levy of the special tax to finance services for the benefit of the District.
Dated: June __, 2025
WHITEWOOD—MURRIETA, L.P.,
a Delaware limited partnership
By: Cal Hearthstone PBLO GP, LLC,
a Delaware limited liability company
Its: General Partner
By:___________________________
Steven C. Porath
Authorized Representative
808
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EXHIBIT A
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
SPECIAL TAX ELECTION
July 15, 2025
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4838 of the City Cou ncil of the City of Murrieta be levied to pay for the Services, Services Incidental
Expenses and other purposes described in Resolution
No. 25-4838 of the City Council of the City of Murrieta?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 20 25-2026, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2025-S (Safety Services) be an amount
equal to $1,000,000,000?
YES______
NO_______
809
4922-5251-0031/022972-0046
WAIVER OF CERTAIN ELECTION PROCEDURES
WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
The undersigned, Caleb Roope, acting on behalf of Murrieta Pacific Associates , a California limited partnership (the “Owner”), hereby certifies to the City of Murrieta (the “City”), with respect to the proposed formation of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (the “District”), as follows:
1. The undersigned has been duly authorized by the Owner and possesses all authority necessary to execute this Waiver on behalf of the Owner in connection with the election to be called by the City Council of the City with respect to the District. The Owner hereby appoints Caleb Roope to act as its authorized representatives to vote in the election referred to herein and certifies that their true and exact signatures are set forth below:
Signature of Caleb Roope: __________________________________
2. The Owner is the present owner of _____ acres of land located within the proposed boundaries of the District. There are no registered voters residing within the territory owned by the Owner and have been none during the 90-day period preceding July 15, 2025.
3. The Owner has received notice of the July 15, 2025 public hearing to be held by the City Council of the City regarding the levy of a special tax in the District. The Owner agrees that it received adequate notice of the July 15, 2025 hearing.
4. The Owner has received from the City and the City has made a vailable to the Owner necessary and relevant information regarding the proposed formation of the District and the imposition of the special tax as set forth in Resolution No. 25 -4838 adopted by the City Council on June 3, 2025 (together, the “Resolution”) to finance the services as set forth in the Resolution.
5. The undersigned understands that if the District is formed on or after July 15, 2025, an election will be held by the District on the propositions set forth in the sample ballot attached hereto as Exhibit “A” less than 90 days after the close of the July 15, 2025 public hearing as in accordance with Section 53326 of the Government Code, without the preparation of an impartial analysis, arguments or rebuttals concerning the election as provided for b y Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate statement as provided in Section 9401 of the Elections Code and without further notice of such election as required pursuant to the Elections Code or the Government Code. Having been fully advised with respect to the election, in accordance with the authority contained in Government Code Sections 53326 and 53327, the Owner waives compliance with the foregoing provisions of the Elections Code and Government Cod e, with any time limits or other procedural requirements pertaining to the conduct of the election which are not being complied with and consents to having the election on any date on or after the close of the July 15, 2025 public hearing and consents to t he closing of the election as soon as all ballots are received by the City Clerk.
6. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receipt of any ballot arguments and impartial analysis and the time limitations which apply in connection with scheduling, mailing 810
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and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient information regarding the imposition of the special tax as set forth in the Resolution to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challenging the validity of the election, the validity of a ny bonded indebtedness issued by the District as approved at the election, or the levy of the special tax to finance services for the benefit of the District.
Dated: June __, 2025
MURRIETA PACIFIC ASSOCIATES, A
CALIFORNIA LIMITED PARTNERSHIP,
a California limited partnership
By: TPC Holdings IX, LLC,
an Idaho limited liability company,
Its: Administrative General Partner
By: Pacific West Communities, Inc.,
an Idaho corporation
Its: Manager
By: ____________________
Name: Caleb Roope
Its: President and CEO
811
B-1
4922-5251-0031/022972-0046
EXHIBIT A
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
SPECIAL TAX ELECTION
July 15, 2025
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4838 of the City Council of the City of Murrieta be
levied to pay for the Services, Services Incidental
Expenses and other purposes described in Resolution
No. 25-4838 of the City Council of the City of Murrieta?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 2025 -2026, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2025 -S (Safety Services) be an amount
equal to $1,000,000,000?
YES______
NO_______
812
Public Hearing Report
Community Facilities District No. 2025-S
(Safety Services)
July 15, 2025
813
Table of Contents
Sections P age ____________________________________________ 1 Introduction ______________________________________________________ 1 2 Description of Services ___________________________________________________ 2 3 Cost Estimate ______________________________________________________ 3 4 Proposed Development ___________________________________________________ 4 5 Rate and Method of Apportionment _________________________________________ 5 6 Certifications ______________________________________________________ 6
Tables Page
3-1 Cost Estimate ______________________________________________________ 3
Appendices P age ____________________________________________ A Rate and Method of Apportionment ____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention
814
1 Introduction Page | 1
City of Murrieta
CFD No. 2025-S (Safety Services)
Public Hearing Report
Background
On June 3, 2025, the City Council of the City of Murrieta (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (the “CFD No. 2025-S” or “District”), Resolution No. 2025-4838, pursuant to the prov isions of the “Mello-Roos Community Facilitie s Act of 1982”, being Ch apter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (the “Act”).
The CFD No. 2025-S is currently comprised of two tracts for residential development. The first development, known as Rustic Meadows, includes Tract Map No. 38199 consisting of one undeveloped parcel of approximately 10 gross acres to include 153 single family homes at build-out. The second development, known as Kensington Apartments, includes Assessor’s Parcel Number 906-780-004 consisting of one undeveloped parcel of approximately 5 gross acres to include a 126 affordable housing apartment units. The Rustic Meadows project is generally located on the southwest corner of the intersection of Whitewood Road and Clinton Keith Road, east of Interstate 215. The Kensington Apartments project is generally located on the eastern corner of the intersection of Magnolia Street and Washington Avenue, west of Interstate
15. For a map showing the boundaries of CFD No. 2025-S please see Appendix B.
Purpose of Public Hearing Report
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains the following:
1. A general description of the services proposed to be financed from the levy of the special tax; and
2. A general cost estimate setting forth costs of providing such services; and
3. Further information regarding the implementation of the rate and method of apportionment of the special tax proposed to be levied within the District.
The Rate and Method of Apportionment of the Special Tax which was included in the Resolution of Intention and approved by the City Council.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.
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2 Description of Services Page | 2
City of Murrieta
CFD No. 2025-S (Safety Services)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare the Public Hearing Report, does hereby submit the following data:
Description of the Services
The services which may be funded with proceeds of the special tax of CFD No. 2025-S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-S.
These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.
Administrative Expenses
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2025-S and the future Annexation Area of CFD No. 2025-S or for the benefit of the propert ies within the boundaries of CFD No. 2025-S and the future Annexation Area of CFD No. 2025-S, as the boundary is expan ded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created. 816
3 Cost Estimate Page | 3
City of Murrieta
CFD No. 2025-S (Safety Services)
Public Hearing Report
The estimate is based on the cost of actual services provided by the City of Murrieta. The estimated cost for Fiscal Year 2025-26 of providing such services, based upon current dollars, which is subject to escalation, is as follows:
The estimated annual cost of providing police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services being funded by the Special tax for Community Facilities District No. 2025-S (Safety Services) as, as outlined above, will be as follows:
1. $580.00 per residential unit for single family residential property
2. $468.00 per residential unit for multi-family residential property
3. $150.00 per residential unit for affordable housing property The estimated annual cost of providing safety services at build-out for the subject properties are detailed below:
Table 3-1
Cost Estimate
Development Tract/APN
Land Use
Category
No. of
Taxable Units
Estimated Cost
At Build Out
Rustic Meadows TR 38199 Single Family Property 153 $88,740.00 Kensington Apartments 906-780-004 Affordable Housing Property 126 $18,900.00 Total $107,640.00
Escalation of Maximum Special Taxes
On each July 1, commencing on July 1, 2026 the Maximum Special Tax shall increase by four percent (4.0%). 817
4 Proposed Development Page | 4
City of Murrieta
CFD No. 2025-S (Safety Services)
Public Hearing Report
The CFD No. 2025-S includes the first development, known as Rustic Meadows, consists of one undeveloped parcel of approximately 10 gross acres to include 153 single family homes at build-out. The second development, known as Kensington Apartments, consists of one undeveloped parcel of approximately 5 gross acres to include a 126 affordable housing apartment units. The Rustic Meadow s project is generally located on the sout hwest corner of the intersection of Whitewood Road and Clinton Keith Road, east of Interstate 215. The Kensington Apartments project is generally located on the eastern corner of the intersection of Magnolia Street and Washington Avenue, west of Interstate 15. As of Fiscal Year 2025-26 the proposed CFD No. 2025-S includes the following Assessor's Parcel Numbers:
900-030-045
906-780-004
The boundaries of CFD No. 2025-S are those properties and parcels where services are authorized to be provided and upon which special taxes may be levied in order to pay for the costs and expenses of said services. A map showing the boundaries of CFD No. 2025-S is included in Appendix B.
Additional properties that are within the boundaries of th e annexation map may annex to CFD No. 2025-S subsequent to formation of CFD No. 2025-S. The owner of the property to be annexed shall submit a written consent for said annexation to CFD No. 2025-S and the Council, acting ex-officio as the legislative body of CFD No. 2025-S, shall call a special election as to the imposition of the special tax on said property as required by law. A general description of the boundaries of the territory within which any property may annex to CFD No. 2025-S and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta, County of Riverside, State of California,” is attached as Appendix B.
818
5 Rate and Method of Apportionment Page | 5
City of Murrieta
CFD No. 2025-S (Safety Services)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2025-S to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations, and provided further that CFD No. 2025- S may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.
All of the property located within CFD No. 2025-S, unless exem pted by law or by the Rate and Method proposed for CFD No. 2025-S, shall be taxed for the purpose of providing necessary services to serve the District. On each July 1, commencing on July 1, 2026 the Maximum Special Tax shall increase by four percent (4.0%). The Boundary Map for CFD No. 2025-S is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.
For particulars as to the Rate and Method for CFD No. 2025-S, see the attached and incorporated in Appendix A.
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6 Certifications Page | 6
City of Murrieta
CFD No. 2025-S (Safety Services)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Murrieta as a result of development occurring within the CFD No. 2025- S and benefits the lands within said CFD No. 2025-S. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Date: July 15, 2025 SPICER CONSULTING GROUP, LLC
__________________________
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF MURRIETA
RIVERSIDE COUNTY
STATE OF CALIFORNIA
820
Appendix A:
Rate and Method of Apportionment
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City of Murrieta Page 1
Community Facilities District No. 2025-S (Safety Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025-S (Safety Services) (the “CFD No. 2025-S” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2025, in an amount determined by the City Council of the City of Murrieta, acting in its capacity as the legislative body of CFD No. 2025-S, by applying the rate and meth od of apportionment set forth below. All of the real property in CFD No. 2025-S, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.
A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand-alone Residential Unit.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-S including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Ta x collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025-S, or any designee thereof associated with fulfilling the CFD No. 2025-S re porting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-S for any ot her administrative purposes of CFD No. 2025-S, including attorney’s fees and other costs relate d to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Murrieta, or his or her designee.
“Affordable Housing” means housing as defined in State De nsity Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.
“Affordable Housing Property” means any Affordable Housing reside ntial property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
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City of Murrieta Page 2
Community Facilities District No. 2025-S (Safety Services) “CFD” or “CFD No. 2025-S” means the City of Murrieta Community Facilities District No. 2025-S (Safety Services).
“City” means the City of Murrieta.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following
June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as ap plicable, levied within the CFD for any Fiscal Year.
“Multi-Family Property” means all Assessor's Parcels of Deve loped Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels.
“Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.
“Residential Property” means all Assessor’s Parcels of Taxa ble Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator.
An Accessory Dwelling Unit that shares
an Assessor’s Parcel with a Single Family Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.
“Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, thos e services authorized to be fund ed by CFD No. 2025-S as set forth in Appendix B.
“Single Family Property” means any residential property other th an a Multi-Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
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City of Murrieta Page 3
Community Facilities District No. 2025-S (Safety Services) “Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025-S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppressi on services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2025-S, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.
B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES
As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residential Pr operty, including Single Family Property, Multi- Family Property, or an Affordable Housing Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicab le Maximum Special Tax to satisfy the Special Tax Requirement.
No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
The Maximum Special Tax for Fiscal Year 2025- 2026 for a Single Family Property, Multi-Family Property, and Affordable Housing Property are shown below in Table 1.
TABLE 1
MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $580
Multi-Family Property RU $468
Affordable Housing Property RU $150
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property, Multi-Family Property, and Affordable Housing Property shall increase by four percent (4.0%).
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City of Murrieta Page 4
Community Facilities District No. 2025-S (Safety Services) C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes sha ll be levied as long as the Services are being provided within the boundaries of CFD No. 2025-S.
D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025-S, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which ar e owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public en tity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property, Multi-Family Property, or an Affordable Housing Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.
E. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected an d shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.
However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien sh all be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code.
G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. 825
City of Murrieta Page 5
Community Facilities District No. 2025-S (Safety Services)
APPENDIX A
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(SAFETY SERVICES)
SUMMARY
Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Specia l Tax for the Community Facilities District No. 2025-S (Safety Services) will be as follows for the Fiscal Year 2025-2026:
$580 per residential unit for Single Family Property
$468 per residential unit for Multi-Family Property
$150 per residential unit for Affordable Housing Property
Annual Escalation - On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property, Multi-Family Property, and Affordable Housing Property shall increase by four percent (4.0%).
Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Original 2025-26 TR 38199 Rustic
Meadows 153 Single Family
Property $580 Century Communities
Original 2025-26 906-780-004 Kensington
Apartments 126 Affordable
Housing Property $150 Murrieta Pacific
Associates
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City of Murrieta Page 6
Community Facilities District No. 2025-S (Safety Services)
APPENDIX B
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(SAFETY SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded wi th proceeds of the special tax of CFD No. 2025-S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.
These services include police protection services (inc luding but not limited to criminal justice services), fire protection and suppression services, and paramedic services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services a s d e t e r m i n e d b y t h e Administrator.
The above services shall be limited to those provid ed within the boundaries of CFD No. 2025-S for the benefit of the properties within the boundaries of CFD No. 2025-S and said services may be financed by proceeds of the special tax of CFD No. 2025-S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.
827
Appendix B:
Proposed Boundary Map
828
829
830
Appendix C:
Resolution of Intention
831
RESOLUTION NO. 25-4838
A RESOLUTION OF CITY COUNCIL OF THE CITY OF
MURRIETA DECLARING ITS INTENTION TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY
SERVICES) OF THE CITY OF MURRIETA, TO AUTHORIZE
THE LEVY OF A SPECIAL TAX ON PROPERTY WITHIN THE
DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC
SAFETY SERVICES
WHEREAS, the City of Murrieta (the “City”) has received petitions (the “Petitions”) signed by the owners of more than ten percent of the land within the boundaries of which is proposed for inclusion in a proposed community facilities district which meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California (the “Government Code”); and WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code to establish a community facilities district consisting of the territory describ ed in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta” (“Community Facilities District No. 2025-S” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to (1) finance police protection services (including but not limited to criminal justice se rvices), fire protection and suppression services, and paramedic services described in Attachment “ B” hereto and incorporated herein by this reference (the “Services”), and (2) finance the incidental expenses to be incurred in connection with forming and a dministering the District and financing the Services (the “Services Incidental Expenses”) . The Administrative Services definition described in the Rate and Method of Apportionment is used interchangeably with Services Incidental Expenses; and
WHEREAS, pursuant to Sections 53329.6 and 53339 et seq. of the Act and in accordance with the request of the owner s submitting the petition s, the City Council proposes to designate the property described in Attachment “ A” hereto and incorporated herein by this references as territory proposed for annexation to Community Facilities District No. 2025-S in the future (the “Potential Annexation Area”), with the condition that a parcel or parcels within such territory may be annexed and subjected to the special tax of Community Facilities District No. 2025-S only with the unanimous consent and approval of the owner or owners of the parcel or parcels (the “Unanimous Consent and Approval”) at the time of annexation or in compliance with other procedures established by the Act; and WHEREAS, the City Council further intends to approve an estimate of the costs of the Services and the Services Incidental Expenses for Community Facilities District No. 2025-S; and WHEREAS, it is the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the formation of Community Facilities District No. 2025-S and the levy of a special tax to pay for such Services and Services Incidental Expenses; and WHEREAS, it is the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the annexation of additional property within the Potential Annexation Area to the District and the levy of a special tax within the property so annexed to pay for the Services and the Services Incidental Expenses, provided that the special tax levies are approved by the Unanimous Consent and Approval of the owner or owners of the parcel or parcels in accordance wit h 832
2 Sections 53329.6 and 53339 et seq. of the Act, and approval of the City Council acting as the legislative body of the District at the time of annexation;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the legal boundaries of Community Facilities District No. 2025-S shall be those described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for proposed Community Facilities District No. 2025-S, include the entirety of any parcel subject to taxation by the District. The City Council further proposes t o designate the Potential Annexation Area described in Attachment “A” hereto as property proposed for annexation into the District in the future, by submittal of Unanimous Consent and Approval of the owner or owners of such parcel or parcels, as approved by the City Council acting as the legislative body of the District at the time that such parcel or parcels are annexed to the District.
The proposed boundaries of the District and the Potential Annexation Area are depicted on the map of proposed Community F acilities District No. 2025-S which is included in Attachment “A” hereto.
The City Clerk is hereby directed to sign the original map of the proposed boundaries and record it with all proper endorsements thereon with the County Recorder of the County of Ri verside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta.” Section 4. The Services proposed to be provided for the benefit of Community Facilities District No. 2025-S are public services as defined in the Act , and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the District , including the Potential Annexation Area, at the present time and do not supplant services already available wit hin the territory of the District at the present time. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the proposed District, including the Potential Annexation Area, to understand what the funds of the District may be used to finance. The Services Incidental Expenses expected to be incurred include the costs of planning the Services, the costs of forming the District, the cost of levying and collecting a specia l tax within the proposed District and the cost of administration.
Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act a separate special tax , secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for the Services and the Services Incidental Expenses. Notwithstanding the foregoing, the District shall not record a special tax lien on property within the Potential Annexation Area until the owner or owners of the parcel or parcels thereof have given their unanimous approval of the parcel’s or parcels’ annexation to the District . The rate and method of apportionment and manner of collection of the special tax es are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within the District to estimate the maximum amount that may be levied against each parcel.
833
3 The maximum special tax for Services shall increase by four percent (4%) per year to the extent permitted in the Rate and Method . The special tax for Services may be levied for such period as the Services are needed, as further described in Attachment “C” hereto.
The special tax es are based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-S will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax es set forth in Attachment “C” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon the value or ownership of real property.
Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-S, the proposed rate and method of apportionment of the special taxes to finance the Services and the Services Expenses shall be held 6:00 p.m., or as soon thereafter as practicable, on July 15, 2025 , at the City of Murrieta Council Chamber, 1 Town Square, Murrieta, California. Should the City Council determine to form the District, a special election will be held to authorize the levy of the specia l taxes in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District (excluding the Potential Annexation Area) at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.
Section 7. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.
Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2025-S and the Potential Annexation Area, may appear and be heard.
Section 9. Each City officer who is or will be responsible for administering the proposed Community Facilities District No. 2025-S, if it is established, is hereby directed to study the proposed District and, at or before the time of the above -mentioned Hearing, file a report with the City Council containing a brief description of services by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-S and an estimate of the cost of providing those services, and an estimate of the fair and reasonable cost of Services Incidental Expenses to be incurred.
Section 10. The District may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-S. The District may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.
Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-S. The City Clerk is further 834
4 directed to mail a copy of the Notice to each landowner within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the propos ed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
Section 12. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June, 2025.
CITY COUNCIL OF THE CITY OF MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
835
5 STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 3rd day of June, 2025, by the following votes:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
836
A-1
ATTACHMENT A
Proposed Boundaries
Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta,
Riverside County, California
837
A-2
838
B-1
ATTACHMENT B
Types of Services
to be Financed by
Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta
The services which may be funded with proceeds of the special tax of CFD No. 2025 -S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-S.
These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.
In addition to payment of the c ost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determ ined by the Administrator.
The above services shall be limited to those provided within the boundaries of CFD No. 2025 -S and the Potential Annexation Area of CFD No. 2025 -S for the benefit of the properties within the boundaries of CFD No. 2025 -S and the Potential Annexation Area of CFD No. 2025 -S, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2025 -S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.
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ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025-S (Safety Services) (the “CFD No. 2025-S” or “CFD”; defined below), in each Fiscal Year, (defi ned below), commencing in the Fiscal Year beginning July 1, 2025, in an amount determined by the City Council of the City of Murrieta, acting in its capacity as the legislative body of CFD No. 2025 -S, by applying the rate and method of apportionment set fo rth below.
All of the real property in CFD No. 2025 -S, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.
A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand-alone Residential Unit.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-S including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025 -S, or any des ignee thereof associated with fulfilling the CFD No. 2025 -S reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025 -S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025 -S for any other administrative purposes of CFD No. 2025-S, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Murrieta, or his or her designee. “Affordable Housing” means housing as defined in State Density Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.
“Affordable Housing Property” means any Affordable Housing resi dential property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
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“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
“CFD” or “CFD No. 2025-S” means the City of Murrieta Community Facilities District No. 2025 -S (Safety Services).
“City” means the City of Murrieta.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Multi-Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied. “Proportionately” means for T axable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.
“Residential Propert y” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Property shall not be considered a Res idential Unit for purposes of this Rate and Method of Apportionment.
“Services” means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025 -S as set fo rth in Appendix B.
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“Single Family Property” means any residential property other than a Multi -Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied. “Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certai n costs as required to meet the public safety needs of CFD No. 2025 -S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppress ion services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2025 -S, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.
B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residential Property, including Single Family Property, Multi-Family Property, or an Affordable Housing Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax sha ll be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.
No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has n ot been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
The Maximum Special Tax for Fiscal Year 2025 -2026 for a Single Family Property, Multi -Family Property, and Affordable Housing Property are shown below in Table 1.
TABLE 1
MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $580
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C-4
Multi-Family Property RU $468
Affordable Housing Property RU $150
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property, Multi -Family Property, and Affordable Housing Property shall increase by four percent (4.0%).
C. TERM OF SPECIAL TAX
For each Fiscal Year, th e Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2025-S.
D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025 -S, any Assessor’s Parcel in any of the following categor ies; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the pu rposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Adminis trator; or (v) any Assessor’s Parcel which is not a Single Family Property, Multi -Family Property, or an Affordable Housing Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.
E. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not late r than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to th e Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.
However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
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The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax cea ses to be levied in the manner provided by Section 53330.5 of the Government Code.
G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. 844
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APPENDIX A
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(SAFETY SERVICES)
SUMMARY
Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-S (Safety Services) will be as follows for the Fiscal Year 2025-2026:
$580 per residential unit for Single Family Property
$468 per residential unit for Multi-Family Property
$150 per residential unit for Affordable Housing Property Annual Escalation - On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property of Single Family Property, Multi -Family Property, and Affordable Housing Property shall increase by four percent (4.0%).
Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Original 2025-26 TR
38199 Rustic Meadows 153 Single Family
Property $580 Century
Communities
Original 2025-26 906-
780-004
Kensington
Apartments 126
Affordable
Housing
Property
$150 Murrieta Pacific
Associates
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APPENDIX B
CITY OF MURRIETA
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(SAFETY SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025 -S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.
These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in t he Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.
The above services shall be limited to those provided within the boundaries of CFD No. 2025 -S for the benefit of the properties within the boundaries of CFD No. 2025 -S and said services may be financed by proceeds of the special tax of CFD No. 2025 -S only to the extent that they are in addition to those provided in the territory of CFD No. 2025-S before CFD No. 2025-S was created.
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4936-2031-1119v3/022972-0046
RESOLUTION NO. 25-4874
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA, ESTABLISHING
COMMUNITY FACILITIES DISTRICT NO. 2025-S
(SAFETY SERVICES ) OF THE CITY OF MURRIETA,
AUTHORIZING THE LEVY OF A SPECIAL TAX
THEREIN, CALLING AN ELECTION AND APPROVING
AND AUTHORIZING CERTAIN ACTIONS RELATED
THERETO
WHEREAS, the City Council (the “City Council”) of the City of Murrieta (the “City”) has heretofore adopted Resolution No. 25-4838 stating its intention to form Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (“Community Facilities District No. 2025-S (Safety Services)” or the “District”) and a Potential Annexation Area therein (the “Potential Annexation Area”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, a copy of Resolution No. 25-4838 setting forth a description of the proposed boundaries of Community Facilities District No. 2025-S (Safety Services) , the proposed boundaries of the Potential Annexation Area, the services and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2025-S (Safety Services) , to designate the Potential Annexation Area proposed for annexation to the District in t he future and to levy a special tax therein to finance the services and incidental expenses described in Resolution No. 25-4838; and
WHEREAS, on July 15, 2025 , this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2025-S (Safety Services), the designation of the Potential Annexation Area , and the levy of the special tax therein; and
WHEREAS, at the July 15, 2025, public hearing there was filed with this City Council a report containing a description of the services necessary to meet the needs of the District and an estimate of the cost of such services as required by Section 53321.5 of the Ac t (the “Engineer’s Report”); and
WHEREAS, at the July 15, 2025 , public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025-S (Safety Services), the designation of the Potential Annexation Area, and the levy of the special tax were heard and full and fair hearings were held; and
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WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of services (the “ Services”) and the incidental expenses (the “ Services Incidental Expenses ”) set forth in Attachment “A” hereto , which are described in more detail in the Engineer’s Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on t he matters before it and the proposed special tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District, the designation of the Potential Annexation Area and the levy of the special tax; and WHEREAS, this City Council has determined , based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2025-S (Safety Services) for each of the 90 days prior to July 15, 2025, and that the qualified electors i n Community Facilities District No. 2025-S (Safety Services) are the landowners within the District; and
WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2025-S (Safety Services) and to call an election therein to authorize (i) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment “ C” to Resolution No.
No. 25-4838, and (ii) the establishment of an appropriations limit for Community Facilities District No. 2025-S (Safety Services);
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. A comm unity facilities district to be designated “Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
Section 3. The boundaries of Community Facilities Distr ict No. 2025-S (Safety Services) are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta, County of Riverside, State of California,” which map is on file in th e office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor -County Clerk - Recorder’s office of the County of Rive rside in Book No. 96 Page No. 51, on June 10, 2025 as Instrument No. 2025-0175991.
In addition, the boundaries of the Potential Annexation Area are established and designated for future annexation to the District pursuant to Sections 53339.2 and 53339.3 of the 849
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Act in accordance with Resolution No. 25-4838, as shown on the map designated “Boundaries— Potential Annexation Area Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta, County of Riverside, State of California,” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 96 Page No. 52, on June 10, 2025, as Instrument No. 2025-0175992.
Section 4. The types of Services and Services Incidental Expenses authorized to be provided for Community Facilities District No. 2025-S (Safety Services) are those set forth in Attachment “A” attached hereto . The estimated cost of the Services and Services Incidental Expenses to be financed is set forth in the Engineer’s Report.
Section 5. The City Council finds and determines that the proposed Services are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Services to be financed benefit residents of the City and the future residents of the District.
Section 6. Except where funds are otherwise available, it is the i ntention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a special tax at the rates set forth in Attachment “ C” to Resolution No. 25 -4838 on all non -exempt property within the Dis trict sufficient to pay for the Services and the Services Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Services Incidental Expenses in connection with the creation of the District, the levying and collecti ng of the special tax, and the annual administration of the District. The rate and method of apportionment of the special tax is described in detail in Attachment “C” to Resolution No. 25 - 4838 and incorporated herein by this reference, and the City Council hereby finds that the rate and method of apportionment of the special tax described in detail in Attachment “C” to Resolution No. 25-4838 contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be l evied against each parcel. As described in greater detail in the Engineer’s Report , which is incorporated by reference herein, the special tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2025-S (Safety Services) will place on the Services and on the benefit that each parcel will derive from the right to access the Services and, accordingly, is hereby determined to be reasonable. The special tax shall be levied on each assessor’s parcel so long as the Services are being provided within CFD No. 2025-S (Safety Services). The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property or the assessed value of real property.
Section 7. The City Manager of the City of Murrieta, 1 Town Square, Murrieta, California 92562, telephone number ( 951) 461-6010, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.
Section 8. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall 850
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attach to all non -exempt real property in the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satis fied and the lien canceled in accordance with law or until collection of the special tax by the District ceases.
Section 9. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2025-S (Safety Services), if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2025-S (Safety Services) and will be benefited by the Services proposed to be provided within Community Facilities District No. 2025-S (Safety Services).
Section 10. It is hereby further determined that there is no ad valorem property tax currently being levied on property wi thin proposed Community Facilities District No. 2025-S (Safety Services) for the exclusive purpose of paying for the same services to the territory of Community Facilities District No. 2025-S (Safety Services) as are proposed to be provided by the Services to be financed by Community Facilities District No. 2025-S (Safety Services).
Section 11. Written protests against the establishment of the District have not been filed by one-half or more of the registered voters within the boundaries of the District or by the property owners of one -half (1/2) or more of the area of land within the District. The City Council hereby finds that the proposed special tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.
Written protests against the establishment of the Potential Annexation Area have not been filed by one -half or more of the registered voters within the boundaries of the Potential Annexation Area or by the property owners of one -half (1/2) or more of the area of land within the Potential Annexation Area. The City Council hereby finds that the proposed special tax has not been precluded by a majority protest pursuant to Section 53339.6 of the Act.
Section 12. An election is hereby called for Community Facilities District No. 2025-S (Safety Services) on the propositions of levying the special tax on the property within Community Facilities District No. 2025-S (Safety Services) and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act. The language of the proposit ions to be placed on the ballot is attached hereto as Attachment “B.” Section 13. The date of the election for Community Facilities District No. 2025-S (Safety Services) on the propositions of authorizing the levy of the special tax and establishing an appropriations limit for the District shall be July 15, 2025, or such later date as is consented to by the City Clerk of the City of Murrieta; provided that, if the election is to take place sooner than 90 days after July 15, 2025 , then the unanimous written consent of each qualified elector within the District to such election date must be obtained . The polls shall be open for said election immediately following the public hearing . The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Murrieta insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the 851
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City Clerk shall close the election by, 11 :00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person , or by mail with return postage prepaid , to the qualified electors within Community Facilities District No. 2025-S (Safety Services) . The City Clerk has secured a certificate of the Certificate of Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding July 15, 2025, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or port ion thereof that such landowner owns within Community Facilities District No. 2025-S (Safety Services), as provided in Section 53326 of the Act . The landowners within the District have executed and delivered waivers of certain election law requirements and consenting to the holding of the election on July 15, 2025, which waivers are on file with the City Clerk.
Section 14. The preparation of the Engineer’s R eport is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2025-S (Safety Services). The Engineer’s Report is orde red to be kept on file with the transcript of these proceedings and open for public inspection.
Section 15. The District may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorize d purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-S. The District may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay all or a portion of t he funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest. 852
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Section 16. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution No. 25-4874 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 15th day of July, 2025, by the following votes:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
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ATTACHMENT “A”
TYPES OF SERVICES
TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
The services which may be funded with proceeds of the special tax of CFD No. 2025 -S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety. Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2025-S.
These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.
In addition to payment of the c ost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.
The above services shall be limited to those provided within the boundaries of CFD No. 2025 -S and the Potential Annexation Area of CFD No. 2025-S for the benefit of the properties within the boundaries of CFD No. 2025 -S and the Potential Annexation Area of CFD No. 2025 -S, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2025 -S only to the extent that they are in addition to those provided in the territory of CFD No. 2025 -S before CFD No. 2025 -S was created.
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ATTACHMENT “B”
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
SPECIAL TAX ELECTION
July 15, 2025
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4838 of the City Council of the City of Murrieta be
levied to pay for the Services, Services Incidental
Expenses and other purposes described in Resolution No. 25-4838 of the City Council of the City of Murrieta?
YES______
NO_______
PROPOSITION B : For each year commencing with
Fiscal Year 2025-2026, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities District No. 2025-S (Safety Services) be an amount equal to $1,000,000,000?
YES______
NO_______
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RESOLUTION NO. 25-4875
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA , ACTING IN ITS CAPACITY
AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA CERTIFYING ELECTION
RESULTS
WHEREAS, the City Council (the “City Council”) of the City of Murrieta called and duly held an election on July 15, 2025 within the boundaries of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (“Community Facilities District No. 2025- S” or the “Distr ict”) pursuant to Resolution No . 25-4874 for the purpose of presenting to the qualified electors within the District Propositions A and B attached hereto as Exhibit A; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Exhibit B;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. Propositions A and B presented to the qualified electors of the District on July 15, 2025 were approved by two -thirds or more of the votes cast at said election and Propositions A and B each has carried. The City Council, acting as the legislative body of t he District, is hereby authorized to levy on the land within the District the specia l tax described in Proposition A for the purposes described therein.
Section 3. The City Clerk is hereby directed to record in the Assessor-County Clerk- Recorder’s office of the Count y of Riverside within fifteen days of the date hereof a notice of special tax lien with respect to the District which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.
Section 4. This Resolution shall be effective upon its adoption. 857
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PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution No. 25-4875 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 15th day of July, 2025, by the following votes:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
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EXHIBIT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA
SPECIAL TAX ELECTION
July 15, 2025
PROPOSITION A: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4838 of the City Council of the City of Murrieta be
levied to pay for the Services, Services Incidental
Expenses and other purposes described in Resolution No. 25-4838 of the City Council of the City of Murrieta?
YES______
NO_______
PROPOSITION B: For each year commencing with
Fiscal Year 2025 -2026, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Co mmunity Facilities District No. 2025-S (Safety Services) be an amount equal to $1,000,000,000?
YES______
NO_______
860
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EXHIBIT B
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Cristal McDonald, City Clerk of the C ity of Murrieta, do hereby certify that I have examined the returns of the Special Tax Election for Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta. The election was held in the City of Murrieta Council Chambers, 1 Town S quare, Murrieta, California, on July 15, 2025 . I caused to be delivered ballots to each qualified elector. ______ (_____) ballots were returned.
I further certify that the results of said election and the number of votes cast for and against Propositions A and B are as follows:
PROPOSITION A PROPOSITION B
YES: YES:
NO: NO:
TOTAL: TOTAL:
Dated this 15th day of July, 2025.
CRISTAL MCDONALD, CITY CLERK
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ORDINANCE NO. 621-25
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA ACTING IN ITS CAPACITY
AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA AUTHORIZING THE LEVY
OF SPECIAL TAXES
Summary: The ordinance follows the approval by more than two -thirds of voters in a special election held July 15, 2025, which authorized the levy of special taxes, issuance of bonds up to $5,000,000, and the establishment of an appropriations limit. The special tax will fund public infrastructure and repay bonded indebtedness, in accordance with the Rate and Method of Apportionment adopted by Resolution No. 25 -4839. The tax will be co llected annually on taxable properties within the district until all financial obligations are satisfied.
WHEREAS, on June 3 , 2025 , the City Council (the “ City Council ”) of the City of Murrieta (the “ City”) adopted Resolution No. 25-4838 declaring its int ention to form Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Gov ernment Code of the State of California (the “Act”); and
WHEREAS, on July 15, 2025 , after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain safety services described in Resolution No. 25-4838; and
WHEREAS, at the July 15, 2025 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the safety services described in Resolution No. 25-4838 were heard and a full and fair hearing was held; and
WHEREAS, on July 15, 2025, the Board adopted Resolution No. ______ which formed the District and called a special election within the District on July 15, 2025 on two propositions relating to the levy of a special tax within the District and the establishment of an appropriations limit within the District; and
WHEREAS, on July 15, 2025 , a special election was held within the District at which the qualified electors approved by a vote of two-thirds or more Propositions A and B authorizing the levy of a special tax within the District for the purposes described in Resolution No. _____ and establishing an appropriations limit for the District; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES ) OF THE CITY OF MURRIETA ORDAINS AS FOLLOWS:
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Section 1. The above recitals are all true and correct.
Section 2. By the passage of this Ordinance, the Board authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment “C” to Resolution No. 25-4838, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter so long as the services authorized to be financed by the District, are provided through such financing within the District.
Section 3. Each of the Mayor, the City Manager, the Assistant City Manager , the Director of Finance, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed t o provide all necessary information to the Treasurer -Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year.
Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section D of the Rate and Method. No o ther properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 25- 4838, or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.
Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 25-4838.
Section 6. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.
Section 7. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Murrieta.
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Section 8. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.
Section 9. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of Riverside , and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the pur pose of this Ordinance.
Section 10. A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.
Section 11. This Ordinance shall take effect thirty days after its final passage.
PASSED AND ADOPTED by the City Council at a regular meeting held on the _____ day of _____, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Ordinance No. 621 -25 was introduced by the City Council of the City of Murrieta, California, at its Regular meeting of July 15, 2025 and adopted at its Regular meeting of _____, 2025 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
I, Cristal McDonald, City Clerk of the City of Murrieta, California further certify that Ordinance No. 621-25 was duly published according to law and the order of the City Council of said City and the same was so published in Press Enterprise, a newspaper of general circulation on the following date(s):
Adopted Ordinance: , 2025.
In witness whereof, I have hereunto subscribed my name this __ day of ______________, 2025.
Cristal McDonald, City Clerk
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City Council Meeting Agenda
Report
7/15/2025
Agenda Item No. 21.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:
Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta
RECOMMENDATION
Hold a public hearing regarding the formation of Community Facilities District (CFD) No. 2025-4 (Rustic Meadows) of the City of Murrieta;
Adopt Resolution No. 25-4876 entitled: A Resolution of the City Council of the City of Murrieta, California, Establishing Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta, Authorizing the Levy of a Special Tax Therein, Calling an Election and Approving and Authorizing Certain Actions Related Thereto;
Adopt Resolution No. 25-4877 entitled: A Resolution of the City Council of the City of Murrieta, California, Acting as the Legislative Body of Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta, Determining the Necessity to Incur Bonded Indebtedness in an Amount Not to Exceed $5,000,000, within the Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta and Calling an Election Therein;
Direct the City Clerk to hold an election within CFD No. 2025-4; Adopt Resolution No. 25-4878 entitled: A Resolution of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta Certifying Election Results; and
Introduce Ordinance No. 622-25 entitled: An Ordinance of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta Authorizing the Levy of Special Taxes.
PRIOR ACTION/VOTE
On April 5, 2016, the City Council adopted Resolution No. 16-3536 amending the Land Secured Financing Policy.
On October 3, 2023, the City Council considered an Amendment to the Community Facilities District Goals CITY OF MURRIETA Printed on 7/10/2025Page 1 of 5
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Agenda Item No. 21.
and Policies and directed staff to present the recommendations in a workshop (Vote: 3-2).
On December 5, 2023, the City Council held a workshop on and adopted the proposed Amendment to the Community Facilities District Goals and Policies
On May 6, 2025, the City formed Community Facilities District No. 2025-1 (Safety Services), Community Facilities District No. 2025-2 (Maintenance Services) and Community Facilities District No. 2025-3 (Discovery Village) (Vote: 5-0).
On June 3, 2025, the City Council adopted a Resolution of Intention to establish Community Facilities District No. 2025-4 (Rustic Meadows) and set a public hearing for the formation of Community Facilities District No. 2025-4 (Rustic Meadows) for July 15, 2025 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
Community Facilities Districts
Community Facility Districts (CFDs) are formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Mello-Roos Act”) and are a widely used financing mechanism, frequently used to fund infrastructure associated with new significant (large) development projects, such as water and sewer facilities, storm drain facilities, roads, and parks and to finance the provision of certain municipal services.
A simplified example of CFD implementation is as follows:
· A developer submits a petition to form the CFD to the City or Special District (water districts frequently form CFDs) to start formation proceedings.
· In the City’s case, staff presents the petition to the City Council for approval. · The District is formed by a vote of the property owners. · Once approved, the city approves the issuance of bonds, which are sold to investors. · Proceeds from the sale of the bonds are used to build the infrastructure associated with the project. · The bonds are paid off over time (typically 30 years) by the buyers of homes within the project as a part of their property tax bill.
On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to state law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed;
· Adding an escalator of up to two percent (2%) per year for facilities; · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing CITY OF MURRIETA Printed on 7/10/2025Page 2 of 5
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Agenda Item No. 21.
services;
· Allowing Development Impact Fees (DIF) to be financed; and · Increasing the maximum cap on the assessed value of a property from 1.8% to 2.0%.
Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. The services that can be funded include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls).
· Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities · Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems. · Maintenance and operation of any real property or other tangible property with an estimated useful life of five (5) or more years that is owned by the local agency or by another local agency (by agreement).
The Rustic Meadows Project and Community Facilities District No. 2025-4 The owner of the property within the proposed Rustic Meadows project within the City is Whitewood-Murrieta, L.P. (the “Property Owner”), and the Property Owner submitted a petition requesting that the City form Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (“CFD No. 2025-4”). The property to be included in the proposed CFD No. 2025-4 (the “Property”)is located at the southeast corner of the intersection of Clinton Keith Road and Whitewood Road. The Rustic Meadows project is proposed to include approximately 153 single-family homes at full buildout and will be developed by Century Communities of California, LLC. (the “Developer”).
The Property Owner has requested that the City form CFD No. 2025-4 to encompass the Property in accordance with the Mello-Roos Act in order to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $5 million. The proceeds of bonds to be issued by CFD No. 2025-4 are expected to be used to finance public facilities to be owned and operated by the City and by Murrieta Valley Unified School District. Additionally, the bond proceeds will be used to finance the payment of DIF owed by the Property Owner to the City.
The Property Owner has requested that the boundaries of CFD No. 2025-4 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-4 adopted by the City Council on June 3, 2025 (the “CFDNo. 2025-4 Resolution of Intention”),and that special taxes be levied within the boundaries of CFD No. 2025-4 in accordance with the Rate and Method of Apportionment for CFD No. 2025-4 (the “CFD No. 2025-4 RMA”)described in Attachment C to the Resolution of Intention. The proposed rates of the special tax range from $1,659 per unit for single family homes less than 1,500 square feet to $2,108 per unit for single family homes greater than 1,700 square feet and also include tax rates of $41,763 per acre of multi-family property and non-residential property. The special tax rates within CFD No. 2025-4 will increase two percent CITY OF MURRIETA Printed on 7/10/2025Page 3 of 5
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Agenda Item No. 21.
property and non-residential property. The special tax rates within CFD No. 2025-4 will increase two percent (2%) annually on July 1, of each year, commencing July 1, 2026.
The CFD No. 2025-4 Resolution of Intention was the first step in the process of forming CFD No. 2025-4 and, together with the Resolution of Intention to Incur Bond Indebtedness by CFD No. 2025-4 adopted by the City Council on June 3, 2025, declared the City’sintention to establish CFD No. 2025-4, its intention to incur bonded indebtedness by CFD No. 2025-4, and called for a public hearing to take place on July 15, 2025.
Notice of the public hearing was published in The Press Enterprise and mailed to the Property Owner.
In connection with the public hearing, Spicer Consulting Group has prepared a Public Hearing Report which describes and analyzes the facilities to be financed by CFD No. 2025-4 and the estimated costs of such facilities. Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation for CFD No. 2025-4 and the Resolution Determining Necessity to Incur Bonded Indebtedness by CFD No. 2025-4 which, together, approve the formation of the CFD No. 2025-4, the levy of the special taxes in CFD No. 2025-4 in accordance with the CFD No. 2025-4 RMA and determines the necessity for the Facilities CFD to issue bonds in an amount not to exceed $5,000,000. Such resolutions call for an election to submit to the qualified voters of the CFD No. 2025-4 ballot measures on the approval of the special taxes, the issuance of bonds, and an appropriations limit for the CFD No. 2025-4.
The CFD No. 2025-4 Resolution of Formation also approves the execution and delivery of an Acquisition, Construction and Funding Agreement with the Developer (the “Acquisition Agreement”). The Acquisition Agreement sets forth the terms pursuant to which CFD No. 2025-4 will acquire improvements constructed by the Developer from bond proceeds from CFD No. 2025-4 and how the Developer will be reimbursed for development impact fees from bond proceeds. In order to be eligible for acquisition, such facilities must be constructed in accordance with the terms and conditions of the Acquisition, Construction and Funding Agreement. The City and CFD No. 2025-4 are only required to pay for the acquisition of such facilities from the proceeds of bonds or special taxes levied in CFD No. 2025-4 and not from any other source.
The CFD No. 2025-4 Resolution of Formation also approves the execution and delivery of a Joint Community Facilities and School Facilities Mitigation Agreement among the City, the Murrieta Valley Unified School District (the “JCFA”). The JCFA sets forth the terms pursuant to which the Developer will be reimbursed from bond proceeds from CFD No. 2025-4 for certain school facility fees the Developer is required to pay to the Murrieta Valley Unified School District. In order to be eligible for acquisition, such facilities must be constructed in accordance with the terms and conditions of the Acquisition, Construction and Funding Agreement. The City and CFD No. 2025-4 are only required to pay for the acquisition of such facilities from the proceeds of bonds or special taxes levied in CFD No. 2025-4 and not from any other source.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying that there are no registered voters residing within the boundaries of the CFD No. 2025-4. Accordingly, under the Mello-Roos Act, only property owners owning land in CFD No. 2025-4 are eligible to vote at the election for CFD No. 2025- 4, with each owner having one vote for each acre (or portion thereof) that they own within CFD No. 2025-4.
The Property Owner has executed a consent and waiver of certain election procedures with respect to the election, including certain timing requirements with respect to the election, in accordance with the Mello-Roos Act. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining Necessity to Incur Bonded Indebtedness, the City Clerk will conduct the election. The Property Owner will have delivered its ballot to the City Clerk in advance of the public hearing, and the City Clerk will announce the election results, and the City Council will be asked to adopt the Resolution Certifying the Election Results.
Upon certification that 2/3rds of the votes cast are in favor of the propositions voted upon in CFD No. 2025-4, the Resolution Certifying the Election Results will direct the City Clerk to record a notice of special tax lien on the property within CFD No. 2025-4. The City Council will then be asked to introduce an ordinance authorizing the levy of the special tax within CFD No. 2025-4, in accordance with the CFD No. 2025-4 RMA.
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Agenda Item No. 21.
The Rustic Meadows project is also required to either annex to or request the formation of a public safety services CFD and a maintenance services CFD. Accordingly, the Property Owner has also requested the formation for Community Facilities District No. 2025-S (Safety Services) and that the Property be annexed to Community Facilities District No. 2025-2 (Maintenance Services) and on June 3, 2025, the City Council also adopted resolutions declaring its intention to form CFD No. 2025-S (Safety Services) and approve the annexation of the Rustic Meadows project into CFD No. 2025-2 (Maintenance Services), and set public hearings for July 15, 2025.
FISCAL IMPACT
The Developer has made a deposit of $80,000, to pay for the costs of the formation proceedings which may be reimbursed to the Property Owner from proceeds of a future bond issuance in accordance with the reimbursement agreement with the Developer. If established and subject to necessary Council and voter approvals, CFD No. 2025-4 will annually levy special taxes on all of the taxable property within CFD No. 2025- 4 in accordance with the CFD No. 2025-4 RMA. Such special taxes will be used to pay for the facilities, administration of the CFDs, and debt service on bonds. Any bonds issued by CFD No. 2025-4 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2025-4.
ATTACHMENTS
1. Landowner Waiver (CFD No. 2025-4)
2. Public Hearing Report (CFD No. 2025-4)
3. Resolution No. 25-4876
4. Resolution No. 25-4877
5. Resolution No. 25-4878
6. Ordinance No. 622-25
7. Certificate of the Registrar of Voters (CFD No. 2025-4)
8. Acquisition, Construction, and Funding Agreement (CFD No. 2025-4)
9. Joint Community Facilities and School Facilities Mitigation Agreement with Murrieta Valley Unified School District
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1 4918-6309-2559/022972-0050
WAIVER OF CERTAIN ELECTION PROCEDURES
WITH RESPECT TO LANDOWNER ELECTION FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
The undersigned, Steven C. Porath, acting on behalf of Whitewood—Murrieta, L.P., a Delaware limited partnership (the “Owner”), hereby certifies to the City of Murrieta (the “City”), with respect to the proposed formation of Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (the “District”), as follows:
1. The undersigned has been duly authorized by the Owner and possesses all authority necessary to execute this Waiver on behalf of the Owner in connection with the election to be called by the City Council of the City with respect to the District. The Owner hereby appoints Steven C. Porath to act as its authorized representative to vote in the election referred to herein and certifies that his true and exact signature is set forth below:
Signature of Steven C. Porath: __________________________________
2. The Owner is the present owner of 9.99 acres of land located within the proposed boundaries of the District. T o the actual knowledge of the undersigned, t here are no registered voters residing within the territory owned by the Owner and have been none during the 90-day period preceding July 15, 2025.
3. The Owner has received notice of the July 15, 2025 public hearing to be held by the City Council of the City regarding the levy of a special tax in th e District and the incurring of bonded indebtedness by the District. The Owner agrees that it received adequate notice of the July 15, 2025 hearing.
4. The Owner has received from the City and the City has made available to the Owner necessary and relevant information regarding the proposed formation of the District and the imposition of the special tax and the issuance of bonded indebtedness, as set forth in Resolution Nos. 25-4839 and 25-4840 adopted by the City Council on June 3, 2025 (together, the “Resolutions”) to finance the facilities as set forth in the Resolutions.
5. The undersigned understands that if the District is formed on or after July 15, 2025, an election will be held by the District on the propositions set forth in the sample ballot attached hereto as Exhibit “A” less than 90 days after the close of the July 15, 2025 public hearing as in accordance with Section 53326 of the Government Code, without the preparation of an impartial analysis, arguments or rebuttals concerning the election as provided for by Elections Code Sections 9160 to 9167, inclusive, and 9190 and without preparation of a tax rate statement as provided in Section 9401 of the Elections Code and without further notice of such election as required pursuant to the Elections Code or the Government Code. Having been fully advised with respect to the election, in accordance with the authority contained in Government Code Sections 53326 and 53327, the Owner waives compliance with the foregoing provisions of the Elections Code and Government Code, with any time limits or other procedural requirements pertaining to the conduct of the election which are not being complied with and consents to having the election on any date on or after the close of the July 15, 2025 public hearing and consents to the closing of the election as soon as all ballots are received by the City Clerk or Deputy City Clerk.
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6. The undersigned hereby represents that compliance with the procedural requirements for conducting the election, including the receip t of any ballot arguments and impartial analysis and the time limitations which apply in connection with scheduling, mailing and publishing notices for such an election, are unnecessary in light of the fact that the undersigned has received sufficient info rmation regarding the imposition of the special tax and the issuance of bonded indebtedness as set forth in the Resolution s to allow it to properly complete the attached ballot. The Owner further waives its right to make any protest or complaint or undertake any legal action challenging the validity of the election, the validity of any bonded indebtedness issued by the District as approved at the election, or the validity of the authorization of the special tax to finance facilities for the benefit of the District or to repay bonded indebtedness issued by the District in accordance with the rate and method of apportionment of special taxes provided in Resolution No. 25-4839 of the City Council of the City.
Dated: June __, 2025
WHITEWOOD—MURRIETA, L.P.,
a Delaware limited partnership
By: Cal Hearthstone PBLO GP, LLC,
a Delaware limited liability company
Its: General Partner
By:___________________________
Steven C. Porath
Authorized Representative
874
A-1
4918-6309-2559/022972-0050
EXHIBIT A
SAMPLE
OFFICIAL BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
SPECIAL TAX AND SPECIAL BOND ELECTION
July 15, 2025
PROPOSITION A: Shall Community Facilities District
No. 2025-4 (Rustic Meadows) of the City of Murrieta (the “District”) incur an indebtedness and issue bonds in one or more series in the maximum aggregate principal
amount of $5,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 25-4839 of the City Council of the City of Murrieta?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4839 of the City Council of the City of Murrieta be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 25-4839,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2025 -26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal to $5,000,000?
YES______
NO_______
875
Public Hearing Report
Community Facilities District No. 2025-4
(Rustic Meadows)
July 15, 2025
876
Table of Contents
Sections P age ____________________________________________ 1 Introduction ______________________________________________________ 1 2 Description of Facilities ___________________________________________________ 2 3 Cost Estimate ______________________________________________________ 3 4 Proposed Development ___________________________________________________ 4 5 Rate and Method of Apportionment _________________________________________ 5 6 Certifications ______________________________________________________ 6
Tables Page
3-1 Cost Estimate ______________________________________________________ 3 5-1 Assigned Special Tax for Developed Property _________________________________ 5
Appendices P age ____________________________________________ A Rate and Method of Apportionment ____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention
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1 Introduction Page | 1
City of Murrieta
CFD No. 2025-4 (Rustic Meadows)
Public Hearing Report
Background
On June 3, 2025 the City Council (the “City Council”) of the City of Murrieta (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2025 -4 (Rustic Meadows) of the City of Mu rrieta (“CFD No 2025-4” or “District”), Resolution No. 2025-4839, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter
2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (“Act”).
CFD No 2025-4 is currently comprised of Tract Map No. 38199 that includes one undeveloped parcel and approximately 10 gross acres for development. The proposed development includes 153 single family homes. The properties are generally located on the southeast corner of the intersection of Whitewood Road and Clinton Keith Road, east of Interstate 215.
For a map showing the boundaries of CFD No 2025-4 please see Appendix B.
Purpose of Public Hearing Report
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains the following:
1. A brief description of CFD No 2025-4;
2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No 2025-4.
3. A brief description of the Boundaries of CFD No 2025-4; and
4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing.
For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.
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2 Description of Facilities Page | 2
City of Murrieta
CFD No. 2025-4 (Rustic Meadows)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:
Description of the Facilities
A Community Facilities District may pay for facilities which may include all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied, provide for the pu rchase, construction, expansion, or reha bilitation for any real or other tangible property with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development and/or rehabilitation occurring within the District.
The types of facilities that are proposed by CFD No 2025-4 and financed with the proceeds of special taxes and bonds issued by CFD No 2025-4 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) storm drainage, library, park, law enforcement, fire, str eets and bridges, traffic, administration and community center facilities, and other public facilities of the City, including the foregoing public fac ilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”) and (ii) interim and permanent school facilities of Murrieta Valley Unified School District, incl uding classrooms, mult i-purpose facilities, administration and auxiliary space at sc hool facilities, athletic fields, playgr ounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities, including such school facilities Murrieta Valley Unif ied School District which are included in Murrieta Valley Unified School District’s school fee program (the “School Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities.
Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a) The cost of engineering, planning and designing the Facilities; and b) All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.
All costs associated with the creation of CFD No 2025-4, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No 2025-4, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No 2025-4 and any obligations.
The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature.
The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No 2025-4.
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3 Cost Estimate Page | 3
City of Murrieta
CFD No. 2025-4 (Rustic Meadows)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental ex penses, to be financed through the issuance of CFD No 2025- 4 Bonds is estimated to be $4,090,000 based upon current dollars (Fiscal Year 2025-26). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No 2025-4 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No 2025-4 are estimated to be $35,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be fores een today, and the actual incidental expenses may exceed these amounts accordingly.
Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Law Enforcement $63,801 $63,801
Fire Facilities $67,932 $67,932
Streets & Bridges $582,777 $582,777
Traffic Signals $111,690 $111,690
Storm Drainage $46,512 $46,512
General Facilities $25,704 $25,704
Park Land Facilities $466,497 $466,497
Community Center $81,549 $81,549
Public Library $41,310 $41,310
Total City Fees $1,487,772 $1,487,772
Murrieta Valley Unified School District Fees Total Bond Allocation(1) Level I School Developer Fee $1,334,698 $1,334,698
Developer Fee Premium $333,674 $305,447
Total Murrieta Valley Unified School District Fees $1,668,372 $1,640,145
Total Eligible Fees/Improvements $3,156,144 $3,127,917
Incidental Financing Costs $962,083
Total Funded by Bond Proceeds $4,090,000
Total Fees/Improvements to be Funded by Developer $28,227 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance.
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4 Proposed Development Page | 4
City of Murrieta
CFD No. 2025-4 (Rustic Meadows)
Public Hearing Report
The CFD No 2025-4 includes approximately 10 gross acres for development on one undeveloped parcel within Tract 38199.
The District is located on the southeast corner of the intersection of Whitewood Road and Clinton Keith Road, east of Interstate 215. As of Fiscal Year 2025-26 the proposed CFD No. 2025-4 includes the following Assessor's Parcel Number:
900-030-045.
A map showing the boundaries of CFD No 2025-4 is included in Appendix B.
881
5 Rate and Method of Apportionment Page | 5
City of Murrieta
CFD No. 2025-4 (Rustic Meadows)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No 2025-4 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No 2025-4, and provided further that CFD No 2025-4 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.
All of the property located within CFD No 2025-4, unless exempted by law or by the Rate and Method proposed for CFD No 2025-4, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No 2025-4 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benef it received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Consti tution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“Prepayment of Special Tax”).
For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No 2025-4 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2066-67 Fiscal Year.
Table 5-1
Assigned Special Tax for Developed Property
Fiscal Year 2025-26
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit
1. Single Family Residential Property RU Less than 1,500 sq. f t $1,659.00
2. Single Family Residential Property RU 1,500 sq. ft to 1,700 sq. f t $1,809.00
3. Single Family Residential Property RU Greater than 1,700 sq. f t $2,108.00
4. Multifamily Property Acre N/A $41,763.00
5. Non-Residential Property Acre N/A $41,763.00
Escalation of Special Taxes
On each July 1, commencing on July 1, 2026 the Assigned Special Tax shall increase by two percent (2.0%), of the amount in effect in the prior Fiscal Year.
For particulars as to the Rate and Method for CFD No 2025-4, see the attached and incorporated in Appendix A. 882
6 Certifications Page | 6
City of Murrieta
CFD No. 2025-4 (Rustic Meadows)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Murrieta as a result of development occurring within the CFD No 2025- 4 and benefits the lands within said CFD No 2025-4. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.
Date: July 15, 2025 SPICER CONSULTING GROUP, LLC
__________________________
SHANE SPICER
SPECIAL TAX CONSULTANT FOR
CITY OF MURRIETA
RIVERSIDE COUNTY
STATE OF CALIFORNIA
883
Appendix A:
Rate and Method of Apportionment
884
City of Murrieta
Community Facilities District No. 2025-4 (Rustic Meadows) Page 1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2025-4 (Rustic Meadows), of the City of Murrieta ("CFD No. 2025-4").
The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Murrieta, acting in its capacity as the legislative body of CFD No. 2025-4, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exem pt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit.
"Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other record ed County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2025-4: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025-4 or any designee thereof in complying with arbitrage rebate requirements; the costs to the City, CFD No . 2025-4 or any designee thereof in complying with continuing disclosure requirements of the City, CFD No. 2025-4 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-4 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses related to CFD No. 2025-4. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025-4 for any other administrative purposes of CFD No. 2025-4, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1
st preceding the Fiscal Year in which the Special Tax is being levied, 885
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Community Facilities District No. 2025-4 (Rustic Meadows) Page 2
and (ii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assesso r of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax" means the Special Tax of that name described in Section D below.
"Bonds" means any obligation to repay a sum of money, in cluding obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2025-4 have been pledged.
"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Bui lding Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of a ssessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following December
31. "CFD” or “CFD No. 2025-4" means Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta established by the City under the Act.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of Murrieta, State of California.
"City Council" means the City Council of the City of Murrieta, acting as the legislative body of CFD No. 2025-4.
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City of Murrieta
Community Facilities District No. 2025-4 (Rustic Meadows) Page 3
“Condominium Plan" means a condominium plan purusant to California Civil Code, Section 6624.
"County" means the County of Riverside, State of California.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordatio n of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (Ca lifornia Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D.
"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025-4 on such Assessor’s Parcel.
“Multi-family Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.
"Non-Residential Property" means all Assessor's Parc els of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2.
"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Develo ped Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the sa me for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax 887
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per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuan t to the provisions of Section F, but cannot be classified as Exempt Property because to do so wo uld be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F.
"Rate and Method of Apportionment " or “RMA” means this Rate and Method of Apportionment of Special Tax for CFD No. 2025-4.
"Residential Property" means all Assessor’s Parcels of Develope d Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multi-family Residential Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025-4 pursuant to the Act to fund the Special Tax Requirement.
"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No . 2025-4 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Pr operty or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay de bt service or other peri odic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-4, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.
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B. SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025-2026, each Assessor’s Parcel within CFD No. 2025-4 shall be classified as Taxable Property or Exempt Proper ty. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall furthe r be classified as Residential Property or Non- Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multi-family Residentia l Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.
In the event that there are Assessor’s Parcel(s) for which one or more Building Permits for Residential Units have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to such Assessor’s Parcel(s) (in accordance with the Final Map or Condominium Plan), the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax fo r such Assessor’s Parcel, based on the classification of such Assessor’s Parc el as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Assigned Special Tax rates for Developed Property and such amount shall be levied as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax on the Taxable Property in such As sessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Specia l Tax for such Assessor’s Pa rcel or (ii) the Backup Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Multi-family Residential Property and Non- Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multi-family Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special 889
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Tax for Fiscal Year 2025-2026 applicable to an Asse ssor's Parcel of Develo ped Property shall be determined pursuant to Table 1 below.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit
1. Single Family Residential Property RU Less than 1,500 sq. ft $1,659.00
2. Single Family Residential Property RU 1,500 sq. ft to 1,700 sq. ft $1,808.00
9. Single Family Residential Property RU Greater than 1,700 sq. ft $2,108.00
10. Multi-family Residential Property Acre N/A $41,763.00
11. Non-Residential Property Acre N/A $41,763.00
On each July 1, commenc ing July 1, 2026, the Assigned Special Ta x rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an As sessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be $1,858 per Residential Unit.
Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium plan contained within the boundaries of CFD No. 2 025-4 is subsequently changed or modified, then the Backup Special Tax for Single Family Residential Pr operty or Approved Property in such Final Map or condominium plan area that is changed or modified shall be recalculated as follows:
1. Determine the total Backup Special Taxes anticipa ted to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the total number of Residential Units constructed and/or anticipated to be constructed within such changed or modified Final Map or condominium plan area, as reasonably determined by the CFD Administrator.
The result of paragraph 2 is the Backup Special Tax per Residential Unit which shall be applicable to Assessor’s Parcels of Single Family Residential Prop erty or Approved Proper ty in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2025-4.
Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed Property for which a certificate of occupancy has been granted may not be revised.
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On each July 1, commencing July 1, 2026, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Residential Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single Family Residential Property shall be $41,763 per Acre.
On each July 1, commencing July 1, 2026, the Maxi mum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor’s Parc el of Undeveloped Property and Provisional Undeveloped Property shall be $41,763 per Acre.
On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall be levied Propor tionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable A ssigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys ar e needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Three: If additional moneys are needed to sa tisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Sp ecial Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement. 891
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Step Five: If additional moneys ar e needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undevelo ped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a re sult of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be in creased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify Assessor’s Parcels as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school district s, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than 7.56 Acres.
Notwithstanding the above, the City Council shall not cl assify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than 7.56 Acres.
Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 7.56 Acres will be classified as Provisional Undeveloped Property, and will be subject to the Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $4,000,000 expressed in 2025 dollars, whic h shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 2025- 4, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2025-4.
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“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News-Record Building Cost Index for the ci ty of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Facilities minus (i) amo unts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) pub lic facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Special Tax obligation may be prepaid and perm anently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approv ed Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parc els of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if th ere are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation for such Assessor’s Parcel shall provide th e CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-re fundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Am ount (as defined below) for the Assessor’s Parcel.
Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquen cies apply to such Assessor’s Parcel.
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2. For an Assessor’s Parcel of Developed Prop erty, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Ma ximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property, compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Maximum Special Taxes that could be levied assumi ng build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.
9. Determine the Special Taxes levied on the Asse ssor’s Parcel in the curre nt Fiscal Year which have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragra phs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Cr edit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the 894
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redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayme nt from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeas ance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Rede mption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fu nd. The Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increm ent of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Special Tax obligation is prepaid, the City Council shall cause a suit able notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax oblig ation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless for each fiscal year the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times debt service on the Bonds that will remain outstanding for such Fiscal Year after the prepayment plus the estimated annual Administrative Expenses.
Tenders of Bonds in prepayment of the Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.
2. Prepayment in Part
The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Pr operty may be partially prepaid. For purposes of determining the Partial Prepayment Amount, the provisio ns of Section G.1 shall be modified as provided by the following formula:
PP = ((P
E – A) x F) + A
These terms have the following meaning:
PP = Partial Prepayment Amount
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PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation for the Assessor’s Parcel shall notify the CF D Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the percentage of the Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial Prepayment Amount. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prep ayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parc el for which the Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayme nt Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of the applicable Special Tax will continue to be levied on the Assessor’s Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 2066-2067 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2025-4 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-4 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Sp ecial Taxes remain uncollected and (iv) all other obligations of CFD No. 2025-4 have been satisfied.
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025- 4 may collect Special Taxes at a different time or in a different manner if necessary to meet its fina ncial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes levied on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is curre nt in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously le vied must be paid on or before the payment date established when the levy was made. The appeal mu st specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special 896
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Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made unless approved by the CFD Administrator.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.
K. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.
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Appendix B:
Proposed Boundary Map
898
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Appendix C:
Resolution of Intention
900
RESOLUTION NO. 25-4839
RESOLUTION OF INTENTION OF THE CITY COUNCIL
OF THE CITY OF MURRIETA TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2025-4
(RUSTIC MEADOWS) OF THE CITY OF MURRIETA, TO
AUTHORIZE THE LEVY OF A SPECIAL TAX TO PAY
THE COSTS OF ACQUIRING OR CONSTRUCTING
CERTAIN FACILITIES, AND TO PAY DEBT SERVICE ON
BONDED INDEBTEDNESS
WHEREAS, the City of Murrieta (the “City”) received a petition signed by the owners of all of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta” (“Community Facilities District No. 2025-4” or the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certa in real or other tangible property described in Attachment “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and
WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2025-4; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Faci lities District No. 2025-4 and the issuance of bonded indebtedness in one or more series in an aggregate maximum principal amount of $5,000,000 with respect to the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Faciliti es and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2025-4;
WHEREAS, the City desires to enter into a reimbursement agreement with Century Communities of California, LLC , a Delaware limited liability company (the “Developer”), the form of which is on file with the City Clerk (the “Reimbursement Agreement”), to provide for 901
2 the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District;
WHEREAS, the District and t he Developer propose to enter into a joint community facilities agreement (the “JCFA”) with Murrieta Valley Unified School District (the “ School District”) relating to certain facilities proposed to be financed by the District and owned and operated by the School District , and the District expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. The above recitals are true and correct.
Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Attachmen t “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2025-4 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk-Recorder of the County of Riverside within 15 days after the adopti on of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.
Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta.” Section 4. The Facilities proposed to be provided within Community Facilities District No. 2025-4 are public facilities as defined in the Act, which the City, and the School District, with respect to certain school facilities, are authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the propo sed District.
The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.
All or a portion of the Facilities may be purchased with Dis trict funds as completed public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities m ay be financed through a lease or lease -purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.
Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax, 902
3 secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketi ng, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash).
The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within the District to estimate the maximum amount of the Special Tax that may be levied against each parcel. In the fir st year in which such Special Tax is levied, the levy shall include an amount sufficient to repay to the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.
If the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Attachment “C” hereto, (ii) such Special Tax not shall be levied after fiscal year 2066-2067, as described in Attachment “C” hereto, and (iii) under no c ircumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.
The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-4 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Attachment “C” to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In t he event that a portion of the property within Community Facilities District No. 2025-4 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Attachment “C,” the City Council shall, on behalf of Community Fa cilities District No. 2025-4, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment “C,” to the extent necessary upon the remaining property within proposed Community Facilities Distric t No. 2025-4 which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment “C” hereto.
Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-4, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental 903
4 Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on July 15, 2025, at the City of Murrieta Council Chamber , 1 Town Square , Murrieta, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.
Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2025-4 shall be established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2025-4 for the exclusive purpose of paying principal of or interest on bonds, l ease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2025-4 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue d ue from parcels within Community Facilities District No. 2025-4, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2025-4 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.
Section 8. At the time and place set forth above for the Hearing, any interested person, including all perso ns owning lands or registered to vote within proposed Community Facilities District No. 2025-4, may appear and be heard.
Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District N o. 2025-4, if it is established, is hereby directed to study the proposed District and, at or before the time of the above -mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-4 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.
Section 10. The District may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities 904
5 District No. 2025-4. The District may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay all or a portion of the funds a dvanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest.
Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-4. The City Clerk is further directed to mail a copy of the Notice to each of the l andowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpay ers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.
Section 12. The reasonably expected aggregate maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Five Million Dollars ($5,000,000).
Section 13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, the Assistant City Manager, or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the fo rm on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusive evidence of such approval.
Section 14. Except to the extent limited in any b ond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).
Section 15. This Resolution shall be effective upon its adoption. 905
6 PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
906
7 STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Resolution No. 25-4839 was duly adopted by the City Council of the City of Murrieta at a regular meeting held on the 3rd day of June, 2025, by the following votes:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
907
A-1
ATTACHMENT A
BOUNDARY MAP
908
B-1
ATTACHMENT B
Types of Facilities
to Be Financed by
Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion , rehabilitation and/or improvement of (i) storm drainage, library, park, law enforcement, fire, streets and bridges, traffic, administration and community center faciliti es, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”) and (ii) interim and permanent school facilities of Murrieta Valley Unified School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto , landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such sch ool facilities, including such school facilities Murrieta Valley Unified School District which are included in Murrieta Valley Unified School District’s school fee program (the “School Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Faciliti es, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acq uisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.
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C-1
ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2025 -4 (Rustic Meadows), of the City of Murrieta ("CFD No. 2025 -4"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Murrieta, acting in its capacity as the legislative body of CFD No. 2025 -4, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as se t forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel as a Single Family Residential Property with a stand - alone Residential Unit.
"Acre” or “Acreage" means the land ar ea of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estima ted costs directly related to the administration of CFD No. 2025 -4: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (w hether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025 -4 or any design ee thereof in complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-4 or any designee thereof in complying with continuing disclosure requirements of the City, CFD No. 2025 -4 and any major property owner associated with applicab le federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025 -4 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses related to CFD No. 2025 -4. Administration 910
C-2
Expenses shall also include amounts estimate d by the CFD Administrator or advanced by the City or CFD No. 2025 -4 for any other administrative purposes of CFD No. 2025 -4, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Pa rcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, c ertificates of participation, long -term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2025-4 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this defin ition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2025 -4" means Community Facilities District No. 2025 -4 (Rustic Meadows) of the City of Murrieta established by the City under the Act. 911
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“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of Murrieta, State of California. "City Council" means the City Council of the City of Murrieta, acting as the legislative body of CFD No. 2025-4.
“Condominium Plan" means a condominium plan purusant to California Civil Code, Section 6624.
"County" means the County of Riverside, State of California. "Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) for which a Building Permit for new construction was issued on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to Califo rnia Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.
“Indenture” means the inde nture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025 -4 on such Assessor’s Parcel.
“Multi-family Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sal e to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non -residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. 912
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"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy t o the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Rate and Method of Apportionment " or “RMA” means this Rate and Method of Apportionment of Special Tax for CFD No. 2025-4.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by o ne or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “Single Family Residentia l Property” means all Assessor’s Parcels of Residential Property other than Multi-family Residential Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025-4 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expen ses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2025-4 or the payment of debt service on Bonds anticipated to be issu ed, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.
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"Taxable Property" means all Assessor’s Parcels within CFD No. 2025 -4, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025 -2026, each Assessor’s Parcel within CFD No. 2025 -4 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Develop ed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. Each Assessor’s Parcel of Residential Pro perty shall further be classified as a Single Family Residential Property or Multi -family Residential Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.
In the event that there are Assessor’s Parcel(s) for which one or more Building Permits for Residential Units have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to such Assessor’s Parcel(s) (in accordance with the F inal Map or Condominium Plan), the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax for such Assessor’s Parcel , based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Assigned Spe cial Tax rates for Developed Property and such amount shall be levied as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
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The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i ) the Assigned Special Tax for such Assessor’s Parcel or (ii) the Backup Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Multi -family Residential Property and Non-Residential Property shall be the applicable Assigned Special Tax descri bed in Table 1 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multi -family Residential Property or Non-Residential Property shall be subject to an Assigned Special Tax.
The Assigned Spec ial Tax for Fiscal Year 2025 -2026 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single Family Residential
Property RU Less than 1,500 sq. ft $1,659.00
2. Single Family Residential
Property RU
1,500 sq. ft to 1,700 sq.
ft $1,808.00
9. Single Family Residential
Property RU Greater than 1,700 sq. ft $2,108.00
10. Multi-family Residential
Property Acre N/A $41,763.00
11. Non-Residential Property Acre N/A $41,763.00
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
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The Backup Sp ecial Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be $1,858 per Residential Unit.
Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium plan contained within the boundaries of CFD No. 2025 -4 is subsequently changed or modified, then the Backup Special Tax for Single Family Residential Property or Approved Property in such Final Map or condominium plan area that is changed or modified shall be recalculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.
2. The result of paragraph 1 above shall be divided by the total number of Residen tial Units constructed and/or anticipated to be constructed within such changed or modified Final Map or condominium plan area, as reasonably determined by the CFD Administrator.
The result of paragraph 2 is the Backup Special Tax per Residential Unit whic h shall be applicable to Assessor’s Parcels of Single Family Residential Property or Approved Property in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2025-4.
Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed Property for which a certificate of occupancy has been granted may not be revised.
On each July 1, commencing July 1, 2026, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Residential Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single Family Residential Property shall be $41,763 per Acre.
On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Ap proved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $41,763 per Acre. 916
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On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The S pecial Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy th e Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed t o satisfy the Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undevelope d Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel o f Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been lev ied in that Fiscal Year had there never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify Assessor’s Parcels as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered f or dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school 917
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districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making im practical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses or (vi) Assessor’s Parcels restricted to other types of public us es determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than 7.56 Acres.
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than
7.56 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less tha n 7.56 Acres will be classified as Provisional Undeveloped Property, and will be subject to the Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $4,000,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 2025 -4, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2025-4.
“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News -Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News -Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outsta nding after the first interest and/or principal payment date 918
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following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.
Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount shall be calculated as follows (some capitalized terms are defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property, compute the Maximum Special Tax for the Assessor’s Parcel.
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3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Maximum Special Taxes that could be levied assuming build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which have not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 920
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14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.
In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless for each fiscal year the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times debt service on the Bonds that will remain outstanding for such Fiscal Year after the prepayment plus the estimated annual Administrative Expenses.
Tenders of Bonds in prepayment of the Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.
2. Prepayment in Part
The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the Partial Prepayment Amount, the provisions of Section G.1 shall be modified as provided by the following formula:
PP = ((PE – A) x F) + A
These terms have the following meaning:
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 921
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F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the percentage of the Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any.
Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial Prepayment Amount. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor’s Parcel for which the Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment for the Assessor’s Parcel and that a portion of the Special Tax obligation equal to the remaining percentage (1.00 - F) of the applicable Special Tax will continue to be levied on the Assessor’s Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 2066-2067 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2025-4 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-4 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2025-4 have been satisfied.
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025 -4 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitt ed by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes levied on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During p endency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must 922
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specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce futu re Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made unless approved by the CFD Administrator.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.
K. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.
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4897-2963-3615v2/022972-0050
RESOLUTION NO. 25-4876
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,
CALIFORNIA, ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 2025-4 (RUSTIC MEADOWS ) OF THE CITY OF MURRIETA,
AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN, CALLING
AN ELECTION AND APPROVING AND AUTHORIZING CERTAIN
ACTIONS RELATED THERETO
WHEREAS, the City Council (the “City Council”) of the City of Murrieta (the “City”) has heretofore adopted Resolution No. 25-4839 stating its intention to form Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (“Community Facilities District No. 2025-4” or the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, bei ng Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, a copy of Resolution No. 25-4839 setting forth a description of the proposed boundaries of Community Facilities District No. 2025-4, the facilities and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to a ll landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2025-4 and to levy a special tax (the “Special Tax”) and to incur bon ded indebtedness in one or more series in the maximum aggregate principal amount of $5,000,000 therein to finance the facilities and incidental expenses described in Resolution No. 25-4839; and
WHEREAS, on July 15, 2025 , this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2025-4, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District; and WHEREAS, at the July 15, 2025, public hearing there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
WHEREAS, at the July 15, 2025 , public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025-4, the levy of the Special Tax and the issuance of b onded indebtedness were heard and full and fair hearings were held; and
WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of facilities (the “Facilities”) and the inciden tal expenses (the “Incidental Expenses”) set forth in Exhibit A hereto, which are described in more detail in the Engineer’s Report; and
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WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed Special Tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of t he District, the levy of the Special Tax and the issuance of bonded indebtedness therein; and WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2025-4 for each of the 90 days prior to July 15, 2025 and that the qualified electors in Community Facilities District No. 2025-4 are the landowners within the District; and WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2025-4 and to call an election therein to authorize (i) the levy of Special Tax pur suant to the rate and method of apportionment of the special tax, as set forth in Attachment C to Resolution No. 25-4839 (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Community Facilities District No. 2025- 4; and
WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into a n Acquisition , Construction and Funding Agreement (the “Acquisition Agreement ”) with Century Communities of California, LLC, a Delaware limited liability company (the “Developer”) and the form of the Acquisition Agreement is on file with the City Clerk; and
WHEREAS, in connection with the proposed formation of the District, the City proposes to enter into a Joint Community Facilities Agreement (the “ School District JCFA”) with the Murrieta Valley Unified School District (the “School District”) and the Developer, relating to certain facilities proposed to be financed by the District and owned and operated by the School District and the form of the School District JCFA is on file with the City Clerk;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. The above recitals is true and correct.
Section 2. A community facilities district to be designated “Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
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Section 3. The boundaries of Co mmunity Facilities District No. 2025-4 are established as shown on the map designated “ Proposed Boundary Map Community Facilities District No. 2025-4 (Rustic Meadows ) of the City of Murrieta, County of Riverside, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor -County Clerk-Recorder’s office of the County of Riverside in Book No. 9 6 Page No. 54 on June 10 , 2025 as Instrument No. 2025-0175994.
Section 4. The types of Facilities and Incidental Expenses authorized to be provided for Community Facilities District No. 2025-4 are those set forth in Exhibit A attached hereto.
The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the Engineer’s Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.
The City is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds and determines that the proposed Facilities are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Facilities to be financed, including those to be financed pursuant to the School District JCFA to be entered into with the School District, benefit residents of the City and the future residents of the District.
Section 5. Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the rates set forth in the Rate and Method on all non -exempt property within the District sufficient to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the District, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds and the District. The Rate and Method is described in detail in Attachment C to Resolution No. 25-4839 and incorporated herein by this reference, and the City Council hereby finds that the Rate and Method contains sufficient de tail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Engineer’s Report, which is incorporated by reference herein, the Special Tax is based on the exp ected demand that each parcel of real property within Community Facilities District No. 2025-4 will place on the Facilities and on the benefit that each parcel will derive from the right to access the Facilities and, accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each assessor’s parcel in accordance with the Rate and Method provided, however, that the Special Tax shall not be levied after Fiscal Year 2066-67. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property or the assessed value of real property. 927
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If Special Taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential pur poses and shall not be increased over time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied after Fiscal Year 2066-67, and (iii) under no circumstances will the Special Tax levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there neve r been any such delinquencies or defaults.
The City Manager of the City of Murrieta, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.
Section 6. In the event that a portion of the property within Community Facilities District No. 2025-4 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified in the Rate and Method, or in the event of delinquencies in the payment of Special Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2025-4, increase the levy to the extent necessary and permitt ed by law and these proceedings (including the maximum special tax set forth in the Rate and Method) upon the remaining property within Community Facilities District No. 2025-4 which is not exempt or delinquent in order to yield the required debt service p ayments on any outstanding bonds of the District, or to prevent the District from defaulting on any of its other obligations or liabilities; provided, however, under no circumstances will the Special Tax levied against any parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any suc h delinquencies or defaults. The amount of the Special Tax will be set in accordance with the Rate and Method.
The obligation to pay Special Taxes may be prepaid only as set forth in Section G of the Rate and Method.
Section 7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all non -exempt real property in the District and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax by the District ceases.
Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the lan d within Community Facilities District No. 2025-4, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2025-4 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2025-4.
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Section 9. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2025-4 for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No. 2025-4 as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 2025-4.
Section 10. Written protests against the establishment of the District have not been filed by one-half or more of t he registered voters within the boundaries of the District or by the property owners of one -half (1/2) or more of the area of land within the District. The City Council hereby finds that the proposed Special Tax has not been precluded by a majority protes t pursuant to Section 53324 of the Act.
Section 11. An election is hereby called for Community Facilities District No. 2025-4 on the propositions of levying the Special Tax on the property within Community Facilities District No. 2025-4 and establishing an appropriati ons limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Exhibit B.
Section 12. The date of the election for Community Facilities District No. 2025-4 on the propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and establishing an appropriations l imit for the District shall be July 15, 2025, or such later date as is consented to by the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) of the City of Murrieta; provided that, if the election is to take place sooner than 90 days after July 15, 2025, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election i mmediately following the close of the public hearing on July 15, 2025 . The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Murrieta insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Cle rk shall close the election by, 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots f or the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2025-4. The City Clerk has secured a certificate from the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding July 15, 2025, the qualified electors shall be the landow ners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2025-4, as provided in Section 53326 of the Act. Each landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on July 15, 2025, which waiver is on file with the City Clerk.
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Section 13. The preparation of the Engineer’s Re port is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2025-4. The Engineer’s Report is ordered to be kept on f ile with the transcript of these proceedings and open for public inspection.
Section 14. The District may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-4. The District may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest.
Section 15. The form of the Acquisition Agreement on file with the City Clerk is approved as to form, and each of the Mayor, the City Manager, the Assistant City Manager, or their written designees, are authorized to execute the Acquisition Agreement in substantially the form on file with the City Clerk, together with such changes as are approved by the office r executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.
Section 16. The form of the School District JCFA on file with the City Clerk is approved as to form, and each of each of the Mayor, the City Manager, the Assistant City Manager, or their written designees, are authorized to execute the School District JCFA in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.
Section 17. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
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CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4876 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 15th day of July, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
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EXHIBIT A
TYPES OF FACILITIES TO BE FINANCED BY
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
The proposed types of public facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) storm drainage, library, park, law enforcement, fire, streets and bridges, traffic, administration and community center facilities, and other public faci lities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Act (the “City Facilities”) and (ii) interim and permanent school facilities of Murrieta Valley Unified School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roa dways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities, including such school facilities Murrieta Valley Unified School District which are included in Murrieta Valley Unified School District’s school fee program (the “School Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the in cidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.
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EXHIBIT B
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
SPECIAL TAX AND SPECIAL BOND ELECTION
July 15, 2025
PROPOSITION A: Shall Community Facilities District
No. 2025-4 (Rustic Meadows ) of the City of Murrieta
(the “District”) incur an indebtedness and issue bonds in one or more ser ies in the maximum aggregate principal amount of $ 5,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 25-4839 of the City Co uncil of the City of Murrieta?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4839 of the City Council of the City of Murrieta be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 25-4839,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2025-26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an
amount equal to $5,000,000?
YES______
NO_______
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RESOLUTION NO. 25-4877
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC
MEADOWS) OF THE CITY OF MURRIETA DETERMINING THE
NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT
NOT TO EXCEED $ 5,000,000 WITHIN COMMUNITY FACILITIES
DISTRICT NO. 2025-4 (RUSTIC MEADOWS ) OF THE CITY OF
MURRIETA AND CALLING AN ELECTION THEREIN
WHEREAS, on June 3, 2025 , the City Council of the City of Murrieta (the “City Council”) adopted Resolution No. 25-4839 stating its intention to form Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (“Community Facilities District No. 2025-4” or the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the “Act”); and
WHEREAS, on June 3, 2025 , the City Council also adopted Resolution No. 25-4840 stating its intention to incur bonded indebtedness in the maximum aggregate principal amount of $5,000,000 within proposed Community Facilities District No. 2025-4 to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Exhibit B to Reso lution No. 25-4839, and (2) the incidental expenses to be incurred in financing such public facilities and services and forming and administering the District, as identified in Exhibit B to Resolution No. 25-4839; and WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2025-4 and to incur bonded indebtedness in the maximum aggregate principal amount of $5,000,000 within the boundaries of proposed Community Facilities District No. 2025-4; and
WHEREAS, on July 15, 2025 , this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2025-4, issue bonds to pay for the facilities and inc idental expenses described in Resolution No. 25-4839 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2025-4 for the purposes described in Resolution No. 25-4839; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2025-4, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities and incidental expenses wer e heard and a full and fair hearing was held; and
WHEREAS, the City Council subsequent to such hearing adopted Resolution No. 25- 4876 establishing Community Facilities District No. 2025-4 (the “Resolution of Formation”) and authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) described in Exhibit A thereto; and 934
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WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness within the District, to declare the purpose for said debt, and to authorize the submittal of a proposition to issue bonded indebtedness to the voters of the District, being the landowners within the proposed District, all as authorized and required by law;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. It is necessary to incur bonded indebtedness in one or more series in a maximum aggregate principal amount of $5,000,000 within Community Facilities District No. 2025-4.
Section 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities and financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2025-4, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act.
Section 3. The whole of the property within Community Facilities District No. 2025- 4, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 25-4839 as Exhibit C, shall pay for the bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation.
Section 4. The maximum term of the bonds to be issued shall in no event exceed 35 years or such longer term as is then permitted by law.
Section 5. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.
Section 6. The bonds may bear a variable or fixed interest rate, provided that such variable rate or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act, or any other applicable provision of law limiting the maximum interest rate on the bonds. 935
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Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for Community Facilities District No. 2025-4 on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $ 5,000,000 shall be in the form of Proposition A set forth in Exhibit A hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special ele ction called on the proposition of levying a special tax within the District as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Exhibit A, and on the proposition of establishing an appropriations limit for the District, which proposition shall be in the form of Proposition C set forth in Exhibit A.
Section 8. The date of the special election for Community Facilities District No. 2025-4 on the propositions of incurring the bonded indebtedness, authorizing t he levy of the special tax and setting an appropriations limit shall be July 15, 2025 , or such later date as is consented to by the City Clerk, or a Deputy City Clerk of the City (referred to herein as the “City Clerk”); provided that, if the election is t o take place sooner than 90 days after July 15, 2025 , then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the public hearing on July 15, 2025 . The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Murrieta insofar as such provisi ons are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation, and this resolution and all ballots shall be received by and the City Clerk shall close the election by 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2025-4. The City Clerk has secured a certificate of the Registrar of Voters of the County of Riverside certifyin g that there were no registered voters within the District. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding July 15, 2025, the qualified electors shall be the landowners within the Distri ct and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2025-4, as provided in Section 53326 of the Act. Each landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on July 15, 2025, which waiver is on file with the City Clerk.
Section 9. This Resolution shall be effective upon its adoption. 936
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PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4877 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 15th day of July, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
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EXHIBIT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
SPECIAL TAX AND SPECIAL BOND ELECTION
July 15, 2025
PROPOSITION A: Shall Community Facilities District
No. 2025-4 (Rustic Meadows ) of the City of Murrieta
(the “District”) incur an indebtedness and issue bonds in one or more series in the maximum aggregate principal
amount of $ 5,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses
described in Resolution No. 25 -4839 of the City Council of the City of Murrieta?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4839 of the City Council o f the City of Murrieta be levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 25 -4839,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2025 -26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal to $5,000,000?
YES______
NO_______
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RESOLUTION NO. 25-4878
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,
CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC
MEADOWS) OF THE CITY OF MURRIETA CERTIFYING ELECTION
RESULTS
WHEREAS, the City Council of the City of Murrieta called and duly held an election on July 15 , 2025 within the boundaries of Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (“Community Facilities District No. 2025-4” or the “District”) pursuant to Resolution Nos. 25-4876 and 25-4877 for the purpose of presenting to the qualified electors within the District Propositions A, B and C, attached hereto as Exhibit A; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of which is attached hereto as Exhibit B;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MURRIETA AS FOLLOWS:
Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District.
Section 2. Propositions A, B and C presented to the qualified electors of the District on July 15, 2025 were approved by more than two -thirds of the votes cast at said election and Propositions A, B and C each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issue bonds in one or more series in the maximum aggregate principal amount of $5,000,000 specified in Proposition A.
Section 3. The City Clerk is hereby directed to record in the Assessor -County Clerk- Recorder’s office of the County of Riverside within fifteen days of the date hereof a notice of special tax lien with respect to the District which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.
Section 4. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
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ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4878 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 15th day of July, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
940
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EXHIBIT A
BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
SPECIAL TAX AND SPECIAL BOND ELECTION
July 15, 2025
PROPOSITION A: Shall Community Facilities District
No. 2025-4 (Rustic Meadows ) of the City of Murrieta
(the “District”) incur an indebtedness and issue bonds in one or more series in the maximum aggregate principal
amount of $ 5,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and t he Incidental Expenses
described in Resolution No. 25 -4839 of the City Council of the City of Murrieta?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
25-4839 of the City Council of the City of Mur rieta be levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 25 -4839,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2025 -26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an
amount equal to $5,000,000?
YES______
NO_______
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EXHIBIT B
CERTIFICATE OF CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Community Facilities District No. 2025-4 (Rustic Meadows ) of the City of Murrieta. The election was held in the City o f Murrieta Council Chambers, 1 Town Square, Murrieta, California , on July 15, 2025. I caused to be delivered ballots to each qualified elector. One (1) ballot was returned.
I further certify that the results of said election and the number of votes cast for and against Propositions A, B, and C are as follows:
PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:
NO: NO: NO:
TOTAL: TOTAL: TOTAL:
Dated this 15th day of July, 2025.
CRISTAL MCDONALD, CITY CLERK
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ORDINANCE NO. 622-25
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MURRIETA,
CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS ) OF
THE CITY OF MURRIETA AUTHORIZING THE LEVY OF SPECIAL TAXES Summary: The ordinance authorizes the levy of special taxes in accordance with the Rate and Method of Apportionment approved by Resolution No. 25 -4838. These taxes will fund public safety services and will be levied annually on taxable property within the district beginning in the fiscal year specified in the Rate and Method, and continuing each year so long as services are provided through such financing within the District.
WHEREAS, on June 3, 2025, the City Council (the “City Council”) of the City of Murrieta (the “City”) adopted Resolution No. 25-4839 declaring its intention to form Community Facilities District No. 2025-4 of the City of Murrieta (Rustic Meadows ) (the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 25-4840 declaring its intention to incur bonded indebtedness for the District; and WHEREAS, on July 15, 2025 , after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 25-4839 and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of bonded indebtedness in one or more series in the maximum aggregate principal amount of $5,000,000, as described in Resolution No. 25-4840; and
WHEREAS, at the July 15, 2025 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the facilities described in Resolution No. 25-4839 and to secure the payment of bonded indebtedness in the maximum aggregate principal amount of $ 5,000,000 of the District as described in Resolution No. 25-4839 (the “Bonds”) were heard and a full and fair hearing was held; and WHEREAS, on July 15, 2025 , the City Council adopted Resolution Nos. ______ and _____ which formed the District and called a special election within the District on July 15, 2025 on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and WHEREAS, on July 15, 2025 , a special election was held within the District at which the qualified electors approved by more than a two thirds vote Propositions A, B, and C authorizing the levy of a special tax within the District for the purposes described in Resolution 25-4876, the issuance of the Bonds as described in Resolution No. 25-4877 and establishing an appropriations limit for the District; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA,
CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS ) OF THE CITY OF MURRIETA DOES HEREBY ORDAIN AS FOLLOWS:
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Section 1. The above recitals are all true and correct.
Section 2. By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 25-4839, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities and services authorized to be financed by the District, and payment o f all costs of administering the District.
Section 3. Each of the Mayor, the City Manager, the Assistant City Manager, the Director of Finance, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal yea r to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the R ate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Tre asurer-Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year, and with respect to Special Tax, until the Bonds are paid in full, the facilities have been paid for, and provision has been made for payment of all of the administrative costs o f the District.
Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 25-4876 or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment o r an existing special tax as provided in Section 53334 of the Act.
Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 25-4876.
Section 6. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.
Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund the Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act. 944
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Section 8. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) d ays after its passage at least once in The Press Enterprise , a newspaper of general circulation published and circulated in the City of Murrieta.
Section 9. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.
Section 10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer -Tax Collector of the County of Riverside, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.
Section 11. A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.
Section 12. This Ordinance shall take effect thirty days after its final passage.
PASSED AND ADOPTED by the City Council at a regular meeting held on the _____ day of _____, 2025.
CITY COUNCIL OF THE CITY OF MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
Tiffany J. Israel, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Ordinance was introduced by the City Council of the City of Murrieta, California, at its Regular meeting of July 15, 2025 and adopted at its Regular meeting of _____, 2025 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
I, Cristal McDonald, City Clerk of the City of Murrieta, California further certify that Ordinance No. 622-25 was duly published according to law and the order of the City Council of said City and the same was so published in Press Enterprise, a newspaper of general circulation on the following date(s):
Adopted Ordinance: , 2025.
In witness whereof, I have hereunto subscribed my name this __ day of ______________, 2025.
Cristal McDonald, City Clerk
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COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS)
OF THE CITY OF MURRIETA
ACQUISITION, CONSTRUCTION AND FUNDING AGREEMENT
THIS ACQUISITION, CONSTRUCTION AND FUNDING AGREEMENT (the “Agreement”) is made and entered into by and between CITY OF MURRIETA (the “City”), acting for and on behalf of itself and COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS) OF THE CITY OF MURRIETA (the “Community Facilities District” or “CFD”) and CENTURY COMMUNITIES, LLC , a Delaware limited liability company (the “Developer”), each individually a “Party” and collectively the “Parties.”
WHEREAS, Developer has requested that the City consider the formation of the CFD pursuant to the provisions of the Mello -Roos Community Facilities Act of 1982, as amended (the “Act”), and undertake proceedings for the authorization of special taxes and issuance of bonded indebtedness for the payment of the cons truction and/or acquisition of certain improvements to be owned, operated or maintained by the City and the Murrieta Valley Unified School District (the “School District”), and incidental expenses in accordance with the Act; and WHEREAS, in order to proceed in a timely way with development of the property within the CFD which is described in the attached Exhibit “A” (the “Developer Property”), Developer desires to fund through the Community Facilities District (i) the City’s acquisition or construction of certain improvements that are to be owned, operated and maintained by the City or are otherwise required to be constructed by the City (“City Improvements”), as more particularly set forth and described in the Description of Cost Estimat es attached hereto as Exhibit “B,” (ii) improvements included in the City’s fee programs (the “City Fee Facility Improvements”), as more particularly set forth and described in Exhibit “B,” and (iii) the improvements of the School District described in Exhibit “C” hereto (the “Miscellaneous Improvements” and together with the City Improvements and the City Fee Facilities Improvements, collectively the “Improvements”); and WHEREAS, the City is authorized by the Act to form the CFD and to issue bonds secured by Special Taxes (as defined in Section 2.2) of the CFD (the “Bonds”) to fund the Improvements; and
WHEREAS, the City Council has adopted the City’s policies and procedures concerning the use of special district financing programs to finance the Improvements (the “Policy”); and WHEREAS, the purpose of this Agreement is to constitute a formal understanding between Developer and the City (pursuant to the requirements of Government Code Section 53313.51 and other provisions of the Act and the Policy) concernin g financial and other obligations and responsibilities related to the formation of the Community Facilities District and the Improvements to be financed by the Community Facilities District, when and if formed, to the extent funds are available, and to set forth the conditions upon which (1) the Community Facilities District will reimburse Developer or its designee for the cost of the City Improvements constructed by or on behalf of the Developer and (2) the Community Facilities District will fund the City Fee Facility Improvements thereby satisfying corresponding City fees; and (3) the Community Facilities District will also fund the Miscellaneous Improvements described in Exhibit “C.” 948
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NOW, THEREFORE, it is mutually agreed between the respective Parties as follows:
1. Feasibility Study. The City has retained, at the Developer’s expense, the necessary consultants to analyze the proposed formation of the CFD to finance the Improvements, including a special tax consultant, bond counsel, and other consultants deem ed necessary by the City. The Developer has advanced to the City a sum of money for such costs. From time to time, Developer will make additional advances, within 10 business days following receipt from the City of a request for an additional advance, to cover the costs of the formation proceedings and any change proceedings under the Act requested by the Developer. The City will provide to Developer on request a summary of how the advances have been spent and the unexpended balance remaining.
The amounts advanced by the Developer , other than $5,000 (which is non reimbursable) and, to the extent determined reasonable and appropriate by the City, expenses incurred by the Developer for legal and other consultant costs in connection with the formation proce edings, any change proceedings and the issuance of Bonds, will be reimbursable to the Developer, without interest, from the proceeds of Bonds. In the event that Bonds are not issued to provide a source of reimbursement to Developer, the City shall not have any liability to Developer to reimburse it for any of the amounts previously advanced by Developer and expended by the City.
Prior to the issuance of the Bonds, the City will request a final advance for any unpaid expenses incurred during preparatory tec hnical, financial and legal work; and following payment of such expenses, the City shall promptly release the balance, if any, of the advance to the Developer.
Should the City’s expenses exceed the remaining balance, the City will bill the Developer for t he difference, which the Developer agrees to pay within 10 days following receipt of such billing, subject to the conditions of paragraph one of this section.
2. Sale of Bonds.
2.1 City Policies . The City Council has adopted the Policy, setting forth the City’s policies and procedures concerning the use of special district financing programs to finance the Improvements. Pursuant to the Policy, the total annual amount of the special taxes to be collected with respect to a parcel within the CFD and all other taxes and assessments which will be collected with respect to such parcel from the secured tax roll must not exceed two percent (2%) of the Fair Market Value (as defined in the Policy) of such parcel at the time of CFD formation.
The Parties hereby agree that, unless waived by the City, at the time of issuance of the Bonds the ratio of the value of all parcels of property within the CFD to the amount of outstanding community facilities district or assessment district bonds attributable to such parcels (the “Value-to-Lien Ratio”) may not be less than four -to-one (4:1). Unless waived by the City, the Fair Market Value of the property within the CFD for purposes of determining the foregoing ratio will be determined based on the appraised value of the property determined by appraisal made by an appraiser selected by the City with a valuation date within three (3) months of the issuance of the Bonds, or, with respect to completed homes (as determined in the sole discretion of the City) or issuance of refunding bonds, the assessed value of the property, or some combination thereof.
Subject to satisfaction of the Policy and the requirements of this Agreement, the City shall use reasonable efforts to iss ue and sell the Bonds in one or more series in an amount sufficient to fund the Improvements in accordance with the schedule for development of the Developer Property. The ultimate decision as to issuance and sizing lies in the sole legislative discretion of the City. 949
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2.2 Security for Payment of Special Taxes.
(a) Concurrently with the issuance and sale of each series of the Bonds, the owner of any land within the CFD which the City has determined, in its sole discretion, to use in the sizing of such series of Bonds (the “Sizing Property”), together with any Sizing Property owned by any affiliate (collectively, an “Account Party”), for which the Maximum Special Taxes fo r the then-current fiscal year (as defined in the Rate and Method of Apportionment of Special Tax for the CFD (“Rate and Method”) and such Special Tax referred to herein as the “Special Tax” or “Special Taxes”), are equal to or exceed 20% of the aggregate Maximum Special Taxes authorized to be levied on the Sizing Property in such fiscal year, shall deliver to the City either (i) a renewable irrevocable instrument of credit from a financial institution (rated “A” or better , or otherwise approved by the City ) and approved by the City, or (ii) cash in -lieu thereof (a “Security”). The Security shall be in an amount calculated by multiplying the Special Tax Requirement (as defined in the Rate and Method) for the then current and following fiscal year, by the pe rcentage of the Maximum Special Taxes for the current fiscal year allocable to the Developer Property owned by the Account Party (the “Stated Amount). The Security shall be maintained by the Account Party in each fiscal year until terminated in accordanc e with Section 2.2(c) below. While the Security is still required the Stated Amount of such Security shall be reduced as set forth in a Certificate of Reduction or Termination (as defined in Section 2.2(c) below).
The Security shall name the Fiscal Agent as a beneficiary and shall provide that the Fiscal Agent may draw an amount equal to any delinquencies in payment of semiannual installments of the Special Taxes levied on property owned by the Account Party. The total amount to be drawn under the Securit y shall not exceed an amount equal to the Special Taxes owed by the Account Party that is delinquent at the time the draw is made. The amount drawn on the Security shall be applied in the same manner and for the same purposes as the delinquent Special Taxes would have been applied; provided, however the payment of a draw under the Security will not be deemed to cure the delinquency in payment of the Special Taxes.
If, subsequent to a draw on the Security and prior to the satisfaction of any reimbursements due to the institution providing the Security (the “Security Provider”) pursuant to this Agreement, the City receives payment of all or a portion of the delinquent Special Taxes or the proceeds of a sale of delinquent real property pursuant to foreclosure proceedings (“Delinquency Proceeds”) for a parcel for which the Security has been drawn, the Security Provider (or its designee, which may be the Developer) shall be reimbursed for such draws to the extent of Delinquency Proceeds net of the City’s costs of collection. The Security Provider is intended by the Parties to be a third party beneficiary of this Section 2.2.
(b) The Security shall be renewed, or a substitute Security reasonably satisfactory to the City (a “Substitute Security”) provided, not less tha n thirty (30) calendar days prior to the expiration of the Security or Substitute Security then in effect. If the Account Party provides a Substitute Security to the City, then the Fiscal Agent shall return any existing Security on the effective date of the Substitute Security to the Security Provider.
If the Security is not renewed within thirty (30) days prior to its expiration date and the requirements for release or termination of the Security as set forth in Section 2.2(c) below have not then been met, the full amount of the Security may be drawn by the Fiscal Agent and deposited in an account established under the Indenture (as hereinafter defined) or in such account established with a financial institution selected by the City. Thereafter, amounts in such account 950
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shall be held as security, and if Special Taxes owed by the Account Party are not paid prior to delinquency, then such amounts in such account may be applied by the City to pay the delinquent Special Taxes owed by the Account Party with respect to such property on the same terms and conditions applicable hereunder to draws on the Security.
At such time as the Security is renewed, or a Substitute Security is accepted by the Fiscal Agent, or the requirement for the Security has been terminated pursuant to this section, the City or its designee, shall release all amounts in the Security account to the Security Provider (or its designee, which may be the Developer) within ten (10) calendar days from the date of renewal or acceptance.
(c) Following the sale or transfer by the Account Party of any pro perty to a person other than the Account Party, or upon the prepayment of the Special Tax obligation for a parcel owned by the Account Party, the Account Party shall notify the Community Facilities District of such event, in writing, and, if requested by t he Account Party, the Stated Amount of the Security shall be reduced and be recalculated in accordance with this Section 2.2; provided, however, that any costs associated with the recalculation and reduction shall be borne by the Account Party. Subject to Section 2.2(d) below, the Stated Amount may be reduced to an amount determined by the method of calculation set forth in Section 2.2(a) hereof. The Security shall be terminated upon the earlier of (i) when the Sizing Property owned by, or under option to, the Account Party is responsible for less than 20% of the Maximum Special Taxes applicable to all of the Sizing Property or (ii) when the Account Party has paid (or cause to be paid) all Special Taxes owed by the Account Party in the current fiscal year a nd the Sizing Property owned by, or under option to, the Account Party is expected to be responsible for less than 20% of the Maximum Special Taxes in the next fiscal year.
Reduction or termination of a Security shall occur automatically upon submission to the Security Provider by the Fiscal Agent of a “Certificate of Reduction or Termination” upon valuation of the Certificate of Reduction or Termination by the City. The City shall direct that the Fiscal Agent deliver to the Security Provider such Certific ate of Reduction or Termination promptly upon receiving from the Account Party a certification which shall be made under penalty of perjury and which shall indicate (i) the legal description of all Sizing Property owned by the Account Party, and either (ii ) a recalculation of the new Stated Amount that the Account Party proposes be applicable to the Security or (iii) if termination of the Security is requested, a statement that one of the requirements set forth in the preceding paragraph for termination of the Security has been satisfied.
The Account Party shall notify the City of any events that will result in a reduction of the Stated Amount of the Security and shall provide the City with verification of said events. The Account Party may provide the Fisc al Agent with a Substitute Security in the reduced amount, and the Fiscal Agent shall release and return to the Security Provider the Security then in effect. The Parties expressly acknowledge that the Account Party’s failure to so notify the City or to reduce the Security at the times prescribed herein shall in no way effect or invalidate sale or transfer of property, or recordation of maps on property.
(d) If any Sizing Property is sold or transferred by an Account Party with the result that the Sizing Prope rty owned by the transferee together with any of its affiliates (“Transferee”) is responsible for 20% or more of the aggregate Maximum Special Taxes of all Sizing Property, a Security on the same terms specified in Section 2.2(a) above will be furnished by Transferee with respect to all Sizing Property owned by such Transferee. Any applicable purchase 951
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and sale agreement and/or escrow instructions shall notify the Transferee of this Security requirement and obligate the Transferee to provide such Security, if applicable. The Security of the Account Party will not be reduced to reflect the sale or transfer of such Sizing Property until a Security is furnished by the Transferee and accepted by the Fiscal Agent. The issuing financial institution and the form and terms of said Security will be subject to reasonable prior approval by the City. All terms provided in this Section 2.2 are applicable to the Transferee by replacing the term “Account Party” at each place where it occurs in each section with the term “Transferee.” Each provider of a Security for a Transferee shall be an express third party beneficiary of the provisions of this Section 2.2.
Any costs related to the holding or maintaining the Security, including any fees of a fiscal agent, trustee or other depository shall be borne by the Account Party.
2.3 Major Landowner Initial and Continuing Disclosure . An owner of land which is responsible for twenty percent (20%) or more of the Special Tax levy applicable to the Sizing Property in the fiscal year in which the Bonds are issued or in the fiscal year following the fiscal year in which the Bonds are issued (a “Major Landowner”) will be required to provide all information regarding the development of its property, including the financing plan for such development, which is necessary to ensure that the official statement for such Bonds complies with the requirements of Rule 15c2 -12 and Rule 10b -5 of the Securities and Exchange Commission (the “Rule”) and all other applicable federal and state securities law s. Additionally, Developer acknowledges that, if it is a Major Landowner at the time of issuance of the Bonds, it will be necessary that Developer enter into a continuing disclosure agreement to provide such continuing disclosure pertaining to the develop ment of the land owned by Developer to assist in the marketing of the Bonds.
2.4 Bond Issuance Parameters. The terms and conditions upon which each series of the Bonds shall be issued and sold, the method of sale of the Bonds and the pricing of the Bonds shall be determined solely by the City in its legislative discretion in conformance with the Act, the Policy, and this Agreement. Each series of Bonds shall be issued with a term not to exceed 35 years from the date of issuance of the Bonds. The proceeds o f the Bonds shall be used in the following priority to (1) fund a reserve fund for the payment of principal and interest with respect to the Bonds in an amount equal to the least of (i) ten percent (10%) of the total bond issue, (ii) maximum annual debt se rvice on Bonds, or (iii) 125% of average annual debt service; (2) fund capitalized interest through the interest payment date on the Bonds for which Special Taxes are not available for payment of debt service on the Bonds or such longer period as requested by the Developer and approved by the City, subject to the Act; (3) reimburse the Developer or its designee pursuant to Section 1 hereof for CFD formation costs advanced by the Developer which have not already been reimbursed to the Developer from collecte d Special Tax; (4) pay for costs of issuance of the Bonds including, without limitation, underwriter’s discount, bond counsel and disclosure counsel fees, appraisal and special tax consultant fees, printing, fiscal agent fees, and reasonable Developer lega l and financial consultant costs; (5) pay for the costs of forming the Community Facilities District; and (6) pay for the actual costs of the Improvements. At the request of the Developer, the City, in consultation with the underwriter of the Bonds, may c onsider providing for surety or bond insurance in lieu of all or a portion of the reserve fund in order to generate additional proceeds to fund Improvements. The Community Facilities District shall maintain records relating to the disbursements of proceeds of the sale of the Bonds. The Indenture or Resolution or Fiscal Agent Agreement (hereinafter “Indenture”) for the Bonds shall establish an acquisition and construction fund or improvement fund (herein, the “Improvement Fund”) to be held by the fiscal age nt (“Fiscal 952
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Agent”) into which shall be deposited initially the proceeds of the Bonds net of the amount of proceeds required to fund items (1) through (5) in the second preceding sentence. The Indenture shall also establish separate accounts of the Improv ement Fund designated the “City Improvements Account,” “City Fee Facility Improvements Account,” and any Miscellaneous Improvement Account(s) for the Miscellaneous Improvements described in Exhibit “C,” into which shall be deposited such portions of the Improvement Fund as agreed by the Parties and directed by the City in writing at or subsequent to the closing of the sale of the Bonds consistent with the following priorities:
(a) An amount sufficient to fund the reasonable, current estimated cost of the City Fee Facility Improvements anticipated to be funded out of the Bonds being issued shall be deposited in the City Fee Facility Improvements Account (any Special Taxes collected by the CFD remaining after t he payment of administrative expenses of the CFD and the reimbursement of the Developer for CFD formation costs and Improvements pursuant to Section 3 hereof shall be deposited into the City Fee Facility Improvements Account at the time of Bond issuance, u nless otherwise directed in writing by the Developer);
(b) An amount equal to 20% of the amount funded in (a) shall be deposited in the City Fee Facility Improvements Account; (c) If applicable, an amount to be agreed upon between Developer and the CFD prior to th e issuance of Bonds sufficient to fund the reasonable, current estimated costs of the City Improvements shall be deposited, or later transferred, to the City Improvements Account; and
(d) If applicable, an amount to be agreed upon between Developer and the CFD prior to the issuance of Bonds sufficient to fund the reasonable, current estimated cost of the Miscellaneous Improvements described in Exhibit “C” hereto, anticipated to be funded out of the Bonds being issued shall be deposited, or later transferred, to the applicable Miscellaneous Improvement Account(s).
Interest earned on moneys deposited in each of the City Fee Facility Improvements Account, the City Improvements Account and the Miscellaneous Improvements Account(s) shall remain in such accounts until such time as all of the Improvements have been funded. Additionally, the Developer may direct the CFD to transfer excess moneys in any of the City Fee Facility Improvements Account, the City Improvements Account or the Miscellaneous Improvements Account(s) to another Account. The Indenture shall provide that amounts remaining in the Improvement Fund after funding all proposed Improvements (such completion of funding to be agreed by the City and the Developer) shall be deposited in the special tax fund or bond service fund and be applied to pay debt service on the Bonds and/or to call Bonds in advance of maturity.
3. Allocation of Special Taxes. Prior to the issuance of Bonds, the City Council of the City, acting as the legislative body of the Community Faci lities District, may levy Special Taxes on all parcels classified as Developed Property pursuant to the Rate and Method. Such Special Taxes collected by the City shall first be applied to fund annual administrative expenses of the Community Facilities District and then to fund Improvements in the same manner as the proceeds of Bonds as set forth herein. Upon sale and delivery of the Bonds, the City shall annually levy the Special Tax as provided for in documents pursuant to which the Bonds were issued. F ollowing the issuance of the 953
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last series of Bonds, the City shall have no obligation to levy Special Taxes to reimburse the Developer for the costs of any Improvements not paid for from Bond proceeds.
4. Notice of Special Tax . Developer shall provide written notice to all potential initial purchasers of lots advising of the special tax obligation applicable to the Developer Property in the form required by Section 53341.5 of the Government Code.
5. Design Plans and Specifications . The requirements of this Sec tion shall not apply to any City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other City Improvements for which the Acquisition Pr ice is paid. All plans, specifications and bid documents for the City Improvements (“Plans”) constructed or to be constructed by the Developer shall be prepared by the Developer at the Developer’s initial expense, subject to approval by the applicable public agency. Costs for preparation of the Plans will be eligible for reimbursement, conditioned upon the final approval of the applicable public agency and the availability of funds. Reimbursement of costs for plan revisions will be considered on a case b y case basis. All facilities which were not complete prior to the formation of the District, as determined by the City, shall be bid in accordance with “public works” requirements of Section 7 to be eligible for reimbursement.
6. Construction of Improvements. The requirements of this Section shall not apply to any City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other City Improvements for which the Acquisition Price is paid.
6.1 Acquisition of City Improvements . Upon the approval of Plans for a City Improvement, the Developer will provide for construction of such City Improvement in accordance with Sections 6.2 and 7 of this Agreement. Sections 6.2 and 7 specify the requirements for construction of the City Improvements that the City believes are necessary to ensure that such City Improvements are constructed as if they had been constructed under the direction and supervision , or under the authority of the City.
6.2 Acquisition. With respect to City Improvements, a qualified engineering firm (the “Field Engineer”) shall be employed by the Developer to provide all field engineering surveys determined to be necessary by the City’s inspection personnel. Field Engineer shall promptly furnish to City a complete set of grade sheets listing all locations, offsets, etc., in accordance with good engineering practices, and attendant data and reports resulting from Field Engineer’s engineer ing surveys and/or proposed facility design changes. City shall have the right, but not the obligation, to review, evaluate and analyze whether such results comply with applicable specifications.
As necessary as determined by City, a full -time soil-testing firm, approved by City, shall be employed by the Developer to conduct soil compaction testing and certification. The Developer shall promptly furnish results of all such compaction testing to the City for its review, evaluation and decision as to compliance with applicable specifications. In the event the compaction is not in compliance with applicable specifications, the Developer shall be fully liable and responsible for the costs of achieving compliance. A final report certifying all required compac tion in accordance with the specifications shall be a condition of final approval of facilities. 954
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The costs of all surveying, testing and reports associated with the City Improvements furnished and constructed by the Developer’s contractor(s) shall be eligi ble to be paid from funds in the City Improvements Account.
The City shall not be responsible for conducting any environmental, archaeological, biological, or cultural studies or any mitigation requirements that may be requested by appropriate Federal, Sta te, and/or local agencies. Any such work shall be paid for and conducted by the Developer and reimbursed out of the City Improvements Account.
Should the Developer notify the City that the Developer is unable to complete such City Improvement, the City shall have the right but not the obligation to require the Developer to make an irrevocable offer of dedication to the City of the land owned by the Developer for the City Improvement identified in the notice and to assume responsibility for the work to be performed thereunder. In the event the City elects to assume the responsibility for any work on a previously awarded contract as described in the preceding sentence, the following will occur: (i) the Developer will make an irrevocable offer of dedicatio n to the City of the land owned by the Developer for such City Improvement identified in the notice; (ii) to the extent permitted by law and the applicable contract, the Developer will assign all of the contracts for the work performed to date on the City Improvement identified in the notice to the City, if requested to do so by the City Manager; the City will use its best efforts to complete the City Improvement within a reasonable time frame; and upon completion of the City Improvement, to the extent ther e are Special Taxes or proceeds of the Bonds available following payment to the City for the costs of completing such City Improvement, the Developer will be reimbursed for the lesser of the cost or value of the previously unreimbursed satisfactory work performed or paid for by the Developer. The cost of such work will be determined by taking the unreimbursed amounts expended by the Developer under the contract(s) taken over by the City and deducting any incremental cost incurred by the City to complete th e work under the contracts in question. Incremental cost shall be costs in excess of the sum of the original contract cost plus change orders approved by the City.
7. Public Works Requirements.
7.1 City Requirements . In order that the City Improvements for whic h the Acquisition Price is paid may be properly and readily acquired by the City, the Developer shall comply with all of the requirements in this Section 7.1 with respect to any such City Improvements to be acquired with funds in the City Improvements Acc ount and the Developer shall provide such proof to the City as the City may reasonably require and at such intervals and in such form as the City may reasonably require, that the requirements under this Section 7.1 have been satisfied as to all such City Improvements. Notwithstanding the foregoing, City Improvements shall only be eligible for financing by the CFD if the City determines that the conditions under Section 53313.5 have been satisfied with respect to such City Improvements.
(a) The Developer shall prepare a bid package for review, comment and approval by the City Manager or his or her designee (the “City Representative”) for any City Improvements bid after the effective date of this Agreement. (b) For any City Improvements bid after the effective date of this Agreement, the Developer shall, after obtaining sealed bids for the construction of the City Improvements in conformance with the procedures and requirements of the City, submit to the City written evidence of such competitive bidding procedure, in cluding evidence of the means by which 955
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bids were solicited, a listing of all responsive bids and their amounts, and the name or names of the contractor or contractors to whom the Developer proposes to award the contracts for such construction, which shall be the lowest responsible bidder. (c) For any City Improvements bid after the effective date of this Agreement, the following provisions apply: the City Representative shall attend the bid opening for such City Improvements. If unable to attend the bid openin g, the City Representative shall approve or disapprove of a contractor or contractors, in writing, within five (5) business days after receipt from the Developer of the name or names of such contractor or contractors recommended by the Developer. If the City Representative disapproves of any such contractor, the Developer shall select the next lowest responsible bidder from the competitive bids received who is acceptable to the City Representative.
(d) The specifications and bid and contract documents shall re quire all such contractors to pay prevailing wages and to otherwise comply with applicable provisions of the Labor Code, the Government Code and the Public Contract Code relating to public works projects and as required by the procedures and standards of t he City with respect to the construction of its public works projects.
(e) The Developer shall submit faithful performance and payment bonds in form and substance reasonably acceptable to the City with respect to the City Improvements. (f) The Developer and its co ntractor and subcontractors shall be required to provide proof of insurance coverage throughout the term of the construction of the City Improvements, which they will construct in conformance with the City’s standard procedures and requirements. The City’s insurance requirements are set out in Section 21 herein. (g) The Developer and all such contractors shall comply with such other requirements relating to the construction of the City Improvements which the City may impose by written notification delivered to the Developer and each such contractor at the time either prior to the receipt of bids by the Developer for the construction of such City Improvements or, to the extent required as a result of changes in applicable laws, during the progress of constructio n thereof; provided that such other requirements shall only be imposed to the extent the City reasonably determines they are required in order to comply with applicable law. In accordance with Section 7, the Developer shall be deemed the awarding body and shall be solely responsible for compliance and enforcement of the provisions of the Labor Code, Government Code, and Public Contract Code. (h) A “Change Order” is an order from the Developer to a contractor authorizing a change in the work to be performed and a “Significant Change Order” is an order from the Developer to a contractor authorizing a change in the work to be performed where such Change Order is larger than 10% of the contract amount for such City Improvement. After the effective date of this Agr eement, the Developer shall receive comments from the City Representative prior to the Developer’s approval of any Significant Change Order. The City Representative shall comment on or deny the Significant Change Order request within ten (10) calendar days of receipt of all necessary information. The City’s comments to a Significant Change Order shall not be unreasonably delayed, conditioned or withheld. After the effective date of this Agreement, field verification that the work was performed in accordan ce with a Change Order or a Significant Change Order shall be required, which verification shall be demonstrated by the signature of a City Representative on the Change Order or Significant Change Order. The Developer shall not be entitled to be compensated for costs 956
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associated with a Change Order or a Significant Change Order that has not been approved or if the work has not been verified, as applicable, by the City Representative in accordance with this Section 7(h).
Developer shall provide proof to the City, at such intervals and in such form as the City may reasonably require, that the foregoing requirements have been satisfied as to all of the City Improvements which are funded through Bond proceeds.
8. Inspection; Completion of Construction . The requirements of this Section shall not apply to any City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they sha ll apply to all other City Improvements for which the Acquisition Price is paid.
The City shall have primary responsibility for inspecting the City Improvements to assure that the work is being accomplished in accordance with the Plans. Such inspection do es not include inspection for compliance with safety requirements by the Developer’s contractor(s). The City’s personnel shall be granted access to each construction site at all reasonable times for the purpose of accomplishing such inspection. Upon satisfaction of the City’s inspectors, the Developer shall notify the City in writing that a City Improvement has been completed in accordance with the Plans. Any actual costs reasonably incurred by the City for inspection not previously paid by the Developer shall be reimbursed from funds in the City Improvements Account.
Within three (3) business days of receipt of written notification from City inspectors that a City Improvement has been completed in accordance with the Plans, the City Representative shall notify the Developer in writing that such City Improvement has been satisfactorily completed. Upon receiving such notification, the Developer shall file a Notice of Completion with the County of Riverside Recorders Office, pursuant to the provisions of Se ction 3093 of the Civil Code. The Developer shall furnish to the City a duplicate copy of each such Notice of Completion showing thereon the date of filing with the County of Riverside (the “County”). City will in turn file a notice with the County for acceptance.
9. Liens. With respect to any City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, prior to any payment by the CFD to the Developer for such City Improvement, the Developer shall provide to the City such evidence or proof as the City shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equipment for the construction of the City Improvements have been paid, and that no claims of liens have been recorded by or on behalf of any such person, firm or corporation. With respect to City Improvements, upon the earlier of (i) receipt of all applicable lien releases, or (ii) expiration of the time for the recording of claim of liens as prescribed by Sections 3115 and 3116 of the Civil Code the Developer shall provide to the City such evidence or proof as the City shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equip ment for the construction of the City Improvements have been paid, and that no claims of liens have been recorded by or on behalf of any such person, firm or corporation.
10. Acquisition; Acquisition Price; Source of Funds . The acquisition price of a City Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD shall be its fair market value, as determined by the City Manager or his or her designee, as of the date of acquisiti on. The City shall consider input and data 957
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provided by the Developer prior to determining the final fair market value. The Actual Cost (as defined below) of the City Improvement shall be presumed to be its fair market value unless there is reasonable evidence that a lower amount is the fair market value.
The costs eligible to be included in the acquisition price of a City Improvement that is not described in the preceding paragraph (the “Actual Costs”) shall include:
(i) The actual hard costs for the construc tion of such City Improvement as established by the City-approved construction contracts, Change Orders, and approved Significant Change Orders, including costs of payment, performance and maintenance bonds and insurance costs, pursuant to this Agreement;
(ii) The design and engineering costs of such City Improvement including, without limitation, the costs incurred in preparing the Plans; (iii) The costs of environmental evaluations and public agency permits and approvals attributable to the City Improvement;
(iv) Costs incurred by the Developer for construction management and supervision of such City Improvement, not to exceed five percent (5%) of the actual construction cost;
(v) Professional costs associated with the City Improvement such as engineering, inspection, construction staking, materials, testing and similar professional services; and (vi) Costs approved by the City in accordance with the Act of acquiring any real property or interests therein required for the City Improvement including, without limitation, temporary construction easements, temporary by-pass road and maintenance easements.
Provided the Developer has complied with the requirements of this Agreement, the City agrees to pay the acquisition price of a completed City Improvement to the Developer or its desig nee within thirty (30) days after the Developer’s satisfaction of the preconditions to such payment stated herein, but only to the extent there are sufficient funds available in the City Improvements Account.
Except in the case of a City Improvement descr ibed in the first paragraph of this Section, the acquisition price to be paid from Bond proceeds for the acquisition of a City Improvement by the City shall be the least of (1) the value of the City Improvement; or (2) the total of the Actual Costs of the City Improvement (“Acquisition Price”). The Actual Cost of the City Improvement shall be presumed to be its Acquisition Price unless there is reasonable evidence that a lower amount is the actual value.
As a condition to the payment of the Acquisition Pri ce, the ownership of the completed City Improvement shall be transferred to the City by grant deed, bill of sale or such other documentation as such public agency may require free and clear of all taxes, liens, encumbrances, and assessments, but subject to any exceptions determined by the City to not interfere with the actual or intended use of the land or interest therein (including the lien of a community facilities district so long as the subject property is exempt from taxation or is otherwise not taxab le by such community facilities district). Upon the transfer of ownership of City Improvements or any portion thereof to the City, the City shall be responsible for the maintenance of such City Improvements or the portion transferred.
Notwithstanding the foregoing, the Acquisition Price of a City Improvement may be paid prior to 958
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transfer of ownership and acceptance of the City Improvement if it is substantially completed at the time of payment. The City Improvement shall be considered “substantially comp lete” when it has been reasonably determined by the City to be usable, subject to final completion of such items as the final lift or any other items not essential to the primary use or operation of the City Improvement.
For purposes of determining the Acquisition Price to be paid by the Community Facilities District for the acquisition of the City Improvements by the City (other than City Improvements described in the first paragraph of this Section), the value of such City Improvements shall include the construction costs specified in the City-approved contracts (subject to the next sentence), Change Orders, and City -approved Significant Change Orders conforming to Section 6, as hereinbefore specified. City approval is a condition prior to initiation o f contract work for City Improvements bid after the effective date of this Agreement. However, if the City reasonably determines that the additional Actual Costs are excessive and that the value of the City Improvements is less than the total amount of such Actual Costs and such construction costs, the price to be paid for the acquisition of the City Improvements shall be the value thereof as determined by the Engineer, subject, however, to the Developer’s right to appeal to the City Council.
Upon completion of the construction of a City Improvement, the Developer shall deliver or cause to be delivered to the City a Disbursement Request Form in substantially the form of Exhibit “D,” attached hereto, copies of the contract(s) with the contractor(s) who have constructed the City Improvement and other relevant documentation with regard to the payments made to such contractor(s) and each of them for the construction of the City Improvement, documentation evidencing payment of prevailing wages, and shall also pro vide to the City invoices and purchase orders with respect to all equipment, materials and labor purchased for the construction of the City Improvements. The City shall require the Engineer to complete its determination of the value of the City Improvements as promptly as is reasonably possible.
The payment of the Acquisition Price of any City Improvement that is included in the City’s fee program shall not preclude the grant of City fee credits to the Developer for such City Improvements.
Notwithstanding the preceding provisions of this Section, the source of funds for the acquisition of the City Improvements or any portion thereof shall be funds in the City Improvements Account. If for any reason beyond the City’s control the Bonds are not sold, the City shall not be required to acquire the City Improvements from the Developer, except to the extent of funds from the collection of Special Taxes. In such event, the Developer shall complete the design and construction and offer to the City ownership of such portions of the City Improvements as are required to be constructed by the Developer as a condition to recordation of subdivision maps for the Developer Property (but only at such times as required by such condition), but need not construct any portion of the City Improvements which it is not so required to construct. Reimbursement for these facilities would be made from the collection of Special Taxes over time.
In addition to the foregoing, the City shall have the right to withhold payment for acquisiti on of a City Improvement, if:
(a) the Developer or any of its affiliates is delinquent in the payment of any Special Taxes levied by the Community Facilities District on properties then owned by the Developer or any of its affiliates within the CFD, or
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(b) the Dev eloper is not then in substantial compliance with a condition or obligation imposed upon the Developer Property by the City, including but not limited to, payment of all applicable fees, dedication of all applicable rights -of-way or other property and cons truction requirements.
The City shall immediately provide written notice to the Developer of the decision to withhold any such payment and shall specify the reason for such decision. If the payment is withheld as a result of the delinquency in the payment of Special Taxes, the notice shall identify the delinquent parcels and the amount of such delinquency. If the payment is withheld as a result of substantial non-compliance with a condition or obligation, the notice shall specify such condition or obligat ion and what action will be necessary by the Developer to substantially comply with such condition or obligation. Upon receipt of evidence reasonably satisfactory to the City that the Developer has paid the delinquent Special Taxes or complied with the su bject condition or obligation, the City shall forthwith make all payments which have been withheld pursuant to the provisions of this Section.
11. Easements and/or Fee Title Ownership Deeds . Without limiting the Developer’s rights to reimbursement for such grants pursuant to Section 10 above, the Developer shall, at the time the City acquires the City Improvements as provided in Section 10 hereof, grant or cause to be granted to the City, by appropriate instruments prescribed by the City, all easements across private property and/or fee title ownership deeds which may be reasonably necessary for the proper operation and maintenance of such City Improvements, or any part thereof, but only to the extent located within the Developer Property.
12. Permits. The Developer shall be responsible for obtaining all necessary construction permits from the City and/or the County (as appropriate) covering construction and installation of the City Improvement.
13. Maintenance. Prior to the transfer of ownership of a City Improvement by the Developer to the City, as provided in Section 10 hereof, the Developer shall be responsible for the maintenance thereof and shall require its contractor(s) to repair all facilities damaged by any party other than the City, prior to acceptance by th e City and/or make corrections determined to be necessary by the City’s inspection personnel. The City shall not be permitted to place any City Improvement in service prior to acceptance of the same, unless the Developer otherwise consents in writing.